20 January 2015

On 15 January 2015, Singapore and Uruguay signed an agreement for the avoidance of double taxation (DTA).

The DTA includes the internationally agreed Standard for the exchange of information for tax purposes upon request, 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 — 5% in the case of at least 10% shareholdings, and 10% in all other cases. Since Singapore’s domestic withholding rate for dividends is nil, dividends will be exempt from withholding tax in Singapore.
• Interest — 10%.
• Royalties  — 5% of the gross amount of the royalties for the use of, or the right to use, any copyright of literary, artistic or scientific work, including cinematograph films, or films or tapes used for radio or television broadcasting; 10% in all other cases.

The DTA has yet to be ratified and therefore does not have the force of law. The full text of the DTA is available on the IRAS website.

Source: Inland Revenue Authority of Singapore (IRAS)