It has been reported that Singapore has asked for a re-negotiation of the India-Singaporetax treaty of 24 January 1994 (the tax treaty) with a view to bring it on par with the India-Mauritius tax treaty. The matter is to be discussed during the first review of the "Comprehensive Economic Cooperation Agreement" (CEPA) on 31 March 2006. The CEPA, and a protocol to the tax treaty, were signed on 29 June 2005.
The Singaporean tax authorities are reported to have received representations from several financial service companies who have said that the definition of a "shell company" as contained in the protocol to the tax treaty is proving to be restrictive. Many of these companies have special purpose vehicles (SPVs), which are not covered by the twin conditions contained in the protocol for getting a capital gains tax exemption.
We’re here to answer any questions you have about the Orbitax products and services.
We’re committed to providing high value, low cost tax research and management solutions.
Our Twitter account is where you can find latest information, news updates, offers and lots more.