Singapore has signed an Agreement of Double Taxation Avoidance (DTA) with Laos, which came into effect on November 11. The agreement provides clarity on tax issues and eliminates double taxation on cross-border transactions between the two countries. Among the different rules, interest that is gained in one country and paid to the residents of another country may be taxed in that country. However, the interest may also be taxed in the country where interest is generated according to its laws. Nevertheless, the tax charged cannot exceed 5 percent of the gross amount of interest in the country where the resident belongs. The agreement also provides for the reduction or exemption of tax on certain types of income. Any tax that will be charged will be assessed from January 1, 2017 despite the agreement already coming into effect.
This article was first published on www.aseanbriefing.com.
Since its establishment in 1992, Dezan Shira & Associates has been guiding foreign clients through Asia's complex regulatory environment and assisting them with all aspects of legal, accounting, tax, internal control, HR, payroll and audit matters. As a full-service consultancy with operational offices across China, Hong Kong, India and emerging ASEAN, we are your reliable partner for business expansion in this region and beyond.Back to Articles
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