The Government of the Grand Duchy of Luxembourg and the Government of the Republic of Singapore,
Desiring to conclude an Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with
respect to Taxes on Income and on Capital,
Have Agreed as follows:
Article 1
Persons Covered
This Agreement shall apply to persons who are residents of one or both of the Contracting States.
Article 2
Taxes Covered
1. This Agreement shall apply to taxes on income and on capital imposed on behalf of a Contracting State or of its
local authorities, irrespective of the manner in which they are levied.
2. There shall be regarded as taxes on income and on capital all taxes imposed on total income, on total capital, or
on elements of income or of capital, including taxes on gains from the alienation of movable or immovable property.
3. The existing taxes to which the Agreement shall apply are in particular:
(a) in Singapore:
– the income tax
(hereinafter referred to as “Singapore tax”);
(b) in Luxembourg:
(i) the income tax on individuals (l’impôt sur le revenu des personnes physiques);
(ii) the corporation tax (l’impôt sur le revenu des collectivités);
(iii) the capital tax (l’impôt sur la fortune); and
(iv) the communal trade tax (l’impôt commercial communal);
(hereinafter referred to as “Luxembourg tax”).
4. The Agreement shall apply also to any identical or substantially similar taxes that are imposed after the date
of signature of the Agreement in addition to, or in place of, the existing taxes. The competent authorities of the
Contracting States shall notify each other of any significant changes that have been made in their taxation laws.
Article 3
General Definitions
1. For the purposes of this Agreement, unless the context otherwise requires:
(a) the term “Singapore” means the Republic of Singapore and, when used in a geographical sense, includes its land
territory, internal waters and territorial sea, as well as any maritime area situated beyond the territorial sea
which has been or might in the future be designated under its national law, in accordance with international
law, as an area within which Singapore may exercise sovereign rights or jurisdiction with regards to the sea,
the sea-bed, the subsoil and the natural resources;
(b) the term “Luxembourg” means the Grand Duchy of Luxembourg and, when used in a geographical sense,
means the territory of the Grand Duchy of Luxembourg;
(c) the term “person” includes an individual, a company and any other body of persons;
(d) the term “company” means any body corporate or any entity that is treated as a body corporate for tax
purposes;
(e) the terms “enterprise of a Contracting State” and “enterprise of the other Contracting State” mean
respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a
resident of the other Contracting State;
(f) the term “international traffic” means any transport by a ship or aircraft operated by an enterprise of a
Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting
State;
(g) the term “competent authority” means:
(i) in Singapore, the Minister for Finance or his authorised representative;
(ii) in Luxembourg, the Minister of Finance or his authorised representative;
(h) the term “national”, in relation to a Contracting State, means:
(i) any individual possessing the nationality or citizenship of that Contracting State; and
(ii) any legal person, partnership or association deriving its status as such from the laws in force in that
Contracting State.
2. As regards the application of the Agreement at any time by a Contracting State, any term not defined therein
shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that State for
the purposes of the taxes to which the Agreement applies, any meaning under the applicable tax laws of that State
prevailing over a meaning given to the term under other laws of that State.
Article 4
Resident
1. For the purposes of this Agreement, the term “resident of a Contracting State” means any person who, under
the laws of that State, is liable to tax therein by reason of his domicile, residence, place of management or any other
criterion of a similar nature, and also includes that State and any local authority or statutory body thereof.
2. Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, then his
status shall be determined as follows:
(a) he shall be deemed to be a resident only of the State in which he has a permanent home available to him; if he
has a permanent home available to him in both States, he shall be deemed to be a resident only of the State
with which his personal and economic relations are closer (centre of vital interests);
(b) if the State in which he has his centre of vital interests cannot be determined, or if he has not a permanent
home available to him in either State, he shall be deemed to be a resident only of the State in which he has
an habitual abode;
(c) if he has an habitual abode in both States or in neither of them, he shall be deemed to be a resident only of
the State of which he is a national;
(d) in any other case, the competent authorities of the Contracting States shall settle the question by mutual
agreement.
3. Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both
Contracting States, then it shall be deemed to be a resident only of the State in which its place of effective management
is situated. If its place of effective management cannot be determined, the competent authorities of the Contracting
States shall settle the question by mutual agreement.
Article 5
Permanent Establishment
1. For the purposes of this Agreement, the term “permanent establishment” means a fixed place of business through
which the business of an enterprise is wholly or partly carried on.
2. The term “permanent establishment” includes especially:
(a) a place of management;
(b) a branch;
(c) an office;
(d) a factory;
(e) a workshop; and
(f) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources.
3. The term “permanent establishment” also encompasses:
(a) a building site, a construction, assembly, installation or dredging project or supervisory activities in connection
therewith, but only if such site, project or activities lasts more than 12 months;
(b) the furnishing of services, including consultancy services, by an enterprise of a Contracting State through
employees or other personnel engaged by the enterprise for such purpose, but only if activities of that nature
continue (for the same or a connected project) within the other Contracting State for a period or periods
aggregating more than 365 days in any 15-month period.
4. Notwithstanding the preceding provisions of this Article, the term “permanent establishment” shall be deemed
not to include:
(a) the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging
to the enterprise;
(b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of
storage, display or delivery;
(c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of
processing by another enterprise;
(d) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or of
collecting information, for the enterprise;
(e) the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other
activity of a preparatory or auxiliary character;
(f) the maintenance of a fixed place of business solely for any combination of activities mentioned in subparagraphs
(a) to (e), provided that the overall activity of the fixed place of business resulting from this
combination is of a preparatory or auxiliary character.
5. Notwithstanding the provisions of paragraphs 1 and 2, where a person - other than an agent of an independent
status to whom paragraph 6 applies - is acting on behalf of an enterprise and has, and habitually exercises, in a
Contracting State an authority to conclude contracts in the name of the enterprise, that enterprise shall be deemed
to have a permanent establishment in that State in respect of any activities which that person undertakes for the
enterprise, unless the activities of such person are limited to those mentioned in paragraph 4 which, if exercised
through a fixed place of business, would not make this fixed place of business a permanent establishment under the
provisions of that paragraph.
6. An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely because it
carries on business in that State through a broker, general commission agent or any other agent of an independent
status, provided that such persons are acting in the ordinary course of their business.
7. The fact that a company which is a resident of a Contracting State controls or is controlled by a company which
is a resident of the other Contracting State, or which carries on business in that other State (whether through a
permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the
other.
Article 6
Income from Immovable Property
1. Income derived by a resident of a Contracting State from immovable property (including income from agriculture
or forestry) situated in the other Contracting State may be taxed in that other State.
2. The term “immovable property” shall have the meaning which it has under the law of the Contracting State in
which the property in question is situated. The term shall in any case include property accessory to immovable property,
livestock and equipment used in agriculture and forestry, rights to which the provisions of general law respecting landed
property apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the
working of, or the right to work, mineral deposits, sources and other natural resources; ships, boats and aircraft shall
not be regarded as immovable property.
3. The provisions of paragraph 1 shall apply to income derived from the direct use, letting, or use in any other form
of immovable property.
4. The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterprise
and to income from immovable property used for the performance of independent personal services.
Article 7
Business Profits
1. The profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries
on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries
on business as aforesaid, the profits of the enterprise may be taxed in the other State but only so much of them as is
attributable to that permanent establishment.
2. Subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on business in the
other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be
attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and
separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly
independently with the enterprise of which it is a permanent establishment.
3. In determining the profits of a permanent establishment, there shall be allowed as deductions expenses which are
incurred for the purposes of the permanent establishment, including executive and general administrative expenses so
incurred, whether in the State in which the permanent establishment is situated or elsewhere.
4. Insofar as it has been customary in a Contracting State to determine the profits to be attributed to a permanent
establishment on the basis of an apportionment of the total profits of the enterprise to its various parts, nothing in
paragraph 2 shall preclude that Contracting State from determining the profits to be taxed by such an apportionment as
may be customary; the method of apportionment adopted shall, however, be such that the result shall be in accordance
with the principles contained in this Article.
5. No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent
establishment of goods or merchandise for the enterprise.
6. For the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment shall
be determined by the same method year by year unless there is good and sufficient reason to the contrary.
7. Where profits include items of income which are dealt with separately in other Articles of this Agreement, then
the provisions of those Articles shall not be affected by the provisions of this Article.
Article 8
Shipping and Air Transport
1. Profits derived by an enterprise of a Contracting State from the operation of ships or aircraft in international
traffic shall be taxable only in that State.
2. The provisions of paragraph 1 shall also apply to profits from the participation in a pool, a joint business or an
international operating agency.
3. For the purposes of this Article, profits from the operation of ships or aircraft in international traffic shall include:
(a) profits from the rental on a bareboat basis of ships or aircraft;
(b) profits from the use, maintenance or rental of containers (including trailers and related equipment for the
transport of containers), used for the transport of goods or merchandise; and
(c) interest on funds connected with the operations of ships or aircraft;
where such rental or such use, maintenance or rental, or such interest, as the case may be, is incidental to the operation
of ships or aircraft in international traffic.
Article 9
Associated enterprises
1. Where
(a) an enterprise of a Contracting State participates directly or indirectly in the management, control or capital
of an enterprise of the other Contracting State, or
(b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of a
Contracting State and an enterprise of the other Contracting State,
and in either case conditions are made or imposed between the two enterprises in their commercial or financial
relations which differ from those which would be made between independent enterprises, then any profits which
would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not
so accrued, may be included in the profits of that enterprise and taxed accordingly.
2. Where a Contracting State includes in the profits of an enterprise of that State - and taxes accordingly - profits
on which an enterprise of the other Contracting State has been charged to tax in that other State and the profits so
included are profits which would have accrued to the enterprise of the first-mentioned State if the conditions made
between the two enterprises had been those which would have been made between independent enterprises, then that
other State shall make an appropriate adjustment to the amount of the tax charged therein on those agreed profits.
In determining such adjustment, due regard shall be had to the other provisions of this Agreement and the competent
authorities of the Contracting States shall if necessary consult each other.
Article 10
Dividends
1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting
State shall, if the recipient is the beneficial owner of the dividends, be taxable only in that other State. This paragraph
shall not affect the taxation of the company in respect of the profits out of which the dividends are paid.
2. The term “dividends” as used in this Article means income from shares, “jouissance” shares or “jouissance” rights,
mining shares, founders’ shares or other rights, not being debt-claims, participating in profits, as well as income from
other corporate rights which is subjected to the same taxation treatment as income from shares by the laws of the
State of which the company making the distribution is a resident.
3. The provisions of paragraph 1 shall not apply if the beneficial owner of the dividends, being a resident of a
Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a
resident, through a permanent establishment situated therein, or performs in that other State independent personal
services from a fixed base situated therein, and the holding in respect of which the dividends are paid is effectively
connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as
the case may be, shall apply.
4. Where a company which is a resident of a Contracting State derives profits or income from the other Contracting
State, that other State may not impose any tax on the dividends paid by the company, except insofar as such dividends
are paid to a resident of that other State or insofar as the holding in respect of which the dividends are paid is effectively
connected with a permanent establishment or a fixed base situated in that other State, nor subject the company’s
undistributed profits to a tax on the company’s undistributed profits, even if the dividends paid or the undistributed
profits consist wholly or partly of profits or income arising in such other State.
Article 11
Interest
1. Interest arising in a Contracting State and beneficially owned by a resident of the other Contracting State shall be
taxable only in that other State.
2. The term “interest” as used in this Article means income from debt-claims of every kind, whether or not secured
by mortgage and whether or not carrying a right to participate in the debtor’s profits, and in particular, income
from government securities and income from bonds or debentures, including premiums and prizes attaching to such
securities, bonds or debentures. Penalty charges for late payment shall not be regarded as interest for the purpose of
this Article.
3. The provisions of paragraph 1 shall not apply if the beneficial owner of the interest, being a resident of a
Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent
establishment situated therein, or performs in that other State independent personal services from a fixed base situated
therein, and the debt-claim in respect of which the interest is paid is effectively connected with such permanent
establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.
4. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them
and some other person, the amount of the interest, having regard to the debt-claim for which it is paid, exceeds the
amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship,
the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the
payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other
provisions of this Agreement.
Article 12
Royalties
1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that
other State.
2. However, such royalties may also be taxed in the Contracting State in which they arise and according to the laws
of that State, but if the beneficial owner of the royalties is a resident of the other Contracting State, the tax so charged
shall not exceed 7 per cent of the gross amount of the royalties.
3. The term “royalties” as used in this Article means payments of any kind received as a consideration for the use of,
or the right to use, any copyright of literary, artistic or scientific work including cinematograph films, or films or tapes
used for radio or television broadcasting, any patent, trade mark, design or model, plan, secret formula or process, or
for information concerning industrial, commercial or scientific experience.
4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties, being a resident of a
Contracting State, carries on business in the other Contracting State in which the royalties arise, through a permanent
establishment situated therein, or performs in that other State independent personal services from a fixed base
situated therein, and the right or property in respect of which the royalties are paid is effectively connected with such
permanent establishment or fixed base. In such case, the provisions of Article 7 or Article 14, as the case may be, shall
apply.
5. Royalties shall be deemed to arise in a Contracting State when the payer is a resident of that State. Where,
however, the person paying the royalties, whether he is a resident of a Contracting State or not, has in a Contracting
State a permanent establishment or a fixed base in connection with which the liability to pay the royalties was incurred,
and such royalties are borne by such permanent establishment or fixed base, then such royalties shall be deemed to
arise in the State in which the permanent establishment or fixed base is situated.
6. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them
and some other person, the amount of the royalties, having regard to the use, right or information for which they are
paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of
such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess
part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the
other provisions of this Agreement.
Article 13
Capital Gains
1. Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in
Article 6 and situated in the other Contracting State may be taxed in that other State.
2. Gains from the alienation of movable property forming part of the business property of a permanent establishment
which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a
fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing
independent personal services, including such gains from the alienation of such a permanent establishment (alone or
with the whole enterprise) or of such fixed base, may be taxed in that other State.
3. Gains derived by a resident of a Contracting State from the alienation of ships or aircraft operated in international
traffic, or movable property pertaining to the operation of such ships or aircraft, shall be taxable only in that State.
4. Gains from the alienation of any property other than that referred to in the preceding paragraphs of this Article
shall be taxable only in the Contracting State of which the alienator is a resident.
Article 14
Independent Personal Services
1. Income derived by an individual who is a resident of a Contracting State in respect of professional services or
other activities of an independent character shall be taxable only in that State except in the following circumstances,
when such income may also be taxed in the other Contracting State:
(a) if he has a fixed base regularly available to him in the other Contracting State for the purpose of performing
his activities; in that case, only so much of the income as is attributable to that fixed base may be taxed in that
other Contracting State; or
(b) if his stay in the other Contracting State is for a period or periods exceeding in the aggregate 365 days in any
15-month period; in that case, only so much of the income as is derived from his activities performed in that
other State may be taxed in that other State.
2. The term “professional services” includes especially independent scientific, literary, artistic, educational or teaching
activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants.
Article 15
Dependent Personal Services
1. Subject to the provisions of Articles 16, 18 and 19, salaries, wages and other similar remuneration derived by a
resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is
exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom
may be taxed in that other State.
2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in
respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if:
(a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in
any twelve month period commencing or ending in the calendar year concerned; and
(b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State; and
(c) the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the
other State.
3. Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment
exercised aboard a ship or aircraft operated in international traffic by an enterprise of a Contracting State shall be
taxable only in that State. However, if the remuneration is derived by a resident of the other Contracting State, it may
also be taxed in that other State.
Article 16
Directors’ Fees
Directors’ fees and other similar payments derived by a resident of a Contracting State in his capacity as a member of
the board of directors of a company which is a resident of the other Contracting State may be taxed in that other State.
Article 17
Artistes and Sportspersons
1. Notwithstanding the provisions of Articles 14 and 15, income derived by a resident of a Contracting State as an
entertainer, such as a theatre, motion picture, radio or television artiste, or a musician or as a sportsperson, from his
personal activities exercised in the other Contracting State, may be taxed in that other State.
2. Where income in respect of or in connection with personal activities exercised by an entertainer or a sportsperson
accrues not to the entertainer or sportsperson himself but to another person, that income may, notwithstanding the
provisions of Articles 7, 14 and 15, be taxed in the Contracting State in which the activities of the entertainer or
sportsperson are exercised.
3. The provisions of paragraphs 1 and 2 shall not apply to income derived from activities exercised in a Contracting
State by an artiste or a sportsperson if the visit to that State is wholly or mainly supported by public funds of one or
both of the Contracting States or local authorities or statutory bodies thereof. In such case, the income shall be taxable
only in the Contracting State in which the artiste or the sportsperson is a resident.
Article 18
Pensions
1. Subject to the provisions of paragraph 2 of Article 19, pensions and other similar remuneration paid to a resident
of a Contracting State in consideration of past employment shall be taxable only in that State.
2. Notwithstanding the provisions of paragraph 1, pensions and other payments made under a social security scheme
of a Contracting State shall be taxable only in that State.
3. Notwithstanding the provisions of paragraph 1, pensions and other similar remuneration (including lump-sum
payments) arising in a Contracting State and paid to a resident of the other Contracting State shall be taxable only in
the first-mentioned State, provided that such payments derive from contributions paid to or from provisions made
under a pension scheme by the recipient or on his behalf and that these contributions, provisions or the pensions or
other similar remuneration have been subjected to tax in the first-mentioned State under the ordinary rules of its tax
laws.
Article 19
Government Service
1. (a) Salaries, wages and other similar remuneration paid by a Contracting State or a local authority or a statutory
body thereof to an individual in respect of services rendered to that State or authority or body shall be
taxable only in that State.
(b) However, such salaries, wages and other similar remuneration shall be taxable only in the other Contracting
State if the services are rendered in that State and the individual is a resident of that State who:
(i) is a national of that State; or
(ii) did not become a resident of that State solely for the purpose of rendering the services.
2. (a) Notwithstanding the provisions of paragraph 1, pensions and other similar remuneration paid by, or out
of funds created by, a Contracting State or a local authority or a statutory body thereof to an individual in
respect of services rendered to that State or authority or body shall be taxable only in that State.
(b) However, such pensions and other similar remuneration shall be taxable only in the other Contracting State
if the individual is a resident of, and a national of, that State.
3. The provisions of Articles 15, 16, 17 and 18 shall apply to salaries, wages and other similar remuneration in
respect of services rendered in connection with a business carried on by a Contracting State or a local authority or a
statutory body thereof.
Article 20
Students
Payments which a student or business apprentice who is or was immediately before visiting a Contracting State a
resident of the other Contracting State and who is present in the first-mentioned State solely for the purpose of his
education or training receives for the purpose of his maintenance, education or training shall not be taxed in that State,
provided that such payments arise from sources outside that State.
Article 21
Other Income
1. Items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing Articles of
this Agreement shall be taxable only in that State.
2. The provisions of paragraph 1 shall not apply to income, other than income from immovable property as defined
in paragraph 2 of Article 6, if the recipient of such income, being a resident of a Contracting State, carries on business
in the other Contracting State through a permanent establishment situated therein, or performs in that other State
independent personal services from a fixed base situated therein, and the right or property in respect of which the
income is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of
Article 7 or Article 14, as the case may be, shall apply.
3. Notwithstanding the provisions of paragraphs 1 and 2, items of income of a resident of a Contracting State not
dealt with in the foregoing Articles of this Agreement and arising in the other Contracting State may also be taxed in
that other State.
Article 22
Capital
1. Capital represented by immovable property referred to in Article 6, owned by a resident of a Contracting State
and situated in the other Contracting State, may be taxed in that other State.
2. Capital represented by movable property forming part of the business property of a permanent establishment
which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a
fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing
independent personal services, may be taxed in that other State.
3. Capital represented by ships and aircraft operated in international traffic by a resident of a Contracting State and
by movable property pertaining to the operation of such ships and aircraft, shall be taxable only in that State.
4. All other elements of capital of a resident of a Contracting State shall be taxable only in that State.
Article 23
Elimination of Double Taxation
1. In Singapore, double taxation shall be avoided as follows:
Where a resident of Singapore derives income from Luxembourg which, in accordance with the provisions of this
Agreement, may be taxed in Luxembourg, Singapore shall, subject to its laws regarding the allowance as a credit
against Singapore tax of tax payable in any country other than Singapore, allow the Luxembourg tax paid, whether
directly or by deduction, as a credit against the Singapore tax payable on the income of that resident. Where
such income is a dividend paid by a company which is a resident of Luxembourg to a resident of Singapore which
is a company owning directly or indirectly not less than 10 per cent of the share capital of the first-mentioned
company, the credit shall take into account the Luxembourg tax paid by that company on the portion of its profits
out of which the dividend is paid.
2. In Luxembourg, double taxation shall be avoided as follows:
Subject to the provisions of the law of Luxembourg regarding the elimination of double taxation which shall not
affect the general principle hereof, double taxation shall be eliminated as follows:
(a) Where a resident of Luxembourg derives income or owns capital which, in accordance with the provisions
of this Agreement, may be taxed in Singapore, Luxembourg shall, subject to the provisions of sub-paragraphs
(b), (c) and (d), exempt such income or capital from tax, but may, in order to calculate the amount of tax on
the remaining income or capital of the resident, apply the same rates of tax as if the income or capital had
not been exempted.
(b) Where a resident of Luxembourg derives income which, in accordance with the provisions of Article 12,
Article 17 and paragraph 3 of Article 21 may be taxed in Singapore, Luxembourg shall allow as a deduction
from the income tax on individuals or from the corporation tax of that resident an amount equal to the tax
paid in Singapore. Such deduction shall not, however, exceed that part of the tax, as computed before the
deduction is given, which is attributable to such items of income derived from Singapore.
(c) The provisions of sub-paragraph (a) shall not apply to income derived or capital owned by a resident of
Luxembourg where Singapore applies the provisions of this Agreement to exempt such income or capital
from tax or applies the provisions of paragraph 2 of Article 12 to such income.
(d) Where a company which is a resident of Luxembourg derives dividends from Singapore sources, Luxembourg
shall exempt such dividends from tax, provided that the company which is a resident of Luxembourg
holds directly at least 10 per cent of the capital of the company paying the dividends since the beginning
of the accounting year and if this company is subject in Singapore to an income tax corresponding to the
Luxembourg corporation tax. The abovementioned shares in the Singapore company are, under the same
conditions, exempt from the Luxembourg capital tax. The exemption under this sub-paragraph shall also apply
notwithstanding that the Singapore company is exempted from tax or taxed at a reduced rate in Singapore
in accordance with Singapore laws providing incentives for the promotion of economic development in
Singapore.
Article 24
Non-Discrimination
1. Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any
requirement connected therewith, which is other or more burdensome than the taxation and connected requirements
to which nationals of that other State in the same circumstances, in particular with respect to residence, are or may be
subjected.
2. The taxation on a permanent establishment which an enterprise of a Contracting State has in the other
Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises of that
other State carrying on the same activities.
3. Nothing in this Article shall be construed as obliging a Contracting State to grant to:
(a) residents of the other Contracting State any personal allowances, reliefs and reductions for tax purposes
which it grants to its own residents; or
(b) nationals of the other Contracting State those personal allowances, reliefs and reductions for tax purposes
which it grants to its own nationals who are not residents of that State or to such other persons as may be
specified in the taxation laws of that State.
4. Except where the provisions of paragraph 1 of Article 9, paragraph 4 of Article 11, or paragraph 6 of Article 12,
apply, interest, royalties and other disbursements paid by an enterprise of a Contracting State to a resident of the other
Contracting State shall, for the purpose of determining the taxable profits of such enterprise, be deductible under the
same conditions as if they had been paid to a resident of the first-mentioned State. Similarly, any debts of an enterprise
of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable
capital of such enterprise, be deductible under the same conditions as if they had been contracted to a resident of the
first-mentioned State.
5. Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or
indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned State
to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and
connected requirements to which other similar enterprises of the first-mentioned State are or may be subjected.
6. Where a Contracting State grants tax incentives to its nationals designed to promote economic or social
development in accordance with its national policy and criteria, it shall not be construed as discrimination under this
Article.
7. The provisions of this Article shall apply to the taxes which are the subject of this Agreement.
Article 25
Mutual Agreement Procedure
1. Where a person considers that the actions of one or both of the Contracting States result or will result for him
in taxation not in accordance with the provisions of this Agreement, he may, irrespective of the remedies provided
by the domestic law of those States, present his case to the competent authority of the Contracting State of which
he is a resident or, if his case comes under paragraph 1 of Article 24, to that of the Contracting State of which he is
a national. The case must be presented within three years from the first notification of the action resulting in taxation
not in accordance with the provisions of the Agreement.
2. The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able
to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the
other Contracting State, with a view to the avoidance of taxation which is not in accordance with the Agreement. Any
agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States.
3. The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any
difficulties or doubts arising as to the interpretation or application of the Agreement. They may also consult together
for the elimination of double taxation in cases not provided for in the Agreement.
4. The competent authorities of the Contracting States may communicate with each other directly for the purpose
of reaching an agreement in the sense of the preceding paragraphs.
Article 26
Exchange of Information
1. The competent authorities of the Contracting States shall exchange such information as is foreseeably relevant for
carrying out the provisions of this Agreement or to the administration or enforcement of the domestic laws concerning
taxes of every kind and description imposed on behalf of the Contracting States or of their local authorities, insofar as
the taxation thereunder is not contrary to the Agreement. The exchange of information is not restricted by Articles 1
and 2.
2. Any information received under paragraph 1 by a Contracting State shall be treated as secret in the same manner
as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities
(including courts and administrative bodies) concerned with the assessment or collection of, the enforcement or
prosecution in respect of, the determination of appeals in relation to the taxes referred to in paragraph 1, or the
oversight of the above. Such persons or authorities shall use the information only for such purposes. They may disclose
the information in public court proceedings or in judicial decisions.
3. in no case shall the provisions of paragraphs 1 and 2 be construed so as to impose on a Contracting State the
obligation:
(a) to carry out administrative measures at variance with the laws and administrative practice of that or of the
other Contracting State;
(b) to supply information which is not obtainable under the laws or in the normal course of the administration of
that or of the other Contracting State;
(c) to supply information which would disclose any trade, business, industrial, commercial or professional secret
or trade process, or information the disclosure of which would be contrary to public policy (ordre public).
4. If information is requested by a Contracting State in accordance with this Article, the other Contracting State
shall use its information gathering measures to obtain the requested information, even though that other State may not
need such information for its own tax purposes. The obligation contained in the preceding sentence is subject to the
limitations of paragraph 3 but in no case shall such limitations be construed to permit a Contracting State to decline to
supply information solely because it has no domestic interest in such information.
5. In no case shall the provisions of paragraph 3 be construed to permit a Contracting State to decline to supply
information solely because the information is held by a bank, other financial institution, nominee or person acting in an
agency or a fiduciary capacity or because it relates to ownership interests in a person.
Article 27
Members of Diplomatic Missions and Consular Posts
Nothing in this Agreement shall affect the fiscal privileges of members of diplomatic missions or consular posts under
the general rules of international law or under the provisions of special agreements.
Article 28
Entry into Force
1. The Contracting States shall notify each other in writing, through diplomatic channels, that the procedures
required by its law for the entry into force of this Agreement have been satisfied.
2. The Agreement shall enter into force on the date of the later of these notifications and its provisions shall have
effect:
(a) in Singapore:
(i) in respect of taxes withheld at source on amounts liable to be paid, deemed paid or paid (whichever is
the earliest) on or after 1 January of the calendar year next following the year in which the Agreement
enters into force;
(ii) in respect of tax chargeable (other than taxes withheld at source) for any year of assessment beginning
on or after 1 January in the second calendar year following the year in which the Agreement enters into
force; and
(iii) in respect of Article 26, for requests made on or after the date of entry into force concerning information
for taxes relating to taxable periods beginning on or after 1 January of the calendar year next following
the date on which the Agreement enters into force; or where there is no taxable period, for all charges
to tax arising on or after 1 January of the calendar year next following the date on which the Agreement
enters into force;
(b) in Luxembourg:
(i) in respect of taxes withheld at source, to income derived on or after 1 January of the calendar year next
following the year in which the Agreement enters into force;
(ii) in respect of other taxes on income, and taxes on capital, to taxes chargeable for any taxable year
beginning on or after 1 January of the calendar year next following the year in which the Agreement enters
into force;
(iii) in respect of Article 26, for requests made on or after the date of entry into force concerning information
for taxes relating to taxable periods beginning on or after 1 January of the calendar year next following
the date on which the Agreement enters into force; or where there is no taxable period, for all charges
to tax arising on or after 1 January of the calendar year next following the date on which the Agreement
enters into force.
3. The Agreement between the Republic of Singapore and the Grand Duchy of Luxembourg for the Avoidance of
Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital, with Protocol,
signed on 6th March 1993 shall be terminated and cease to be effective from the date upon which this Agreement has
effect in respect of the taxes to which this Agreement applies in accordance with the provisions of paragraph 2 of this
Article.
4. Notwithstanding paragraph 3, the provisions of Article 23 (1)(c) of the Agreement between the Republic of
Singapore and the Grand Duchy of Luxembourg for the Avoidance of Double Taxation and the Prevention of Fiscal
Evasion with respect to Taxes on Income and on Capital, with Protocol, signed on 6th March 1993 shall remain
applicable for a 5-year period from the date this Agreement has effect.
Article 29
Termination
This Agreement shall remain in force until terminated by a Contracting State. Either Contracting State may terminate
the Agreement, through diplomatic channels, by giving notice of termination at least six months before the end of any
calendar year beginning after the expiration of a period of five years from the date of its entry into force. In such event,
the Agreement shall cease to have effect:
(a) in Singapore:
(i) in respect of taxes withheld at source on amounts liable to be paid, deemed paid or paid (whichever is
the earliest) after the end of that calendar year in which the notice is given;
(ii) in respect of tax chargeable (other than taxes withheld at source) for any year of assessment beginning
on or after 1 January in the second calendar year following the year in which the notice is given; and
(iii) in all other cases, after the end of that calendar year in which the notice is given;
(b) in Luxembourg:
(i) in respect of taxes withheld at source, to income derived on or after 1 January of the calendar year next
following the year in which the notice is given;
(ii) in respect of other taxes on income, and taxes on capital, to taxes chargeable for any taxable year
beginning on or after 1 January of the calendar year next following the year in which the notice is given;
and
(iii) in all other cases, after the end of that calendar year in which the notice is given.
In witness whereof the undersigned, duly authorised thereto, have signed this Agreement.
Done in duplicate at Washington DC on this 9th day of October 2013 in the English language.
PROTOCOL
At the moment of the signing of the Agreement between the Government of the Grand Duchy of Luxembourg
and the Government of the Republic of Singapore for the Avoidance of Double Taxation and the Prevention of Fiscal
Evasion with respect to Taxes on Income and on Capital, the undersigned have agreed upon the following provisions,
which shall form an integral part of the Agreement:
I. With reference to Article 4:
It is understood that a collective investment vehicle is a resident of a Contracting State if under the domestic
laws of that State it is liable to tax therein by reason of its domicile, residence, place of management or any other
criterion of a similar nature. A collective investment vehicle is also considered liable to tax if it is subject to the
tax laws of that Contracting State but is exempt from tax only if it meets all the requirements for exemption
specified in the tax laws of that Contracting State.
II. With reference to Articles 10, 11 and 12:
A trustee liable to tax in a Contracting State in respect of dividends, interest or royalties shall be deemed to be
the beneficial owner of that interest or those dividends or royalties.
III. With reference to Article 26:
The competent authority of the requesting State shall provide the following information to the competent
authority of the requested State when making a request for information under the Agreement to demonstrate
the foreseeable relevance of the information to the request:
(a) the identity of the person under examination or investigation;
(b) a statement of the information sought including its nature and the form in which the requesting State wishes
to receive the information from the requested State;
(c) the taxable period with respect to which the information is requested;
(d) the tax purpose for which the information is sought;
(e) grounds for believing that the information requested is held in the requested State or is in the possession or
control of a person within the jurisdiction of the requested State;
(f) to the extent known, the name and address of any person believed to be in possession of the requested
information;
(g) a statement that the requesting State has pursued all means available in its own territory to obtain the
information, except those that would give rise to disproportionate difficulties.
In witness whereof the undersigned, duly authorised thereto, have signed this Protocol.
Done in duplicate at Washington DC on this 9th day of October 2013 in the English language.
Read also:
Regulated or
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