Seychelles-Singapore DTA comes into effect

Posted in Double Taxation Agreements, International relations at 2:22 pm by Robert Klien

A double tax agreement (DTA) between the Seychelles and Singapore became effective on January 1, 2016, establishing a beneficial framework to encourage cross-border investment and trade.

The agreement entered into force on December 18, 2015, after being signed in July 2014. The documents provides, on certain conditions, that cross-border dividends income will be exempt from tax at source.

It also caps tax on interest income in the source country at 12%, providing that the recipient is the beneficial owner of the interest income and resident in the other contracting state. In some circumstances interest income will exempt from tax at source. Withholding tax on royalties income at source will be capped at 8% or such income will be exempt.

According to the treaty’s provisions on the creation of a permanent establishment, a building site, a construction, assembly, or installation project; or supervisory activities in connection therewith will be deemed to be a permanent establishment if the project or activities last more than 12 months.

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