Start with foreign tax actually suffered
The first question is whether foreign tax has been suffered on the income. A negative answer leads directly to no foreign tax credit (FTC). If the answer is yes, the chart then requires both Singapore tax residence of the company and that the income be subject to tax in Singapore. Failure of either condition also leads to no FTC. This is a company eligibility chart, not a calculation of the amount of credit.
Check whether a double-taxation agreement applies
When the residence and Singapore-tax conditions are met, identify whether the foreign tax jurisdiction has a double-taxation agreement (DTA) with Singapore. If there is no DTA, the chart directs the company to consider unilateral tax credit. It does not say that absence of a treaty automatically means no relief, or that unilateral credit is automatically granted. That route has its own requirements.
Income covered by the treaty
If a DTA exists, ask whether the income falls within the relevant treaty provisions. A yes answer leads to FTC being granted subject to the time limit for claiming it. The diagram does not state the numerical deadline or credit ceiling; these must be obtained from the applicable claim rules. Treaty existence and treaty coverage of this particular income are separate checks.
Income outside the treaty provisions
A no answer to treaty coverage leads to the foreign-refund question. If the company has successfully applied for a refund from the foreign tax authority, the tax is refunded and no FTC claim should be made. If not, the chart directs consideration of domestic remedies and/or the Mutual Agreement Process under the relevant DTA. This branch is specifically connected to income outside the relevant treaty provisions; it is not shown as an additional universal step after the covered-income approval branch.
Official source
This article independently explains the substantive contents of the official PDF, including the relevant conditions, procedures and annexes. The linked document remains the authoritative source for its original wording, and later changes should be checked separately.
Read the official PDF ↗