18 September 2017
The Inland Revenue Authority of Singapore (IRAS) has updated its website on “Taxable and Non-taxable Income” with the addition of new FAQs, clarifying when foreign-sourced offshore income is considered received in Singapore and subject to tax.
IRAS has outlined in one of its updated FAQs, that the transmission of foreign-sourced offshore income by a company from its offshore bank account to the Central Depository Pte Ltd (CDP)’s bank account in Singapore for the payment of one-tier tax exempt dividends to its scripless shareholders, does not constitute income received in Singapore from outside Singapore, and therefore is not taxable.
However, IRAS has highlighted that this non-taxation is subject to the condition that the one-tier tax exempt dividend is paid directly into the CDP’s bank’s account and does not involve any physical remittance, transmission or bringing of funds into Singapore.
The above update was made on 2 August 2017.
For further information, please refer to IRAS’ website.
Source: Inland Revenue Authority of Singapore