When to File and Pay Withholding Tax to IRAS

Payers are required to file and pay the withholding tax to IRAS by the due date.  

Payers must still e-file their withholding tax even if their payment to the non-residents are exempted under the Double Tax Agreement.

Due Date for Filing and Payment to IRAS

As a payer, you are required to e-file and pay the withholding tax to IRAS by the 15th of the second month from the date of payment to the non-resident.

If you are on GIRO for withholding tax payment, the GIRO deduction date is on the 25th of the month the tax is due. However, if the GIRO deduction date falls on a weekend or public holiday, the deduction will be on the next working day.

You may refer to your acknowledgement page for payment details after you have e-filed.

Penalty for Late Payment

Penalties will be imposed if the withholding tax is paid to IRAS after the payment due date or the GIRO deduction is not successful.

Determining the Date of Payment to the Non-Resident

The date of payment is defined as the earliest of the following dates:

  1. When the payment is due and payable based on the agreement or contract, or the date of the invoice in the absence of any agreement or contract (credit terms should not be taken into consideration).
  2. When payment is credited to the account of the Non-Resident or any other account(s) designated by the Non-Resident
  3. The date of actual payment
  4. Director's Fees 

    a. Director 's Fees Approved in Arrears

    For director's fees approved in arrears, the director has already rendered the requisite services for the accounting year concerned. However, the director's fees must be disclosed to and approved by members of the company before they can be paid to him. Hence, the earliest date on which the director is entitled to the director's fees, is the date the fees are voted and approved at the company's AGM.

    b. Director 's Fees Approved in Advance

    For director's fees approved in advance, the director may not have rendered the requisite services for the accounting year concerned when the fees are approved at the company's AGM. Hence, the earliest date on which the director can be entitled to the director's fees, is as and when he renders his services.

 

   Payment to IRAS via online modes, cheque, etc.
(Non-GIRO)

Payment to IRAS
via GIRO

Scenarios

Date of Payment to the Non-Resident 

                    

Filing and Payment Due Date

Filing Due Date

              

GIRO Deduction Date
Technical Assistance Fees

A non-resident company issued an invoice dated 26 Mar 2020 to a payer for technical assistance fees in respect of services rendered. The invoice stated that the amount must be paid in 30 days.

The payer received the invoice on 08 Mar 2020 and paid the non-resident on 19 Apr 2020.

26 Mar 2020
(based on invoice date)
15 May 202015 May 202025 May 2020

Royalty Payment

The agreement stated that royalties at 5% of sales shall accrue to the non-resident person at the end of each quarter.

In this instance, the royalty period from Apr to Jun 2020 was accrued on 30 Jun 2020 (end of quarter), and the royalty payment was only made to the non-resident on 15 Jul 2020.

30 Jun 2020
(based on date of accrual)
15 Aug 202015 Aug 202025 Aug 2020

Director Fees

The director fee of $50,000 for period 01 Jan 2019 to 31 Dec 2019, was voted and approved in the company's Annual General Meeting (AGM) on 2 Aug 2020.

However, the fee was only paid to the director on 29 Sep 2020.

2 Aug 2020
(based on AGM date)
15 Oct 202015 Oct 202025 Oct 2020

 

Multiple Payments for a Single Engagement (Non-Resident Professional or Public Entertainer)

As a concession to simplify filing, if you have made multiple payments to the same non-resident professional (NRP) or non-resident public entertainer (NRPE) in respect of the same engagement within a 60-days period, you can consolidate the various payments into one e-filing submission and declare the last payment date as the date of payment to the non-resident professional or public entertainer. 

  • Can I consolidate and submit form IR37 twice a year if my withholding tax submission is at 0% tax rate?

    Yes, you can consolidate and file form IR37 electronically twice a year, on 15 June and 15 December of each year if you are claiming for full tax exemption (i.e. tax rate is 0%) under the Double Taxation Agreement (DTA) and Approved Royalties Incentive (ARI).