On 27 August 2019, Singapore signed a Double Tax Treaty (DTA) with Turkmenistan. 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 tax treaty reduced the following withholding tax on income:
- Dividends reduced to zero if the beneficial owner is a company other than a partnership which holds at least 25% of the capital of the company paying the divided. In other cases, withholding taxes on dividends is zero;
- Interest is reduced to 10% except it is exempt if the payer or payee is a government or if payment is guaranteed by a government; and
- Royalties are reduced to 10%.
The DTA will enter into force after ratification by both countries.