What is Withholding Tax (Singapore)?
Tax withheld by Singapore companies on certain payments to non-resident companies or individuals. Key rates: royalties 10%, interest 15%, technical service fees 17%. No withholding tax on dividends paid by Singapore companies.
Current Rate (Year of Assessment (preceding-year basis))
Royalties 10%, interest 15%, technical service fees 17%, dividends nil
Example
A Singapore company paying S$50,000 in technical service fees to a Malaysian company must withhold S$8,500 (17%) and remit it to IRAS by the 15th of the month following payment, paying the net S$41,500 to the vendor.
How Withholding Tax (Singapore) works in Singapore
**Singapore Withholding Tax (WHT) Overview**
Withholding tax (WHT) is a mechanism by which Singapore-sourced income paid to non-residents is taxed at source. The Singapore payer is responsible for withholding the correct amount and remitting it to IRAS.
**Payment Types and Rates**
The main categories of payments subject to WHT and their standard rates are: - Interest, commissions, and fees in connection with loans or indebtedness: 15% - Royalties and other lump sum payments for use of movable property: 10% - Management fees and technical assistance or service fees: 17% (or the prevailing CIT rate) - Director's remuneration (for non-resident directors): 22% (individual's applicable rate) - Rental of movable property: 15% - Rent from real property: 17% - Distributions from Real Estate Investment Trusts (REITs): various
**Dividends: No WHT**
Singapore dividends are exempt from WHT. There is no dividend withholding tax on dividends paid by Singapore-resident companies to shareholders anywhere in the world. This is a key feature of Singapore's one-tier tax system: corporate income is taxed once at the company level, and dividends are not subject to further tax at the shareholder level.
**Filing and Payment Obligations**
The payer must: (1) withhold the correct amount at the time of payment, (2) remit the withheld tax to IRAS by the 15th of the month following the month of payment, (3) file Form IR37 (withholding tax return) via the myTax Portal. Late remittance attracts a 5% penalty plus interest.
**Double Taxation Agreements (DTAs)**
Singapore has an extensive network of over 90 DTAs with other jurisdictions. Many DTAs reduce WHT rates below the statutory rates above. For example, the Singapore-UK DTA reduces the WHT on royalties to 8% in most cases. Payers should check the relevant DTA before applying the standard rate.
**Resident vs Non-Resident Determination**
WHT applies to non-residents only. A company is resident in Singapore if its management and control is exercised in Singapore. Individuals are resident if they are physically present in Singapore for 183 days or more in the preceding year. If the recipient is a Singapore-resident company, WHT is generally not applicable.
Related terms
Singapore taxes resident companies at a flat rate of 17% on chargeable income. New companies benefit from the Start-Up Tax Exemption (SUTE), and all qualifying companies can access Partial Tax Exemption.
Foreign income remitted to Singapore is taxable unless it qualifies for exemption under section 13(8). Exemption applies to dividends, branch profits, and service income if the source country headline tax rate is at least 15%.
Singapore residents pay progressive income tax from 0% to 24% (above S$1 million). Non-residents pay flat 24% or 15% on employment income, whichever is higher. Filing deadline: 18 April (e-filing) each year.
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