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Currency other than Singapore dollar to be used in certain circumstances

Income Tax Act 1947

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—(1) Where a person maintains the person’s financial accounts in respect of any trade, business, profession or vocation carried on by the person in a functional currency other than Singapore dollar in accordance with financial reporting standards in Singapore, the person who is required to furnish tax computations and particulars of income with a return of income made under section 62 or 71 must furnish such computations and particulars of income denominated in that functional currency in the manner prescribed under this section.(2) The amount of chargeable income (after deducting the amount not charged to tax under section 43(6) or (6C)) of any company for any year of assessment must be converted to an equivalent amount in Singapore dollar, and the amount of tax which has been deducted or is deductible from any interest under section 45 derived by the company must remain denominated in Singapore dollar.(3) The amount of statutory income from any trade, business, profession or vocation carried on by any individual for any basis period and the amount of donation made by the individual during any year must be converted to an equivalent amount in Singapore dollar, and any amount of allowances, losses or donations which remains unabsorbed at the end of any basis period or at the end of any year (as the case may be) must be carried forward to the next basis period or next year denominated in Singapore dollar.(4) In respect of any partnership, the income of a partner from the partnership and the partner’s share of donation made by the partnership for any year of assessment must be converted to an equivalent amount in Singapore dollar, and any amount of allowances, losses or donations which remains unabsorbed at the end of any basis period or at the end of any year (as the case may be) must be carried forward to the next basis period or next year denominated in Singapore dollar in the tax computation of each partner.(5) Despite anything in this section, a person who is required to furnish tax computations and particulars of income with a return of income made under section 62 or 71 to whom this section applies must declare any information required in any return of income in Singapore dollar.(6) Subject to subsection (7), the rate of exchange applicable for the purposes of converting any amount in Singapore dollar to an equivalent amount in a non‑Singapore dollar functional currency, or any amount in a non‑Singapore dollar functional currency to an equivalent amount in Singapore dollar (as the case may be) is —(a)the average rate of exchange, as made available by the Monetary Authority of Singapore, calculated on the basis of the rate of exchange at the end of each month for the accounting period that constitutes the basis period for the year of assessment; or(b)where no such average rate of exchange is made available by the Monetary Authority of Singapore, such rate of exchange as the Comptroller may determine.(7) Despite subsection (6), for the purposes of an election under section 24 or 25, where the buyer and seller or the transferee and transferor (as the case may be) of any property each uses a different functional currency, the rate of exchange applicable is the rate of exchange prevailing as at the date of sale or transfer (as the case may be) of the property.(8) Despite subsection (6), where a person has furnished a tax computation and particulars of income with a return of income in Singapore dollar, and is required under subsection (9) or has obtained the Comptroller’s approval under subsection (10) (as the case may be) to furnish a tax computation and particulars of income with a return of income in a non‑Singapore dollar functional currency for any year of assessment, such person must convert the amounts denominated in Singapore dollar into the equivalent amount in the functional currency in accordance with the regulations made under subsection (11).(9) This section has effect for accounting periods beginning on or after 1 January 2003.(10) This section also has effect for accounting periods beginning before 1 January 2003 of a person which had been approved by the Comptroller to furnish tax computations and particulars of income with a return of income made under section 62 or 71 denominated in a functional currency other than Singapore dollar for those accounting periods.(11) For the purposes of this section, the Minister may make regulations to provide for —(a)such transitional, supplementary and consequential matters as the Minister may consider necessary or expedient; and(b)generally giving effect to or for carrying out the purposes of this section.

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