Protocol to Singapore’s DTA with Russia comes into force

6 December 2016

On 25 November 2016, the Protocol amending the standing Agreement for the avoidance of double taxation (DTA) between Singapore and the Russia came into force. Its provisions will take effect from 1 January 2017.

Amongst other changes, the Protocol lengthens the threshold period for determining the presence of a permanent establishment and lowers the withholding tax rates for dividends, interest and royalties.

The withholding tax rates under the revised treaty are as follows:

  • Dividends —

(a) (i) 5% of the gross amount of the dividends if the beneficial owner of the dividends is a company which holds directly at least 15% of the capital of the company paying the dividends, (ii) 10% of the gross amount of the dividends in all other cases;

(b) in the case of distributions paid by the real estate investment fund: 10% of the gross amount of the distributions.

  • Royalties — 5% of the gross amount of the royalties
  • Interest — interest arising in a Contracting State and paid to a resident of the other Contracting State shall be taxable only in that other State.

The original DTA was signed on 9 September 2002.

The full text of the Protocol is available on the IRAS’s website.

Source: IRAS

Singapore’s DTA with Laos comes into force

17 November 2016

Singapore and Lao People’s Democratic Republic’s revised Agreement for the Avoidance of Double Taxation (DTA) came into force on 11 November 2016, and will take effect from 1 January 2017.

The DTA will encourage and facilitate cross-border trade and investment between Singapore and Laos by providing greater clarity on taxing rights and minimising the scope of double taxation between the two countries. Amongst other provisions, the DTA provides for lower withholding tax rates on cross-border payments of dividends, interest and royalties.

The withholding tax rates under the DTA 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) 8% of the gross amount of the dividends in all other cases.

  • Interest — 5%. (Exempted from tax if paid to the government of the other Contracting State).
  • Royalties — 5%.

The full text is available on the IRAS website.

Source: Inland Revenue Authority of Singapore (IRAS)

Singapore and Ethiopia sign tax treaty

28 August 2016

Singapore and Ethiopia signed an Agreement for the Avoidance of Double Taxation (DTA) on 24 August 2016. The DTA includes the internationally agreed Standard for the exchange of information for tax purposes.

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 DTA is awaiting ratification and does not have the force of law. The full text of the DTA is available on the IRAS website.

Source: Inland Revenue Authority of Singapore (IRAS)

Singapore’s DTA with France comes into force

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)

Singapore and Cambodia sign tax treaty

26 May 2016

Singapore and Cambodia signed an Agreement for the Avoidance of Double Taxation (DTA) on 20 May 2016. The DTA includes the internationally agreed Standard for the exchange of information for tax purposes.

The withholding tax rates under the treaty are as follows:

  • Dividends — 10%.  Since Singapore’s domestic withholding rate for dividends is nil, dividends will be exempt from withholding tax in Singapore.
  • Interest — 10%. Exempted from tax if paid between the relevant government authorities of the contracting states.
  • Royalties — 10%.

The DTA is awaiting ratification and does not have the force of law. The full text of the DTA is available on the IRAS website.

Source: Inland Revenue Authority of Singapore (IRAS)