On 2 July 2014, IRAS has updated the content of withholding tax’s FAQ (For payments made to non-resident companies).
IRAS takes the position that Singapore withholding tax is applicable if the payment for web-hosting services is made to a non-resident company for the work done in Singapore. The payer is required to withhold tax at the rate of 17% (prevailing corporate tax rate).
Where there is a payment for rental of equipment such as the leasing of a server, it is also subject to a final withholding tax at 15% or at a reduced rate as specified in the relevant Double Taxation Agreement.
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