Withholding Tax (WHT) Filing - IRAS
- a22162
- May 11
- 5 min read
Singapore Withholding Tax Filing Guide
Here's a breakdown of the key aspects on Withholding Tax (WHT) filing with the Inland Revenue Authority of Singapore (IRAS):
What is Withholding Tax (WHT)?
Withholding tax is a requirement for individuals or companies (payers) making certain types of payments to non-resident individuals or companies (payees). The payer must deduct a percentage of the payment and remit this withheld amount to IRAS. This ensures that non-residents pay tax on income sourced from Singapore, similar to how residents pay income or corporate tax.
Types of Payments Subject to WHT and Rates:
The WHT rates vary depending on the nature of the income. Here are some common examples:
Interest, commissions, fees related to loans: 15% (final tax if operations are outside Singapore; otherwise, prevailing Corporate Income Tax rate for non-individuals, 24% for individuals).
Royalties for movable properties: 10% (final tax if operations are outside Singapore; otherwise, prevailing Corporate Income Tax rate for non-individuals, 24% for individuals).
Payments for use of scientific, technical, industrial, or commercial knowledge: 10% (final tax if operations are outside Singapore; otherwise, prevailing Corporate Income Tax rate for non-individuals, 24% for individuals).
Rent for movable properties: 15% (final tax if operations are outside Singapore; otherwise, prevailing Corporate Income Tax rate for non-individuals, 24% for individuals).
Technical assistance and service fees, management fees: Prevailing Corporate Income Tax rate (not a final tax for companies, allowing expense claims). For non-resident individuals, the rate is 24% (22% for income due/payable from 01 Jan 2016 to 31 Dec 2022).
Proceeds from the sale of real property by a non-resident property trader: 15%.
Distribution of taxable income by a Real Estate Investment Trust (REIT) to a non-resident non-individual: 10% (for distributions from 18 Feb 2005 to 31 Dec 2030).
Payment to non-resident director: 24% (22% from 01 Jan 2016 to 31 Dec 2022).
Payment to non-resident professional: 15% on gross income or prevailing non-resident individual rate (currently 24%) on net income.
Payment to non-resident public entertainer: 15% on gross income (10% for income due/payable from 22 Feb 2010 to 31 Mar 2020).
Filing and Payment Due Date:
You must file and pay the WHT to IRAS by the 15th of the second month from the date of payment to the non-resident.
For example, if you made a payment on 19 May 2024, the filing and payment due date would be 15 July 2024.
If you are on GIRO for WHT payment, the deduction occurs on the 25th of the month the tax is due. If the 25th falls on a weekend or public holiday, the deduction will be on the next working day.
How to File:
You need to e-file your WHT return via the S45 e-Services on the myTax Portal using your Singpass.
There are two ways to file:
S45 Online Filing: For filing a few records.
S45 Offline Data-Entry (ODE): For filing many records using an Excel-based template.
Steps to File:
Authorize Users: If you are filing on behalf of an organization, you need to authorize staff or tax agents via Corppass.
File on mytax.iras.gov.sg: Log in and select the relevant S45 e-Service.
View Acknowledgement and Pay: Follow the instructions to complete the form, view the acknowledgement page, and make payment.
View S45 Notices and Letters: You can view and download related documents on the portal.
Payment Methods:
GIRO: Preferred method. You can apply for eGIRO online.
Electronic Payment Modes: Internet Banking, DBS PayLah! Mobile App, Phone Banking, ATM, AXS Station/Online Platform, SAM Kiosk/Online Platform, Internet Banking Fund Transfer.
Important Considerations:
Date of Payment: This is crucial for determining the filing and payment due date. For service fees, it's often based on the invoice date. For director's fees, it depends on when they are approved.
Consolidated Filing: You can consolidate multiple payments to the same non-resident for the same engagement within a 60-day period into one filing, using the last payment date. For tax-exempted payments under Double Taxation Agreements (DTAs) or the Approved Royalties Incentive (ARI), you can consolidate filings twice a year (by 15 June and 15 December).
Avoidance of Double Taxation Agreement (DTA): If the payment is exempt under a DTA, you still need to file the WHT return. You may need to claim relief under the DTA.
Late Payment Penalties: Penalties will be imposed for late payment.
Amendments: You can amend WHT records submitted within the last two years online via the portal. For older records, you may need to follow a different procedure.
It's always a good idea to refer to the official IRAS website for the most up-to-date information, guides, and FAQs related to WHT filing.
How Bestar can Help
Engaging Bestar with Withholding Tax (WHT) filing with IRAS can be incredibly beneficial, especially if you find the process complex, have numerous transactions, or want to ensure full compliance and potentially optimize your tax obligations. Here's how we can help:
Expertise and Knowledge:
Deep Understanding of WHT Regulations: Bestar possesses in-depth knowledge of the Income Tax Act, relevant regulations, and IRAS guidelines concerning WHT. We stay updated on the latest changes in legislation and administrative practices.
Correct Identification of Taxable Payments: We can accurately determine which types of payments made to non-residents are subject to WHT and the applicable tax rates. This prevents under-withholding or over-withholding.
Application of Double Taxation Agreements (DTAs): Bestar is well-versed in Singapore's DTAs with various countries. We can help you determine if a non-resident payee is eligible for reduced WHT rates or even exemption under a DTA, ensuring you don't withhold more tax than necessary.
Navigating Complex Scenarios: We can handle intricate situations, such as payments involving multiple components, cross-border transactions with varying tax implications, or specific industry regulations.
Ensuring Compliance and Accuracy:
Proper Documentation: Bestar can advise you on the necessary documentation required for WHT purposes, such as invoices, contracts, and residency certificates. We can help ensure you maintain adequate records to support your filings.
Accurate Filing: We can prepare and file your WHT returns (Form IR37) accurately and on time, whether through the online portal or other accepted methods, minimizing the risk of errors and penalties.
Timely Payments: We can manage the payment process, ensuring that the withheld tax is remitted to IRAS by the stipulated deadlines, helping you avoid late payment penalties.
Liaising with IRAS: In case of queries or audits from IRAS regarding your WHT filings, Bestar can act as your representative, communicating and resolving issues on your behalf.
Efficiency and Time Savings:
Streamlined Processes: Bestar has established systems and workflows for managing WHT obligations, making the process more efficient for your business.
Reduced Administrative Burden: Outsourcing WHT filing frees up your internal resources, allowing your staff to focus on core business activities instead of navigating complex tax regulations.
Leveraging Technology: Bestar utilizes specialized software and tools to manage WHT filings, further enhancing efficiency and accuracy.
Risk Mitigation and Peace of Mind:
Minimizing Penalties: By ensuring accurate and timely filings and payments, Bestar helps you avoid costly penalties and interest charges from IRAS.
Staying Updated: We keep you informed about any changes in WHT regulations that might affect your business.
Providing Assurance: Engaging Bestar gives you peace of mind knowing that your WHT obligations are being handled correctly and in compliance with the law.
In summary, professional help with WHT filing can provide significant value by offering:
Expertise and accurate interpretation of regulations.
Ensured compliance and reduced risk of errors and penalties.
Efficient and timely completion of filing and payment obligations.
Reduced administrative burden on your business.
Representation and support in dealing with IRAS.
Consider engaging Bestar if you find WHT filing challenging, have a high volume of transactions with non-residents, or simply want the assurance that your tax obligations are being handled correctly and efficiently.
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