MOF issued a press release announcing that Singapore and India have signed a Protocol to amend their bilateral Avoidance of Double Taxation Agreement (DTA). The Protocol was signed in New Delhi between Mr Lim Thuan Kuan, Singapore’s High Commissioner to India and Shri Sushil Chandra, Chairman of the Central Board of Direct Taxes, India.
Following a meeting between Prime Ministers Lee Hsien Loong and Narendra Modi in October 2016, DPM Tharman Shanmugaratnam and India’s Minister of Finance and Corporate Affairs of India Shri Arun Jaitley met to finalise the terms of the revised DTA, as well as discuss steps to sustain and deepen bilateral economic ties between Singapore and India, including facilitating investment flows.
With the revision to the India-Mauritius DTA to phase out capital gains tax exemption, the capital gains tax exemption for shares in the Singapore-India DTA, which had been pegged to the India-Mauritius DTA, has had to be similarly amended. Singapore and India have reached agreement to phase out the capital gains tax exemption gradually, and have also committed to find new ways to promote bilateral investments.
