The Ministry of Finance states that the renewed "Agreement between the Taipei Representative Office in Singapore and the Singapore Trade Office in Taipei for the Elimination of Double Taxation with Respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance" (hereinafter referred to as "the Renewed Agreement"), which was signed on December 31, 2025, enters into force today after both sides completed their respective domestic law requirements and notified each other. It will become effective on January 1, 2027. With respect to taxes withheld at source, the Renewed Agreement shall apply to income payable on or after January 1, 2027; with respect to other taxes, it shall apply to income for taxable periods beginning on or after January 1, 2027. The Income Tax Agreement between Taiwan and Singapore signed on December 30, 1981 (hereinafter referred to as "the Original Agreement") shall cease to have effect, from the date of application of the Renewed Agreement, with respect to all matters covered by the Renewed Agreement.
The Ministry of Finance explains that Taiwan and Singapore maintain close economic and trade relations. According to statistics from the International Trade Administration, Ministry of Economic Affairs, Singapore was Taiwan's eighth-largest trading partner in 2025, with total bilateral trade reaching USD 53.4 billion. As of the end of last year, cumulative outbound investment from Taiwanese enterprises to Singapore amounted to approximately USD 32.5 billion, while Singaporean inbound investment in Taiwan totaled approximately USD 12.7 billion. The Renewed Agreement primarily reflects developments in bilateral economic and trade relations and was undertaken with reference to the Model Tax Convention of the Organisation for Economic Co-operation and Development (OECD) and the United Nations (UN), with a purpose to provide more appropriate tax relief measures (Appendix: Key Updates) so as to provide a favorable tax environment conducive to the bilateral trade and investment.
The Ministry of Finance further illustrates that Article 18 (Elimination of Double Taxation) of the Original Agreement provided indirect tax credits and a tax-sparing clause as preferential mechanisms to foster bilateral economic development. Given that neither Taiwan nor Singapore is a developing country, the credit mechanisms should be aligned with those provided under Taiwan's other effective income tax agreements, and take into account the need for enterprises to have a reasonable adjusting period for dealing with the change. Therefore, subparagraph 2 of paragraph 2 and paragraph 3 of Article 23 of the Renewed Agreement stipulate that these preferential mechanisms are subject to transition provisions which are applicable only after three taxable years from the date of application of the Renewed Agreement. Accordingly, the preferential mechanisms will apply in Taiwan only to profit-seeking enterprises' income tax filings for the tax years 2027, 2028, and 2029. The Ministry of Finance encourages enterprises to pay attention to the applicable timeframe and to make timely adjustments as necessary.
The Ministry of Finance emphasizes that it will continue, based on the principles of equality and reciprocity, to promote the conclusion of income tax agreements with countries that maintain close economic, trade, and investment relations with Taiwan, in order to further enhance the friendliness of Taiwan's tax environment and strengthen the international competitiveness of Taiwan's people and enterprises.
Appendix: Key Updates
| Article of the Renewed Agreement |
Original Agreement |
Renewed Agreement |
| Article 1 Persons Covered |
No provision to deal with Collective Investment Vehicles (CIVs). |
With a provision to deal with CIVs. Qualified CIVs deriving income are deemed to be residents and beneficial owners of such income. In the case of Taiwan, this includes mutual trust funds, securities investment trust funds, futures trust funds, and real estate investment trusts, which are publicly offered and established in accordance with relevant laws. |
| Article 5 Permanent Establishment (PE) |
|
|
| Article 8 Shipping and Air Transport |
In the source jurisdiction:
|
In the source jurisdiction:
|
| Article 9 Associated Enterprises |
No Transfer Pricing corresponding adjustment provisions. |
With Transfer Pricing corresponding adjustment provisions. |
| Article 10 Dividends |
The total amount of tax charged on dividends together with the corporate income tax payable in respect of the profits out of which such dividends are paid (including those taxes which have been reduced or exempted under the laws designed to promote economic development) shall not exceed 40% of the taxable income out of which the dividends are paid. | Reduced tax rate of 10%. |
| Article 11 Interest |
No such provisions. |
|
| Article 12 Royalties |
Reduced tax rate of 15%. |
Reduced tax rate of 10%. |
| Article 13 Capital gains |
No such provisions. |
|
| Article 15 Dependent Personal Services |
Remuneration derived by an individual in respect of services performed on ships or aircraft in international traffic is exempted from tax in the jurisdiction where the enterprise is a resident. |
Remuneration derived by an individual in respect of services performed on ships or aircraft in international traffic may be taxed in the jurisdiction where the enterprise is a resident. |
| Article 20 Students |
An individual renders services in the visiting jurisdiction under specified conditions and within the limits below is exempted from tax:
|
Payments received from sources outside the visiting jurisdiction for the purposes of maintenance, education, or training are exempted from tax in the visiting jurisdiction. |
| Article 23 Elimination of Double Taxation |
In the case of Taiwan:
|
In the case of Taiwan:
|
Attachment:
- Download the English and Chinese texts of the renewed Taiwan-Singapore Income Tax Agreement, or visit the Ministry of Finance website (https://www.mof.gov.tw) >Home>International Fiscal Affairs>Income Tax Agreements.
- Regarding administrative procedures related to the Income Tax Agreements, please refer to the "Regulations Governing Application of Agreements for the Avoidance of Double Taxation with Respect to Taxes on Income."
- Regarding application forms for Income Tax Agreements, please refer to the link in point 1.
Contact person: Ms. Wang, Yu-Hsuan, Senior Executive Officer.
Contact Number: +886-2-23228169.
Contact person: Ms. Lin, Tian-Cin, Section Chief.
Contact Number: +886-2-23228150.