Singapore and the Government of the Republic of India for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income. Whereas the annexed Agreement between the Government of the Republic of India and the Government of the Republic of Singapore for the avoidance of. The Mumbai Bench of the Income Tax Appellate Tribunal had occasion to examine the India Singapore Double Taxation treaty in a recent.
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For the purposes of paragraph 1, the term “Government”: If due to a special relationship that exists between the borrower and lender, the interest paid exceeds an amount which both the parties might have indja upon in the absence of such a relationship, the above tax rate will apply only to this agreed upon amount and not the excess amount paid.
The dispute in this case really centered around whether the income in question was taxable in Singapore on receipt basis or on accrual basis.
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Let our experienced team help you with managing your accounting, tax and payroll issues. Profits derived by an enterprise of a Contracting Slate from the operation of ships or aircraft in international traffic shall be taxable only in that State.
An enterprise of a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because it carries on business in that other State through a broker, general commission agent or any other agent of an independent status provided that such persons are acting in the ordinary course of their business.
The outlook for the stock of Kalpataru Power Transmission is positive. Login Register Follow on Twitter Search. Note that ships and aircraft do not constitute immovable property.
Taxation of Dividend Income Dividends paid by a company that is a resident of one contracting country to a resident of the other contracting country may be taxed in that other country i. Where an enterprise of one contracting country participates directly or indirectly in the management, control or capital of an enterprise of the other contracting country, and conditions are imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, may be included in the profits of that enterprise and taxed accordingly.
Need support with your taxes? Cities were renamed, liberals were shouted down and vegans found their voice. Gains from the alienation of shares of the capital stock of a company the property of which consists principally, directly or indirectly, of immovable property situated in a Contracting State may be taxed in that State.
In the case of India means the Government of India and shall include: Where, however, the person paying the interest, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment or fixed base, then such interest shall be deemed to arise in the Contracting State in which the permanent establishment or fixed base is situated.
Profits derived from the transportation by sea or air of passengers, mail, livestock or goods carried on by the owners or lessees or charterers of the ships or aircraft including profits from: Estimate your annual Singapore taxes using our online calculator.
In such cases, the fees will be treated as income of the permanent establishment or as income derived from the performance of personal services and will be taxed accordingly. The term “dividends” as used in this Article means income from shares or other rights, not being debt-claims, participating in profits, -as well as income from other corporate rights which is subjected to the same taxation treatment as income from inria by the laws of the State of which the company sijgapore the distribution is a resident.
However, if the enterprise carries out business in the other contracting country through a permanent establishment situated in that contracting country, then the profits or income derived from that permanent establishment alone will be liable to tax in the other contracting country.
For the purposes of singapkre and c above, the person ctaa the service shall be deemed to include an agent, nominee, or transferee of such person. Where profits include ibdia of income which are dealt with separately in other Articles of this Agreement, then the provisions of those Articles shall not be affected by the provisions of this Article. The term ‘Government” includes its agencies and statutory bodies. Interest on funds connected with the operation of ships or aircraft in international traffic shall be sngapore as profits derived from the operation of such ships or aircraft, and the provisions of Article 11 shall not apply in relation to such interest.
Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment alone or together with the whole enterprise or of such fixed base, may be taxed in that other State.
Where income in respect of or in connection with personal activities exercised by an artiste or sportsperson accrues not to the artiste or sportsperson himself but to another person, that income may, notwithstanding the provisions of Articles 7, 14 and 15, be taxed in the Contracting State in which the activities of the artistes or sportspersons are exercised.
It is not clear if the circular was issued under Section 10 or 10A.
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For the purposes of this Article, profits from the operation of ships or aircraft in international traffic shall mean rtaa derived from the transportation by sea or air of passengers, mail, livestock or goods carried on by the owners or lessees or charterers of the ships or aircraft, including profits from: The Government of a Contracting State shall be exempt from tax in the other Contracting State in respect of income derived by that Government from sources within the other State.
Relief by deductionIn Singapore: My saved default Read later Folders shared with you. If there is a silver lining for Singapore, one could also argue that singappore renegotiation of the India-Singapore DTAA was, in fact, preferable for the Republic now as it removed some uncertainty of possible retroactive changes that might be imposed by India later, which has remained a possibility with non-treaty countries.
Agreement between the Government of Republic of the India and the Government of the Republic of Singapore for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.
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Revisiting the Singapore-India Double Taxation Avoidance Agreement | Global-is-Asian
Interest shall be deemed to arise in a Contracting State when the payer is that Contracting State itself, a political sub-division, a local authority, a statutory body or a resident of that State. It is in this background that the scope of LOB provision in Article 24 needs to be appreciated. Taxation of Employment Income Salaries, wages and other similar remuneration in respect of employment will be subject to tax in the country in which the employment is exercised.
For the purpose of paragraph 1, the term “directly or indirectly attributable to the permanent establishment” includes profits arising from transactions in which the dtaz establishment has been involved and such profits shall be regarded as attributable to the permanent establishment to the extent appropriate to the part played by the permanent establishment in those transactions, even if those transactions are made or placed directly with the overseas head office of the enterprise rather than with the permanent establishment.
Charge of income tax Where, however, the person paying the royalties or fees for technical services, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the liability to pay the royalties or fees for technical services singaporr incurred, and such royalties or fees for technical services are borne by such permanent establishment or fixed kndia, then such royalties or fees for technical services shall be deemed to arise in the State in which the permanent establishment or fixed base is situated.
Taxation of Royalties Royalty income arising in a contracting country and paid to a resident of the other contracting country may be subject to taxation in the recipient country.
If due to a special relationship that exists between the payer and the recipient of the royalties, the amount of royalties paid exceeds an amount which both the parties might have agreed upon in the absence of such a relationship, the above tax rate will apply only to this agreed upon amount and not the excess amount paid.
Keep informed about important changes in Singapore to help you manage your business effectively as well as our upcoming events. Where a resident of India derives income which, in accordance with the provisions of this Agreement, may be taxed in Singapore, India shall allow as a deduction from the tax on the income of that resident an amount equal to the Singapore tax paid, whether directly or by deduction.
Goodbye to all that1 What ended Toggle navigation Home About Us. Taxation of Capital Gains Gains derived by a resident of one contracting country from the alienation of immovable property that is situated in the other contracting country may be taxed in that other country.