Singapore withholding tax essay
Applicable to payments made only to non-residents individuals, companies, professionals, overseas agents etc.
Singapore withholding tax exemption
Withholding tax also applies to any payments involving the use of commercial, scientific, technical or industrial knowledge for business activities, or the hiring of non-resident experts to render these skills on your behalf. Note Withholding tax is not applicable on the income of a Singapore resident. However, according to common law principles, the control and management of a company is the place where the Board of Directors, which is the decision-making authority, decides on the important strategies and policies of the company. Non-Resident Professional A non-resident professional NRP is a foreign professional who is present in Singapore for a period of less than days in a calendar year. Rent The rent paid to a non-resident company that leases movable property in Singapore is subject to withholding tax. Need support with your taxes? Services rendered prevailing corporate tax rate Singapore withholding tax payment made to non-resident companies is subject to Singapore withholding tax when you hire them to install equipment, provide technical support, provide training and consultancy services, and other similar services within Singapore. How is a non-resident company defined for Singapore tax purposes? If services are provided remotely, such as via the Internet, then you do not have to withhold payment for tax purposes as it is considered outside Singapore. Where withholding tax is applicable, the tax rate is the prevailing corporate tax rate. We can help you to manage your Singapore withholding tax due dates to ensure you are not charged with penalties. Singapore withholding tax known as tax deduction at source in other countries refers to the tax withheld and paid to the Inland Revenue Authority of Singapore IRAS , when a non-resident company or individual derives an income from a Singaporean source, for services provided or work done in Singapore.
These fees are subject to certain conditions, such as double taxation agreements and if your company is permanently established in Singapore or otherwise. Note Withholding tax is not applicable on the income of a Singapore resident.
Scope To determine the payment of withholding tax the following should be considered: The tax is applicable only on income the source of which is located in Singapore.
Interests, commissions, and any other debt- or loan-related fees Singapore withholding tax applies to interest charged on overdue trade accounts, interest on credit terms paid to a non-resident supplier, and commission or loan fees that are paid to a non-resident.
The tax will be applicable only if the non-resident works or carries out any services in Singapore.
Payment made to any non-resident public entertainer which includes artists, musicians etc. Learn more about our tax services. Withholding tax rate for such payment is the prevailing corporate tax rate.
Non-Resident Company The control and management test of a company determines its residency.
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