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Income Tax (International Tax Compliance Agreements)

Singapore and the United States signed a FATCA Model 1 IGA on December 9, 2014 to reduce the fatca compliance burden on Singapore-based FIS (« SGFIs »). A copy of the IGA is available here (PDF, 494KB). Recognizing that domestic legislation in many countries would otherwise prevent foreign financial institutions from fully complying with FATCA, the United States has developed an intergovernmental approach (known as IGA). This approach overcomes legal hurdles, simplifies practical implementation and reduces compliance costs for the financial institutions concerned. A DBA between Singapore and another jurisdiction serves to avoid double taxation of income received in one jurisdiction by a resident of the other jurisdiction. A DBA also highlights the tax rights between Singapore and its contractual partner on different types of income resulting from cross-border economic activities between the two jurisdictions. The agreements also provide for a reduction or exemption from tax on certain types of income. See singapore`s list of ATDs, Treaties and EOI arrangements. Tax evasion is a global problem and international cooperation and exchange of quality and predictable information between tax authorities will help them ensure compliance with local tax laws. . . .