WWLegal.com :: Ratification Of Double Taxation Agreement Between Singapore And Egypt

Ratification Of Double Taxation Agreement Between Singapore And Egypt
Posted on Friday, January 30, 2004 - 10:55 AM

An Agreement between the Government of the Republic of Singapore and the Government of the Arab Republic of Egypt for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income enters into force on 27 Jan 2004 following the completion of ratification process. Its provisions shall apply generally with effect from Year of Assessment 2006.
To eliminate double taxation, Egypt will allow tax paid in Singapore as a credit against Egyptian tax on income arising in Singapore. In the case of dividends received from Singapore, the Singapore tax on that portion of the profits out of which the dividends are paid also qualifies for tax credit in Egypt if the Egyptian company owns at least 10% of the share capital of the Singapore company.

Singapore will also allow tax paid in Egypt as a credit against Singapore tax on income arising in Egypt under similar conditions. In addition, Singapore will grant tax sparing credit for Egyptian tax exempted or reduced in accordance with Egyptian tax laws relating to incentives for the promotion of economic development in Egypt. The provision of tax sparing will apply for the first ten years for which the Agreement is effective.

With the coming into force of this Agreement, Singapore now has in force Double Taxation Agreements with 47 countries. The full text of the Agreement is available on the Inland Revenue Authority of Singapore’s (IRAS) website at www.iras.gov.sg.

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