The Inland Revenue Authority of Singapore issued a circular on 22 June 2011, which provides details on the foreign tax credit (FTC) pooling system introduced in Budget for 2011.
Currently, resident taxpayers who have foreign income that is subject to tax in the foreign jurisdiction and in Singapore, can claim a FTC against the Singapore tax payable on the foreign income. The FTC is the lower of the foreign tax paid and Singapore tax payable on the income, comp…