(January 16, 2015)
On January 15, 2015 Singapore and Uruguay signed an Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital (Hereafter: DTA). Although the DTA has been signed, it has not yet entered into force. The DTA will enter into force after both countries have finalized their respective ratification processes.
Based on Article 2 of the DTA, the existing taxes to which the Agreement shall apply are in particular:
a) in Singapore:
i. the income tax
b) in Uruguay:
i. the tax on business income (Impuesto a las Rentas de las Actividades Económicas -IRAE-);
ii. the tax on personal income (Impuesto a las Rentas de las Personas Físicas -IRPF-);
iii. the non-residents income tax (Impuesto a las Rentas de los No Residentes -IRNR-)
iv. the tax for social security assistance (Impuesto de Asistencia a la Seguridad Social -IASS-); and
v. the capital tax (Impuesto al Patrimonio -IP-);
With respect to permanent establishments the DTA a.o. determines that the permanent establishment also encompasses:
a) a building site, a construction, assembly or installation project or supervisory activities in connection therewith, but only if such site, project or activities last more than 270 days;
b) the furnishing of services, including consultancy services, by an enterprise of a Contracting State through employees or other personnel engaged by the enterprise for such purpose, but only if activities of that nature continue (for the same or a connected project) within the other Contracting State for a period or periods aggregating more than 183 days within any twelve-month period.
The permanent establishment article furthermore contains a paragraph that determines that an insurance enterprise of a Contracting State shall, except in regard to re-insurance, be deemed to have a permanent establishment in the other Contracting State if it collects premiums in the territory of that other State or insures risks situated therein through a person other than an agent of an independent status to whom paragraph 7 applies.
Under Article 10 of the DTA dividend withholding taxes are maximized at 5 per cent of the gross amount of the dividends if the beneficial owner is a company (other than a partnership) which holds directly at least 10 per cent of the capital of the company paying the dividends and 10 per cent of the gross amount of the dividends in all other cases.
Under Article 11 of the DTA interest withholding taxes are maximized at 10 per cent of the gross amount of the interest if the beneficial owner of the interest is a resident of the other Contracting State.
Under article 12 of the DTA Royalty withholding taxes are maximized at 5 per cent of the gross amount of the royalties for the use of, or the right to use, any copyright of literary, artistic or scientific work, including cinematograph films, or films or tapes used for radio or television broadcasting and 10 per cent of the gross amount of the royalties in all other cases if the beneficial owner of the royalties is a resident of the other Contracting State.
Article 26 of the DTA contains provisions arranging the Exchange of Information.
For more information click here to be forwarded to the full text of the DTA as published on the website of the Inland Revenue Authority of Singapore.
If you are interested in efficiently locating texts of more DTAs then click here to be forwarded to our section DTAs where you can link to numerous governmental websites on which you can find links to the texts of DTAs as concluded by that State.
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