Taxation

Question 11 (2 points) Which of the following foreign-sourced income derived by a Singapore resident company may NOT qualify for tax exemption? (1) Rental income derived from a property located in Country A was remitted into Singapore on 17 March 2021. The rental income has been subject to tax in Country A and the headline tax rate is 25%. (ii) Dividend income from Country B has been subject to withholding tax at 10% and corporate tax of 30%. The dividend was kept in the bank account in Country A until December 2021 when it was used to settle an amount owing to a supplier in Country A. (ii) Interest income from Country C has been subject to withholding tax at 8% and the headline tax rate is 15%. The interest was remitted to Singapore in July 2017 1) (i) and (ii) only. 2) (i) and (iii) only. 3) (ii) and (iii) only. 4) All of the options Question 12 (2 points) XYZ Pte Ltd, a company tax resident in Singapore, remitted the following foreign income back to Singapore in financial year ended 31 December 2021: (i) Net rental income of $69,700 from Country Z which has been subject to tax in Country Z at the headline tax rate of 15%. (ii) Net dividend income of $64,000 from Country Y which has been subject to tax in Country Y at the headline tax rate of 20%. (ii) Dividend income of $100,000 from Country K which does not impose tax on income. What is the gross taxable foreign income subject to Singapore tax in Year of Assessment 2022 1) $100,000 2) $182,000 3) $262.000 4) $82,000 Question 13 (2 points) Which of the following foreign income will be treated as remitted to Singapore in Year of Assessment 2022 for a company with a financial year ending on 30 April? 1) Foreign dividend income utilised on 26 May 2021 to settle liabilities arising from a Singapore-based business. 2) Foreign rental income used to settle the deposit payment for the purchase of an immovable property located in Country K on 15 January 2021. Overseas branch profits used to purchase shares in Black Hole Limited, a company tax resident and located in Country W on 1 April 2021. 4) Foreign interest income used to settle the hotel accommodation expenses incurred during the sales manager's business trip to Country L on 10 December 2020. Question 14 (2 points) XYZ Pte Ltd, a company tax resident in Singapore, remitted the following foreign income back to Singapore in financial year ended 31 December 2021: (i) Net rental income from Country Z which has been subject to tax in Country Zat the headline tax rate of 15%. (ii) Net dividend income from Country Y which has been subject to tax in Country Y at the headline tax rate of 20%. (ii) Dividend income from Country K which does not impose tax on income. Which of the foreign income remitted qualify for tax exemption? 1) All of the income remitted qualify for tax exemption, 2) Rental income from Country Z and dividend income from Country Y. 3) Dividend income from Country Y. 4) None of the income remitted qualify for tax exemption. Question 15 (2 points) Which of the following statement is TRUE? 1) Foreign dividends, branch profits and service income remitted by tax resident companies will qualify for tax exemption if the income remitted has suffered foreign tax in countries where the headline tax rate is at least 15%. 2) All foreign income remitted by tax resident companies will qualify for tax exemption. 3) All foreign income remitted by tax resident companies from countries with headline tax rate of at least 15% will qualify for tax exemption. 4) Foreign dividend, branch profits and service income remitted by any company operating in Singapore will qualify for tax exemption if the income remitted has suffered foreign tax in countries where the headline tax rate is at least 15%. Question 16 (2 points) XYZ Inc, a company tax resident in Country X, which does not have a tax treaty with Singapore, charged interest of S$15,000 on a loan provided to its Singapore subsidiary. Singapore withholding tax is to be borne by the Singapore subsidiary. The amount of tax to be withheld is: 1) $3,300 2) $1,500 3) $2,647 4) $2,250 Question 17 (2 points) Fullhouse Pte Ltd, a company tax resident in Singapore, pays monthly royalty of $10,000 for the use of Yummy Corp's trade name. Yummy Corp is tax resident in Country Y and has no operations in Singapore. The royalty is payable on the 1st day of each month. For the month of August, the royalty was paid by Fullhouse to Yummy on 25 August. When should the withholding tax for August royalty be accounted for with Comptroller of Income Tax? 1) 15 October 2) 31 August 3) 25 October 4) 30 November Naomi, who is not tax resident in Singapore, derived interest income from deposit placement with Citibank Singapore, an approved bank in Singapore. The interest earned by Naomi will be subject to Singapore tax at 1) 10% 2) 15% 3) 17% 4) 0% as it is tax exempt Question 19 (2 points) Noom Inc, a company with no operations in and not tax resident in Singapore. derived interest income from a loan given to City Pte Ltd, a company tax resident in Singapore. The interest earned by Noom Inc will be subject to Singapore taxat_ 1) 10% 2) 17% 3) 15% 4) 0% as it is tax exempt Question 20 (2 points) David, a tax resident of Singapore, rents an apartment from an individual who is not tax resident in Singapore. Which of the following statement is TRUE? 1) David needs to withhold tax of 10% on the rental payment made to the non- resident landlord. David needs to withhold tax of 15% on the rental payment made to the non- resident landlord. 3) David needs to withhold tax of 22% on the rental payment made to the non- resident landlord. David does not need to account for withholding tax on the rental payment. Appendix 1 Y/A 2017 onwards Rate 0 2 3.5 7 11.5 Chargeable Income (CI) On the first 20,000 On the next 10,000 On the first 30,000 On the next 10,000 On the first 40,000 On the next 40,000 On the first 80,000 On the next 40,000 On the first 120,000 On the next 40,000 On the first 160,000 On the next 40,000 On the first 200,000 On the next 40,000 On the first 240,000 On the next 40,000 On the first 280,000 On the next 40,000 On the first 320,000 In excess of 320,000 Gross Tax 0 200 200 350 550 2,800 3,350 4,600 7,950 6,000 13,950 7,200 21,150 7,600 28,750 7,800 36,550 8,000 44,550 15 18 19 19.5 20 22