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Singapore-Austria Double Tax Treaty

Singapore-Austria Double Tax Treaty

Singapore and Austria have long standing economic relations which is why in order to enhance cooperation the two governments have signed various agreements. One of these treaties refers to the elimination of double taxation with respect to the income and corporate taxes. The double tax treaty between Singapore and Austria was enforced 2003 and last amended in 2014, when a new provision on the exchange of tax information was included.

Our formation agents in Singapore can assist foreign investors, including Austrian ones, to open companies in Singapore.

Taxes covered by the Singapore- Austria double taxation agreement

The double tax treaty between Singapore and Austria refers to the income tax in the case of Singapore, and the income and corporate tax in the case of Austria. Considering the income an individual or a company earns is compiled of several elements, the double tax agreement also extends to those elements, among which:

  • – salaries;
  • – dividends payments;
  • – interests;
  • – royalties;
  • – capital gains;

– income derived from selling or renting real estate property.

Our company formation representatives can offer detailed information about the city-state’s taxation system. Our team can also assist Austrian businessmen who would like to open a company in Singapore.

Avoidance of double taxation in Singapore and Austria

According to the Singapore- Austria double taxation treaty, the elimination of double taxation will be done through tax exemptions, deductions or credit, depending on the income. For example, dividend payments fall under special tax rates of 0%, while interest and royalties payments are subject to a 5% tax rate, while income derived from real estate sales can be taxed in the country where the property is situated. Our Singapore company formation team can give you more information on how a double tax treaty works.

Special provisions apply in the case of permanent establishments of Austrian companies in Singapore, respectively Singapore companies in Austria. These are structures which will be taxed in the country where they carry out business activities, therefore a permanent establishment of an Austrian company, such as a subsidiary, may take advantage of the Singapore tax system.

Considering the advantages opening a company in Singapore has, we invite you to contact us for complete information on the city-state’s double tax convention with Austria.