IRAS has published an e-Tax Guide — Avoidance of Double Taxation Agreements (DTAs) on 11 October 2017, a guidance on the interpretation and application of Singapore’s DTAs.

As Singapore is not a member of OECD, although the OECD Model Tax Convention and the UN Model Tax Convention serve the framework for Singapore’s DTAs, each Singapore’s DTA must read and interpreted separately in accordance with that DTA  for wording and the IRAS interpretations.

For example, in the IRAS e-Tax Guide on Income Tax Guide on E-Commerce, IRAS has ruled that a server located in Singapore does not create/constitute a PE, which is contrary to paragraphs 42.1 to 42.10 of the OECD Commentary on Art 5 Concerning the Definition of Permanent Establishment (on E-commerce).

Another example, in the Singapore-Philippines DTA, the creation of a Permanent Establishment (PE) does not have a containing period (i.e., 6-months in a calendar year) but for a period or periods aggregating 183 days. It may therefore be read and interpreted that the 183 days for a deemed PE does not have a containing period.

Source: IRAS, 17 October 2017