On or about 3 Jan 2022, the Agreement between Singapore and Jordan for the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance (“DTA”) was signed on 14 Jul 2021, entered into force on 30 December 2021.
The DTA will lower barriers to cross-border investment and boost trade and economic flows between the 2 countries by clarifying the taxing rights of both countries on all forms of income flows arising from cross-border business activities, and minimising the double taxation of such income.
The withholding tax rates under the DTA are as follows:
- dividends — 5%/8% (since Singapore’s domestic withholding rate for dividends is nil, dividends will be exempted from withholding tax under domestic law in Singapore)
- interest — 5%; exempted from tax if paid to the governments
- royalties — 5%.