Singapore and Seychelles signed Double Taxation Agreement (DTA)

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DTA – Singapore and SeychellesDouble Taxation Agreements Double Taxation Agreements are conventions between two countries that aim to eliminate the double taxation of income or gains. They work by dividing the tax rights each country claims by its domestic laws over the same income and gains. Over 1,300 Double Taxation Conventions exist worldwide. Singapore has concluded four types of Double Taxation Agreements: – Comprehensive DTAs which cover all types of income – Limited DTAs which cover only income from shipping and /or air transport – Exchange of information arrangements which provide for the exchange of information for tax purposes – Agreements which are signed however not ratified therefore do not have the force of law Singapore and Seychelles signed DTA The Inland Revenue Authority of Singapore announced that Singapore and Seychelles had signed an Agreement for the Avoidance of Double Taxation (DTA) on 9 July 2014. The signing took place in New York between the Permanent Representatives of both countries to the United Nations, Ms Karen Tan for Singapore and Mrs Marie-Louise Potter for Seychelles. Agreement provides for the exchange of information for tax purposes based on the internationally agreed Standard. Amongst other provisions, the DTA lowers withholding taxes for businesses: for interest – 12%, for royalties – 8% and no withholding tax for dividends. The DTA is expected to enhance economic cooperation between two countries. The DTA will enter into force after ratification by both countries. Please contact us if you require specific information regarding the implementation of Double Taxation Agreement.