Tag: Agreement for the Avoidance of Double Taxation (DTA)

Singapore’s DTA with Laos comes into force

On By taxsgIn Corporate Tax, Tax Treaties, Withholding Tax

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

On By taxsgIn Latest Tax News, Tax Treaties, Withholding Tax

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 and Cambodia sign tax treaty

On By taxsgIn Corporate Tax, Latest Tax News, Tax Treaties, Withholding Tax

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)

Second protocol to Singapore and UAE DTA comes into force

On By taxsgIn Corporate Tax, Latest Tax News, Tax Treaties, Withholding Tax

22 March 2016

On 16 March 2016, the Second Protocol amending the standing Agreement for the avoidance of double taxation (DTA) between Singapore and the United Arab Emirates came into force. Its provisions will take effect from 1 January 2017.

The revised terms include longer threshold periods to ascertain the presence of a permanent establishment and lower withholding tax rates for dividends and interest income.

The revised rates under the treaty are as follows:

  • Dividends – 0% from 5%. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State shall be taxable only in that other State. This does shall not affect the taxation of the company in respect of the profits out of which the dividends are paid. “Dividends” as used in the Article means income from shares, or other rights, not being debt-claims, participating in profits, as well as income from other corporate rights which is subjected to the same taxation treatment as income from shares by the laws of the State of which the company making the distribution is a resident.
  • Interest income – 0% from 7%. Interest arising in a Contracting State and paid to a resident of the other Contracting State shall be taxable only in that other State. “Interest” as used in the Article means income from debt-claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor’s profits, and in particular, income from government securities and income from bonds or debentures including premiums and prizes attaching to such securities, bonds or debentures, as well as income assimilated to income from money lent by the taxation law of the State in which the income arises, including interest on deferred payment sales. Penalty charges for late payment shall not be regarded as interest for the purpose of the Article.

The original DTA was signed on 1 December 1995.

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

Source: IRAS

 

Singapore and San Marino sign DTA

On By taxsgIn Latest Tax News, Withholding Tax

16 December 2013

Singapore and San Marino signed an Agreement for the Avoidance of Double Taxation (DTA) on 11 December 2013.

The DTA includes the internationally agreed Standard for the exchange of information for tax purposes.

The withholding tax rates under the DTA are as follows:

  • Dividends — Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State shall be taxable only in that other State. Since Singapore’s domestic withholding rate for dividends is nil, dividends will be exempt from withholding tax in Singapore.
  • Interest — 12%. Exempted from tax if paid to the relevant government authorities of the other Contracting State.
  • Royalties — 8%.

The DTA will enter into force upon its ratification by both countries.  The full text of the DTA is available on the IRAS website.

Source: Inland Revenue Authority of Singapore