Double Tax Agreement Cambodia Singapore: What You Need to Know
If you are a business owner or individual conducting business between Cambodia and Singapore, it is important to understand the Double Tax Agreement (DTA) between the two countries. A DTA is an agreement between two countries that is designed to eliminate double taxation of income that is earned in one country by a resident of the other country.
Here is what you need to know about the DTA between Cambodia and Singapore:
1. What is a Double Tax Agreement?
A DTA is an agreement between two countries that is designed to eliminate double taxation of income that is earned in one country by a resident of the other country. This agreement allows taxpayers who earn income in both countries to avoid paying taxes twice on the same income.
2. What is the Double Tax Agreement between Cambodia and Singapore?
The DTA between Cambodia and Singapore was signed in October 2004. This agreement aims to provide relief from double taxation for companies and individuals who are residents of both countries. The DTA covers income tax, capital gains tax, and dividend tax.
3. Benefits of the Double Tax Agreement
The main benefit of the DTA is the elimination of double taxation. This means that businesses and individuals who are residents of both countries will not have to pay taxes twice on the same income. Additionally, the DTA can help to promote trade and investment between the two countries by reducing the tax burden for companies that operate in both countries.
4. How to Claim Benefits under the Double Tax Agreement
To claim benefits under the DTA, businesses and individuals must provide proof of residency in both countries. This can be done by obtaining a certificate of residence from the relevant tax authority in each country. Once the certificate of residence has been obtained, it can be used to claim the benefits of the DTA.
5. Conclusion
Understanding the Double Tax Agreement between Cambodia and Singapore is important for businesses and individuals conducting business between the two countries. The DTA aims to provide relief from double taxation and promote trade and investment between the two countries. By obtaining a certificate of residence and following the guidelines outlined in the DTA, companies and individuals can avoid paying taxes twice on the same income.
