Revised E-tax Guide on Section 10(25) of the Income Tax Act


Dear Valued Clients and Readers

On 6 December 2011, the Inland Revenue Authority of Singapore has issued the revised E-tax Guide on Section 10(25) of the Income Tax Act.

For Singapore tax purposes, income tax is imposed on both Singapore-sourced income and foreign-sourced income received in Singapore under Section 10(1).  Section 10(25) provides certain guidance as to when foreign-sourced income is considered received in Singapore and hence is subject to income tax in Singapore.

  • any amount from any income derived from outside Singapore which is remitted to, transmitted or brought into Singapore;
  • any amount from any income derived from outside Singapore which is applied in or towards satisfaction of any debt incurred in respect of a trade or business carried on in Singapore;
  • any amount from any income derived from outside Singapore which is applied to purchase any movable property which is brought into Singapore.

The purpose of issuing the revised E-tax Guide by IRAS is to clarify that foreign income is considered received in Singapore when it is applied to discharge any indebtedness or liabilities incurred for the purpose of any trade or business carried on in Singapore.

The revised E-tax guide can be found here.

We trust that the above information is useful to you.

As always, we are pleased to assist you or your company in resolving any potential tax issues.  Please contact us at jack.wong@whm-consulting.com if you would like to discuss any of your/ your company’s concern on tax issues.

Best regards
Jack HM Wong
Founder and Lead Business & Tax Advisor
WHM Consulting Pte Ltd
E-mail: jack.wong@whm-consulting.com

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