Beruflich Dokumente
Kultur Dokumente
Jurisdiction
Resident
Taxed
Non-resident
Taxed
Not taxed
Not taxed
Resident
Taxed
Non-resident
Taxed
Taxed
Not taxed
Base
Allocation
Most income tax system assess income and collect tax on an annual basis
Tax year may be defined differently in different states
Person
Individuals, partnerships, companies, trusts, etc. differ in their legal and economics
characteristics
*Fundamental issue Identity of person to be taxed and timing of tax imposition
Cross-Border Linkages
Double taxation
Ta
Foreign
income
Ta
Malaysia
Singapore
Company
Double taxation is avoided when either the state of source of income or the state of residence of
the person provide relief from double taxation
If there is a tax treaty between the 2 states, tax relief will be given according to the tax treaty
Provision in tax treaty prevails over the provision in the countrys tax laws
Tax administration
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Section 10(1) Charging Section
Income tax shall, subject to the provisions of this Act, be payable at the rate or rates specified hereinafter
for each year of assessment upon the income of any person accruing in or derived from Singapore or
received in Singapore from outside Singapore in respect of
(a) gains or profits from any trade, business, profession or vocation, for whatever period of time such
trade, business, profession or vocation may have been carried on or exercised;
(b) gains or profits from any employment;
(c) [deleted]
(d) dividends, interest or discounts;
(e) any pension, charge or annuity;
(f) rents, royalties, premiums and any other profits arising from property; and
(g) any gains or profits of an income nature not falling within any of the preceding paragraphs.
Jurisdiction
Income accruing in or derived in Singapore
o Refers to Singapore-sourced income (SSI)
o Taxed on accrual basis
Income received in Singapore from outside Singapore
o Refers to foreign-sourced income received in Singapore (FSI)
o Taxed on receipt basis Taxable only upon receipt into SG
*Exemption of tax for FSI received in SG *refer to Sem3*:
For individuals S13(7A)
by a resident individual on/after 1.1.2004 (except through a partnership); or
by a non-resident individual
*partnership outside scope of AC2301
For companies S13(8) to (11)
Certain FSI received in SG are tax-exempt for resident companies, subject to certain
conditions
For non-resident company that does not carry on a business in SG Does not have a
source of trade or business in SG
Base
What is to be taxed? Income (excludes capital gains)
Capital gains are not taxed in Singapore
*Income Receipts vs Capital Receipts (PMA Test)
Income: Receipt obtained from the sale (including compensation received for the loss,
destruction or giving up) of an asset or advantage
that does not form part of the profit-making apparatus
Allocation
Basis of assessment (Tax Year) Year of Assessment (YA) and its related basis period
o YA 1 Jan to 31 Dec every year i.e. YA 2016: 1.1.2016 to 31.12.2016
o Basis period Period you earn the income
o 2 bases of assessment
Preceding Calendar Year (PCY) YA 2016 BP: 1.1.2015 to 31.12.2015
Preceding Accounting Year (PAY) YA 2016 BP: 1.4.2014 to 31.3.2015 (assume 31 mar acc
yr end)
o Companies adopt PAY basis for all income (trade + non-trade)
o Individuals adopt
PAY basis for trade income
PAY basis for non-trade income derived from his business
PCY basis for non-trade income derived from his personal asset
Timing of tax exposure
o SSI Taxable in the BP when it accrues to or is derived by the person
When there is legal entitlement to receive the income
When obligations to earn the income are fulfilled or performed
o FSI Taxable in the BP when it is received or deemed received in Singapore
Deemed received Deemed remittance under S10(25)
Person
Tax Rate