Singapore’s double taxation agreement (DTA) with Saudi Arabia, which was signed on May 3, 2010, will enter into force on July 1 this year.
The agreement is Singapore’s 66th DTA, and it is expected to encourage and facilitate cross-border trade and investment between Singapore and Saudi Arabia, by providing greater clarity on taxing rights and minimising the scope of double taxation between the two countries.
Amongst other provisions, the DTA includes the internationally-agreed Organisation for Economic Cooperation and Development standard for the exchange of information upon request for tax purposes; provides for lower withholding taxes on dividends, interest and royalties; places rules on the taxation of capital gains; and sets out permanent establishment rules for businesses.
It applies to all taxes on income in both countries, and also provides for tax exemption in the country of source on profits derived from the operations of ships or aircraft in international traffic.
The agreement is Singapore’s 66th DTA, and it is expected to encourage and facilitate cross-border trade and investment between Singapore and Saudi Arabia, by providing greater clarity on taxing rights and minimising the scope of double taxation between the two countries.
Amongst other provisions, the DTA includes the internationally-agreed Organisation for Economic Cooperation and Development standard for the exchange of information upon request for tax purposes; provides for lower withholding taxes on dividends, interest and royalties; places rules on the taxation of capital gains; and sets out permanent establishment rules for businesses.
It applies to all taxes on income in both countries, and also provides for tax exemption in the country of source on profits derived from the operations of ships or aircraft in international traffic.
