Search results
Apr 28, 2021 · Payment of income taxes are considered capital transactions and thus, have to be included in ascertaining the de-minimis limit. Payment of GST and withholding taxes may be considered as part of revenue transactions. The de-minimis limit has to be applied on each bank account.
- engmin.lor@sg.gt.com
- Partner-Corporate Tax
Sep 26, 2023 · financial statements prepared in one currency (e.g. US$) to another currency (e.g. S$) for presentation purpose (“translation foreign exchange differences”).
May 23, 2024 · You check the rates online and you see a popular online currency platform offering an exchange rate of 1 Singapore Dollar for 3.47 Malaysian Ringgit. However, when you head down to any money changer on the same day, you may find that the rates they offer range between 3.44 and 3.46.
Oct 7, 2020 · With the recent update of the e-Tax Guide Income Tax Treatment of Foreign Exchange Gains or Losses for Businesses (Third Edition) on 17 August 2020, Inland Revenue Authority of Singapore (“IRAS”) introduced a new de-minimis limit for Designated Bank Account (“DBA”).
- Background: Administrative Burden of Having A Designated Bank Account
- Exception to The Designated Bank Account Treatment: de Minimis Limit
- Nonapplicability of The de Minimis Limit
- Comments
Businesses may maintain foreign currency bank accounts for the purposes of their business operations. Foreign exchange differences may arise when businesses revalue the year-end balances of these accounts in their functional currency. From a Singapore tax perspective, such foreign exchange differences generally are considered to be capital in natur...
Taking account of the feedback from businesses, the Comptroller of Income Tax (CIT) has reviewed the conditions for the designated bank account. With effect from YA 2020, the CIT is prepared to allow businesses to treat foreign exchange differences arising from the revaluation of the designated bank account as revenue in nature, even where that acc...
The de minimis limit does not apply to businesses that can maintain the designated bank account solely for revenue purposes. In addition, a business whose designated bank account was not maintained solely for revenue purposes prior to YA 2020 may not adopt the de minimis limit for the prior YAs regardless of whether the tax assessments for the rele...
The introduction of the de minimis limit from YA 2020 is welcome, since it helps to reduce administrative and legal costs for businesses. This is particularly so for small and medium-sized businesses where it is often administratively cumbersome and not cost effective to maintain separate bank accounts for revenue and capital transactions. The IRAS...
If you are entering or leaving Singapore carrying a total value of Physical Currency and Bearer Negotiable Instruments (CBNI) 1 exceeding S$20,000 (or its equivalent in a foreign currency), you are required by law to make a CBNI declaration (Form NP 727) by submitting a full and accurate report to the Singapore Police Force.
Mar 19, 2024 · You may refer to Taking Cash In and Out of Singapore page for more information on bringing in Physical Currency and Bearer Negotiable Instruments (CBNI)* of value exceeding S$20,000 (or its equivalent in a foreign currency).
