Singapore: Updated e-Tax Guide on total asset method for interest adjustment
Rationale for using the total asset method for attributing common interest expenses to income producing and non-income producing assets
Updated e-Tax Guide
The Inland Revenue Authority of Singapore (IRAS) updated its e-Tax Guide on the total asset method for interest adjustment.
The guide, which was first published on 16 December 2016, sets out the rationale for using the total asset method for attributing common interest expenses (including borrowing costs akin to interest) to income producing and non-income producing assets, the underlying assumptions, and how the total asset method must be applied.
Read a July 2023 report [PDF 367 KB] prepared by the KPMG member firm in Singapore
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