Singapore and Ethiopia signed a tax treaty on August 24, Singapore’s Inland Revenue Service has announced.
The treaty was signed by Singapore’s Minister for Trade and Industry (Industry), Mr S. Iswaran and Ethiopia’s Minister of Foreign Affairs, Tedros Adhanom during the 4th Africa Singapore Business Forum held in Singapore.
“While our traditional overseas markets remain important, Singapore companies must venture beyond these markets to seize opportunities in untapped markets in regions such as Africa,” Minister Iswaran said.
The agreement clarifies taxing rights of cross-border income and seeks to reduce double taxation. It generally reduces withholding taxes on interest, dividends, and royalties to 5 percent.
The agreement also provides for exchange of information foreseeably relevant to carrying out the provisions of agreement and for tax enforcement. It also provides for resolution of treaty disputes by mutual agreement.
The agreement is not yet ratified and thus is not legally binding at this time.