SINGAPORE Law and Practice Contributed by: Lee Woon Shiu and Cheung Kuan Swan (Catherine), DBS Private Bank
7. Administrative Co-Operation 7.1 Legal Framework for Administrative Co- Operation The legal instruments governing administrative co- operation in tax matters in Singapore comprise the following. • Double Tax Agreements (DTAs) – Singapore’s DTAs generally incorporate provisions for the exchange of information, consistent with Article 26 of the OECD Model Tax Convention. • OECD Multilateral Convention on Mutual Adminis - trative Assistance in Tax Matters – as a signatory, Singapore participates in an established framework that facilitates comprehensive administrative assis - tance in tax matters. • Specific Intergovernmental Agreements – this includes arrangements such as the Intergovern - mental Agreement with the United States for the implementation of FATCA. Singapore’s approach to administrative co-operation in tax matters is fundamentally anchored in the fol - lowing elements. • DTAs – Singapore maintains an extensive network of more than 100 DTAs, most of which contain clauses enabling the exchange of information between competent authorities. These provisions are typically aligned with Article 26 of the OECD Model Tax Convention. • Multilateral Convention on Mutual Administrative Assistance in Tax Matters (MAC): Singapore signed the MAC in 2013 and ratified it in 2015, underscor - ing its commitment to international tax transpar - ency and co-operation. The MAC provides a robust legal framework for multiple forms of administrative assistance, including the exchange of information on request, spontaneous exchange, automatic exchange, tax examinations abroad, and assis - tance in the recovery of tax claims. • Common Reporting Standard (CRS) – introduced through the MAC and domestic legislation, the CRS requires Singapore financial institutions to report financial account information of foreign tax residents to the Inland Revenue Authority of Sin -
gapore for automatic exchange with participating jurisdictions. • Foreign Account Tax Compliance Act (FATCA) – an Intergovernmental Agreement with the United States enables the effective implementation of FATCA and promotes the automatic exchange of financial account information relating to United States persons. • Domestic legislation – the Income Tax Act and relevant subsidiary legislation provide the domestic legal basis for the implementation of international agreements on administrative co-operation. 7.2 Exchange of Information Clauses in Tax Agreements Singapore maintains active information exchange with its treaty partners through several established mecha - nisms. • Automatic Exchange of Information (AEOI) – Sin - gapore participates in AEOI under the Common Reporting Standard (CRS), commencing exchang - es in 2018 with numerous jurisdictions. Additional - ly, financial account information is exchanged auto - matically with the United States under the Foreign Account Tax Compliance Act (FATCA). • Spontaneous Exchange of Information – the Inland Revenue Authority of Singapore (IRAS) may spon - taneously share information relevant to another jurisdiction’s tax administration, particularly when it suggests potential tax avoidance or evasion. • Exchange of Information on Request (EOIR) – Singapore provides information upon request from treaty partners, subject to meeting the “foreseeably relevant” standard, pursuant to bilateral Double Tax Agreements (DTAs) and the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (MAC). Through these channels, Singapore demonstrates a strong commitment to international tax transparency and compliance. 7.3 Other Forms of International Tax Collaboration Singapore engages in a range of multilateral frame - works to enhance international tax co-operation, including the following.
398 CHAMBERS.COM
Powered by FlippingBook