Press Releases

Singapore and Hong Kong have agreed not to double tax income from from operating ships or aircraft in international traffic. Its provisions shall have effect in Singapore in respect of Singapore tax from the Year of Assessment 2006.

2 The Agreement will benefit both economies. The reciprocal exemption of income from operating ships and aircraft in international traffic applies to shipping and airline enterprises of Singapore and Hong Kong.

3 The reciprocal exemption also applies to:

(a) profits from rental on a bareboat charter basis of ships or aircraft where the rental is incidental to the operation of ships or aircraft in international traffic;

(b) income or profits from the sale of tickets and the provision of services where such provision of services is incidental to the operation of ships or aircraft in international traffic;

(c) profits from the use, maintenance or rental of containers used for the transport of goods or merchandise, where the use, maintenance or rental is incidental to the operation of ships or aircraft in international traffic; and

(d) interest on funds deposited directly in connection with the operation of ships or aircraft in international traffic.

4 With this Agreement, Singapore now has Avoidance of Double Taxation Agreements on income from operating ships or aircraft in international traffic with 7 treaty partners. The full text of the Agreement is published in the Government Gazette (www.egazette.com.sg) and is also available on the Inland Revenue Authority of Singapore's (IRAS) website at www.iras.gov.sg.

MINISTRY OF FINANCE