On or about 31 Mar 2021, the Inland Revenue Authority of Singapore (IRAS) has published the fourth edition of the IRAS e-Tax Guide on Income Tax Treatment of Foreign Exchange Gains or Losses for Businesses. It replaces the third edition published on 17 Aug 2020.
This e-Tax Guide provides details on the tax treatment of foreign exchange gains or losses for businesses (banks and businesses other than banks). It consolidates the two e-Tax guides issued previously on the income tax treatment of foreign exchange gains or losses.
- “Treatment of foreign exchange gains or losses for banks” published on 2 Nov 1993; and
- “Income Tax Treatment of Foreign Exchange Gains or Losses for Businesses” published on 28 Nov 2003.
In this fourth edition, the following revisions were made:
- Update the definition of “Translation foreign exchange differences” in Glossary under paragraph 3.6 of the guide; and
- Include Frequently Asked Questions (FAQs) in Annex C on the designated bank account treatment and the application of the de-minimis limit.
Source: IRAS, 2 April 2021