Withholding Tax Calculations for Non-Resident Public Entertainers

Withholding tax calculations for fees, airfare and accommodation for non-resident entertainers.

Example 1

A non-resident public entertainer was engaged by a payer to perform in Singapore for 20 days.

Besides artiste fees of $5,000, he was also provided with hotel accommodation at $200 a day. Cost of airfare of $1,500 was borne by the non-resident public entertainer.

Assuming the income is due and payable to the non-resident public entertainer on 23 Feb 2014, his tax liability of $350 is computed as follows:

Artiste fees

$5,000

Hotel accommodation provided (< 60 days)

NIL (Not Taxable - Concession)

Less airfare paid by the public entertainer

$1,500 (Deductible - Concession)

Taxable Gross Income

$3,500

Withholding Tax @ 10%*

$350

*The withholding tax rate is 10% if the income for the services performed in Singapore is due and payable during the period from 22 Feb 2010 to 31 Mar 2020 (both dates inclusive).

Example 2: Entertainer's Tax Borne by Payer

Where the non-resident public entertainer's tax is borne by the payer (e.g. sponsor/agent), the amount of tax allowance is a benefit in the hands of the non-resident public entertainer and is taxable.

If the income is due and payable on 23 Feb 2014, the withholding tax of 10% would apply:

Artiste fees

$3,500

Add: Tax allowance $3,500 x 10/90 

 $388.89

Taxable Gross Income

$3,888.89

Withholding Tax @ 10%

$388.89

Example 3

A foreign sports personality was invited by a Singapore company to grace the event and participate in a public marathon on 11 Apr 2014.

He won the prize money of $50,000. For his appearance, he was paid a fee of $10,000. His airfare and cost of two-day stay at the hotel was borne by the company.

The company (payer) is required to withhold tax as follows:


Prize money

$50,000

Appearance fees

$10,000

Hotel accommodation provided (< 60 days)

NIL (Not taxable - Concession)

Airfare provided

NIL (Not taxable - Concession)

Taxable Gross Income

$60,000

  Withholding Tax @ 10%* $6,000
 

*The withholding tax rate is 10% if the income for the services performed in Singapore is due and payable during the period from 22 Feb 2010 to 31 Mar 2020 (both dates inclusive).

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