According to an update from the Inland Revenue Authority of Singapore, the administrative concession for Section 12(7)(b) and (c) services will be withdrawn with effect from 1 April 2018 due to low adoption. The concession allows local payers to apply a lower withholding tax rate on routine related party services performed in Singapore with a standard markup of at least 5%. The lower withholding rate is a final tax equal to the markup amount, times the standard 17% rate, divided by the gross payment amount. From 1 April 2018, the standard 17% rate, which is a non-final tax, must be applied on the gross payment amount.
We’re here to answer any questions you have about the Orbitax products and services.
We’re committed to providing high value, low cost tax research and management solutions.
Our Twitter account is where you can find latest information, news updates, offers and lots more.