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A double tax treaty is an important part of international taxation. Singapore is involved in tax treaties with various foreign countries. Singapore tax authorities closely monitor these tax treaties.

SG Double Tax Treaty

Find out more about the Double Tax Treaty in the following links provided. Here we have provided you with necessary resources to know all the information pertaining to Double Taxation in Singapore.

Singapore Double Tax Treaty FAQs

How to calculate DTR?2020-06-24T12:35:01+08:00

The amount of DTR is dependent on the nature of income and subject to the specific terms and conditions as specified in the DTA with the relevant treaty country.

DTR

= Lower of:

  • the actual amount of foreign tax paid; or
  • the amount of Singapore tax attributable to the foreign income (net of expenses)

For trade income

If the company has a permanent establishment (PE) overseas and the income is derived through that PE, the income would generally be taxed overseas. A DTR would be granted only if the income is also taxed in Singapore.

For passive income (e.g. interest, dividend etc)

Passive income derived from outside Singapore will be taxed in Singapore in the year of remittance.

Claiming Double Tax Relief – What is double tax relief (DTR)?2020-06-24T12:32:59+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.

2021-02-04T18:22:21+08:00January 7, 2015|Comments Off on Singapore Double Tax Treaty
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