Examples of Withholding Tax calculations for fees, airfare and accommodation for non-resident public entertainers.

Example 1: Tax Paid by Non-Resident Public Entertainer

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.

(a) Income due and payable to the non-resident public entertainer on or before 31 Oct 2022

Assuming the income is due and payable to the non-resident public entertainer on 15 Apr 2022, his tax liability of $525 is computed as follows:

Artiste fees

$5,000

Hotel accommodation provided (60 days or less in a calendar year)

NIL (Not Taxable - Concession)

Less airfare paid by the non-resident public entertainer

$1,500 (Deductible - Concession)

Taxable Gross Income

$3,500

Withholding Tax @ 15%*

$525

*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 2022 (both dates inclusive). From 1 Apr 2022, a withholding tax rate of 15% will apply.

(b) Income due and payable to the non-resident public entertainer on or after 1 Nov 2022

Assuming the income is due and payable to the non-resident public entertainer on 24 Nov 2022, his tax liability of $1,125 is computed as follows:

Artiste fees

$5,000

Hotel accommodation provided ($200 a day x 20 days)

$4,000 (Taxable)

Less airfare paid by the non-resident public entertainer

$1,500 (Deductible)

Taxable Gross Income

$7,500

Withholding Tax @ 15%*

$1,125

* From 1 Apr 2022, a withholding tax rate of 15% will apply.

Example 2: Tax Borne by Payer

If the payer bears the tax for the non-resident public entertainer under contractual terms (i.e. payment to payee is treated as net of tax), the withholding tax would be computed on a re-grossed basis.

If the income is due and payable on 15 Apr 2022, the withholding tax of 15% would apply:

Artiste fees, etc

$7,500

Add: Tax allowance $7,500 x 15/85

$1,323.53

Taxable Gross Income

$8,823.53

Withholding Tax @ 15%

$1,323.53

Example 3: Other Income received by Non-Resident Public Entertainer

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

He won the marathon and received the prize money of $50,000. For his appearance, he was paid a fee of $10,000. His airfare ($4,000) and cost of two-day stay at the hotel ($1,500) was borne by the company.

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

(a) Income due and payable to the non-resident public entertainer on or before 31 Oct 2022

Assuming the income is due and payable to the non-resident sports personality on 15 Apr 2022, his tax liability of $9,000 is computed as follows:

Prize money

$50,000

Appearance fees

$10,000

Hotel accommodation provided (60 days or less in a calendar year)#

NIL (Not taxable - Concession)

Airfare provided

NIL (Not taxable - Concession)

Taxable Gross Income

$60,000

Withholding Tax @ 15%*$9,000

# As his period of engagement was 60 days or less in 2022, the accommodation provided is not taxable.

*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 2022 (both dates inclusive). From 1 Apr 2022, a withholding tax rate of 15% will apply.
(b) Income due and payable to the non-resident public entertainer on or after 1 Nov 2022

Assuming the income is due and payable to the non-resident sports personality on 23 Nov 2022, his tax liability of $9,825 is computed as follows:

Prize money

$50,000

Appearance fees

$10,000

Hotel accommodation provided#

$1,500 (Taxable)

Airfare provided

$4,000 (Taxable)

Taxable Gross Income

$65,500

Withholding Tax @ 15%*$9,825

# For cost of airfare borne by the payer, and cost of accommodation provided/reimbursed by the payer, such income that is due and payable to the non-resident public entertainer from 1 Nov 2022 onwards will be taxable, regardless of the period of engagement in a calendar year.

* From 1 Apr 2022, a withholding tax rate of 15% will apply.

FAQs

#1 Calculating Withholding Tax

How do I calculate the Singapore tax payable?

The payer is required to withhold tax at 15% of gross income [or 10% if the income is due and payable to you during the period from 22 Feb 2010 to 31 Mar 2022 (both dates inclusive)] for services performed in Singapore. Please refer to Example 1.