Germany and Singapore To Enhance Tax Co-Operation In Exchange Of Information

Germany and Singapore have agreed to enhance their cooperation in tax matters to tackle cross-border tax evasion. Both sides have agreed to incorporate the internationally agreed Standard^[1] for Exchange of Information into their avoidance of double taxation agreement. The agreement will come into force after ratification by both sides domestically.

The internationally agreed Standard allows exchange of information for the administration and enforcement of the domestic tax laws of the requesting country. Thus, in line with the Standard, the scope for exchanging information will be expanded significantly, as follows:

In future, it will be possible to exchange information for all types of tax. The exchange of information will no longer be restricted just to taxes on income and on capital.

The exchange of information will no longer depend on the taxpayer being resident in one of the contracting states.

The requested state is also obligated to obtain information even in a case where it does not itself require the requested information for tax purposes.

Banking secrecy will not constitute an obstacle to exchanging information.

Both countries will explore ways to enhance bilateral cooperation on tax matters.

Ministry of Finance
Singapore

Federal Ministry of Finance
Germany

14 October 2012

^[1] As published in the OECD 2005 Model Tax Convention on Income and on Capital