Written by Bertrand Théaud, Statrys Founder
20+ years in Asia as a corporate lawyer, investor, and fintech founder. I've sat on both sides of the table and seen the same avoidable mistakes hit founders again and again. The reviews and articles I write are for founders who'd rather skip the mistakes.
Last reviewed July 2026.
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 depends on the type of payment, ranging from 10% to 24%, and the rates haven't changed for 2026.
Even if a treaty or incentive reduces or waives the tax, you must still file the withholding tax with IRAS. Filing and reducing what you owe are two separate steps.
Non-resident professionals can sometimes cut their tax by electing to be taxed on net income (24%) instead of gross income (15%), if their deductible expenses are high enough to make that worthwhile.
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 cuts through the confusion. We cover what withholding tax is, who counts as a non-resident, the current rates by payment type, how to work out what you owe, and the step-by-step filing process with IRAS.
What Is 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, IRAS requires the payer to deduct a percentage of the gross payment before sending it overseas, and to pay that amount directly to IRAS.
This ensures Singapore collects tax on income earned within its borders, even when 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 (interest, royalties, certain services, rent of movable property, and others covered below).
- Source of income: the income is Singapore-sourced. For services, this usually means the work is performed in Singapore.
Did you know? Dividends paid by Singapore companies are not subject to withholding tax.
Who Is Considered a Non-Resident for Withholding Tax?
A non-resident, for withholding tax purposes, is a person or business based outside Singapore for tax purposes. This depends on where a person actually lives or where a business is actually managed, not just where it's registered.
If you don't fall into any of the non-resident categories below, you're treated as a Singapore tax resident, and normal income tax rules apply instead.
- Non-Resident Company: control and management are exercised outside Singapore, for example, if board meetings and key decisions happen overseas. Where the company is incorporated doesn't automatically determine residency.
- Non-Resident Individual: someone in Singapore for less than 183 days in a calendar year.
- Non-Resident Professional: an independent professional carrying out work in Singapore under a contract for service for less than 183 days in a calendar year. Examples include IT consultants, corporate trainers, executive coaches, freelance engineers, and independent auditors engaged for a short-term project rather than employed directly.
- 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 in Singapore for less than 183 days in a calendar year.
Tip: IRAS runs a short quiz for non-resident individuals and companies to check whether withholding tax applies to your situation.
Withholding Tax Rates in 2026
The table below summarises the default Singapore rates before any tax treaty relief. These rates haven't changed since 2023 and remain current for 2026.
| 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%** |
| Ship charter fees (time, voyage, or bareboat charter) | Not subject to WHT |
| Aircraft charter fees to a non-DTA country or a non-operator | 2% |
| 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% |
| 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% |
Footnotes
How to Calculate Withholding Tax
Withholding tax is calculated on the gross payment, not on any profit or margin, unless you've specifically elected a net-income basis where that option is available (see the non-resident professional note above).
Example: your Singapore company pays a non-resident consultant SGD 20,000 for a project delivered in Singapore. Consultancy fees paid to a non-resident professional are subject to 15% WHT.
| Item | Amount |
|---|---|
| Gross Payment to Non-Resident Professional | SGD 20,000 |
| Withholding Tax (15%) | SGD 3,000 |
| Amount You Actually Remit to the Consultant | SGD 17,000 |
| Amount You Pay to IRAS | SGD 3,000 |
You deduct the SGD 3,000 before paying the consultant, then pay that amount to IRAS by the filing deadline. The consultant doesn't separately owe Singapore tax on this income; your withholding satisfies the obligation, unless they elect the net-income basis described above, in which case the calculation and final amount owed can differ.
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: exempt if it qualifies 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. Singapore currently has DTAs with 98 jurisdictions, and the reduction can be substantial. Some treaties (e.g., Germany, Mauritius, UAE) provide for a 0% rate on interest in specific circumstances, such as payments to government bodies, central banks, or approved financial institutions.
- Ship charter fee payments: not subject to WHT regardless of the recipient's residency.
- 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's subject to withholding tax, you're responsible for filing and paying the tax to IRAS, even if the rate has been reduced to zero under a treaty or incentive.
Be careful! 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 is charged, up to a cap of 15% of the unpaid tax.
Step 1 – Set up Corppass access
Before filing, you must be authorised in Corppass to access the "S45 Withholding Tax (Filing)" service. If this is your first time filing, a Corppass Administrator or Sub-Admin 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 can submit filings to IRAS.
Step 2 – File the WHT return
Log in to the myTax Portal using Singpass under "Business Tax" or "Business Client". You can file two ways:
- S45 Online Filing for a small number of records.
- S45 ODE (Offline Data Entry) for multiple records, using the Excel import template IRAS provides.
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. You'll receive an acknowledgement page once filing is complete.
Step 4 – Make payment
Pay via GIRO, internet banking, telegraphic transfer, SingPost, or AXS. Payment must reach IRAS no later than the 15th of the second month after the date of payment to the non-resident. For example, if you pay a non-resident consultant on 7 April, your WHT payment is due by 15 June.
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 the myTax Portal.
Can I Reduce Withholding Tax?
Yes. Depending on the situation, you have three real options for lowering the standard WHT rate.
1. Double Taxation Agreement (DTA) relief
If the payment goes to a tax resident of a country that has a DTA with Singapore, a lower WHT rate may apply, sometimes down to 0%. To claim this, you must:
- Confirm the payee's country has an active DTA with Singapore. IRAS provides DTA calculators for non-resident professionals and companies to quickly check eligibility.
- Obtain a valid Certificate of Residence (COR) from the payee for each year relief is claimed.
- Ensure the income isn't linked to a permanent establishment in Singapore.
For the full list, see IRAS's DTAs, limited DTAs, and EOI arrangements page.
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, and a signed copy submitted to IRAS if requested.
3. Net-income election for non-resident professionals
As covered above, a non-resident professional can elect to be taxed at 24% on net income (gross fee less allowable expenses) instead of 15% flat on gross income. This only helps if deductible expenses are large relative to the fee. For a straightforward consulting engagement with few expenses, the flat 15% gross rate is usually still cheaper.
Important: You must still file WHT with IRAS even if the payment qualifies for a reduced rate or full exemption under a DTA or ARI. Filing isn't optional just because the tax due is zero.
Final Thoughts
Withholding tax catches out founders less because the rates are complicated and more because it's easy to forget the deadline sits with the payer, not the payee. If you're the one sending money to a non-resident consultant, director, or licensor, the filing and payment obligation is yours, whether or not you remembered to withhold anything at the time.
Singapore has DTAs with 98 jurisdictions, so before you assume the standard rate applies, it's worth checking whether the recipient's country qualifies for relief. A 5-minute check against the DTA list can be the difference between withholding 15% and withholding nothing.
FAQs
Who is liable to pay withholding tax in Singapore?
The Singapore-based payer is liable, not the non-resident recipient. If you're a Singapore company or individual making a payment to a non-resident for interest, royalties, certain services, or similar categories, you must deduct the tax before paying and remit it to IRAS yourself.
Are there any withholding tax relief schemes?
Yes. The main ones are Double Taxation Agreement (DTA) relief, which can reduce rates or bring them to 0% for payments to residents of treaty countries, and the Approved Royalties Incentive (ARI) for certain royalty payments. Non-resident professionals also have the option to elect net-income taxation at 24% instead of the flat 15% gross rate, which can lower their tax if deductible expenses are high. You still need to file with IRAS even when relief brings the rate to zero.
What is the withholding tax rate in Singapore?
It depends on the payment type. Interest, rent of movable property, and payments to non-resident professionals or public entertainers are taxed at 15%. Royalties and payments for technical or commercial knowledge are typically taxed at 10%. Technical assistance and management fees are taxed at the prevailing corporate tax rate of 17%. A DTA can reduce most of these rates.
When must withholding tax be paid?
Payment is due by the 15th of the second month after the date you paid the non-resident. For example, a payment made on 7 April must have its withholding tax paid to IRAS by 15 June. Missing this deadline triggers a 5% penalty immediately, plus 1% per month after 30 days, capped at 15%.
Do I still need to file withholding tax if the rate is reduced to 0% under a treaty?
Yes. A reduced or nil rate under a DTA or the Approved Royalties Incentive changes how much tax is due, not whether you need to file. IRAS still requires the S45 filing within the same deadline, even when the resulting tax payable is zero.
