The updated tax treaty between the Singapore Trade Office in Taiwan and the Taiwan Representative Office in Singapore took effect on 13 February 2026, replacing the 1982 arrangement and introducing lower withholding tax rates to support cross-border trade and investment.
The tax treaty between Singapore and Taiwan for the elimination of double taxation with respect to income taxes and the prevention of tax evasion and avoidance was signed on 31 December 2025 and entered into force on 13 February 2026.
It was signed by Yip Wei Kiat, Trade Representative of the Singapore Trade Office in Taiwan, and Dr. Tung Chen-yuan, Representative of the Taiwan Representative Office in Singapore.
The 2026 Agreement replaces the prior agreement in force since 1982 and lowers withholding tax rates on income arising from cross-border business activities, a move expected to enhance bilateral trade and investment between Singapore and Taiwan.
The agreement covers all income taxes imposed in each territory, regardless of how they are levied, including taxes on total income or on specific elements of income, such as gains from the alienation of movable or immovable property. In Singapore, it applies to income tax, while in Taipei, it applies to the profit-seeking enterprise income tax, individual income tax, and basic income tax.
Under the agreement, when the beneficial owner of the income is a resident of the other territory, the following withholding tax caps apply:
- Dividends are subject to a maximum rate of 10% of the gross amount.
- Interest is capped at 10%, with a 0% exemption where the recipient is the other territory or its authorities, where interest is paid bank-to-bank, or where the recipient is a specified entity such as the Monetary Authority of Singapore or GIC Private Limited (including specified subsidiaries).
- Royalties are capped at 10% of the gross amount.
The general effective date for the application of the agreement’s provisions is 1 January 2027.
Earlier, on 19 August 2025, Taiwan’s Ministry of Foreign Affairs announced that negotiations to update the 1982 tax treaty with Singapore were ongoing.
