Withholding Tax

According to the Singapore Income Tax Act, if you make certain types of payments to non-resident companies or individuals, you must deduct tax from the payment and pay it to IRAS (Inland Revenue Authority of Singapore). You need to file and pay this withholding tax by the 15th of the second month after the payment is made.

In Zoho Billing, you can now record withholding tax directly while creating a transaction.

Types of Withholding Tax

Based on the type of payment made to non-residents, withholding tax is classified as follows:

Tax NameTax Rate %
Interest, Commission, Fees15
Management and Technical Fees17
Non-Resident Professionals15
Public Entertainers10
Rent paid to a non-resident for leasing machinery, vehicles, or equipment.15
Royalty Payments10

Enable Withholding Tax

Before deducting withholding tax from your transactions, you need to enable it. Here’s how:

Withholding tax will now be enabled for your organization.

Create Customers

To create and enable withholding tax for a customer:

Withholding tax will now be enabled for this customer.

Create Transactions and Record Payments

You can create invoices and deduct withholding tax on them. Here’s how:

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