1 July 2016
Singapore and France’s revised Agreement for the Avoidance of Double Taxation (DTA) came into force on 1 June 2016, and will take effect from 1 January 2017.
Amongst the changes to enhance trade flows are lower withholding tax rates for dividends and anti-abuse provisions. The withholding tax rates under the treaty are as follows:
- Dividends — 5% of the gross amount of the dividends if the beneficial owner is a company which owns directly or indirectly at least 10% of the share capital of the company paying the dividends; 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 – 0%.
The full text of the DTA is available on the IRAS website.
Source: Inland Revenue Authority of Singapore (IRAS)