Putin Endorses Agreement on Double Taxation Avoidance With Singapore

Russian President Vladimir Putin has signed a law on ratifying Russia-Singapore agreement on the avoidance of double taxation and prevention of fiscal evasion with respect to the income taxes, according to the official internet portal of legal information.

The accord reached on November 17, 2015 in Moscow is aimed at exempting from tax withholding in one of contracting state on the interest paid on loans granted by banks of another contracting country.

Russia and Singapore have also agreed to exempt the dividends paid by the governments of the contracting states and their central banks from tax at the source of payment in order to to stimulate the investment under the state line.

All these changes may allow Russian borrowers to reduce the costs of attracting and servicing loans of Singaporean banks, simultaneously encouraging investment.