The Avoidance of Double Taxation Agreement (DTA) signed by Singapore and the Federal Democratic Republic of Ethiopia on 24 August 2016, had entered into force on 8 December 2017.
The withholding tax rates under the treaty are as follows:
- Dividends — 5%. (Since Singapore’s domestic withholding rate for dividends is nil, dividends will be exempt from withholding tax in Singapore.)
- Interest — 5%. (Exempted from tax if paid between the relevant government authorities of the contracting states.)
- Royalties — 5%.
The full text of the agreement is available on the Inland Revenue Authority of Singapore’s (IRAS) website.