15 January 2017
On 6 January 2017, the Inland Revenue Authority of Singapore (IRAS) issued an e-Tax Guide, “Income tax: Tax exemption under section 13(12) for specified scenarios, real estate investment trusts and qualifying offshore infrastructure project/asset (4th Ed)”.
The e-Tax Guide explains the scenarios and conditions under which tax exemption under section 13(12) of the Income Tax Act (ITA) may be granted to resident taxpayers with effect from 31 May 2006.
Subject to conditions, tax exemption is, 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 the trustees of Real Estate Investment Trusts listed on SGX (S-REITs) or their wholly-owned Singapore resident subsidiary companies
- certain foreign-sourced income received in Singapore by listed resident entities or their 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.
This edition’s updates are as follows:
- Updates made to allow deduction on statutory expenses and administrative expenses incurred by the subsidiary (Paras 5.3(f) and 6.4(d) and sections 3(B) and 4(B) of the section 13(12) Declaration Form)
- Requirement amended such that the remitted income will be exempt from tax if it is derived at the time the property is beneficially owned by the trustee or subsidiary, or from the disposal of the property (para 5.6).
- Replacement of the word “company” with “entity” for “Particulars of holding/ultimate holding company of the recipient.” (Part C of section 13(12) declaration form)
The previous edition was published on 19 June 2015.
For full details, please refer to the e-Tax Guide on the IRAS website.
Source: This article was extracted from the Inland Revenue Authority of Singapore’s (IRAS) website. Visit http://www.iras.gov.sg/ for more information.