Tax Agreement Between Turkmenistan and Singapore Enters Into Force

BUSINESS TURKMENISTAN
Tax Agreement Between Turkmenistan and Singapore Enters Into Force
The Avoidance of Double Taxation Agreement was signed during the two-day state visit of the President of Turkmenistan Gurbanguly Berdimuhamedov to Singapore in August last year. (Photo: The Straits Times)

The Avoidance of Double Taxation Agreement (DTA) between Singapore and Turkmenistan, signed on 28 August 2019, entered into force on 30 April 2020, the Inland Revenue Authority of Singapore (IRAS), the main tax administrator of the country, said in its Thursday press release.

According to the statement, the DTA will enhance the cross-border trade and investment between both countries. It lowers the withholding tax rates on income flows arising from cross-border business activities, and stipulates the taxing rights of both jurisdictions to minimize double taxation.

The DTA was signed during the two-day state visit of the President of Turkmenistan Gurbanguly Berdimuhamedov to Singapore in August last year. Besides the DTA, two pacts were also signed, particularly the agreement on mutual exemption of visa requirements for diplomatic, official or service passport holders and a Memorandum of Understanding on Legal Cooperation.

Double Taxation Agreements (DTAs) are treaties between two or more countries to avoid international double taxation of income and property. The main purpose of DTA is to ensure taxpayers' equal rights and security, to prevent evasion of taxation and to encourage cross-border trade efficiency.