Double Tax Treaties

Double taxation is a dreaded prospective for every business entity operating in two or more countries. No business house would want to pay taxes for the same chargeable income in more than one country. Hence, in order to deal with this problem Singapore government engages in double tax treaties with several countries, thereby helping the businesses in Singapore avoid double taxation.

Double taxation is the situation which compels you the tax payer, to pay tax to two or more countries on the same taxable income. Thus, in order to help the taxpayers of Singapore avoid double tax; Singapore has entered into the Double Tax Agreements (DTA) or double tax treaties with a number of countries. Let us look at the various types of income that come under DTA and the advantages associated with it.

What Kinds of Income Come Under Double Tax Treaties?

• Business profits;
• Income from air and shipping transport;
• Income from immovable properties;
• Interest;
• Dividends;
• Capital gains;
• Teachers and researchers;
• Students and trainees;
• Artists;
• Sportspersons;
• Associated enterprises;
• Royalties and fees for technical services;
• Independent personal services;
• Dependent personal services;
• Remuneration and pension in case of government service;
• Non-government pensions and annuities;
• Income of government; and
• Other income.

Benefits of Double Tax Agreement (DTA)

• DTA clearly states the jurisdictional authority on cross-border transactions.
• Coherently defines the taxing right of every nation.
• Prevents the evasion of international tax.
• You can claim for relief on the tax paid in a foreign country.

How to Avoid Double Tax in Singapore?

1. Tax Exemption Process: When your resident country agrees to completely exempt the income from tax.
2. Credit Process: When your country of residence agrees to give you credit for the income, which is later taxed at reduced rates.

Our services in relation to TaxationServices.com.sg encompass detailed information and assistance on the advantages of double tax treaties. In addition to this, we also help you avoid double tax, thereby making you save your profits.

Please feel free to contact us on +65 6536 0036 or drop in an email at info@taxationservices.com.sg

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