Singapore Tax Agency Updates e-Tax Guide on Income Tax Treatment of Foreign Exchange Gains, Losses

The Singaporean Inland Revenue Authority Aug. 17 updated the e-tax guide on the income tax treatment of foreign exchange gains or losses by businesses. The update clarifies: 1) a foreign exchange difference is considered as capital and non-taxable or deductible if a designated bank account doesn’t exceed 12 transactions a year, with a value under S$500,000 (US$364,833), effective assessment year 2020; 2) the transaction and value thresholds don’t apply to designated bank accounts maintained solely for revenue purposes; 3) the transaction and value thresholds don’t apply to accounts not maintained solely for revenue purposes, effective progressively after assessment year 2020; ...