Signing Of Singapore-Estonia Avoidance Of Double Taxation Agreement

1. An Agreement for the Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to Taxes on Income was signed today between the Government of the Republic of Singapore and the Government of the Republic of Estonia.

2. The signing took place in Singapore between Mr Tharman Shanmugaratnam, Minister for Education and Second Minister for Finance, and Mr Aivar Soerd, the Estonian Minister of Finance.

3. Like the other DTAs, the Agreement aims to alleviate the double taxation of income earned in one country by residents of the other. It also clarifies the taxing rights between Singapore and Estonia for all forms of income arising from cross-border economic activities between the two countries. There are also provisions for reduction or exemption of tax on certain types of income. The Agreement facilitates the cross-border flow of trade, investment, financial activities and technical know-how between Singapore and Estonia.

4. The Agreement will enter into force after its ratification by both countries. The provisions of the Agreement will apply to income arising in the year after its entry into force. The full text of the Agreement will be made available on the Inland Revenue Authority of Singapore's (IRAS) website at www.iras.gov.sg.

JOINT PRESS STATEMENT BY MINISTRY OF FINANCE, ESTONIA AND MINISTRY OF FINANCE, SINGAPORE