Does a Singapore company need to withhold tax when paying amounts to Korea?

Yes, generally, paying interest, royalties or fees for services performed in Singapore to a company or individual in Korea may be subject to withholding tax, and the rate depends on the type of payment and the tax treaty.

According to IRAS, the standard rates are 10% for royalties, 17% (the corporate income tax rate) for fees for services performed in Singapore, and 15% for interest, and they may be lower if the Korea-Singapore tax treaty applies.

• When paying royalties or management support fees to a Korean head office: whether withholding applies can depend on the contract terms and where the services are performed, so please review this at the contract stage.
• When paying interest on a loan from a Korean head office: it may be subject to withholding tax, and you need to check whether the treaty rate applies.

Tax treatment can differ depending on the company's revenue, shareholder structure and transactions, so please consult an accounting professional before applying it.

The Lee Kim Alliance accounting team provides accounting and tax consultations.

As of November 2026, source: IRAS