Non-trade Income

With effect from YA 2005, option available for non-trade income except Singapore franked dividends derived prior to 1 January 2008, to be assessed on accounting year basis instead of calendar year. With effect from YA 2009, all income will be allowed to be assessed to tax on the accounting year basis. In line with the above revised tax treatment, tax deduction for approved donations will also be allowed on an accounting year basis. This would allow for easy reconciliation of the non-trade income reported in the tax return with the entries in the books accounts, and avoid the need for re-computations on a calendar year basis.

For more details, Please click to download the circular.