Key Takeaways
Withholding tax in Singapore applies only when a local company or person makes certain payments to someone based overseas (a non-resident).
The rate you apply depends on the type of payment, with 2025 rates ranging between 10% and 24%.
Even if the tax rate is reduced or waived under a treaty or incentive, you must still file the withholding tax with IRAS.
If you’re a Singapore company making payments to overseas parties, or a foreign business receiving income from Singapore, you’ve likely come across the term withholding tax (WHT).
But knowing when it applies, which rate to use, or how to claim treaty exemptions isn’t always straightforward.
This guide is designed to cut through the confusion. We will cover:
✅What withholding tax is and when it applies
✅Who counts as a non-resident under Singapore’s tax rules
✅The updated 2025 withholding tax rates by payment type
✅Step-by-step filing and payment process with IRAS.
Let’s begin.
What Is the Withholding Tax in Singapore?
Withholding tax (WHT) is a tax on certain payments made by a person or business in Singapore to a non-resident.
Under Singapore’s Income Tax Act, the Inland Revenue Authority of Singapore (IRAS) requires the payer to deduct a percentage of the gross payment before sending it overseas and to pay it directly to IRAS as taxes.
This ensures that Singapore collects tax on income earned within its borders, even if the recipient is based overseas.
When Does Withholding Tax Apply?
Withholding tax applies when all of the following conditions are met.
- Payer – A Singapore-based company or individual.
- Payee – A non-resident (individual or company).
- Payment type – Falls under a category taxable under Singapore’s WHT rules (e.g., interest, royalties, certain services, rent of movable property).
- Source of income – Income is considered Singapore-sourced. For services, this usually means the work is performed in Singapore.
Note: Dividends paid by Singapore companies are not subject to WHT.
Who Is Considered a Non-Resident for Withholding Tax?
For withholding tax purposes, a non-resident is a person or a business that is based outside Singapore for tax purposes. This is defined by Singapore’s tax rules and depends on where a person lives or where a business is managed, not just where they are registered.
Important: If you don’t fall into any non-resident category listed below, you’re treated as a Singapore tax resident, and normal income tax rules will apply.
Non-Resident Company
A company is considered non-resident if its control and management are exercised outside Singapore, such as if board meetings and key decisions are made overseas. The place of incorporation does not automatically determine residency.
Non-Resident Individual
An individual who is in Singapore for less than 183 days in a calendar year.
Non-Resident Professional
An independent professional who carries out work in Singapore under a contract for service for less than 183 days in a calendar year.
Examples include
Non-Resident Public Entertainer
A performer in Singapore for less than 183 days in a calendar year, including stage, radio, and TV artistes, musicians, and athletes.
Non-Resident Director
A company board member who is in Singapore for less than 183 days in a calendar year.
Tip: Take IRAS’s short quiz for non-resident individuals or companies to find out if withholding tax applies to you.
Withholding Tax Rates in 2025
The table below summarises the default Singapore rates before any tax treaty relief.
| Nature of Payment | WHT |
|---|---|
| Interest, commissions, fees, or other payments in connection with any loan or indebtedness | 15% |
| Royalties or other lump-sum payments for the use of movable properties (e.g., intellectual property) | 10% |
| Payments to authors, composers, or choreographers | 24% |
| Payments for the use of or the right to use scientific, technical, industrial, or commercial knowledge or information | 10% |
| Rent or other payments for the use of movable properties | 15% |
| Technical assistance and service fees performed in Singapore by a non-resident company | 17%* |
| Management fees performed in Singapore by a non-resident company | 17%* |
| Proceeds from sale of property by a non-resident property trader | 15% |
| Distribution of taxable income by an SGX-listed REIT to a non-resident non-individual | 10% |
| Aircraft charter fees to a non-DTA country or a non-operator | 2% |
| Payments to a non-resident professional (e.g., consultant, trainer, coach) | 15% |
| Payments to a non-resident director | 24% |
| Payments to a non-resident public entertainer (e.g., musician, athlete, artist) | 15% |
* These payments are subject to the prevailing corporate income tax rate (currently 17%).
How to Calculate Withholding Tax
What Is Exempt From Singapore Withholding Tax?
Not every payment made to a non-resident is subject to withholding tax.
Common exemptions include:
- Payments to Singapore tax residents – WHT only applies to non-residents.
- Dividends paid by a Singapore company – Singapore does not impose WHT on dividends.
- Foreign-sourced income received in Singapore – If exempt under the Foreign-Sourced Income Exemption (FSIE) scheme.
- Payments covered under a tax treaty – Reduced or zero WHT rates may apply if a Double Tax Agreement (DTA) is in place.
- Interest on certain approved loans – Subject to conditions set by the Monetary Authority of Singapore (MAS).
- Income specifically exempted under the Income Tax Act – Such as qualifying shipping or air transport income.
How to File and Pay Withholding Tax in Singapore
If you make a payment to a non-resident that is subject to withholding tax, you are responsible for filing and paying the tax to the Inland Revenue Authority of Singapore (IRAS).
Fact: Miss the payment deadline and you’ll face a 5% late payment penalty. If it’s still unpaid 30 days later, an additional 1% per month will be charged, up to 15%.
Step 1 – Set up Corppass Access
Before filing, you must be authorised in CorpPass to access the “S45 Withholding Tax (Filing)” service.
If you are filing for the first time, a Corppass Administrator or Sub-Admin from your company or client must create your user account, assign the WHT filing service, and set your role as either a Preparer (can draft) or Approver (can submit).
Only Approvers are allowed to submit tax filings to IRAS.
Step 2 – File the WHT Return
Log in to myTax Portal using SingPass under “Business Tax” or “Business Client”.
You can file in two ways:
- S45 Online Filing for a small number of records.
- S45 ODE (Offline Data Entry) for multiple records, using the Excel import template provided by IRAS.
Step 3 – Enter Payment Details and Submit
Provide the nature of payment, payee identity (if applicable), payment date, taxable amount in Singapore dollars, and any applicable reliefs such as Double Taxation Relief (DTR).
If the payment is in a foreign currency, convert it to SGD using your bank’s daily rate or the MAS daily exchange rate. Once you complete the filing, you will receive an acknowledgement page.
Step 4 – Make Payment
Payment can be made via multiple options, including GIRO, internet banking, telegraphic transfer, SingPost and AXS.
Ensure payment is received by IRAS no later than the 15th of the second month after the date of payment to the non-resident.
Step 5 – Keep Records
Keep contracts, payment records, and Certificates of Residence (if applicable) for at least 5 years. You can view and download S45 notices, confirmations, and penalty letters through myTax Portal.
Can I Reduce Withholding Tax?
Yes. In many cases, you can lower Singapore’s standard withholding tax (WHT) rates through tax incentives such as the Double Taxation Agreement (DTA) or the Approved Royalties Incentive (ARI) scheme.
1. Double Taxation Agreement (DTA) Relief
If the payment is made to a tax resident of a country that has a DTA with Singapore, a lower WHT rate may apply. To claim this, you must:
- Confirm the payee’s country has an active DTA with Singapore. IRAS provide DTA calculators for non-resident professionals and companies to quickly check whether they are eligible for tax relief.
- Obtain a valid Certificate of Residence (COR) from the payee for each year relief is claimed.
- Ensure the income is not linked to a permanent establishment in Singapore.
For the full details of the available DTA relief, please refer to the list of DTAs, limited DTAs, and EOI arrangements.
2. Approved Royalties Incentive (ARI)
For certain royalty payments, the Economic Development Board (EDB) may grant a reduced or nil WHT rate under the ARI scheme. You’ll need:
- A Letter of Acceptance (LOA) from EDB confirming the rate.
- A signed copy of the LOA, to be submitted to IRAS if requested.
Important: You must still file WHT with IRAS even if the payment qualifies for a reduced rate or full exemption under DTA or ARI.
Final Note
In conclusion, understanding the withholding tax system in Singapore is important for companies looking to engage non-resident companies and individuals. Payments made to non-residents are taxed at different rates, and always remember that Singapore has signed the Avoidance of Double Taxation Agreement with many countries to avoid double taxation.
FAQs
Who is liable pay withholding tax in Singapore?
Non-resident companies, non-resident professionals, and non-resident employees are subject to withholding tax.
