The Inland Revenue Authority of Singapore on September 1 published two income tax advance rulings (10/2021, 11/2021) concluding that certain securities are debt securities under the Income Tax Act.
As a result, distributions payable on the securities should be regarded as interest income, the rulings state. Assuming other requirements are met, the debt securities will be eligible for tax concessions and exemptions available for qualifying debt securities. The issuers will be entitled to deduct the distributions as interest for tax purposes in certain circumstances.
Two separate rulings issued concurrently by the agency address whether an amount receivable from a related company constitutes a remittance or deemed remittance into Singapore (12/2021) and the tax treatment of an exchange fee paid pursuant to an exchange of notes (13/2021).
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