Singapore and the United Kingdom signed their first double taxation treaty in 1966 and enforced it in 1975. Ever since, the agreement was renewed several times and the last amendment was brought in 2012. The effective date of the treaty is January 1st, 2013. The Singapore-UK double tax agreement covers private individuals and companies residents of one or both contracting parties and applies to the following taxes:
The agreement also provides for similar taxes in the UK and Singapore.
The income tax refers to different elements composing it which is why the articles of the double taxation convention provides for each type of them and specifies where the tax will be levied. First of all, the Singapore-UK double taxation treaty applies based on tax residency which is why most taxes will be levied in the country where the payer is registered for taxation purposes. Exception to these provisions are permanent establishments and associated enterprises which will be taxed in the country where the income arises. Income for immovable property, such as real estate, can also be taxed in the country where it is located. Other incomes covered by the double tax agreement between Singapore and the UK are:
Our specialists in company formation in Singapore can provide you with the full list of incomes governed by the treaty with the UK and can also explain how the avoidance of double taxation will occur.
The following reduced tax rates apply under Singapore’s double tax treaty with the United Kingdom:
For complete information on the double tax treaty with the UK, do not hesitate to contact our agents in Singapore.