Revision of India – Singapore Tax Treaty

India revised tax treaty with Singapore to provide capital gains taxation similar to revised India-Mauritius treaty. The amendment provides for source-based taxation of capital gains arising from shares acquired on or after 1st Apr 2017.

Revised treaty provides that capital gains on investments made upto March 31, 2017 will be exempt subject to fulfilment of conditions in Limitation of Benefits (LOB) clause as per 2005 protocol; For the period of 2 years starting from April 1, 2017, capital gains will be taxed at the rate limited to 50% of the domestic tax rates and capital gains will be fully taxable in India from April 1, 2019. Continue reading

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