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Singapore – Thailand Double Taxation Agreement

Singapore – Thailand Double Taxation Agreement

Singapore and Thailand have a double taxation agreement in place which allows investors to benefit from double tax relief in the situation in which they derive income from both jurisdictions. The Agreement for the avoidance of double taxation and the prevention of fiscal evasion establishes the taxation rights of each jurisdiction applicable to business profits and other types of income.

Our accountants in Singapore can provide adequate counseling on all taxation matters for foreign investors from Thailand in Singapore and vice versa.

The provisions of the Singapore-Thailand DTA

The list below highlights the main provisions of the double tax agreement, from the taxes covered to the manner in which a permanent establishment is defined in the treaty, and thus can benefit from these tax reductions or exemptions.

  • Persons covered by the treaty: all residents of the Contracting States, either natural or legal persons, are subject to the provisions of the treaty
  • Taxes covered by the treaty: the Singapore income tax, the Thailand income tax, and the Thailand petroleum tax, as well as any other taxes, levied in place of or in addition to these
  • Types of income covered by the treaty: income from immovable property, business profits, income from shipping and air transport, dividend income, branch remittance, interest, royalties, capital gains, income from independent or dependent personal services, director’s fees, pensions, artist or sportsperson’s income,
  • Residents as defined in the treaty: a person who is liable for taxation based on domicile or, in case of companies, based on the place of incorporation
  • Permanent establishment as defined in the treaty: a place of management, a branch in Singapore or Thailand, office, factory workshop, mine, gas well or quarry, warehouse, building site, construction, etc.

The elimination of double taxation in Singapore

The Thailand-Singapore DTA establishes how each of the two Contracting States may levy their income taxes and also provides for a beneficial tax treatment of the withholding tax on dividends, interest, and royalties. As such, when a double tax treaty applies, dividend income is not taxed at all or is taxed at a preferential rate.

The team of experts at our accounting firm in Singapore can give you detailed information on how this treaty applies, based on information about your types of business.

Contact us for complete accounting and audit services in Singapore. A compliance audit implies the verification of a compliance program followed by recommendations. This type of solution assesses whether the compliance program is ethical and compliant with the internal controls that prevent and/or detect violations of laws and regulations. Contact our audit firm in Singapore if you need such a service.