Question

Brighton investment is a Singapore resident company which had the following incomes for the year.

$

Trading profits in Singapore 1,500,000

Fixed deposit interest [UOB Singapore] 44,000

Gross royalty income for foreign countries:

- China 112,000

- Hong Kong 155,000

- Malaysia 35,000

- India 23,000

All the above foreign sourced income was remitted into Singapore on December 2019. Singapore has tax treaties with China, Malaysia and India but no treaty with Hong Kong. The withholding tax rates in foreign countries are: Malaysia - 8%

Hong Kong - 5.5%

China - 10%

India - 10%

Determine the final tax liability for Brighton Pte Ltd for the year of assessment 2020 after allowing the partial exemptions.

Answer 1

Various Subsidiaries of Brighton Investment	Singapore	China	Hongkong	Malayasia	India	Total
Trading Profit	1,500,000					1,500,000
Fixed Deposit Interest	44,000					44,000
Gross Royalty Income		112000	155000	35000	23000	325,000
Total Taxable Income	1,544,000	112,000	155,000	35,000	23,000	1,869,000
Tax Liability @17% (Assuming no exemptions as not clearly mentioned)	262,480	19,040	26,350	5,950	3,910	317,730.00
Allowable Withholding Tax rates		10%		8%	10%
Allowable Withholding Tax Amounts		11200		2800	2300	16,300
Net Final Tax Liability after taking Credit of Allowable Withholding Taxes with countries having Tax Treaties						301,430.00