The UKSFTA entered into force in February 2021. The UKSFTA will accord companies the same key benefits that they have been receiving under the EUSFTA. The key benefits of the UKSFTA include the elimination of customs duties, liberal and flexible Rules of Origins for Singapore’s exports, improved market access to services sectors, enhanced opportunities in government procurement, reduction of technical and non-tariff barriers in key sectors, and the enhanced protection of intellectual property rights.
The Singapore-UK double tax agreement (DTA), first signed in 1997, provides relief from double taxation in the situation where income is subject to tax for both countries. The provisions of the DTA apply to persons who are residents of one or both of the Contracting States.
Please refer to IRAS for more information regarding the agreement between Singapore and United Kingdom for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.
The UK has announced that the UK Global Tariff will replace the EU’s Common External Tariff on 1 January 2021 and has introduced a website to facilitate the search of the UK Global Tariff rates that will apply to goods exporting to the UK from 1 January 2021.
On 10 Dec 2020, Singapore and the UK signed the UK-Singapore Free Trade Agreement (UKSFTA). The UK and Singapore have committed to maintain the same timeline for tariff reductions as compared to the EU-Singapore FTA (EUSFTA).
The UK and Singapore have committed to maintain the same timeline for tariff reductions as compared to the EUSFTA. Under the UKSFTA, Singapore and UK companies will enjoy the same benefits that they are receiving under the EUSFTA. These include tariff elimination for goods trade, increased access to their respective services and government procurement markets, as well reduction of non-tariff barriers. In addition, Singapore Asian food products such as Har Gow (prawn dumplings) and Sambal Ikan Bilis (spicy crispy anchovies) will continue to enter the UK tariff-free under flexible rules of origin, up to a combined quota of 350 tonnes annually.
For more information on the UKSFTA, including a step-by-step guide for companies to check if their products can enjoy tariff concessions, please visit www.enterprisesg.gov.sg/non-financial-assistance/for-singapore-companies/free-trade-agreements/ftas/singapore-ftas/uksfta.
In December 2021, Singapore and the UK jointly announced the substantial conclusion of the UK-Singapore Digital Economy Agreement (UKSDEA) that brings together binding disciplines on cornerstones of the digital economy, such as data, as well as cooperative elements in a wide range of emerging and innovative areas such as Artificial Intelligence, fintech, digital identities and legal technology. Signed on 25 February 2022, the UKSDEA has been ratified and entered into force on 14 June 2022.
The UKSDEA will bring about high-standard digital trade rules, and benefit people and businesses in both Singapore and the UK. It can also provide your business with a greater range of opportunities in the growing digital market of the UK. Under the UKSDEA, 3 Memoranda of Understanding (MOU) were signed to promote collaboration in the areas of Cyber Security, Digital Identities and Digital Trade. You can find more information at the following website https://www.mti.gov.sg/Trade/Digital-Economy-Agreements/UKSDEA.