Singapore and Cabo Verde sign tax treaty

The Inland Revenue Authority of Singapore announced on November 12 that the governments of Singapore and Cabo Verde on August 12 signed a treaty to eliminate double taxation and prevent tax avoidance.

For dividends, the treaty establishes a general withholding tax rate of 5%. However, a 0% rate applies for beneficiaries holding at least 10% of the capital of the paying company. An exemption also applies for payments to governments.

For interest, the treaty establishes a 7.5% withholding tax rate, with exemptions for government and financial institutions.

For royalties, the treaty also sets a 7.5% withholding tax rate.