FCNR(B) hurdle: Singapore holds ground on withholding tax

Given the spread between interest offered on FCNR deposits and interest charged on loans, a 10% WTH on loan interest on tax grossed-up basis would erase effective returns. Where spreads are thin and final yield is generated through higher leverage, the tax can result in negative return.

Leave a Comment

Leave a Reply

Your email address will not be published. Required fields are marked *