Singapore and Panama today signed an Agreement for the avoidance of double taxation ("DTA").

Singapore's Minister for Foreign Affairs Mr. George Yeo signed the treaty in Singapore with his Panamanian counterpart Vice President and Foreign Minister Mr. Juan Carlos Varela.

The DTA is expected to enhance bilateral trade links by minimising the double taxation of income that may occur as a result of cross-border economic activities between the two countries. Amongst other provisions, the DTA provides for lower withholding taxes, sets out permanent establishment rules for businesses and the internationally agreed Standard for exchange of information for tax purposes.

The full text of the DTA is available here (PDF, 97KB). The DTA will enter into force after it is ratified by both countries.