The double taxation agreement (DTA) between Singapore and Cambodia entered into force at the end of December 2017. The two jurisdictions originally signed he DTA in May 2016. The agreement will help promote foreign investments as clarifies the taxation issues that may arise in case of companies and individuals deriving income from both locations.
Our team of accountants in Singapore highlight the main provisions of the treaty and can help you understand how it applies to Cambodian investors.
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The provisions of the Singapore – Cambodia DTA
The agreement for the avoidance of double taxation clarifies each jurisdiction’s right to levy taxes on income for companies and individuals. The treaty applies to all types of income, including business income, that obtained from salaries and pensions, from dividends or special director’s income.
The DTA will apply on the following types of taxes:
- in case of Cambodia: the withholding tax, the additional profit tax on dividend distribution and the capital gains tax as well as the salaries tax;
- in case of Singapore: the income tax.
Moreover, the agreement will also apply to any other taxes levied in place of or in addition to the ones mentioned above. A reduced withholding tax rate for dividends is subject to the relationship between the company paying the dividends and the one receiving them. You can obtain more information on the dividend tax in Singapore from our specialists.
The double tax agreement will enter into force once both countries ratify it. One of our accountants in Singapore can give you updated information on these changes if you are an investor in Cambodia.
Every business with employees has a payroll process in place for those workers. Many businesses today choose to work with a payroll company in Singapore in order to make the process simpler, more pleasant, but also more affordable, as opposed to performing the duty internally or hiring a bookkeeper.
Double taxation avoidance in Singapore
Singapore has signed more than 80 agreements for the avoidance of double taxation. These treaties provide for the reduction or total exemption of income tax for types of income, as described in the individual agreements. The treaties apply to Singapore tax residents and tax residents of the other treaty partner. One of the experts at our accounting firm in Singapore can give you detailed information about the treatment of tax residents.
Contact us for more information on taxation in Singapore and dedicated accounting services. We can also conduct performance audits in Singapore, through which we can examine how resources are used by the unit to ascertain whether those resources are being used in the most effective and efficient ways feasible to fulfill the unit’s objectives. A performance audit includes both a compliance and a financial audit.