Knowledge base

Withholding tax in Singapore: Rental income

Rental Income Subject to Withholding Tax Under Section 12(7) (d), rent or other payments under any agreement or arrangement for the use of any movable property shall be deemed derived from Singapore if they are: Borne by a person, resident or a PE in Singapore; OR Deductible against any income accruing…


Withholding tax in Singapore: Royalties

What is Royalty? Royalty is the consideration for the use of, or the right to use any copyright of literacy (Software), or any artistic or scientific work. It consists of patent, trade mark, design or model, secret formula, information or process which is usually a secret and not commonly available…


Shareholder's continuity test: Singapore

Shareholders’ continuity test The shareholders’ continuity test holds that the same shareholders must hold at least 50% of the company’s total shares as at both the relevant dates. If the test was not fulfilled, the losses would be dismissed permanently unless a waiver to fulfil the test is obtained…


Withholding tax in Singapore: Interest

Definition: Whether a payment is considered "interest" depends on the substance of the transaction. The intrinsic nature of said interest is compensation for not being able to use or the delayed payment of money by another. The interest must be charged against a primary sum of money which must be owed…


Royalties in Singapore

The Income Tax Act does not give a definition for royalties. However, royalties can be defined as a payment for the right to use a patent, copyright and other intellectual property. E.g. payment for every book sold or an artist album sold on VCD. Royalties are defined in Article 12 of the OECD Model…


Withholding tax in Singapore - Introduction

Concept of Withholding Tax When income is paid to a non-resident of a country, it is typical of the country to collect tax from the non-resident; the payee is required to withhold tax before paying the net amount to the non-resident. It is a tax subsidised by a non-resident on income derived or deemed…


GST Registration in Singapore

Dear Sir, We have received a letter from IRAS dated xx month xxxx asking your company to register for GST as your turnover has crossed the S$1million mark. What is GST? Goods and Services Tax is a tax on the supply of goods and services made in Singapore by a taxable person in the course or furtherance…


The Singapore budget 2014

For all businesses: This year’s budget did not emphasise on significant tax changes. The government wants to restructure the Singapore economy to achieve quality growth. Businesses that make investments in productivity to save manpower or achieve innovative breakthroughs will be actively supported by…