S’pore, Germany agree to enhance cooperation in tax matters

SINGAPORE: Germany and Singapore have agreed to enhance their cooperation in tax matters to tackle cross—border tax evasion.

Both sides will integrate the Standard for Exchange of Information into their avoidance of double taxation agreement. The agreement will come into force after ratification domestically.

In line with the standard, the scope for exchanging information will also be expanded significantly. In future, it will be possible to exchange information for all types of tax.

The exchange of information will no longer be restricted just to taxes on income and on capital, and will no longer depend on the taxpayer being a resident in one of the contracting states. The requested state is also obligated to obtain information even when it does not itself require the requested information for tax purposes.

Banking secrecy will also no longer be an obstacle to exchanging information. Both countries said they will explore ways to enhance bilateral cooperation on tax matters.

—CNA/ac