Singapore and South Korea sign updated tax treaty

The governments of Singapore and the Republic of Korea signed an updated double tax treaty on 13 May 2019, which is to replace the existing treaty that entered into force in 1979 treaty and a protocol that entered into force in 2013.

The updated treaty enhances the cross-border trade and investment between both countries. Amongst other changes, it lowers the withholding tax rate for royalties to 5% and expands the scope of capital gains tax exemption. It will come into force when ratified by both signatories.