Singapore legislation

Regulation 4

of Income Tax (Functional Currency) Regulations 2004

Regulation 4

Applicable rate of exchange

Amended byS 880/2022 wef 11/11/2022S 880/2022 wef 11/11/2022

Subregulation 1

Subject to paragraph (2), a company, an individual or a precedent partner referred to in regulation 2 or 3, as the case may be, shall make an irrevocable election in writing of one of the following rates of exchange for the purposes of converting the amounts referred to in regulation 2 or 3, as the case may be, denominated in Singapore dollar into an equivalent amount in a non-Singapore dollar functional currency:

(a)

the average rate of exchange, as made available by the Monetary Authority of Singapore, calculated on the basis of the rate of exchange at the end of each month for a period of 12 months up to the last day of the last accounting period in which the financial accounts are maintained in Singapore dollar;

(b)

the average rate of exchange, as made available by the Monetary Authority of Singapore, calculated on the basis of the rate of exchange at the end of each month of the accounting period that constitutes the basis period for that year of assessment.

Subregulation 1A

Amended byS 880/2022 wef 11/11/2022

Subject to paragraph (2), a licensed insurer mentioned in regulation 3A must make an irrevocable election in writing of one of the following rates of exchange for the purposes of converting the amounts mentioned in regulation 3A denominated in a non‑Singapore dollar functional currency into an equivalent amount in Singapore dollar:

(a)

the average rate of exchange, as made available by the Monetary Authority of Singapore, calculated on the basis of the rate of exchange at the end of each month for a period of 12 months up to the last day of the last accounting period in which the financial accounts are maintained in a non‑Singapore dollar functional currency;

(b)

the average rate of exchange, as made available by the Monetary Authority of Singapore, calculated on the basis of the rate of exchange at the end of each month of the accounting period that constitutes the basis period for that year of assessment.

Subregulation 2

Amended byS 880/2022 wef 11/11/2022

Where no average rate of exchange referred to in paragraph (1)(a) or (b), or (1A)(a) or (b) is made available by the Monetary Authority of Singapore, the average rate of exchange applicable shall be such rate of exchange as may be determined by the Comptroller.