Thailand - Singapore Double Tax Treaty

Updated on Monday 20th February 2017

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Since the 19th century, the history has recorded successful economic collaboration between Thailand and Singapore. The two countries signed a double taxation agreement in September 1975, which entered into force four months later. After 42 years of strong partnership, the conditions related to the convention were improved, and now, a new version of the arrangement is in a debate. Our company formation agents in Thailand can provide you with information about the important treaties signed by Thailand. Besides that, you can receive help and guidelines if you want to open a company in Thailand.
 

Details about the Thailand – Singapore double tax treaty


The convention covers both persons and companies with tax residency in Thailand or Singapore related, in order to avoid the double taxation, such as:

•    income taxes;
•    capital gains taxes;
•    salaries or wages taxes;
•    dividends;
•    royalties.

It is good to know that the provisions of the agreement are applicable to petroleum and income taxes in Thailand and protects the income taxes for Singapore. As a reminder, company registration in Thailand is an important process that can be done within a few working days, if you solicit assistance from our experts in company formation in Thailand.
 

Dividend taxes


The fee on dividends in Thailand or Singapore is set at 20%, but if the company has a permanent establishment (PE) then the tax is not applicable. The corporate tax is subject to 17 percent with the mention that companies in Thailand who obtain dividends from enterprises registered in Singapore will not be levied for that share of their profits. Regarding the capital gains taxes from the alienation of immovable assets, these are subject to taxation only in the country where the property is located. Thailand handles the capital gains as ordinary incomes with levies related to the corporate income taxes reasons. 

Any Singaporean entrepreneur who wants to open a company Thailand can benefit from the pro-business tax environment. Both countries developed fruitful relationships in history, where a taxation agreement to avoid the double taxation was mandatory. 
 

Provisions stipulated for natural persons


Individuals who have residency in Thailand and Singapore will pay the residence fee in the country he lives in. Regarding the salary, the natural persons will be levied in Thailand, where the legal work contract is signed.  As a short conclusion, the double tax agreement between Thailand and Singapore offers the legal possibility to avoid the double taxation.

You are invited to contact our company formation representatives in Thailand for additional information about the double taxation agreement between Thailand and Singapore.

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