What Are Double Taxation Agreements (DTAs)?
- DTAs are agreements signed between countries. They help
Singapore-resident companies to avoid paying taxes twice
on the same income.
- For instance, your foreign subsidiary in Australia pays
corporate taxes in Australia. When the money is
remitted/received by you in Singapore, it is taxed again.
- Under DTA, you can claim for relief for taxes paid overseas.
- DTA also sets out clearly the taxing rights of each country
for different types of income that arise from cross-border
Who Benefits From Double Tax Agreements?
- Singapore-resident companies can tap into the benefits of
Double Taxation Agreements (DTA).
- A company is resident in Singapore if the control and
management of its business are exercised in Singapore.
- To prove that you are a Singapore-resident company you can
apply for a Certificate of Residence from IRAS.
Filing For Claims Under DTA
- You can make a claim for Double Tax Relief (DTR) under the
DTA when you file your annual income tax return.
- You will also need to give documentary proof (e.g. letter
from the tax authority or dividend vouchers) to show that the
remitted income has been subject to tax in the treaty country
before DTR claims can be considered.