Select Page

The provisions of the DBA apply to persons domiciled in one or two Contracting States. For more information on the agreement between Singapore and Thailand for the avoidance of double taxation and the avoidance of tax evasion in the context of income tax, see IRAS. Read more The list below highlights the main provisions of the Double Taxation Convention, from the taxes covered to the way a permanent establishment is defined in the Convention and can therefore benefit from these tax reductions or exemptions. The Singapore-Thailand DBA, which entered into force in 2017, is an important step towards increasing trade and investment flows between the two countries. It ensures attractive tax treatment for investors active in both countries. This agreement is particularly advantageous for many companies that send their management and other back-office functions to Singapore (see How to start a business in Singapore), while maintaining their profitable operations in Thailand. This is a structure that many multinationals use to use Thailand`s huge workforce while gaining access to Singapore`s financial services infrastructure. Singapore and Thailand have a double taxation treaty that allows investors to benefit from double taxation relief in the situation where they receive income from both countries. The Convention on the Prevention of Double Taxation and the Prevention of Fiscal Evasion establishes the taxation rights of any jurisdiction applicable to corporate profits and other types of income. The approach to avoiding double taxation of savings income is similar to the dividend approach described in the previous section.

Interest is taxed in the country where the beneficiary of the savings resides (i.e. country B). In 2019, the Monetary Authority of Singapore and the Thai Office of Insurance Commission signed a Memorandum of Understanding (MOU) to strengthen cooperation in the field of insurance supervision. This agreement promotes an effective partnership between insurance supervisors. The Memorandum of Understanding improves the framework for cooperation, exchange of information, assistance in insurance supervision between the two authorities and improves the infrastructure of the insurance system in both legal systems. In 2017, the Double Taxation Convention (DBA) between Singapore and Thailand entered into force and replaced the agreement that has been in force for more than thirty years. The current agreement amends several outdated provisions, improving trade relations between the two countries. Singapore and Thailand are actively cooperating to improve economic relations between the two countries….