When making cross-border payments, withholding tax Singapore rules are essential for any business working with overseas individuals or companies. If you pay non-resident service providers, directors, entertainers, or IP owners, understanding withholding tax (WHT) helps you stay compliant and avoid penalties.
This guide breaks down:
- What WHT is
- When it applies
- The latest IRAS withholding tax rates
What is Withholding Tax in Singapore?
Withholding tax (WHT) is a tax that businesses must deduct before paying certain types of income to non-residents.
The payer, not the recipient, must withhold a percentage of the payment and pay it to the Inland Revenue Authority of Singapore (IRAS).
Common payment types subject to WHT include:
- Interest
- Royalties
- Technical service fees
- Management fees
- Rent of movable property
- Payments to non-resident directors or entertainers
Skip the confusion.
Who must withhold and pay Singapore withholding tax?
Any person or business (the payer) must withhold tax when making specified payments to a non-resident payee. The percentage withheld depends on the nature of the payment.
Who is considered a non-resident for withholding tax Singapore?
WHT applies only when the payee is a non-resident. IRAS considers the following as non-residents:
1. Non-resident company
A company is non-resident if its control and management are not exercised in Singapore. Place of incorporation does not determine tax residency.
2. Non-resident individual
An individual present in Singapore for less than 183 days in a calendar year.
3. Non-resident professional
A self-employed individual exercising a profession in Singapore for under 183 days in a year.
4. Non-resident public entertainer
Performers in Singapore for less than 183 days, including:
- Musicians
- Athletes
- Television, stage, and radio artistes
5. Non-resident director
A board director physically in Singapore for less than 183 days annually.
When must you file and pay withholding tax Singapore?
Businesses must file and pay WHT to IRAS by the 15th of the second month after the payment date.
Example: Payment made on 5 January → WHT due by 15 March.
Late filing may result in penalties.
Withholding tax Singapore rates (IRAS WHT rates)
Below is a simplified summary of key withholding tax (WHT) rates based on the latest IRAS guidance.
1. Interest, royalties, service fees & rent
|
Payment type |
WHT rate |
|
Interest, commissions, and loan-related fees |
15% |
|
Royalties for use of movable properties (e.g., IP) |
10% |
|
Payments to authors, composers, and choreographers |
24% (updated rules apply from YA 2027–2029) |
|
Payments for use of technical, scientific, and industrial info |
10% |
|
Rent for the use of movable properties |
15% |
|
Technical services, assistance & management fees |
Prevailing Corporate Income Tax (CIT) rate |
2. Charter fees for ships
Time, voyage, bareboat charters → 0% (Nil)
3. Real property
Sale of real property by non-resident trader → 15%
4. S-REIT distributions
Distribution to non-resident non-individuals → 10%
(Extended until 31 Dec 2030 under Budget 2025)
5. Aircraft charter payments
Rates vary depending on tax treaties (DTAs), ranging from Nil, 1%, 2%, or DTA-reduced rates.
6. Payments to non-resident individuals
|
Type of non-resident |
WHT rate |
|
Non-resident director |
24% |
|
Non-resident professional |
15% on gross or individual rate on net |
|
Non-resident public entertainer |
15% |
|
International market agents |
3% |
Withholding tax Singapore calculations: Important points
- If income is earned outside Singapore, WHT is applied on gross income and is considered final.
- If services are performed in Singapore:
- Non-resident companies → CIT rate
- Non-resident individuals → 24%
Changes to royalty tax concession
As announced in Budget 2024:
- Up to YA 2026 → tax on 10% of gross royalties or net amount, whichever is lower
- YA 2027 → 40% of gross royalties taxable
- YA 2028 → 70%
- YA 2029 onwards → 100% of gross royalties (net amount taxable)
What happens if too much tax is withheld in Singapore?
For certain payments (e.g., S-REIT distributions), IRAS may refund excess tax through the trustee. The trustee then refunds the nominees and informs beneficiaries not to claim tax credits again.
How Sleek helps you stay compliant with withholding tax Singapore
Understanding and applying Singapore withholding tax rules is a key part of staying compliant. With different tax rates, residency classifications, and filing deadlines, businesses must ensure accuracy to avoid penalties and maintain smooth international transactions.
Sleek helps here with clear processes for overall tax compliance. Our team of experts assists businesses by:
- Keeping business records organised
- Understanding tax obligations for different types of payments
- Meeting IRAS filing deadlines
- Ensuring accurate corporate tax reporting and filing
With Sleek, your business always knows the right next step in tax compliance.
Note: This article provides general information only and does not constitute tax advice. Singapore tax rules and IRAS rates change from time to time. Information is accurate as of November 2025. Please refer to IRAS or a qualified tax advisor before taking action.
Ready to take the stress out of withholding tax?
FAQs on withholding tax Singapore
Who is required to pay withholding tax in Singapore?
Any person or business that makes specified payments to a non-resident person is required to withhold tax and pay it to IRAS. The withholding tax rate depends on the nature of the payment, for example, interest, royalties, director fees, or technical service fees.
What types of payments are subject to withholding tax Singapore?
Common payments subject to withholding tax Singapore include:
- Interest and loan related fees
- Royalties for the use of intellectual property or movable property
- Technical and management service fees
- Rent for the use of movable properties
- Payments to non-resident directors, professionals, and public entertainers
When is withholding tax due to IRAS?
Withholding tax must be filed and paid to IRAS by the 15th of the second month from the date of payment to the non-resident. For example, if payment is made on 5 January, the withholding tax is due by 15 March.
What are the main withholding tax rates in Singapore?
Key withholding tax Singapore rates include:
- 15% on interest, commissions, and certain loan related fees
- 10% on most royalties and payments for the use of technical or scientific knowledge
- 15% on rent for movable properties
- 24% on payments to non-resident directors
- 15% on payments to non-resident public entertainers
- 10% on certain S-REIT distributions to non-resident non-individuals (up to 31 December 2030)
Does withholding tax Singapore apply to services performed in Singapore and overseas?
If income is derived through operations carried on outside Singapore, the stated withholding tax rates generally apply on the gross payment and are treated as a final tax. Where operations are carried out in Singapore, non-resident companies are taxed at the prevailing corporate income tax rate and non-resident individuals are taxed at 24 percent.
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