Singapore Joins OECD White List

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

13 November 2009

Singapore has entered into its 12th agreement that incorporates the Organization of Economic Cooperation and Development (OECD) standard for the exchange of information for tax purposes by signing a protocol to amend its existing agreement for the avoidance of double taxation (DTA) with France.

Singapore has now signed similar agreements with Belgium, New Zealand, the UK, Denmark, the Netherlands, Australia, Austria, Norway, Qatar, Mexico, and Bahrain. With this 12th agreement, Singapore joins the OECD’s white list of jurisdictions that have substantially implemented the standard.

Singapore’s Minister for Finance, Tharman Shanmugaratnam, signed the protocol with French Minister for the Economy, Industry and Employment, Christine Lagarde, in Singapore.

“I am pleased that we are enhancing our tax cooperation with France, a major economic partner for Singapore,” Shanmugaratnam said. “We will not stop at 12 agreements. We expect to sign several more by the end of the year, and will continue to renegotiate such DTAs.”

“Like Singapore’s high ratings by the Financial Action Task Force (FATF) for its role in the global anti-money laundering effort, these recent steps are consistent with our role as a responsible and well-regulated financial jurisdiction,” he added.

Similarly, Lagarde remarked: “I am particularly pleased to sign today the 12th protocol which allows the withdrawing of Singapore from the OECD grey list. It is a significant breakthrough to see such an important financial place reaching the OECD white list. I hope that after this agreement, our two countries will continue to enhance their financial and economic cooperation in order to build a bridge between Europe and Asia and to strengthen their economic and financial links.”

The protocol will give the tax authorities of both countries a greater ability to exchange taxpayer information and to exchange information on a wider range of taxes. It also provides that neither tax authority can refuse to provide information solely because it does not require the information for its own domestic purposes, or because the information is held by a bank or similar institution.

The protocol will enter into force on the first day of the month following notification that ratification procedures have been completed by both countries.

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