Singapore–Barbados DTA Comes Into Effect

Posted by Reading Time: 3 minutes

SINGAPORE – The newest of Singapore’s now 75 double taxation agreements (DTA), signed between the city-state and the island nation of Barbados, went into effect on Friday last week. The agreement is expected to boost cross-border trade and investment between Singapore and Barbados by clarifying both parties’ taxation rights so as to avoid double taxation.

The DTA provisions extend to the income tax in Singapore and the income tax, the corporation tax and the petroleum winning operations tax in Barbados.

Under the agreement, dividends will receive a zero withholding tax rate at source, while interest is to be taxed at a maximum rate of 12 percent and royalties at 8 percent, under certain conditions.

Notably, the agreement also contains the latest international standards for the exchange of tax information, under which tax authorities are required to provide information even if it is not required information for the authority itself or held by a bank or other financial institution.

“Barbados is a blue chip global financial and offshore center,” says Chris Devonshire-Ellis of Dezan Shira & Associates. “This agreement with Singapore will boost the country’s ability to house serious global businesses who are interested in ASEAN and looking for reduced royalty rates from trademarks, patents and other management licensing agreements.”

The Barbadian government counts Singapore amongst its most important relationships in the Asia-Pacific region. In July, 2013 the two countries signed an open skies deal giving operators unlimited rights to conduct flights between the two points.

A full list of Singapore’s DTAs can be found here.

Asia Briefing Ltd. is a subsidiary of Dezan Shira & Associates. Dezan Shira is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN. For further information, please email or visit

Stay up to date with the latest business and investment trends in Asia by subscribing to our complimentary update service featuring news, commentary and regulatory insight.

Related Reading

The Gateway to ASEAN: Doing Business in Singapore 2014 (Second Edition)
Dezan Shira & Associates’ Singapore business guide will provide readers with an overview of the fundamentals of investing and conducting business in Singapore. The 2014 edition explains the basics of company establishment, annual compliance, taxation, human resources, payroll and social insurance in the city-state, in addition to how a company established there can be used to conduct business in the wider ASEAN and Southeast Asian region.

The Gateway to ASEAN: Singapore Holding Companies
In this issue of Asia Briefing Magazine, we highlight and explore Singapore’s position as a holding company location for outbound investment, most notably for companies seeking to enter ASEAN and other emerging markets in Asia. We explore the numerous FTAs, DTAs and tax incentive programs that make Singapore the preeminent destination for holding companies in Southeast Asia, in addition to the requirements and procedures foreign investors must follow to establish and incorporate a holding company.

AB-Tax-Treaties-CoverAn Introduction to Tax Treaties Throughout Asia
In this issue of Asia Briefing Magazine, we take a look at the various types of trade and tax treaties that exist between Asian nations. These include bilateral investment treaties, double tax treaties and free trade agreements – all of which directly affect businesses operating in Asia.

The 2014 Asia Tax Comparator
In this issue of Asia Briefing Magazine, we examine the different tax rates in 13 Asian jurisdictions – the 10 countries of ASEAN, plus China, India and Hong Kong. We examine the on-the-ground tax rates that each of these countries levy, including corporate income tax, individual income tax, indirect tax and withholding tax. We also examine residency triggers, as well as available tax incentives for the foreign investor and important compliance issues.