Dividends Tax in Foreign Jurisdictions
Updated 2 years ago
by
Junie Zhu
There is no dividends tax in Singapore. However, when dividends are remitted from a Singapore tax resident company to a non-tax resident individual/corporate recipient, these dividends will be taxed in the foreign country, unless it is specifically exempted or reduced under a Double Taxation Agreement (DTA) between the foreign country and Singapore.
This article is a compilation of some of the most frequently asked jurisdictions on dividends tax; the information are simplified from the various Double Taxation Agreement agreements for your easy understanding.
Dividends when received in UK
Dividends paid by a Singapore tax resident company, to a UK tax resident (individual and/or corporate) shall be taxed in UK not exceeding:
- 5% on gross dividends amount if the UK tax resident company controls directly/indirectly at least 10% of the voting power in the Singapore company; otherwise
- 15% of the gross dividends amounts for all other UK tax resident (individual and/or corporate) recipients
Dividends when received in US
There is no Double Taxation Agreement between Singapore and the US. For any dividends received in US, it is recommended for the client to consult a US tax advisor.
Dividends when received in Canada
Dividends paid by a Singapore tax resident company, to a Canadian tax resident (individual and/or corporate) shall be taxed in Canada not exceeding 15% on the gross dividends amount.
Dividends when received in France
Dividends paid by a Singapore tax resident company, to a French tax resident (individual and/or corporate) shall be taxed in France not exceeding:
- 10% of gross dividends amount, if the recipient is a French tax resident company owning directly/indirectly at least 10% of the Singapore tax resident company share capital; otherwise
- 15% of gross dividends amount for all other French tax resident (individual and/or corporate) recipients
Dividends when received in India
Dividends paid by a Singapore tax resident company, to an Indian tax resident (individual and/or corporate) shall be taxed in India not exceeding:
- 10% of gross dividends amount, if the beneficial owner is an Indian tax resident company owning at least 25% of the share capital of the Singapore tax resident company share capital; otherwise
- 15% of gross dividends amount for all other Indian tax resident (individual and/or corporate) recipients
Dividends when received in Australia:
Dividends received by an Australian tax resident (individual or corporate) shall be exempt from any tax in Australia.
Dividends when received in Indonesia:
Dividends paid by a Singapore tax resident company, to an Indonesian tax resident (individual and/or corporate) shall be taxed in Indonesia not exceeding:
- 10% of the gross amount of the dividends, if the recipient is a company which owns directly at least 25% of the capital of the company paying the dividends;
- 15% of the gross amount of the dividends in all other cases.
Dividends when received in Thailand:
Dividends paid by a Singapore tax resident company, to a Thailand tax resident (individual and/or corporate) shall be taxed in Thailand not exceeding:
- 10% of the gross amount of the dividends, if the recipient owns directly at least 25% of the capital of the company paying the dividends; 15% of the gross amount of the dividends in all other cases.
- Dividends paid by a Singapore company to a Thai company, will be exempt from Thai corporate income tax if the paying company has a minimum corporate tax rate of 15% and the Thai company has a 25% or more equity interest in the Singapore entity and maintains its shareholding in that company for a six-month period. Singapore charges 17% on corporate income therefore qualifying Thai companies receiving dividends from Singapore companies will go tax-free on that portion of their income.
