Partnership Disclosure for Foreign Asset Disposal Gains

by | Feb 13, 2025 | Accounting, Income Tax, Tech News

The Inland Revenue Authority of Singapore (IRAS) has issued a directive requiring specific disclosures from partnerships regarding gains derived from the disposal of foreign assets. The announcement targets gains arising in the basis period for the Year of Assessment (YA) 2025.

Key Disclosure Requirements:

Partnerships that received gains from the disposal of foreign assets during the basis period for YA 2025 (typically corresponding to the financial year ending in 2024) must have their Precedent Partner submit the following information electronically via a designated IRAS online form by 18 April 2025:

  1. Total Gains: The full amount of gains realized from the sale of foreign assets disposed of within the YA 2025 basis period.
  2. Remitted Gains: The specific portion of those foreign-sourced disposal gains that were remitted to Singapore during the same YA 2025 basis period.
  3. Exclusion Status: Confirmation of whether the partnership met the exclusions outlined under Section 10L(8) of the Income Tax Act during the basis period when the assets were disposed of. (This section pertains to exemptions from tax on specific foreign-sourced income remitted to Singapore).

Target Audience & Deadline:

This requirrement applies to all Singapore-based partnerships that have generated gains from selling foreign assets within the relevant period. The Precedent Partner, identified as the partner responsible for the partnership’s tax affairs with IRAS, bears the responsibility for ensuring accurate and timely submission by the 18 April 2025 deadline.

Purpose:

The requirement aligns with IRAS’s ongoing efforts to ensure accurate reporting and compliance concerning foreign-sourced income, particularly gains from asset disposals, and the application of relevant tax exemptions under Singaporean law.

Precedent Partners of affected partnerships are urged to compile the necessary information and utilize the specified IRAS online portal well before the April 18th deadline to fulfill this new declaration obligation.

Source: IRAS, 11 February 2025.