Guide to Intepretation and Practice of Section 10(25) – 3rd Edition released

8 December 2011

IRAS has on 5 December, released an updated edition of the e-Tax Guide, ‘Section 10(25) of the Singapore Income Tax Act – Interpretation and Practice (3rd Edition).

Section 10(25) seeks to clarify that the following amounts shall be income received in Singapore from outside Singapore whether or not the source from which the income is derived has ceased:

  • any  amount  from  any  income  derived  from  outside  Singapore  which  is remitted to, transmitted or brought into Singapore [i.e. section 10(25)(a)]
  • 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 [i.e. section 10(25)(b)], and
  • any  amount  from  any  income  derived  from  outside  Singapore  which  is applied to purchase any movable property which is brought into Singapore [i.e. section 10(25)(c)].

This revision amends paragraph 7(c) of the Guide to clarify that foreign income is considered remitted to Singapore when it is applied to discharge any indebtedness or liabilities incurred for the  purpose of any trade or business carried on in Singapore.

More details on administrative practice and interpretation of section 10(25) which IRAS will adopt when administering the provisions can be found here.

Source: This article was extracted from the Inland Revenue Authority of Singapore (IRAS) website. Visit for more information.