Brazil-Singapore tax treaty enters into force

The tax treaty between Singapore and Brazil, signed in May 2018, entered into force on December 1 and will become effective in January 2022.

The treaty establishes a general 15% withholding tax rate for dividends. A 10% dividend withholding rate applies if the beneficial owner holds at least 25% of the capital of the paying company for the preceding 365 days.

For interest, the treaty also sets a general 15% withholding tax rate. A 10% rate applies for banks in certain circumstances, and an exemption applies for government-owned interest.

With respect to royalties, the treaty provides a 15% withholding tax rate for the use or right to use trademarks and a 10% withholding tax rate in other cases.