Singapore: Taxpayer not “trading in derivates” within meaning of financial sector incentive regulations (Income Tax Board of Review decision)

Taxpayer thus entitled to deduct loss at 18% corporate tax rate, rather than 10% concessionary rate.

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July 22, 2025

The Income Tax Board of Review held in GIR v. Comptroller of Income Tax [2025] SGITBR2 that the taxpayer was not “trading in derivatives” within the meaning of the Income Tax (Concessionary Rate of Tax for Financial Sector Incentive Companies) Regulations 2005 (“FSI Regulations”) and the subsequent 2017 regulations.

Thus, the taxpayer was entitled to deduct its loss at the prevailing 18% corporate tax rate, rather than at the 10% concessionary rate applicable under the FSI Regulations.

Read a July 2025 report prepared by the KPMG member firm in Singapore

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