What is DTAA with Singapore?
Nexa Consultancy | Startup & Finance Glossary
The Double Taxation Avoidance Agreement (DTAA) between India and Singapore is critical for startups using services from Singaporean companies (e.g., SaaS tools). It specifies lower TDS rates on payments for royalties and technical services, typically 10%.
Startup Example: An Indian startup pays a Singapore-based SaaS company. By obtaining the Singaporean company's Tax Residency Certificate, the startup can deduct TDS at 10% under the DTAA, instead of the higher default rate under the Income Tax Act.
Navigating DTAAs is a key part of our foreign payment compliance solution.