Singapore and Tanzania signed an income tax treaty on 9 June 2026 aimed at reducing double taxation on cross-border income, clarifying taxing rights between the two countries, and establishing withholding tax rates for dividends, interest, royalties, and fees for technical services.
The Inland Revenue Authority of Singapore has announced that an income tax treaty with Tanzania was signed on 9 June 2026.
The income tax treaty clarifies the taxing rights of both countries on income arising from cross-border business activities, and addresses the double taxation of such income. This will lower barriers to cross-border investment and trade and economic flows between both countries.
Under the treaty, the withholding tax rate on dividends is set at 7.5%, with an exemption for dividends paid by a company that is a resident of a Contracting State to the government of the other State.
The withholding tax rate on interest is 10%, although an exemption applies to interest arising in a Contracting State and paid to the government, central bank, wholly-owned government entities, or other qualifying bodies of the other State. Royalties are subject to a 10% withholding tax rate, while fees for technical services of a managerial, technical, or consultancy nature are also taxed at a rate of 10%.
The treaty will enter into force following the exchange of the instruments of ratification. In Tanzania, its provisions will take effect from 1 January of the year after entry into force. In Singapore, the treaty will apply to withholding taxes from 1 January of the year after entry into force, while its provisions relating to other taxes will apply from 1 January of the second year following entry into force.
