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Withholding Tax For Singapore Companies

Under Singapore Tax law, a company or an individual (also known as the "payer") must withhold a percentage of the payment of specific nature to a non-resident company or a non-resident individual. 

Withholding Tax Services Singapore | Withholding Tax Guide For CompaniesA non-resident company is a company where the management and the control are not exercised in Singapore, and the place of incorporation of the company is not indicative of the company's tax residence.

A non-resident individual includes non-resident professionals (consultants, trainers, coaches), non-resident public entertainers (artistes, musicians, sportsmen) and non-resident company directors.

Payment to a Non-Resident Company that is subject to Withholding Tax

The following are the type of payments:

  • Interest, commission and fee in connection with a loan;
  • Rent of any moveable property;
  • Royalty fees for right of use of any moveable property;
  • Purchase of real estate;
  • Structured products;
  • Management fees; and
  • Distribution of real estate investment trust

The withholding tax rate depends on the nature of payments.

1. When should the company file withholding tax form to IRAS?

If the date of payment to a non-resident company or a non-resident individual is on or after 1 July 2012, the payer is required to file the relevant form to Inland Revenue Authority of Singapore ("IRAS"). 

  • Form IR37 – for interest, royalties and directors' remunerations
  • Form IR37A – for disposal of properties or shares
  • Form IR37B – for SRS withdrawal for non-Singaporean account holders
  • Form IR37C – for professional and vocation payment
  • Form IR37D – for payment to public entertainer

If the company makes multiple payments to the same non-resident company or non-resident individual for the same engagement for a period of sixty (60) days, the company should consolidate these payments into a single filing and make payment to IRAS.

2. When should the company pay withholding tax to IRAS?

The company must pay the withholding tax amount withheld to IRAS before 15th of the 2nd month from the last date of payment, together with the relevant form. 

With effect from 1 July 2016, electronic filing of withholding tax form is available via myTaxPortal.

3. What is the penalty for late payment or non-payment of withholding tax to IRAS?

The late penalty fee of 5% is imposed for payment not received by the due date, and an additional 1% penalty is imposed on the unpaid tax.

Should you have further queries or need some assistance in withholding tax matters, please send us a business enquiry to our Tax Service team.