For Singapore income tax purposes, income is subject to tax if it is sourced in Singapore or if foreign-sourced income is received or deemed to be received in Singapore (unless specifically exempted by the tax law). Also, the determination as to whether income is subject to tax is based on the “entitlement to income” principle.
From the perspective of the Inland Revenue Authority of Singapore, aligning this tax treatment of income with the treatment under accounting standard FRS 115, Revenue from Contracts with Customers, may represent a move away from the “entitlement to income” principle because revenue would now be recognized when the taxpayer / entity has performed its obligations (even if it might not be entitled to the income yet).
The tax authority issued a public consultation paper to aid in making a decision as to whether or not the tax rules need to be revised to align with the FRS 115 accounting treatments.
Read a February 2016 report prepared by the KPMG member firm in Singapore: Income Tax Implications Arising from the Adoption of FRS 115 Revenue from Contracts with Customers
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.