Singapore-China DTA applicable to Individuals
The Singapore-China Double Tax Agreement (DTA) is an agreement between the governments of Singapore and China to avoid double taxation and prevent fiscal evasion with respect to taxes on income. The DTA was signed in 1986 and has been amended several times since then, most recently in 2022.
The DTA applies to all individuals who are residents of either Singapore or China. It covers a wide range of income sources, including:
Salaries, wages, and other employment income
Business profits
Interest, dividends, and royalties
Capital gains
Pensions and annuities
The DTA provides a number of benefits to individuals who are residents of either Singapore or China. For example, it:
Eliminates double taxation on income that is earned in one country by a resident of the other country
Reduces the withholding tax rates that are applied to certain types of income
Provides a mechanism for resolving disputes between taxpayers and tax authorities
If you are an individual who is a resident of either Singapore or China, you should be aware of the provisions of the DTA to ensure that you are not paying more tax than you are required to. You can find more information about the DTA on the websites of the Inland Revenue Authority of Singapore (IRAS) and the State Administration of Taxation (SAT).
Here are some specific examples of how the DTA can benefit individuals:
A Singaporean citizen who works in China will not have to pay tax on their income in both Singapore and China.
A Chinese citizen who receives dividends from a Singaporean company will only have to pay withholding tax at a rate of 10%, instead of the usual rate of 20%.
A Singaporean citizen who sells a property in China will not have to pay tax on the capital gain in both Singapore and China.
How Bestar can Help
Singapore-China DTA applicable to Individuals
Bestar can help individuals who are residents of either Singapore or China to benefit from the Singapore-China Double Tax Agreement (DTA) in a number of ways:
Bestar can help individuals to:
Identify the types of income that are covered by the DTA.
Determine which country has the primary taxing right for different types of income.
Claim tax credits or exemptions under the DTA.
Resolve disputes with tax authorities regarding the application of the DTA.
Bestar can also provide individuals with information and advice on the following topics:
The provisions of the DTA.
The interpretation of the DTA.
The procedures for claiming tax credits or exemptions under the DTA.
The dispute settlement mechanisms that are available under the DTA.
In addition, Bestar can help individuals to:
Prepare tax returns that are compliant with the DTA.
Represent individuals in tax audits and appeals.
Provide tax planning advice.
By working with Bestar, individuals can ensure that they are complying with the DTA and maximizing the benefits that it offers.
Here are some specific examples of how Bestar can help individuals:
A Singaporean citizen who works in China can use Bestar's services to determine which country has the primary taxing right for their income.
A Chinese citizen who receives dividends from a Singaporean company can use Bestar's services to claim a tax credit for the withholding tax that was paid on the dividends.
An individual who is moving from Singapore to China can use Bestar's services to prepare a tax return that is compliant with the DTA.
Contact Bestar today!
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