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DTAs help to widen Singapore’s economic space
and strengthen its position as a hub for business. Currently,
Singapore has 60 comprehensive DTAs and 7 limited DTAs1
in force. The main objective of a DTA is to minimise
tax barriers to the cross-border flows of trade, investment,
technical know-how and expertise between two treaty
countries. Through the provisions of a DTA, taxpayers
engaged in cross-border business can enjoy certainty
on the taxing rights of either country, benefit from
the elimination of double taxation, and gain access
to a platform to settle tax disputes.
Please refer to the map below to view the geographical
distribution of our treaty partners. For the full texts
of Singapore’s DTAs, please refer to IRAS’
DTA web-link.
1Unlike comprehensive DTAs,
limited DTAs are limited to the tax exemption on income
derived from international shipping and/or air services.
The Ministry of Finance is constantly looking at how
the terms in our existing DTAs can be improved, and
which new DTAs should be secured. We invite the public
to send in their views via our online
feedback form.
For those who are new to DTAs and would like to find
out more, please refer to the list of FAQs below. You
may also wish to refer to IRAS’
DTA brief which explains the technical provisions
of a DTA.
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What is a DTA?
A DTA is a bilateral agreement which provides
clarity on the taxing rights of each country
on all forms of income flows between two
countries. The DTA also eliminates instances
of double taxation which can arise from
cross-border trade and investment activities.
Usually, there would be provisions in the
DTA for reduction or exemption of tax at
source on certain types of cross-border
incomes such as interest and royalties.
For more information on the ambit and coverage
of a DTA, please refer to IRAS’
DTA brief. |
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How are DTAs negotiated?
As with any other bilateral
treaty, there would have to be mutual interest
from both countries before formal negotiations
can be established. While it is expected
for each country to push for terms that
best serve its interests, compromises would
have to be made to achieve an overall balance
of benefits. Both sides may require more
than one round of face-to-face meetings
to resolve all outstanding issues and finalise
the terms of the DTA.
Upon the conclusion of negotiations, both
countries would arrange for the DTA to be
signed by the relevant authorities. Following
the signing, both countries would have to
ratify the DTA before it can enter into
force.
In the case of Singapore, once we receive
an official notification from our DTA partner
that they have completed their ratification
procedures, we will proceed to publish the
DTA text in the Singapore Government Gazette.
The DTA enters into force on the date of
our notification in the gazette.
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How do I seek assistance
if I encounter a problem relating to the
application of a particular DTA?
The Mutual Agreement Procedure (MAP)
Article of a DTA sets out the process to
resolve issues relating to the application
of the DTA.
Taxpayers who wish to take up their issues
under the MAP should approach the tax authority
of the State in which they are a tax resident.
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