The revised Avoidance of Double Taxation Agreement (DTA) signed by Singapore and the Democratic Socialist Republic of Sri Lanka on 3 April 2014, had entered into force on 31 December 2017.
The current withholding tax rates under the treaty are as follows:
- Dividends — 7.5% or 10%. However, since Singapore’s domestic withholding rate for dividends is nil, dividends will be exempt from withholding tax in Singapore.
- Interest — 10%. Exempted from tax in a Contracting State if the interest arises in the Contracting State and is paid to the government of the other Contracting State. Exempted from tax in the other State if the interest is derived and beneficially owned by a banking or financial institution of a Contracting State.
- Royalties — 10%.
The full text of the agreement is available on the Inland Revenue Authority of Singapore’s (IRAS) website.
Source: Inland Revenue Authority of Singapore