Double Tax Agreement Endorsed

Bandar Seri Begawan - The Singapore-Brunei Darussalam avoidance of Double Taxation Agreement, DTA, has been ratified.

The Singapore 54th DTA came into effect as of yesterday, December 14. According to a media release issued by the Singapore High Commission in Brunei Darussalam, the provisions between the two countries will apply to all types of income earned from January 1, 2007. The agreement is hoped to promote greater cross-flow of trade, investment, technical know-how and expertise.

With the increasing trend of Singapore-resident companies venturing overseas, the same income may be subject to tax both in Singapore and Brunei. The agreement will alleviate the double taxation that may arise from the cross-border transactions between the two countries.

Such an agreement will also make clear the taxing rights between Brunei Darussalam and Singapore on all forms of income from cross border economic activities between the two countries.

Singapore is Asia's largest harbour and is used as a trading hub for numerous Asian countries as well as globally. The agriculture sector is almost non-existent in Singapore where a great majority of food-processing products are imported. Without mining natural resources, the economy is diversified and relies on four major activity sectors namely electronics, petrochemicals, information technology and logistics industries.

The financial and banking sector have also developed into a global scale. The city state is very largely open to foreign trade and is a member of WTO, Asean and Apec. Its main trade export partners are Malaysia, the United States and Hong Kong. -- Courtesy of The Brunei Times

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