Singapore, Uruguay tax treaty to enter into force

Singapore’s Inland Revenue Authority has announced that a new treaty signed with Uruguay will enter into force on March 14.

The tax treaty, signed January 15, 2015, clarifies the taxing rights of both countries from cross-border business activities and minimizes double taxation.

The agreement sets withholding tax rate on dividends at 5 percent if the beneficial owner is a company (other than a partnership) holding at least 10 percent of the company paying the dividends. Withholding on dividends is set at a 10 percent rate in other cases.

Withholding on interest is generally 10 percent, with listed exceptions, such as when the beneficial owner of the interest is a state, in which case the rate is zero.

Withholding on royalties is 5 percent of the gross amount of the royalties for the use of, or the right to use, copyright of literary, artistic, or scientific work, including cinematograph films, films, or tapes used for radio or television broadcasting. The rate is 10 percent in other cases.