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Claiming Foreign Tax Credit Reliefs

Updated: Mar 6

Claiming Foreign Tax Credit Reliefs

In Singapore, individuals generally do not need to claim foreign tax credit (FTC) when they have earned income overseas. This is because most foreign-sourced income remitted to Singapore is exempt from Singapore income tax. This exemption applies as long as the income arises from sources outside Singapore and is brought into Singapore in its original form (e.g., not converted to another currency).

However, companies registered as tax residents in Singapore can claim FTC to avoid double taxation on foreign income. This means they can receive credit for the taxes they paid on that income in another country, reducing their overall tax liability in Singapore.

Here's a summary of claiming foreign tax credit reliefs in Singapore:

Who can claim:

  • Companies registered as tax residents in Singapore

Conditions for claiming:

  • The company must be a tax resident of Singapore for the relevant year.

  • The same income must have been taxed in the foreign country.

  • The income must be subject to taxation in Singapore.

How to claim:

  • Claim the FTC when filing the Corporate Income Tax Return (Form C).

  • Supporting documents are not required to be attached to the form but should be kept for potential future requests from IRAS.

For more information on claiming foreign tax credit in Singapore, you can refer to the official website of the Inland Revenue Authority of Singapore (IRAS)

It is important to note that this information is for general informational purposes only and should not be construed as professional tax advice. If you have specific questions about your situation, you should consult with a qualified tax professional.

How Bestar can Help

Bestar can assist companies in the foreign tax credit reliefs claim process by:

  • Gathering and reviewing necessary documentation, such as tax invoices and foreign tax receipts.

  • Preparing and filing the Corporate Income Tax Return (Form C) with the claim for FTC.

  • Providing guidance and support throughout the process, including communication with IRAS if necessary.

  • Staying up-to-date on the latest tax regulations and ensuring compliance.

By providing these services, Bestar can help companies save time and ensure that their claims for foreign tax credit reliefs are accurate and complete.

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