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Singapore/Australia double taxation agreement



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TREASURER URELEAS^Jj NO EMBARGO

STATEMENT BY THE TREASURER, THE HON P.J. KEATING, MP

SINGAPORE/AUSTRALIA DOUBLE TAXATION AGREEMENT

Officials of Singapore and Australia met in Canberra in the week

30 January to 3 February for a second round of negotiations for

an amending protocol to the comprehensive double taxation

agreement between the two countries. A first round of

negotiations had been held in Singapore in February 1988.

The discussions were necessary to take account of changes in the

taxation law of the two countries in recent years, particularly

the introduction of the foreign tax credit system in Australia.

Agreement to an amending protocol was reached at officials

level. The amendments deal principally with the removal of

Article 18(2) of the existing agreement and the provision of tax

sparing by Australia for certain development incentives provided

by Singapore. As foreshadowed in Press Release No. 21 of

11 March 1988, the deletion of Article 18(2) will be effective

in respect of relevant dividends paid after that date.

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Under relevant provisions of ¬ęthe existing agreement Australia

has provided tax sparing relief for tax forgone by Singapore on

certain interest and royalty income under specified development

incentive provisions of its law. Letters are to be exchanged

shortly to extend the operation of those provisions up to the

date on which the amendments to the existing agreement will

operate. The amendments will provide new tax sparing

arrangements on the basis of Singapore's present incentive

measures. 1

Details of the amending protocol will be available when it has

been approved and signed by the two governments.

CANBERRA

9 February 1989

Contact Officer: Mr Ken Allen

Telephone No. : (062)75-1155(W)

(062)92-1821(H)

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