Singapore- Finland Double Taxation Treaty
Singapore- Finland Double Taxation TreatyUpdated on Tuesday 01st December 2015
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Singapore has signed a double taxation agreement (DTA) with Finland in 1982, 2002 and 2009. The Singapore – Finland DTA still applicable for both countries is the one signed in 2002, as the document signed in 2009 is a Protocol amending the Article 26 of the 2002 Double Taxation Agreement. Our law firm in Singapore can provide you with more information on the two documents regulating taxation in Singapore and Finland.
Stipulations of the Singapore- Finland taxation treaty
The treaty signed between the two parties states that the agreement is applicable to taxes on income, where income may represent the total income or parts of the income of a legal entity.
According to the Article 3, the agreement states that the taxes applied in Finland are:
• the state income tax;
• the corporate income tax;
• the communal tax;
• the church tax;
• the tax withheld at source from interest;
• the tax withheld at source from non-residents income.
In Singapore the single tax that is a part of the agreement is the Income Tax. The Agreement stipulates that the taxes for both contracting states must be identical or similar and the differences in taxes may occur due to the fact that each country has its own taxation system; if you need information on this matter, our lawyers in Singapore can offer you consultation.
Taxes under the Singapore- Finland DTA
• dividends are taxed at a rate of 5% of the gross amount of the dividends if the beneficiary is a company that controls at least 10% of the voting rights; for any other situations, the rate is 10% of the gross amount of the dividends.
• interest tax can be of maximum 5% of the gross amount of the interest in the situation in which the recipient is the beneficial owner of the interest.
• royalties arising in a contracting state that have to be paid to a resident in the other contracting state can be taxed by the latter.
Our attorneys in Singapore can provide you with an in-depth situation of the taxes stipulated in the agreement between Singapore and Finland, if you are an investor seeking to open a business.
If you need further information on the Singapore-Finland Double Taxation Treaty, please contact our law firm in Singapore, where you can receive consultation and legal representation.