7 January 2016
The Avoidance of Double Taxation (DTA) agreement between Singapore and Luxembourg has come into effect on 28 December 2015 and will take effect from 1 January 2016.
The DTA signed on 9 October 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 revised withholding tax rates under the treaty are as follows:
- Dividends —
(a) 5% of the gross amount of the dividends if the beneficial owner is a company (other than a partnership) which holds directly at least 10% of the capital of the company paying the dividends;
(b) 10% of the gross amount of the dividends in all other cases.
- Interest — 10%. Interest paid by a resident of a Contracting State to a resident of the other Contracting State shall be taxable only in that other State.
- Royalties — 7%.
The full text of the DTA is available on the IRAS website.