Double Taxation Agreement Hong Kong Singapore
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Double taxation can be avoided if foreign income is exempt from national tax. The exemption may be granted for all or part of the foreign income. Exemption from dividends from foreign sources, profits and revenues from services – Section 13 (8) of the Singapore Income Tax Act A Singapore resident company may benefit from tax exemptions for dividends from foreign sources, profits from foreign branches and outsourcing revenues transferred to Singapore when the following conditions are met: in many cases, several DTA agreements with different application areas are signed at different times. In addition to the scope of the agreement, it is also essential to distinguish between signed agreements and ratified agreements. Singapore, for example, has signed agreements with Belgium, Canada, Switzerland, Italy, Turkey, South Korea and the United Kingdom, among others, but has not ratified it. Over the years, Singapore has signed several double taxation agreements. While some of the city-state treaties provided for the abolition of double taxation, other conventions were limited to certain incomes. The agreement with the Hong Kong Special Administrative Region is part of Singapore`s limited tax arrangements. Our training experts in Singapore present the main taxes covered by the 2005 Singapore-Hong Kong tax agreement: foreign income transferred to Singapore is no longer taxable to individuals, double taxation (provided for by tax treaties) or the unilateral tax credit (provided for by national tax legislation) is no longer relevant.
It is therefore unlikely that a Singapore-based company will ever be subject to double taxation. This is an important reason to set up your business in Singapore. An overview of the comprehensive bilateral tax treaty between Singapore and India to avoid double taxation of income. Find out more here. Other similar taxes are also covered by the agreement. In addition, any changes to the tax system of the contracting states are notified to the other party if the amendment somehow relates to the provisions of the limited-tax financial agreement. Our team of founding agents can help Hong Kong investors open a business in Singapore. A Singapore resident can avoid double taxation even without ADB with a given country.
This is because Singapore`s domestic legislation (as explained above) exempts from foreign countries most types of income from foreign sources (including dividends, foreign branch profits and outsourcing revenues) that were collected in Singapore on June 1, 2003 or after June 1, 2003, if certain conditions are met.