When to File and Pay Withholding Tax

 

The e-filing of withholding tax and payment are due on 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 is on the 25th of the same month after the payment due date.  However, if the GIRO deduction date falls on a 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.  

If the date of payment to the non-resident is 26 Jun 2017, e-filing of withholding tax must be completed and withholding tax must be paid to IRAS by 15 Aug 2017.

Late penalty fees will be imposed when payment is not received by the due date.

Date of Payment

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).

Example 1

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

>>For the purpose of withholding tax, the date of payment of the royalties is deemed the last day of each quarter.

Example 2

A non-resident person issued an invoice dated 1 Mar to a payer for management fees in respect of services rendered. The invoice stated that the amount must be paid in 30 days. The payer received the invoice on 5 Mar and paid on 15 Mar .

>> For the purpose of withholding tax, the date of payment of the management fees is deemed the date of the invoice (i.e. 1 Mar). This is because the payer's liability to pay arises on the date of invoice and any credit terms extended to the payer are merely an arrangement made between the payer and the payee to defer actual payment.

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 : The date of payment for director's fees is the earliest of the payment date or the date the payment was voted and approved (Example: at the Company's Annual General Meeting).

 

To avoid late payment penalties, please e-file the withholding tax and ensure the payment is received by IRAS before the due date.

 

  • 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).

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