Singapore and Seychelles signed an Agreement for the Avoidance of Double Taxation (DTA) on 9 July 2014 in New York. The DTA incorporates the internationally agreed Standard for the exchange of information for tax purposes.
The DTA is expected to enhance economic cooperation between both countries. Amongst other provisions, the DTA lowers withholding taxes for businesses, and provides for the exchange of information for tax purposes based on the internationally agreed Standard.
With the DTA, <a href="http://www.enterprisebizpal.com">Singapore accounting services</
Currently, Singapore has 75 comprehensive DTAs, 8 limited DTAs in force and 9 DTA signed but not ratified. The main objective of these DTAs is to minimize tax barriers to the flows of trade, investment, technical know-how and expertise between two treaty countries.
The Singapore government has initiated several business-friendly tax policies to strenghten its claim as the location of choice for MNCs to start a Singapore company and launch their operations in the Asia Pacific. “These include attractive corporate tax and personal income tax rates, ease of setting up and doing businesses, extensive network of free trade agreements, absence of capital gains tax, and lower lending rates offered by banks in Singapore.
The Singapore corporate tax rate is approximately 8.5% for profits up to S$300,000 and a flat 17% for profits above that level.
The DTA will enter into force after ratification by both countries