According to Singapore’s Income Tax Act, a person must withhold tax when payment of a specified nature is made to non-resident companies. This is called the Withholding Tax, whose rate depends on the nature of payment, and varies from 10% to 17%. Our reputation as one of the leading Singapore tax agents and corporate services provider is unmatched, and we can help you deal with the integrities of Withholding Tax in Singapore.
As noted above, the rate of withholding tax in Singapore depends on the nature of payment, which can be any of the following:
- interest, commission, fee in connection with any loan or indebtedness;
- royalty or other payments for the use of or the right to use any movable property;
- payments for the use of or the right to use scientific, technical, industrial or commercial knowledge or information or for the rendering of assistance or service in connection with the application or use of such knowledge or information;
- payments of management fees;
- rent or other payments for the use of any movable property;
- payments for the purchase of real property from a non-resident property trader;
- structured products (other than payments which qualify for tax exemption under section 13(1)(zj) of the Income Tax Act);
- or distribution of real estate investment trust (REIT).
As there are lots of considerations, with variable rates for each scenario, we can help you with all the statutory and filing requirements for Withholding Tax in Singapore. We can, among other things, firstly determine whether payments made to non-residents or others are subject to withholding tax; if yes, then determine the amount to be paid; and then file the relevant withholding tax returns.
Benefits of engaging our Services while filing Withholding Tax:
- Domain expertise – All the above is exhaustive, with different tax rates applicable to different nature of payments. Rikvin can help you deal with the integrities of Withholding Tax in Singapore, which includes computing and filing, among other services.
- Avoid penalties – This is important as IRAS imposes a 5% penalty and subsequently, an additional 1% penalty can be imposed on the unpaid tax. With a team of experienced and qualified Chartered Accountants (CA), we will help to avoid penalties imposed by IRAS by fulfilling all its compliance requirements. We can help you adhere to proper IRAS’ taxonomy.
Minimise your Withholding Tax
Our tax experts can also advise you on how to take advantage of various schemes in Singapore to minimise your withholding tax liability.