Singapore and San Marino sign agreement for avoidance of double taxation

Also covers prevention of income tax evasion.

Singapore and San Marino have signed an Agreement for the Avoidance of Double Taxation (DTA).

The DTA contains the internationally agreed Standard for exchange of information for tax purposes, and will enter into force after its ratification by both countries.

The signing took place in Brussels between Mr Ong Eng Chuan, Ambassador of the Republic of Singapore to Belgium, The Netherlands and Luxembourg & Mission to the European Union and Mr Gian Nicola Filippi Balestra, Ambassador Extraordinary and Plenipotentiary, Head of Mission of the Republic of San Marino to the European Union.

According to the agreement between the two countries, double taxation shall be avoided in Singapore under the following terms.

First, where resident of Singapore derives income from San Marino which, in accordance with the provisions of this Agreement, may be taxed in San Marino, Singapore shall, subject to its laws regarding the allowance as a credit against Singapore tax of tax payable in any country other than Singapore, allow the San Marino tax paid, whether directly or by deduction, as a credit against the Singapore tax payable on the income of that resident.

Second, where such income is a dividend paid by a company which is a resident of San Marino to a resident of Singapore which is a company owning directly or indirectly not less than 10 per cent of the share capital of the first-mentioned company, the credit shall take into account the San Marino tax paid by that company on the portion of its profits out of which the dividend is paid.