India-Singapore DTAA
Treaty signed: August 24, 1994 | Effective from: October 22, 1994
● Live · Rates served from /api/tax-rules/dtaa/SG
Dividends
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Interest
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Royalties
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Capital Gains
Fees for Technical Services
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Key Treaty Provisions
- Amended in 2016 to align with India-Mauritius amendments - capital gains on Indian shares now taxable in India (source-based)
- Transition period (April 1, 2017 - March 31, 2019): reduced capital gains tax of 50% for qualifying residents
- Full source taxation of capital gains on shares from April 1, 2019
- Limitation of Benefits clause - only genuine Singapore tax residents qualify; shell companies do not
- Singapore remains an important FDI conduit for India due to business and operational substance considerations
Frequently Asked Questions
Can a Singapore company still get capital gains exemption on Indian shares?▾
No. Since April 1, 2019, the India-Singapore DTAA no longer provides capital gains exemption on transfer of Indian shares. India now taxes these gains under domestic law (12.5% LTCG under Section 112A; 20% STCG under 111A). The 2016 amendment ended the popular treaty shopping route.
What is the withholding tax rate on royalties paid to a Singapore company?▾
Under the India-Singapore DTAA, royalties are taxable at 10% in India. The Singapore company must furnish TRC and Form 10F to the Indian payer to qualify for the 10% rate (vs 20% standard rate).
Is Singapore still useful as an FDI holding structure for India?▾
Yes, for operational reasons (strong legal system, IP holding, regional headquarters) but no longer primarily for tax reasons on capital gains. For genuine operations, Singapore still offers business advantages. Pure holding structures without substance may be denied treaty benefits under the Limitation of Benefits clause.
Browse all articles
20 articlesArticle 1 of the India-Singapore DTAA governs persons covered.…
Article 4 of the India-Singapore DTAA governs resident.…
Article 5 of the India-Singapore DTAA governs permanent establishment.…
Article 7 of the India-Singapore DTAA governs business profits.…
Article 8 of the India-Singapore DTAA governs shipping, inland waterways, and air transport.…
Article 9 of the India-Singapore DTAA governs associated enterprises.…
Dividends paid by a company resident in one State to a resident of the other State may be taxed in the recipie…
Interest arising in one State and paid to a resident of the other may be taxed in the recipient's State, with …
Royalties paid to a resident of the other State may be taxed in the recipient's State; the source State retain…
FTS - payments for managerial, technical, or consultancy services - are taxed at the treaty rate where a speci…
Article 13 allocates taxing rights over capital gains between India and Singapore.…
Article 14 of the India-Singapore DTAA governs independent personal services.…
Article 15 sets the taxing rights for salaries earned by an employee of one State who works in the other.…
Article 17 of the India-Singapore DTAA governs artistes and sportspersons.…
Article 18 of the India-Singapore DTAA governs pensions.…
Article 19 of the India-Singapore DTAA governs government service.…
Article 23 sets out the mechanism by which double taxation is eliminated - typically through a foreign tax cre…
MAP allows the competent authorities of India and Singapore to resolve disputes - particularly transfer pricin…
Allows the competent authorities to exchange information necessary to apply the treaty or domestic tax laws.…
Treaty benefits are denied where the principal purpose of the transaction was to obtain them.…
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