Tag: Tax treaties

Singapore’s DTA with South Africa enter into force on 16 December 2016

On By taxsgIn Corporate Tax, Withholding Tax

24 December 2016

The Avoidance of Double Taxation (DTA) agreement between Singapore and South Africa was gazetted on 16 December 2016 and will take effect from 1 January 2017.

The DTA signed on 30 November 2015 includes the internationally agreed Standard for the exchange of information for tax purposes, provides greater clarity on taxing rights, minimises the scope of double taxation between the two nations and provides mutually beneficial favourable tax treatment for capital gains.

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 holds at least 10% of the capital of the company paying the dividends, or 10% of the gross amount of the dividends 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 — 7.5%. Exempted from tax if paid to the relevant government authorities of the other Contracting State.
  • Royalties — 5%.

The full text of the DTA 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’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)

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)

Singapore’s DTA with Ecuador enter into force on 18 December 2015

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

23 December 2015

The Avoidance of Double Taxation (DTA) agreement between Singapore and Equador was gazetted on 18 December 2015 and will take effect from 1 January 2016.

The DTA signed on 27 June 2013 includes the internationally agreed Standard for the exchange of information for tax purposes, 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%. 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 — 10%. Exempted from tax if paid between the relevant government authorities of the contracting states.
  • Royalties — 10%.

The full text of the Protocol to the DTA is available on the IRAS website.

Source: Inland Revenue Authority of Singapore (IRAS)