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Free Singapore CA Qualification (Foundation) Singapore Taxation (TXF) Practice Questions

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Sample Practice Questions

Try these 10 sample questions from the Singapore CA Qualification (Foundation) Singapore Taxation (TXF) practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

  1. 1A company carries on a business in Singapore and earns profits from that business. Which connection brings those profits within the Singapore income-tax charge, subject to applicable exemptions?

    1. A.They are accrued in or derived from Singapore.Correct answer: A
    2. B.They are earned by shareholders who are citizens.
    3. C.They are recorded in accounts kept in Singapore.
    4. D.They are paid into an account denominated in SGD.

    Explanation: IRAS states: "For example, the income from a business carried on in Singapore is regarded as accrued in or derived from Singapore." The source of the business profits is the relevant connection. Shareholder citizenship, bookkeeping location and currency do not establish that source.

    Reference: IRAS Taxable and Non-Taxable Income — How to Determine Whether Your Income is Taxable — What Is Taxable

  2. 2An individual receives a payout on a personal insurance policy. Under IRAS's general classification of such payouts, what is the nature of the receipt?

    1. A.Employment remuneration
    2. B.Income from a trading activity
    3. C.A capital receiptCorrect answer: C
    4. D.Interest from a personal loan

    Explanation: IRAS states: "Payouts from insurance policies as they are capital receipts." A personal insurance payout in this classification is capital, rather than remuneration, trading income or loan interest.

    Reference: IRAS Gains from Sale of Property, Shares and Financial Instruments — Non-taxable gains from sale of property, shares and financial instruments

  3. 3Before personal reliefs, how much assessable income arises from S$92,000 salary after S$2,000 allowable employment expenses and a S$5,000 approved donation deduction? The taxpayer also qualifies for S$12,000 personal reliefs.

    1. A.S$73,000
    2. B.S$85,000Correct answer: B
    3. C.S$90,000
    4. D.S$95,000

    Explanation: IRAS states: "This is your total income after deducting allowable expenses and approved donations." Assessable income = S$92,000 − S$2,000 − S$5,000 = S$85,000. S$73,000 also deducts personal reliefs; S$90,000 omits donations; S$95,000 adds rather than deducts the donation amount. The S$5,000 is the already-allowed deduction, not a cash donation to multiply again.

    Reference: IRAS Understanding My Tax Assessment — General income tax glossary — Assessable income

  4. 4A company receives a grant whose sole purpose is to defray its operating wage costs. No specific exemption applies. What is the grant's general income-tax character?

    1. A.Taxable because it supplements revenue expenditureCorrect answer: A
    2. B.Non-taxable because the payer is a government body
    3. C.Non-taxable because the company did not sell goods for it
    4. D.Taxable only if it is used to buy a capital asset

    Explanation: IRAS states: "Generally, a grant/ payout is taxable if it is given to supplement trading receipts or to defray operating expenses of the company (i.e. grant/ payout is revenue in nature)." The grant defrays operating wages and is revenue in nature. Government origin or absence of a sale does not make it capital; an asset-acquisition purpose would be a different circumstance.

    Reference: IRAS Taxable and Non-Taxable Income — Tax Treatment of Grants/ Payouts Commonly Received by Companies

  5. 5A company satisfies the shareholding test but permanently ceases the trade for which its unutilised capital allowances arose. It starts an unrelated trade. Can it deduct those allowances against future income under the ordinary carry-forward rule?

    1. A.Yes, because the company's legal identity continues.
    2. B.Yes, because any new trade replaces the original trade.
    3. C.No, because the same-trade or business condition is not met.Correct answer: C
    4. D.No, because capital allowances can never be carried forward.

    Explanation: IRAS states: "Unutilised capital allowances can only be deducted against future income if the company continues to carry on the same trade or business for which capital allowances are given." The shareholding condition alone is insufficient for these allowances. The original trade has ceased, so the additional same-business condition fails; this is not a general ban on carry-forward.

    Reference: IRAS Unutilised Capital Allowances, Trade Losses and Donations — Carry-Forward of Unutilised Items — Qualifying Conditions

  6. 6A GST-registered business has S$9,000 output tax and S$3,800 allowable input tax for an accounting period, with no other adjustments. What is its net GST position?

    1. A.S$5,200 payableCorrect answer: A
    2. B.S$5,200 refundable
    3. C.S$12,800 payable
    4. D.S$9,000 payable

    Explanation: IRAS states: "The difference between its output tax collected and its input tax paid is its net GST, which will either be payable to IRAS or refundable by IRAS." Net GST = S$9,000 − S$3,800 = S$5,200 payable. A refund reverses the sign; S$12,800 adds the taxes and S$9,000 ignores allowable input tax.

    Reference: IRAS Goods and Services Tax: What It Is and How It Works — How GST works

  7. 7An employee's only income for YA 2026 is a salary earned throughout calendar year 2025. What is the basis period for that assessment?

    1. A.1 January–31 December 2024
    2. B.1 April 2025–31 March 2026
    3. C.1 January–31 December 2025Correct answer: C
    4. D.1 January–31 December 2026

    Explanation: IRAS states: "The basis period for YA 2026 is 1 Jan 2025 to 31 Dec 2025." For this calendar-year employment income, the preceding calendar year is the relevant period, rather than the assessment year or a fiscal year ending in it.

    Reference: IRAS Understanding My Tax Assessment — General income tax glossary — Basis period

  8. 8An individual sells shares held as personal investments and makes a gain. The transactions do not form a trading business. How does IRAS generally treat that gain?

    1. A.Include the net gain in trade income for the year of sale.
    2. B.Include the full sale proceeds in investment income.
    3. C.Include the gain as a dividend from the company whose shares were sold.
    4. D.Exclude the personal investment gain from taxable income.Correct answer: D

    Explanation: IRAS states: "Profits or losses derived from the buying and selling of shares or other financial instruments (including digital tokens) are generally viewed as personal investments." On the stated non-trading facts, the investment gain is generally excluded from taxable income. Neither the gain nor the full proceeds becomes trade income merely because a sale occurred, and sale consideration is not a dividend distribution by the company.

    Reference: IRAS Gains from Sale of Property, Shares and Financial Instruments — Non-taxable gains from sale of property, shares and financial instruments

  9. 9For YA 2026, a resident individual has chargeable income of S$65,000. What is gross income tax before any rebate or credit?

    1. A.S$4,550
    2. B.S$1,750
    3. C.S$2,300Correct answer: C
    4. D.S$3,350

    Explanation: IRAS states: "First $40,000 Next $40,000 - 7 550 2,800" Tax = S$550 on the first S$40,000 + (S$65,000 − S$40,000) × 7% = S$550 + S$1,750 = S$2,300. S$4,550 applies 7% to all income; S$1,750 omits base tax; S$3,350 is tax at S$80,000. No rounding is required.

    Reference: IRAS Individual Income Tax Rates — Resident tax rates — From YA 2024 onwards, S$40,000–S$80,000 band

  10. 10A computer dealer takes an item from resale stock for permanent office use. Its cost is S$1,200 and open-market value on appropriation is S$1,700. What revenue-account profit arises from that transfer?

    1. A.S$0
    2. B.S$1,200
    3. C.S$500Correct answer: C
    4. D.S$1,700

    Explanation: IRAS states: "The resulting profit or loss which is computed based on the open market value of the trading stock as at the date of transfer is on revenue account and therefore is taxable or deductible." The deemed sale value is S$1,700; less stock cost S$1,200 gives S$500 taxable revenue profit. S$0 ignores appropriation; S$1,200 is cost and S$1,700 is deemed revenue before cost, not profit.

    Reference: IRAS Taxable and Non-Taxable Income — FAQs — transfer of trading stock for office use

Exam Review

About Singapore CA Qualification (Foundation) Singapore Taxation (TXF)

Singapore CA Qualification (Foundation) Singapore Taxation (TXF) · SG

Key exam facts

Provider
The Institute of Singapore Chartered Accountants (ISCA) administers SCAQ. ACRA is responsible for SCAQ's development; Cirrus provides the e-examination platform and Proctorio remote proctoring.
Format
Restricted open-book, remotely proctored e-examination using multiple-choice questions, including standalone and short case-based questions.
Exam questions
Total questions: 50.
Time limit
150 minutes (2 hours 30 minutes) of examination time. Published TXF sitting: 4 December 2026, 14:00–16:30 Singapore time (GMT+8).
Passing score
At least 50% of the available examination marks is required to pass the module.
Exam fee
Per module: S$408.75 for non-students, S$327.00 for students, and S$218.00 for a re-sit; inclusive of GST and non-refundable. Student eligibility is based on formal tertiary enrolment at examination enrolment. Tuition is excluded. Separate application/candidature fees may apply; published fees are subject to change.

Topics covered

  • Introduction to Income Tax Jurisdiction (7%)

    • The Scope of Income Tax
    • Explain the territorial basis of taxation
    • Explain the term ‘basis period’ and determine the basis period in a given situation
    • Explain the term ‘year of assessment’ and determine the Year of Assessment in a given situation
    • Income Tax Administration
    • Explain the statutory obligations imposed in a given situation, including any time limits for action, and advise on the implications of non-compliance, including: - Recognise the time limits for the filing of tax returns, including estimates of chargeable income (ECI) and the making of claims; and - Recognise the due dates for the payment of tax, including instalment arrangements and tax assessed on estimated chargeable income.
    • List the information and records that taxpayers need to retain for tax purposes.
    • State the circumstances in which the Comptroller can enquire into the tax affairs of taxpayers.
    • Explain the procedures for dealing with appeals and disputes.
    • Understand the roles and responsibilities of a Tax Agent and how they facilitate the administration of the Singapore Tax system.
    • Distinguish the difference between tax avoidance and tax evasion.

  • Sources of Income (27%)

    • Trading Income
    • Distinguish between income receipts and capital receipts.
    • Apply the badges of trade to determine if income is trading in nature.
    • Employment Income
    • Recognise the factors that determine whether an engagement is treated as employment or self-employment and the tax implications thereof.
    • Explain the tax treatment of employment benefits assessable, including share options, share awards, retrenchment or retirement benefits, and excess Central Provident Fund (CPF) contributions made by an employer.
    • Income from Self Employment
    • Recognise the basis of assessment of income from self- employment.
    • Property and Investment Income
    • Compute the net investment income, in properties and equities, placement of funds on deposit with banks, and loans granted both within and outside Singapore.
    • Distinguish the difference between a business carrying on a trade and one held for pure investment intent.
    • Exempt Income
    • Identify and describe the types of exempt income under S13.
    • Foreign sourced income
    • Distinguish between locally sourced income and foreign sourced income.
    • Recognise the tax treatment of foreign sourced income received or deemed received in Singapore and the implications of applying for a Certificate of Residency.
    • Tax Residency
    • Explain how the tax residency of an individual is determined and its relevance to income tax.
    • Demonstrate the application of the 3-year and 2-year concessional rules for determining tax residence
    • Determine the basis period for assessing corporate profits, including the case of a change of financial reporting date.
    • Describe how the tax residence of a company is determined.

  • Personal Income Tax Liabilities (13%)

    • Computation of Taxable Income and Income Tax Liability for Resident Individuals
    • Compute the assessable income, chargeable income, and the amount of income tax
    • Identify and calculate the amount of personal reliefs available to individuals and recognise the reliefs and rebates claimable, such as: - Earned income; - Spouse; - Child/ handicapped child; - Handicapped sibling; - Life Insurance - Parent/ handicapped parent; - Grandparent caregiver; - Course fees; - Foreign maid levy - National servicemen (NSman); - Parenthood tax rebate; - Contributions to the Central Provident Fund (CPF); - Supplementary Retirement Scheme (SRS); - CPF voluntary contributions; and - CPF Cash top-up
    • Computation of Taxable Income and Income Tax Liability for Non-Residents
    • Determine the income deemed sourced in Singapore under S12(6), S12(6A), S12(7), and S12(7A) of the SITA.
    • Explain the withholding tax implications arising from payments made to non-residents.
    • Compute the tax liability of a non- resident individual deriving employment income under S40B.

  • Taxable Income, Deductions and Capital Allowances (20%)

    • Profits Chargeable to Corporate Income Tax
    • Recognise the tax treatment of trade/business income or income from other source and distinguish between income receipts and capital gains.
    • Compute income arising from the business of the making of investments.
    • Tax Deductions
    • Determine all allowable deductions and non-allowable under S14 and S15 of the SITA.
    • Recognise the relief that can be obtained from special deductions and/ or double deductions, including deduction for pre- commencement expenses (i.e. S14B, S14C, 14F, 14N, 14R, S14V, and S14W).
    • Recognise the tax relief for donations and the carry forward of unabsorbed donations.
    • Capital Allowances
    • Define and determine the qualifying expenditure of 'plant and machinery' for capital allowances purposes.
    • Determine the capital allowance claims available under S19 and S19A of the SITA.
    • Compute balancing allowances and balancing charges, including the application of S21 and S24 of the SITA.
    • Describe how different financial assets and liabilities should be treated for income tax purposes (including SFRS109 tax treatments/ adjustments).
    • Land Intensification Allowance (LIA) and Industrial Building Allowance (IBA)
    • Compute the initial allowance (IA) and the annual allowance (AA) under the Land Intensification Allowance (LIA) for qualifying business.
    • Compute the annual allowance for existing qualifying building under the transitional rules of the industrial Building Allowance (IBA).
    • Compute the balancing adjustment on the disposal of an industrial building

  • Corporate Income Tax Liabilities (20%)

    • Relief for Capital Allowances
    • Demonstrate how capital allowances can be carried forward and carried back and determine the order of set-off
    • Identify the limits for the set-off and carry forward of capital allowances in relation to an entity in the business of the making of investments under S10E of the SITA.
    • Relief for Trading Losses
    • Demonstrate how trading losses can be carried forward and carried back or forfeited.
    • Demonstrate how trading losses can be claimed against total income and the order of set-off of current and previous years' trading losses.
    • Identify the limits for the set-off and carry forward of losses in relation to an entity in the business of the making of investments under S10E of the SITA.
    • Recognise the order of set-off of capital allowances, losses, and donations of the current and previous years of assessment.
    • Computation of the Corporate Income Tax Liability
    • Compute the corporate income tax liability for a company with different income sources, including investment income.
    • Taxation of Corporate Groups
    • Define members of the same group and recognise the effect of being a member of the same group for corporate income tax purposes.
    • Outline and apply the group relief provisions.
    • Outline the basic principles contained in the transfer pricing guidelines, including different commonly used methodologies for setting and defending transfer prices, especially in cross-border transfers.
    • Taxation of General Partnerships
    • Describe the legal standing of a general partnership and how the income of a general partnership is determined.
    • Recognise the tax treatment of the income and allowable business expenses of a general partnership.
    • Compute divisible profit and adjusted profit of a general partnership.
    • Allocate the adjusted profit and capital allowances to each partner, including when there is a change in the profit sharing profit or upon the dissolution of a partnership

  • Goods and Services Tax (13%)

    • The Scope of Goods and Services Tax (GST)
    • Explain the requirements for a GST registered business and how GST is accounted for and administered.
    • Describe the scope of GST including, transactions which are out of scope e.g. third-country sale and transfer of going concern (TOGC).
    • Identify and explain the different types of supplies e.g. standard- rated, zero-rated, and exempt supplies.
    • Explain the GST implications of imports and exports.
    • The GST Registration Requirements
    • Describe what are the circumstances and implications for an entity to register for GST
    • Explain the circumstances in which pre-incorporation and pre- registration input GST can be recovered
    • Outline the GST implications of group registration and divisional registration
    • Explain how and when a taxpayer can de-register for GST and the GST implications upon deregistration.
    • Recognise the GST implications where there is a change in business constitution and ownership.
    • The Computation of GST Liabilities
    • Recognise the tax point under the time of supply rules when goods or services are supplied.
    • Apply the principles regarding the valuation of supplies, including imports
    • Recognise the circumstances in which input GST is claimable and non-claimable (such as blocked input tax).
    • Explain the GST implications of partial exemption for partially exempt business, including de- Minimis rule.
    • Compute the available GST reliefs (e.g. trade debts that are bad).
    • Recognise the GST treatment for fringe benefits and for reimbursements and disbursements.
    • Prepare a GST return.

How to prepare

Work through the topics, read the explanation after each answer, and revisit the areas where you miss questions. Use the official outline and reference materials below to guide your study.

These independent practice questions are not actual exam items and do not guarantee a passing result.

Frequently asked questions

What is the exam format?

Restricted open-book, remotely proctored e-examination using multiple-choice questions, including standalone and short case-based questions.

How many questions are on the exam?

Total questions: 50.

How long is the exam?

150 minutes (2 hours 30 minutes) of examination time. Published TXF sitting: 4 December 2026, 14:00–16:30 Singapore time (GMT+8).

What is the passing score?

At least 50% of the available examination marks is required to pass the module.

How much does the exam cost?

Per module: S$408.75 for non-students, S$327.00 for students, and S$218.00 for a re-sit; inclusive of GST and non-refundable. Student eligibility is based on formal tertiary enrolment at examination enrolment. Tuition is excluded. Separate application/candidature fees may apply; published fees are subject to change.

Official sources and references

Confirm current exam arrangements with the exam provider.