Speech by DPM Lee Hsien Loong for the Signing Ceremony of the Avoidance of Double Taxation Agreement Between Singapore & Mongolia on 10th Oct 2002 at The Treasury

SPEECH BY DPM LEE HSIEN LOONG FOR THE SIGNING CEREMONY OF THE AVOIDANCE OF DOUBLE TAXATION AGREEMENT BETWEEN SINGAPORE AND MONGOLIA, TO BE HELD ON 10th OCTOBER 2002 AT THE 10TH FLOOR EXECUTIVE CONFERENCE ROOM, THE TREASURY, 100 HIGH STREET

Your Excellency Chultem Ulaan, Minister for Finance and Economy

Ladies and Gentlemen:

1 It is my pleasure to welcome you to Singapore and to this signing ceremony.

2 Singapore and Mongolia have enjoyed good and friendly relations since diplomatic relations were established in 1970. I am pleased that our ties will be further strengthened with the current visit of your Prime Minister to our country. I am happy to welcome the Mongolian delegation to Singapore.

3 Our 2 countries share experience and expertise in wide-ranging fields under our bilateral programmes and Third Country Training Programme. For example, courses such as IT, finance and economic development, tourism and environment have been conducted under these programmes. Bilateral trade between our 2 countries has been rising over recent years.

4 However, the different tax laws prevailing in Singapore and Mongolia mean that income derived from bilateral trade and investments may be subject to double taxation. This would hinder the growth of our economic relations. Through the Avoidance of Double Taxation Agreement, our 2 Governments are sending a clear signal to our private investors to pursue opportunities in each other's economies.

5 The Avoidance of Double Taxation Agreement will eliminate double taxation, and provide greater tax certainty for our businessmen. It will make clear the taxing rights of Singapore and Mongolia on all forms of income arising from cross-border economic activities between our 2 countries. Singapore businessmen and investors looking for opportunities in Mongolia will benefit from this Agreement. Similarly, Mongolian businesses using Singapore as a source for finished products and technology will also benefit from this Agreement.

6 Bilateral economic relations between our 2 countries will now be further strengthened by the Avoidance of Double Taxation Agreement. I am confident that this Agreement will further promote greater cross-flow of trade, investment, technology and expertise between Singapore and Mongolia.

7 I therefore have pleasure to join you, Your Excellency, in signing the Agreement.