The UK and Singapore have signed a second protocol to their existing Double Taxation Agreement (DTA) on February 15, amending withholding tax rates.
According to the protocol, the withholding tax rate for dividends is set at 0%, except for real estate investment trusts, which will be taxed at 15%. The headline interest withholding tax rate under the protocol is 5%, with certain entities charged at a 0% rate. Royalties will be taxed at 8%.
The treaty was originally signed in 1997, with the latest exchange of information standards inserted in 2009. These changes are expected to enhance trade and investment flows between the two countries.