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Double Taxation Agreements
Singapore and Cabo Verde sign Avoidance of Double Taxation Agreement
12 November 2021
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1. Singapore and Cabo Verde have signed the Agreement between the Government of the Republic of Singapore and the Government of the Republic of Cabo Verde for the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance (“DTA”).
2. The DTA was signed by Mr Alvin Tan, Minister of State, Ministry of Culture, Community and Youth & Ministry of Trade and Industry, Republic of Singapore, and H.E. Rui Alberto de Figueiredo Soares, Minister of Foreign Affairs, Cooperation and Regional Integration of the Republic of Cabo Verde.
3. The DTA clarifies the taxing rights of both countries on all forms of income flows arising from cross-border business activities, and minimises the double taxation of such income. This will lower barriers to cross-border investment and boost trade and economic flows between the two countries. Key terms of the DTA can be found in the Annex.
4. The full text of the DTA is available on the Inland Revenue Authority of Singapore’s website here. The DTA will enter into force after ratification by both countries.
MINISTRY OF FINANCE
12 November 2021
Annex: Summary of key terms in the DTA
Article in the DTA | Key terms in the DTA |
|---|---|
Article 5, Permanent Establishment | Period test of 12 months for construction-related activities, beyond which residents of a contracting state could trigger a taxable presence in the other contracting state Period test of 183 days within any 12-month period for the furnishing of services, beyond which residents of a contracting state could trigger a taxable presence in the other contracting state |
Article 10, Dividends | 0% withholding tax rate (if shareholding ≥ 10%) 5% withholding tax rate (other cases) Government exemption |
Article 11, Interest | 7.5% withholding tax rate Government exemption Financial institution exemption |
Article 12, Royalties | 7.5% withholding tax rate |