Guide to Singapore Withholding Tax
Withholding tax in Singapore is deducted from companies and individuals deemed as non-residents who source their income within Singapore through work or service provided. A percentage of an individual’s or company’s income is deducted to the payment made and remitted to Inland Revenue Authority of Singapore or IRAS. Resident companies and individuals are exempted from withholding tax.
Withholding Tax Overview
There are four simple conditions wherein a withholding tax in Singapore is applied:
- The income comes from a source within Singapore;
- The income is generated by a non-resident individual or company;
- The service or work is done in Singapore; and
- The withholding tax can be deducted only in certain types of work or services rendered.
Payments Subject to Withholding Tax
Double Tax Safety Net
A double tax agreement (DTA) has been signed by Singapore authorities with other countries to avoid individuals and companies to be taxed separately for the same payment. The foreigner can use the Withholding tax certificate to get equivalent deduction from his tax liability in home country.