The revised tax treaty and protocol between Singapore and Sri Lanka (Revised Treaty) entered into force on 31 December 2017.
This replaces the tax treaty signed on 29 May 1979 (Old Treaty).
Highlights of the Revised Treaty include the update of the permanent establishment (PE) provisions (such as adding a “Service PE” provision), reduction of the withholding tax rate on dividend and royalties, introduction of a capital gains article and removal of the limitation of relief clause.
With the removal of the limitation of relief clause, there is no longer a requirement for a Singapore tax resident to remit its foreign income to Singapore for relief under the Revised Treaty to apply.
