Wednesday, February 22, 2012
The UK and Singapore have signed a second protocol to their existing Double Taxation Agreement (DTA), amending withholding tax rates.
The latest amendment was signed in Singapore on February 15 by Lord Green of Hurstpierpoint, the UK's Minister of State for Trade and Investment, and Josephine Teo, Singapore's Minister of State for Finance & Transport.
The protocol sets a withholding tax rate for dividends at 0%, except in the case of real estate investment trusts, which will be taxed at 15%. The headline interest withholding tax rate under the protocol is 5%, with certain entities charged at a 0% rate. Royalties will be taxed at 8%.
The treaty was originally signed in 1997, with the latest exchange of information standards inserted in 2009. According to Singapore's Ministry of Finance, the changes will serve to enhance trade and investment flows between the two countries.