How to benefit from the Singapore double tax agreements (Expert answer)

Do you want to reduce your tax burden when doing business internationally?

Singapore’s Double Tax Agreements (DTAs) help you avoid being taxed twice, lower withholding tax, and maximize profits.

Why does this matter?

Because without a DTA, you might be bearing burdensome tax obligations on the same income in two different countries. 

Singapore has DTAs with over 100 countries, including India, Australia, and the U.S, offering major tax advantages for individuals and businesses.

In this guide, our tax and accounting experts will break down exactly how to benefit from these agreements.

We start by explaining what a double tax agreement is

1. What is a Singapore double tax agreement?

1.1. What is double taxation?

Double taxation happens when the same income is taxed twice—once in the country where it is earned and again in the country where it is received.

This often affects businesses operating in multiple countries and individuals working abroad.

For example, if a Singapore-based company earns income from a customer in the United States, both Singapore and the U.S claim the right to tax the earnings.

Similarly, an expatriate from Indonesia working in Singapore may have to pay taxes both in Singapore and Indonesia. This results in a higher tax burden and creates financial inefficiencies.

1.2. What is a Singapore double tax agreement? 

To prevent double taxation, Singapore has signed Double Taxation Agreements (DTAs) with many countries.

These tax treaties outline the tax responsibilities of each country, ensuring that income is taxed only once by Singapore or the other country, and that tax relief measures are in place.

Only tax residents of Singapore or a DTA partner country can benefit from these agreements. To qualify, individuals typically need to spend at least 183 days in Singapore within a year.

DTAs also promote transparency by allowing tax authorities to share information, helping prevent tax evasion and ensuring compliance with international tax laws.

Understanding how these agreements work is crucial for businesses and individuals engaging in cross-border activities since it can affect your salaries, your company's profits.

2. Overview of Singapore’s Double Tax Agreements

2.1. Key features of a Singapore dual tax agreements

Under a double tax dual agreement, tax benefits for qualified individuals and companies include:

• Tax exemptions for certain types of income.
• Reduced withholding tax rates on dividends, royalties, and interest.
• Foreign tax credits that allow taxes paid in one country to be deducted from tax owed in another.

For example, key features of a Singapore-Australia DTA are

2.2. Countries with which Singapore has DTAs

Today, Singapore has DTAs with 100 or more countries, with some key DTAs being Singapore-India DTA, Singapore-Australia DTA, Singapore-US DTA, Singapore-China DTA, Singapore-Malaysia DTA, and Singapore-Indonesia DTA.

To learn more about law implementations for your situations and scenarios, you can refer to the IRAS List of DTAs, Limited DTAs and EOI Arrangements.

3. How to leverage Singapore’s DTAs for tax benefits?

The benefits depend on whether you are a tax resident of Singapore or a tax resident of a country that has a DTA with Singapore.

3.1. For a tax resident of a DTA partner country with Singapore

If you are a tax resident of a country that has a DTA with Singapore, you don't have to pay tax on the same income in Singapore (depending on the scenarios and use case outlined in the DTAs).

You must provide IRAS with a Certificate of Residence, certified by your home country’s tax authority. This certificate allows you to claim relief from Singapore Income Tax under the Avoidance of Double Taxation Agreement.

For a foreigner working in Singapore on short-term employment income, under most DTAs, short-term employment income may be exempt from tax in Singapore if:

• You work in Singapore for less than 183 days in 12 months;
• Your employer is not based in Singapore.
• Your income is not paid by a permanent establishment in Singapore.

To check if you qualify for this exemption, you can use IRAS’s DTA Calculator and submit the Claim for DTA Exemption along with a Certificate of Residence (COR).

3.2. For a tax resident of Singapore

If you earn income from another country, that country can tax your earnings. However, if a DTA exists between Singapore and that country, you qualify for:

• A reduced tax rate on your foreign income;
• A full tax exemption, depending on the DTA terms.

To claim these benefits, you must provide the foreign tax authority with a Certificate of Residence (COR), proving that you are a Singapore tax resident.

3.3. How to apply for a Certificate of Residence (COR)?

A Certificate of Residence (COR) is an official document confirming your tax residency in Singapore. 

You must obtain a Certificate of Residence (COR) when applying for DTA benefits in foreign jurisdictions. You can apply for a COR through IRAS. To do it, follow the easy step-by-step guide from IRAS guidance.

Here are our tax and accounting experts' insights to increase your chances of getting a certificate of residence for companies.

• Show that the company’s control and management take place in Singapore;
• Provide board meeting minutes showing key decisions made in Singapore.
• Have operations or employees based in Singapore to strengthen residency claims.

4. What to do if you have a permanent establishment in another country?

If a company has a fixed place of business (e.g., office, factory) in another country, that country may tax its profits.

In some scenarios, even an employee or agent concluding contracts abroad can create a PE. Taxation of this PE’s profits is complex and requires expert analysis. 

You should consult with a tax expert like Global Link Asia Consulting. Ensuring proper tax structuring is key to maximizing DTA benefits while staying compliant.

5. How can we help you gain the benefits of Singapore's DTAs?

Leveraging Singapore’s DTAs helps you reduce taxes and avoid double taxation.

To make the most of these benefits, review the specific DTA provisions that apply to your income and structure your business operations accordingly.

Start by checking your eligibility and gathering the necessary documents—then use these insights to maximize tax savings and ensure compliance.

If you need expert support, Global Link Asia Consulting, with 10 years of helping companies and individuals benefit from Singapore DTAs, can help you

• Assess your tax residency 
• Identify applicable DTA benefits
• Apply for a Certificate of Residence (COR) 
• Advise on business structuring to optimize tax efficiency under DTA rules.
• Facilitate DTA claims & compliance 

Get expert guidance to maximize your tax benefits and stay compliant with international tax laws.

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6. FAQs about Singapore double tax agreement

We offer a comprehensive range of accounting and tax services for Singaporean companies. Our services include:

• Tax Consulting including corporate income tax, GST tax, contractor tax, and more.
• Monthly/Annual Tax Accounting services in accordance with Singapore accounting standards (SFRS).
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