Double Tax Agreement Between Singapore And China

Double Tax Agreement Between Singapore And China

An overview of the comprehensive bilateral tax treaty between Singapore and India to avoid double taxation of income. Find out more here. Under a DBA, a tax credit is generally only available in the country of residence if the income has been taxed in the country of origin. Tax savings credits are a particular form of credit by which the country of residence agrees to grant tax that would have been paid in the country of origin, but which has not been “spared” by the country`s specific laws to promote economic development. The provision of tax savings is usually found in the DBA between a developing country that offers tax incentives to attract foreign investment and a developed country that exports capital. The loan is granted by the country exporting capital in accordance with its laws to encourage investment. The Singapore-China DBA sets tax rates for different types of income that range from one country (country A) to second country (country B). For example, for savings income, the withholding rate in the DBA is 7% when received by a financial institution and 10% in all other cases. This is a benefit to taxpayers in both countries, since the withholding tax on interest in Singapore is 15% and the corresponding tax rate in China is 10%. Such provisions are intended to promote cross-border trade and revenue flows between the two countries. The bilateral CSFTA between China and Singapore has improved singapore-based companies` access to the huge Chinese market and further improved bilateral trade and investment relations.

Based on the obligations under the ACFTA trade agreement, the CSFTA provides for accelerated tariff concessions that will improve the competitiveness of Singapore`s products relative to other foreign imports to China. The CSFTA is also China`s first comprehensive bilateral free trade agreement with an Asian country, covering areas ranging from trade in goods and services to investment and economic cooperation. China-Singapore Chongqing Connectivity Initiative (CCI) is another intergovernmental cooperation project between China and Singapore, focusing on financial services, aviation, transportation logistics and communications. It was launched in 2015 to support China`s less developed western region through improved transport, financing and data connectivity between Singapore and Chongqing. For this joint project, International Enterprise Singapore and the Municipality of Chongqing have signed a Memorandum of Understanding for the implementation of two commercial projects that will improve Chongqing`s links to Southeast Asia and Central Asia.