Singapore Withholding Tax Requirement

Summary

Singapore Withholding tax requirement where tax is borne by Payer

Content

There is a withholding tax requirement for Singapore that withholding tax needs to be calculated @ 17% when a Non Singapore Supplier provides any service. However this withholding tax needs to be borne by the Payer (not by the Supplier) and calculated by re-grossing the invoice amount. For eg if the supplier provides a service for 100$ (invoice amount is 100$) then the invoice amount should be re-grossed as 100*(1/(1-0.17)) = 120.48. So withholding tax @ 17% of 120.48 will be 20.48 which will be paid to tax authority and amount of 100 will be paid to the supplier.