Singapore-Guernsey Avoidance of Double Taxation Agreement comes into force on 26 November 2013

28 November 2013

The Agreement for the Avoidance of Double Taxation (DTA) between Singapore and Guernsey came into force on 26 November 2013 and will be effective from 1 January 2014.

The DTA includes the internationally agreed Standard for the exchange of information for tax purposes. The withholding tax rates under the treaty are as follows:

  • Dividends — Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State shall be taxable only in that other State. Since Singapore’s domestic withholding rate for dividends is nil, dividends will be exempt from withholding tax in Singapore.
  • Interest — 12%. Exempt from tax if paid to the relevant government authorities of the other Contracting State.
  • Royalties — 8%.

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

Source: Inland Revenue Authority of Singapore (IRAS)