C Pte Ltd (CPL) is a company incorporated and resident in Singapore. It has two wholly-...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
C Pte Ltd ("CPL") is a company incorporated and resident in Singapore. It has two wholly- owned subsidiaries - D Pte Ltd ("DPL") in Country D and E Pte Ltd ("EPL") in Country E. DPL is a tax resident in Country D, and EPL is a tax resident in Country E. During the financial year ended 31 December 2021, CPL received in Singapore the following income from DPL and EPL (net of any taxes imposed in Country D and Country E, where applicable). Dividend income Interest income Royalty income The corporate income tax rate Domestic dividend withholding tax Domestic interest withholding tax Domestic royalty withholding tax . DPL $10,000 0 0 (b) The following is an extract of the relevant tax information in Country D and Country E. Country D Country E 15% 18% EPL 15% 10% N/A 0 $50,000 $30,000 5% 5% 5% Under the domestic income tax laws in Country D and Country E, dividends can only be paid out of the corporate profits that have been subject to domestic income tax in the respective countries. Singapore does not conclude any comprehensive Double Tax Agreements with Country D and Country E. Required: (a) Indicate whether any of CPL's income derived from Country D and Country E as mentioned above would be eligible for the foreign-sourced income exemption under Section 13(8) and (9) of the ITA. (8 marks) Illustrate CPL's minimum Singapore income tax liability for Year of Assessment 2022 through the income tax computations, and indicate whether an election for foreign income tax credit pooling method under Section 50C of the ITA should be made. (17 marks) C Pte Ltd ("CPL") is a company incorporated and resident in Singapore. It has two wholly- owned subsidiaries - D Pte Ltd ("DPL") in Country D and E Pte Ltd ("EPL") in Country E. DPL is a tax resident in Country D, and EPL is a tax resident in Country E. During the financial year ended 31 December 2021, CPL received in Singapore the following income from DPL and EPL (net of any taxes imposed in Country D and Country E, where applicable). Dividend income Interest income Royalty income The corporate income tax rate Domestic dividend withholding tax Domestic interest withholding tax Domestic royalty withholding tax . DPL $10,000 0 0 (b) The following is an extract of the relevant tax information in Country D and Country E. Country D Country E 15% 18% EPL 15% 10% N/A 0 $50,000 $30,000 5% 5% 5% Under the domestic income tax laws in Country D and Country E, dividends can only be paid out of the corporate profits that have been subject to domestic income tax in the respective countries. Singapore does not conclude any comprehensive Double Tax Agreements with Country D and Country E. Required: (a) Indicate whether any of CPL's income derived from Country D and Country E as mentioned above would be eligible for the foreign-sourced income exemption under Section 13(8) and (9) of the ITA. (8 marks) Illustrate CPL's minimum Singapore income tax liability for Year of Assessment 2022 through the income tax computations, and indicate whether an election for foreign income tax credit pooling method under Section 50C of the ITA should be made. (17 marks)
Expert Answer:
Answer rating: 100% (QA)
a The income derived from DPL would not be eligible for the foreignsourced income exemption under Se... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-1118742976
16th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
Students also viewed these economics questions
-
In 2011, Hopyard Lumber changed its inventory method from LIFO to FIFO. Inventory at the end of 2010 of $127,000 would have been $145,000 if FIFO had been used. Inventory at the end of 2011 is...
-
In 2013, Hopyard Lumber changed its inventory method from LIFO to FIFO. Inventory at the end of 2012 of $127,000 would have been $145,000 if FIFO had been used. Inventory at the end of 2013 is...
-
In 2018, Hopyard Lumber changed its inventory method from LIFO to FIFO. Inventory at the end of 2017 of $127,000 would have been $145,000 if FIFO had been used. Inventory at the end of 2018 is...
-
How much taxes do Employees and Employers pay in F.I.C.A? a) Employees and Employers paid 1.45% in taxes. b) Employees and Employers paid 7.65% in taxes. c) Employers and Employees paid 2.7% in...
-
What standards or guidelines are relevant to the assurance of corporate social responsibility disclosures?
-
Green Lawn Inc. makes and sells lawn mowers for which it currently makes the engines. It has an opportunity to purchase the engines from a reliable manufacturer. The annual costs of making the...
-
Identify and describe the key attributes that might mitigate a red flag, suggesting that no bad act or compliance issues exist.
-
Lafayette Film Center (LFC) is a not-for-profit theater that plays independent films. In addition to revenue from theater admissions, LFC relies on concession and caf sales, grants and other external...
-
4. The effects of the German reunification in the Solow world. Imagine that West Germany in 1989 was well represented by the following differential equation. k =ska (8+n+g)k Let's assume that at that...
-
A retail outlet sells a seasonal product for $10 per unit. The cost of the product is $8 per unit. All units not sold during the regular season are sold for half the retail price in an end-of-season...
-
1. What is the direction of the acceleration of the object at moment 5? (Enter the letter of the arrow with this direction from the compass rose in the figure. Type Z if the acceleration vector has...
-
Consider a market that consists of "only three" risky stocks with the following information. Number of shares Price Expected rate of outstanding per share return Stock A 5,000 $2.00 10% Stock B 4,000...
-
(b) You are given four numbers a, b, c, d. You want to sort them in increasing order. It is known that they are all different, and furthermore a
-
The following are lot dimensions for a rectangular lot taken with Google Maps. What is the area of this rectangular lot? Enter the number and the unit with a one space between the number and the...
-
Jack lives in Ontario and is moving to BC. He is selling all of his furnishings including his car. Jill sees the car up for sale on Kijiji, and offers Jack the money he asked for, but also saying she...
-
In own words and using this week's materials for support, answer the following question/prompt: Firms use different strategies to extend the life cycles of their products throughout the maturity...
-
14. A small fuse that's very fast- acting is type O A. MDQ. O B. MDA. O C. GBB. O D. TDC.
-
7 A 29-year-old, previously healthy man suddenly collapses at a party where legal and illicit drugs are being used. Enroute to the hospital, he requires resuscitation with defibrillation to establish...
-
Crocker Corp. owes D. Yaeger Corp. a 10-year, 10% note in the amount of $330,000 plus $33,000 of accrued interest. The note is due today, December 31, 2017. Because Crocker Corp. is in financial...
-
Michek Company loans Sarasota Company $2,000,000 at 6% for 3 years on January 1, 2017. Michek intends to hold this loan to maturity. The fair value of the loan at the end of each reporting period is...
-
Hillside Company enters into a contract with Sanchez Inc. to provide a software license and 3 years of customer support. The customer-support services require specialized knowledge that only Hillside...
-
Please reflect on and explain the role and usefulness of the concept of SD in relation to the protection of the environment.
-
Has the concept of SD achieved the balance between all three pillars: environmental protection; economic development; and social issues?
-
What, if any, is the normative content of the concept of SD?
Study smarter with the SolutionInn App