Given the current bleak economic conditions and to help ease the credit tightness by enabling Singapore resident companies to repatriate funds from their overseas investments and operations to meet business financing needs in Singapore without attracting further income tax, the Minister for Finance has proposed a one-year tax exemption on the remittance of all foreign sourced income by resident companies and resident partners of partnerships in Singapore.
The one-year tax exemption covers the remittance of all foreign sourced income earned or accrued outside Singapore on or before 21 January 2009 that is remitted to Singapore during 22 January 2009 to 21 January 2010 (both dates inclusive). Accordingly, the conditions required to be satisfied for the foreign sourced income to be exempt from tax when remitted will be lifted during this one-year amnesty period.
Singapore companies that have foreign sourced income earned or accrued on or before 21 January 2009 but maintained in offshore accounts in order not to attract income tax in Singapore would now be able to remit their foreign income free of Singapore tax during this one-year amnesty period.
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