Double tax agreement between Singapore and Poland
Singapore and Poland signed a double taxation treaty in 1993. The agreement was last amended in 2012 and enforced in 2014 with an effective date in January 2015. Polish investors who want to open a company in Singapore, should know that the double tax treaty between Singapore and Poland covers persons resident of one or both countries and applies to the following taxes:
- – the income and corporate taxes in Poland;
- – the income tax in Singapore.
Similar or identical taxes are also covered by the agreement. Another stipulation of the convention is that any alterations brought to the taxation system of a contracting state must be announced to the other party.
Taxes covered by the Singapore-Poland double taxation convention presented by our experts in opening companies in Singapore
Considering the income is made up of several elements, as any of Singapore’s double taxation treaties, the one with Poland will also cover various components of the total income. Among these are:
- – income from immovable property which will be taxed in the country where the property is located;
- – business profits which will be taxed in the country they arise;
- – profits from shipping and air transportation which will be taxed in the country of residence of the company operating the vessel, respectively aircraft;
- – profits of associated enterprises;
- – dividend, interest and royalties payments;
- – capital gains;
- – independent and dependent personal services;
- – directors’ fees;
- – governmental services;
- – incomes derived from professional activities;
- – pensions.
Our specialists can provide you complete information about the avoidance of double taxation in the agreement with Poland. Furthermore, if you want to open company in Singapore, our consultants are at your disposal.
Reduced tax rates in Singapore-Poland double tax treaty
The Singapore-Poland double taxation treaty provides for the following reduced rates:
- – a 5% rate on dividend payments where the recipient holds at least 10% of the shares in the paying company;
- – a 10% rate on all other dividend payments;
- – a maximum 5% on the gross amount of interest payments;
- – a 2% rate on royalties payments resulted from the use of commercial, industrial or scientific equipment;
- – a 5% rate on royalties payments in all other cases.
For complete information about the double taxation agreement with Poland, do not hesitate to contact our consultants in company registration in Singapore.