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6.1. Main Rules Governing the Determination of Taxable Income

Taxable income of enterprises in Singapore is defined as total income arising in, derived from, or received in Singapore from any trade, profession, or business, less any non-taxable income, tax-exempt income, deductions, and losses and allowances carried forward from previous years that are in connection with the Singapore assessable income.

COVID-19 Emergency Measures

In response to the COVID-19 pandemic, the Ministry of Law of Singapore has introduced a Simplified Debt Restructuring Programme (SDRP) to assist micro and small companies (i.e., companies with an annual revenue of less than SGD 1 million and SGD 10 million respectively) that meet certain eligibility criteria to restructure their debts and rehabilitate their businesses. The debts including trade debts and loans forgiven under the SDRP will be regarded as capital in nature and hence will not be subject to income tax.