Foreign Tax Credit

Key requirements

A company must be a Singapore tax resident, have foreign tax paid or payable on the income, and have that income taxed in Singapore. Credit is normally the lower of foreign tax and attributable Singapore tax, computed source by source and country by country unless qualifying pooling applies. Treaty relief requires tax imposed consistently with the treaty; excess foreign tax outside the treaty should be reclaimed abroad. No credit is given where the company is in a loss position. For YA 2022 onward, a claim is due within four years after the relevant YA; earlier YAs have a two-year limit. A downward foreign tax adjustment making the credit excessive must be notified within the stated one-year period. Retain assessments and proof linking each tax amount to the income.