16 December 2013

Singapore and San Marino signed an Agreement for the Avoidance of Double Taxation (DTA) on 11 December 2013.

The DTA includes the internationally agreed Standard for the exchange of information for tax purposes.

The withholding tax rates under the DTA 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%. Exempted from tax if paid to the relevant government authorities of the other Contracting State.
• Royalties — 8%.

The DTA will enter into force upon its ratification by both countries.  The full text of the DTA is available on the IRAS website.

Source: Inland Revenue Authority of Singapore