Therefore, any individual who does not lie in the definition given or a company, in that case, is definitely a non-resident. (statutes.agc.gov.sg, 2007) The main difference between resident and non-resident individuals and companies comes in when the tax is subjected to them. This is as is explained. Individuals who are non-resident are liable to pay tax on the entire income that is sourced from Singapore but for situations where the income in question is exempted from taxation. Exempted income may include interest income that is gained from amounts deposited in a Singapore approved bank as stipulated in Section 13(1)(t). Any income derived from foreign by a non-resident individual in Singapore is not subject to tax as per Section 13(7A)(a). Non-resident individuals were charged tax on all income derived from Singapore at 20% in the year 2008. (Tan, 2009 p348) The taxation basis for resident and non-resident companies alike is the same from a generic point of view. The only difference is that some benefits are enjoyable by resident companies only like the benefits that arise from Double Taxation Agreements by Singapore and other nations. The partial exemptions of tax like lower effective rates of tax that are usually capped at the rate of 8.5% upon the first SOK of the profits that are subject to tax per annum of tax assessment. Tax-exempt dividends, as well as Goods and Services Tax, are other tax-exempt incomes that Singaporean Companies enjoy, unlike non-resident companies. (urbanaohio.org, 2009) Types of payment subjects to and exempted from withholding tax Withholding tax is a kind of tax where tax is deducted at source and it only applies to specific income types to both non-resident companies and individuals. The income in question should have been derived from Singapore and it must have been by non-resident persons either for work done or services provided in this nation. In the transaction case where a Singapore individual or company pays services to a non-resident, a portion of that payment has to be withheld and later handed over to IRAS- Inland Revenue Authority of Singapore. This withheld amount is known as withholding tax. This tax type does not, however, apply in any way to resident companies or individuals. Specific payment types are subject to withholding tax for companies that are non-resident. These are; firstly, fee, commission, and interest with regards to any indebtedness or loan. Here where a resident company/individual is liable to pay interest on unpaid trade accounts or on credit terms to a non-resident person who has supplied such or even a loan, here withholding tax is applicable. These kinds of payment attract withholding tax at 15% rate.