Withholding Tax on Non-Resident Payments
Singapore companies making certain payments to non-residents must withhold tax at the applicable rate and remit it to IRAS by the 15th of the month following the payment month. The payer files Form IR37 and remits the withheld amount; the non-resident receives the net payment.
Who this applies to
- Singapore companies paying interest, royalties, technical service fees, or management fees to non-resident companies
- Singapore companies paying director's fees to non-resident directors
- Singapore companies paying rent on movable property to non-residents
- Singapore companies paying royalties or licensing fees to overseas IP owners
What to file
Form IR37 (Withholding Tax Return for Payments to Non-Residents) via IRAS myTax Portal. The form details the payment type, payment amount, withholding tax rate applied, and recipient's details. Supporting documentation is retained by the payer.
How to file
File Form IR37 online via IRAS myTax Portal. CorpPass access required. The withheld tax is paid simultaneously with the Form IR37 submission via GIRO or other accepted methods.
Payment due
Both the Form IR37 filing and tax payment are due by the 15th of the month following payment. Late payment attracts a 5% penalty on the unpaid amount.
Penalties for missing this deadline
Late filing and payment: 5% penalty on WHT amount. If WHT is not withheld and IRAS discovers the omission, the full WHT amount becomes payable by the Singapore payer (not the non-resident recipient), plus penalties and interest. IRAS takes a strict view on WHT non-compliance.
Filing checklist
- Identify all payments to non-residents that are subject to WHT during the month
- Determine the applicable WHT rate (check the relevant Double Taxation Agreement for reduced rates)
- Withhold the correct amount from the payment before remitting to the non-resident
- File Form IR37 and remit the WHT to IRAS by the 15th of the following month
- Provide the non-resident payee with a copy of the IR37 for their own tax records
Documents you'll need
- Invoice from the non-resident payee
- Contract or agreement evidencing the nature of the payment
- Recipient's tax residency certificate if claiming a reduced rate under a DTA
- Bank payment records confirming the net amount paid to the non-resident
- Form IR37 submitted to IRAS
Common mistakes to avoid
- Paying the non-resident the full gross amount and then trying to recover the WHT separately (the payer must withhold before remitting)
- Applying the standard statutory rate without checking whether a lower DTA rate applies
- Forgetting that technical service fees attract WHT even if the services were performed entirely outside Singapore
- Omitting WHT on management fees charged by a foreign parent company to its Singapore subsidiary
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