Publication Type

Journal Article

Publication Date

1-2015

Abstract

Presently, there are two systems under which the FTC can be granted subject to satisfying certain conditions 1. FTC source-by-source and country-by-country system (SCS), and 2. FTC pooling system (PS) Under the SCS of computing the FTC, the excess of FTP over the STP on one type of FI (say dividend income) from a foreign country cannot be used to setoff against the excess of STP over the FTP on any other FI. Under the PS, any excess of Foreign Tax Paid (FTP) over the Singapore Tax Payable (STP) on one type of Foreign Income from a foreign country can be setoff against the excess of STP over the FTP on any other FI either from the same or different foreign country. As such it may appear that the PS is better than the SCS. But is it?

Keywords

Foreign Tax Credit Pooling System Double Taxation

Discipline

Accounting | Taxation

Research Areas

Financial Performance Analysis

Publication

IS Chartered Accountant

Issue

Jan

First Page

56

Last Page

59

ISSN

2010-1864

Publisher

Institute of Singapore Chartered Accountants

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

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