Serbia and Singapore – Double taxation agreement
SERBIA AND SINGAPORE – DOUBLE TAXATION AGREEMENT
The double taxation agreement, which was concluded between the Republic of Serbia and Singapore and, due to the COVID-19 pandemic, signed in February of the current year in Belgrade and in April of the current year in Singapore, was published in the Official Gazette in July of the current year, which significantly contributed to the development and improvement of bilateral business relations and financial cooperation between legal and natural persons – residents of the two countries.
This agreement is a legal framework for more efficient business conditions and Serbian economy competitiveness in Singapore, as well as Singaporean economy competitiveness in Serbia. The signing of this agreement creates preconditions for Singaporean investors to make significant investments in Serbian economy and enter our market.
As of January 1, 2022, the Double Taxation Agreement shall be applied to all tax liabilities incurred in Serbia on January 1, 2022 or after this date.
In Singapore, the Double Taxation Agreement shall be applied to withholding taxes, amounts that are paid or that are subject to payment starting from or after January 1, 2022, i.e. to the taxes (except withholding taxes) determined in respect of the income for any apportionment year starting on January 1 or after January 1, 2023.
What are the concessionary withholding tax rates on dividends, interests, royalties introduced by this DTA, which the country that is the source of income can apply when making a payment to a resident of another signatory country:
Dividends
– 5% of gross dividends if the true owner is a company that directly owns at least 25% of the capital of the company that pays a dividend;
– 10% of gross dividends in all other cases
(there is an exception when the dividends incurred in one contracting country are paid to the government of the other contracting country; the exemption is made in terms of the first-mentioned contracting country)
Interests
– 10% of gross interest
(there is an exception when the dividends incurred in one contracting country are paid to the government of the other contracting country; the exemption is made in terms of the first-mentioned contracting country)
Royalties
– 5% of gross royalties (for the use or the right to use copyrighted artistic, scientific, literature works, including software, etc.)
– 10% of gross author’s royalties (for the use or the right to use patents, models, drafts or trademarks and industrial property rights in general, commercial or scientific equipment and industrial, commercial or scientific experience, professional knowledge know-how)
By signing this DTA in 2021 and its entry into force on January 1, 2022, Serbia will expand its network of signed double taxation agreements to 61 countries.
