Q&A
How are goods and services tax and withholding tax levied in Singapore?
How are goods and services tax and withholding tax levied in Singapore?
Goods and services tax is levied on import of goods and supply of goods and services in Singapore. Companies are required to complete registration for this tax and collect this tax only if its turnover exceeds SGD$ 1 million in any 12 consecutive months. It is currently standing at 7 percent.
Withholding tax applies, when the following payments are made to a non-resident person, natural or legal, who derives income from Singaporean source, be that services rendered or work done:
- Interests
- Commission
- Fee in connection with any loan or indebtedness
- Royalty or other payments for the use or the right to use any movable property
- Management fees
- Service rendered
- Rent
Withholding tax rate ranges from 10 percent to 20 percent, with lower rate under tax treaties entered by Singapore.
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