Singapore has signed numerous taxation agreements over the years. While most of them are double taxation treaties, Singapore has also signed two limited taxation conventions:
The limited taxation agreement with the US was enforced in 1988. The convention is limited because it only covers the tax applied to income derived from the international operation of aircraft and ships. Our specialists in company formation in Singapore can provide you with more information about the agreement between the city-state and the United States.
Under the limited tax agreement, Singapore has agreed to provide a tax exemption to US citizens and companies. The exemption to companies will be granted provided that the following conditions are met:
In the case of the United States the limited tax treaty provides for the tax exemption to be granted if:
The Singapore-USA limited tax treaty covers several elements of the income derived from international traffic of ships and aircraft.
Both states have agreed that the limited tax convention will cover the following incomes:
The agreement also establishes that in the case of air transportation, the tax exemption will apply to incomes from carrying passengers, mail, livestock and other goods, as well as to ticket sales.
For assistance in taxation matters in Singapore, do not hesitate to contact our local agents.