The government of Singapore stated that the process of automatic exchange of tax information with 61 states has been launched within the framework of the program to avoid tax evasion and financial crimes in the territory of the country. Data exchange will take place in accordance with the CRS - Common Reporting Standard of the OECD for the exchange of tax information. This standard assumes that an automatic exchange of information occurs between the territories that have agreed on the exchange of data in the automatic mode.
The use of appropriate mechanisms and systems for collecting information on financial accounts is regulated by the Common Reporting Standard of the OECD for the exchange of tax information (CRS Regulations), which came into effect at the beginning of this year. The process of exchange of information with most states started on January 1.
The government has approved the exchange of tax and financial information with the following jurisdictions:Australia
On July 1 the first tariff cuts were implemented under the expanded Information Technology Agreement (ITA), which was agreed at the World Trade Organization (WTO) Ministerial Conference in Nairobi in December 2015.The original ITA was concluded in 1996. The new agreement will eliminate tariffs on an additional 201 technology products. Products covered by the new ITA include video games consoles, GPS navigation systems, magnetic resonance imaging machines, telecommunications satellites, touch screens, and video cameras. It has been estimated that the products involved have a global export value of some USD1.3 trillion per year.Negotiations were conducted by over 50 WTO signatory members, but all members will benefit from the agreement as they will all enjoy duty-free access to the markets of the members eliminating tariffs on these products. It has been said that the tariff cuts will increase annual global gross domestic product by around USD190bn.The first tariff cuts were implemented on July 1, 2016, with successive reductions due to follow in up to seven years. Some countries, such as Singapore, have immediately eliminated all tariffs, but others, including the European...
Ddouble taxation avoidance agreement between this countries entered into force on June 1,2016Under this agreement tax withholding capped 15 percent in general and 5 percent where the beneficial owners is a companies owned at least 10 percent from all capital of company. Withholding will arise rate of 10 percent.Then, agreement provides that royalties arising in beneficial company will be taxable only in that country.However royalties had getting like award for using or taking rights for using any copyrights of literary or artistic work, including cinematograph films and tapes for television or broadcasting, or for information concerning commercial experience may be taxed in accordance with the law of the country in which they arise.Treaty also includes provisions to prevent treaty abuse. Also exchange tax information between tax administration of both countries.The new provisions of this agreements will be enter into force from January 1, 2017.
Author: Olena Kutova
senior lawyer of the Finance Business Service company
Singapore and Cambodia signed an agreement on avoidance of double taxation with a view to increasing cross-border trade and investment between the two countries.The agreement clarifies the rights in relation to tax in both countries on all forms of income streams arising from cross-border business activity but also ensures that the income will not be taxed twice. Under the deal tax on dividends, interest and royalties will depend on the maximum rate of 10 percent.Some of the interest payment would be released.The agreement also includes provisions for the resolution of contractual disputes through the process of mutual agreement and provides for the exchange of information in tax matters.The Treaty will enter into force after the completion of the domestic ratification procedures in both countries.
Author: Olena Kutova
senior lawyer of the Finance Business Service company
Singapore’s Minister for Finance delivered the 2016 budget statement on 24 March 2016. The budget’s goals include transformation of the economy through enterprise and innovation. A number of measures would benefit small and medium-sized enterprises, including an enhancement of the corporate income tax rebate. The relevant tax proposals that would affect businesses also include changes to tax incentives (including the expansion and extension of several incentives) and measures affecting intellectual property rights.An automation support package would be introduced to support companies’ efforts to automate, increase productivity, scale up and expand overseas. It would offer a 100% investment allowance for qualifying capital expenditure of up to SGD 10 million per project, and grants of up to SGD 1 million and enhanced financing support also would be available. It is unclear if all the proposed benefits could be applied at the same time, and the effective date for the measures is yet to be announced.No changes are proposed to the corporate income tax rate (17% with a partial tax exemption on a company’s first SGD 300,000 of normal chargeable income), but the corporate...
On March 24, 2016 was released a budget that includes measures to expand and strengthen the financial sector, as well as tax incentives for international trade.It will be extended by a double tax deduction for the Internationalization Scheme for four years from 1 April 2016 to 31 March 2020. This will cover the cost of qualifying activities such as participating in the development of foreign business and investment research.The budget also proposes not to impose the company's profits from the sale of its equity investment until 31 May 2022, which will help to provide certainty for the advance of corporate restructuring.The Minister also proposed to extend the Finance and Treasury scheme until 31 March 2021 where since March 25, 2016 includes the following enhancements took effect:Concession rate has been reduced to eight percent.
In order to qualify for the preferential terms of the tax rate will be allowed to receive funds indirectly from authorized offices and associates.
The amount of exemptions granted in accordance with Article 13 (4). The volume will be expanded to cover the interest payments on deposits, provided that the funds are used for qualifying activities...
The second protocol to the double tax agreement between Singapore and the United Arab Emirates, entered into force on 16 March 2016 and will be effective from January 1, 2017, reducing tax rates and changing the rules of the permanent establishment (PE).The protocol, which was signed in October 2014, revises the conditions for the inclusion of longer periods of thresholds for determining the existence of a permanent establishment.For example, the report claims that the PE occurs where there is a building site; construction, assembly or installation project; or supervisory activities in connection with this lasts for more than twelve months, in contrast to the threshold of nine months. In addition, under the revised protocol, provision of services, including consultancy services, will be a PE if such activities continued throughout the aggregation of 300 days in any period of twelve months, compared to six months. The agreement also upgrades the position of the exchange of tax information.The protocol removes withholding tax on interest at source, provided that the interest income may be taxed only in the country of the recipient. Provisions establishing five percent tax...