Singapore and Germany have signed their first double taxation treaty in 2007. The agreement covers both natural persons and companies residents, respectively registered in one or of both countries. On a broad base, the Singapore-Germany double taxation agreement covers the income tax or elements constituting the income tax, as it follows:
The agreement also applies to other similar taxes imposed in both contracting states. Our Singapore specialists in company formation can provide you with more information related to the city-state’s taxation system.
The first articles of the Singapore-Germany double taxation convention specify that the agreement is enforced based on tax residency. The agreement establishes that “a resident of a contracting state” refers to any person paying taxes in Singapore or Germany and any company registered or with a place of management in one of the two countries. The treaty also defines permanent establishments as places of management of companies registered in one of the contracting parties carrying out activities in the other state for more than six months.
The avoidance of double taxation in both Singapore and Germany will occur based on exemptions or credits against the taxes paid in the other country. For more information on how the avoidance of double taxation will take place in Singapore, you can refer our local experts.
The Singapore-Germany double tax agreement provisions for the following taxes to benefit from reduced tax rates:
If you are interested in opening a company in Singapore and need more information about the country’s double tax treaties, do not hesitate to contact our agents.