Analysis of Section 45 of SITA

Running head: ANALYSIS OF SECTION 45 OF SITA
ANALYSIS OF SECTION 45 OF SITA
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ANALYSIS OF SECTION 45 OF SITA
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Executive Summary
This report aims to analyse the provisions of section 45 of the Singapore Income Tax Act
(SITA). This analysis is done by initially understanding the concept of withholding tax in general
by referring to different sources of literature available. The knowledge acquired through such
literature is then applied in the context of withholding tax in Singapore and the provisions related
to it. Various parts of the provisions like percentage of withholding tax on various payments,
their treatment by the IRAS, consequences of withholding or non-payment of taxes and
exemptions available under this section are all researched thoroughly. This knowledge, along
with relevant case laws are applied in the case of Delta Enterprise restaurant to guide them about
the situation in which a royalty payment has to be made to their Austrian chef. The report
concludes with an overview of the information gathered from the sources of literature and a
suggestion of the possible steps that should be taken to improve the efficiency of the provisions
in place.

ANALYSIS OF SECTION 45 OF SITA
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Table of Contents
Introduction..................................................................................................................................3
Overview of the provisions of Section 45....................................................................................3
Tax treatment of various payments..............................................................................................4
Consequences of Defaulting Withholding tax payments.............................................................5
Exemptions...................................................................................................................................6
Analysis of Tax implications of Delta Enterprise........................................................................6
Conclusion...................................................................................................................................6
References....................................................................................................................................7