How do DTAAs work?
Dividends – when you receive money from a company you own, the country where the company is based may tax the dividend
- Dividends: Payments made by a company / Profits shared to its shareholders
Interest — if you lend money to someone overseas, the country where the borrower is located may tax the interest income
Royalties — if you’re licensing something to someone in another country, that country may tax the royalty payments
- Royalty payment: payments made to the owner of a certain asset/ Intellectual property (eg music, technology)
Below is a general summary comparing the DTAAs Singapore has with Philippines, Sri Lanka, India and Malaysia:
| Feature | Philippines | Sri Lanka | India | Malaysia |
| Dividends Tax Rate | 15% | 15% | 5% (portfolio investors) 15% (royalties) | 15% |
| Interest Tax Rate | 15% | 10% | 10% | 15% |
| Royalties Tax Rate | 15% | 15% | 15% | 10% |
| Tax Credit Available | For taxes paid in the Philippines | For taxes paid in Sri Lanka | For taxes paid in India | For taxes paid in Malaysia |