Tax Alert 

KPMG's Tax Alert examines and discusses the recent tax developments in Singapore and the implications thereof.
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  • October 2014 - Issue 22 (PDF, 221KB) New
    Deduction for Statutory and Regulatory Expenses
    On 12 September 2014, the Inland Revenue Authority of Singapore published an e-Tax Guide relating to the "Deduction for Statutory and Regulatory Expenses". The e-Tax Guide provides some clarity to the proposed Section 14X of the Income Tax Act, as set out in the draft Income Tax (Amendment) Bill that was issued on 4 July 2014. In this issue, we highlight the salient parts of the e-Tax Guide.

  • September
  • September 2014 - Issue 21 (PDF, 157KB)
    Making the most of Australian rental property
    AUSTRALIA is one of the most popular destinations for Singapore investors looking to buy properties overseas.

    However, the tax implications associated with foreign investment in Australian rental properties - a residential property used for rental purposes - can be onerous, especially given the multiple Australian taxes that may apply.

  • September 2014 - Issue 20 (PDF, 166KB)
    BFC v Comptroller of Income Tax [2014] SGCA 39
    In this case, BFC (Appellant) appealed to the Court of Appeal against the decision of the High Court.

    The Appellant sought the confirmation of the Court of Appeal that discounts and redemption premiums relating to the issuance of certain bonds were tax-deductible.

    However, the Court of Appeal held that the discounts and redemption premiums were not "interest" under Section 14(1)(1) of the Income Tax Act, and were not tax-deductible.

  • September 2014 - Issue 19 (PDF, 340KB)
    Updated R&D Tax Incentive guidelines
    The R&D Tax incentive was introduced to encourage Singapore companies to undertake more R&D activities and improve their business capabilities and global competitiveness. It was intended to be a pervasive scheme to cover all industries. From the Years of Assessment 2013 to 2018, taxpayers who conduct eligible R&D activities can claim up to 300% enhanced tax deductions on the qualifying R&D expenditure under the Productivity & Innovation scheme.

    Following announcements by the Ministry of Finance earlier this year that it was reviewing the guidelines for the R&D Tax Incentive, the Inland Revenue Authority of Singapore has now issued the revised guidelines.

  • September 2014 - Issue 18 (PDF, 624KB)
    IRAS Releases Public Consultation Paper on Transfer Pricing Documentation The Inland Revenue Authority of Singapore (IRAS) released a public consultation paper on 1 September 2014, setting out additional guidance on transfer pricing documentation. The public is invited to provide commentary on IRAS’ viewpoints in the consultation paper by 24 September 2014.

  • July
  • July 2014 - Issue 17 (PDF, 288KB)
    BLP v Comptroller of Income Tax [2014] SGHC 127
    In this case before the High Court, the issue was whether monies raised by a management corporation from its members for the purpose of retrofitting and upgrading common property should be considered "revenue" or "capital".

    The High Court examined the purpose for which the monies were used and concluded that it was capital in nature.

  • July 2014 - Issue 16 (PDF, 182KB)
    Income Tax Treatment of Basel III Additional Tier 1 (AT 1) Instruments
    The Monetary Authority of Singapore has issued a circular entitled “Income Tax Treatment of Basel III Additional Tier 1 (AT 1) Instruments” on 30 May 2014. This circular explains the scope of the tax treatment of Basel III AT1 instruments issued by Singapore-incorporated banks. In this issue, we will examine the scope of the tax treatment in detail.

  • June