On 2nd August 2017 last week Nigeria signed a Double Taxation Avoidance Agreement with the Government of Singapore that would enable investors from both countries attract investments through protection from Double taxation in their transactions.
Kemi Adeosun, the Minister of Finance, on behalf of the Federal Government signed the agreement. While Singapore’s Minister of State for Trade and Investment, Dr Koh Poh Koon, endorsed the pact on behalf of his government.
According to Adeosun the Double Taxation Agreement clarifies the taxing rights of both countries on all forms of income flows that will arise from cross-border business activities, and minimizes the double taxation of such income. This will lower barriers to cross-border investment and boost trade and economic flows between the two countries. She further added that with the conclusion of the agreement on double tax avoidance, between both countries all outstanding issues have been resolved and following the resolution, the Federal Executive Council at its meeting of November 16, 2016, approved the content of the agreement and authorized her to sign the agreement on behalf of Nigeria. In addition, she explained that the trade volume between Nigeria and Singapore which stood at N846 billion between 2011 and 2015 is expected to rise.. The balance out of trade was N222 billion in Nigeria’s favor while balance of trade net of petroleum Export stood at N42 billion in favor of Singapore.
In terms of volume of Foreign Direct Investment from Singapore to Nigeria, between 2010 and March 2011, Mrs Kemi Adeosun said the figure stood at $908.8 million.
She listed some of the areas of economic cooperation between Nigeria and Singapore and said both countries had enjoyed steady business relationship and with the DTA it would strengthen the business relationship further.
Dr. Koon the Singaporean trade minister in his comments said the agreement would send a strong signal to investors from both countries about the commitments between the two countries and would encourage investments.
In addition the Federal Executive Council approved a bilateral agreement for the avoidance of double taxation in business which has been operating between Nigeria and Singapore.