Is income a Singapore company earns overseas also taxed?

Generally, income arising outside Singapore is taxed when it is remitted to and received in Singapore. However, certain foreign income such as foreign dividends and foreign branch profits may be exempt if the requirements are met.

To be exempt, requirements set by IRAS must be met, such as whether tax was imposed in the country where the income arose. Whether income is Singapore income or foreign income is determined based on the transaction structure.

• For merchanting trade (triangular trade): income may be treated as Singapore income depending on where contracts are concluded, who carries out the operations and how payments are received, so the transaction flow must be reviewed case by case.

Tax treatment can differ depending on the company's revenue, shareholder structure and transactions, so please consult an accounting professional before applying it.

The Lee Kim Alliance accounting team provides accounting and tax consultations.

As of November 2026, source: IRAS