Taxation of Foreign Income and Remittance Rules

Singapore adopts a semi-territorial basis of taxation, which means income tax in Singapore is levied on income of any person accruing in or derived from Singapore or received (including deemed received) in Singapore from outside Singapore. Tax exemptions or tax reliefs may be applicable for certain foreign sourced income received or deemed received into Singapore. Businesses should be aware of the remittance rules and the tax exemptions available so as to properly track such foreign income and apply the appropriate tax treatment thereon in the income tax returns.

This short workshop aims to explain the deemed receipt concept in Singapore, and includes case studies to illustrate common scenarios under which foreign income are deemed received in Singapore. Tax exemptions available to foreign income in Singapore will also be covered in brief.

• Deemed receipt rule in Singapore Income Tax Act; 

• Methods of tracking foreign income; 

• Introduction to tax exemptions available for foreign income; and 

• Case studies and Q&A