Companies Receiving Foreign Income

Key Requirements

Foreign-source income is generally taxable when received in Singapore, whereas income arising from a Singapore business can be taxable when accrued. Singapore tax residents may use treaty benefits, specified foreign-income exemptions or foreign tax credits where the respective conditions are satisfied. These are distinct reliefs, not a universal exemption for all overseas receipts. A treaty partner may require a Singapore COR or a certified reclaim form. Conversely, a foreign resident seeking Singapore treaty relief needs residence evidence certified by its own tax authority. For dividends, branch profits and service income, examine the detailed exemption requirements; where exemption does not apply, a credit may alleviate double taxation on the same income. Maintain foreign tax and remittance evidence for the claimed route.