Singapore (tax/treaty)

Termination This Agreement shall remain in force indefinitely until terminated by a Contracting State. Either Contracting State may terminate this Agreement, through the diplomatic channels, by giving notice of termination at least 6 months before the end of any calendar year beginning after the expiration of 5 years from the date of entry into force of this Agreement. In such event, this Agreement shall cease to have effect: a. in the case of the Kingdom of Saudi Arabia: i. with regard to taxes withheld at source, in respect of amounts paid after the end of the calendar year in which such notice is given; and ii. with regard to other taxes, in respect of taxable years beginning after the end of the calendar year in which such notice is given; b. in the case of Singapore: in respect of tax chargeable for any year of assessment beginning on or after first day of January in the second calendar year following the year in which such notice is given. IN WITNESS WHEREOF the undersigned, duly authorised thereto, have signed this Agreement. DONE in duplicate at Riyadh this 18th day of Jumada'I 1431H corresponding to the 2nd day of May 2010 in the Arabic and English languages, both texts being equally authentic. PROTOCOL At the moment of signing the Agreement for the avoidance of double taxation and the prevention of tax evasion with respect to taxes on income, this day concluded between the Government of the Kingdom of Saudi Arabia and the Government of the Republic of Singapore, the undersigned have agreed that the following provisions shall form an integral part of the Agreement: 1. With reference to paragraph 1(d) of Article 3 (General Definitions)of the Agreement : a. The term "person" shall include a Contracting State, its administrative subdivisions or local authorities or statutory bodies. b. The term "statutory body" means an autonomous body constituted under the law of a Contracting State that performs governmental functions. This term shall have the same meaning wherever it appears in this Agreement. 2. With reference to paragraph 1 of Article 4 (Resident) of the Agreement : The term "resident of a Contracting State" includes a legal person constituted under the laws of a Contracting State that is generally exempt from tax in that Contracting State and is established and maintained in that Contracting State either: a. exclusively for a religious, charitable, educational, scientific, or other similar purpose; or b. to provide pensions or other similar benefits to employees pursuant to a plan. 3. With reference to paragraph 4 of Article 5 (Permanent Establishment) of the Agreement : An enterprise of a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because of the sale of goods or merchandise belonging to that enterprise displayed at an occasional temporary fair or exhibition after the closing of the said fair or exhibition. 4. With reference to Article 7 (Business Profits) of the Agreement : a. The term "business profits" includes, but is not limited to income derived from manufacturing, mercantile, banking, insurance, from the operation of inland transportation, the furnishing of services and the rental of tangible personal movable property. Such a term does not include the performance of personal services by an individual either as an employee or in an independent capacity. b. c. Each Contracting State shall apply its domestic law with regard to insurance activities. 5. With reference to Article 8 (Shipping and Air Transport) of the Agreement : a. Income from debt-claims with regard to monies required for the operations of ships or aircraft in international traffic shall be regarded as profits derived from the operation of such ships or aircraft, and the provision of paragraph 1 of Article 8 of this Agreement shall apply. b. Notwithstanding the provisions of this Article, the Agreement between the Republic of Singapore and the Kingdom of Saudi Arabia for Reciprocal Exemption with respect to taxes on income of air transport enterprises of the two countries, signed on 6th August 1991, shall have full force and effect unless otherwise terminated. Where either this Article or the said Agreement provides a more favourable treatment, the enterprise concerned shall be entitled to that treatment. 6. With reference to Article 10 (Dividends) of the Agreement : Under the current laws of Singapore, dividends paid by a company which is a resident of Singapore to a resident of the Kingdom of Saudi Arabia are not subjected to a dividend tax in Singapore. 7. With reference to Articles 10 (Dividends), 11 (Income from Debt-Claims) and 12 (Royalties) of the Agreement : A trustee who is a resident in a Contracting State and who receives dividends, income from debt-claims or royalties from the other Contracting State, shall be deemed to be the beneficial owner of such income, as long as the trustee is subject to tax on such income of the trust in the first-mentioned Contracting State. 8. With reference to Article 25 (Exchange of Information) of the Agreement: It is understood that information received under the said Article shall be used only for the purposes of the taxes covered by the Agreement. IN WITNESS WHEREOF the undersigned, duly authorised thereto, have signed this Protocol. DONE in duplicate at Riyadh this 18th day of Jumada'I 1431H corresponding to the 2nd day of May 2010 in the Arabic and English languages, both texts being equally authentic.