TALLINN - Estonian Finance Minister Aivar Soerd signed a new double taxation agreement with Singapore at the World Bank's annual conference last week.
"The purpose of the agreement concluded between Estonia and Singapore is to foster investment, secure the equal treatment of individuals and to eliminate any double taxation which may occur as a result of the two countries' legislation. The taxation accord sets down rules concerning any gains from cross-border economic activity between the two countries," the finance minister explained.
To achieve this, the agreement restricts income taxes from the country where the money was earned being imposed on residents of the other country. For example, wages earned by an Estonian citizen working for an Estonian company in Singapore would not be subjected to income tax by the government of Singapore.
The agreement will take effect after it is ratified in both nations' parliaments (see Story Page 11).
Estonia has finalized double taxation agreements with 35 countries.
