Singapore - Austria Double Tax Treaty

The double tax agreement between Singapore and Austria

Singapore and Austria have good trading relations which is why they have also concluded a double taxation treaty in order to encourage these relations. The agreement was signed in 2001 and enforced in 2003 by both Singapore and Austria. Two more protocols to the treaty were added in 2009 and 2011. The provisions of the convention cover the following taxes:

• -          the income and corporate taxes in Austria;
• -          the income tax in Singapore.

The Singapore-Austria double taxation agreement covers natural persons and corporate entities and applies to the total income and elements composing it. Similar taxes levied in both countries are also covered by the convention.

Elements of the income covered by the Singapore-Austria double taxation treaty

Where necessary, the total income stipulated in the agreement for the avoidance of double taxation between Singapore and Austria was broken down into elements as it follows:

• -          income derived from immovable property;
• -          business profits;
• -          income derived from employment;
• -          directors’ fees;
• -          income derived from shipping and air transportation;
• -          income of associated enterprises;
• -          capital gains;
• -          income of permanent establishments.

Our lawyers in Singapore can provide you with a full list of all elements of the income covered by the tax treaty with Austria.

The avoidance of double taxation will be done through tax deductions or exemptions in Austria, depending on the type of tax levied in Singapore. Avoidance of double taxation in Singapore will occur through a credit against the tax applied in Austria.

Reduced tax rates under the Singapore-Austria double tax convention

In the category of incomes benefiting from reduced tax rates are dividends, interests and royalties. The following rates apply to these payments:

• -          dividends are subject to a 0% tax rate;
• -          royalties benefit from a 5% tax rate on the gross amount.

Interest payments benefit from a 0% rate when paid to the government, central banks of both countries or on loans as a measure of encouraging exports. In all other cases, interests are taxed at a 5% rate.

For complete information about the provisions of the double taxation agreement with Austria, do not hesitate to contact our Singapore lawyers.