Singapore and Switzerland
have signed the first treaty on the avoidance of double taxation
in 1975; since then, the agreement between the two states has been updated and in February 2011 a new version was signed; the new double taxation treaty (DTA)
entered into force in August 2013 and became applicable since the 1st of January 2013. If you are a Swiss investor
interested on the characteristics of the business market
available here, our lawyers in Singapore
can offer you more information on the subject.
Taxes covered by the Singapore-Switzerland DTA
between the two states is applicable to taxes on income or on elements of income
, including the taxes applicable to the movable or immovable property. The treaty
is available in Singapore
for the income tax
and in Switzerland
on the following taxes
• communal tax;
• federal tax,
• cantonal tax.
to which the treaty is applicable are not the same in the contracting states because the legislative system
applicable in Switzerland
differ; our law firm in Singapore
can present to you more details about the tax legislation
Main provisions of the Singapore – Switzerland DTA
The revisited treaty
between the two contracting states encourages trade and direct investment
between Singapore and Switzerland
. The treaty
has offered new provisions on the exchange of information for tax purposes
; it has also changed the meaning of the permanent establishment
and has lowered the rates on the withholding tax on dividends and interest
According to the Article 5 of the treaty, a permanent establishment (PE) represents the place of business in which a company carries its operations in the other contracting country; a PE can represent a branch, an office, a factory, a mine or a building site or the furnishing of services, which are considered a PE if they provided for more than 300 days in a twelve months period.
A Swiss company with operations in Singapore will pay taxes on dividends at the rates of 5% or 15% of the gross amount of the dividends; our lawyers in Singapore can explain how these rates will be applied. Interest paid by the companies will be taxed at a 5% rate in Singapore, as well as in Switzerland.