To understand how a DBA works, we must first learn what can lead to double taxation. Exemption of dividends from foreign sources, branch profits and income from services – Section 13(8) of the Singapore Income Tax Act A singapore-based company may benefit from an exemption for its dividends from foreign sources, profits from foreign branches and income from foreign services transferred to Singapore if the following conditions are met: A cancellation of double taxation conventions must eliminate this unfair penalty and promote cross-border trade. . . .