According to the latest statistics Singapore was one of the largest investors in Thailand since 2012 on. However, the two countries have had economic ties since the 1970ies when then signed their first double taxation agreement. In the last few years, Singapore has started updating all its double taxation treaties and the one with Thailand was amended in 2015. The new convention will become effective on January 1st, 2017.
Our lawyers in Singapore can offer information on the current provisions of the double tax treaty with Thailand.
The new double taxation agreement between Singapore and Thailand provides for improved conditions for Thai and Singapore companies working in the other country. This means, the permanent establishment status has been reassessed in order to provide for a longer period of time for branch offices or subsidiaries or other types of facilities to engage in commercial activities on the other country’s territory. It is best to verify with a law firm in Singapore how permanent establishments are taxed under the new double tax treaty with Thailand.
The 2015 Singapore-Thailand double tax agreement also provides for reduced rates related to the taxation of dividends, interests and royalties.
The new treaty for the avoidance of double taxation between Singapore and Thailand provides for the following taxes:
The 2015 Singapore-Thailand double tax convention also specifies the following reduced rates:
For full information on taxation in the city-state, please feel free to contact our attorneys in Singapore.
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