On 31 March 2021, the Inland Revenue Authority of Singapore (IRAS) published an updated e-Tax Guide Income Tax Treatment of Foreign Exchange Gains or Losses for Businesses (Fourth Edition). The e-Tax Guide provides details on the tax treatment of foreign exchange gains or losses for businesses (banks and businesses other than banks). The guide summarizes the treatment as follows:
- Capital foreign exchange differences - Not taxable or deductible;
- Revenue foreign exchange differences - All exc…