Source: https://rivet.global/blog/singapore-withholding-tax-on-payments-to-overseas-suppliers
Published: 2026-06-23 · Updated: 2026-06-23 · By Alexia M.

# Singapore withholding tax on payments to overseas suppliers

When a Singapore company must withhold tax on payments to non-residents: services, royalties and interest, the IRAS rates and the filing deadline.

## Key takeaways

- Singapore withholding tax applies to certain payments to non-residents, including interest, royalties, and fees for services performed in Singapore.
- IRAS lists prevailing rates of 15% for interest, 10% for royalties and 17% for services performed in Singapore by non-resident companies, before any treaty reduction.
- Services performed wholly outside Singapore are generally not subject to withholding.
- The tax is due to IRAS by the 15th of the second month after the payment date; late payment draws penalties.

"Payment to overseas supplier withholding tax" appears in Google's suggestions for Singapore searches next to "best way to pay overseas suppliers". The two questions belong together: a Singapore company that pays abroad has to know whether part of the payment belongs to IRAS first.

## What is covered

Withholding tax applies to specific payments made to non-residents. The common ones for a small company:

| Payment | Prevailing rate (IRAS) |
|---|---|
| Interest on loans | 15% |
| Royalties, including some software and know-how payments | 10% |
| Services performed in Singapore by a non-resident company | 17% |
| Management fees for work done in Singapore | 17% |

Treaties can reduce these. Services performed entirely outside Singapore are generally outside the rules.

## How it works in practice

A Singapore company pays a US consultant S$20,000 for a workshop delivered in Singapore. Unless an exemption or treaty applies, it pays the consultant S$16,600, files a return and sends S$3,400 to IRAS by the 15th of the second month after the payment date. The consultant gets a record of tax withheld.

If the same consultant had delivered the work remotely from the US, withholding would generally not apply.

## Set up payments so they are easy to evidence

- Keep the contract, the invoice and where the work was done.
- For royalties and interest, collect a certificate of residence if you apply a treaty rate.
- Pay the supplier and the tax as separate, clearly labelled payments.

## Paying into Singapore: the local rail

| What | Detail |
|---|---|
| Local rail | FAST and PayNow |
| Run by | Banking Computer Services, under the Association of Banks in Singapore |
| Settlement | Seconds, 24/7, up to S$200,000 per FAST transfer |

Source: [Association of Banks in Singapore: FAST](https://abs.org.sg/consumer-banking/fast). Checked when this guide was last updated; the scheme's own page has the current figures.

## Where Rivet fits

Rivet pays suppliers and contractors in 120+ countries from your company's balance, in their currency on local rails where available, with every payout on one ledger and downloadable receipts. That makes the record of what was paid, when and to whom easy to show IRAS. Check our eligibility list for Singapore companies. Rivet is not a bank; regulated partner institutions hold the funds. See [Payouts](/payouts) and [how to pay international contractors](/blog/how-to-pay-international-contractors).

## Questions

### Do I withhold tax when paying an overseas freelancer?

Generally not, if the work is done entirely outside Singapore. If the freelancer performs the service in Singapore, withholding can apply. IRAS publishes guidance on each payment type.

### Does a tax treaty reduce the rate?

Often. Singapore's tax treaties reduce withholding on interest and royalties for residents of treaty countries. The recipient may need to provide a certificate of residence.

### Is software a royalty?

It depends on what is licensed. Payments for the right to use software for internal business may be exempt; payments that grant rights to copy or distribute can be royalties. Check IRAS guidance before you pay.

### What happens if I forget to withhold?

The payer is liable for the tax and late payment penalties. File and pay as soon as you notice, and keep records of each payment.