The Inland Revenue Authority of Singapore (IRAS) has launched a dedicated online Foreign Currency Conversion Calculator to assist taxpayers and practitioners in determining exchange rates for income tax filing purposes.
Key Features of the Tool:
- Data Source & Methodology: The calculator utilizes monthly exchange rate data provided by the Monetary Authority of Singapore (MAS). It computes and returns the average of the month-end exchange rates applicable to specific financial periods.
- Current Coverage: The tool currently supports financial years ending between 2020 and 2024. Users can search for the relevant average rate based on their financial year end date.
- Update Schedule: IRAS will update the calculator annually in January or February, incorporating the preceding calendar year’s MAS exchange rate data once available.
- Intended Use: This resource is designed to simplify the process of converting foreign income, expenses, or assets into Singapore Dollars (SGD) for accurate income tax computation and reporting.
Important Consideration for Users:
IRAS highlights a crucial operational note: Taxpayers whose basis periods exceed 12 months must first identify the appropriate 12-month (or shorter) basis periods before utilizing the search function within the calculator. This step ensures accurate rate application for non-standard accounting periods.
Availability:
The Foreign Currency Conversion Calculator is now accessible on the official IRAS website under the Exchange Rates section.
Source: IRAS, 28 February 2025.