On or about 1 Dec 2020, the Inland Revenue Authority of Singapore (IRAS) has published an Income Tax Advance Ruling Summary No. 12/2020 with regards to “Withholding tax on art performance fees”.
The subject was whether the provisions of sections 12(7)(a), 12(7)(b), 12(7)(d), 45 and 45GA of the Income Tax Act are applicable to the payments made by a Singapore payer (“Payer”) to a foreign payee (“Payee”) to stage an art performance in Singapore.
The Ruling
The fixed fee payment made by Payer to Payee does not fall within the scope of sections 12(7)(a), 12(7)(b), 12(7)(d), 45 and 45GA of the Singapore Income Tax Act.
The Clarifications
The fixed fee and variable fee payable to Payee under the Production Agreement are fees for the staging of an art performance in Singapore and do not come within the provisions of sections 12(7)(a), 12(7)(b), 12(7)(d), 45 and 45GA of the Singapore Income Tax Act.
However, the payments made by Payee to its employees in respect of their income derived from Singapore as public entertainers are subject to Singapore withholding tax to the extent that the employees are residents of jurisdictions which have concluded Avoidance of Double Taxation Agreements with Singapore, the provisions of the relevant DTAs will apply.
For more information about the ruling, please go to the IRAS website.
Source, IRAS, 3 Dec 2020