Protocol to Singapore-Russia tax treaty enters into force

A protocol amending the 2002 Singapore-Russia tax treaty entered into force on November 25, the Inland Revenue Authority of Singapore has announced.

The protocol, which will take effect January 1, 2017, reduces withholding tax on interest to zero and on royalties to 5%.

Withholding tax on dividends is set at 5% if received by a company that owns at least 15% of the capital of the company paying the dividend, and is 10% in other cases, except that dividends paid to the government of a contracting state are exempt.

The protocol expressly provides that dividends paid by real estate investment funds are subject to withholding tax.

Further, the treaty lengthens the period for determining the presence of a permanent establishment.

The protocol was signed by the two countries on November 17, 2015.

See:

• Protocol

Related MNE Tax articles:

• Singapore and Russia revise tax agreement, text available