Income Tax Treatment Arising from Adoption of FRS 116 Leases

The new leases standard FRS 116 came into effect on 1 January 2019. This new accounting standard seeks to achieve a more faithful representation of the entity’s assets and liabilities as lessees are now required to recognise right-of-use (ROU) assets and the corresponding lease liability in its balance sheets.  FRS 116 will be applied to all leases, other than low-value assets and short-term leases.
 
In tandem with the introduction of this new revenue standard, the Inland Revenue Authority of Singapore (IRAS) published the FRS 116 e-Tax Guide in October 2018 to provide guidance on tax treatment and potential tax issues that may arise as a result of the adoption of FRS 116.
 
Attend this topical workshop to gain a better appreciation of how the changes to the leases under FRS 116 will affect the tax reporting for your entity. Through the use of practical illustrations, this workshop aims to provide you with practical understanding of the income tax treatment and transitional tax implications of adopting FRS 116, and how you can navigate through some of the potential challenges that may arise when implementing FRS 116 for your entity.

• Broad overview of the key concepts of leases under FRS 116 from an accounting perspective.
• Understand general tax principles for leases from an income tax perspective.
• Understand the FRS 116 income tax treatment as stipulated by the IRAS in the newly published e-Tax Guide, and practical tips to consider to ease the challenges of tax reporting.
• Understand tax issues related to transitional adjustments in the initial Year of Assessment and the recommended income tax treatment in relation to such adjustments.
• Gain practical understanding of the various tax issues discussed through illustrative examples.