What Is a Withholding Tax Exemption?

Withholding tax is the tax payable by employers when they pay non-residents, including employees, business partners, and overseas agents.

Withholding tax

Withholding tax means

When paying the corresponding amount to a non-resident, a certain percentage of the amount must be withheld as a withholding tax.

For example, a foreign investor who buys corporate bonds in a country can only receive 85% of the interest remuneration of its investment with the country withholding tax of 15%, and the remaining 15% is withheld by the issuing company of the bond as a The tax deduction is paid to the government. The withholding tax will reduce the return on investment of foreign investors, which will affect the international flow of long-term capital.

Singapore tax IRAS withholding tax

Where to go for help? Please refer to the following websites for detailed information on withholding taxes, or consult an accountant.

This article is a brief introduction to Singapore taxation and should not replace the advice of tax related professionals. For more details, consult your accountant or contact the Internal Revenue Service of Singapore (IRAS).