Purpose, years and records
From YA 2024 companies deriving foreign income must provide the specified movement information in tax computations. IRAS strongly encourages its standard template; add source jurisdictions or foreign taxes if useful, or retain an existing template containing every required item. Track each earning year separately until income is fully remitted or used outside section 10(25) in a way permanently preventing later remittance. Keep records for five years from the YA corresponding to accrual, use or receipt, as applicable. Missing records may lead to estimated income, disallowed expenses or penalties.
Columns 1–3: type, brought-forward and current income
Identify interest, dividends, royalties or branch profit, optionally in separate schedules. Opening unremitted income includes amounts before YA 2024. If a year-by-year pre-2024 breakdown is unavailable, a cumulative amount per income type is permitted; income from YA 2024 must be tracked by year. Record current-basis-period accruals, supported by invoices, receipts, contracts or audited accounts.
Column 4: receipt in Singapore
Section 10(25) includes money remitted, transmitted or brought into Singapore; income satisfying debt of a Singapore trade or business; and income buying movable property such as equipment or raw materials brought into Singapore. Include receipts qualifying for section 13(8) or 13(12) exemption. Keep bank and other receipt evidence.
Column 5: permanent offshore use
Only include uses not constituting Singapore receipt that permanently remove the possibility of later remittance. The source example is offshore income paying one-tier exempt dividends directly to shareholder bank accounts, subject to the conditions in IRAS guidance. Explain both the use and why it is not receipt and cannot be remitted later. Keep the supporting offshore-use records.
Column 6: carried-forward balance
Include unused unremitted income and income used in a way that might later be received in Singapore. Offshore reinvestment is the example: an administrative concession defers receipt taxation until investment disposal and bringing proceeds into Singapore. Do not treat reinvestment as permanent consumption. Retain evidence of offshore holding and reinvestment.
Columns 7–10: expenses, allocation and relief
Allowable Singapore expenses must be wholly and exclusively incurred to derive foreign income and not prohibited by the Act. State any election for liberalised expense treatment. Opening allowable expenses correspond to opening income (A); disclose expenses attributable to received income (C) and permanently used income (D), with the allocation basis. For net income taxable here and abroad, identify any section 13(8)/13(12) exemption or foreign tax credit claim and provide required computation details; relief is not automatic.
Five-year examples
For a December year end, the source requires evidence for foreign rental income accrued in 2024, income remitted in 2024, income used offshore for dividends in 2024, or income reinvested abroad in 2024 to remain until 31 December 2029. Each event’s supporting evidence must be kept, rather than retaining only the final balance.
Official source
This article independently explains the substantive contents of the official PDF, including the relevant conditions, procedures and annexes. The linked document remains the authoritative source for its original wording, and later changes should be checked separately.
Read the official PDF ↗