{"id":841,"date":"2023-06-01T09:06:16","date_gmt":"2023-06-01T09:06:16","guid":{"rendered":"https:\/\/opencompanysingapore.com\/singapore-thailand-double-tax-treaty\/"},"modified":"2023-07-14T12:34:43","modified_gmt":"2023-07-14T12:34:43","slug":"singapore-thailand-double-tax-treaty","status":"publish","type":"post","link":"https:\/\/opencompanysingapore.com\/singapore-thailand-double-tax-treaty\/","title":{"rendered":"Singapore \u2013 Thailand Double Tax Treaty"},"content":{"rendered":"\n<p><strong>Singapore and Thailand<\/strong>&nbsp;have signed a new&nbsp;<a href=\"https:\/\/www.opencompanysingapore.com\/double-tax-treaties-in-singapore\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Double Taxation Agreement (DTA)<\/strong><\/a>&nbsp;in June 2015, replacing the previous treaty, signed in 1975. The new agreement has been signed in order to ratify several provisions that were outdated and to improve commercial relationships between the companies of the two states. As an investor interested in&nbsp;<a href=\"https:\/\/www.opencompanysingapore.com\/company-registration-in-singapore\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>opening a company in Singapore<\/strong><\/a>, you should know that the latest agreement offers better conditions for businesses, as it had&nbsp;<strong>lowered the withholding taxes on interest, dividends and royalties<\/strong>.&nbsp;<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #002e5b;color:#002e5b\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #002e5b;color:#002e5b\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/opencompanysingapore.com\/singapore-thailand-double-tax-treaty\/#revised-singapore-thailand-dta\" title=\"Revised Singapore- Thailand DTA&nbsp;\">Revised Singapore- Thailand DTA&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/opencompanysingapore.com\/singapore-thailand-double-tax-treaty\/#new-provisions-under-the-singapore-%e2%80%93thailand-treaty\" title=\"New Provisions under the Singapore \u2013Thailand Treaty\">New Provisions under the Singapore \u2013Thailand Treaty<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"revised-singapore-thailand-dta\"><\/span><strong>Revised Singapore- Thailand DTA&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The new agreement signed between<strong>&nbsp;Singapore and Thailand&nbsp;<\/strong>aligns with the model tax imposed by the&nbsp;<strong>Organisation for Economic Cooperation and Development (OECD)<\/strong>. The Agreement hasn\u2019t been ratified yet, as the law in Singapore states that the provisions of the document will be applicable from the 1st January of the next year in which the treaty was signed. If you need more information on the&nbsp;<strong>applicable tax law for foreign companies<\/strong>,&nbsp;<a href=\"https:\/\/www.opencompanysingapore.com\/about-us\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>our specialists in Singapore company formation<\/strong><\/a>&nbsp;can offer consultations on this subject.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"new-provisions-under-the-singapore-%e2%80%93thailand-treaty\"><\/span><strong>New Provisions under the Singapore \u2013Thailand Treaty<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The latest treaty improved conditions for investors seeking to&nbsp;<a href=\"https:\/\/www.opencompanysingapore.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>open a company in Singapore<\/strong><\/a>, as many taxes that must be paid by these have been considerably lowered. The most important provisions are the following:<\/p>\n\n\n\n<p>\u2022 <strong>permanent establishment<\/strong>&nbsp;&#8211; (PE) the definition has been modified and, according to the new treaty, the threshold for establishing a PE was lengthened from 6 months to 12 months;<\/p>\n\n\n\n<p>\u2022 <strong>the furnishing of services<\/strong>&nbsp;are also considered a permanent establishment as long as the activities of the company in the other contracting state are longer than 183 days in a year period;<\/p>\n\n\n\n<p>\u2022 <strong>the withholding tax on dividends<\/strong>&nbsp;will be reduced from 20% to 10% if the recipient is the beneficial owner of the dividends and a resident in the other contracting state;&nbsp;<\/p>\n\n\n\n<p>\u2022 <strong>the withholding tax on interest<\/strong>&nbsp;will also be modified from 25% to 15% if the recipient is the beneficial owner of the interest and a resident in the other contracting state;<\/p>\n\n\n\n<p>\u2022 <strong>royalties<\/strong>&nbsp;definition has been modified to incorporate the right to use industrial, scientific or commercial equipment; also, the present withholding tax rate on royalties (15%) will be reduced to 5%, 8% or 10%;&nbsp;<strong>our specialists<\/strong>&nbsp;can offer you more details on the new taxes on royalties will be applied.&nbsp;<\/p>\n\n\n\n<p>If you want to&nbsp;<a href=\"https:\/\/www.opencompanysingapore.com\/general-guide-to-company-incorporation-singapore\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>open a company in Singapore<\/strong><\/a>&nbsp;and you want to know more information about the applicable law under the new&nbsp;<strong>Singapore \u2013 Thailand double taxation treaty<\/strong>, please&nbsp;<a href=\"https:\/\/www.opencompanysingapore.com\/contact\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>contact our consultants in company formation<\/strong><\/a>, who can offer you assistance according to your company\u2019s needs.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Singapore and Thailand&nbsp;have signed a new&nbsp;Double Taxation Agreement (DTA)&nbsp;in June 2015, replacing the previous treaty, signed in 1975. The new agreement has been signed in order to ratify several provisions that were outdated and to improve commercial relationships between the companies of the two states. As an investor interested in&nbsp;opening a company in Singapore, you [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":539,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[8,474,473,11,475],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Singapore \u2013 Thailand Double Tax Treaty<\/title>\n<meta name=\"description\" content=\"Our specialists in opening companies in Singapore can offer information about the provisions under the Singapore-Thailand double tax treaty.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/opencompanysingapore.com\/singapore-thailand-double-tax-treaty\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" 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