Singapore-Sri Lanka revised Tax Agreement enters into force

Singapore’s Inland Revenue Service announced Tuesday that the revised Avoidance of Double Taxation Agreement (DTA) between Singapore and Sri Lanka entered into force on 31 December 2017.

Singapore and Sri Lanka signed a revised Avoidance of Double Taxation Agreement (DTA) on 3 April 2014.

Amongst other changes, the revised DTA lowers the withholding tax rates for dividends and royalties, and updates the provisions for determining permanent establishments. It also incorporates the internationally-agreed standard for exchange of information for tax purposes. These changes are expected to enhance trade and investment flows between the two countries.