INDIA SINGAPORE DTAA PDF

The Indian government and Singaporean government on December 30, , signed a protocol amending the India-Singapore tax treaty. The protocol introduces key changes to the treaty, such as:. The protocol will enter into force on April 1, , at the latest, even if either country encounters a procedural delay bringing the protocol into force under their respective domestic laws. Register today to hear the latest insights from the world of tax. Policy competition increases uncertainty, but it also creates opportunities.

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Our email newsletters bring you the latest news, trends and developments in Singapore from our team of experts; ensuring that you have all the information that you need at your fingertips to set up and succeed in Singapore. Note that the information provided is for general guidance only and not meant to replace professional advice.

A DTA between Singapore and another jurisdiction serves to prevent double taxation of income earned in one jurisdiction by a resident of the other jurisdiction. A DTA also makes clear the taxing rights between Singapore and her treaty partner on different types of income arising from cross-border economic activities between the two jurisdictions. The agreements also provide for reduction or exemption of tax on certain types of income. Income derived from the direct use of or letting or any other form of use of immovable property is subject to tax in the country in which the property is located.

This includes real-estate income of an enterprise as well as income from immovable property that is used for carrying out professional services. What constitutes immovable property depends upon the law of the country in which the property is situated. Note that ships and aircraft do not constitute immovable property.

Business income or profits of an enterprise are taxable in the country in which the enterprise is resident. However, if the enterprise carries out business in the other contracting country through a permanent establishment situated in that contracting country, then the profits or income derived from that permanent establishment alone will be liable to tax in the other contracting country.

Income derived by artistes i. However, if the activities are supported wholly or substantially from public funds of the other contracting country and not the country in which the activities are performed then such income will be taxed in that other contracting country.

Visiting teachers and researchers who are residents of one contracting country and are presently visiting the other contracting country solely for the purpose of teaching or research at an educational institution for a maximum period of up to two years will not be taxed in this other contracting country on any remuneration for such teaching or research. Note that this not apply to income from research, if such research is undertaken primarily for the private benefit of a specific person.

Where an enterprise of one contracting country participates directly or indirectly in the management, control or capital of an enterprise of the other contracting country, and conditions are imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, may be included in the profits of that enterprise and taxed accordingly.

Hawksford can partner with you as your bookkeeper, accountant, controller, business advisor, part-time CFO — or your entire Accounting and Finance department. You may find these Singapore business guides useful in helping you make your decision:. Find out how with GuideMeSingapore online.

Personal income tax rates in Singapore are one of the lowest in the world. Find out what you need to know about personal income tax in Singapore. Learn about taxes in Singapore including tax rates, income tax system, types of taxes and Singapore taxation in general. Estimate your annual Singapore taxes using our online calculator. Provides comparable taxes for other countries to show how Singapore stacks up to theirs's.

Let our experienced team help you with managing your accounting, tax and payroll issues. Sign up to receive the latest Singapore business updates Our email newsletters bring you the latest news, trends and developments in Singapore from our team of experts; ensuring that you have all the information that you need at your fingertips to set up and succeed in Singapore. Income from Immovable Property Taxed in the country in which the property is located.

Business Profits Taxed in the country in which the enterprise is present. May be taxed in recipient country as well. Tax exemptions apply under certain conditions see below. Employment Income Taxed in the country in which employment is exercised. Income of Artists and Sportsmen Taxed in the country in which the activities are performed.

Government Payments Remuneration of government officials is taxed by the relevant government unless the official is a permanent resident or citizen of the country in which the services are performed. Payments made to Visiting Students or Trainees Overseas payments made to visiting students or business apprentices for their education, training or maintenance are exempt from tax in the visiting country in which they are pursuing their education or training.

Payments made to Visiting Teachers or Researchers Payments made to visiting teachers or researchers for their teaching services or research activities are exempt from tax in the visiting country in which they are offering their teaching services or conducting research. Note however that the benefits of the Protocol do not extend to a shell company that claims to be a resident of either of the contracting countries.

In Singapore: Income Tax. Taxation of Income from Immovable Property Income derived from the direct use of or letting or any other form of use of immovable property is subject to tax in the country in which the property is located.

Taxation of Business Profits Business income or profits of an enterprise are taxable in the country in which the enterprise is resident. Taxation of Shipping and Air Transport Income Profits derived from the operation of ships or aircraft in international traffic by a resident of one contracting country is liable to tax in that country only i. Shipping and air-transport income includes: Profits from participation in a pool, a joint business, or an international operating agency engaged in the operation of ships or aircraft.

Interest on funds connected with the operation of ships or aircraft in international traffic. Profits derived from the transportation by sea or air of passengers, mail, livestock or goods carried on by the owners or lessees or charterers of the ships or aircraft including profits from: The sale of tickets for such transportation on behalf of other enterprises; The incidental lease of ships or aircraft used in such transportation; The use, maintenance or rental of containers including trailers and related equipment for the transport of containers in connection with such transportation; and Any other activity directly connected with such transportation.

Taxation of Dividend Income Dividends paid by a company that is a resident of one contracting country to a resident of the other contracting country may be taxed in that other country i. Since there is no dividend tax in Singapore, Indian-resident shareholders who derive dividends from a Singapore-resident company or a Malaysian-resident company that has a source of profit in Singapore, are exempt from Singapore tax on the dividend income.

Note that the above provisions relating to dividend income do not apply if the recipient of the dividend income: a has a permanent establishment in the country in which the company paying the dividend is resident or b performs independent personal services from a fixed base that is situated in the country in which the company paying the dividend is resident, and that the holding giving rise to the dividends is effectively connected with that permanent establishment or fixed base.

In such cases, the dividend income will be treated as income of the permanent establishment or as income derived from the performance of personal services and will be taxed accordingly. Dividend income refers to income from shares or other corporate rights that is subject to the same taxation treatment as income from shares. Taxation of Interest Income Interest arising in a contracting country and paid to a resident of the other contracting country may be subject to taxation in the recipient country.

Note that the above provisions relating to interest income do not apply if the recipient of the interest income: a has a permanent establishment in the country in which the interest income arises or b performs independent personal services from a fixed base that is situated in the country in which the interest income arises, and that the indebtedness giving rise to the interest is effectively connected with that permanent establishment or fixed base.

In such cases, the interest income will be treated as income of the permanent establishment or as income derived from the performance of personal services and will be taxed accordingly. If due to a special relationship that exists between the borrower and lender, the interest paid exceeds an amount which both the parties might have agreed upon in the absence of such a relationship, the above tax rate will apply only to this agreed upon amount and not the excess amount paid.

Interest income refers to income from government securities; income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures; or any other debt-claims whether or not secured by mortgage. Taxation of Royalties Royalty income arising in a contracting country and paid to a resident of the other contracting country may be subject to taxation in the recipient country.

It does not include payments received for sharing technical knowledge, experience, skill, know-how or processes. Note that the above provisions relating to royalty income do not apply if the recipient of the royalty income: a has a permanent establishment in the country in which the royalty income arises or b performs independent personal services from a fixed base that is situated in the country in which the royalty income arises, and that the right, property or contract in respect of which the royalties are paid is effectively connected with that permanent establishment or fixed base.

In such cases, the royalty income will be treated as income of the permanent establishment or as income derived from the performance of personal services and will be taxed accordingly. If due to a special relationship that exists between the payer and the recipient of the royalties, the amount of royalties paid exceeds an amount which both the parties might have agreed upon in the absence of such a relationship, the above tax rate will apply only to this agreed upon amount and not the excess amount paid.

Taxation of Fees for Technical Services Fees for technical services arising in a contracting country and paid to a resident of the other contracting country may be subject to taxation in the recipient country. Note that the above provisions relating to technical services fees do not apply if the recipient of the fees: a has a permanent establishment in the country in which the fees arises or b performs independent personal services from a fixed base that is situated in the country in which the fees arises, and that the right, property or contract in respect of which the fees are paid is effectively connected with that permanent establishment or fixed base.

In such cases, the fees will be treated as income of the permanent establishment or as income derived from the performance of personal services and will be taxed accordingly.

If due to a special relationship that exists between the payer and the recipient of the fees, the amount of fees paid exceeds an amount which both the parties might have agreed upon in the absence of such a relationship, the above tax rate will apply only to this agreed upon amount and not the excess amount paid. Fees for technical services includes payments made for services of a managerial, technical or consultancy nature.

Taxation of Professional Services Income Income derived by the resident of one contracting country in relation to personal or professional services is subject to tax only in that contracting country except under the following circumstances, in which case the income is liable to taxation in the other contracting country as well: If the person regularly performs activities from a fixed base in the other contracting country; in such cases only that portion of income that is attributable to the fixed base is liable to taxation in the other contracting country.

If the person stays in the other contracting country for 90 days or more in a given fiscal year; in such cases only that portion of income derived from activities performed in that other contracting country may be taxed in that other contracting country.

Professional services includes independent scientific, literary, artistic, educational or teaching activities, as well as the independent activities of physicians, surgeons, lawyers, engineers, architects, dentists and accountants.

Taxation of Employment Income Salaries, wages and other similar remuneration in respect of employment will be subject to tax in the country in which the employment is exercised. The remuneration is paid by, or on behalf of, an employer who is not a resident of the country in which the employment is exercised. The remuneration is not borne by a permanent establishment or a fixed base in the country in which the employment is exercised.

The remuneration is derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic. Taxation of Government Service Remuneration and Pension Remuneration and pension paid by the government of one contracting country to any individual for services rendered on behalf of that government is taxable in that contracting country only, except in cases where the individual is a resident and a citizen of the other contracting country.

In other words, remuneration and pension paid by the Government of India to any individual for services rendered on behalf of the Indian Government is exempt Singapore tax, except in cases where the individual is resident in Singapore and is not a citizen of India.

Similarly, remuneration and pension paid by the Government of Singapore to any individual for services rendered on behalf of the Singapore Government is exempt from tax in India, except in cases where the individual is resident in India and is not a Singapore citizen. Note that the above provisions do not apply to income from services rendered in connection with a Government business enterprise i.

Pension refers to a periodic payment made for past services rendered or compensation for injuries received in the course of performance of services. Any amount received as a grant, allowance, or award for the purpose of study, research or training.

Taxation of Payments Made to Teachers and Researchers Visiting teachers and researchers who are residents of one contracting country and are presently visiting the other contracting country solely for the purpose of teaching or research at an educational institution for a maximum period of up to two years will not be taxed in this other contracting country on any remuneration for such teaching or research.

Taxation of Profits of Associated Enterprises Where an enterprise of one contracting country participates directly or indirectly in the management, control or capital of an enterprise of the other contracting country, and conditions are imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, may be included in the profits of that enterprise and taxed accordingly.

Taxation of Capital Gains Gains derived by a resident of one contracting country from the alienation of immovable property that is situated in the other contracting country may be taxed in that other country. Gains derived by an enterprise or resident of one contracting country from the alienation of movable property of its permanent establishment or fixed base that is situated in the other contracting country may be taxed in that other contracting country.

Note: Singapore has abolished capital gains tax. In Singapore: Singapore offers its residents tax credit relief for double taxation of income. In other words, Indian tax paid in respect of income from sources within India shall be allowed as a credit against Singapore tax payable in respect of that income. Exchange of Information The tax authorities of the contracting countries shall exchange tax information as and when necessary.

The information exchanged will remain confidential and will only be disclosed to persons including a court or administrative body concerned with the assessment, collection,e enforcement or prosecution in respect of the taxes covered by the DTA.

There will be no disclosure of any trade, business, industrial or professional secret or trade process. Need support with your taxes? Find out how Hawksford can help.

More questions? Let us guide you further You may find these Singapore business guides useful in helping you make your decision:. Contact us. Taxed in the country in which employment is exercised. Taxed in the country in which the activities are performed. Remuneration of government officials is taxed by the relevant government unless the official is a permanent resident or citizen of the country in which the services are performed.

Overseas payments made to visiting students or business apprentices for their education, training or maintenance are exempt from tax in the visiting country in which they are pursuing their education or training. Payments made to visiting teachers or researchers for their teaching services or research activities are exempt from tax in the visiting country in which they are offering their teaching services or conducting research.

ALLAN KRAAYVANGER PDF

India notifies amended tax treaty with Singapore

View: Go for nuanced tweaking of taxes, not outright tax holiday. What is an income-tax tax slab? Government identifies sectors for tax sops. All rights reserved. For reprint rights: Times Syndication Service. Politics and Nation.

JARED TENDLER PDF

Revisiting the Singapore-India Double Taxation Avoidance Agreement

Please contact customerservices lexology. As per that Article if the exemption under the treaty is qua an income which is taxable in other state only on receipt of income in that state then the exemption shall be allowed only when remittance of such income has been made. The dispute in this case really centered around whether the income in question was taxable in Singapore on receipt basis or on accrual basis. India, the provisions of Article 24 restrict exemption of such capital gains to the extent of repatriation of such income to the other country i. In fact, there was no such repatriation of said income reflected in the bank statement furnished. The Assessing authority therefore disallowed the exemption claimed by assessee under Article 13 4 of the India-Singapore DTAA and treated the capital gains as taxable in India as per the draft assessment order and the Dispute Resolution Panel upheld the same. Any other approach could result in a situation in which an income, which is not subject matter of taxation in the residence jurisdiction, will anyway be available for treaty protection in the source country.

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