10 August 2017
Singapore and Nigeria signed an Agreement for the Avoidance of Double Taxation (DTA) on 2 August 2017. The DTA provides clarity on the taxing rights of both countries and minimizes the scope of double taxation between the two nations.
The withholding tax rates under the DTA are as follows:
• Dividends — 7.5%. Since Singapore’s domestic withholding rate for dividends is nil, dividends will be exempt from withholding tax in Singapore.
• Interest — 7.5%. Exempted from tax if paid between the relevant government authorities of the contracting states.
• Royalties — 7.5%.
The DTA is currently awaiting ratification and does not have the force of law. The full text of the DTA is available on the IRAS website.