Seychelles, Singapore Sign Double Tax Pact
by Lorys Charalambous, Lowtax.net, Cyprus
14 July, 2014
On July 9, 2014, Singapore and Seychelles signed a double taxation agreement (DTA), which cuts withholding taxes and incorporates the internationally-agreed standard for the exchange of information for tax purposes.
The signing ceremony took place in New York between the Permanent Representatives of both countries to the United Nations, Karen Tan for Singapore and Marie-Louise Potter for Seychelles.
The DTA allocates taxing rights between the two jurisdictions with regard to business income, income from shipping and air transportation, and provides for tax relief on different types of passive income. For example, the withholding tax on interest income is to be capped at 12 percent. Withholding tax on royalties income is capped at 8 percent if the beneficial owner of the royalties is a resident of the other state.
The agreement will enter into force after the completion of domestic ratification procedures in both territories.
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