|The Statement on Aliens Applying for R.O.C.-Singapore Tax Treaty (Article 12- Remuneration for Dependent Personal Services)|
National Taxation Bureau of Taipei, Ministry of Finance (NTBT) expressed that, at present, R.O.C. has signed and entered into force of 32 tax treaties and the content of each treaty and the documents to be attached are not all the same. If foreign taxpayers would like to apply for the agreement for the avoidance of double taxation, please do remember to check the regulations of the treaty between two countries and prepare relevant supporting documents.
NTBT pointed out that, for example, the regulation of Section 2, Paragraph 2, Article 12 of the “Exchange of Letters Between Taxation Department of Ministry of Finance, Republic of China and Inland Revenue Commission, Republic of Singapore Constituting an Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income (hereinafter referred to as “R.O.C.-Singapore tax treaty”)” regulates that, when the remuneration or income is paid by, or on behalf of, a person who is a resident of Singapore, aside from submitting documents required by the R.O.C.-Singapore tax treaty and Article 16 of the “Regulations Governing Application of Agreements for the Avoidance of Double Taxation with Respect to Taxes on Income,” supporting documents proving that the Singapore employer is a Singapore resident must also be provided by the taxpayer.
NTBT interpreted with an example that, the Singapore branch company of insurance company A assigned a staff, Mr. Alpha, to Taiwan to perform the customer service agreement between company A and Company B in Taiwan, Mr. Alpha stayed in Taiwan for 135 days from February to June (no more than 183 days) in the calendar year of 2017. Although Mr. Alpha worked for Company B during his stay in Taiwan, his work was still under the supervision of the chief executive of the Singapore branch company of insurance company. In this case, Mr. Alpha submitted his 2017 personal resident certificate issued by Inland Revenue Authority in Singapore(IRAS), his employment contract, tax certificate, declaration of work contents, along with the affirmation from company A demonstrating the identity of the payer, the amount of the payment, and the remuneration was paid by or on behalf of company A rather than born by a permanent establishment(PE) the employer has in Taiwan to NTBT to apply for the elimination of double taxation between R.O.C. and Singapore. However, when NTBT required Mr. Alpha to provide a document certifying that the Singapore branch of insurance company A is a Singapore resident according to Section 2, Paragraph 2, Article 12 of R.O.C.-Singapore tax treaty, he failed to submit it. Despite the fact that the company is a Singapore branch company, it is not a Singapore resident in accordance with the tax law in Singapore. Therefore, such document is not available. As a result, since the service remuneration of Mr. Alpha did not meet the requirement of the R.O.C.-Singapore tax treaty, he was demanded for supplementary tax payment by NTBT.
NTBT called on that, when a foreign taxpayer applies for elimination of double taxation according to the tax treaty between Taiwan and other states, please do check the tax regulation in such treaty and apply to national bureau with relevant documents according to the content of such treaty and Article 16 of the “Regulations Governing Application of Agreements for the Avoidance of Double Taxation with Respect to Taxes on Income”.
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