The Double Taxation Avoidance Agreement (DBA) between India and Singapore is a tax treaty between two countries to avoid double taxation of income that may flow between the two countries. The Double Taxation Convention (DBA) between Singapore and India entered into force in 1994. The provisions of this Agreement have been amended by a Protocol signed on 29 June 2005. The second protocol was signed on 24 June 2011 and entered into force on 1 September 2011. The DBA agreement eliminates double taxation of income between Singapore and India and reduces the overall tax burden on the people of both countries. In the absence of a DBA, this income is doubly taxed, i.e. two countries apply their tax on the same income. This double taxation unfairly penalizes income flows between countries, thus discouraging trade and commerce between countries. PSCs are one of the leading forms of legal agreements in the minerals and energy industry.
The CSP defines the rights of investors who obtain authorization from the host government to explore and exploit hydrocarbon resources, in addition to determining profit-benefit. However, in order to avoid the misuse of this derogation, in particular by third-country nationals who set up holding companies in Singapore to benefit from the capital gains exemption, the contract added a `limitation of benefits (LOB)` clause. Under this clause, a company registered in Singapore is not entitled to the capital gains exemption if the sole purpose of setting up the company was to benefit from that benefit. In addition, companies that have a negligible business in Singapore, without business continuity, are not entitled to this benefit. Under the LOB clause, the agreement does not apply to shell companies. Income-Tax Act, 1961: Section 90 Communication: Agreement between the Government of the Republic of India and the Government of the Republic of Singapore on the Prevention of Double Taxation and the Prevention of Tax Evasion with Respect to Taxes on Income For the purpose of concluding an Agreement for the Avoidance of Double Taxation and the Prevention of Tax Evasion on Income. Capital gains were not regulated by the previous DBA agreement. It has been amended on the model of the Organisation for Economic Co-operation and Development (OECD). The OECD Model is an agreement developed by OECD countries, which aims primarily to serve as a guideline on tax issues in bilateral contract negotiations.
Indonesia and Singapore signed their first DBA agreement in 1992 and negotiations on content change began in mid-July 2015. . .
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