New Zealand Singapore Double Tax Agreement
New Zealand currently has a double taxation agreement with Singapore, which prevents tax liabilities from both countries from being double-taxed. This generally applies to income from work in Singapore, as income from foreign sources is tax-exempt in Singapore. Currently, both countries do not tax capital gains on the sale of real estate. To understand how a DBA works, we must first learn what can lead to double taxation. Double taxation is due to the fact that tax rules may vary from country to country: see Singapore`s list of tax treaties to find out if your country has a tax treaty with Singapore and know the specific provisions of this DBA. An overview of the comprehensive bilateral tax treaty between Singapore and India to avoid double taxation of income. Find out more here. How long is the application for the Double Taxation Convention (DBA) for Singapore? In New Zealand: for withholding tax from 1 October 2010; provisions, usually for income years from April 1, 2011. In Singapore: Refer to the frequently asked questions below. See Article 25 of the agreement. The increasing integration of economies around the world has led to an increase in cross-border revenue flows. Due to a conflicting tax policy between countries, this can result in double taxation of certain types of income. Singapore not only ensures that such double taxation does not occur when a company operates from Singapore or with Singapore, but it goes further by explicitly exempting from taxation in Singapore all income from foreign sources in a Singapore company, provided it meets certain criteria.
In most cases, it is easy to qualify for this exception. But in the unlikely situation where your company`s foreign income is not being honored, Singapore`s double taxation conventions or unilateral tax credits will ensure that you do not pay taxes on those income. A DBA is an agreement between two countries that aims to avoid double taxation of taxpayers` income that can flow between the two countries. The cancellation of double taxation conventions is intended to eliminate this unfair penalty and encourage cross-border trade. If you are doing business with (or since) Singapore of a DTA country, it is unlikely that you will face double taxation. In addition, Singapore also grants unilateral tax credits to its resident companies in the event of double taxation by countries where Singapore does not have a DBA. It is therefore unlikely that a Singapore-based company will face double taxation. The themes discussed are: the development of international trade and multinationals has increased the need to address the issue of double taxation. As a company or individual looking for business opportunities and investments beyond your own country, you would of course deal with the problem of taxation, especially if you will have to pay twice taxes on the same income in the host country and in your country of origin. As a result, you are trying to structure your operations to optimize your tax position and reduce costs that, in turn, would increase your global competitiveness. It is the relevance of the DBA or Singapore`s tax treaties that comes into play.
A DBA regulates the rules applicable to these and other similar situations in which double taxation may occur because the tax rules of the two countries are in conflict or are ambiguous. The DBA defines each country`s tax duties and sets specific provisions for tax credits, tax breaks or exemptions, in order to avoid double taxation of income from economic activities between the two countries. Indeed, a DBA can go far beyond and in certain situations (for example. B where the two contracting countries promote trade between them and provide tax savings credits), it may result in a net tax lower than that imposed by the two countries; The recently modified DBA between India and Singapore is a good example.