The tax credit is generally only available in the country of residence if the income has been taxed in the country of origin. Tax savings is a particular form of credit by which the country of residence agrees to grant tax that would have been paid in the country of origin, but which has not been “spared” by the country`s specific laws to promote economic development. This provision is usually found in the DBA, with a developing country, which offers tax incentives to attract foreign investment from a developed country that invests capital. The person who is in Singapore in the year prior to the assessment exercise is considered a person, with the exception of temporary, reasonable and non-absent absences, to the extent that this is appropriate and not inconsistent with that person`s right to reside in Singapore, and a person who is physically resident or employed (except as a director of a business) in Singapore the year before the previous fiscal year. year of evaluation. If you are subject to the Singapore tax treaty with Australia, the following types of income are taxable: In accordance with the relevant provisions of the current Agreement Australia Article 18, paragraph 2, of the existing agreement and tax determination The provisions of the DBA apply to persons residing in one or both contracting states. For more information on the Singapore-Australia agreement to avoid double taxation and prevent income tax evasion, see IRAS. Read more The double taxation exemption is enforced either by the country`s national tax laws or by the tax treaty. The methods available in Singapore are: agreement between the two countries. An initial cycle of DBA reduces the double taxation of income collected in one jurisdiction by a resident of another resident. The Singapore-Australia Double Taxation Convention (DBA) provides for an exemption from double taxation in the situation in which income is taxed for both countries.