Singapore-Fiji Avoidance Of Double Taxation Agreement Ratified

Singapore's agreement with Fiji for the avoidance of double taxation comes into effect on 28 November 2006. The agreement will specify clearly the taxing rights of each country on all types of income earned from 1 January 2007.

2. The agreement aims to promote greater cross-flow of trade, investment, technical know-how and expertise between Singapore and Fiji to strengthen bilateral economic links for the benefit of both countries. With the increasing trend of Singapore businesses and Singaporeans venturing overseas, their same income may be subject to tax both in Fiji and Singapore. The agreement will alleviate the double taxation which may arise from the cross-border transactions between the two countries.

3. The agreement provides for tax exemption or reduction of tax in Fiji on various types of income earned by residents of Singapore, and vice versa. It also provides for tax exemption on profits arising from the operations of ships or aircraft in international traffic derived by either a Singapore or Fijian enterprise.

4. With this latest agreement, Singapore now has in force double taxation agreements with 53 countries. The full text of the agreement is published in the Government Gazette today. The full text of the agreement is also available on the Inland Revenue Authority of Singapore's (IRAS) website at www.iras.gov.sg

MINISTRY OF FINANCE