Singapore and Uzbekistan confirmed an agreement to lower tax barriers and eliminate double taxation for bilateral trade and investments signed in July.
Under the Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income (DTA), new tax rules confirmed last Thursday will take effect from 1 January 2009:
- Singapore tax residents who derive income from Uzbekistan will get withholding tax of 8% for royalties and 5% for dividends and interest
- services provided for more than 183 days a year by Singapore tax residents in Uzbekistan will be regarded as permanent establishments
- income flows between both countries will get a tax credit
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