DTAA Between India and Singapore in 2025

The Double Taxation Avoidance Agreement (DTAA) between India and Singapore is a treaty that ensures individuals and businesses don’t pay tax twice on the same income in both countries. It defines how tax rights are shared, helping avoid double taxation on cross-border earnings. For NRIs, investors, and companies operating in both nations, understanding the DTAA is key to staying compliant, saving on taxes, and enabling smoother financial and business operations between India and Singapore.

DTAA Between India and Singapore – Quick Info

This table provides essential facts about the tax treaty between India and Singapore for a quick reference.

Aspect	Details
Full Legal Name	Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion for Taxes on Income
Signatory Nations	The Republic of India and the Republic of Singapore
Original Treaty Date	May 27, 1994 (Effective from September 27, 1994)
Key Amendments	Protocols signed in 2005, 2011, and 2016 (notably impacting capital gains).
Applicable Incomes	Covers income from employment (salary), business operations, property, capital gains, dividends, interest, royalties, and technical service fees.
Essential Documentation	Tax Residency Certificate (TRC), Permanent Account Number (PAN), Form 10F, Form 67.
Relief Mechanism	The treaty primarily utilises the Foreign Tax Credit (FTC) method.
Respective Authorities	Central Board of Direct Taxes (CBDT) in India; Inland Revenue Authority of Singapore (IRAS) in Singapore.

Objective of the DTAA Between India and Singapore

The Double Taxation Avoidance Agreement (DTAA) between Singapore and India aims to resolve the double taxation issue, which can be a significant barrier to international trade and commerce. The agreement’s purpose is to foster a climate of economic certainty. By clearly defining which country has the right to tax specific types of income, it encourages foreign direct investment and the exchange of services and capital. It also incorporates provisions for mutual assistance to combat tax evasion, ensuring the fair application of each country’s tax laws.

Key Features of India-Singapore DTAA

The India-Singapore tax treaty is defined by several key characteristics that outline its application and the mechanisms through which it provides relief.

Scope of the agreement

The treaty’s jurisdiction extends to both countries’ residents and applies to income taxes. The DTAA between India and Singapore income tax provisions cover taxes levied by each government, ensuring that most forms of earnings fall under its protective umbrella. This provides a clear legal framework for taxpayers operating in both nations.

Who can claim DTAA benefits (residents, companies, trusts, etc)?

Eligibility to claim benefits is contingent upon being a ‘resident’ of either India or Singapore. This status is determined by the domestic tax laws of each country and generally applies to any individual or legal entity liable to tax therein. Proving this residency via official documentation is paramount for availing of treaty benefits.

What are the Tax Relief Methods Used in India-Singapore DTAA?

The treaty primarily uses the credit method to prevent double taxation. A resident of India who has paid tax on their Singapore-sourced income can receive a credit for that amount against their Indian tax bill. This ensures that the income is effectively taxed only once. Understanding the difference between NRE and NRO accounts is crucial to managing NRI finances effectively under these rules.

DTAA Rates Between India and Singapore

One of the treaty’s most significant advantages is the establishment of ‘beneficial’ tax rates, often lower than the standard domestic rates prescribed under the DTAA between India and Singapore’s Income Tax Act.

This table highlights the DTAA between India and Singapore TDS rates for various income streams.

Type of Income	Concessional DTAA Tax Rate	Governing Article
Dividends	10% or 15% based on the equity holding percentage	Article 10
Interest	10% or 15% based on the payer and recipient’s status	Article 11
Royalties & Fees for Technical Services (FTS)	10%	Article 12
Capital Gains (on Shares sold after March 31, 2017)	Taxed in the source country under its domestic laws	Article 13

Important DTAA Articles to Know

A deeper understanding of specific articles is necessary for anyone navigating cross-border transactions.

DTAA between India and Singapore for Salary Income

Article 15 of the treaty explicitly addresses the DTAA between India and Singapore for salary income. It states that salary is typically taxed where the employment is performed. However, a resident of Singapore working temporarily in India would not be taxed in India if their stay is less than 183 days, their employer is not an Indian resident, and a permanent establishment in India does not pay the salary.

DTAA Article 12: Royalties and Fees for Technical Services

Article 12 is especially relevant in the digital economy. It caps the withholding tax on payments for royalties and fees for technical services (FTS) at 10%. This provision makes it more affordable for businesses to access technology and expertise from the partner country.

Article 25 of the DTAA Between India and Singapore: Elimination of Double Taxation

This article is the treaty’s functional engine. It mandates how tax relief will be provided through the foreign tax credit method. This process is governed by specific income tax rules for NRIs that must be followed for successful claims.

What are the Documents required to claim DTAA TDS?

To successfully claim the reduced TDS rates, a Singaporean resident must provide the following documentation to the Indian payer:

• Tax Residency Certificate (TRC): The definitive proof of residency, issued by the IRAS.
• Form 10F: A mandatory electronic declaration filed on the Indian Income Tax portal.
• PAN Card: A copy of the Permanent Account Number.
• No Permanent Establishment (PE) Declaration: A statement confirming that the non-resident has no fixed business presence in India.

How to Claim DTAA Benefits?

Accessing the treaty’s benefits is not automatic; it requires specific procedural steps.

• For Singapore Residents Earning in India: Provide the TRC and other documents to the Indian entity to ensure tax is deducted at the lower DTAA rate. Obtaining a Lower TDS certificate for NRIs in advance is a proactive measure for property sales.
• For Indian Residents Earning in Singapore: Declare your global income in your Indian tax return. File Form 67 before submitting your return to claim a foreign tax credit for the taxes paid in Singapore.

DTAA TDS Rate Chart (2025) – India-Singapore

When paying a Singaporean resident, the Indian payer must deduct Tax at Source (TDS). The treaty offers a clear advantage over standard domestic rates.

Nature of Remittance	Standard TDS Rate (Income Tax Act)	Preferential TDS Rate (India-Singapore DTAA)
Payment of Interest	20% (+ surcharge/cess)	10% or 15%
Payment for Royalties	20% (+ surcharge/cess)	10%
Payment for Technical Services	20% (+ surcharge/cess)	10%

Form 15CA/15CB requirement for remittance from India

Remitting funds from India to a non-resident is monitored through compliance forms. This process requires a clear understanding of Form 15CA and 15CB for NRIs, which act as a checkpoint for the Tax Department to verify tax compliance before funds leave the country.

DTAA Impact on NRIs and Investors

For NRIs in Singapore and investors, the DTAA’s impact is significant and multifaceted.

How NoBroker Can Help with NRI Services?

Navigating the legal and financial landscape of two countries can be complex. NoBroker is dedicated to simplifying this for you. Our specialised NRI services provide comprehensive support, from property searches to transaction assistance. Whether you’re buying a resale home from an NRI or need help with an NRI power of attorney, our team ensures you can manage your Indian assets seamlessly from Singapore.

Frequently Asked Questions