The Inland Revenue Authority of Singapore has today announced that a comprehensive tax treaty signed between Singapore and Nigeria has been ratified and that the treaty will enter into force as of November 1.
The Singapore-Nigeria tax agreement, signed by the two governments on August 2, 2017, provides for reduced withholding tax on dividends, interest, and royalties and also adds a most favored nation clause.
The agreement adds provisions designed to reduce opportunities for multinational firm tax treaty shopping, required as minimum standards under the OECD/G20 base erosion and profit shifting (BEPS) project. Both Singapore and Nigeria are members of the “Inclusive Framework on BEPS” and have agreed to be bound by these minimum standards.
The new Singapore-Nigeria tax treaty will enter into effect on January 1, 2019.
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