On 8 December 2023, the Inland Revenue Authority of Singapore (IRAS) released an updated e-tax guide on the tax treatment of gains or losses from the sale of foreign assets under the recently introduced Section 10(L) of the Income Tax Act (ITA). Presently, gains from the sale of foreign assets that are capital in nature are not taxable. The e-Tax Guide provides details on the revised income tax treatment of profits or losses arising from the sale or disposal of movable or immovable property located outside Singapore, commonly referred to as “foreign assets.”
The changes will apply to the sale or disposal of a foreign asset that occurs on or after 1 January 2024.
