Nigeria singapore sign pact double taxation

A great topic!

Yes, Nigeria and Singapore have signed a Double Taxation Agreement (DTA) to avoid double taxation and fiscal evasion with respect to taxes on income. The agreement was signed on November 22, 2019, and it aims to promote economic cooperation and investment between the two countries.

Here are some key highlights of the agreement:

  1. Avoidance of double taxation: The agreement aims to prevent the taxation of the same income in both Nigeria and Singapore, thereby avoiding double taxation and ensuring that taxpayers are not subjected to multiple tax liabilities.
  2. Taxation of income: The agreement covers all types of income, including dividends, interest, royalties, and capital gains.
  3. Tax rates: The agreement sets out the tax rates applicable to each type of income, including the maximum tax rates that can be imposed.
  4. Tax credits: The agreement provides for tax credits to be granted to taxpayers in one country for taxes paid in the other country, thereby reducing the overall tax liability.
  5. Permanent establishment: The agreement defines what constitutes a permanent establishment, which is a fixed place of business or a fixed base of operations in the other country.
  6. Business profits: The agreement sets out the rules for taxing business profits, including the allocation of profits between permanent establishments and the treatment of associated enterprises.
  7. Dividends: The agreement provides for the taxation of dividends, including the withholding tax rates applicable to dividends paid by a company in one country to a shareholder in the other country.
  8. Interest and royalties: The agreement sets out the rules for taxing interest and royalties, including the withholding tax rates applicable to these types of income.
  9. Capital gains: The agreement provides for the taxation of capital gains, including the treatment of gains from the sale of shares and other assets.
  10. Entry into force: The agreement will enter into force on the date of exchange of instruments of ratification, and it will apply to taxes withheld at source on or after that date.

The signing of this DTA is expected to promote economic cooperation and investment between Nigeria and Singapore, and to provide greater certainty and predictability for taxpayers in both countries.