Amendment to the Singapore-Latvia Double Tax Treaty

Updated on May 3,2017
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Amendment to the Singapore-Latvia Double Tax Treaty
Singapore and Latvia have agreed on an amendment to the double tax treaty already in force between them. According to the new Protocol, the withholding tax on royalties would be lower and the withholding tax on dividends will usually by capped at a fixed value. An accountant in Singapore can give you specific details on how your business will be taxed if you are a Latvian investor in Singapore.

The changes to the existing double tax treaty

According to the latest amendment to the double tax treaty between Singapore and Latvia, certain withholding taxes will have different regimes. For example, the withholding tax on dividends would have a general value capped at 10 percent. Moreover, its rate would be zero of the company receiving the dividend payment is, in fact, a corporation and not a partnership. The same rate capped at 10 percent would also apply for the withholding tax on interest for the private sector.

One of our accountants in Singapore can give you detailed information on the taxation methods for all of the main business entities that are available for incorporation. Further provisions included in the protocol include changes to the automatic exchange of tax information.

Singapore and Latvian authorities have yet to state when the new provisions will enter into force.

Taxation information for investments in Singapore

Singapore has an attractive taxation regime, one of its many qualities that attract foreign investors. Corporate taxation taxes place on a territorial level: the income derived from Singapore and foreign income remitted in Singapore is taxed. Both residents and non-residents are subject to taxation. The corporate income tax in Singapore is 17% but certain tax exemptions do apply for income up to a certain value. There is no surtax and no alternative minimum tax.

If you wold like to know more about the withholding taxes on dividends, royalties or interest please contact our accounting firm in Singapore. Our experts are also able to give you details about the other double tax treaties signed by Singapore.