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Singapore-Qatar Avoidance Of Double Taxation Agreement Comes Into Force

04 Oct 2007

Singapore-Qatar Avoidance Of Double Taxation Agreement Comes Into Force

Date: 04 October 2007

An Agreement for the Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to Taxes on Income between the Government of the Republic of Singapore and the Government of the State of Qatar comes into force on 5 October 2007. The provisions of this Agreement will apply to income derived on or after 1st January 2008.

2. This Agreement with the Government of the State of Qatar was signed during PM's visit to the Middle East in November last year as part of our efforts to strengthen relationship with the Middle Eastern countries. Singapore has also concluded similar agreements with various other Middle Eastern countries such as Bahrain, Egypt, Israel, Kuwait and Oman.

3. With this Agreement coming into force, Singapore will now have in force a total of 56 comprehensive tax treaties. The treaties reflect Singapore's continual efforts to engage her trading partners in relieving double taxation, which encourages and facilitates the cross-flow of trade, investment, financial activities and technical know-how.

4. The main terms under the Agreement with Qatar are:

(a) The withholding tax rate on dividends will be 0%.

(b) The withholding tax rate on interest and royalties will be 5% and 10% respectively.

(c) For dividends received by a Singapore resident company from a Qatar resident company, Singapore will allow a tax credit for the Qatar tax paid 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 Qatar paying the dividends.

(d) Mutual tax sparing relief will apply to the first ten years for which the Agreement is effective.

5. The full text of the Agreement will be published in the Government Gazette on 5 October 2007, and will also be available on the website of the Inland Revenue Authority of Singapore at