Withholding Tax Rates

A person must withhold tax when certain types of payments (e.g. interest, royalty, services etc) are made to non-resident persons. The rate of withholding tax depends on the nature of payment.

Withholding Tax Rates for Services, Interest, Royalty, Rent of Moveable Properties, etc.

Nature of IncomeTax Rate

Interest, commission, fee or other payment in connection with any loan or indebtedness

15% 1

Royalty or other lump sum payments for the use of moveable properties

10% 1 2

Payment for the use of or the right to use scientific, technical, industrial or commercial knowledge or information

10% 1 2

Rent or other payments for the use of moveable properties

15% 1

Technical assistance and service fees

Prevailing Corporate Tax rate3

Management fees

Prevailing Corporate Tax rate3

Time, voyage and bareboat charter fees for the charter of ships

NIL
(Tax rates for payments due and payable before 17 Feb 2012)

Proceeds from sale of any real property by a non-resident property trader

15%

Distribution of taxable income made by REIT to unitholder who is a non-resident (other than an individual)

10% 4

Withholding Tax Rates for Aircraft Charter

Time Charter Fees and Voyage Charter Fees for the Charter of AircraftsTax Rate

(a) Paid to a resident of a tax treaty partner who is an aircraft operator claiming benefits under the "Shipping and Air Transport" Article of the tax treaty and where the Article provides for:

 
  • Full exemption of shipping and aircraft profits

NIL

  • 50% exemption of shipping and aircraft profits

1%

  • Reduced rate

Reduced rate or 2%, whichever is the lower amount

(b) Paid to a resident of a tax treaty partner who is not an aircraft operator (i.e. the "Shipping and Air Transport" Article of the treaty does not apply)

 2%

(c) Paid to a resident of a jurisdiction which has no tax treaty with Singapore

 2%

Bareboat Charter Fees for the Charter of Aircraft

Tax Rate

(a) Paid to a resident of a tax treaty partner who is an aircraft operator claiming benefits under the "Shipping and Air Transport" Article of the tax treaty and where the Article specifically covers bareboat charter fees and provides for:

 
  • Full exemption of shipping and aircraft profits

NIL

  • 50% exemption of shipping and aircraft profits

1%

  • Reduced rate

Reduced rate or 2% whichever is the lower amount

(b) Paid to a resident of a tax treaty partner who is not an aircraft operator (i.e. the "Shipping and Air Transport" Article of the treaty does not apply) or where the "Shipping and Air Transport" Article does not cover bareboat charter fees

2% (unless it is further reduced by other provision of the tax treaty such as the "Royalty" Article)

(c) Paid to a resident of a jurisdiction which has no tax treaty with Singapore

2%

1These withholding tax rates apply when the income is not derived by the non-resident person through operations carried out in Singapore. They are to be applied on the gross payment. The resulting tax payable is a final tax. The following tax rates apply on gross payments when operations are carried out in Singapore:

  • Non-resident person (other than individuals): Prevailing corporate tax rate
  • Non-resident individuals: 20% (from YA 2017, the rate will be increased to 22%)

2The reduced withholding tax rate of 10% applies to payments due and payable on or after 1 Jan 2005.

3Withholding tax is based on the prevailing corporate tax rate for the year when the services were provided, even if payment to the non-resident is made in a different year. For example, if the service was provided in Dec 2008 but payment was made in 2009, the prevailing corporate tax is that for 2008(Year of Assessment 2009), which is 18%.
For payments made to non-resident individuals, tax is to be withheld at 20% (from YA 2017, the rate will be increased to 22%) on the gross payment.

4 The reduced withholding tax rate of 10% applies to distributions made during the period from 18 Feb 2005 to 31 Mar 2020 (Budget 2005 and Budget 2015 refer). From 16 Feb 2007, withholding tax does not apply to any distribution made by the trustee of the REIT where tax has already been paid, on the income from which the distribution is made, by the trustee of the trust (Income Tax (Amendment) Act 2007 refers).


If tax has been deducted in error at the prevailing corporate tax rate from the distributions made to nominees whose beneficiaries are any of the persons listed below, the Comptroller will refund the tax over-deducted to the trustee of REIT directly on a quarterly basis. The beneficiaries^ may be any of the following:

 

  • qualifying individual;
  • qualifying non-resident non-individual;
  • charity registered under the Charities Act (Cap. 37) or established by any written law;
  • town council;
  • statutory board;
  • co-operative society registered under the Co-operative Societies Act (Cap. 62); or
  • trade union registered under the Trade Unions Act (Cap. 333).

^ Do not include a person acting in the capacity of a trustee.
The trustee,in turn will refund the amount to the nominees who will then refund it to the beneficiaries. For this purpose, the trustee is required to send its request for refund with all the original subsidiary income tax certificates on a consolidated basis. Please send your request to:


Revenue Accounting Branch
Inland Revenue Authority of Singapore
55 Newton Road
Revenue House
Singapore 307987

Where the recipient of the income is resident in a jurisdiction which has an Avoidance of Double Taxation Agreement (DTA) with Singapore, the rates specified in the DTA would apply. If you are applying the rates in the DTA, you would need a Certificate of Residence from the non-resident to prove that it is a tax resident of the treaty country. Please submit a Certificate of Residence from Non-Residents (Claim for relief from Singapore Income Tax under Avoidance of Double Taxation Agreement) that is duly certified by the tax authority of the country of residence to IRAS.

You may download the template, Format for Certificate of Residence (COR) from Non-Residents (289KB) for your use and reference.

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