Brunei And Singapore Sign Double Taxation Avoidance Agreement

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

24 August 2005

Representatives from the governments of Brunei and Singapore last week signed an agreement on the avoidance of double taxation.

The agreement, signed in Singapore on Friday morning by Foreign Affairs Minister George Yeo and the visiting Bruneian Trade and Foreign Affairs Minister Prince Mohamed Bolkiah, will mean companies from one territory doing business in the other jurisdiction will only be taxed once on their income. It has also been hailed as an important step in the fostering of closer economic ties between the two countries.

"The agreement that we will sign today is part of this process of deepening our economic ties," declared George Yeo, Singapore's Minister for Foreign Affairs.

He added that:

"The Avoidance of Double Taxation Agreement or DTA, as it is commonly called, affords our businessmen many advantages. With the DTA, they need not worry about tax issues when they seek out investment opportunities in each other’s country. The Agreement does this by making clear the taxing rights of Brunei and Singapore on all forms of income arising from cross-border activities. In doing so, it will eliminate double taxation, as each country will give recognition to the tax paid by its residents to the other country."

Mr Yeo said that the DTA should pave the way for further bilateral trade and investment, and enhance the two-way flow of technology, talent and expertise.

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