Singapore IRAS Foreign Tax Credit Calculator 2026
Calculate your Foreign Tax Credit (FTC) to offset foreign taxes against Singapore tax. FTC = min(foreign tax paid, Singapore tax on same income). Source: iras.gov.sg.
What Is Singapore's Foreign Tax Credit (FTC)?
Singapore's Foreign Tax Credit system prevents double taxation for Singapore tax residents who earn income overseas. Under Section 50A of the Income Tax Act, individuals can offset foreign taxes paid against the Singapore tax liability on the same income. The FTC is calculated as the lower of: (1) the foreign tax paid, or (2) the Singapore tax attributable to the foreign income. Any excess foreign tax beyond the Singapore liability is not refunded — it is simply not claimable. Source: iras.gov.sg. Last updated: May 2026.
FTC Formula and 2026 Singapore Tax Rates
FTC = min(Foreign Tax Paid, SG Marginal Rate × Foreign Income). Singapore's 2026 personal income tax rates range from 0% (first S$20,000) to 24% (income above S$1,000,000). The key marginal bands are: 15% at S$120k–S$160k, 18% at S$160k–S$200k, 19% at S$200k–S$240k, 22% at S$240k–S$320k, and 24% above S$500k. For most expats with foreign employment income, the applicable marginal rate is 22%–24%. Always use your actual marginal rate, not average rate, for FTC calculation.
FTC vs Section 13(8) Exemption
Singapore offers two routes to avoid double taxation: (1) FTC under Section 50A — credit the foreign tax against SG liability, and (2) Section 13(8) exemption — foreign-sourced dividends, branch profits, and service income may be exempt from Singapore tax entirely if they were taxed at 15%+ overseas. Section 13(8) is often more advantageous as it eliminates SG tax entirely rather than just offsetting it. Consult a Singapore tax advisor to determine which route applies to your specific income type and tax treaty situation. Source: iras.gov.sg.
Frequently Asked Questions
What is Foreign Tax Credit (FTC) in Singapore?
Singapore's Foreign Tax Credit (FTC) allows tax residents to offset foreign taxes paid on foreign-sourced income against their Singapore tax liability on the same income. This prevents double taxation. Source: iras.gov.sg.
How is Singapore FTC calculated?
FTC = min(foreign tax paid, Singapore tax on the same foreign income). The Singapore tax is calculated by applying your Singapore marginal rate to the foreign income amount.
Which countries have a tax treaty with Singapore?
Singapore has tax treaties with over 90 countries including UK, USA, Australia, Germany, Malaysia, Indonesia, China, Japan, and India. Treaty countries may have lower withholding rates. Check iras.gov.sg for the full treaty list.
Can I claim FTC on dividends from overseas?
Yes. Foreign dividends remitted to Singapore may qualify for FTC if taxed overseas. Foreign dividends may also qualify for Section 13(8) exemption if the foreign tax rate is at least 15%.
Do I need to file for FTC separately?
Yes. FTC must be claimed in your annual IRAS income tax return (Form B or B1). Attach Form IR37 for foreign income with supporting documents showing foreign tax paid.