Singapore and Ghana have recently signed a double tax agreement
. While Singapore is a jurisdiction that does not impose a withholding tax on dividends, this will allow for reduced withholding tax rates
for investors in Ghana. Also, reduced rates for interest and royalties are possible under the treaty.
The double tax agreement is an important document with respect to the taxation rights of the two jurisdictions: it stipulates which jurisdiction may impose its own profit taxes
on the income produced by a foreign natural or legal person. This is very important for branches in Singapore for example, and vice-versa, as their income will not be taxed twice both in Singapore and in Ghana.
The new tax rates will come into force starting with January 1 following the ear in which both countries ratify the treaty.
An accountant in Singapore
can give you further details on how this treaty will influence the taxation of your company if you are an investor from Ghana who derives income from Singapore.
Singapore imposes no withholding tax on dividends. This tax does apply however to interest paid to a non-resident. A property tax and a stamp duty tax apply in Singapore.
The city has a broad double tax treaty
network. These types of agreements are also in place with countries like Malaysia or China. Singapore has signed more than 80 double tax treaties with countries worldwide. These agreements allow for a better international cooperation and encourage foreign investments in the city.
If you would like to know more about the taxes for companies in Singapore and other matters concerning business and personal taxation, please contact our accounting firm in Singapore