Singapore and Tunisia have signed a tax treaty, which provides for low withholding tax rates and a detailed exchange of information provision.
The tax treaty was signed in Singapore on February 27, 2018, by Eng-Tay Geok Lee, Deputy Commissioner (Business Group) of the Inland Revenue Authority of Singapore, and Hatem Chahreddine Ferjani, Secretary of State for Economic Diplomacy of Tunisia’s Ministry of Foreign Affairs.
The treaty provides for a withholding tax on dividends at the rate of five percent.
Interest would be taxed at five percent of the gross amount of the interest if it is received by banks or similar financial institutions; and at 10 percent in other cases.
The withholding tax on royalties shall be five percent of the gross amount of payments received in consideration for technical services; and 10 percent of the gross amount of payments received in consideration for the use of, or the right to use, any copyright of literary, artistic, or scientific work.
The tax treaty will enter into force after its ratification by both countries.