The Singapore-India Double Tax Treaty

Singapore-India DTA

Snapshot

The table below provides an at-a-glance summary of the key features of the Singapore-India DTA.

Topic	Treaty provisions
Scope of DTA	Tax residents of Singapore and tax residents of India.
Taxes Covered by the DTA	Income tax.
Income from Immovable Property	在该物业所在的国家征税。
Business Profits	Taxed in the country in which the enterprise is present.
Airline/Shipping Profits	Taxed in the operator’s country of residence.
Dividends	– Indian tax on dividends received by Singapore-resident shareholders from an Indian company: 15% on gross dividend income.- Singapore tax exemption for dividends received by Indian-resident shareholders from a Singapore company.
感兴趣	Taxed at a rate of 15% in the country in which the interest income arises (i.e. source country). May be taxed in recipient country as well.
Royalties	Taxed at a rate of 10% in the country in which the royalty income arises (i.e. source country). May be taxed in recipient country as well.
Fees for Technical Services	Taxed at a rate of 10% in the country in which the income arises (i.e. source country). May be taxed in recipient country as well.
Directors’ fees	Taxed in the country in which the company paying the fees is resident.
Personal/Professional Services Income	Taxed in the recipient’s country of residence. Tax exemptions apply under certain conditions (see below).
Employment Income	Taxed in the country in which employment is exercised. Tax exemptions apply under certain conditions (see below).
Income of Artists and Sportsmen	Taxed in the country in which the activities are performed. Tax exemptions apply under certain conditions (see below).
Non-government Pension & Annuity	Taxed in the recipient’s country of residence.
Government Payments	Remuneration of government officials is taxed by the relevant government unless the official is a permanent resident or citizen of the country in which the services are performed.
Payments made to Visiting Students or Trainees	海外付款或总线访问学生iness apprentices for their education, training or maintenance are exempt from tax in the visiting country in which they are pursuing their education or training.
Payments made to Visiting Teachers or Researchers	Payments made to visiting teachers or researchers for their teaching services or research activities are exempt from tax in the visiting country in which they are offering their teaching services or conducting research.
Method of Relieving Double Taxation	In India: Relief by deductionIn Singapore: Tax credit relief

Scope of DTA

The tax treaty provisions apply to tax residents of Singapore and India. Note however that the benefits of the Protocol do not extend to a shell company that claims to be a resident of either of the contracting countries. A shell company is any legal entity falling within the definition of ‘resident’ with negligible or nil business operations or with no real and continuous business activities carried out in that contracting country. A resident of a contracting country is deemed to be a shell company if its total annual expenditure on operations in that contracting country is less than S$200,000 or Rs. 50,00,000 as the case may be, in the immediately preceding period of 24 months from the date the gains arise.

Taxes covered by the DTA

• In India: Income Tax including any surcharges.
• In Singapore: Income Tax.

从不动产收入税收

从直接使用或放手或任何其他形式使用不动产形式的收入可能会在该财产所在的国家征税。这包括企业的房地产收入以及来自不动产的收入，用于开展专业服务。什么构成不动产取决于财产所在国家的法律。请注意，船舶和飞机不构成不动产。

Taxation of Business Profits

Business income or profits of an enterprise are taxable in the country in which the enterprise is resident. However, if the enterprise carries out business in the other contracting country through a permanent establishment situated in that contracting country, then the profits or income derived from that permanent establishment alone will be liable to tax in the other contracting country.

Taxation of Shipping and Air Transport Income

• Profits derived from the operation of ships or aircraft in international traffic by a resident of one contracting country is liable to tax in that country only (i.e country of residence of the operator).
• Shipping and air-transport income includes:
  • Profits from participation in a pool, a joint business, or an international operating agency engaged in the operation of ships or aircraft.
  • 感兴趣on funds connected with the operation of ships or aircraft in international traffic.
  • Profits derived from the transportation by sea or air of passengers, mail, livestock or goods carried on by the owners or lessees or charterers of the ships or aircraft including profits from:
    • The sale of tickets for such transportation on behalf of other enterprises;
    • sh的偶然的租赁ips or aircraft used in such transportation;
    • The use, maintenance or rental of containers (including trailers and related equipment for the transport of containers) in connection with such transportation; and
    • Any other activity directly connected with such transportation.

Taxation of Dividend Income

• Dividends paid by a company that is a resident of one contracting country to a resident of the other contracting country may be taxed in that other country (i.e recipient’s country of residence). However, such dividends may also be taxed in the source country as follows:
  • 15% of the gross amount of the dividends. Note however, that if the recipient is a company that owns at least 25% of the shares of the company paying the dividends then a reduced tax rate of 10% of the gross amount of the dividends will apply.
  • Since there is no dividend tax in Singapore, Indian-resident shareholders who derive dividends from a Singapore-resident company or a Malaysian-resident company that has a source of profit in Singapore, are exempt from Singapore tax on the dividend income.
• 注意,上述趋势相关的条款d income do not apply if the recipient of the dividend income: a) has a permanent establishment in the country in which the company paying the dividend is resident or b) performs independent personal services from a fixed base that is situated in the country in which the company paying the dividend is resident, and that the holding giving rise to the dividends is effectively connected with that permanent establishment or fixed base. In such cases, the dividend income will be treated as income of the permanent establishment or as income derived from the performance of personal services and will be taxed accordingly.
• 股息收入是指股份或其他企业权利的收入，这些企业权利将与股份收入相同的税收处理。

Taxation of Interest Income

• 感兴趣arising in a contracting country and paid to a resident of the other contracting country may be subject to taxation in the recipient country. However, such interest may also be taxed in the source country as follows:
  • 如果此类利益按照载于Bona FIDE银行业务或类似金融机构（包括保险公司）授予的银行授予的贷款（包括保险公司）支付贷款的10％;
  • 15% of the gross amount of the interest in all other cases.

• 请注意，如果利息收入的受士人员在利息收入或B）从位于内部的固定基地中履行国家/地区，上述与利息收入的上述条款不适用。利息收入产生的国家，并导致债务产生的债务有效地与该常设建立或固定基地相关联。在这种情况下，利息收入将被视为常驻企业的收入，或者作为履行个人服务履行的收入，并相应征税。
• 如果由于借款人和贷方之间存在的特殊关系，所支付的利息超过了两国在没有这种关系中达成的金额，上述税率仅适用于此商定的金额而非支付的超额金额。
• 利息收入是指政府证券的收入;债券或债券的收入，包括保险费和奖品附上该证券，债券或债券;或任何其他债务索赔是否由抵押贷款保障。

Taxation of Royalties

• 签约国家和其他缔约国的居民支付的版税收入可能会在受援国征税。但是，特许权使用费也可以在源自国有国家的汇率征收使用或权利使用文学，艺术或科学工作的任何版权，包括用于无线电或用于无线电的胶卷或电视广播;任何专利;商标;设计或型号;计划;秘密公式或过程;或有关工业，商业或科学经验的信息，包括来自任何这样的权利，财产或信息的异化以及使用或权利使用任何工业，商业或科学设备的获益。它不包括收到用于共享技术知识，经验，技能，专业知识或流程的付款。
• 注意,上述专利相关的条款income do not apply if the recipient of the royalty income: a) has a permanent establishment in the country in which the royalty income arises or b) performs independent personal services from a fixed base that is situated in the country in which the royalty income arises, and that the right, property or contract in respect of which the royalties are paid is effectively connected with that permanent establishment or fixed base. In such cases, the royalty income will be treated as income of the permanent establishment or as income derived from the performance of personal services and will be taxed accordingly.
• If due to a special relationship that exists between the payer and the recipient of the royalties, the amount of royalties paid exceeds an amount which both the parties might have agreed upon in the absence of such a relationship, the above tax rate will apply only to this agreed upon amount and not the excess amount paid.

Taxation of Fees for Technical Services

• Fees for technical services arising in a contracting country and paid to a resident of the other contracting country may be subject to taxation in the recipient country. However, technical services fees may also be taxed in the source country at 10% of gross amount of fees.
• Note that the above provisions relating to technical services fees do not apply if the recipient of the fees: a) has a permanent establishment in the country in which the fees arises or b) performs independent personal services from a fixed base that is situated in the country in which the fees arises, and that the right, property or contract in respect of which the fees are paid is effectively connected with that permanent establishment or fixed base. In such cases, the fees will be treated as income of the permanent establishment or as income derived from the performance of personal services and will be taxed accordingly.
• If due to a special relationship that exists between the payer and the recipient of the fees, the amount of fees paid exceeds an amount which both the parties might have agreed upon in the absence of such a relationship, the above tax rate will apply only to this agreed upon amount and not the excess amount paid.
• Fees for technical services includes payments made for services of a managerial, technical or consultancy nature.

Taxation of Directors’ Fees

董事的费用或其他类似的付款by the resident of one contracting country in his capacity as a director of a company that is resident in the other contracting country will be taxed in that other contracting country. In other words, directors’ fees are liable to taxation in the country in which the company paying the fees is resident.

Taxation of Professional Services Income

• Income derived by the resident of one contracting country in relation to personal or professional services is subject to tax only in that contracting country except under the following circumstances, in which case the income is liable to taxation in the other contracting country as well:
  • If the person regularly performs activities from a fixed base in the other contracting country; in such cases only that portion of income that is attributable to the fixed base is liable to taxation in the other contracting country.
  • If the person stays in the other contracting country for 90 days or more in a given fiscal year; in such cases only that portion of income derived from activities performed in that other contracting country may be taxed in that other contracting country.
• 专业服务包括独立科学，文学，艺术，教育或教学活动，以及医生，外科医生，律师，工程师，建筑师，牙医和会计师的独立活动。

Taxation of Employment Income

• 就业的薪水，工资和其他类似的报酬将在行使就业的国家征税。但是，就业收入将在受援国的居住国含税，而不是在下列情况下行使就业的缔约国：
  • The individual spends 183 days or less in the country in which employment is exercised for a given fiscal year.
  • The remuneration is paid by, or on behalf of, an employer who is not a resident of the country in which the employment is exercised.
  • The remuneration is not borne by a permanent establishment or a fixed base in the country in which the employment is exercised.
  • The remuneration is derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic.

Taxation of Income Derived by Artists and Sportsmen

艺术家（即剧院，电影，广播或电视艺术家或音乐家）和运动员的收入将在活动中进行征税。但是，如果活动完全或基本上从其他缔约国的公共资金支持，而不是活动所在的国家，那么此类收入将在其他缔约国征税。

政府服务薪酬和养老金的税收

• Remuneration and pension paid by the government of one contracting country to any individual for services rendered on behalf of that government is taxable in that contracting country only, except in cases where the individual is a resident and a citizen of the other contracting country. In other words, remuneration and pension paid by the Government of India to any individual for services rendered on behalf of the Indian Government is exempt Singapore tax, except in cases where the individual is resident in Singapore and is not a citizen of India. Similarly, remuneration and pension paid by the Government of Singapore to any individual for services rendered on behalf of the Singapore Government is exempt from tax in India, except in cases where the individual is resident in India and is not a Singapore citizen.
• Note that the above provisions do not apply to income from services rendered in connection with a Government business enterprise (i.e. a trade or business carried on by a Government for purposes of profit).

非政府养老金和年金的税收

• Non-government pension and annuity (i.e. pension and annuity that is not connected to services rendered in the discharge of Governmental functions) is subject to taxation in the recipient’s country of residence.
• Pension refers to a periodic payment made for past services rendered or compensation for injuries received in the course of performance of services.
• Annuity refers to a stated sum payable periodically at stated times during life or during a specified period of time, under an obligation to make the payments in return for adequate and full consideration in money or money’s worth.

Taxation of Payments Made to Students and Trainees

• Students and business/technical apprentices who are residents of one contracting country and are presently visiting the other contracting country solely for education or training will not be taxed in this other contracting country on:
  • Payments received from overseas for their maintenance, education, study, research or training.
  • 任何收到的任何金额作为学习，研究或培训的拨款，津贴或奖项。
  • Any remuneration not exceeding US$500 per month or its equivalent in local currency in respect of services performed in connection with study, research or training or for the purposes of maintenance.

Taxation of Payments Made to Teachers and Researchers

Visiting teachers and researchers who are residents of one contracting country and are presently visiting the other contracting country solely for the purpose of teaching or research at an educational institution for a maximum period of up to two years will not be taxed in this other contracting country on any remuneration for such teaching or research. Note that this not apply to income from research, if such research is undertaken primarily for the private benefit of a specific person.

相关企业利润税收

Where an enterprise of one contracting country participates directly or indirectly in the management, control or capital of an enterprise of the other contracting country, and conditions are imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, may be included in the profits of that enterprise and taxed accordingly.

Taxation of Capital Gains

• Gains derived by a resident of one contracting country from the alienation of immovable property that is situated in the other contracting country may be taxed in that other country.
• Gains derived by an enterprise or resident of one contracting country from the alienation of movable property of its permanent establishment or fixed base that is situated in the other contracting country may be taxed in that other contracting country.
• Gains from the alienation of ships or aircraft operated in international traffic or movable property pertaining to the operation of such ships or aircraft are taxable in the recipient’s country of residence.
• Any other gains are taxable in the recipient’s country of residence.

Note: Singapore has abolished capital gains tax.

Double Taxation Relief

• In India: India offers its residents double taxation relief by deduction i.e. domestic tax is applied on the income after deducting Singapore tax suffered.
• In Singapore: Singapore offers its residents tax credit relief for double taxation of income. In other words, Indian tax paid in respect of income from sources within India shall be allowed as a credit against Singapore tax payable in respect of that income.

Exchange of Information

• The tax authorities of the contracting countries shall exchange tax information as and when necessary.
• The information exchanged will remain confidential and will only be disclosed to persons (including a court or administrative body) concerned with the assessment, collection,e enforcement or prosecution in respect of the taxes covered by the DTA.
• There will be no disclosure of any trade, business, industrial or professional secret or trade process.

For more details on the specific provisions covered under the tax treaty between Singapore and India, please refer toIRAS Website.

For general information on Singapore DTAs, refer toSingapore Double Taxation Agreements (DTA) Guide.