2 June 2014

On 29 May 2014, the Inland Revenue Authority of Singapore (“IRAS”) updated its website content on “Withholding Tax > FAQs (For payments made to non-resident companies) – Services”. The update relates to clarification on withholding tax on reimbursed expenses.

With regards to reimbursement of accommodation, meals and transportation expenses to a non-resident company, withholding tax is applicable unless the payer can obtain a detailed breakdown of the expenses showing that the expenses were reimbursed at the actual costs incurred, without any mark-up or profit element. The payer does not need to submit the breakdown/documents to IRAS but it is required to retain them and submit to IRAS upon request.

For more information, please refer to the IRAS website.

Source: Inland Revenue Authority of Singapore