The Ministry of Foreign Affairs of the Republic of Singapore and the Embassy of the United States of America, signed an agreement to exempt from income tax on a reciprocal basis, income derived by residents of the other country.
In case of a Corporation, the exemption shall apply only if the Corporation meets the following conditions:
- More than 50 percent of the value of the corporation's stock is owned, directly or indirectly, by individuals who are citizens of the United States or of another Country which grants a reciprocal exemption to residents (both individuals and corporations) of the Republic of Singapore; or
- The corporation's stock is primarily and regularly traded on an established securities market in the United States, or is wholly-owned by a corporation whose stock is so traded and which is also organized in the United States. For the purposes of sub-paragraph (I), the Government of the United States of America will be treated as an individual resident of the United States of America.
In case of difficulty or doubt as to the interpretation or application of the agreement, competent authorities of the two countries shall seek to resolve such difficulty. The competent authorities are:
- In the United States, the Secretary of the Treasury or his authorized representative; and
- In Singapore, the Minister for Finance or his authorized representative.
Either Government may terminate this agreement by giving written notice of termination through diplomatic channels.
