Statute Details
- Title: Income Tax (Singapore — Albania) (Avoidance of Double Taxation Agreement) Order 2011
- Act Code: ITA1947-S409-2011
- Type: Subsidiary Legislation (SL)
- Legislative Instrument No.: S 409/2011
- Enacting Date: Made on 1 July 2011
- Commencement: Not stated in the extract (practitioners should confirm in the full instrument)
- Authorising Act: Income Tax Act (Chapter 134)
- Key Authorising Provisions: Section 49 and section 105C of the Income Tax Act
- International Instruments: Agreement dated 23 November 2010; Protocol dated 23 November 2010
- Schedule: “Arrangements specified in the Schedule” (the operative treaty text/terms)
- Status: Current version as at 27 March 2026 (per the platform status note)
What Is This Legislation About?
The Income Tax (Singapore — Albania) (Avoidance of Double Taxation Agreement) Order 2011 is a Singapore subsidiary legal instrument that gives domestic effect to a tax treaty arrangement between Singapore and Albania. In practical terms, it ensures that the treaty’s rules for allocating taxing rights between the two countries apply to Singapore income tax, so that taxpayers are not taxed twice on the same income.
Singapore’s Income Tax Act provides the legal mechanism for this. Where the Minister for Finance declares that arrangements have been made with a foreign government to relieve double taxation, those arrangements take effect in Singapore notwithstanding anything in other written law. This Order is one such declaration, specifically for the Singapore–Albania avoidance of double taxation arrangement.
The Order is also tied to Singapore’s “Part XXA” framework for avoidance of double taxation arrangements. It declares the treaty arrangement (as modified by a Protocol) to be a “prescribed arrangement” for the purposes of Part XXA. For practitioners, this matters because Part XXA is the domestic legislative architecture that governs how treaty relief is implemented, including the procedural and interpretive consequences of treaty application.
What Are the Key Provisions?
1. Declaration that the treaty arrangements have been made
The operative declaration begins with the Minister for Finance specifying that the arrangements set out in the Schedule have been made with the Council of Ministers of the Republic of Albania. This is the legal bridge between the international agreement and Singapore domestic law: the Order does not merely “recognise” the treaty; it declares that the arrangements specified in the Schedule have been made.
2. Treaty effect “notwithstanding anything in any written law”
A central feature of the Order is the declaration that it is “expedient” for the arrangements to have effect notwithstanding anything in any written law. This is a strong legislative formulation. It signals that, where there is a conflict between the treaty arrangements (as given effect by the Order) and other domestic tax rules, the treaty arrangements prevail for the relevant subject matter covered by the treaty.
3. Prescribed arrangement for Part XXA purposes
The Order further declares that the arrangements—modified by the Protocol—are a “prescribed arrangement” for the purposes of Part XXA of the Income Tax Act. For lawyers advising on cross-border tax matters, this is significant because it anchors the treaty within Singapore’s statutory treaty-relief regime. In practice, this can affect how treaty benefits are claimed and how treaty provisions are interpreted and applied in Singapore.
4. Incorporation of the Agreement and Protocol (and modification)
The preamble records that the Agreement was dated 23 November 2010, and that a Protocol dated 23 November 2010 modified the arrangements as prescribed. The Order therefore contemplates a two-step international instrument structure: the base treaty and a subsequent protocol. The Schedule is the key domestic vehicle through which the modified arrangements are set out for Singapore’s application. Practitioners should ensure that treaty analysis is based on the modified text (i.e., the Protocol-updated version), not only the original agreement.
5. Procedural and formal aspects
The Order is “made” by the Minister for Finance (signed by Peter Ong, Permanent Secretary, Ministry of Finance, Singapore). It also includes formal references to the legislative record (e.g., MF(R) R32.002.2887 Vol. 1; AG/LLRD/SL/134/2010/7 Vol. 1). While these are not substantive tax rules, they are useful for document traceability and for confirming the instrument’s legislative lineage.
How Is This Legislation Structured?
This Order is structured in a relatively compact form typical of Singapore tax treaty orders. The instrument contains:
(a) A preamble setting out the statutory “whereas” conditions under sections 49 and 105C of the Income Tax Act, and describing the international Agreement and Protocol.
(b) Operative declarations (the “NOW, THEREFORE” clauses) that: (i) declare the arrangements specified in the Schedule have been made with Albania; (ii) declare it is expedient for those arrangements to have effect notwithstanding other written law; and (iii) declare the arrangements (as modified by the Protocol) to be a prescribed arrangement for Part XXA.
(c) The Schedule which contains the actual treaty arrangements (the operative text). Although the extract provided does not reproduce the Schedule contents, it is the Schedule that practitioners will rely on for the substantive treaty rules—such as allocation of taxing rights, treaty definitions, and relief mechanisms.
Who Does This Legislation Apply To?
The Order applies to taxpayers and transactions within Singapore’s taxing jurisdiction where the Singapore–Albania avoidance of double taxation arrangement is relevant. In general, this includes Singapore-resident persons and persons earning income from Albania (and vice versa), depending on how the treaty defines “resident” and the scope of covered taxes.
Because the Order is a statutory declaration that the treaty arrangements have effect for taxes under the Income Tax Act, it is not limited to a particular class of taxpayer (e.g., only companies or only individuals). Instead, it applies to any person whose tax position is affected by the treaty’s allocation rules—such as cross-border dividends, interest, royalties, services/“business profits,” employment income, and other categories typically addressed in double tax agreements.
Practitioners should also consider that treaty relief is often subject to conditions and procedural requirements under Part XXA and related administrative rules (for example, documentation and claim processes). The Order itself is the enabling instrument; the operational “how to claim” steps may be found in the Income Tax Act and administrative guidance rather than in the Order’s short text.
Why Is This Legislation Important?
This Order is important because it determines whether and how Singapore will apply treaty relief in relation to Albania. Without such an order, the treaty would not automatically have domestic effect in Singapore. By declaring the treaty arrangements to have effect notwithstanding other written law and by designating them as a prescribed arrangement under Part XXA, the Order ensures that treaty provisions can override inconsistent domestic tax outcomes for covered matters.
For legal practitioners, the practical impact is most visible in cross-border tax planning and dispute avoidance. For example, treaty rules commonly reduce withholding tax rates on outbound payments (such as dividends, interest, and royalties) or provide exemptions/limitations. They also influence how income is characterised and where it may be taxed—particularly for business profits (e.g., whether a permanent establishment exists) and for services performed across borders.
In addition, the Protocol modification underscores a key diligence point: treaty texts can evolve. Lawyers advising clients on treaty benefits must ensure they are applying the correct version of the treaty as modified by the Protocol. The Order expressly incorporates the modified arrangements, which supports reliance on the updated treaty text when advising on withholding tax treatment, treaty claims, and compliance positions.
Finally, the “notwithstanding anything in any written law” formulation is a litigation-relevant drafting feature. If a domestic tax provision conflicts with a treaty allocation rule, the statutory declaration strengthens the taxpayer’s argument that the treaty should prevail for the relevant income and tax categories covered by the treaty arrangements.
Related Legislation
- Income Tax Act (Chapter 134) — particularly sections 49 and 105C (as referenced in the Order), and Part XXA (avoidance of double taxation arrangements framework)
- Income Tax Act — Timeline (for confirming the relevant version of the Act and any amendments affecting Part XXA implementation)
- Singapore–Albania Agreement dated 23 November 2010 (base treaty arrangements)
- Protocol dated 23 November 2010 (modifying the treaty arrangements as prescribed)
Source Documents
This article provides an overview of the Income Tax (Singapore — Albania) (Avoidance of Double Taxation Agreement) Order 2011 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.