Singapore Tax Agency Issues Advance Ruling on Treatment of Transfer of Fixed Assets as Capital Transaction

The Singaporean Inland Revenue Authority June 1 issued Advance Ruling No. 9/2022, clarifying the treatment of the transfer of fixed assets as a capital transaction. A Singaporean-registered limited liability company (LLC) was carrying on a trade in Singapore, before it was converted to an investment holding company. It held fixed assets, including a leasehold on a land and office building, which was held for over 10 years. The fixed assets were acquired or constructed for the purpose of its trade and sublet. It will be transferring the fixed assets to New Co pursuant to a restructuring within the corporate group. ...