Taxation - Singapore

(SGP) (F6) Syllabus rationale

Exams in the year 1 April
This is a narrative explaining how the syllabus is
2017 to 31 March 2018 structured and how the main capabilities are linked.
The rationale also explains in further detail what the
examination intends to assess and why.

This syllabus and study guide is designed to help Detailed syllabus

with planning study and to provide detailed
information on what could be assessed in This shows the breakdown of the main capabilities
any examination session. (sections) of the syllabus into subject areas. This is
the blueprint for the detailed study guide.
THE STRUCTURE OF THE SYLLABUS AND
STUDY GUIDE Approach to examining the syllabus

Relational diagram of paper with other papers This section briefly explains the structure of the
examination and how it is assessed.
This diagram shows direct and indirect links
between this paper and other papers preceding or Study Guide
following it. Some papers are directly underpinned
by other papers such as Advanced Performance This is the main document that students, tuition
Management by Performance Management. These providers and publishers should use as the basis of
links are shown as solid line arrows. Other papers their studies, instruction and materials.
only have indirect relationships with each other Examinations will be based on the detail of the
such as links existing between the accounting and study guide which comprehensively identifies what
auditing papers. The links between these are shown could be assessed in any examination session.
as dotted line arrows. This diagram indicates where The study guide is a precise reflection and
you are expected to have underpinning knowledge breakdown of the syllabus. It is divided into sections
and where it would be useful to review previous based on the main capabilities identified in the
learning before undertaking study. syllabus. These sections are divided into subject
areas which relate to the sub-capabilities included
Overall aim of the syllabus in the detailed syllabus. Subject areas are broken
down into sub-headings which describe the detailed
This explains briefly the overall objective of the outcomes that could be assessed in examinations.
paper and indicates in the broadest sense the These outcomes are described using verbs
capabilities to be developed within the paper. indicating what exams may require students to
demonstrate, and the broad intellectual level at
Main capabilities which these may need to be demonstrated
(*see intellectual levels below).
This paper’s aim is broken down into several main
capabilities which divide the syllabus and study INTELLECTUAL LEVELS
guide into discrete sections.
The syllabus is designed to progressively broaden
Relational diagram of the main capabilities and deepen the knowledge, skills and professional
values demonstrated by the student on their way
This diagram illustrates the flows and links between through the qualification.
the main capabilities (sections) of the syllabus and
should be used as an aid to planning teaching and The specific capabilities within the detailed
learning in a structured way. syllabuses and study guides are assessed at one of
three intellectual or cognitive levels:

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 Level 1: Knowledge and comprehension subject area headings depending on the nature of
Level 2: Application and analysis the subject and how these areas have been broken
Level 3: Synthesis and evaluation down.

Very broadly, these intellectual levels relate to the GUIDE TO EXAM STRUCTURE
three cognitive levels at which the Knowledge
module, the Skills module and the Professional level The structure of examinations varies within and
are assessed. between modules and levels.

Each subject area in the detailed study guide The Fundamentals level examinations contain
included in this document is given a 1, 2, or 100% compulsory questions to encourage
3 superscript, denoting intellectual level, marked at candidates to study across the breadth of each
the end of each relevant line. This gives an syllabus.
indication of the intellectual depth at which an area
could be assessed within the examination. However, The Knowledge module is assessed by equivalent
while level 1 broadly equates with the Knowledge two-hour paper based and computer based
module, level 2 equates to the Skills module and examinations.
level 3 to the Professional level, some lower level
skills can continue to be assessed as the student The Skills module examinations F5-F9 are paper
progresses through each module and level. This based exams containing a mix of
reflects that at each stage of study there will be a objective and longer type questions with a duration
requirement to broaden, as well as deepen of three hours 15 minutes. The Corporate
capabilities. It is also possible that occasionally and Business Law (F4) paper is a two-hour
some higher level capabilities may be assessed at objective test examination which is
lower levels. also available as a computer based exam for English
and Global variants, as well as paper based for all
LEARNING HOURS AND EDUCATION variants.
RECOGNITION
The Professional level papers are all three-hour 15
The ACCA qualification does not prescribe or minutes paper based examinations, all
recommend any particular number of learning hours containing two sections. Section A is compulsory,
for examinations because study and learning but there will be some choice offered in Section B.
patterns and styles vary greatly between people and
organisations. This also recognises the wide ACCA has removed the restriction relating to reading
diversity of personal, professional and educational and planning time, so that while the time
circumstances in which ACCA students find considered necessary to complete these exams
remains at 3 hours, candidates may use the
themselves.
additional 15 minutes as they choose. ACCA
encourages students to take time to read questions
As a member of the International Federation of carefully and to plan answers but once the exam
Accountants, ACCA seeks to enhance the education time has started, there are no additional restrictions
recognition of its qualification on both national and as to when candidates may start writing in their
international education frameworks, and with answer books.
educational authorities and partners globally. In
doing so, ACCA aims to ensure that its qualifications Time should be taken to ensure that all the
are recognized and valued by governments, information and exam requirements are properly
regulatory authorities and employers across all read and understood.
sectors. To this end, ACCA qualifications are
currently recognized on the education frameworks in The Essentials module papers all have a Section A
several countries. Please refer to your national containing a major case study question with all
education framework regulator for further requirements totalling 50 marks relating to this
information. case. Section B gives students a choice of two from
three 25 mark questions.
Each syllabus contains between 23 and 35 main

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Section A of both the P4 and P5 Options papers The study guide offers more detailed guidance on
contain one 50 mark compulsory question, and the depth and level at which the examinable
Section B will offer a choice of two from three documents will be examined. The study guide
questions each worth 25 marks each. should therefore be read in conjunction with the
examinable documents list.
Section A of each of the P6 and P7 Options papers
contains 60 compulsory marks from two questions;
question 1 attracting 35 marks, and question 2
attracting 25 marks. Section B of both these
Options papers will offer a choice of two from three
questions, with each question attracting 20 marks.

All Professional level exams contain four

professional marks.

The pass mark for all ACCA Qualification

examination papers is 50%.

GUIDE TO EXAMINATION ASSESSMENT

ACCA reserves the right to examine anything

contained within the study guide at any examination
session. This includes knowledge, techniques,
principles, theories, and concepts as specified.

For the tax papers, ACCA will publish examinable

documents, or tax rates and allowances tables, once
a year to indicate exactly what legislation could
potentially be assessed within identified
examination sessions. These should be read in
conjunction with the information below.

For SGP tax papers, examinations falling within the

year 1 April to 31 March will be based on
legislation passed, including practice notes or
circulars issued by the relevant authorities including
the Inland Revenue Authority of Singapore (IRAS),
before the previous 30 September i.e. examinations
falling in the year 1 April 2017 to 31 March 2018
will be based on legislation passed by 30
September 2016.

Regulation issued or legislation passed in

accordance with the above dates may be
examinable even if the effective date is in the future.
The term issued or passed relates to when
regulation or legislation has been formally approved.

The term effective relates to when regulation or

legislation must be applied to an entity transactions
and business practices.

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 Syllabus MAIN CAPABILITIES

After completing this examination paper students

should be able to:

(P6) SGP A Explain the operation and scope of the tax

system and the obligations of tax payers and/or
their agents and the implications of non-
compliance.
(F6) SGP
B Explain and compute the income tax liabilities
of individuals

C Explain and compute the corporate income tax

AIM liabilities of individual companies and groups of
companies
To develop knowledge and skills relating to the tax
system as applicable to individuals, single D Explain and compute the effect of goods and
companies and groups of companies. services tax on incorporated and
unincorporated businesses

RELATIONAL DIAGRAM OF MAIN CAPABILITIES

The Singapore tax system and its administration (A)

Individual tax liabilities Corporate income tax Goods and services tax
(B) liabilities (C) (D)

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RATIONALE 4. Property and investment income

This syllabus introduces candidates to the subject of 5. The comprehensive computation of taxable
taxation and provides the core knowledge of the income and income tax liability
underlying principles and major technical areas of
taxation, as they affect the activities of individuals 6. The use of exemptions and reliefs in deferring
and businesses. and minimising income tax liabilities

In this syllabus, candidates are introduced to the C. Corporate income tax liabilities
rationale behind and the functions of the tax
system. The syllabus then considers the separate 1. The scope of corporate income tax
taxes that an accountant would need to have a
detailed knowledge of, such as income tax from self 2. Profits chargeable to corporate income tax
employment, employment and investments; the
corporation tax liability of individual companies and 3. The comprehensive computation of the
groups of companies; and the goods and services corporate income tax liability
tax liability of businesses.
4. The effect of a group corporate structure for
Having covered the core areas of the basic taxes, corporate income tax purposes
the candidate should be able to compute tax
liabilities, explain the basis of their calculations, 5. The use of exemptions and reliefs in deferring
apply tax planning techniques for individuals and and minimising corporate income tax liabilities
companies and identify the compliance issues for
each major tax through a variety of business and D. Goods and Services Tax
personal scenarios and situations.
1. The scope of goods and services tax (GST)
DETAILED SYLLABUS
2. The GST compliance requirements
A. The Singapore tax system and its
administration 3. The computation of GST payments/refunds

1. The overall function and purpose of taxation in

a modern economy

2. Principal sources of revenue law and practice

3. The time limits for the submission of

information, claims and payment of tax

4. The procedures relating to enquiries, appeals

and disputes

5. Penalties for non-compliance

B. Individual tax liabilities

1. The scope of income tax

2. Income from employment

3. Income from self-employment

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 APPROACH TO EXAMINING THE SYLLABUS

The syllabus is assessed by a three-hour 15 minutes

paper-based examination.

The paper will be predominantly computational and

all questions are compulsory.

Section A of the exam comprises 15 multiple choice

questions of 2 marks each.

Section B of the exam comprises four 10 mark

questions and two 15 mark questions.

The two 15 mark questions will substantially focus

on income tax (syllabus area B) and corporation tax
(syllabus area C).

The section A questions and the other questions in

section B can cover any areas of the syllabus.

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Study Guide assessed on estimated chargeable income and
withholding tax.[2]

A THE SINGAPORE TAX SYSTEM AND ITS d) List the information and records that taxpayers
ADMINISTRATION need to retain for tax purposes.[1]

1. The overall function and purpose of taxation in 4. The procedures relating to enquiries, appeals
a modern economy and disputes

a) Describe the purpose (economic, social etc.) of a) Explain the circumstances in which the
taxation in a modern economy.[2] Comptroller can enquire into the tax affairs of
taxpayers.[2]
b) Identify the different types of revenue tax.[1]
b) Explain the procedures for dealing with appeals
c) Explain the difference between direct and and disputes.[1]
indirect taxation.[2]
5. Penalties for non-compliance
2. Principal sources of revenue law and practice
a) State the penalties that can be charged for
a) Describe the overall structure of the Singapore non-compliance with the requirements of the
tax system.[1] Income Tax Act.[2]

b) State the different sources of revenue law and b) Calculate late payment penalties on overdue
practice.[1] tax and withholding tax.[2]

c) Appreciate the interaction of the Singapore tax B INDIVIDUAL TAX LIABILITIES

system with that of other tax jurisdictions.[2]
1. The scope of individual income tax
d) Explain the difference between tax avoidance
and tax evasion.[1] a) Explain how the residence of an individual is
determined.[1]
e) Explain the need for an ethical and professional
approach.[2] b) Understand the application of the 3-year and
2-year concession rules for tax residence.[2]
Excluded topics

 Detailed knowledge and application of tax Excluded topics

treaties
 Not-ordinarily resident individuals
 Anti-avoidance legislation.
 Double taxation relief
3. The time limits for the submission of
information, claims and payment of tax  Income from trusts and settlements

a) Recognise the time limits that apply to the  Tax deduction for angel investors
filing of returns, including estimates of
chargeable income and the making of claims.[2] 2. Income from employment

b) Explain the withholding tax implications arising a) Recognise the factors that determine whether
in respect of payments made to non- an engagement is treated as employment or
residents.[2] self-employment and the tax implications
thereof.[2]
c) Recognise the due dates for the payment of tax
including instalment arrangements and tax

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 b) Recognise the basis of assessment for i) Define plant and machinery for capital
employment income for an individual who is a allowances purposes [1]
resident or a non-resident of Singapore.[2] ii) Compute capital allowances claimable
including accelerated and one-year
c) Distinguish between gains and profits; and write-off [2]
capital receipts from employment. [2] iii) Compute enhanced capital allowances
under the PIC incentive for prescribed
d) Compute the income assessable.[2] automation equipment [2]
iv) Compute balancing allowances and
e) Recognise the allowable expenses that can be balancing charges [2]
deducted from employment income. [2] v) Compute industrial buildings annual
allowance for existing qualifying buildings[2]
f) Compute the amount of benefits assessable, vi) Compute the balancing adjustment on the
including share options, share awards and disposal of an industrial building [2]
excess CPF contributions made by an vii) Compute Land Intensification Allowance
employer.[2] (LIA) for qualifying capital expenditure of an
LIA building.
Excluded topics viii) Compute the balancing adjustment on the
disposal of an LIA building.
 Entrepreneurial employee equity-based ix) Understand how capital allowances can be
remuneration scheme (section 13J) carried forward and carried back [2]
x) Understand how capital allowances can be
 Company employee equity-based claimed against total income [2]
remuneration scheme (Section 13L) xi) Understand the order of set-off of current
and previous years capital allowances.[2]
 Not-ordinarily resident (NOR) scheme
g) Compute PIC cash payout for qualifying
 Foreign tax credit (including foreign tax expenditure incurred in the training of
credit pooling) employees and prescribed automation
equipment. [2]
3 Income from self-employment
h) Relief for trading losses
a) Recognise the basis of assessment for self- i) Understand how trading losses can be
employment income, including the cases of carried forward and carried back [2]
commencement and cessation.[2] ii) Understand how trading losses can be
claimed against total income [2]
b) Distinguish between income receipts and iii) Understand the order of set-off of current
capital receipts.[2] and previous years’ trading losses [2]

c) Describe and apply the badges of trade.[2] i) Partnerships, limited liability partnerships and
limited partnerships
d) Recognise the expenditure that is allowable in i) Explain how a partnership is assessed to
calculating the tax-adjusted trading profit, tax [2]
including enhanced deductions under the ii) Compute the assessable profits for each
productivity and innovation credit (PIC) partner following a change in the profit
incentive, PIC+ incentive (collectively referred sharing ratio [2]
to as 'PIC incentive') for qualifying expenditure iii) Compute the assessable profits for each
incurred in the training of employees. [2] partner following a change in the
membership of the partnership [2]
e) Recognise the relief that can be obtained for iv) Explain the capital allowances, industrial
pre-trading expenditure.[2] building allowances and trade loss relief
restriction that applies to the partners of a
f) Capital allowances

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 limited liability partnership and a limited b) Calculate the amount of personal allowance
partnership [1] available to individuals aged below 50 and
recognise the principle reliefs claimable, such
j) Recognise Singapore sourced professional as earned income, spouse, children, working
income of non-residents [2] mother’s child relief, life assurance, aged
parents, grandparent caregiver, course fees,
Excluded topics foreign maid levy and NSman.[2]

 Change of accounting date c) Understand the relief given for donations and
the carry forward of unabsorbed donations.[2]
 Writing down allowances for approved cost
sharing agreements for research and d) Compute the amount of income tax payable.[2]
development activities
Excluded topics
 The disposal of an industrial building at less
than original cost following a period of non-  All reliefs and rebates not included above
industrial use (sales for more than original
cost are examinable) 6. The use of exemptions or reliefs in deferring
and minimising income tax liabilities.
 Transition from partnership and/or
corporation to a limited liability partnership a) Explain and compute the relief given for
/ limited partnership and vice versa contributions to the Central Provident Fund
(CPF) made by employees and the self-
4. Property and investment income employed.[2]

a) Compute the net income from investments in b) Recognise the tax implications of a
properties, equities, placement of funds on shareholder/director extracting profits from an
deposits with banks and loans granted both owner managed company by way of
within and outside Singapore.[2] remuneration versus dividend payments. [2]

b) Explain the treatment of losses from Excluded topics

investments.[2]
 Supplementary retirement scheme
c) Recognise the difference between a business
being carried on and pure investment intent.[2] C CORPORATE INCOME TAX LIABILITIES

d) Compute the tax payable on dividend 1. The scope of corporate income tax
income.[2]
a) Define the terms basis period and the year of
e) Recognise the exemptions available for certain assessment.[1]
types of investment income [2]
b) Determine the basis period for assessing
Excluded topics corporate profits, including the case of a
change of accounting date. [2]
 Investments in unit trusts
c) Recognise the factors that must be considered
5 The comprehensive computation of taxable when incorporating a business. [2]
income and income tax liability
d) Explain how the residence of a company is
a) Prepare a basic income tax computation determined.[2]
involving different types of income.[2]

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 e) Understand the differences between an k) Understand how trading losses can be carried
incorporated company, a branch of a foreign forward and forfeited.[2]
company and a representative office.[2]
l) Understand how trading losses can be claimed
Excluded topics against income of the current or previous
accounting periods.[2]
 Close companies
m) Recognise the order of set-off of capital
 Companies in receivership or liquidation allowances and losses of the current and
previous years.[2]
 Reorganisations
n) Compute profits chargeable to corporation
 The purchase by a company of its own tax.[2]
shares (except in the case of such treasury
shares that are given to employees as a o) Compute PIC cash payout for qualifying
reward for services). expenditure incurred in the training of
employees and prescribed automation
 Specialised industry such as shipping, equipment[2]
banking, insurance etc.
Excluded topics
2. Profits chargeable to corporate income tax
 Research and development expenditure
a) Distinguish between income receipts and
capital gains[2] 3. The comprehensive computation of the
corporate income tax liability
b) Recognise the tax treatment of income from
trade/business[2] a) Prepare a basic tax computation for a company
involving the different types of income [2]
c) Recognise the expenditure that is allowable in
calculating the tax-adjusted trading profit (as b) Understand the relief given for donations and
for individual income tax).[2] the carry forward of unabsorbed donations. [2]

d) Recognise the tax treatment of income from c) Understand the tax implications arising from
sources other than trade/business.[2] the distribution of profits by a company to its
shareholders. [2]
e) Recognise the tax treatment of foreign sourced
income received or deemed received in d) Compute the corporation tax liability, including
Singapore.[2] the basic calculation of unilateral tax credit. [2]

f) Explain how relief can be obtained for pre- e) Explain how exemptions and reliefs can defer
trading expenditure.[1] or minimise corporation tax liabilities.[2]

g) Compute capital allowances (as for individual Excluded topics

income tax).[2]
 Incentives under the Economic Expansion
h) Compute capital allowances in respect of Incentive Act
intellectual property rights. [2]
 Incentives by way of exemption or
i) Compute income from the business of the concessionary rate of tax on certain
making of investments.[2] trade/business activities such as shipping
income
j) Recognise the income that is exempt from
tax.[1]

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4. The effect of a group corporate structure for Excluded topics
corporate income tax purposes
 Group registration.
a) Define members of the same group and
recognise the effect of being a member of the 3. The computation of GST liabilities
same group for corporation tax purposes.[2]
a) Explain how GST is accounted for and
b) Recognise the reliefs that are available to administered.[2]
members of such a group.[2]
b) Recognise the tax point when goods or services
c) Explain the basic principles contained in the are supplied from 1 January 2011.[2]
transfer pricing guidelines.[2]
c) Explain the circumstances in which pre-
d) Recognise the effects of a corporation registration input GST can be recovered.[2]
becoming a member of a group for only part of
a year.[2] d) Explain and apply the principles regarding the
valuation of supplies including imports.[2]
Excluded topics
e) Recognise the circumstances in which input
 A member of the same group enjoying a GST is non-deductible.[2]
concessionary rate of tax
f) Recognise the de minimis rules.[2]
5. The use of exemptions and reliefs in deferring
and minimising corporate income tax liabilities g) Compute the relief that is available for
(The use of such exemptions and reliefs is trade debts that are bad.[2]
implicit within all of the above sections 1 to 4
of part C of the syllabus, concerning corporate Excluded topics
income tax)
 Major Exporter Scheme /
D GOODS AND SERVICES TAX Import GST Deferment Scheme

1. The scope of goods and services tax (GST)  Partial exemption

a) Describe the scope of GST.[2]  Second hand goods scheme

b) List the principal zero-rated and exempt  Cash accounting scheme

supplies.[1]
 International arrangements and reliefs
2. The GST compliance requirements

a) Recognise the circumstances in which a person

must register for GST.[2]

b) Explain the advantages of voluntary GST

registration.[2]

c) List the information that must be given on a

GST invoice.[1]

d) Explain how and when a person can deregister

for GST.[1]

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 READING LIST

Income Tax Act Cap 134 - 2004 Ed.

Singapore Master Tax Guide - CCH Asia Ltd

Singapore Tax Workbook - CCH Asia Ltd

IRAS e-Tax Guide – www.iras.gov.sg

IRAS Annual Report

SUMMARY OF CHANGES TO F6 (SGP)

ACCA periodically reviews it qualification syllabuses so

that they fully meet the needs of stakeholders such as
employers, students, regulatory and advisory bodies and
learning providers.

The main areas that have been amended or clarified in the

syllabus are shown in Table 1 below:

Table 1 – Amendments to F6 (SGP)

Section and subject area Syllabus content

B 6 The use of exemptions or reliefs in deferring and Previous B6(b) deleted as transfer of deductions
minimising income tax liabilities between spouses has been phased out.

Previous B6(c) renumbered as B6(b).

C2. Profits chargeable to corporate income tax Reference to 'PIC bonus' from item C2(o) deleted as
this has been phased out.

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