On 21 February 2014, Singapore and Laos signed an Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income (the “DTA”). This was announced by the Ministry of Finance in a press release dated 24 February 2014.

The DTA will encourage and facilitate cross-border trade and investment between Singapore and Laos by providing greater clarity on taxing rights and minimising the scope of double taxation between the two countries. Among other provisions, the DTA provides for lower withholding tax rates on cross-border payments of dividends, interest and royalties. The DTA will enter into force after its ratification by both jurisdictions.

Reference materials

The following materials are available from the website of the Inland Revenue Authority of Singapore www.iras.gov.sg: