Thailand - Singapore Double Tax Treaty

Updated on Friday 03rd March 2017

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The double taxation agreement between Thailand and Singapore was signed in 1975 and entered into force a few months later. Such convention was necessary for both countries, due to the productive economic partnerships which have been recorded way back in history. If you want to benefit from the provisions of this important arrangement between Thailand and Singapore, it is recommended to solicit information and details from Thai lawyers.

Details about the Thailand – Singapore double taxation convention

The double taxation agreement between Thailand and Singapore protects the natural persons and the companies to avoid paying double taxes on salaries, royalties, dividends, wages, capital gains or other incomes. The same convention mentions the avoidance of double taxation for petroleum or similar products in Thailand or Singapore. As for the dividends, the tax rate is settled at 20%. Moreover, one should know that companies with permanent establishments in Thailand or Singapore are exempt from such fee. The capital gains which are generated by the alienation of the immovable assets are levied in the state where the property is situated. We remind that you can solicit details about the taxation system from our lawyers in Thailand.

The double tax treaty also covers the taxation of natural persons

If the entrepreneurs and their businesses are covered by the double tax treaty between Thailand and Singapore, the same goes for the natural persons who will pay the residence tax only in the country they live in. As for the wages, these will be levied according to the stipulations mentioned in the work contract signed in Thailand. The double taxation agreement between Thailand and Singapore was also created to avoid the fiscal evasion and the tax frauds. Local or foreign entrepreneurs can establish their activities in Thailand and benefit from the advantages of the interesting taxation system mentioned in the convention.

 If you want more details about the double tax treaty between Thailand and Singapore, you are invited to contact our law firm in Thailand.