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Late Payment Letter FORM IR37 SECTION

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Late Payment Letter FORM IR37 SECTION Powered By Docstoc
					                                                        FORM IR37
                                            SECTION 45 WITHHOLDING TAX RETURN
                            For payments under Section 45/45A/45B/45C of the Income Tax Act

Note: This form may take you 5 minutes to complete. Please get the following ready:                               55 Newton Road
a) Particulars of non-resident        b) Details of payment made                                                  Singapore 307987
                                                                                                                  Tel : 6351 2784/5/6/7
Confirmation of Payment letter (CP) will be issued within 14 days from the receipt of payment and form IR37.      Fax : 6351 2828
Incomplete form IR37 will delay the issuance of CP.                                                               Email: enfs45@iras.gov.sg
  1. PARTICULARS OF PAYER
  Name:
  Address :
  Tax Reference No:                                                                                  Email:

  2. PARTICULARS OF NON-RESIDENT (*delete where applicable)
  Name:
  Your Non-Resident is a foreign : *Individual / Partnership / Corporate Company / Government Body / University
                                                  Club / Association / Society / Others, please specify:
  Foreign Address :
                                                                                                State Country (                      )
  Tax Reference No. of Non-Resident (if any) :                                                       Email:
   3. NATURE OF PAYMENTS (Please select only one applicable box)

  a.     Interest
  b.     Royalties - Other Intellectual Properties Rights (patents,copyrights,trademarks etc)
  c.     Royalties - Use of Industrial Commerical or Scientific Information
  d.     Royalties - Computer Software
  e.     Rental of Equipment or other moveable property (except ship & aircraft)
  f.     Technical Service Fee
  g.     Management Fee
  h.     Charter Fee (for ship & aircraft)
  i.     Approved Unit Trust
  j.     Designated Unit Trust
  k.     Director's Fees
  l.     Director's Remuneration
  m.     Real Estate Investment Trust (REIT)
  n.     Singapore Govt Securities - Non-Resident Individual
  o.     Singapore Govt Securities - Non-Resident Not Using Singapore Operation's Funds
  p.     Singapore Govt Securities - Non-Resident Using Singapore Operation's Funds
  q.     Singapore Govt Securities - Non-Resident With No Permanent Establishment
  r.     Singapore Govt Securities - Non-Resident Is A Permanent Establishment in Singapore
  s.     Others : Please specify :

                                                          1
   4. PERIOD FOR NATURE OF PAYMENT

  For Singapore Govt Securities, please proceed to Section B to fill up.
  Section A :
  Period From:                                                          Period To :
  Impt Note : If the period covers more than 1 calendar year , please provide a breakdown of the gross amount for each
  calendar year on a separate sheet.
  Section B :
  Date of Treasury Bill Issued :


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                                                           2
  5. DATE OF PAYMENT TO THE NON-RESIDENT


  State The Date of Payment To Non-Resident: (dd/mm/yy)               __________________________


  6. WITHHOLDING TAX COMPUTATION

  a) Please select only ONE if applicable :-

       Double Taxation Relief 3                 Approved Royalties Incentives                    Special Concessionary Tax Rate


  b) If you are bearing the withholding tax, please proceed to Section B to compute the regross amount and tax
   deducted.
  Section A:

          Gross Amount                    Tax Rate5                        Tax Deducted6                 Penalty (If any)7

  S$                                                  %        S$                                   S$

  Section B: (Tax borne by payer.)

          Regross Amount4                 Tax Rate5                        Tax Deducted6                 Penalty (If any)7

  S$                                                  %        S$                                   S$


  7. DECLARATION ON EXISTENCE OF PERMANENT ESTABLISHMENT8

 Is the gross amount derived by the non-resident from any trade, business, profession or                           Yes       No
 vocation carried on in Singapore and effectively connected with any permanent establishment
 of the non-resident in Singapore?

  8. WITHHOLDING TAX PAYMENT MODE


               Cheque (Make payable to “Comptroller of Income Tax”)

  Name of Bank/Cheque No : _______________                            Cheque Amount          $

                                   9
               Electronic transfers            (Please attach a copy of the electronic transfer advice together with this
               form during submission)

  9. DECLARATION

  I, _____________________________, _______________________, certify that the particulars furnished are
                  Name                         Designation
    true and correct.
        __________________________                    ____________________                          _________________
                   Signature                                        Date                              Contact Number
For Internal Use
PC/TPS                                    RAB Receipting                              S45:
                                                                                             IR37 Data Updated
                                                                                                   Date
                                                                                      INL ____________ _______________




                                                               Pg 2
                                NOTES FOR COMPLETING FORM IR37

This form is to be completed by the payer who has made or is deemed to have made payment to a non-resident for
interest, royalties, charter fees, rents for movable property, director‟s remuneration or other income under
S45A/45B/45C of the Income Tax Act.
With effect from 1 April 2003, the completed Form IR37 has to be submitted to IRAS together with the
                                                                                                                2
cheque/remittance advice for the withholding tax payment by the 15th of the month following the date of payment
to the non-resident. This means that if the date of payment falls on any dates in the month of April 2003, the
submission of Form IR37 and payment of withholding tax must be made by 15 May 2003.
For non-resident transactions with date of payment prior to 1 April 2003, payers are required to file and pay the
withholding tax within 10 days from the date of payment to the non-resident.

1. Period For Nature of Payment

Period for Nature of Payment relates to the period for which the service was rendered. If the period covers more
than 1 calendar year, please provide a breakdown of the gross amount for each calendar year on a separate sheet.

2. Date of Payment

Withholding tax must be accounted for at the earliest of the following dates:

(a) when payment is due and payable based on agreement/contract. In the absence of contract/agreement, the
    date of invoice would be the deemed date of payment
(b) when payment is credited to the account of the non-resident professional (reinvested, accumulated,
    capitalized or carried to any reserve) or any other account however designated; and
(c) the date of actual payment.

The date of payment for director‟s fees is the earliest of the following dates:

(a) date they are voted and approved at the company‟s Annual General Meeting (AGM)
(b) when payment is credited to the account of the non-resident professional (reinvested, accumulated,
    capitalized or carried to any reserve) or any other account however designated; and
(c) the date of actual payment.

3. Double Tax Relief

Certificate of Residence from non-resident must be completed when claiming for reduced tax rate under the
Agreement for the Avoidance of Double Taxation (DTA).

The Certificate of Residence must be completed and duly endorsed by the Tax Authority in the Contracting State
before returning the original copy to IRAS by the 31st March of the following year. Certificate of Residence is to be
submitted annually.

If the form is not received by the due date, the difference between the corporate tax rate and the amount previously
paid will be recovered from the payer.

In addition, a late payment penalty will be imposed retrospectively on the abovementioned difference.

The „Format for the Certificate of Residence from non-resident‟ can be obtained via IRAS website at
http://www.iras.gov.sg

4. Regross Amount

Where the amount of tax is borne by the payer, this amount is a benefit and has to be brought into the
computation of the withholding tax. The formula for calculating regross amount is



                                                                                                                    Pg 3 of 8
                                    Gross Amount
                           (100% - Applicable Tax Rate)

Example:       Year of Assessment 2006
               Amount Paid to non-resident                             $8,400.00
               Tax Rate is 20%
               Regross Amount [$8,400 /80%)]                          $10,500.00
               Tax Deducted at 20% [$10,500.00 X 20%]                 ($2,100.00)
               Net Amount Paid to non-resident                        $8,400.00

5. Corporate Tax Rate


  Year of Assessment          Calendar Year                     Period                        Tax Rate (%)
          2001                      2000               01.01.2000 to 31.12.2000                   25.5
          2002                      2001               01.01.2001 to 31.12.2001                   24.5
      2003 to 2004              2002 to 2003         01.01.2002/3 to 31.12.2002/3                  22
          2005                  2004 to 2006           01.01.2004 to 31.12.2006                    20
          2008                      2007               01.01.2007 to 31.12.2007                   18*
* Please note that this rate is not applicable for payments to non-resident individuals as announced in the
budget statement.

6. Exchange Rate

The exchange rate to be used is the rate prevailing as at the date of payment to the non-resident.

7. Late Payment Penalties

If the withholding tax, which is required to be deducted, is not paid to the Comptroller: -
             th
(a) by the 15 of the month following the payment due date to the non-resident, a late payment equal to 5% of
    such amount of tax shall be payable; and
                                th
(b) within 30 days after the 15 of the month following the payment due date to the non-resident, an additional
    penalty of 1% shall be payable for each completed month that the tax remains unpaid, up to a maximum of
    15%.

8. Permanent Establishment

A fixed place where a business is wholly or partly carried on including a place of management, a branch, an
office, a factory, a warehouse, a building or work site or a construction, installation or assembly project.

9. Electronic Transfers

If you are making payment through Telegraphic Transfer, please instruct your bank to transfer your tax
payments (with full particulars) to the DBS bank account directly as follows:

                           Commissioner of Inland Revenue
                           Development Bank of Singapore
                           Shenton Way Branch
                           Singapore 068809
                           DBS swiftcode: DBSSSGSG
                           Account number: 001-046866-9

Please write your name, tax reference number, the period of payment, payment instructions and indicate
Section 45 withholding tax on the remittance advice. To ensure that funds are transferred and updated to
your account, please complete the form “Notification of Funds Transfer” which can be downloaded from


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IRAS website at http://www.iras.gov.sg and fax it to:

                          Inland Revenue Authority of Singapore
                          Attn:     Revenue Accounting Br – Receipting Team
                          Fax:      (65) 6351 4363

A copy of the notification of fund transfer is to be attached together with your submission of Form IR37.




                                                                                                            Pg 5 of 8
nt to a non-resident for
 income under

ther with the
                       2
ng the date of payment
 f April 2003, the

 d to file and pay the




e period covers more
ar on a separate sheet.




ract/agreement, the

 ccumulated,




 ccumulated,




ax rate under the


the Contracting State
cate of Residence is to be


d the amount previously




                             Pg 6 of 8
       Tax Rate (%)
           25.5
           24.5
            22
            20
           18*
 as announced in the




 ment equal to 5% of

esident, an additional
up to a maximum of




ent, a branch, an
mbly project.




 and indicate
nd updated to
wnloaded from


                         Pg 7 of 8
of Form IR37.




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