Foreign Income Tracking Examples: YA 2024–2026 and a Source-Table Error

Facts and column meanings

ABC Pte Ltd has a December year end. FY 2023 foreign interest was S$20,000 with S$2,000 allowable expenses; earlier interest was cumulatively S$8,000 with S$1,500 expenses because a year breakdown was unavailable. FY 2024 royalties were S$10,000 with S$4,500 expenses. No new foreign income arose in FY 2025. All amounts below are Singapore dollars. A–E track income; F–J track related expenses; K is C minus H. The source’s balance formulas use A or B and F or G as applicable to each earning-year row.

YA 2024: retain both interest years

Neither old nor FY 2023 interest had been received in Singapore or used in a receipt-triggering manner. Closing income was S$28,000 and expenses S$3,500; net Singapore receipt zero.

Income / earning FY	A opening income	B new income	E closing income	F opening expenses	G new expenses	J closing expenses
Interest / before 2023	8000	0	8000	1500	0	1500
Interest / 2023	0	20000	20000	0	2000	2000
Total	8000	20000	28000	1500	2000	3500

YA 2025: offshore dividends and interest remittance

The earlier S$8,000 was used to pay one-tier exempt dividends directly into shareholders’ offshore bank accounts. FY 2023 interest of S$20,000 was received in Singapore, matched with S$2,000 expenses for net S$18,000. Royalties stayed offshore. Explain the offshore dividend use and the basis for no Singapore receipt; indicate any liberalised-expense election.

Income / earning FY	A opening income	B new income	C Singapore receipt	D permanent offshore use	E closing income	F opening expenses	G new expenses	H expenses for C	I expenses for D	J closing expenses	K net receipt
Interest / before 2023	8000	0	0	8000	0	1500	0	0	1500	0	0
Interest / 2023	20000	0	20000	0	0	2000	0	2000	0	0	18000
Royalties / 2024	0	10000	0	0	10000	0	4500	0	0	4500	0
Total (row sum)	28000	10000	20000	8000	10000	3500	4500	2000	1500	4500	18000

Do not repeat the incorrect total

The official Schedule 2 column C total prints S$28,000, although its entries are zero, S$20,000 and zero. The S$8,000 belongs to offshore-use column D, not Singapore receipt. The table above therefore identifies C as the row sum S$20,000 rather than copying the inconsistent printed total. The original PDF remains linked for comparison.

YA 2026: partial use treated as receipt

S$5,000 of FY 2024 royalties was used in a manner considered receipt under section 10(25), with directly identified expenses S$2,250. Net receipt was S$2,750; S$5,000 income and S$2,250 expenses remained. Earlier interest rows were removed because they had already been remitted or permanently used in FY 2024.

Income / earning FY	A opening income	B new income	C Singapore receipt	D permanent offshore use	E closing income	F opening expenses	G new expenses	H expenses for C	I expenses for D	J closing expenses	K net receipt
Royalties / 2024	10000	0	5000	0	5000	4500	0	2250	0	2250	2750

Evidence follows the balance

Keep evidence that remaining income is held overseas without section 10(25) receipt and provide it on request. Also retain the evidence identifying expenses, tracing receipts and explaining offshore dividend use. These are tracking examples, not a ruling that every overseas dividend payment or use automatically avoids Singapore receipt.

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 ↗

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