Japan and Singapore, both representing strong economies globally, signed a double tax treaty in 1961, which was renewed in 1971 and 1994. The double tax treaty which was concluded in 1994 is still valid up to the present, with the mention that, in 2010, the treaty was completed by a protocol, which brought a few changes.
If you are interested in setting up a company in Japan, our company formation consultants in Japan can offer you the needed assistance to do so.
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Taxes according to the Japan – Singapore double tax treaty
The Japan – Singapore double tax treaty provides certain tax conditions for businesses and individuals residing in one or both jurisdictions.
The agreement refers to the following taxes which will profit from tax exemptions or deductions based on the income source:
• The income taxation in Singapore;
• The income, the corporate and the inhabitant taxes in Japan.
The above mentioned double taxation agreement is connected to similar taxes imposed in both jurisdictions. Our company registration advisors in Japan can offer further details on this agreement.
Dividends taxed under the Japan – Singapore double tax agreement
The dividends paid to a resident of one of the jurisdictions by a business resident in the other one are taxed in the country in which the person who receives them resides.
The dividend payment could be further subject to a taxation in which the paying business is resident. In the cases in which the individual who receives the dividend payment is the beneficial owner and is not a resident of the same jurisdiction as the paying business, the tax levied in the state in which the payment was issued will not exceed:
• 5% of the gross dividend sum in certain conditions. Our Japan company formation specialists can offer more information on what these conditions are;
• 15% of the gross dividend sum in all the other circumstances.
For more details on the double tax agreement between Japan and Singapore, or for help in connection to starting a company in Japan, please speak to our friendly staff.