With effect from 16 November 2021, taxpayers will be required to submit a form of ‘Written Notice of Downward Adjustment of Foreign Tax’ to the Inland Revenue Authority of Singapore (IRAS), when a downwards adjustment of foreign tax paid in a foreign jurisdiction results in excessive foreign tax credit being claimed in their reported tax return.
There is a requirement for the form to be submitted within one year from the date on which the adjustment was made by the foreign tax authority. Taxpayers will need to provide details of the downward adjustment of foreign tax, along with relevant supporting documents.
The completed form may be submitted on the IRAS tax portal via the ‘Revise/Object to Assessment’ (for companies) or ‘myTaxMail’ digital services.
Additionally, the statutory time limit to raise further tax assessments due to such foreign tax credit adjustments has increased from two years to three years from the time when such adjustments are made.