What are the Different Types of Income that are Subjected to Withholding Tax?
There are various types of incomes that will be subjected to withholding tax in Singapore. These include:
1. Interests, commission, and any other debt- or loan-related fees
Interest on past-due trade accounts, interest on credit terms provided to a non-resident supplier, and commission or loan fees paid to a non-resident are all subject to Singapore withholding tax at 15%.
2. Royalty, rights of use, and intellectual property
Royalties are subject to a 10% withholding tax or the applicable corporate rates in Singapore. Any payments involving the use of commercial, scientific, technical, or industrial expertise for business purposes, or the hire of non-resident professionals to perform these services on your behalf, are subject to withholding tax at 10%.
3. Management fees
Payments owing to foreign organisations who provide management services or assist you in managing your business may be subject to Singapore withholding tax. These fees are subject to specific criteria, such as double taxation treaties.
4. Services rendered
When you hire non-resident companies to install equipment, provide technical assistance, provide training and consultation services, and other comparable activities within Singapore, you will be subjected to Singapore withholding tax at 17%.