Singapore Tax Agency Issues Advance Ruling on Taxation in Business Transfers

The Singaporean Inland Revenue Authority Sept. 1 issued Advance Ruling Summary No. 19/2025, clarifying taxation in business transfers. The taxpayer, a branch of a Singaporean company, transferred business segments to two branches for subsequent transfer to its parent and another company. The taxpayer would be deregistered after the restructuring. The taxpayer sought clarification on corporate income tax implications. Upon review, the Tax Agency found that: 1) the transfer to the two companies would be a capital transaction; 2) the value of inventories transferred at net book value would be viewed as consideration received by the taxpayer; 3) gains from receivables ...