Singapore-Jordan tax treaty enters into force

The tax treaty signed by the governments of Jordan and Singapore on July 14 entered into force on December 30 following the necessary ratifications and exchange of diplomatic notes. As a result, the treaty provisions will take effect on January 1, 2022.

For dividends, the treaty sets a 5% withholding tax rate when the beneficial owner is a company owning at least 10% of the capital of the paying company. In other cases, an 8% dividend withholding tax rate applies.

For interest and royalties, the treaty establishes 5% withholding tax rates.