Tuesday, March 15, 2011

INCOME TAX TREATY SIGNED BETWEEN SINGAPORE AND SWITZERLAND

Singapore and Switzerland, signed Income Tax Treaty on 24 February 2011. The treaty generally follows the OECD Model Convention. The maximum rates of withholding tax as per treaty are:
15% on dividends (5% if the beneficial owner is a company that holds directly at least 10% of the capital of the company paying the dividend); 5% on interest, subject to exceptions; and 5% on royalties. Singapore generally provides for the credit whereas Switzerland generally provides for the exemption method to avoid double taxation.

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