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Revised Double Tax Agreement (DTA) between Singapore and Luxembourg

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Revised Double Tax Agreement (DTA) between Singapore and Luxembourg

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A double tax agreement (DTA) stipulates the cooperation of two countries for reporting requirements upon its citizens of any tax obligations payable for profits earned by an individual or company.

Singapore and Luxembourg on the 9thof October 2013 have signed a revised DTA which includes the international agreed standard for exchange of information for tax purposes. The main benefit of DTA’s between two countries is to enhance trade and investment flows between the two countries engaged.

Other changes of the DTA include lower withholding tax rates for dividends, interest and royalties.

For double taxation agreements to work and develop between two countries there must be a sound cooperation between the parties involved.

Singapore and Luxembourg have lengthened the period tests for determining permanent establishment. The revised DTA will also provide a more favorable tax treatment for international transport and shipping income.

This reconfirms the sound cooperation between the two countries and companies involved are encouraged to enhance trade between the two countries as the test period is promising for permanence.

For the revised DTA please see click here 

Article provided by Eltoma Corporate Services

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