Interest payments made by Singapore tax residents / permanent establishments to non-Singapore tax residents are generally subject to 15% withholding tax. However, there is a range of withholding tax exemptions for the financial sector applicable to different financial institutions for different types of financial transactions.
As part of an ongoing review to ensure the relevance and usefulness of these exemptions, it has been proposed to:
- Set a review date of 31 December 2022 for certain payments;
- Legislate the exemption for certain payments (and setting a review date of 31 December 2022); and
- Withdraw the exemption for certain payments.
Please refer to the details of the changes below. MAS will release further details by May 2018.