§ 45F — Application of section 45 to income from profession or vocation carried on by non‑resident individual, etc.

45F.—(1) Subject to subsections (1A), (2) and (2A), section 45 applies in relation to the payment of any income accruing in or derived from Singapore on or after 3 May 2002 from —(a)

any profession or vocation (other than that derived by any public entertainer as defined in section 40A) by any person to any individual referred to in section 43(4)(a) not known to the person to be resident in Singapore; or

(b)

any profession or vocation by any person to any foreign firm referred to in section 43(4)(b),

as section 45 applies to any interest paid by a person (X) to another person (Y) not known to X to be resident in Singapore and, for the purpose of such application, any reference in that section to interest is a reference to such payment.

[Act 33 of 2022 wef 04/11/2022]

[Act 30 of 2023 wef 30/10/2023]

(1A) Subject to subsections (2) and (2A), section 45 applies in relation to the payment of any income derived from Singapore during the period from 1 April 2023 to 31 December 2027 (both dates inclusive) by any person —(a)

to an individual not known to the person to be resident in Singapore, for acting as an arbitrator;

(b)

to a qualifying mediator not known to the person to be resident in Singapore, for providing services of a mediator for a mediation —(i)

that takes place in Singapore; or

(ii)

that would have taken place in Singapore but for the settlement of the dispute or withdrawal of the claim in question; or

(c)

to an individual not known to the person to be resident in Singapore, for providing the services of a mediator for a qualifying mediation —(i)

that takes place in Singapore; or

(ii)

that would have taken place in Singapore but for the settlement of the dispute or withdrawal of the claim in question,

as section 45 applies to any interest paid by a person (X) to another person (Y) not known to X to be resident in Singapore and, for the purpose of such application, any reference in that section to interest is a reference to such payment.

[Act 33 of 2022 wef 04/11/2022]

[Act 30 of 2023 wef 30/10/2023]

(2) The deduction of tax under section 45 is at the rate of —(a)

15% for the purpose of subsection (1); and

(b)

10% for the purpose of subsection (1A).[Act 33 of 2022 wef 04/11/2022]

(2A) Where an individual or a foreign firm to which section 43(4) or (4A) applies makes an irrevocable option under section 43(5) to be taxed under section 43(1)(b) on any payment of income accruing in or derived from Singapore by the individual or foreign firm, the application of section 45 by subsections (1), (1A) and (2) is further modified as follows:(a)

the reference to the payment of income to the individual or foreign firm is to such payment after deducting any expenditure that the person making the payment reasonably believes is wholly and exclusively incurred by the individual or foreign firm in the production of that income;

(b)

the deduction of tax under section 45 for such payment is at the rate specified in section 43(1)(b).[Act 30 of 2023 wef 30/10/2023]

(3) In this section, “arbitrator”, “qualifying mediation” and “qualifying mediator” have the meanings given by section 43(10).[Act 33 of 2022 wef 04/11/2022]

—(1) Subject to subsections (1A), (2) and (2A), section 45 applies in relation to the payment of any income accruing in or derived from Singapore on or after 3 May 2002 from —(a)

any profession or vocation (other than that derived by any public entertainer as defined in section 40A) by any person to any individual referred to in section 43(4)(a) not known to the person to be resident in Singapore; or

(b)

any profession or vocation by any person to any foreign firm referred to in section 43(4)(b),

as section 45 applies to any interest paid by a person (X) to another person (Y) not known to X to be resident in Singapore and, for the purpose of such application, any reference in that section to interest is a reference to such payment.

[Act 33 of 2022 wef 04/11/2022]

[Act 30 of 2023 wef 30/10/2023]

(1A) Subject to subsections (2) and (2A), section 45 applies in relation to the payment of any income derived from Singapore during the period from 1 April 2023 to 31 December 2027 (both dates inclusive) by any person —(a)

to an individual not known to the person to be resident in Singapore, for acting as an arbitrator;

(b)

to a qualifying mediator not known to the person to be resident in Singapore, for providing services of a mediator for a mediation —(i)

that takes place in Singapore; or

(ii)

that would have taken place in Singapore but for the settlement of the dispute or withdrawal of the claim in question; or

(c)

to an individual not known to the person to be resident in Singapore, for providing the services of a mediator for a qualifying mediation —(i)

that takes place in Singapore; or

(ii)

that would have taken place in Singapore but for the settlement of the dispute or withdrawal of the claim in question,

as section 45 applies to any interest paid by a person (X) to another person (Y) not known to X to be resident in Singapore and, for the purpose of such application, any reference in that section to interest is a reference to such payment.

[Act 33 of 2022 wef 04/11/2022]

[Act 30 of 2023 wef 30/10/2023]

(2) The deduction of tax under section 45 is at the rate of —(a)

15% for the purpose of subsection (1); and

(b)

10% for the purpose of subsection (1A).[Act 33 of 2022 wef 04/11/2022]

(2A) Where an individual or a foreign firm to which section 43(4) or (4A) applies makes an irrevocable option under section 43(5) to be taxed under section 43(1)(b) on any payment of income accruing in or derived from Singapore by the individual or foreign firm, the application of section 45 by subsections (1), (1A) and (2) is further modified as follows:(a)

the reference to the payment of income to the individual or foreign firm is to such payment after deducting any expenditure that the person making the payment reasonably believes is wholly and exclusively incurred by the individual or foreign firm in the production of that income;

(b)

the deduction of tax under section 45 for such payment is at the rate specified in section 43(1)(b).[Act 30 of 2023 wef 30/10/2023]

(3) In this section, “arbitrator”, “qualifying mediation” and “qualifying mediator” have the meanings given by section 43(10).[Act 33 of 2022 wef 04/11/2022]