Amended Singapore/Belgium Double Tax Convention Becomes Effective

by Mary Swire, Tax-News.com, Hong Kong

05 May 2004

A supplementary agreement between the governments of Singapore and Belgium amending certain articles of a double taxation avoidance and anti tax evasion agreement went into effect yesterday, the Singapore government announced.

According to a statement issued by the Ministry of Finance, changes in economic circumstances and policies made it necessary for the original agreement signed in 1972 to be amended.

Under the existing Convention, the rate of withholding tax on interest is not more than 15% and industrial royalties are exempt from tax in the country where they arise. Where interest and royalties are exempt from tax in Singapore, Belgium will give a tax credit of 15% of the gross amount of such interest or royalties.

The Supplementary Agreement further reduces the rate of withholding tax on interest to not more than 10% and provides for a rate of withholding tax of 5% for all types of royalties. Where interest or royalties are exempt from tax in Singapore due to tax incentives granted in connection with industrial or commercial development projects, Belgium will give a tax credit of 10% of the gross amount of such interest and 5% of the gross amount of such royalties.

The Supplementary Agreement will apply from the 1998 tax year.

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