Singapore Tax Agency Updates Guidance on Claiming Foreign Tax Credits Against Corporate Income Tax

The Singaporean Inland Revenue Authority Sept. 30 updated guidance on claiming foreign tax credits (FTCs) against corporate income tax. The updated guidance includes: 1) information on FTCs provided under DTAs, and unilateral tax credits (UTCs) for foreign-sourced income received by Singaporean tax residents from jurisdictions without DTAs with Singapore; 2) the eligibility requirements for claiming FTCs; 3) the prohibition against FTCs for companies in a loss position, and the rules for companies with permanent establishments (PEs) overseas and companies deriving passive income from outside Singapore; 4) the calculation of the FTC as the lower of the actual foreign tax paid, ...