Tag: DTA

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’s DTA with France comes into force

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

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)

IRAS updates website on application for Certificate of Residence (COR)

On By taxsgIn Corporate Tax, Latest Tax News

27 May 2015

The Inland Revenue Authority of Singapore (IRAS) has updated its website on the procedures to obtain the Certificate of Residence (COR) for Singapore tax resident companies applying for treaty benefits under the Avoidance of Double Tax Agreement (DTA).

Singapore tax resident companies applying for treaty benefits may be required to submit a tax reclaim form issued by the tax treaty partner. IRAS had stated that the tax reclaim form may require certification by the Singapore Competent Authority that certain conditions such as Singapore tax residency status is met before it can be submitted to the foreign tax authority.

However, companies not claiming benefits under the DTA but who wish to obtain a COR may write to IRAS on the company’s letterhead with the following details:

  • Name and Unique Entity Number (UEN) of the company
  • Reason(s) for requesting the letter of residence
  • Year of Assessment for which the letter is required.

With effect from October 2015, all approved COR will only be mailed to the company’s registered address, with a duplicate copy available in mytax.iras.gov.sg for print or download.

Full details are available on the IRAS website.

Source: IRAS

Singapore and France revise DTA

On By taxsgIn Latest Tax News, Tax Treaties

20 January 2015

Singapore and France signed a revised Agreement for the Avoidance of Double Taxation (DTA) on 15 January 2015.

Amongst the changes to enhance trade flows are lower withholding tax rates for dividends and anti-abuse provisions. The revised withholding tax rates under the treaty are as follows:

  • Dividends — 5% of at least 10% shareholdings and, 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 – taxed according to the law of the Contracting State in which they arise.

The DTA has yet to be ratified and therefore 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 Uruguay sign DTA

On By taxsgIn Latest Tax News, Tax Treaties

20 January 2015

On 15 January 2015, Singapore and Uruguay signed an agreement for the avoidance of double taxation (DTA).

The DTA includes the internationally agreed Standard for the exchange of information for tax purposes upon request, and provides greater clarity on taxing rights and minimises the scope of double taxation between the two nations. The withholding tax rates under the treaty are as follows:

  • Dividends — 5% in the case of at least 10% shareholdings, and 10% in all other cases. Since Singapore’s domestic withholding rate for dividends is nil, dividends will be exempt from withholding tax in Singapore.
  • Interest — 10%.
  • Royalties  — 5% of the gross amount of the royalties for the use of, or the right to use, any copyright of literary, artistic or scientific work, including cinematograph films, or films or tapes used for radio or television broadcasting; 10% in all other cases.

The DTA has yet to be ratified and therefore 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)