Singapore Ruling on Tax Treatment of Loan Waivers

The Inland Revenue Authority of Singapore has published Advance Ruling Summary No. 15/2026, which addresses whether the waiver of a loan by a lender is a capital transaction not subject to tax.

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Advance Ruling Summary No. 15/2026

1. Subject:

a. Whether the intended waiver of loan by Company A ("Lender") is a capital transaction and hence, any gains arising therefrom is not subject to tax under the provisions of the Income Tax Act 1947 ("ITA").

2. Relevant background and facts:

a.…