Singapore-Hong Kong Double Taxation Agreement

Singapore-Hong Kong Double Taxation Agreement

DTA SINGAPORE Singapore has an extensive network of DTAs or other similar tax arrangements with most of the world`s major economies. These can be of the following types (note that in the case of some countries – for example.B. United Arab Emirates – Singapore has more than one type of agreement): double taxation can be avoided if foreign income is exempt from domestic tax. The exemption may be granted on all or part of the foreign income. Exemption of Dividends from Foreign Sources, Branch Profits and Income from Services – Section 13(8) of the Singapore Income Tax Act A Singapore-based company may qualify for a tax exemption for its dividends from abroad, profits from foreign branches and income from foreign services transferred to Singapore if the following conditions are met: The increasing integration of economies into the global market has led to an increase in income flows across borders. Due to conflicting tax policies between countries, this can lead to double taxation of certain types of income. Singapore not only ensures that such double taxation does not occur when a company acts for the benefit of or with Singapore, but it goes further by expressly exempting all foreign income of a Singaporean company from taxation in Singapore as long as it meets certain criteria. In most cases, it is easy to meet the conditions of this exemption. But in an unlikely situation where your company`s foreign income doesn`t meet it, Singapore`s double taxation agreements or its one-sided tax credits ensure that you don`t pay taxes on that income. An overview of the extensive bilateral tax treaty between Singapore and India to avoid double taxation of income. You will know more here. Beyond the scope of the agreement, it is also important to distinguish between signed and ratified agreements.

Singapore, for example, has signed, but not ratified, agreements with Belgium, Canada, Switzerland, Italy, Turkey, South Korea and Great Britain. To date, there are about 3,000 DTAs in the world, 100 of which are each year. DTAS aims to prevent the same income from being taxed by two or more states, thus promoting cross-border investment. Studies suggest that foreign direct investment in developing countries with which there is a “tax-saving” agreement is 1.4 to 2.4 times higher than usual. . . .


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