On 24 August 2016, officials from Ethiopia and Singapore signed an income tax treaty. The treaty is the first of its kind between the two countries.
The treaty covers Ethiopian tax on income and profit, and the tax on income from mining, petroleum and agricultural activities. It covers Singapore income tax.
The following capital gains derived by a resident of one Contracting State may be taxed by the other State:
Gains from the alienation of other property by a resident of a Contracting State may only be taxed by that State.
Both countries apply the credit method for the elimination of double taxation. A provision is also included for a tax sparing credit for tax that would otherwise be payable but has been reduced or exempted for a limited period of time in a Contracting State in accordance with the laws and regulations of that State aimed at promoting economic development.
The treaty will enter into force once the ratification instruments are exchanged, and will apply in Ethiopia from 8 July next following its entry into force and in Singapore from 1 January of the year following its entry into force.
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