Paying a foreign vendor or consultant? Withholding tax may apply. Learn which payments trigger WHT under Section 45 of the Income Tax Act, the applicable rates, how to file with IRAS, and double tax treaty relief.
Singapore's tax regime is widely admired for its simplicity and competitive rates, but one area regularly trips up Singapore-incorporated companies — particularly those making cross-border payments to overseas suppliers, lenders, or licensors: withholding tax. Get it wrong, and the company is liable to IRAS for the tax it should have withheld, plus penalties and interest. [...]