20 January 2015

Singapore and France signed a revised Agreement for the Avoidance of Double Taxation (DTA) on 15 January 2015.

Amongst the changes to enhance trade flows are lower withholding tax rates for dividends and anti-abuse provisions. The revised withholding tax rates under the treaty are as follows:

• Dividends — 5% of at least 10% shareholdings and, 15% in all other cases. However, since Singapore’s domestic withholding rate for dividends is nil, dividends will be exempt from withholding tax in Singapore.
• Interest — 10%.
• Royalties – taxed according to the law of the Contracting State in which they arise.

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)