To pool or not to pool

• Main Authors: KHOO, Teng Aun, TAN, Kai Guan
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2013
• Subjects: Accounting
• Online Access: https://ink.library.smu.edu.sg/soa_research/1738; https://ink.library.smu.edu.sg/context/soa_research/article/2765/viewcontent/To_Pool_or_Not_to_pool.pdf
• Institution: Singapore Management University

Under the Singapore’s modified territorial tax system, the foreign sourced income (FSI) received or deemed received in Singapore is subject to tax unless otherwise exempted. To avoid having the same income from being taxed twice, foreign tax credits (FTC) are granted to resident taxpayers for the foreign tax paid (FTP) in the country of source against the Singapore tax payable on the same income. Presently, we have two systems under which FTC can be granted, subject to satisfying certain conditions, namely the existing foreign tax credit system and the new FTC pooling system.