Withholding Tax Services in Singapore
Navigating withholding tax compliance in Singapore is crucial for businesses making payments to non-resident companies. Under Singapore's Income Tax Act, withholding tax applies when payments of specified types are made to non-residents. The withholding tax rate ranges from 10% to 17%, depending on the nature of the payment. At Apexia Corporate Advisory, we offer expert assistance to ensure your compliance with all withholding tax obligations.
What is Withholding Tax?
Withholding tax is a tax levied on payments made to non-resident entities for specific services or transactions. These payments include:
- Interest, commissions, or fees related to loans or indebtedness
- Royalties for the use of movable property
- Payments for the use of scientific, technical, or industrial knowledge
- Payments for management fees
- Rent or payments for movable property usage
- Payments for the purchase of real property from non-resident property traders
- Payments for structured products (except those exempt under Section 13(1)(zj) of the Income Tax Act)
- Distributions from real estate investment trusts (REITs)
The applicable withholding tax rate depends on the nature of the payment and its taxability under Singapore's tax laws.
When is Withholding Tax Filing Due in Singapore?
The withholding tax must be filed and paid to the Inland Revenue Authority of Singapore (IRAS) by the 15th day of the second month following the date of payment to the non-resident. For instance, if payment is made in January, the withholding tax must be filed and paid by 15th March. Late filing or payment may result in penalties, so timely compliance is crucial.
Apexia Corporate Advisory's Withholding Tax Services
At Apexia Corporate Advisory, we simplify the complexities of withholding tax compliance, offering a range of services to meet your needs:
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Determining Withholding Tax Obligations
- Evaluate whether payments to non-residents are subject to withholding tax.
- Identify applicable tax rates based on the type of payment.
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Accurate Tax Computation
- Calculate the withholding tax amount accurately to avoid overpayment or underpayment.
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Filing Withholding Tax Returns
- Prepare and file all required withholding tax returns with the Inland Revenue Authority of Singapore (IRAS).
- Ensure proper classification and adherence to IRAS' compliance standards.
Benefits of Choosing Apexia Corporate Advisory for Withholding Tax Compliance
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Domain Expertise
- With a team of experienced tax professionals and Chartered Accountants (CA), we handle the intricacies of withholding tax across various scenarios.
- Comprehensive understanding of tax rates and their applicability to different payment types.
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Avoid Penalties
- IRAS imposes a 5% penalty for late payment of withholding tax, with an additional 1% penalty per month on the unpaid amount. Our expertise ensures timely compliance to help you avoid these penalties.
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End-to-End Support
- From determining taxability to filing returns, we offer a seamless service to ensure compliance with all withholding tax obligations.
Why Choose Apexia Corporate Advisory?
At Apexia Corporate Advisory, our tailored solutions simplify tax compliance and minimize risks for businesses in Singapore. We focus on:
- Ensuring accuracy in withholding tax filings
- Providing peace of mind by managing all compliance requirements
- Offering expert guidance to navigate Singapore's tax landscape effectively
Contact Apexia Corporate Advisory Today. Ensure seamless compliance with withholding tax regulations by partnering with Apexia Corporate Advisory. Get in Touch to learn more about our professional tax services and how we can support your business.
