On 18 December 2015, the income tax treaty between Seychelles and Singapore entered into force. The treaty, signed 9 July 2014, is the first of its kind between the two countries.
The treaty covers Singapore income tax, and Seychelles business tax, income and non-monetary benefits tax, and petroleum tax.
The treaty includes the provision that a permanent establishment will be deemed constituted when an enterprise of one Contracting State furnishes services in the other State through employees or other engaged personnel for the same or connected project for a period or periods aggregating more than 365 days within any 15-month period.
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.
The tax treaty applies in Seychelles from 1 January 2016. It applies in Singapore in respect of withholding taxes from 1 January 2016 and in respect of other taxes from 1 January 2017.
Article 25 (Exchange of Information) applies in both countries from the date of its entry into force for requests concerning tax periods beginning on or after 1 January 2016.
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