Amendments
The e-Tax Guide has been updated with the following changes:
- Amended Abbreviations to add the terms “FRS”, “FRS 117” and SFRS(I) 17 and to update the short title of the ITA based on the 2020 Revised Edition of the ITA.
- Inserted paragraph 2.4 to refer the following taxpayers to the IRAS e-Tax Guide as mentioned in that paragraph for guidance on the tax treatment for financial instruments of licensed insurers and examples where the CIT may consider allowing
an early adoption of the use of MAS Statutory Returns as the basis for preparing their tax computations:
- licensed insurers who have applied FRS 117 in preparing financial statements; and
- licensed insurers who have sought and obtained the CIT’s approval to early adopt the use of MAS Statutory Returns as the basis for preparing their tax computations.
- Amended paragraph 4.3 and the table at paragraph 6.5 to clarify the tax treatment for interest income from loans that is chargeable to tax under section 10(1)(d).
- Amended paragraphs 6.20, 6.21 and 6.23, footnotes 16 and 19, and Annex B to update the reference made to section 14I to section 14G as the provision has been renumbered in the 2020 Revised Edition of the ITA.
- Amended footnote 18 to refer to section 14G(6B) of the ITA for the period in which the tax deduction under section 14G is allowed.
- Amended paragraph 6.34 for clarity.
- Inserted paragraph 7.4 to refer an insurer who has applied FRS 117 for accounting purpose to the IRAS e-Tax Guide as mentioned in paragraph 2.4 for guidance on determining the values of assets to be used in the TAM for computing interest adjustment.
- Amended paragraph 10.2(a) and footnote 48 to reflect the extended date for the temporary exemption from applying FRS 109 as announced on 27 Nov 2020.
- Inserted paragraph 10.6 to inform about the disapplication of pre-FRS 39 tax treatment, FRS 39 tax treatment and FRS 109 tax treatment to a licensed insurer, starting from the YA of the basis period in which FRS 117 is first applied for accounting
purpose or such earlier YA as may be approved by CIT, and to refer an affected licensed insurer to the IRAS e-Tax Guide as mentioned in paragraph 2.4 for guidance on the tax treatment for financial instruments of the affected licensed insurers.
- Amended footnotes 4, 11 and 47 to update the cross-references made to the relevant accounting standards due to the incorporation of the amendments contained in Appendix C of FRS 109 (issued in 2014) into the relevant accounting standards
in the 2018 volume.
- Amended footnotes 33 and 34 to indicate the volume of FRS 39 which contains the information.
