Singapore and Latvia have signed a protocol to amend their tax treaty, Singapore’s Inland Revenue Service has announced.
The agreement, signed April 20 in Washington DC, would reduce to zero the withholding tax on dividends and interest where the beneficial owner is a corporation. The withholding tax on royalties is reduced from 7.5 percent to 5 percent.
The protocol also lengthens the period for determining the presence of a permanent establishment.
The countries’ existing tax treaty has been in force since February 2000.
The new protocol is not yet in force. To enter into force it must be ratified by both counties.
