28 April 2014

Singapore’s agreement with Barbados for the avoidance of double taxation (DTA) came into force on 25 April 2014 and will be effective from 1 January 2015.

The DTA includes the internationally agreed Standard for the exchange of information for tax 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  — 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. However, 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 government of the other Contracting State.
• Royalties — 8%.

For the full text of the DTA, please refer to the IRAS website.

Source: Inland Revenue Authority of Singapore (IRAS) and Government Gazette