Seychelles and Singapore sign double taxation avoidance agreement
The agreement is expected to encourage trade and investment between the two countries.
An agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income (DTA) between the Seychelles and Singapore which was signed earlier this month in New York is the latest in this quest by the Indian Ocean island nation.
Facilitating trade between the Seychelles and other nations is part of ongoing efforts to open up and modernise the country’s economy, following a successful five-year IMF-backed economic reform programme launched in 2008 by Seychelles’ President James Michel.
According to the Seychelles foreign affairs ministry the agreement was signed in New York between the Seychelles Ambassador to the United Nations, Marie-Louise Potter and her Singaporean counterpart, Karen Tan.
Under the agreement, dividends paid by a company which is registered in one of the countries to a company or individual that is a resident of the other will only be liable for taxation in the other country, unless the beneficiary of the dividends, being a resident of one of the countries, has set up a permanent business establishment in the other country. ■