Examples of withholding tax calculations for fees, airfare and accommodation for non-resident public entertainers.
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Example 1: Tax paid by non-resident public entertainer
A non-resident public entertainer was engaged by a payer to perform in Singapore for 20 days.
Besides artiste fees of $5,000, he was also provided with hotel accommodation at $200 a day. Cost of airfare of $1,500 was borne by the non-resident public entertainer.
(a) Income due and payable to the non-resident public entertainer on or before 31 Oct 2022
Assuming the income is due and payable to the non-resident public entertainer on 15 Apr 2022, his tax liability of $525 is computed as follows:
Artiste fees | $5,000 |
|---|---|
Hotel accommodation provided (60 days or less in a calendar year) | NIL (Not Taxable - Concession) |
Less airfare paid by the non-resident public entertainer | $1,500 (Deductible - Concession) |
Taxable Gross Income | $3,500 |
Withholding Tax @ 15%* | $525 |
*The withholding tax rate is 10% if the income for the services performed in Singapore is due and payable during the period from 22 Feb 2010 to 31 Mar 2022 (both dates inclusive). From 1 Apr 2022, a withholding tax rate of 15% will apply.
(b) Income due and payable to the non-resident public entertainer on or after 1 Nov 2022
Assuming the income is due and payable to the non-resident public entertainer on 24 Nov 2022, his tax liability of $1,125 is computed as follows:
Artiste fees | $5,000 |
|---|---|
Hotel accommodation provided ($200 a day x 20 days) | $4,000 (Taxable) |
Less airfare paid by the non-resident public entertainer | $1,500 (Deductible) |
Taxable Gross Income | $7,500 |
Withholding Tax @ 15%* | $1,125 |
* From 1 Apr 2022, a withholding tax rate of 15% will apply.
Example 2: Tax borne by payer
If the payer bears the tax for the non-resident public entertainer under contractual terms (i.e. payment to payee is treated as net of tax), the withholding tax would be computed on a re-grossed basis.
If the income is due and payable on 15 Apr 2022, the withholding tax of 15% would apply:
| Artiste fees, etc | $7,500 |
|---|---|
Add: Tax allowance $7,500 x 15/85 | $1,323.53 |
Taxable Gross Income | $8,823.53 |
Withholding Tax @ 15% | $1,323.53 |
Example 3: Other income received by non-resident public entertainer
A foreign sports personality was invited by a Singapore company to grace the event and participate in a public marathon.
He won the marathon and received the prize money of $50,000. For his appearance, he was paid a fee of $10,000. His airfare ($4,000) and cost of two-day stay at the hotel ($1,500) was borne by the company.
The company (payer) is required to withhold tax as follows:
(a) Income due and payable to the non-resident public entertainer on or before 31 Oct 2022
Assuming the income is due and payable to the non-resident sports personality on 15 Apr 2022, his tax liability of $9,000 is computed as follows:
| Prize money | $50,000 |
|---|---|
Appearance fees | $10,000 |
Hotel accommodation provided (60 days or less in a calendar year)# | NIL (Not taxable - Concession) |
Airfare provided | NIL (Not taxable - Concession) |
Taxable Gross Income | $60,000 |
| Withholding Tax @ 15%* | $9,000 |
# As his period of engagement was 60 days or less in 2022, the accommodation provided is not taxable.
*The withholding tax rate is 10% if the income for the services performed in Singapore is due and payable during the period from 22 Feb 2010 to 31 Mar 2022 (both dates inclusive). From 1 Apr 2022, a withholding tax rate of 15% will apply.
(b) Income due and payable to the non-resident public entertainer on or after 1 Nov 2022
Assuming the income is due and payable to the non-resident sports personality on 23 Nov 2022, his tax liability of $9,825 is computed as follows:
| Prize money | $50,000 |
|---|---|
Appearance fees | $10,000 |
Hotel accommodation provided# | $1,500 (Taxable) |
Airfare provided | $4,000 (Taxable) |
Taxable Gross Income | $65,500 |
| Withholding Tax @ 15%* | $9,825 |
# For cost of airfare borne by the payer, and cost of accommodation provided/reimbursed by the payer, such income that is due and payable to the non-resident public entertainer from 1 Nov 2022 onwards will be taxable, regardless of the period of engagement in a calendar year.
* From 1 Apr 2022, a withholding tax rate of 15% will apply.
FAQs
#1 Calculating withholding tax
How do I calculate the Singapore tax payable?
The payer is required to withhold tax at 15% of gross income [or 10% if the income is due and payable to you during the period from 22 Feb 2010 to 31 Mar 2022 (both dates inclusive)] for services performed in Singapore. Please refer to Example 1.
What if the payer bears the withholding tax on my behalf?
This is a taxable benefit. Please refer to Example 2.