Singapore Expands DTA Treaty Network

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

04 December 2006

Singapore has signed a new double taxation avoidance agreement with Qatar and has ratified another tax agreement with Fiji.

The signature of the DTAA with Qatar coincided with Prime Minister Lee Hsien Loong’s official visit to the Gulf state last week. It was signed by Lim Hwee Hua, Singapore's Minister of State for Finance and Transport, and Yousef Hussain Kamal, Qatar's Minister of Finance.

The DTAA clarifies the taxing rights of each country on all forms of income, and provides for the elimination of double taxation on income that may occur as a result of cross-border economic activities between the two countries. The agreement will enter into force after its ratification by both countries.

Meanwhile, Singapore's agreement with Fiji for the avoidance of double taxation has been ratified and will enter into effect on 28 November 2006.

The agreement aims to promote greater cross-flow of trade, investment, technical know-how and expertise between Singapore and Fiji to strengthen bilateral economic links for the benefit of both countries. It will also attempt to prevent incomes being taxed by both Fiji and Singapore. In addition, the agreement will provide for tax exemption on profits arising from the operations of ships or aircraft in international traffic derived by either a Singapore or Fijian enterprise.

Singapore now has double taxation agreements in force with 53 countries.

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