{"id":871,"date":"2018-11-20T10:01:51","date_gmt":"2018-11-20T02:01:51","guid":{"rendered":"http:\/\/ehluar.com\/main\/?p=871"},"modified":"2019-04-08T07:51:53","modified_gmt":"2019-04-07T23:51:53","slug":"iras-revises-e-tax-guide-on-the-tax-treatment-on-adoption-of-frs-115","status":"publish","type":"post","link":"http:\/\/ehluar.com\/main\/2018\/11\/20\/iras-revises-e-tax-guide-on-the-tax-treatment-on-adoption-of-frs-115\/","title":{"rendered":"IRAS revises e-Tax Guide: Tax Treatment Arising from Adoption of FRS 115 or SFRS(I) 15"},"content":{"rendered":"<p><span style=\"color: #000000;\">On 16 November 2018, the Inland Revenue Authority of Singapore (IRAS) has updated the Second Edition of the e-Tax guide on Tax Treatment Arising from Adoption of FRS 115 or SFRS(I) 15 &#8211; Revenue from Contracts with Customers that replaces the First edition published on 12 January 2018.<\/span><\/p>\n<p><span style=\"color: #000000;\">The adoption of FRS 115 will affect the way entities recognise their revenue and hence have certain income tax implications. In this connection, the Inland Revenue Authority of Singapore (IRAS) had previously issued a public consultation paper in October 2015 to provide guidance on their position regarding such income tax implications, and on 12 January 2018, the First edition of e-Tax guide includes guidance on the tax treatment arising from the adoption of FRS 115 that incorporates the feedback given by the public that was accepted by IRAS.<\/span><\/p>\n<p><span style=\"color: #000000;\">A new section 34I of the Income Tax Act has also legislated in October 2017 that sets out the tax treatment of transitional adjustments arising from the adoption of FRS 115. It provides for the tax treatment of the transitional gains or losses in the year of assessment (YA) relating to the year in which FRS 115 is first adopted (initial YA) based on the tax rates applicable to the entity for the initial YA.<\/span><\/p>\n<p class=\"hP\"><span style=\"color: #000000;\">The updates and amendments are as follows:<\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">Updated references to FRS 115 in the e-Tax guide (including the title) to also include references to SFRS(I) 15, to clarify that the tax treatment for entities adopting the FRS 115 will also apply to those adopting SFRS(I) 15 for accounting purposes<\/span><\/li>\n<li><span style=\"color: #000000;\">Updated Annex 2:<\/span>\n<ul>\n<li><span style=\"color: #000000;\">Updated Examples 3 and 4 to show how \u201cD\u201d and \u201cE\u201d in Section 34I of the ITA are computed (as also shown in the new Example 5)<\/span><\/li>\n<li><span style=\"color: #000000;\">Added Example 5 to show the tax treatment for transitional adjustments for an entity with nil chargeable income arising from losses<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p class=\"hP\"><span style=\"color: #000000;\">Section 34I of the Income Tax Act (ITA) and this e-Tax guide apply if one prepares or maintains financial accounts for any basis period for a year of assessment in accordance with FRS 115, or SFRS(I) 15 for the first time.<\/span><\/p>\n<p class=\"hP\"><span style=\"color: #000000;\">Source: <i>IRAS website<\/i>, 20 November 2018<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>On 16 November 2018, the Inland Revenue Authority of Singapore (IRAS) has updated the Second Edition of the e-Tax guide on Tax Treatment Arising from Adoption of FRS 115 or SFRS(I) 15 &#8211; Revenue from Contracts with Customers that replaces the First edition published on 12 January 2018. The adoption of FRS 115 will affect [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7,8,6],"tags":[],"class_list":["post-871","post","type-post","status-publish","format-standard","hentry","category-accounting","category-incometax","category-techupdates"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/posts\/871","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/comments?post=871"}],"version-history":[{"count":3,"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/posts\/871\/revisions"}],"predecessor-version":[{"id":985,"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/posts\/871\/revisions\/985"}],"wp:attachment":[{"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/media?parent=871"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/categories?post=871"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/tags?post=871"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}