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Singapore-Kazakhstan Avoidance Of Double Taxation Agreement Comes Into Force

13 Aug 2007

An Agreement for the Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to Taxes on Income between the Republic of Singapore and the Republic of Kazakhstan enters into force on 14 August 2007 following the completion of ratification formalities. The provisions of this Agreement shall cover income derived on or after 1st January 2008.

2. The Agreement will help alleviate the burden of double taxation of income of investors from Singapore and Kazakhstan, and facilitate the cross-flow of trade, investment, financial activities and technical know-how between the two countries.

3. The main terms under the Agreement include the following:

a) The withholding tax rate on dividends will be 5% or 10% (depending on circumstances).
b) The withholding tax rate on interest and royalties will be 10%.
c) For dividends received by a Singapore resident company from a Kazakhstan resident company, Singapore will allow a tax credit for the Kazakhstan tax on that portion of the profits out of which the dividends are paid. This is provided that the Singapore resident company owns at least 10% of the share capital of the company resident in Kazakhstan.

4. The full text of the Agreement will be published in the Government Gazette on 14 August 2007, and will also be available on the website of the Inland Revenue Authority of Singapore at