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TREATY, INCOME, India and Singapore, IN-FORCE (1994) --Latest Amended
Version
TREATY TYPE: INCOME
STATUS: IN-FORCE
SIGNING DATES: JAN 24, 1994 (Agreement); JUN 29, 2005 (Protocol #1); JUN
24, 2011 (Protocol #2); DEC 30, 2016 (Protocol #3)
ENTRY INTO FORCE DATES: MAY 27, 1994 (Agreement); AUG 01, 2005 (Protocol
#1); SEP 01, 2011 (Protocol #2); FEB 27, 2017 (Protocol #3)
EFFECTIVE DATES: See Article 30 of the Agreement. See Articles 6 and 7
of Protocol #1. See Article 3 of the Protocol #2. See Article 6 of
Protocol #3.
SCOPE: BILATERAL
MULTILATERAL INSTRUMENT (MLI): Both signatories to this agreement have
signed and deposited their instrument of ratification for the MLI and
this agreement has been designated by both as a covered agreement. Each
signatorys reservations and notifications may be viewed using this
tool:
A synthesized version of the text of this agreement incorporating
changes made by the MLI is available:
AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF SINGAPORE AND THE
GOVERNMENT OF THE REPUBLIC OF INDIA FOR THE AVOIDANCE OF DOUBLE TAXATION
AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME
The Government of the Republic of Singapore and the Government of the
Republic of India, Desiring to conclude an Agreement for the avoidance
of double taxation and the prevention of fiscal evasion with respect to
taxes on income, Have agreed as follows:
ARTICLE 1 Personal Scope
This Agreement shall apply to persons who are residents of one or both
of the Contracting States.
ARTICLE 2 Taxes Covered
The taxes to which this Agreement shall apply are:
in India: income-tax including any surcharge thereon (hereinafter
referred to as "Indian tax");
(b) in Singapore: the income tax (hereinafter referred to as "Singapore
tax").
(2) The Agreement shall also apply to any identical or substantially
similar taxes which are imposed by either Contracting State after the
date of signature of the present Agreement in addition to, or in place
of, the taxes referred to in paragraph 1. The competent authorities of
the Contracting States shall notify each other of any substantial
changes which are made in their respective taxation laws.
ARTICLE 3 General Definitions
In this Agreement, unless the context otherwise requires:
the term "India" means the territory of India and includes the
territorial sea and airspace above it, as well as any other maritime
zone in which India has sovereign rights, other rights and
jurisdictions, according to the Indian law and in accordance with
international law;
(b) the term "Singapore" means the Republic of Singapore;
(c) the terms "a Contracting State" and "the other Contracting State"
mean India or Singapore as the context requires;
(d) the term "company" means any body corporate or any entity which is
treated as a company or body corporate under the taxation laws in force
in the respective Contracting States;
(e) the term "competent authority" means, in the case of India, the
Central Government in the Ministry of Finance (Department of Revenue) or
their authorised representative; and in the case of Singapore, the
Minister for Finance or his authorised representative;
(f) the terms "enterprise of a Contracting State" and "enterprise of the
other Contracting State" mean respectively an enterprise carried on by a
resident of a Contracting State and an enterprise carried on by a
resident of the other Contracting State;
(g) the term "fiscal year" means:
in the case of India, "previous year" as defined under section 3 of the
Income-tax Act, 1961;
(ii) in the case of Singapore, calendar year;
(h) the term "international traffic" means any transport by a ship or
aircraft operated by an enterprise of a Contracting State, except when
the ship or aircraft is operated solely between places in the other
Contracting State;
the term "national" means any individual, possessing the nationality of
a Contracting State and any legal person, partnership or association
deriving its status as such from the laws in force in the Contracting
State;
(j) the term "person" includes an individual, a company, a body of
persons and any other entity which is treated as a taxable unit under
the taxation laws in force in the respective Contracting States;
(k) the term "tax" means Indian tax or Singapore tax, as the context
requires, but shall not include any amount which is payable in respect
of any default or omission in relation to the taxes to which this
Agreement applies or which represents a penalty imposed relating to
those taxes.
(2) As regards the application of the Agreement by a Contracting State,
any term not defined therein shall, unless the context otherwise
requires, have the meaning which it has under the law of that State
concerning the taxes to which the Agreement applies.
ARTICLE 4 Resident
For the purposes of this Agreement, the term "resident of a Contracting
State" means any person who is a resident of a Contracting State in
accordance with the taxation laws of that State.
(2) Where, by reason of the provisions of paragraph 1, an individual is
a resident of both Contracting States, then his status shall be
determined as follows:
he shall be deemed to be a resident of the State in which he has a
permanent home available to him; if he has a permanent home available to
him in both States, he shall be deemed to be a resident of the State
with which his personal and economic relations are closer (centre of
vital interests);
(b) if the State in which he has his centre of vital interests cannot be
determined, or if he has not a permanent home available to him in either
State, he shall be deemed to be a resident of the State in which he has
an habitual abode;
(c) if he has an habitual abode in both States or in neither of them, he
shall be deemed to be a resident of the State of which he is a national;
(d) if he is a national of both States or of neither of them, the
competent authorities of the Contracting States shall settle the
question by mutual agreement.
(3) Where, by reason of the provisions of paragraph 1, a person other
than an individual is a resident of both Contracting States, then it
shall be deemed to be a resident of the State in which its place of
effective management is situated.
ARTICLE 5 Permanent Establishment
For the purposes of this Agreement, the term "permanent establishment"
means a fixed place of business through which the business of the
enterprise is wholly or partly carried on.
(2) The term "permanent establishment" includes especially:
a place of management;
(b) a branch;
(c) an office;
(d) a factory;
(e) a workshop;
(f) a mine, an oil or gas well, a quarry or any other place of
extraction of natural resources;
(g) a warehouse in relation to a person providing storage facilities for
others;
(h) a farm, plantation or other place where agriculture, forestry,
plantation or related activities are carried on;
premises used as a sales outlet or for soliciting and receiving orders;
(j) an installation or structure used for the exploration or
exploitation of natural resources but only if so used for a period of
more than 120 days in any fiscal year.
(3) A building site or construction, installation or assembly project
constitutes a permanent establishment only if it continues for a period
of more than 183 days in any fiscal year.
(4) An enterprise shall be deemed to have a permanent establishment in a
Contracting State and to carry on business through that permanent
establishment if it carries on supervisory activities in that
Contracting State for a period of more than 183 days in any fiscal year
in connection with a building site or construction, installation or
assembly project which is being undertaken in that Contracting State.
(5) Notwithstanding the provisions of paragraph 3 and 4, an enterprise
shall be deemed to have a permanent establishment in a Contracting State
and to carry on business through that permanent establishment if it
provides services or facilities in that Contracting State for a period
of more than 183 days in any fiscal year in connection with the
exploration, exploitation or extraction of mineral oils in that
Contracting State.
(6) An enterprise shall be deemed to have a permanent establishment in a
Contracting State if it furnishes service, other than services referred
to in paragraphs 4 and 5 of this Article and technical services as
defined in Article 12, within a Contracting State through employees or
other personnel, but only if:
activities of that nature continue within that Contracting State for a
period or periods aggregating more than 90 days in any fiscal year; or
(b) activities are performed for a related enterprise (within the
meaning of Article 9 of this Agreement) for a period or periods
aggregating more than 30 days in any fiscal year.
(7) Notwithstanding the preceding provisions of this Article, the term
"permanent establishment" shall be deemed not to include:
the use of facilities solely for the purpose of storage, display or
occasional delivery of goods or merchandise belonging to the enterprise;
(b) the maintenance of a stock of goods or merchandise belonging to the
enterprise solely for the purpose of storage, display or occasional
delivery;
(c) the maintenance of a stock of goods or merchandise belonging to the
enterprise solely for the purpose of processing by another enterprise;
(d) the maintenance of a fixed place of business solely for the purpose
of purchasing goods or merchandise, or of collecting information, for
the enterprise;
(e) the maintenance of a fixed place of business solely for the purpose
of advertising, for the supply of information, for scientific research,
or for similar activities which have a preparatory or auxiliary
character, for the enterprise.
However, the provisions of subparagraphs (a) to (e) shall not be
applicable where the enterprise maintains any other fixed place of
business in the other Contracting State through which the business of
the enterprise is wholly or partly carried on.
(8) Notwithstanding the provisions of paragraphs 1 and 2, where a
personother than an agent of an independent status to whom paragraph 9
appliesis acting in a Contracting State on behalf of an enterprise of
the other Contracting State that enterprise shall be deemed to have a
permanent establishment in the first-mentioned State, if:
he has and habitually exercises in that State an authority to conclude
contracts on behalf of the enterprise, unless his activities are limited
to the purchase of goods or merchandise for the enterprise;
(b) he has no such authority, but habitually maintains in the
first-mentioned State a stock of goods or merchandise from which he
regularly delivers goods or merchandise on behalf of the enterprise; or
(c) he habitually secures orders in the first-mentioned State, wholly or
almost wholly for the enterprise itself or for the enterprise and other
enterprises controlling, controlled by, or subject to the same common
control, as that enterprise.
(9) An enterprise of a Contracting State shall not be deemed to have a
permanent establishment in the other Contracting State merely because it
carries on business in that other State through a broker, general
commission agent or any other agent of an independent status provided
that such persons are acting in the ordinary course of their business.
However, when the activities of such an agent are devoted wholly or
almost wholly on behalf of that enterprise itself or on behalf of that
enterprise and other enterprises controlling, controlled by, or subject
to the same common control, as that enterprise, he will not be
considered an agent of an independent status within the meaning of this
paragraph.
(10) The fact that a company which is a resident of a Contracting State
controls or is controlled by a company which is a resident of the other
Contracting State, or which carries on business in that other
Contracting State (whether through a permanent establishment or
otherwise), shall not of itself constitute either company a permanent
establishment of the other.
ARTICLE 6 Income From Immovable Property
Income derived by a resident of a Contracting State from immovable
property situated in the other Contracting State may be taxed in that
other State.
(2) The term "immovable property" shall have the meaning which it has
under the law of the Contracting State in which the property in question
is situated. The term shall in any case include property accessory to
immovable property, livestock and equipment used in agriculture and
forestry, rights to which the provisions of general law respecting
landed property apply, usufruct of immovable property and rights to
variable or fixed payments as consideration for the working of, or the
right to work, mineral deposits, sources and other natural resources.
Ships and aircraft shall not be regarded as immovable property.
(3) The provisions of paragraph 1 shall also apply to income derived
from the direct use, letting, or use in any other form of immovable
property.
(4) The provisions of paragraphs 1 and 3 shall also apply to the income
from immovable property of an enterprise and to income from immovable
property used for the performance of independent personal services.
ARTICLE 7 Business Profits
The profits of an enterprise of a Contracting State shall be taxable
only in that State unless the enterprise carries on business in the
other Contracting State through a permanent establishment situated
therein. If the enterprise carries on business as aforesaid, the profits
of the enterprise may be taxed in the other State but only so much of
them as is directly or indirectly attributable to that permanent
establishment.
(2) Subject to the provisions of paragraph 3, where an enterprise of a
Contracting State carries on business in the other Contracting State
through a permanent establishment situated therein, there shall in each
Contracting State be attributed to that permanent establishment the
profits which it might be expected to make if it were a distinct and
separate enterprise engaged in the same or similar activities under the
same or similar conditions and dealing wholly independently with the
enterprise of which it is a permanent establishment. In any case where
the correct amount of profits attributable to a permanent establishment
is incapable of determination or the determination thereof presents
exceptional difficulties, the profits attributable to the permanent
establishment may be estimated on a reasonable basis.
(3) In the determination of the profits of a permanent establishment,
there shall be allowed as deductions expenses which are incurred for the
purposes of the business of the permanent establishment including
executive and general administrative expenses so incurred, whether in
the State in which the permanent establishment is situated or elsewhere,
in accordance with the provisions of and subject to the limitations of
the taxation laws of that State.
(4) Insofar as it has been customary in the Contracting State to
determine the profits to be attributed to a permanent establishment on
the basis of an apportionment of the total profits of the enterprise to
its various parts, nothing in paragraph 2 shall preclude that
Contracting State from determining the profits to be taxed by such an
apportionment as may be customary; the method of apportionment adopted
shall, however, be such that the result shall be in accordance with the
principles contained in this Article.
(5) No profits shall be attributed to a permanent establishment by
reason of the mere purchase by that permanent establishment of goods or
merchandise for the enterprise.
(6) For the purposes of the preceding paragraphs, the profits to be
attributed to the permanent establishment shall be determined by the
same method year by year unless there is good and sufficient reason to
the contrary.
(7) Where profits include items of income which are dealt with
separately in other Articles of this Agreement, then the provisions of
those Articles shall not be affected by the provisions of this Article.
(8) For the purpose of paragraph 1, the term "directly or indirectly
attributable to the permanent establishment" includes profits arising
from transactions in which the permanent establishment has been involved
and such profits shall be regarded as attributable to the permanent
establishment to the extent appropriate to the part played by the
permanent establishment in those transactions, even if those
transactions are made or placed directly with the overseas head office
of the enterprise rather than with the permanent establishment.
ARTICLE 8 Shipping and Air Transport
Profits derived by an enterprise of a Contracting State from the
operation of ships or aircraft in international traffic shall be taxable
only in that State.
(2) The provisions of paragraph 1 shall also apply to profits from the
participation in a pool, a joint business or an international operating
agency engaged in the operation of ships or aircraft.
(3) Interest on funds connected with the operation of ships or aircraft
in international traffic shall be regarded as profits derived from the
operation of such ships or aircraft, and the provisions of Article 11
shall not apply in relation to such interest.
(4) For the purposes of this Article, profits from the operation of
ships or aircraft in international traffic shall mean profits derived
from the transportation by sea or air of passengers, mail, livestock or
goods carried on by the owners or lessees or charterers of the ships or
aircraft, including profits from:
the sale of tickets for such transportation on behalf of other
enterprises;
(b) the incidental lease of ships or aircraft used in such
transportation;
(c) the use, maintenance or rental of containers (including trailers and
related equipment for the transport of containers) in connection with
such transportation; and
(d) any other activity directly connected with such transportation.
ARTICLE 9 Associated Enterprises
Where
an enterprise of a Contracting State participates directly or indirectly
in the management, control or capital of an enterprise of the other
Contracting State, or
(b) the same persons participate directly or indirectly in the
management, control or capital of an enterprise of a Contracting State
and an enterprise of the other Contracting State,
and in either case conditions are made or imposed between the two
enterprises in their commercial or financial relations which differ from
those which would be made between independent enterprises, then any
profits which would, but for those conditions, have accrued to one of
the enterprises, but, by reason of those conditions, have not so
accrued, may be included in the profits of that enterprise and taxed
accordingly.
(2) Where a Contracting State includes in the profits of an enterprise
of that Stateand taxes accordinglyprofits on which an enterprise of
the other Contracting State has been charged to tax in that other State
and the profits so included are profits which would have accrued to the
enterprise of the first-mentioned State if the conditions made between
the two enterprises had been those which would have been made between
independent enterprises, then that other State shall make an appropriate
adjustment to the amount of the tax charged therein on those profits. In
determining such adjustment, due regard shall be had to the other
provisions of this Agreement and the competent authorities of the
Contracting States shall if necessary consult each other.
ARTICLE 10 Dividends
Dividends paid by a company which is a resident of a Contracting State
to a resident of the other Contracting State may be taxed in that other
State.
(2) However, such dividends may also be taxed in the Contracting State
of which the company paying the dividends is a resident and according to
the laws of that State, but if the recipient is the beneficial owner of
the dividends, the tax so charged shall not exceed:
10 per cent of the gross amount of the dividends if the beneficial owner
is a company which owns at last 25 per cent of the shares of the company
paying the dividends;
(b) 15 per cent of the gross amount of the dividends in all other cases.
This paragraph shall not affect the taxation of the company in respect
of the profits out of which the dividends are paid.
(3) Notwithstanding the provisions of paragraph 2 of this Article, as
long as Singapore does not impose a tax on dividends in addition to the
tax chargeable on the profits or income of a company, dividends paid by
a company which is a resident of Singapore to a resident of India shall
be exempt from any tax in Singapore which may be chargeable on dividends
in addition to the tax chargeable on the profits or income of the
company.
(4) The term "dividends" as used in this Article means income from
shares or other rights, not being debt-claims, participating in profits,
as well as income from other corporate rights which is subjected to the
same taxation treatment as income from shares by the laws of the State
of which the company making the distribution is a resident.
(5) The provisions of paragraphs 1 and 2 shall not apply if the
beneficial owner of the dividends, being a resident of a Contracting
State, carries on business in the other Contracting State of which the
company paying the dividends is a resident, through a permanent
establishment situated therein or performs in that other State
independent personal services from a fixed base situated therein, and
the holding in respect of which the dividends are paid is effectively
connected with such permanent establishment or fixed base. In such case,
the provisions of Article 7, or Article 14, as the case may be, shall
apply.
(6) Where a company which is a resident of a Contracting State derives
profits or income from the other Contracting State, that other State may
not impose any tax on the dividends paid by the company except in so far
as such dividends are paid to a resident of that other State or so far
as the holding in respect of which the dividends are paid is effectively
connected with a permanent establishment or a fixed base situated in
that other State, nor subject the company's undistributed profits to a
tax on the company's undistributed profits, even if the dividends paid
or the undistributed profits consist wholly or partly of profits or
income arising in such other State.
(7)
Dividends shall be deemed to arise in India if they are paid by a
company which is a resident of India.
(b) Dividends shall be deemed to arise in Singapore:
if they are paid by a company which is a resident of Singapore; or
(ii) if they are paid by a company which is a resident of Malaysia out
of profits arising in Singapore and qualifying as dividends arising in
Singapore under Article VII of the Agreement for the Avoidance of Double
Taxation between Singapore and Malaysia signed on 26th December 1968.
ARTICLE 11 Interest
Interest arising in a Contracting State and paid to a resident of the
other Contracting State may be taxed in that other State.
(2) However, such interest may also be taxed in the Contracting State in
which it arises, and according to the laws of that State, but if the
beneficial owner of the interest is a resident of the other Contracting
State, the tax so charged shall not exceed:
10 per cent of the gross amount of the interest if such interest is paid
on a loan granted by a bank carrying on a bona fide banking business or
by a similar financial institution (including an insurance company);
(b) 15 per cent of the gross amount of the interest in all other cases.
(3) The term "interest" as used in this Article means income from
debt-claims of every kind, whether or not secured by mortgage and
whether or not carrying a right to participate in the debtor's profits;
and in particular, income from government securities and income from
bonds or debentures, including premiums and prizes attaching to such
securities, bonds or debentures. Penalty charges for late payment shall
not be regarded as interest for the purpose of this Article.
(4) The provisions of paragraphs 1 and 2 shall not apply if the
beneficial owner of the interest, being a resident of a Contracting
State, carries on business in the other Contracting State in which the
interest arises, through a permanent establishment situated therein, or
performs in that other State independent personal services from a fixed
base situated therein, and the debt-claim in respect of which the
interest paid is effectively connected with such permanent establishment
or fixed base. In such case, the provisions of Article 7 or Article 14,
as the case may be, shall apply.
(5) Interest shall be deemed to arise in a Contracting State when the
payer is that Contracting State itself, a political subdivision, a local
authority, a statutory body or a resident of that State. Where, however,
the person paying the interest, whether he is a resident of a
Contracting State or not, has in a Contracting State a permanent
establishment or a fixed base in connection with which the indebtedness
on which the interest is paid was incurred, and such interest is borne
by such permanent establishment or fixed base, then such interest shall
be deemed to arise in the Contracting State in which the permanent
establishment or fixed base is situated.
(6) Where, by reason of a special relationship between the payer and the
beneficial owner or between both of them and some other person, the
amount of the interest, having regard to the debt-claim for which it is
paid, exceeds the amount which would have been agreed upon by the payer
and the beneficial owner in the absence of such relationship, the
provisions of this Article shall apply to the last-mentioned amount. In
such case, the excess part of the payments shall remain taxable
according to the laws of each Contracting State, due regard being had to
the other provisions of this Agreement.
ARTICLE 12 Royalties and Fees for Technical Services
Royalties and fees for technical services arising in a Contracting State
and paid to a resident of the other Contracting State may be taxed in
that other State.
(2) However, such royalties and fees for technical services may also be
taxed in the Contracting State in which they arise and according to the
laws of that Contracting State, but if the recipient is the beneficial
owner of the royalties or fees for technical services, the tax so
charged shall not exceed 10 percent.
(3) The term "royalties" as used in this Article means payments of any
kind received as a consideration for the use of, or the right to use:
any copyright of a literary, artistic or scientific work, including
cinematograph films or films or tapes used for radio or television
broadcasting, any patent, trade mark, design or model, plan, secret
formula or process, or for information concerning industrial, commercial
or scientific experience, including gains derived from the alienation of
any such right, property or information;
(b) any industrial, commercial or scientific equipment, other than
payments derived by an enterprise from activities described in paragraph
4(b) or 4(c) of Article 8.
(4) The term "fees for technical services" as used in this Article means
payments of any kind to any person in consideration for services of a
managerial, technical or consultancy nature (including the provision of
such services through technical or other personnel) if such services:
are ancillary and subsidiary to the application or enjoyment of the
right, property or information for which a payment described in
paragraph 3 is received; or
(b) make available technical knowledge, experience, skill, know-how or
processes, which enables the person acquiring the services to apply the
technology contained therein; or
(c) consist of the development and transfer of a technical plan or
technical design, but excludes any service that does not enable the
person acquiring the service to apply the technology contained therein.
For the purposes of (b) and (c) above, the person acquiring the service
shall be deemed to include an agent, nominee, or transferee of such
person.
(5) Notwithstanding paragraph 4, "fees for technical services" does not
include payments:
for services that are ancillary and subsidiary, as well as inextricably
and essentially linked, to the sale of property other than a sale
described in paragraph 3(a);
(b) for services that are ancillary and subsidiary to the rental of
ships, aircraft, containers or other equipment used in connection with
the operation of ships or aircraft in international traffic;
(c) for teaching in or by educational institutions;
(d) for services for the personal use of the individual or individuals
making the payment;
(e) to an employee of the person making the payments or to any
individual or firm of individuals (other than a company) for
professional services as defined in Article 14;
(f) for services rendered in connection with an installation or
structure used for the exploration or exploitation of natural resources
referred to in paragraph 2(j) of Article 5;
(g) for services referred to in paragraphs 4 and 5 of Article 5.
(6) The provisions of paragraphs 1 and 2 shall not apply if the
beneficial owner of the royalties or fees for technical services, being
a resident of a Contracting State, carries on business in the other
Contracting State in which the royalties or fees for technical services
arise, through a permanent establishment situated therein, or performs
in that other State independent personal services from a fixed base
situated therein, and the right, property or contract in respect of
which the royalties or fees for technical services are paid is
effectively connected with such permanent establishment or fixed base.
In such case, the provisions of Article 7 or Article 14, as the case may
be, shall apply.
(7) Royalties and fees for technical services shall be deemed to arise
in a Contracting State when the payer is that State itself, a political
subdivision, a local authority, a statutory body or a resident of that
State. Where, however, the person paying the royalties or fees for
technical services, whether he is a resident of a Contracting State or
not, has in a Contracting State a permanent establishment or a fixed
base in connection with which the liability to pay the royalties or fees
for technical services was incurred, and such royalties or fees for
technical services are borne by such permanent establishment or fixed
base, then such royalties or fees for technical services shall be deemed
to arise in the State in which the permanent establishment or fixed base
is situated.
(8) Where, by reason of a special relationship between the payer and the
beneficial owner or between both of them and some other person, the
amount of royalties or fees for technical services paid exceeds the
amount which would have been paid in the absence of such relationship,
the provisions of this Article shall apply only to the last-mentioned
amount. In such case, the excess part of the payments shall remain
taxable according to the laws of each Contracting State, due regard
being had to the other provisions of this Agreement.
ARTICLE 13 Capital Gains
Gains derived by a resident of a Contracting State from the alienation
of immovable property, referred to in Article 6, and situated in the
other Contracting State may be taxed in that other State.
(2) Gains from the alienation of movable property forming part of the
business property of a permanent establishment which an enterprise of a
Contracting State has in the other Contracting State or of movable
property pertaining to a fixed base available to a resident of a
Contracting State in the other Contracting State for the purpose of
performing independent personal services, including such gains from the
alienation of such a permanent establishment (alone or together with the
whole enterprise) or of such fixed base, may be taxed in that other
State.
(3) Gains from the alienation of ships or aircraft operated in
international traffic or movable property pertaining to the operation of
such ships or aircraft shall be taxable only in the Contracting State of
which the alienator is a resident.
(4A) Gains from the alienation of shares acquired before 1 April 2017 in
a company which is a resident of a Contracting State shall be taxable
only in the Contracting State in which the alienator is a resident.
(4B) Gains from the alienation of shares acquired on or after 1 April
2017 in a company which is a resident of a Contracting State may be
taxed in that State.
(4C) However, the gains referred to in paragraph 4B of this Article
which arise during the period beginning on 1 April 2017 and ending on 31
March 2019 may be taxed in the State of which the company whose shares
are being alienated is a resident at a tax rate that shall not exceed 50
percent of the tax rate applicable on such gains in that State.
(5) Gains from the alienation of any property other than that referred
to in paragraphs 1, 2, 3, 4A and 4B of this Article shall be taxable
only in the Contracting State of which the alienator is a resident.
ARTICLE 14 Independent Personal Services
Income derived by an individual who is a resident of a Contracting State
from the performance of professional services or other independent
activities of a similar character shall be taxable only in that State
except in the following circumstances when such income may also be taxed
in the other Contracting State:
if he has a fixed base regularly available to him in the other
Contracting State for the purpose of performing his activities; in that
case, only so much of the income as is attributable to that fixed base
may be taxed in that other State; or
(b) if his stay in the other Contracting State is for a period or
periods amounting to or exceeding in the aggregate 90 days in the
relevant fiscal year; in that case, only so much of the income as is
derived from his activities performed in that other State may be taxed
in that other State.
(2) The term "professional services" includes independent scientific,
literary, artistic, educational or teaching activities, as well as the
independent activities of physicians, surgeons, lawyers, engineers,
architects, dentists and accountants.
ARTICLE 15 Dependent Personal Services
Subject to the provisions of Articles 16, 18, 19, 20 and 21, salaries,
wages and other similar remuneration derived by a resident of a
Contracting State in respect of an employment shall be taxable only in
that State unless the employment is exercised in the other Contracting
State. If the employment is so exercised, such remuneration as is
derived therefrom may be taxed in that other State.
(2) Notwithstanding the provisions of paragraph 1, remuneration derived
by a resident of a Contracting State in respect of an employment
exercised in the other Contracting State shall be taxable only in the
first-mentioned State if:
the recipient is present in the other State for a period or periods not
exceeding in the aggregate 183 days in the relevant fiscal year; and
(b) the remuneration is paid by, or on behalf of, an employer who is not
a resident of the other State; and
(c) the remuneration is not borne by a permanent establishment or a
fixed base which the employer has in the other State.
(3) In the case of a recipient who satisfies all the conditions under
subparagraphs (a), (b) and (c) of paragraph 2, if his remuneration is
deductible as an expense against fees for technical services (dealt with
under Article 12) derived by his employer and the employer has no
permanent establishment in the other Contracting State, the remuneration
may, notwithstanding the provisions of paragraph 2, be taxed in that
State. In such case, the tax so charged shall not exceed 15 per cent of
the gross amount of the remuneration.
(4) Notwithstanding the preceding provisions of this Article,
remuneration derived in respect of an employment exercised aboard a ship
or aircraft operated in international traffic by an enterprise of a
Contracting State shall be taxable only in that State.
ARTICLE 16 Directors' Fees
Directors' fees and similar payments derived by a resident of a
Contracting State in his capacity as a member of the board of directors
of a company which is a resident of the other Contracting State may be
taxed in that other State.
ARTICLE 17 Artistes and Sportspersons
Notwithstanding the provisions of Articles 14 and 15, income derived by
a resident of a Contracting State as an artiste such as a theatre,
motion picture, radio or television artiste or a musician or as a
sportsperson, from his personal activities as such exercised in the
other Contracting State may be taxed in that other State.
(2) Where income in respect of or in connection with personal activities
exercised by an artiste or sportsperson accrues not to the artiste or
sportsperson himself but to another person, that income may,
notwithstanding the provisions of Articles 7, 14 and 15, be taxed in the
Contracting State in which the activities of the artistes or
sportspersons are exercised.
(3) Notwithstanding the provisions of paragraph 1, income derived by an
artiste or a sportsperson who is a resident of a Contracting State from
his personal activities as such exercised in the other Contracting
State, shall be taxable only in the first-mentioned State, if the
activities in the other State are supported wholly or substantially from
the public funds of the first-mentioned State, including any of its
political subdivisions, local authorities or statutory bodies.
(4) Notwithstanding the provisions of paragraph 2 and Articles 7, 14 and
15, where income in respect of or in connection with personal activities
exercised by an artiste or a sportsperson in a Contracting State accrues
not to the artiste or sportsperson himself but to another person, that
income shall be taxable only in the other Contracting State, if that
other person is supported wholly or substantially from the public funds
of that other State, including any of its political subdivisions, local
authorities or statutory bodies.
ARTICLE 18 Remuneration and Pensions in Respect of Government Service
Remuneration, other than a pension, paid by a Contracting State or a
political subdivision, a local authority or a statutory body thereof to
an individual in respect of services rendered to that State or
subdivision or authority or body shall be taxable only in that State.
(b) However, such remuneration shall be taxable only in the other
Contracting State if the services are rendered in that other State and
the individual is a resident of that State who:
is a national of that State; or
(ii) did not become a resident of that State solely for the purpose of
rendering the services.
(2)
Any pension paid by, or out of funds created by, a Contracting State or
a political subdivision, a local authority or a statutory body thereof
to an individual in respect of services rendered to that State or
subdivision or authority or body shall be taxable only in that State.
(b) However, such pension shall be taxable only in the other Contracting
State if the individual is a resident of, and a national of that other
State.
(3) The provisions of Articles 15, 16 and 19 shall apply to remuneration
and pensions in respect of services rendered in connection with a
business carried on by a Contracting State or a political subdivision or
a local authority or a statutory body thereof.
ARTICLE 19 Non-Government Pensions and Annuities
Any pension, other than a pension referred to in Article 18, or any
annuity derived by a resident of a Contracting State from sources within
the other Contracting State may be taxed only in the first-mentioned
State.
(2) The term "pension" means a periodic payment made in consideration of
past services or by way of compensation for injuries received in the
course of performance of services.
(3) The term "annuity" means a stated sum payable periodically at stated
times during life or during a specified or ascertainable period of time,
under an obligation to make the payments in return for adequate and full
consideration in money or money's worth.
ARTICLE 20 Students and Trainees
An individual who is or was a resident of a Contracting State
immediately before making a visit to the other Contracting State and is
temporarily present in the other State solely:
as a student at a recognised university, college, school or other
similar recognised educational institution in that other State;
(b) as a business or technical apprentice; or
(c) as a recipient of a grant, allowance or award for the primary
purpose of study, research or training from the Government of either
State or from a scientific, education, religious or charitable
organisation or under a technical assistance programme entered into by
the Government of either State; shall be exempt from tax in that other
State on:
all remittances from abroad for the purposes of his maintenance,
education, study, research or training;
(ii) the amount of such grant, allowance or award; and
(iii) any remuneration not exceeding United States Dollars 500 per month
or its equivalent in local currency in respect of services in that other
State provided the services are performed in connection with his study,
research or training or are necessary for the purposes of his
maintenance.
(2) The benefits of this Article shall extend only for such period of
time as may be reasonable or customarily required to complete the
education or training undertaken, but in no event shall any individual
have the benefits of this Article for more than five consecutive years
from the date of his first arrival in that other Contracting State.
ARTICLE 21 Teachers and Researchers
An individual who is or was a resident of a Contracting State
immediately before making a visit to the other Contracting State, and
who, at the invitation of any university, college, school or other
similar educational institution, visits that other State for a period
not exceeding two years solely for the purpose of teaching or research
or both at such educational institution shall be exempt from tax in that
other State on any remuneration for such teaching or research.
(2) This Article shall not apply to income from research if such
research is undertaken primarily for the private benefit of a specific
person or persons.
ARTICLE 22 Income of Government
The Government of a Contracting State shall be exempt from tax in the
other Contracting State in respect of income derived by that Government
from sources within the other State.
(2) The types of income to which paragraph 1 applies are:
dividends under Article 10;
(b) interest under Article 11; and
(c) any other income or gains derived from transactions not pursuant to
the conduct of commercial activities.
(3) For the purposes of paragraph 1, the term "Government":
in the case of Singapore means the Government of Singapore and shall
include:
the Monetary Authority of Singapore and the Board of Commissioners of
Currency;
(ii) the Government of Singapore Investment Corporation Pte Ltd to the
extent it is not engaged in the conduct of commercial activities;
(iii) a statutory body not engaged in the conduct of commercial
activities;
(iv) any other institution or body as may be agreed from time to time
between the competent authorities of the Contracting States;
(b) in the case of India means the Government of India and shall
include:
the Government of the States and the Union Territories of India;
(ii) the Reserve Bank of India or any of its subsidiaries which is not
engaged in the conduct of commercial activities;
(iii) a statutory body not engaged in the conduct of commercial
activities;
(iv) any other institution or body as may be agreed from time to time
between the competent authorities of the Contracting States.
ARTICLE 23 Income Not Expressly Mentioned
Items of income which are not expressly mentioned in the foregoing
Articles of this Agreement may be taxed in accordance with the taxation
laws of the respective Contracting States.
ARTICLE 24 Limitation of Relief
Where this Agreement provides (with or without other conditions) that
income from sources in a Contracting State shall be exempt from tax, or
taxed at a reduced rate in that Contracting State and under the laws in
force in the other Contracting State the said income is subject to tax
by reference to the amount thereof which is remitted to or received in
that other Contracting State and not by reference to the full amount
thereof, then the exemption or reduction of tax to be allowed under this
Agreement in the first-mentioned Contracting State shall apply to so
much of the income as is remitted to or received in that other
Contracting State.
(2) However, this limitation does not apply to income derived by the
Government of a Contracting State or any person approved by the
competent authority of that State for the purpose of this paragraph. The
term "Government" includes its agencies and statutory bodies.
ARTICLE 24A
A resident of a Contracting State shall not be entitled to the benefits
of paragraph 4A or paragraph 4C of Article 13 of this Agreement if its
affairs were arranged with the primary purpose to take advantage of the
benefits in the said paragraph 4A or paragraph 4C of Article 13 of this
Agreement, as the case may be.
(2) A shell or conduit company that claims it is a resident of a
Contracting State shall not be entitled to the benefits of paragraph 4A
or paragraph 4C of Article 13 of this Agreement. A shell or conduit
company is any legal entity falling within the definition of resident
with negligible or nil business operations or with no real and
continuous business activities carried out in that Contracting State.
(3) A resident of a Contracting State is deemed to be a shell or conduit
company if its annual expenditure on operations in that Contracting
State is less than S $200,000 in Singapore or Indian Rs. 5,000,000 in
India, as the case may be:
in the case of paragraph 4A of Article 13 of this Agreement, for each of
the 12 month periods in the immediately preceding period of 24 months
from the date on which the gains arise;
(b) in the case of paragraph 4C of Article 13 of this Agreement, for the
immediately preceding period of 12 months from the date on which the
gains arise.