Singapore and Sri Lanka Revise Their Agreement for The Avoidance of Double Taxation
1. Singapore and Sri Lanka signed a revised Avoidance of Double Taxation Agreement (DTA) on 3 April 2014. The signing took place in Colombo between Mr K Shanmugam, Singapore’s Minister for Foreign Affairs and Minister for Law, and Professor Gamini Lakshman Peiris, Sri Lanka’s Minister of External Affairs.
2. Amongst other changes, the revised DTA lowers the withholding tax rates for dividends and royalties, and updates the provisions for determining permanent establishments. It also incorporates the internationally agreed Standard for exchange of information for tax purposes. These changes are expected to enhance trade and investment flows between the two countries.
3. The full text of the DTA is available on the Inland Revenue Authority of Singapore’s (IRAS) website here. The revised DTA will enter into force after its ratification by both countries.
Ministry of Finance
4 April 2014