Withholding tax in Singapore

Singapore has implemented a withholding tax law to Singapore source income to ensure the collection of tax due from non-residents companies and individuals.

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.

Nature of Income

  • Interest, commission, fee or other payment in connection with any loan or indebtedness : 15% 
  • Royalty or other lump sum payments for the use of moveable properties : 10%
  • Payment for the use of or the right to use scientific, technical, industrial or commercial knowledge or information : 10%
  • Rent or other payments for the use of moveable properties : 15%
  • Technical assistance and service fees : 17% (prevailing corporate income tax rate)
  • Management fees : 17% (prevailing corporate income tax rate)
  • 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%

However, please be informed that most withholding tax rates are lowered or cancelled by the Double Tax Agreements signed between Singapore and other jurisdictions.

Any further inquiries, please contact us.