Singapore and United Kingdom Ink DTA Protocol

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Mar. 6 – The UK and Singapore have signed a second protocol to their existing Double Taxation Agreement (DTA) on February 15, 2012, amending withholding tax rates.

According to the protocol, the withholding tax rate for dividends is set at 0 percent, except for real estate investment trusts, which will be taxed at 15 percent. The headline interest withholding tax rate under the protocol is 5 percent, with certain entities charged at a 0 percent rate. Royalties will be taxed at 8 percent.

The treaty was originally signed in 1997, with the latest exchange of information standards inserted in 2009. These changes are expected to enhance trade and investment flows between the two countries.

Dezan Shira & Associates is a boutique professional services firm providing foreign direct investment business advisory, tax, accounting, payroll and due diligence services for multinational clients in China, Hong Kong, India, Singapore and Vietnam. For further advice on entering or conducting business in Singapore, please email singapore@dezshira.com, visit www.dezshira.com, or download the firm’s brochure here.

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