It is not uncommon for a company or person established in one country to make a taxable profit (profits, profits) in another country. A person may have to pay taxes on that income on the spot and in the country where it was produced. The stated objectives for concluding a contract often include reducing double taxation, eliminating tax evasion and promoting the efficiency of cross-border trade.  It is generally accepted that tax treaties improve the security of taxpayers and tax authorities in their international transactions.  There are two types of double taxation: double taxation and double economic taxation. In the first case, where the source rule overlaps, the tax is collected by two or more countries, in accordance with their national legislation, for the same transaction, the income is born or applies in their respective jurisdictions. In the latter case, when the same transaction, the element of income or capital is taxed in two or more states, but in the hands of another person, there is double taxation.  This article contains a brief analysis of the DBA (DTA) between Singapore and India. Keep in mind that the information provided is only used to provide general advice and is not intended to replace professional advice. A DBA between Singapore and another jurisdiction is intended to avoid double taxation of income collected by a resident of the other jurisdiction in a jurisdiction. A DBA also highlights tax duties between Singapore and its contractor on different types of income from cross-border economic activities between the two jurisdictions.
The agreements also provide for a reduction or exemption from tax on certain types of income. This raises another question: where are they cooked? Some of them may have gone to Singapore. Inflows from Singapore doubled over the same period. In 2017, Singapore was the second largest source of inflows, with a value of 20% for $4.5 billion. A year later, this figure doubled to $8 billion, or 40% of capital inflows from foreign direct investment in 2018. Singapore remains by far the largest source in 2019. The protocol amending the India-Maurice Agreement, signed on 10 May 2016, provides for a capital gains tax at the source of the shares acquired in a company established in India from 1 April 2017. At the same time, investments made before April 1, 2017 have not been classified as capital gains tax in India. If these capital gains occur during the transitional period from April 1, 2017 to March 31, 2019, the tax rate is capped at 50% of India`s internal tax rate.