Claiming Relief/Exemption under the Avoidance of Double Taxation Agreement

 

Claiming Of Tax Relief/Exemption under the Avoidance of Double Taxation Agreement (DTA)

 

Non-Resident Companies Non-Resident Professionals (Consultants, Trainers, Coaches, etc.)
Step 1 : Check on the eligibility for Double Taxation Relief/Exemption of the non-resident  
  1. Use the S45 Double Taxation Relief Taxation Relief Tax Rate Calculator for Companies to check if the non-resident company is eligible for Double Taxation Relief/ Exemption (DTR) and find the applicable tax rate under the DTA. You can refer to the Avoidance of Double Taxation Agreement for the full details of the DTR available for the relevant country. 
    1. Where tax treaty does not apply
      Withhold tax at the prevailing tax rate, e-file and make payment for the withholding tax to IRAS by the due date to avoid late payment penalties.
    2. Where tax treaty applies
      Check the "Double Taxation Relief" box during e-filing.
  1. Use the Tax Treaty Calculator for Non-Resident Professionals (Form IR586) to check if the non-resident professional is eligible for tax treaty exemption. You can refer to the Avoidance of Double Taxation Agreement for the full details of the DTR available for the relevant country. 
    1. Where tax treaty does not apply
      Withhold tax at the prevailing tax rate, e-file and make payment for the withholding tax to IRAS by the due date to avoid late payment penalties.
    2. Where tax treaty applies
      Check the "Claim for relief under Avoidance of Double Taxation Agreement (DTA)" during e-filing.
Step 2 : Obtain supporting document from the non-resident   

Certificate of Residence (COR)

  1. Obtain the original COR from the non-resident for each of the year where DTR was claimed.
  2. The COR must:
    1. Be certified by the foreign tax authority of the non-resident; and
    2. Be in English; and
    3. Clearly state
      1. the non-resident company is a resident of the foreign country for DTA purposes and
      2. the year(s) in which the COR is applicable. One COR may be accepted for multiple years if the years are clearly stated in the COR.
  3. For COR issued in non-English language, please obtain an English translated copy together with the COR.

Signed Copy of Form IR586

Obtain the Form IR586 signed by the non-resident professional.

 

 

 

 

.

 Step 3 : Submit the document to IRAS by the due date  
  1. Submit the COR to IRAS by deadline
    1. By 31 Mar of the following year if the claim is for the current year.

      Example 
      You filed a withholding tax submission in the year 2018, with period of payment between 1 Jan 2018 to 31 Dec 2018.

      For the purpose of claiming DTR, you must submit the COR for 2018 to IRAS by 31 Mar 2019.
    2. Within 3 months from the date that the Withholding Tax record is e-filed if the claim is for preceding years.

      Example
      You filed a withholding tax submission on 30 Jun 2018, with period of payment between 1 Jan 2017 to 31 Dec 2018.

      For the purpose of claiming DTR, you must submit CORs for 2017 and 2018 to IRAS by 30 Sep 2018 and 31 Mar 2019 respectively.
    3. The Double Taxation Relief/Exemption may be withdrawn and late payment penalties imposed if the COR is submitted by the due date.
  2. Upload the scanned COR to IRAS:
    1. Scan and save the COR as a pdf file with file size not more than 3 MB
    2. Complete the cover letter online Submit COR and upload the scanned COR.
  3. You are not required to submit the original COR unless requested by IRAS. All documents and records are to be retained for 5 years.

You are not required to submit the signed copy Form IR586 unless requested by IRAS. All documents and records are to be retained for 5 years. 

 

 

 

 

 

 

 

 

 

 

 

 Request for extension of time to submit COR
  1. Payer may request for extension of up to 2 months, to submit the COR, subject to IRAS' approval.
  2. Request for Extension to Submit COR online.  

RATE THIS PAGE

  • Strongly Disagree
  • Strongly Agree

Information is easy to understand.

Information is useful.

Information is easy to find.

 
Please email us if you would like us to respond to your enquiries.