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Doing Business in Singapore: Opportunities for Canadian Businesses
Singapore has been a popular destination for many Canadian businesses to grow and expand their business operations because of its safety, political stability, and access to one of the largest economies in the world – South East Asia.
Our article explores the incentives, agreements and treaties in place between Singapore and Canada to help business thrive.
The Singapore - Canada Tax Treaty
Singapore signed its first double tax agreement with Canada in 1976 to enhance economic cooperation and provide mutually beneficial tax conditions for businesses in Canada and Singapore. The Singapore-Canada double taxation agreement provides a series of efficiencies for tax reductions and exemptions on various types of income to encourage trade between both jurisdictions.
The Singapore - Canada double taxation convention provides the following tax rates*:
- A 15% tax rate on royalties payments
- A 15% tax rate on dividend payments
- A 15% tax rate on interest payments
*Dividends paid by a company which is a resident of Singapore to a resident of Canada will 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.
More information can be found on the Canadian Tax treaty page here.
Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) with Singapore came into force on December 30, 2018 and allows Canadian companies to invest in Singapore with ease and grants protection from unfair and discriminatory treatment, as well as providing greater predictability and transparency.
The CPTPP also eliminates tariffs for 94% of Singapore’s exports to CPTPP markets which allows for ease of trade between Canada and Singapore.
More information about the CPTPP can be found here.
How can Hawksford help?
Hawksford offers in-market connections, practical tools, tax solutions and tips for doing business in Singapore. Get in touch with Hawksford today to see why Singapore should be your next business expansion destination.
This article is intended for general information only and is not intended to apply to constitute legal advice. Hawksford accepts no liability for any errors or for any loss, of any nature, to any person by reliance on this article.