Singapore–Serbia tax treaty enters into force

The double tax treaty signed earlier this year between the governments of Singapore and Serbia entered into force on August 16. The provisions of the treaty will generally have effect beginning in January 2022.

The treaty establishes a 5% withholding tax rate for dividends for shareholders holding at least 25% of the capital of the paying company. A 10% withholding tax rate applies to dividends in other cases.

For interest, the treaty sets a 10% withholding tax rate.

For royalties, a 5% or 10% withholding tax rate applies, depending on the nature of the royalties.