Question 1

What should I do now?

Accepted Answer

No action is required from you. We will automatically process the Singapore Non-Resident Withholding Tax as described.

Additional Information…

Question 2

Can I claim any credit for the amount of tax withheld?

Accepted Answer

You might be eligible to claim a credit of the Singapore Non-Resident Withholding tax deducted by Interactive Brokers Singapore Pte. Ltd. (“IBSG”) against your income tax liability in your country of tax residence. You are encouraged to consult a qualified tax professional regarding this possibility…

Question 3

Who is subject to the Singapore Non-Resident Withholding Tax?

Accepted Answer

The Singapore Non-Resident Withholding tax applies to Interactive Brokers Singapore Pte. Ltd. (“IBSG”) customers who are treated as “non-residents” of Singapore for tax purposes. You are subject to this withholding tax if the country of tax residence on file for your account at IBSG is outside of Singapore…

Question 4

What is the Singapore withholding tax on interest payments to non-residents (the “Singapore Non-Resident Withholding Tax”)?

Accepted Answer

The Singapore Non-Resident Withholding Tax is imposed by Singapore under Section 45 of the Income Tax Act of 1947 on applicable interest payments made by Interactive Brokers Singapore Pte. Ltd. (“IBSG”) to customers who are not tax residents of Singapore. This withholding tax applies to interest earned on cash balances as well as Short Sales Proceeds Interest. IBSG is required to withhold 15% of these interest payments and remit this tax to the Inland Revenue Authority of Singapore (“IRAS”)…

Question 5

Where will the withheld funds go?

Accepted Answer

The full amount of the tax withheld will be directly remitted to the Inland Revenue Authority of Singapore (“IRAS”) by Interactive Brokers Singapore Pte. Ltd. (“IBSG”).

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Question 6

Is the Singapore Non-Resident Withholding Tax the same as the Singapore Goods and Services Tax (“GST”)?

Accepted Answer

No, the Singapore Non-Resident Withholding Tax is different from the Singapore Goods and Services Tax ( “GST”). The Singapore Non-Resident Withholding Tax is imposed on applicable interest payments made by Interactive Brokers Singapore Pte. Ltd. (“IBSG”), whereas the GST is imposed on commissions paid by you. In general, IBSG is required by Singaporean law to charge GST on certain services provided by IBSG irrespective of the customer’s country of tax residence. …

Question 7

When will the Singapore Non-Resident Withholding Tax be withheld?

Accepted Answer

The Singapore Non-Resident Withholding Tax will be withheld from each applicable interest payment at the time the payment is made to the customer.

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Question 8

How is the Singapore Non-Resident Withholding Tax calculated?

Accepted Answer

The Singapore Non-Resident Withholding Tax is applied to the gross amount of the credit interest and short credit interest payments made to your account at the current statutory rate of 15%.

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