When And How To File Withholding Tax

To know what is withholding tax in Singapore, please read an article “A Singapore company – An overview of Withholding Tax”. In this article will updated when and how to file withholding tax of your organization in Singapore.

When to file Withholding tax

The e-filing of withholding tax and payment are due on 15th of the second month from the date of payment to the non-resident.

If you are on GIRO for withholding tax payment, the deduction is on the 25th of the same month after the payment due date.

You may refer to your acknowledgement page for payment details after you have e-filed.

Late penalty fees will be imposed when payment is not received by the due date. Hence, to avoid late payment penalties, please e-file the withholding tax and ensure the payment is received by IRAS before the due date.

The date of payment

The date of payment is defined as the earliest of the following dates:

  1. When the payment is due and payable based on the agreement or contract, or the date of the invoice in the absence of any agreement or contract (credit terms should not be taken into consideration).
  2. When payment is credited to the account of the Non-Resident or any other account(s) designated by the Non-Resident
  3. The date of actual payment
  4. Director’s Fees: The date of payment for director’s fees is the earliest of the payment date or the date the payment was voted and approved (Example: at the Company’s Annual General Meeting).

How to e-file witholding tax

The due date of filling witholding tax to IRAS is on the 15th of the second month from the date of payment to the non-resident.

In fact, the form of withholding tax can only be filed electronically via myTax Portal for withholding tax payment to IRAS from 1 July 2016.

Here is a process of e-filling withholding tax

Step 1 : Authorise Users for Withholding Tax Filing

If this is the first time your organisation is e-filling withholding tax or you wish to authorise/ re-authorise a person for e-filling, this step will be required.

Kindly note that from 1 September 2018, CorpPass will replace EASY as the authorisation system to access IRAS’s e-Service.

Step 2: Log into myTax Portal

After being the authorised, you can log in to myTax Portal for “ Organisation/ Business Tax Matters or Client Tax Matters, whichever is applicable to file for the orgiansation.

Kindly note that form 1 September 2018, the only login method is CorpPass, and the SingPass/ IRAS PIN is no longer accepted. 

Step 3 : e-File Withholding Tax

Next, you log in to myTax Portal to complete and e-file the withholding tax. Here are two points that you need to take note before e-filling:

  • You can choose one of two motheds as follows – S45 Online e-filling (2.109MB) or S45 Offline Data-Entry (ODE) application (1.942MB) (a single file).
  • Singapore dollar is the only currency which is reported in the withholding tax form. However, if your payment to non-resident is in foreign currency, please use foreign currency selling rate based on the date of payment to the non-resident to convert into Singapore dollar.
  • Drop the cents when declaring the gross taxable income
  • If your organization if applying Double Tax Relief or Approved Royalty Incentive rate on the withholding tax records to be e-filed, please select the applicable relief/ incentive under the Relief/ Incentive (If applicable)
  • Only authorised users as Approver can submit the e-filling to IRAS
  • You should receive an acknowledgment page upon successful transmission of the e-filling.

Step 4: Save the Acknowledgement Page and Make Payment

Save and read the instructions in the acknowledgment page to make payment (if applicable) to IRAS by the due date.

For details on the modes and due dates for payment, please refer to the following :

Source: Inland Revenue Authority of Singapore

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