1 August 2012

Singapore’s revised agreement with Switzerland for the avoidance of double taxation (DTA) came into force on 1 August 2012 and will be effective on 1 January 2013.

The DTA includes the internationally agreed Standard for the exchange of information for tax purposes upon request, and provides greater clarity on taxing rights and minimises the scope of double taxation between the two nations. The withholding tax rates under the treaty are as follows:

• Dividends — 5% in the case of at least 10% shareholdings, and 15% in all other cases. Since Singapore’s domestic withholding rate for dividends is nil, dividends will be exempt from withholding tax in Singapore.
• Interest — 5%. Will be exempted from tax in certain cases e.g. if paid between government authorities or financial institutions in the contracting states.
• Royalties  — 5%.

The full text of the revised DTA with Switzerland is available on the IRAS website.

Source: Inland Revenue Authority of Singapore (IRAS)