Singapore has concluded a large number of double taxation agreements in order to provide foreign investors from all over the world several tax advantages. Given its strong economic ties with Europe, many of the countries Singapore has agreed upon the avoidance of double taxation are European states. Among these countries Singapore has signed a double tax treaty with Sweden. The first convention was signed in 1966 and it was last amended in 1992.
Our local company registration experts can assist foreign investors who want to open a Singapore company.
What are the taxes covered by the Singapore-Sweden double tax treaty?
In order to avoid double taxation, Singapore and Sweden have agreed upon several taxes to be subject to the treaty. The Singapore-Sweden double taxation convention covers the income tax in the city-state, while in Sweden it covers the following taxes:
- – the income tax;
- – the tax applied to artists;
- – the communal tax;
- – the state capital tax.
The double tax agreement between Singapore and Sweden also covers the sailor and coupon taxes, which are part of the income tax, but also the tax imposed on the profits undistributed by companies and the tax imposed on the reduction of the share capital or the liquidation of companies. Considering the Swedish tax system is more complicated, Singapore companies doing business there are advised to seek accounting services when it comes to paying taxes related to the income generated in Sweden.
Other provisions of the Singapore-Sweden DTA presented by our experts in opening companies in Singapore
The Singapore-Sweden double taxation agreement applies to residents of both countries, natural persons and companies. Furthermore, when it comes to legal entities, special clauses apply to permanent establishments of Swedish and Singapore companies which will be taxed on the income resulted in the country where the permanent establishment is located. Our Singapore company formation agents can offer more information on the permanent establishment status.
When referring to the taxation of dividend, interest and royalties payments, the latest amendment to the agreement provides for reduced rates.
For complete information about the double taxation treaty with Sweden, do not hesitate to contact our company formation consultants who can help Sweden investors open a company in Singapore.