Singapore Tax Rates

Withholding Tax

Withholding tax (for payment to non-residents or non-resident companies)

Withholding tax rates

Nature of Income Tax rate
Interest, commission, fee or other payment in connection with any loan or indebtedness 15% 1
Royalty or other lump sum payments for the use of movable properties 10% 1 2
Payment for the use of or the right to use scientific, technical, industrial or commercial knowledge or information 10% 1 2
Rent or other payments for the use of movable properties 15% 1
Technical assistance and service fees Prevailing Corporate Tax rate 3 5
Management fees Prevailing Corporate Tax rate 3 5
Time charter fees and voyage charter fees
Paid to resident of a country which has a tax treaty with Singapore which provides for:
  • Full exemption of shipping and aircraft profits
NIL
  • 50% exemption of shipping and aircraft profits
1%
Paid to a resident of a country which has no tax treaty with Singapore 2%
Paid to a resident of a tax haven country 3%
Bareboat charter fees
Paid to resident of a country which has a tax treaty with Singapore 2%
Where treaty specifically covers bareboat charter fees under the `Shipping & Air Transport` Article and it provides for:
  • Full exemption of shipping and aircraft profits
NIL
  • 50% exemption of shipping and aircraft profits
1%
Paid to a resident of a country which has no tax treaty with Singapore 2%
Paid to a resident of a tax haven country 3%
Proceeds from sale of any real property by a non-resident property trader 15%
Distribution (except distribution out of Singapore dividends from which tax is deducted or deductible under section 44) made by REIT to unitholder who is a non-resident (other than an individual) 10% 4

1 These withholding tax rates apply when the income is not derived by the non-resident person through its operations carried out in Singapore. They are to be applied on the gross payment and the resultant tax payable is a final tax. For operations carried out in Singapore, the tax rates applicable on the gross payment are as follows:

  • Non-resident person (other than individuals) : Prevailing corporate tax rate
  • Non-resident individuals : 20% (from 1 Jan 2016, the rate will be increased to 22%)

2 The reduced withholding tax rate of 10% applies to payments due and payable on or after 01 Jan 2005.

3 If the year in which the services were rendered is different from the year of payment, the withholding tax is to be based on the prevailing corporate tax rate for the year where the services were rendered. For example, if the service was rendered in Dec 2008 and the payment was made in year 2009, the prevailing corporate tax is that for year 2008 (Year of Assessment 2009), which is 18%.
For payments made to non-resident individuals, tax is to be withheld at 20% (from 1 Jan 2016, the rate will be increased to 22%) on the gross payment.

4 The reduced withholding tax rate of 10% applies to distributions made during the period from 18 Feb 2005 to 17 Feb 2010 (Budget 2005 refers). With effect from 16 February 2007, withholding tax shall not apply to any distribution made by the trustee of the REIT where tax has been paid by the trustee of the trust on the income from which the distribution is made (Income Tax (Amendment) Act 2007 refers).

5 Tax Refund under S46 of ITA for payments withheld at prevailing corporate tax rate.

Where an Avoidance of Double Taxation Agreement (DTA) is applicable, the rates specified in the DTA of the respective countries would apply. If you are applying the rates in the DTA, you would need a Certificate of Residence from the non-resident to prove that it is a tax resident of the treaty country. Please submit a Certificate of Residence from Non-Residents (Claim for relief from Singapore Income Tax under Avoidance of Double Taxation Agreement) that is duly certified by the tax authority of the country of residence, to IRAS.