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.