On or about 4 February 2020, an Agreement for the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance (DTA) was signed between Singapore and Indonesia.
The present DTA between the two countries has been in effect since 1992. The updates amongst other changes will incorporate the following:
- lower the withholding tax rates for royalties and branch profits
- provide for tax exemption in the source State for certain capital gains, and
- incorporate internationally-agreed standards to counter treaty abuse.
The updated DTA will benefit businesses in both countries and boost bilateral trade and investment flows between the two countries.
Source: IRAS website, 4 February 2020