25 February 2012
On 22 February 2012, IRAS issued the first edition of an e-Tax Guide on “Tax Exemption under section 13(12) for Specified Scenarios, Real Estate Investment Trusts and Qualifying Offshore Infrastructure Project/Asset”. This e-Tax Guide replaces the earlier guide entitled “Income Tax: Tax Exemption under section 13(12) for Specified Scenarios and Real Estate Investment Trusts”, first published on 31 May 2006.
Section 13(12) provides that the Minister may, by order, exempt from tax wholly or in part foreign-sourced income received by a person resident in Singapore. This e-tax guide provides details on various scenarios and conditions under which the tax exemption under section 13(12) of the Income Tax Act (“ITA”) will be granted to resident taxpayers. Basically, tax exemption, subject to conditions, can be granted under section 13(12) of the ITA on:
- certain foreign-sourced income received in Singapore by resident companies under specified scenarios
- certain foreign-sourced income received in Singapore by Real Estate Investment Trusts listed on SGX (“S-REITs”) or their wholly-owned Singapore resident subsidiary companies that meet qualifying conditions
- foreign-sourced interest income received in Singapore by approved listed resident entities or their approved wholly-owned Singapore resident subsidiary companies from qualifying offshore infrastructure project/asset
- foreign-sourced income received in Singapore by resident taxpayers on a case-by-case basis.
The full e-Tax Guide can be found here.
Source: This article was extracted from the Inland Revenue Authority of Singapore (IRAS) website.