Germany and Singapore have recently agreed to enhance cooperation in tax matters to tackle cross-border tax evasion.
According to the finance ministry of Singapore, both sides have agreed to incorporate the internationally-agreed standard for exchange of information into their double taxation agreement.
The standard, as published in the Organization for Economic Cooperation and Development's Model Tax Convention, allows exchange of information for the administration and enforcement of the domestic tax laws of the requesting country.
The finance ministry explains that, in line with the standard, the scope for exchanging information will be significantly expanded.
In future, it will be possible to exchange information for all types of tax, as the exchange of information will no longer be restricted to taxes on income and on capital. The exchange of information will no longer depend on the taxpayer being resident in one of the contracting states.
In addition, the requested state is obliged to obtain information even in a case where it does not itself require the requested information for tax purposes. Furthermore, banking secrecy will not constitute an obstacle to exchanging information.
The finance ministry states that both countries will explore ways to further enhance bilateral cooperation in tax matters in the future.
The agreement is due to enter into force following ratification of the text by both treaty partner states.
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According to the finance ministry of Singapore, both sides have agreed to incorporate the internationally-agreed standard for exchange of information into their double taxation agreement.
The standard, as published in the Organization for Economic Cooperation and Development's Model Tax Convention, allows exchange of information for the administration and enforcement of the domestic tax laws of the requesting country.
The finance ministry explains that, in line with the standard, the scope for exchanging information will be significantly expanded.
In future, it will be possible to exchange information for all types of tax, as the exchange of information will no longer be restricted to taxes on income and on capital. The exchange of information will no longer depend on the taxpayer being resident in one of the contracting states.
In addition, the requested state is obliged to obtain information even in a case where it does not itself require the requested information for tax purposes. Furthermore, banking secrecy will not constitute an obstacle to exchanging information.
The finance ministry states that both countries will explore ways to further enhance bilateral cooperation in tax matters in the future.
The agreement is due to enter into force following ratification of the text by both treaty partner states.
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Disclaimer: Nothing I say should be taken as tax, legal or financial advice. Anything I say is for general informational purposes only. Always seek independent professional advice.
