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Abstract
One of the most significant developments in Singapore income taxation recently has been the enactment of Section 10(13) of the Income Tax Act. This provision seeks to clarify the charge to tax of foreign-sourced income received in Singapore. Inland Revenue Authority of Singapore issued Interpretation and Practice Note No. 20/95, setting forth a number of administrative measures and concessions which it would adopt in applying the provisions of Section 10(13). Clarifications include: 1. Section 10(13) applies only to foreign-sourced income of a Singapore resident individual or a Singapore-based entity, 2. individuals migrating to Singapore will not be taxed on remittance of foreign income earned prior to their relocation to Singapore, and 3. in determining the amount of foreign income derived overseas, losses incurred overseas on revenue account may be deducted.