Singapore-Morocco Avoidance of Double Taxation Agreement comes into force on 15 January 2014

16 January 2014

The Income Tax (Singapore — Morocco) (Avoidance of Double Taxation Agreement) Order 2014 [No. S 25/2014] was published in the Government Gazette, Electronic Edition, on 15 January 2014.

Following this, the Agreement for the Avoidance of Double Taxation (DTA) between Singapore and Morocco will come into force on 15 January 2014 and will be effective from 1 January 2015.

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 may be taxed in that other State. Since Singapore’s domestic withholding rate for dividends is nil, dividends will be exempt from withholding tax in Singapore.
  • Interest — 10%. Exempt from tax if paid to relevant government authorities in the other Contracting State.
  • Royalties — 10%.

The full text of the DTA is available on the Inland Revenue Authority of Singapore website.

Source: Singapore Statues Online