The DBA between Singapore and Thailand, which came into force in 2017, is an important step towards increasing trade and investment flows between the two countries. It guarantees attractive tax treatment for investors active in both countries. This agreement is particularly beneficial for many companies that create their management and other back-office functions in Singapore (see how to set up a business in Singapore) while maintaining their turnover in Thailand; It is a structure that many multinationals use to exploit Thailand`s enormous work while having access to Singapore`s financial services infrastructure. In 2019, the Singapore Monetary Authority and the Thailand Office of Insurance Commission signed a Memorandum of Understanding to strengthen insurance supervision cooperation. This agreement promotes an effective partnership between insurance regulators. The agreement promotes the framework for cooperation, information exchange and insurance monitoring assistance between the two authorities and improves the infrastructure of the insurance system in both jurisdictions. The purpose of the DBAs is to reduce the double taxation of income in one jurisdiction that is that of a resident of another resident. The Agreement on Double Taxation between Singapore and Thailand (DBA) provides an exemption from double taxation in the situation in which income is taxed for both countries. The DBA imposes double taxation when income is taxed in the two contracting states.

In the case of Thailand, Singaporean income tax is accepted as a credit in relation to Thai tax due for Singapore`s income. The Thai tax payable for Thailand`s income is allowed as a credit on the tax payable for these incomes in Singapore. The credit thus granted must not exceed the tax calculated before the transfer of credit by the country concerned. In the case of dividends paid by a Singapore company to a Thai company holding at least 25% of the voting rights in the company paid, these incomes may be exempt from Thai tax; However, Thailand applies a tax rate that applies to the recipient`s remaining taxable income when such an exemption has not been granted. As a result, a singapore beneficiary takes into account a credit equal to Thai tax that the company must pay on dividends collected. The provisions of the DBA apply to persons residing in one or both contracting states. For more information on the Singapore-Thailand agreement to avoid double taxation and prevent income tax evasion, see IRAS.