Foreign income refers to income derived from outside of Singapore which does not arise from a trade or business carried on in Singapore.

Generally, such income is taxable in Singapore when remitted to and received in Singapore. From 1 Jan 2004, all foreign-sourced income received in Singapore by resident individual, except those through a Singapore partnership, will be exempt from tax . Under certain circumstances, Singapore tax resident company can enjoy tax breaks on the foreign sourced income.

Q：	How can I enjoy tax breaks on foreign income?
A：	Company has to be Singapore tax residents to enjoy tax breaks on foreign income as follows: Upfront exemption or reduction in tax imposed on the foreign income, when foreign income is   derived in a jurisdiction that has an Avoidance of Double Taxation Agreement (DTA) with Singapore; Tax exemption of specified foreign income such as foreign-sourced dividends, branch profits and service income; and Foreign tax credit (FTC) for the taxes paid in the foreign jurisdiction against the Singapore tax payable on the same income.
Q：	What is Singapore tax resident company?
A：	A company is a tax resident in Singapore when the control and management of the company is exercised in Singapore. “Control and management” is the making of decisions on strategic matters, such as those on company policy and strategy. (e.g: the location of the company's Board of Directors meetings)
Q：	What is Avoidance of Double Taxation Agreement (DTA)?
A：	DTA is an agreement concluded between Singapore and another jurisdiction (a treaty partner) which aims to relieve double taxation of income that is earned in one jurisdiction by a resident of the other jurisdiction. The DTA also provides for reduction or exemption of tax on certain types of income. Singapore tax resident must show the below document to treaty partner in order to enjoy DTA benefit: Certificate of Residence (COR), or Tax reclaim form
Q：	What is the condition for tax exemption on foreign-sourced dividend, foreign branch profits and foreign-sourced service income?
A：	Tax exemption will be granted when all of the following three conditions are met The foreign income had been subject to tax in the foreign jurisdiction from which they were received (known as the "subject to tax" condition) ; The highest corporate tax rate (foreign headline tax rate condition) of the foreign jurisdiction from which the income is received is at least 15% at the time the foreign income is received in Singapore; and The Comptroller is satisfied that the tax exemption would be beneficial to the person resident in Singapore.
Q：	What is the Foreign Tax Credit (FTC)?
A：	Companies may claim foreign tax credit (FTC) for tax paid in a foreign jurisdiction against the Singapore tax payable on the same income. The following types of tax credits that may be claimed are: Unilateral tax credit (UTC) – This is for income remitted from countries which Singapore does not have a Double Taxation Agreement (DTA) with; or Double taxation relief (DTR) – This is for income remitted from countries which Singapore has a DTA with