Q&A on Asian Bus.

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Is there a requirement to withhold tax by a company for payments made to non-resident directors?

  • FAQ: SINGAPORE
  • Date: 15.07.2010

Under sec 45B, there is a requirement to withhold tax at the prevailing corporate tax rate from “any remuneration” paid by a company to its non-resident directors. Where the director is in full-time employment with the Singapore company but is stationed abroad (for example in an overseas representative office), then remuneration paid to him should not be subject to withholding tax as the source of the income is clearly not Singapore and should not be taxable in the first place.

For more details, see Tax Planning & Compliance in Asia , [SGP ¶23-200] Withholding tax on remuneration paid to non-resident directors