Tax Alert 

KPMG's Tax Alert examines and discusses the recent tax developments in Singapore and the implications thereof.
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  • July 2014 - Issue 16 (PDF, 182KB) New
    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
  • June 2014 - Issue 15 (PDF, 250KB) New
    Changes to the Tax Incentive Schemes for Trusts
    The Monetary Authority of Singapore has recently released further details on the tax changes concerning the Designated Unit Trust Scheme, as well as the introduction of new sunset clauses for the tax exemption schemes for trusts. These changes were announced in its circular FDD Cir 08/2014 titled "Changes to the Designated Unit Trust Scheme" dated 30 May 2014.

    The DUT scheme provides tax deferral benefits (whereby specified income derived by a DUT is taxed in the hands of the relevant investors only upon the distribution) to qualifying retail and non-retail unit trusts, subject to meeting conditions.

  • June 2014 - Issue 14 (PDF, 208KB)
    Extension and Enhancements to the Fund Management Tax Incentive Schemes
    In the Singapore Budget 2014, the Minister for Finance announced the extension and enhancements made to Singapore’s tax incentive schemes for qualifying funds. For this, the Monetary Authority of Singapore issued a circular no. FDD Cir 06/2014 on 30 May 2014 to provide further details on these changes. We will discuss the relevant changes and their implications in this issue.

  • June 2014 - Issue 13 (PDF, 299KB)
    New e-Tax Guide on Tax Exemption under Section 13(12)
    On 30 May 2014, IRAS issued a second edition of the e-Tax Guide on "Income Tax: Tax Exemption under Section 13(12) for Specified Scenarios, Real Estate Investment Trusts and Qualifying Offshore Infrastructure Project/Asset".

    Broadly, Section 13(12) of the Singapore Income Tax Act provides for income tax exemption on foreign-sourced income derived by Singapore companies, Singapore listed real estate investment trusts (S-REITs) and Singapore listed entities that invest in offshore infrastructure project or asset.

    This tax alert summarises the key changes introduced in the second edition of the e-Tax Guide.

  • May
  • May 2014 - Issue 12 (PDF, 254KB)
    Income Tax Treatment of Hybrid Instruments
    The Inland Revenue Authority of Singapore issued an e-Tax Guide entitled “Income Tax Treatment of Hybrid Instruments” on 19 May 2014. The Guide discusses the factors that the Comptroller of Income Tax would consider in determining whether, for income tax purposes, such instruments are debt or equity instruments.

    This Tax Alert provides a summary of the Guide, as well as key background and salient insights on the implications that could arise from the matters discussed in the Guide.

  • April