23 December 2015
The Avoidance of Double Taxation (DTA) agreement between Singapore and Equador was gazetted on 18 December 2015 and will take effect from 1 January 2016.
The DTA signed on 27 June 2013 includes the internationally agreed Standard for the exchange of information for tax purposes, 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%. 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 — 10%. Exempted from tax if paid between the relevant government authorities of the contracting states.
- Royalties — 10%.
The full text of the Protocol to the DTA is available on the IRAS website.
Source: Inland Revenue Authority of Singapore (IRAS)