BESTCHEAT1
CASUAL EXAMPLE
Net Profit as per P/L
Tax adjustments: Less: Non-taxable gains (Cr items included in P/L) e.g. loss on disposal Less: Tax-exempt income └ DIVIDENDS FROM SINGAPORE RESIDENT EXEMPT Less: Non-s10(1)(a) income taxable separately (Cr in P/L) Add: Non-deductible expenses e.g. depreciation, capex, ALL donations Add: Taxable gains not included in P/L e.g. FSI remitted Less: Deductible expenses not included in P/L Less: Further deductions (s14B – 100% more)
Adjusted Profit Before Tax Less: Special Deductions, (s14Q) Less: UCA, Capital Allowances (FIFO), IBA, LIA, BA = TWDV > SP Add: BC = SP > TWDV
S10(1)(a) income (net)
Add: Non-s10(1)(a) income e.g. dividends, interest income
Statutory Income (SI)
Less: Unabsorbed trade losses, Trade losses (FIFO)
Less: Approved donations to AIPC (250%)
Assessable Income (AI) or Chargeable Income before
Exempt Amount [b]
Less: Group Relief, Transfer under GR, Carry-back Relief
Less: NCTR Exemption (75% of $10,000 + 50% of next $290,000) *always last MAX: 152,500
Chargeable Income (CI)
Tax Payable @ 17%
Less: Foreign Tax Credit, e.g. s50A or DTR, Tax Sparing Relief
Tax Payable/Refund [a]
Less: Corporate Tax Rebate
(30%, restricted to $30,000)
No corporate tax rebate before YA12
Net Tax Payable
BADGES OF TRADE TAXABLE if satisfied
(1) Subject matter of realization:
(2) Length of period of ownership:
(3) Frequency of similar transactions:
(4) Supplementary work:
(5) Circumstances for realisation:
(6) Motive:
FOREIGN ENTERPRISES DOING BIZ IN SG
Permanent Establishment (PE) in SG TAXABLE in SG
Refer to TREATY ARTICLE 5
NR paying dividend FSI | R paying dividend SSI
Rent from immovable property depends on where property is
DEEMED SOURCED IN SINGAPORE S12(6) (7)
S12(6): any income derived from loans (INTEREST, GUARANTEE)
S12(7): Royalty (can be special software or special hardware), know-how (special information must be communicated to
Net Profit as per P/L
Tax adjustments: Less: Non-taxable gains (Cr items included in P/L) e.g. loss on disposal Less: Tax-exempt income └ DIVIDENDS FROM SINGAPORE RESIDENT EXEMPT Less: Non-s10(1)(a) income taxable separately (Cr in P/L) Add: Non-deductible expenses e.g. depreciation, capex, ALL donations Add: Taxable gains not included in P/L e.g. FSI remitted Less: Deductible expenses not included in P/L Less: Further deductions (s14B – 100% more)
Adjusted Profit Before Tax Less: Special Deductions, (s14Q) Less: UCA, Capital Allowances (FIFO), IBA, LIA, BA = TWDV > SP Add: BC = SP > TWDV
S10(1)(a) income (net)
Add: Non-s10(1)(a) income e.g. dividends, interest income
Statutory Income (SI)
Less: Unabsorbed trade losses, Trade losses (FIFO)
Less: Approved donations to AIPC (250%)
Assessable Income (AI) or Chargeable Income before
Exempt Amount [b]
Less: Group Relief, Transfer under GR, Carry-back Relief
Less: NCTR Exemption (75% of $10,000 + 50% of next $290,000) *always last MAX: 152,500
Chargeable Income (CI)
Tax Payable @ 17%
Less: Foreign Tax Credit, e.g. s50A or DTR, Tax Sparing Relief
Tax Payable/Refund [a]
Less: Corporate Tax Rebate
(30%, restricted to $30,000)
No corporate tax rebate before YA12
Net Tax Payable
BADGES OF TRADE TAXABLE if satisfied
(1) Subject matter of realization:
(2) Length of period of ownership:
(3) Frequency of similar transactions:
(4) Supplementary work:
(5) Circumstances for realisation:
(6) Motive:
FOREIGN ENTERPRISES DOING BIZ IN SG
Permanent Establishment (PE) in SG TAXABLE in SG
Refer to TREATY ARTICLE 5
NR paying dividend FSI | R paying dividend SSI
Rent from immovable property depends on where property is
DEEMED SOURCED IN SINGAPORE S12(6) (7)
S12(6): any income derived from loans (INTEREST, GUARANTEE)
S12(7): Royalty (can be special software or special hardware), know-how (special information must be communicated to