Singapore Company Incorporation with Paul Hype Page
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A double tax agreement (DTA) is a type of tax treaty which provides tax relief from double taxation which would otherwise be imposed by other countries' tax authorities.

Purpose of Double Tax Agreements

Purpose of Double Tax Agreements

DTAs should eliminate the resulting double taxation by either having the income: Taxed in only one of the two relevant countries , eg business profits, or Subjected to a lower (preferential) tax rate in one of the two relevant countries as compared to the domestic tax rate.

Conditions to Claim for Tax Relief under Singapore DTAs:

  • the claimant must be a tax resident in Singapore
  • the income must be such that it is subject to tax in Singapore
  • the income must be received or deemed to be received in Singapore, and
  • the tax has been paid or is payable on the income in the foreign country.

Purpose of Double Tax Agreements FAQs

Claiming Double Tax Relief – What is double tax relief (DTR)?2020-06-24T12:25:46+08:00

Foreign income earned by a Singapore company may be subjected to taxation twice. Once in the foreign country, and a second time when the foreign income is remitted into Singapore.

A double tax relief (DTR) is the credit relief provided for under an Avoidance of Double Taxation Agreement (DTA) to reduce this double taxation. A DTR is granted by allowing the Singapore tax resident company to claim a credit for the amount of tax paid in the foreign country against the Singapore tax that is payable on the same income.

A company is a tax resident of Singapore if the control and management of its business is exercised in Singapore.

What is an Avoidance of Double Tax Agreement?2020-06-24T12:25:28+08:00

An Avoidance of Double Taxation Agreement (DTA) is an agreement signed between Singapore and another country (a treaty country) which serves to relieve double taxation of income that is earned in one country by a resident of the other country.

It makes clear the taxing rights between Singapore and her treaty partner on the different types of income arising from cross-border economic activities between the two countries.

The DTA also provides for reduction or exemption of tax on certain types of income.

Only Singapore tax residents and tax residents of the treaty country can enjoy the benefits of a DTA. To find out who are our treaty partners, please refer to the List of Avoidance of Double Tax Agreements.

What is the procedure of taxing a company(both foreign and local) in Singapore?2020-06-24T12:24:31+08:00

A company, regardless of whether it is a local or a foreign company, will be taxed on its:

  • income accruing in or derived from Singapore; or
  • income received in Singapore from outside Singapore
2021-02-05T09:23:33+08:00January 7, 2015|Comments Off on Purpose of Double Tax Agreements