Tax Agreements with Poland and Austria enter into force

10 January 2014

The revised Agreement for the Avoidance of Double Taxation (DTA) between Singapore and Poland entered into force on 6 February 2014.

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 — 5%; and 0% if the recipient is the beneficial owner of the interest and that State, central bank or relevant government authorities and institutions.
  • Royalties — 2% if paid for the use of, or the right to use any industrial, commercial, or scientific equipment; and 5% in other cases.

In addition, an Exchange of Notes between Singapore and Austria in relation to the Exchange of Information Article in the standing Singapore — Austria DTA will enter into force on 1 May 2014.

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

Source: Inland Revenue Authority of Singapore