🇸🇬 Singapore · reviewed 2026-10-09
Tax on royalties and franchise fees in Singapore
Singapore withholds 10% from royalties paid to foreign franchisors and expects it within weeks. GST is less of an issue than in neighbouring markets: most food franchisees are outside the reverse-charge rules.
Withholding tax
- Royalties paid to a non-resident are subject to 10% withholding tax, or a lower treaty rate. The payer files and pays by the 15th of the second month after payment: a payment on 7 April is due by 15 June. Official · IRAS, payments subject to withholding tax
- Late payment attracts a 5% penalty, and if the tax is still unpaid 30 days after the due date IRAS may add 1% for each completed month, up to 15% of the unpaid tax. Official · IRAS, late payment of withholding tax
GST
- Singapore's GST rate has been 9% since 1 January 2024. Official · IRAS, GST rate change
- Reverse charge on imported services, including royalties and franchise fees, applies only to GST-registered businesses that cannot claim full input tax credit, for example because they make exempt supplies. A typical fully taxable food franchisee is not subject to it. Official · IRAS, reverse charge for local businesses
Planning points
- Agree whether royalties are gross or net of the 10% withholding tax, and who bears late-payment penalties.
- Check the treaty between Singapore and your home country, and give the payer a certificate of residence.
- Ask your Singapore partner to confirm its GST position before assuming reverse charge applies.
More on Singapore
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