What is a Tax Reclaim Form?

A Tax Reclaim Form is a form that is issued by a tax treaty partner of the Double Taxation Agreement (DTA) signed between the Singapore government with a number of other countries.

What is the Tax Reclaim Form for?

The purpose of this form is for companies which are considered tax residents in Singapore to reclaim tax imposed on income earned in the country of the treaty partner. Treaty partners may have slightly varying procedures.

Some only need companies to submit the Certificate of Residence (COR) to prove that they are Singapore tax residents. Some may also require submission of the Tax Reclaim Form, especially for DTAs with Limitation of Relief provisions where the tax has to be remitted.

The DTA offers certain benefits. They include tax breaks such as tax exemptions and lower withholding tax rates to COR holders on income derived from treaty partners.

The Tax Reclaim Form may require certification by the Inland Revenue Authority of Singapore (as a Singapore Competent Authority), that certain conditions, such as Singapore tax residency status, are met before it can be submitted to the foreign tax authority for claiming treaty benefits.

Certification of Tax Reclaim Form by IRAS

After the form is completed, the original signed form must be sent to the Inland Revenue Authority of Singapore (IRAS) at the following address:

Inland Revenue Authority of Singapore
55 Newton Road
Revenue House
Singapore 307987

If the form is incomplete, IRAS will not be able to certify it and the company is required to re-submit a properly completed form. What constitutes incomplete forms:

• not signed by authorised persons
• forms with missing information
• back-dated or posted-dated forms

The date indicated on the form should be the current date. 

Expected Receipt of the Certified Tax Reclaim Form

It may take one month for IRAS to process it from the date of receipt. However, most cases are completed in two weeks.

When the form has been processed, a cover letter with the certified form will be sent to the company’s registered address. A copy of the letter can be viewed in the View Corporate Tax Notices section of the myTax Portal.

Indonesia’s Tax Reclaim Form (Form DGT)

For submissions to the Indonesia Tax Authority, companies must submit both the COR with a completed DGT Form to claim treaty benefits under the Singapore-Indonesia DTA.

IRAS’ certification on the DGT Form is not necessary. The DGT Form is valid for the calendar year as stated in the COR.

For example, if the COR certifies that a company is a Singapore tax resident for the calendar year 2020, the DGT Form will be valid for all payments received or receivable from Indonesia in the calendar year of 2020, i.e., from January 2020 to December 2020.

If the income straddles two calendar years, the company will need to apply for two CORs for the relevant calendar years.

Wrap Up

Only submissions to the Indonesia Tax Authority require both the COR and Tax Reclaim Form. The procedures vary for other tax treaty partners. Navigating all the intricacies of tax requirements and processes for two countries at the same time can be daunting for affected businesses, especially if they lack the manpower dedicated to this area of administrative work. That is why many companies in Singapore, both local and foreign with international business dealings, have sought the corporate tax services from external sources such as Intime Accounting.

More related articles on corporate tax:

• 6 Reasons Companies Should Use Corporate Tax Services
• 2020 Guide on How to Reduce Corporate Tax in Singapore
• Tips for Corporate Tax Filing for YA2020
• Types of Taxes to be Aware of in Singapore
• What is Withholding Tax in Singapore? 
• About Tax Residency of a Company in Singapore
• Tax Residency Certificate in Singapore – Why Apply and How
• Stamp Duty for Variable Capital Companies in Singapore
• How to Manage Tax for a Dormant Company