17 April 2017
On 31 March 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 (5th 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 updates on the extension of the tax exemption scheme for qualifying income originating from qualifying offshore infrastructure project/asset which will expire on 31 December 2022, unless specifically revoked earlier. Accordingly, where the section 13(12) declaration form is submitted to IRAS after 31 December 2022, the infrastructure foreign income will not enjoy the tax exemption, unless the scheme is extended (para 6.7).
The previous edition was published on 6 January 2017.
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.