# Singapore withholding tax may wipe out NRI FCNR leverage gains 2026-08-08T00:45:25+00:00 | World & Diplomacy | Indian Opinion Desk Corroboration: 1 independent outlet A Singapore tax ruling may erase most of the leverage advantage on FCNR(B) deposits for NRIs who are tax residents of Singapore. The Inland Revenue Authority of Singapore (IRAS) said interest paid by a Singapore tax resident to an Indian bank is deemed to originate from Singapore, triggering withholding tax at 10% (under the India-Singapore DTAA) or 15% (domestic rate). Tanvi Kanchan of Anand Rathi told ET Wealth that the tax applies only when borrowing is routed through a non-Singapore branch, such as one in GIFT City. Her calculations show a 9x leveraged $1 million deposit earning 4.20% could see net yield fall from 9.15% to as low as 4.22% after a 15% withholding tax. Loans from a bank's Singapore branch face no such tax. ## Coverage - economictimes.indiatimes.com Tags: FCNR deposits, GIFT City, leverage, NRIs, Singapore tax, withholding tax Canonical: https://indianopinion.org/singapore-withholding-tax-may-wipe-out-nri-fcnr-leverage-gains/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/singapore-withholding-tax-may-wipe-out-nri-fcnr-leverage-gains/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.