# legal_provisions

document_id: ita-1947
provision_ref: s34D
chapter: PART 7 - ASCERTAINMENT OF CERTAIN INCOME
section: 34D
title: Transactions not at arm’s length
content:
34D. —(1) Subsection (1A) applies where — ( a ) 2 persons are related parties; ( b ) conditions are made or imposed between them in their commercial or financial relations (called in this section actual commercial or financial relations) which differ from conditions which would be made or imposed if they were not related parties and dealing independently with one another in comparable circumstances (called in this section arm’s length conditions); and ( c ) had the arm’s length conditions been made or imposed — (i) the amount of the income of one of those persons for a year of assessment that accrued in or is derived from Singapore, or is received in Singapore from outside Singapore, would be greater; (ii) the amount of any deduction that may be allowed to one of those persons for a year of assessment would be less; or (iii) the amount of any loss of one of those persons for a year of assessment would be less. [39/2017] (1A) The Comptroller may make one or more of the following adjustments in that case, as appropriate: ( a ) increase the amount of the income of the person mentioned in subsection (1)( c )(i) for the year of assessment; ( b ) reduce the amount of the deduction that may be allowed to the person mentioned in subsection (1)( c )(ii) for the year of assessment; ( c ) reduce the amount of the loss of the person mentioned in subsection (1)( c )(iii) for the year of assessment. [39/2017] (1B) The identification of the arm’s length conditions in subsection (1)( b ) must be carried out — ( a ) on the basis of the actual commercial or financial relations between the 2 persons; and ( b ) by taking into account both the form and substance of those relations, but disregarding the form of those relations to the extent it is inconsistent with their substance. [39/2017] (1C) Despite subsection (1B) — ( a ) if persons who were not related parties would in comparable circumstances enter into substantially different commercial or financial relations than the actual commercial or financial relations, then the identification of the arm’s length conditions must be carried out on the basis of the firstmentioned relations; and ( b ) if persons who were not related parties would in comparable circumstances not enter into commercial or financial relations, then the identification of the arm’s length conditions must be carried out on the basis of the absence of commercial or financial relations. [39/2017] (1D) The amount of income that is increased under subsection (1A)( a ) is treated as accruing in or derived from Singapore or received in Singapore from outside Singapore, as the case may be. [39/2017] (1E) The amount of loss that is reduced under subsection (1A)( c ) is treated as not having been incurred. [39/2017] (2) Where a person carries on business through a permanent establishment, this section applies as if the person and the permanent establishment are 2 separate and distinct persons. (2A) Nothing in this section prevents the applicability of subsection (1) to a case, or the Comptroller’s decision under subsection (1A) on a case, from being questioned in an appeal against an assessment in accordance with Part 18. [39/2017] (3) [ Deleted by Act 33 of 2022 wef 04/11/2022 ]


document_id: ita-1947
provision_ref: s34E
chapter: PART 7 - ASCERTAINMENT OF CERTAIN INCOME
section: 34E
title: Surcharge on transfer pricing adjustments
content:
34E. —(1) Where the Comptroller, in relation to the year of assessment 2019 or any subsequent year of assessment — ( a ) increases the amount of the income of a person under section 34D(1A)( a ); ( b ) reduces the amount of any deduction allowed to a person under section 34D(1A)( b ); or ( c ) reduces the amount of any loss of a person under section 34D(1A)( c ), a surcharge equal to 5% of the amount of the increase or reduction (as the case may be) is recoverable by the Comptroller from the person as a debt due to the Government. [39/2017] (2) Despite any objection to or an appeal lodged against an assessment made pursuant to any adjustment under section 34D(1A), the surcharge must be paid — ( a ) within one month after the date a written notice of the surcharge is served in accordance with section 8(1) on the person imposed with the surcharge; and ( b ) in the manner stated in the written notice. [27/2021] (3) The Comptroller may, in the Comptroller’s discretion, and subject to such terms and conditions (including the imposition of interest) as the Comptroller may impose, extend the time within which payment is to be made. [39/2017] (4) Sections 86(1) to (6), 87(1) and (2), 89, 90 and 91 apply to the collection and recovery of a surcharge and any interest imposed under subsection (3), as they apply to the collection and recovery of tax. [39/2017] (5) The Comptroller may, for any good cause, remit wholly or in part any surcharge payable under this section. [39/2017] (6) If, upon an objection under section 76 or an appeal under Part 18, an assessment made pursuant to an adjustment under section 34D(1A) is varied or annulled, then the surcharge is correspondingly increased, reduced or annulled (as the case may be), and — ( a ) if the surcharge is increased, subsections (1) to (5) apply to the increased amount of the surcharge as they apply to the surcharge; or ( b ) if the surcharge is reduced or annulled and it has already been paid to the Comptroller, the amount of the reduction or the entire amount (including any interest paid on the amount) must be refunded. [39/2017]


document_id: ita-1947
provision_ref: s34F
chapter: PART 7 - ASCERTAINMENT OF CERTAIN INCOME
section: 34F
title: Transfer pricing documentation
content:
34F. —(1) This section applies to the basis period for the year of assessment 2019 and every subsequent year of assessment. [39/2017] (2) This section applies to a company, firm or trust — ( a ) if the gross revenue of the company, firm or trust derived from its trade or business for the basis period concerned is more than $10 million; or ( b ) if documentation under subsection (3) is required to be prepared for a transaction undertaken by the company, the firm, or the trustee of the trust on its behalf, in the basis period immediately before the basis period concerned. [39/2017] (3) Unless exempt by rules made under section 7, each of the following, namely: ( a ) the company; ( b ) the person making a return of the income of the firm; ( c ) the trustee of the trust, must prepare documentation (called in this section transfer pricing documentation) that complies with subsection (5) for each transaction undertaken by the company, the firm or the trustee on behalf of the trust (as the case may be), with a related party in the basis period concerned. [39/2017] (4) In subsection (3)( b ), the person making a return of the income of a firm is, in the case of a partnership, the person responsible for doing so under section 71. [39/2017] (5) The transfer pricing documentation — ( a ) must be prepared no later than the time for the making of the return of the income of the company, the firm or the trustee in relation to the trust for the year of assessment; ( b ) must contain such details as may be prescribed by rules made under section 7 of the commercial or financial relations of the parties as respects the transaction, the conditions made or imposed between them as respects the transaction, as well as an explanation as to whether those conditions are arm’s length conditions within the meaning of section 34D(1)( b ); and ( c ) must comply with all other requirements as to their form and content as may be prescribed by rules made under section 7. [39/2017] (6) The person in subsection (3)( a ), ( b ) or ( c ) must retain in safe custody transfer pricing documentation prepared by the person for each transaction, for a period of at least 5 years from the end of the basis period in which the transaction took place. [39/2017] (7) The Comptroller may, by written notice served on a person in subsection (3)( a ), ( b ) or ( c ) personally or by registered post, require the person to furnish to the Comptroller a copy of any transfer pricing documentation prepared by the person, and the person must comply with the requirement within 30 days starting from the date the notice is served on the person. [39/2017] (8) A person who — ( a ) without reasonable excuse, fails to comply with subsection (3), (6) or (7); or ( b ) in purported compliance with subsection (7), provides to the Comptroller any documentation that the person knows to be false or misleading in a material particular, shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000. [39/2017] (9) The Comptroller may compound any offence under subsection (8). [39/2017] (10) In this section, “firm” includes a partnership. [39/2017] [Act 33 of 2022 wef 04/11/2022]


document_id: ita-1947
provision_ref: s34G
chapter: PART 7 - ASCERTAINMENT OF CERTAIN INCOME
section: 34G
title: Modification of provisions for companies redomiciled in Singapore
content:
34G. —(1) This section applies to a body corporate incorporated outside Singapore that is registered as a company limited by shares under Part 10A of the Companies Act 1967 (called in this section a redomiciled company). [39/2017; 45/2018] Interpretation (2) In this section — “FRS 109” and “SFRS(I) 9” have the meanings given by section 34AA(15); “registration” means registration under section 359(1) of the Companies Act 1967; “registration date”, in relation to a redomiciled company, means the date of its registration specified in the notice of transfer of registration issued to it under section 359(3) of the Companies Act 1967. [39/2017; 32/2019] Deductions for bad debts and impairment losses for debts (3) Despite sections 10(1), 14(1)( d ), 34AA(1) and 34AAA(1), where a redomiciled company has any debt owed to it in respect of a trade or business outside Singapore, that was incurred before its registration date and, at any time on or after that date, the debt is written off as bad or impairment loss is provided for that debt — ( a ) no deduction is allowed for the debt or any provision made for it; and ( b ) any amount recovered from the debt, or any reversal of the impairment loss, is not chargeable to tax. [39/2017; 45/2018] [Act 33 of 2022 wef 04/11/2022] Deductions for impairment losses (4) Despite sections 10(1), 34AA(1) and 34AAA(1), where a redomiciled company incurred before its registration date any impairment loss from any financial asset on revenue account acquired for the purpose of any trade or business outside Singapore, any amount of the loss that is reversed after that date is not chargeable to tax. [39/2017; 45/2018] [Act 33 of 2022 wef 04/11/2022] (5) Where a redomiciled company incurs on or after its registration date any impairment loss, in the course of carrying on a trade or business in Singapore, from any financial asset on revenue account that was acquired by the company for the purpose of any trade or business outside Singapore before that date — ( a ) the company is allowed a deduction for that loss to the extent that it becomes credit‑impaired within the meaning of FRS 109 or SFRS(I) 9, as the case may be; and ( b ) any amount of that loss that is subsequently reversed is chargeable to tax to the extent of the deduction allowed under paragraph ( a ). [39/2017; 45/2018; 32/2019] (6) Subsections (4) and (5) do not apply to an impairment loss from a debt to which subsection (3) applies. [39/2017] Deductions for expenses (7) No deduction is allowed under section 14 for any expense incurred by a redomiciled company before its registration date for the purpose of any trade or business outside Singapore and for which it has been allowed or given any deduction or relief under any law of a country outside Singapore that levies tax of a similar character to income tax (by whatever name called). [39/2017; 45/2018] Deductions for trading stocks (8) For the purposes of determining the amount of deduction to be allowed to a redomiciled company under any provision of this Act for any trading stock that it acquired before its registration date for the purpose of any trade or business outside Singapore, the value of the trading stock is the lower of the following: ( a ) the cost of the trading stock to the company; ( b ) the net realisable value of the trading stock on that date. [39/2017; 45/2018] Deductions under sections 14A, 14C, 14EA, 14N, 14P and 14R (9) Despite anything in sections 14A, 14C, 14EA, 14N, 14P and 14R, a redomiciled company that has never, at any time before its registration date, carried on any trade or business in Singapore, may only make a claim for a deduction under any of those sections for any cost, payment or expenditure incurred or made before its registration date, if — ( a ) such cost, payment or expenditure is incurred or made for the purpose of a trade or business in Singapore; and ( b ) the company has not carried on the same trade or business outside Singapore at any time before its registration date. [45/2018] [Act 30 of 2023 wef 30/10/2023] (10) The deduction under subsection (9) may only be allowed for the year of assessment relating to the basis period in which the trade or business is commenced in Singapore. [39/2017] Allowances for machinery or plant under section 19 (11) Where a redomiciled company — ( a ) incurred capital expenditure before its registration date to acquire any machinery or plant for the purpose of any trade or business outside Singapore; and ( b ) uses the machinery or plant for the purposes of a trade or business in Singapore on or after that date, then an initial allowance may be made to the company for that capital expenditure, and an annual allowance may be made to the company for the depreciation by wear and tear of that machinery or plant, in accordance with section 19 as modified under subsection (12). [39/2017; 45/2018] (12) Section 19 applies in relation to the making of initial and annual allowances to a redomiciled company under subsection (11), and to initial and annual allowances so made, subject to the following modifications: ( a ) the allowances may only be made under that section if the trade or business is carried on in Singapore on or after its registration date; ( b ) the capital expenditure is treated as having been incurred for the provisioning of the machinery or equipment for that trade or business; ( c ) except as provided under paragraph ( d ), the allowances under that section may only be made in respect of the lower of the following: (i) the net book value of the machinery or plant as of the registration date; (ii) the market value of the machinery or plant as of that date, and that lower amount is treated as the capital expenditure incurred in acquiring that machinery or plant, and the original cost of the machinery or plant; ( d ) for the purposes of making the initial allowance under section 19(1) to the company for any machinery or plant that is acquired under a hire‑purchase agreement, the reference in that provision to the capital expenditure is a reference to an amount computed by the formula where — (i) A is — (A) in the first year of claim for that allowance, the sum of all deposits and instalment payments (excluding finance charges) made up to the end of the basis period in which the date of commencement of the trade or business falls; and (B) in each subsequent year of claim for that allowance, the sum of all instalment payments (excluding finance charges) made in the basis period to which the claim relates; (ii) B is the sum of all deposits and instalment payments (excluding any finance charges) under the hire‑purchase agreement; and (iii) C is the lower amount of the machinery or plant mentioned in paragraph ( c ); ( e ) for the purposes of making the initial allowance to the company, the capital expenditure is treated as having been incurred by the company on the first day on which it carries on that trade or business; ( f ) subsections (1B), (2)( b ), (3), (4), (5) and (5B) of section 19 do not apply; ( g ) such other modifications as may be prescribed. [39/2017] (13) Except as provided under subsection (11), no allowance may be made under section 19 to a redomiciled company to which subsection (11)( a ) and ( b ) applies, in relation to any capital expenditure mentioned in subsection (11)( a ). [39/2017] Allowances for machinery, plant, etc., under section 19A (14) Where a redomiciled company — ( a ) incurred capital expenditure before its registration date to acquire any item mentioned in section 19A(1), (2), (3), (4), (5), (6), (7) or (8) or develop a website mentioned in section 19A(10), for the purpose of any trade or business outside Singapore; and ( b ) uses such item or website for the purposes of a trade or business in Singapore on or after that date, then an allowance may be made to the company, in lieu of the allowances under section 19 (as applied by subsection (11)), for the capital expenditure under section 19A(1), (2), (3), (4), (5), (6), (7), (8) or (10) (whichever is applicable), as modified under subsection (15). [39/2017; 45/2018] (15) Section 19A applies in relation to the making of an allowance under subsection (14), and to any allowance so made, subject to the following modifications: ( a ) the allowance may only be made under that section if the trade or business is carried on in Singapore on or after the registration date; ( b ) the capital expenditure is treated as having been incurred for the provision of the item or website for that trade or business; ( c ) the allowance may only be made in respect of the lower of the following: (i) the net book value of the item or website as of the registration date; (ii) the market value of the item or website as of that date, and that lower amount is treated as the capital expenditure incurred on the provision of the item or website for the trade or business, and the original cost of the item in section 19A(10C) (if applicable); ( d ) subsections (1B), (1C), (1D), (1E), (1F), (1G), (2A) to (2K), (9), (9A), (13A) and (16) to (18) of section 19A do not apply; ( e ) such other modifications as may be prescribed. [39/2017; 32/2019; 41/2020] (16) Except as provided under subsection (14), no allowance may be made under section 19A to a redomiciled company to which subsection (14)( a ) and ( b ) applies, in relation to any capital expenditure mentioned in subsection (14)( a ). [39/2017] Writing‑down allowances for intellectual property rights under section 19B (17) Where a redomiciled company — ( a ) incurred capital expenditure before its registration date to acquire any intellectual property rights for the purpose of any trade or business outside Singapore; and ( b ) uses those rights for the purpose of a trade or business in Singapore on or after that date, then writing‑down allowances may be made to the company for the capital expenditure, in accordance with section 19B as modified by subsection (18). [39/2017; 45/2018] (18) Section 19B applies in relation to the making of writing‑down allowances to a redomiciled company under subsection (17), and to writing‑down allowances so made, subject to the following modifications: ( a ) the allowances may only be made under that section if the trade or business is carried on in Singapore on or after the registration date; ( b ) the capital expenditure is treated as having been incurred for the acquisition of those intellectual property rights for use in that trade or business; ( c ) the allowances may only be made in respect of the lower of the following: (i) the acquisition cost of the intellectual property rights less accumulated amortisation and impairment losses as of the registration date; (ii) the open‑market price of the rights as of that date, and that lower amount is treated as the capital expenditure incurred in acquiring those rights; ( d ) subsections (1), (1A), (1AA)( b ), (1AC) to (1AH), (1B) to (1BC), (1C), (1D), (1E), (2B) to (2E), (8), (9), (10D) to (10K) and (12) of section 19B do not apply; [Act 30 of 2023 wef 30/10/2023] ( e ) the election under section 19B(1AB) must be made at the time of lodgment of the company’s return of income for the year of assessment relating to the later of the following: (i) the basis period in which the registration date falls; (ii) the basis period in which the date of commencement of the trade or business falls; ( f ) such other modifications as may be prescribed. [39/2017] (19) In subsection (18)( c ), “open‑market price”, in relation to intellectual property rights, has the meaning given by section 19B(10F), with the reference to the acquisition date of those rights substituted with a reference to the registration date of the company. [39/2017] (20) Except as provided under subsection (17), no writing‑down allowance may be made under section 19B to a redomiciled company to which subsection (17)( a ) and ( b ) applies in relation to any capital expenditure mentioned in subsection (17)( a ). [39/2017] Ascer


document_id: ita-1947
provision_ref: s34H
chapter: PART 7 - ASCERTAINMENT OF CERTAIN INCOME
section: 34H
title: Tax credits for approved redomiciled companies
content:
34H. —(1) This section applies where — ( a ) an approved redomiciled company has income (called in this section income A) that is chargeable to tax in one or more years of assessment beginning with the year of assessment for the basis period in which its registration date falls; and ( b ) the company’s place of incorporation levies on the company tax of a similar character to income tax (by whatever name called) on an estimate of income A (called in this section income B). [39/2017] (2) The approved redomiciled company must be allowed, in accordance with subsection (4), a tax credit against tax payable in respect of the part of income A that is derived or received in the basis period for each year of assessment specified by the Minister to the company at the time of its approval (called in this section a specified year of assessment). [39/2017] (3) The total amount of tax credits to be allowed to the approved redomiciled company for all of its specified years of assessment is an amount C that is computed by the formula (B ‑ B1) &#215; D, where — ( a ) B is the amount of income B; ( b ) B1 is the part of income B which is derived wholly from any agreement or arrangement entered into on or after the registration date, as well as any other income prescribed by regulations made under section 34G; and ( c ) D is the lower of the following: (i) the rate by which the part of income A derived or received in the basis period in which its registration date falls is chargeable to tax; (ii) the rate by which income B is chargeable to the tax described in subsection (1)( b ). [39/2017] (4) Where, throughout a basis period for a specified year of assessment, the approved redomiciled company — ( a ) is resident in Singapore; and ( b ) satisfies all of the conditions specified by the Minister to it at the time of its approval, then there is to be allowed, against the amount of tax chargeable on income E, a credit of an amount that is the lower of the following: ( c ) the amount of tax; ( d ) an amount computed by deducting from the amount C, the total amount of tax credits previously allowed under this section against the tax chargeable on the income of the company. [39/2017] (5) In subsection (4), a company’s income E for a year of assessment is the amount of the part of income A derived or received in the basis period for that year of assessment after deducting the following: ( a ) the expenses and donations allowable under this Act for that year of assessment that are attributable to or apportioned to the part of income A; ( b ) any capital allowances for that year of assessment attributable to the part of income A whether or not any claim for those allowances has been made; ( c ) any balance of the expenses, allowances and donations which have not been deducted under this subsection for the purpose of determining income E for any previous year of assessment. [39/2017] (6) The balance of any expenses, allowances or donations mentioned in subsection (5) may only be used to determine the company’s income E for a subsequent specified year of assessment, and is not available as a deduction against any other income of the company. [39/2017] (7) However, any balance mentioned in subsection (6) that remains — ( a ) after ascertaining the company’s income E for the last of the specified years of assessment; or ( b ) as of the date of revocation of the approval of the company, may be deducted against any other income of the company for a subsequent year of assessment, or the year of assessment for the basis period in which the approval is revoked or a subsequent basis period (whichever is applicable), in accordance with section 23 or 37, as the case may be. [39/2017] (8) Any balance of the amount C after a tax credit has been allowed for the last of the specified years of assessment must be disregarded. [39/2017] (9) If, at any time after the registration date, and during a period specified by the Minister to it at the time of its approval, the approved redomiciled company ceases to carry on any trade or business in Singapore, an amount computed using the formula is recoverable by the Comptroller from the company as a debt due to the Government, where — ( a ) F is the total number of its specified years of assessment or 5, whichever is larger; ( b ) G is the total number of complete years where the company carried on a trade or business in Singapore; and ( c ) H is the total amount of tax credits already allowed against the tax chargeable on the income of the company under this section. [39/2017] (10) If the Comptroller is satisfied that — ( a ) the approved redomiciled company gave to the Comptroller information that is false in any material particular, or omitted any material particular from any information or document given to the Comptroller; and ( b ) as a result of the false information or omission, an amount of tax credit was allowed against tax chargeable on the company’s income under this section, then an amount equal to the amount of tax credit so allowed is recoverable by the Comptroller from the company as a debt due to the Government. [39/2017] (11) The amount recoverable under subsection (9) or (10) must be paid at the place stated in the notice served by the Comptroller on the approved redomiciled company within 30 days after the service of the notice. [39/2017] (12) The Comptroller may, in the Comptroller’s discretion, and subject to such terms and conditions as the Comptroller may impose, extend the time within which payment is to be made. [39/2017] (13) Sections 86(1) to (6), 87(1) and (2), 89, 90 and 91 apply to the collection and recovery by the Comptroller of the amount recoverable under subsection (9) or (10) as they apply to the collection and recovery of tax. [39/2017] (14) In this section — “approved redomiciled company” means a redomiciled company within the meaning of section 34G(1) that is approved by the Minister for the purposes of this section; “place of incorporation”, in relation to an approved redomiciled company, means the jurisdiction where the company was domiciled at the time it applied for registration under Part 10A of the Companies Act 1967; “registration” means registration under section 359(1) of the Companies Act 1967; “registration date”, in relation to an approved redomiciled company, means the date of its registration specified in the notice of transfer of registration issued to it under section 359(3) of the Companies Act 1967. [39/2017]


document_id: ita-1947
provision_ref: s34I
chapter: PART 7 - ASCERTAINMENT OF CERTAIN INCOME
section: 34I
title: Adjustments arising from adoption of FRS 115 or SFRS(I) 15
content:
34I. —(1) This section applies where — ( a ) a person prepares or maintains the person’s financial accounts for any basis period for a year of assessment in accordance with FRS 115 or SFRS(I) 15 for the first time (called in this section the initial year of assessment); ( b ) as a result of the application of FRS 115 or SFRS(I) 15 (as the case may be), an adjustment has to be made to the amount of revenue in the person’s financial accounts in any previous basis period (called in this section the adjusted revenue amount); and ( c ) the amount W of the person (or, if the person is a partnership, a partner of the person) for the year of assessment for that previous basis period arrived at using an amount of profit that includes the adjusted revenue amount (called in this section amount A) as the starting point, is different from the amount arrived at using an amount of profit that does not include the adjusted revenue amount (called in this section amount B) as the starting point. [39/2017; 45/2018] (1A) In subsection (1)( c ), the amount W of a person or partner for a year of assessment is ascertained by the formula X + Y – Z, where — ( a ) X is the chargeable income of the person or partner for that year of assessment; ( b ) Y is all exempt income of the person or partner for that year of assessment; and ( c ) Z is the sum of each deduction or allowance for any expenditure, donation or loss, that remains unabsorbed after ascertaining the chargeable income or any exempt income. [45/2018] (2) Despite any provision of this Act, if amount A exceeds amount B, the excess amount is treated as income of the person or partner (as the case may be) for the initial year of assessment and is subject to one or more tax treatments in accordance with subsection (3). [39/2017] (3) For the purposes of subsection (2) — ( a ) if the income amount C of the person or partner for the initial year of assessment is subject to a single tax treatment, then the excess amount is subject to that tax treatment; ( b ) if different parts of the income amount C of the person or partner for the initial year of assessment are subject to different tax treatments, then different parts of the excess amount are subject to the different tax treatments, and the part of the excess amount that is subject to each of those tax treatments is computed by the formula where — (i) D is the sum of — (A) the part of the income amount C of the person or partner for that year of assessment that is subject to that tax treatment; and (B) the deduction allowed or allowance made for each expenditure, donation or loss in ascertaining the chargeable income or any exempt income of the person or partner for that year of assessment, and attributable to the production of, or apportioned to, that part; (ii) E is the sum of — (A) the income amount C of the person or partner for that year of assessment; and (B) the deduction allowed or allowance made for each expenditure, donation or loss in ascertaining the chargeable income or any exempt income of the person or partner for that year of assessment, and attributable to the production of, or apportioned to, the income amount C or a part of it; and (iii) F is the excess amount. [39/2017; 45/2018] (4) Despite any provision of this Act, if amount B exceeds amount A, a deduction of the excess amount must be made against the total income of the person or partner (as the case may be) or one or more parts of it for the initial year of assessment according to subsection (5). [39/2017] (5) For the purposes of subsection (4) — ( a ) if the income amount C of the person or partner for the initial year of assessment is subject to a single tax treatment, then the excess amount must be deducted against the income amount C; ( b ) if different parts of the income amount C of the person or partner for the initial year of assessment are subject to different tax treatments, then different parts of the excess amount must be deducted against the different parts of the income amount C, and the part of the excess amount that must be deducted against each part of the income amount C is computed by the formula where — (i) D is the sum of — (A) the part of the income amount C of the person or partner for that year of assessment that is subject to that tax treatment; and (B) the deduction allowed or allowance made for each expenditure, donation or loss in ascertaining the chargeable income or any exempt income of the person or partner for that year of assessment, and attributable to the production of, or apportioned to, that part; (ii) E is the sum of — (A) the income amount C of the person or partner for that year of assessment; and (B) the deduction allowed or allowance made for each expenditure, donation or loss in ascertaining the chargeable income or any exempt income of the person or partner for that year of assessment, and attributable to the production of, or apportioned to, the income amount C or a part of it; and (iii) F is the excess amount. [39/2017; 45/2018] (5A) To avoid doubt, the deduction or allowance mentioned in subsection (3)( b )(i)(B) or (ii)(B), or subsection (5)( b )(i)(B) or (ii)(B), excludes any deduction or allowance (or any part of any deduction or allowance) that remains unabsorbed after ascertaining the chargeable income or exempt income mentioned in that provision. [45/2018] (6) In this section — ( a ) income is subject to a tax treatment if it is — (i) subject to tax at one rate of tax; or (ii) exempt from tax; ( b ) a reference to the income amount C of a person or partner for a year of assessment is a reference to the amount of income computed by the formula G + H, where — (i) G is the part of the chargeable income of the person or partner for the year of assessment that is of the type of income governed by FRS 115 or SFRS(I) 15, as the case may be; and (ii) H is the part of the exempt income of the person or partner for the year of assessment that is of the type of income governed by FRS 115 or SFRS(I) 15, as the case may be; and ( c ) a reference to deducting an amount against any income that is subject to a tax treatment is — (i) if the tax treatment is that mentioned in paragraph ( a )(i), allowing that amount as a deduction against the income; or (ii) if the tax treatment is that mentioned in paragraph ( a )(ii), reducing the income by that amount. [39/2017; 45/2018] (7) In this section — “FRS 115” means the financial reporting standard known as Financial Reporting Standard 115 (Revenue from Contracts with Customers) issued by the Accounting Standards Committee under the Accounting Standards Act 2007; [Act 36 of 2022 wef 01/04/2023] “person” has the meaning given by section 2(1), and includes a partnership; “SFRS(I) 15” means the financial reporting standard known as Singapore Financial Reporting Standards (International) 15 (Revenue from Contracts with Customers), issued by the Accounting Standards Committee under the Accounting Standards Act 2007. [39/2017; 45/2018] [Act 36 of 2022 wef 01/04/2023]


document_id: ita-1947
provision_ref: s34J
chapter: PART 7 - ASCERTAINMENT OF CERTAIN INCOME
section: 34J
title: Tax treatment arising from adoption of FRS 116 or SFRS(I) 16
content:
34J. —(1) Where an MSI recipient (called in this section an electing recipient) makes an election in accordance with subsection (10) to adopt the tax treatment under this section, then, despite any other provision of this Act, that tax treatment applies in relation to the electing recipient in accordance with this section. [32/2019] (2) If, in any applicable period, a sublease by the electing recipient of a sublease asset is recognised by the electing recipient as a finance lease in accordance with FRS 116 or SFRS(I) 16, any income of the electing recipient derived under that sublease in that applicable period is taken as having been derived from a finance lease for the purpose of section 10C. [32/2019] (3) If, in any applicable period, a sublease by the electing recipient of a sublease asset is recognised by the electing recipient as an operating lease in accordance with FRS 116 or SFRS(I) 16, any income of the electing recipient derived under that sublease in that applicable period is taken as not having been derived from a finance lease for the purpose of section 10C. [32/2019] (4) The electing recipient is not entitled to any deduction under Part 5 in a year of assessment for any outgoing or expense incurred during an applicable period in relation to a qualifying asset of which it is a lessee, against any income derived by it from any use of that qualifying asset. [32/2019] (5) Where the electing recipient makes an election under subsection (10) at the time of lodgment of the return of income for the year of assessment for the basis period in which 12 December 2018 falls, then — ( a ) for the year of assessment for the basis period in which that date falls — the capital allowances to be made to it under section 19, 19A or 22 for any qualifying asset of which it is a lessee, are to be reduced by an amount computed by the formula where — (i) A is the number of days between 12 December 2018 and the last day of the basis period for that year of assessment (both days inclusive); and (ii) B is the amount of the capital allowances for that year of assessment for that qualifying asset; ( b ) for the year of assessment for the basis period in which that date falls — no allowance may be made to, and no charge may be made on, the electing recipient under section 20 or 21 for any event mentioned in section 20(1) that occurs in the period between 12 December 2018 and the last day of the basis period for that year of assessment (both days inclusive), in relation to any qualifying asset of which it is a lessee; and ( c ) for any subsequent year of assessment other than the last year of assessment — (i) the electing recipient is not entitled to any allowance under section 19, 19A or 22; and (ii) no allowance may be made to, and no charge may be made on, the electing recipient under section 20 or 21 for any event mentioned in section 20(1) that occurs in the basis period for that year of assessment, in relation to any qualifying asset of which it is a lessee. [32/2019] (6) Where the electing recipient makes the election under subsection (10) at the time of lodgment of the return of income for the year of assessment for any basis period other than that in which 12 December 2018 falls, then, for every year of assessment beginning with the basis period in which it makes the election and before the last year of assessment — ( a ) the electing recipient is not entitled to any allowance under section 19, 19A or 22; and ( b ) no allowance may be made to, and no charge may be made on, the electing recipient under section 20 or 21 for any event mentioned in section 20(1) that occurs in the basis period for that year of assessment, in relation to any qualifying asset of which it is a lessee. [32/2019] (7) For the last year of assessment, the capital allowances under section 19, 19A or 22 for any qualifying asset of which the electing recipient is a lessee, and which was leased for its trade or business before the date it ceases to be an MSI recipient, are to be — ( a ) computed on the residue of the capital expenditure or reducing value of the qualifying asset (as the case may be) after deducting all such allowances (including initial and annual allowances) that have or would (but for subsection (5) or (6)) have been made to the electing recipient for all past years of assessment, even if no such allowance was made; and ( b ) reduced by an amount computed by the formula where — (i) A is the number of days between the first day of the basis period of the last year of assessment and the day before the day the electing recipient ceases to be an MSI recipient (both days inclusive); and (ii) B is the amount of the capital allowances for the last year of assessment as computed in accordance with paragraph ( a ). [32/2019] (8) For the last year of assessment, no allowance may be made to, and no charge may be made on, the electing recipient under section 20 or 21 for any event mentioned in section 20(1) that occurs between the first day of the basis period of that year of assessment and the day before the day it ceases to be an MSI recipient (both days inclusive), in relation to any qualifying asset of which it is a lessee. [32/2019] (9) For each subsequent year of assessment after the last year of assessment, the capital allowances under section 19, 19A or 22 for any qualifying asset of which the electing recipient is a lessee, and which was leased for its trade or business before the day it ceases to be an MSI recipient, are to be computed on the residue of the capital expenditure or reducing value of the qualifying asset (as the case may be) after deducting — ( a ) all such allowances (including initial and annual allowances) that have or would (but for subsection (5) or (6)) have been made to the electing recipient for all past years of assessment, even if no such allowance was made; and ( b ) the total amount of such allowances that would have been made to the electing recipient for the last year of assessment without the reduction under subsection (7)( b ). [32/2019] (10) An MSI recipient may make an election to adopt the tax treatment under this section by providing a written notice to the Comptroller of this — ( a ) at the time of lodgment of the return of income for the year of assessment relating to a basis period during which its financial accounts are prepared in accordance with FRS 116 or SFRS(I) 16; or ( b ) within such further time as the Comptroller may allow. [32/2019] (11) An election made under subsection (10) is irrevocable. [32/2019] (12) If — ( a ) the tax treatment under this section has been applied in relation to a ship that is provisionally registered under the Merchant Shipping Act 1995, and that is operated by an electing recipient that is a shipping enterprise (called in this subsection and subsections (12A) and (13) the provisionally‑registered ship); and ( b ) the electing recipient subsequently fails to obtain a permanent certificate of registry under that Act in respect of that ship, then the Comptroller must, in relation to every year of assessment for which the tax treatment under this section has already been applied in relation to the provisionally‑registered ship — ( c ) make an assessment or additional assessment under section 74 on the electing recipient; or ( d ) revise an assessment already made and give a refund to the electing recipient for any tax overpaid, as the case may be, as if the tax treatment had not been applied for that year of assessment in relation to both the provisionally‑registered ship and relevant assets. [32/2019; 41/2020] (12A) Subsection (12) does not apply in relation to a ship in respect of which the electing recipient derives the income mentioned in section 13A(1), (1B), (1CA), (1CD), (1CE), (1CF), (1CG), (1CH), (1CI), (1CJ), (1CK) or (1CL) (modified by replacing a reference to a Singapore ship with a reference to a provisionally registered ship) on or after 19 February 2020, but not before that date. [41/2020] (13) In subsection (12), “relevant assets” means — ( a ) if, at the end of the basis period for the year of assessment mentioned in that subsection, the electing recipient operates only the provisionally‑registered ship and no other Singapore ship, all sublease assets and qualifying assets of the electing recipient; or ( b ) if, at the end of the basis period for the year of assessment mentioned in that subsection, the electing recipient operates one or more other Singapore ships in addition to the provisionally‑registered ship, any on‑board equipment integral to the operation of the provisionally‑registered ship but no other ship. [32/2019] (14) In this section — “applicable period” means — ( a ) the later of the following: (i) the period between 12 December 2018 and the last day of the basis period in which that date falls (both days inclusive); (ii) the basis period in which the electing recipient makes the election under subsection (10); ( b ) each basis period that is subsequent to the period mentioned in paragraph ( a ) and before the period mentioned in paragraph ( c ); or ( c ) the period starting on the first day of the basis period in which the electing recipient ceases to be an MSI recipient, and ending on (and including) the day before the day of such cessation; “approved container investment enterprise” means an approved container investment enterprise mentioned in section 43P; “approved international shipping enterprise” means an approved international shipping enterprise mentioned in section 13E; “approved shipping investment enterprise” means an approved shipping investment enterprise mentioned in section 13P; “container” has the meaning given by section 43P(7); “FRS 116” means the financial reporting standard issued by the Accounting Standards Committee under Part 3 of the Accounting Standards Act 2007 and known as Financial Reporting Standard 116 (Leases); [Act 36 of 2022 wef 01/04/2023] “intermodal equipment” has the meaning given by section 43P(7); “last year of assessment” means the year of assessment for the basis period in which the electing recipient ceases to be an MSI recipient; “Maritime Sector Incentive recipient” or “MSI recipient” means a shipping enterprise, an approved international shipping enterprise, an approved shipping investment enterprise, or an approved container investment enterprise; “qualifying asset” means — ( a ) in the case of an electing recipient that is a shipping enterprise, any of the following: (i) any Singapore ship; (ii) any on‑board equipment integral to the operation of Singapore ships; (iii) any container; (iv) any intermodal equipment or any other equipment integral to the operation of containers; ( b ) in the case of an electing recipient that is an approved international shipping enterprise, any of the following: (i) any ship; (ii) any on‑board equipment integral to the operation of ships; (iii) any container; (iv) any intermodal equipment or any other equipment integral to the operation of containers; ( c ) in the case of an electing recipient that is an approved shipping investment enterprise, any of the following: (i) any ship; (ii) any on‑board equipment integral to the operation of ships; and ( d ) in the case of an electing recipient that is an approved container investment enterprise, any of the following: (i) any container; (ii) any intermodal equipment or any other equipment integral to the operation of containers, but excludes anything that is used solely in the basis period concerned to derive income that is not income that is subject to exemption or a concessionary rate of tax under section 13A, 13E, 13P or 43P; “SFRS(I) 16” means the financial reporting standard issued by the Accounting Standards Committee under Part 3 of the Accounting Standards Act 2007 and known as Singapore Financial Reporting Standard (International) 16 (Leases); [Act 36 of 2022 wef 01/04/2023] “ship” has the meaning given by section 2(1) of the Merchant Shipping Act 1995; “shipping 


document_id: ita-1947
provision_ref: s34K
chapter: PART 7 - ASCERTAINMENT OF CERTAIN INCOME
section: 34K
title: Net tonnage basis of taxation
content:
34K. —(1) Despite any other provision of this Act, an MSI recipient may elect for all of its qualifying income derived during its incentive period for the year of assessment 2024 or any subsequent year of assessment to be taxed in accordance with this section. (2) Where an election is made by an MSI recipient for a year of assessment that falls within its incentive period — ( a ) its qualifying income for that year of assessment is not exempt from tax under section 13A, 13E or 13P (whichever is applicable) and is also not included in its statutory income for that year of assessment; and ( b ) instead, an amount based on the net tonnage of qualifying ships used by the MSI recipient to derive qualifying income in the basis period, as determined by the Twelfth Schedule (called in this section the deemed income), is added to and treated as part of the assessable income of the MSI recipient for that year of assessment. (3) However, no deduction may be made under section 37B or 37D against an amount treated as part of the assessable income of an MSI recipient under subsection (2)( b ). (4) Despite section 43(6), (6B), (6C) and (6D), tax is levied at the rate prescribed in section 43(1)( a ) on every dollar of the deemed income, and (accordingly) the deemed income does not form part of the chargeable income of the MSI recipient in section 43(6B) and (6D). (5) Despite subsection (2)( a ), expenses mentioned in section 13A(2A) of an MSI recipient that is a shipping enterprise that would otherwise be allocated in accordance with section 13A(2A) in ascertaining its qualifying income, are treated as having been so allocated; and the balance of those expenses is to be applied towards ascertaining any other income of the MSI recipient for the purposes of this Act. (6) An MSI recipient may make an election to adopt the tax treatment under this section by providing a written notice to one or more authorities prescribed by regulations made under subsection (13) (each called an authority), in the form and manner specified by the authority — ( a ) at or before the time it is required to lodge its return of income for any year of assessment (called in this section YA1); or ( b ) within such further time as the authority may allow. (7) An election, once made, is for all of the MSI recipient’s qualifying income derived in its incentive period, and is irrevocable. (8) An MSI recipient may, upon the expiry of its incentive period, make another election for all of its qualifying income within another incentive period to be taxed in accordance with this section, and subsections (6) and (7) apply accordingly. (9) In subsections (7) and (8), “incentive period” means — ( a ) if the MSI recipient is a shipping enterprise and is not an approved international shipping enterprise or approved shipping investment enterprise — the continuous period (not exceeding 10 years) that it owns or operates a qualifying ship, starting on the first day of the basis period for YA1 (day X ) or, if it first owns or operates a qualifying ship on any day (day Y ) after day X , starting on day Y ; ( b ) if the MSI recipient is an approved international shipping enterprise whether or not it also earns any income falling within the meaning of paragraph ( a ) of the definition of “qualifying income” in subsection (14) during the same period — (i) the period of its exemption in section 13E(2) starting on the first day of the basis period for YA1 (day X ) or, if the period of exemption starts on any day (day Y ) after day X , starting on day Y , but excluding in both cases any period of extension of such period of exemption; or (ii) any period of extension of the period of its exemption in section 13E(2) starting on the first day of the basis period for YA1 (day X ) or, if the period of extension starts on any day (day Y ) after day X , starting on day Y ; or ( c ) if the MSI recipient is an approved shipping investment enterprise whether or not it also earns any income falling within the meaning of paragraph ( a ) of the definition of “qualifying income” in subsection (14) during the same period — (i) the period of its approval mentioned in section 13P(3) starting on the first day of the basis period for YA1 (day X ) or, if the period of approval starts on any day (day Y ) after day X , starting on day Y , but in both cases — (A) excluding any period of extension of the approval; and (B) including any period after the period of approval where section 13P(1) continues to apply to its income as described in section 13P(1A) or (1B) after it ceases to be so approved; or (ii) any period of extension of its approval under section 13P(3) starting on the first day of the basis period for YA1 (day X ) or, if the period of extension starts on any day (day Y ) after day X , starting on day Y , and including any period after the period of extension where section 13P(1) continues to apply to its income as described in section 13P(1A) or (1B) after it ceases to be so approved. (10) However, if — ( a ) at the time an MSI recipient that is a shipping enterprise makes an election under subsection (7) or (8), it is not an approved international shipping enterprise or approved shipping investment enterprise; and ( b ) at any time during its incentive period as defined in subsection (9)( a ), the MSI recipient becomes an approved international shipping enterprise or approved shipping investment enterprise (as the case may be), the end date (but not the start date) of the incentive period of the MSI recipient is to be determined in accordance with subsection (9)( b ) or ( c ), as the case may be. (11) Where the incentive period of an MSI recipient covered by an election under this section lapses during a basis period for a year of assessment (called in this section the last YA), the capital allowances that are to be taken into account in determining its income that is exempt from tax under section 13A, 13E or 13P (as the case may be) for the last YA, or that is available as a deduction against any of its income for the last YA, are — ( a ) to be computed on the residue of the capital expenditure or reducing value of the asset concerned (as the case may be) after deducting all such allowances (including initial and annual allowances) that have or would (but for subsection (2)( a )) have been taken into account in determining its exempt income under section 13A, 13E or 13P, as the case may be; and ( b ) reduced by an amount computed by the formula where — (i) A is the number of days between the first day of the basis period and the day the incentive period ends; and (ii) B is the amount of capital allowances computed in paragraph ( a ). (12) For each year of assessment after the last YA, the capital allowances that are to be taken into account in determining the income of the MSI recipient that is exempt from tax under section 13A, 13E or 13P (as the case may be), or that is available as a deduction against any of its income, are to be computed on the residue of the capital expenditure or reducing value of the asset concerned, after deducting — ( a ) all such allowances (including initial and annual allowances) that have or would (but for subsection (2)( a )) have been taken into account in determining its exempt income under section 13A, 13E or 13P, as the case may be; and ( b ) the total amount of such allowances that would have been taken into account in determining its exempt income under section 13A, 13E or 13P (as the case may be), or that would have been available as a deduction against any of its income, for the last YA, but without the reduction in subsection (11)( b ). (13) The Minister may make regulations — ( a ) to modify the application of any provision in Part 14 in relation to any credit to be allowed against any tax payable in respect of the deemed income of an MSI recipient; and ( b ) to prescribe any matter required or permitted to be prescribed under this section. (14) In this section — “approved international shipping enterprise” means an international shipping enterprise as defined in section 13E and approved under that section; “approved shipping investment enterprise” means a shipping investment enterprise as defined in section 13P and approved under that section; “Maritime Sector Incentive recipient” or “MSI recipient” means — ( a ) a shipping enterprise, but only if it owns or operates a qualifying ship; ( b ) an approved international shipping enterprise; or ( c ) an approved shipping investment enterprise, including one the approval of which has expired or been withdrawn but to which section 13P(1) continues to apply by virtue of section 13P(1A) or (1B), but excludes an entity that only operates one or more ships where only a part of each ship was chartered to it; “net tonnage”, in relation to a qualifying ship, means the measure of the useful capacity of the ship stated in a valid certificate of registry, Singapore Tonnage Certificate or International Tonnage Certificate (1969); “provisionally registered ship”, “shipping enterprise” and “Singapore ship” have the meanings given by section 13A(16); “qualifying income”, in relation to an MSI recipient for any year of assessment, means all of the following income (whichever is applicable) of the MSI recipient: ( a ) any income that would have been exempt from tax under section 13A but for this section; ( b ) any income that would have been exempt from tax under section 13E but for this section; ( c ) any income that would have been exempt from tax under section 13P but for this section; “qualifying ship”, in relation to an MSI recipient for any year of assessment, means — ( a ) in the case of an MSI recipient that is a shipping enterprise but not an approved international shipping enterprise or an approved shipping investment enterprise, any Singapore ship or provisionally registered ship; or ( b ) in the case of an MSI recipient that is an approved international shipping enterprise or an approved shipping investment enterprise, any ship, owned or operated by the MSI recipient at any time in the basis period for that year of assessment; “ship” has the meaning given by section 2(1) of the Merchant Shipping Act 1995. [Act 35 of 2024 wef 27/11/2024]


document_id: ita-1947
provision_ref: s35
chapter: PART 8 - ASCERTAINMENT OF STATUTORY INCOME
section: 35
title: Basis for computing statutory income
content:
35. —(1) Except as provided in this section, the income of any person for each year of assessment (called in this Act the statutory income) is the full amount of the person’s income for the year preceding the year of assessment from each source of income after the deduction provided under subsection (2). (2) There is to be deducted any allowance falling to be made under section 16, 17, 18A (repealed), 18B, 18C, 19, 19A, 19B, 19C, 19D or 20 that is not fully deducted and which would otherwise be added to, and deemed to form part of, the corresponding allowance for the next succeeding year of assessment under section 23(1). (2A) A deduction under subsection (2) is to be made in the following order: ( a ) firstly, against income from any trade, business, profession or vocation; and ( b ) secondly, against income from any other source. (3) For the purposes of subsection (2), the balance of allowance for the earliest year of assessment is deemed to have been deducted first, followed by the balance of allowance for the next earliest year of assessment, and so on. (4) Where the Comptroller is satisfied that any person usually makes up the person’s accounts to a day other than 31 December, the Comptroller may direct that — ( a ) where the person is not an individual, the statutory income of that person from all sources be computed on the amount of gains or profits of the year ending on that day in the year preceding the year of assessment; ( b ) where the accounts relate to a partnership, the income of the partnership be computed under section 36 on the amount of gains or profits of the year ending on that day in the year preceding the year of assessment; or ( c ) where the person is an individual, the statutory income of that person from any trade, business, profession or vocation to which the accounts relate be computed on the amount of gains or profits of the year ending on that day in the year preceding the year of assessment. (5) [ Deleted by Act 19 of 2013 ] (6) Where the statutory income of any person has been computed by reference to an account made up to a certain day, and such person fails for any reason whatsoever to make up an account to the corresponding day in the year following, the statutory income both of the year of assessment in which such failure occurs and of the 2 years of assessment following is to be computed on such basis as the Comptroller in his or her discretion thinks fit. (7) Where it is necessary in order to arrive at the income of any year of assessment or other period, to divide and apportion to specific periods the income of any period for which accounts have been made up, or to aggregate such income or any apportioned parts thereof, it is lawful to make such a division, and apportionment or aggregation, and any apportionment under this section is to be made in proportion to the number of days in the respective periods, unless the Comptroller, having regard to any special circumstances, otherwise directs. (8) The statutory income of an executor of a deceased person for any year of assessment is the income of the estate administered by such executor computed in accordance with subsections (1) to (7). (9) In the case of an estate administered in Singapore, a deduction is allowed in respect of any income included in the computation of the statutory income if such income is received by, distributed to or applied to the benefit of any beneficiary of the estate within the calendar year in which the income is derived, or such longer period that the Comptroller may permit in any particular case or class of cases. [Act 30 of 2023 wef 30/10/2023] (10) The statutory income of any beneficiary of such estate is the amount so received by, or distributed to the beneficiary, or applied to the beneficiary’s benefit during the year preceding the year of assessment. (11) The statutory income of a trustee (not being the trustee of an incapacitated person) for any year of assessment is to be computed in accordance with subsections (1) to (7). (12) The trustee of a designated unit trust for a year of assessment may elect to apply this subsection to the trustee’s income referred to in section 10(20)( a ), ( b ) and ( c ) and (20A)( a ) to ( i ) derived in the basis period or any part of the basis period for that year of assessment, and thereupon that income does not form part of the trustee’s statutory income for that year of assessment. [37/2014] (12A) Subsection (12) only applies to income derived on or after 1 September 2014. [37/2014] (12B) An election under subsection (12) must be made by submitting such form as the Comptroller may specify, together with the trustee’s return of income for the year of assessment in question, before the expiry of the time the return of income is to be delivered or within such extended time as the Comptroller may allow. [37/2014] (12C) An election under subsection (12) is irrevocable. [37/2014] (12D) To avoid doubt, subsection (12) does not affect the operation of section 43(2) (read with section 43(2A)( ba )) in relation to a designated unit trust that is also an approved REIT exchange‑traded fund within the meaning of section 43(10). [45/2018] (13) No deduction under section 14 is allowed for any year of assessment in respect of any outgoings and expenses (including any expenses arising from the management of investments) incurred by the trustee of a designated unit trust for that year of assessment in respect of the unit trust, against any income derived by the trustee in respect of the unit trust from — ( a ) dividends paid by any company resident in Singapore; or ( b ) interest for which tax has been deducted under section 45. [37/2014] (13A) No deduction under section 14 is allowed for any year of assessment in respect of any outgoings and expenses (including any expenses arising from the management of investments) incurred by the trustee of a designated unit trust for that year of assessment in respect of the unit trust, against any income derived by the trustee in respect of the unit trust from discount, fees and compensatory payments for which tax has been deducted under section 45A. [37/2014] (14) In subsections (12), (13), (13A), (14A), (14B), (14C) and (14D) — “compensatory payment” has the meaning given by section 10H(12); “designated unit trust”, in relation to a year of assessment, means a trust that is — ( a ) a unit trust scheme or an exchange traded fund interest scheme, in which any moneys standing to the credit of a member of the Central Provident Fund in the Fund have been or may be invested, and which remains prescribed by the Minister for the purposes of this definition throughout the basis period for that year of assessment; or ( b ) a unit trust which satisfies all of the following conditions throughout the basis period for that year of assessment: (i) it is one of the following: (A) a collective investment scheme which is authorised under section 286 of the Securities and Futures Act 2001 and the units of which are offered to the public for subscription; (B) a collective investment scheme which was a former designated unit trust, is a restricted Singapore scheme within the meaning of section 13(16), and satisfies the conditions in subsection (14B); (C) a collective investment scheme which was a former designated unit trust, is a collective investment scheme the units of which are offered only to institutional investors, and satisfies the conditions set out in subsection (14B); (ii) it is neither a real estate investment trust within the meaning of section 43(10), nor a property trust that invests directly in immovable properties in Singapore; (iii) the trustee of the unit trust is resident in Singapore; (iv) the unit trust is managed in Singapore by a fund manager; “exchange traded fund interest scheme” means any scheme or arrangement which is made for the purpose, or having the effect, of providing facilities for the participation by persons as beneficiaries under a trust, in profits or income arising from the acquisition, holding, management or disposal of a portfolio of predetermined proportions, which constituent assets comprise securities listed for quotation on any stock exchange; “former designated unit trust” means a unit trust that, immediately before 21 February 2014, was a designated unit trust under this section in force immediately before that date; “securities” has the meaning given by section 10(23); “unit” and “unit trust” have the meanings given by section 10A. [37/2014; 32/2019] (14A) For the purposes of paragraph ( a ) of the definition of “designated unit trust” in subsection (14), the Minister may prescribe, as designated unit trusts, descriptions of unit trust schemes and exchange traded fund interest schemes set out on a specified website of the Central Provident Fund Board, as amended from time to time. [37/2014] (14B) The conditions referred to in paragraph ( b )(i)(B) and (C) of the definition of “designated unit trust” in subsection (14) are as follows: ( a ) no more than 50% of the units in the unit trust is beneficially held by related parties of the fund manager; [Act 33 of 2022 wef 04/11/2022] ( b ) the unit holders have no control over the management of the property of the unit trust and have no right to be consulted or to give directions in respect of such management; ( c ) the unit holders have no control over any matter relating to distributions to be made out of the income of the unit trust; ( d ) no property was transferred (other than by way of a sale in accordance with market terms and conditions), directly or indirectly, to the trustee of the unit trust to be held as its property, by a company which has derived income from that property that is chargeable to tax under this Act; and ( e ) the investment strategy of the unit trust as of 20 February 2014 remains unchanged. [37/2014] (14C) Despite the definition of “designated unit trust” in subsection (14), a collective investment scheme (being a former designated unit trust) — ( a ) which is a restricted Singapore scheme within the meaning of section 13(16); or ( b ) the units of which are offered only to institutional investors, which fails to satisfy the conditions set out in subsection (14B) in any part of the basis period for a year of assessment is not treated as a designated unit trust for the year of assessment to which that basis period relates, or for any subsequent year of assessment even if all of the requirements in the definition of that term have been satisfied for that subsequent year of assessment. [37/2014] (14D) For the purposes of paragraphs ( a ) and ( b ) of the definition of “designated unit trust” in subsection (14), a reference to a condition being satisfied throughout the basis period for a year of assessment is, where the unit trust is dissolved at any time in the basis period, a reference to the condition being satisfied from the beginning of the basis period up to the date of the dissolution. [37/2014] (14E) Subsections (12), (13) and (13A) do not apply to a trust that is constituted on or after 1 April 2019. [37/2014] (14F) In the case of a trust that is constituted before 1 April 2019 — ( a ) that is not a designated unit trust (as defined in subsection (14)) for a year of assessment in respect of any basis period beginning on or after 1 April 2019; or ( b ) whose trustee did not make an election for subsection (12) to apply to the trustee’s income for any basis period beginning on or after that date, subsections (12), (13) and (13A) do not apply to that trust for the year of assessment to which that basis period relates and for every subsequent year of assessment. [37/2014] (14G) Subsection (14F) applies to the trust for a subsequent year of assessment even if all of the requirements in the definition of “designated unit trust” in subsection (14) have been satisfied for that year of assessment. [37/2014] (14H) In the case of a trust that is constituted before 1 April 2019 whose trustee di


document_id: ita-1947
provision_ref: s35A
chapter: PART 8 - ASCERTAINMENT OF STATUTORY INCOME
section: 35A
title: Cessation of source of income commenced before 1 January 1969
content:
35A. —(1) This section only applies to any trade, business, profession, vocation or employment (except subsidiary employment which had not been treated as a new source on commencement) which commenced before 1 January 1969. (2) Subject to subsection (3), where a person permanently ceases to carry on or exercise any trade, business, profession, vocation or employment to which this section applies, the person’s statutory income therefrom is — ( a ) as regards the year of assessment in which the cessation occurs — the amount of the income of that year; and ( b ) as regards the year of assessment preceding that in which the cessation occurs — the amount of income as computed in accordance with section 35, or the amount of income of that year, whichever is the greater. (3) Subsection (2) does not apply to a company which ceases to carry on any trade or business on or after 15 October 1969 where such trade or business or part thereof is transferred to or carried on by any person as that person’s trade or business, whether with or without any alteration. (4) For the purposes of this section, where a change occurs in a partnership of persons carrying on any trade, business or profession by reason of retirement or death, or the dissolution of the partnership as to one or more of the partners, or the admission of a new partner, every such person who is not a company is deemed to cease to carry on that trade, business or profession as from the date the change occurs.


document_id: ita-1947
provision_ref: s36
chapter: PART 8 - ASCERTAINMENT OF STATUTORY INCOME
section: 36
title: Partnership
content:
36. —(1) Where a trade, business, profession or vocation is carried on by 2 or more persons jointly — ( a ) the income of any partner from the partnership for any period is deemed to be the share to which the partner was entitled during that period in the income of the partnership, such income being ascertained in accordance with the provisions of this Act, and must be included in the return of income to be made by such partner under the provisions of this Act; and ( b ) the statutory income of any partner from the partnership is computed in accordance with section 35 by treating the partner’s share of the divisible income of the partnership as though it were income of a trade, business, profession or vocation carried on or exercised by the partner. (1A) Sections 13G, 13P, 43N and 43P apply in relation to the income of a partner from a partnership as they apply in relation to the income of a company, with such modifications and exceptions as may be prescribed by the Minister by regulations. (1B) Despite anything in sections 14E, 19B and 19C, those sections apply for the purpose of making a deduction or an allowance to the partners of a partnership for expenditure incurred by the partnership to which those sections apply, subject to such modifications and exceptions as may be prescribed by the Minister. (1C) Regulations under subsections (1A) and (1B) may make provision –– ( a ) for the manner in which a concessionary rate of tax under sections 43N and 43P may be accorded to a partner of a partnership being an individual; ( b ) in a case where any deduction, writing‑down allowance, exemption or concessionary rate of tax ought not to have been allowed to a partner of a partnership due to non‑compliance with any condition imposed on the partnership, for the recovery from the partner — (i) if the partner is a company, of the amount of tax which would otherwise have been payable; or (ii) if the partner is an individual, of an amount to be computed in the prescribed manner; ( c ) for the recovery of the amount referred to in paragraph ( b ) by deeming a specified amount as the income of the partner for the year of assessment in which the Comptroller discovers the non‑compliance referred to in that paragraph; and ( d ) generally to give effect to or for carrying out the purposes of those sections as they apply to a partnership. [34/2016]


document_id: ita-1947
provision_ref: s36A
chapter: PART 8 - ASCERTAINMENT OF STATUTORY INCOME
section: 36A
title: Limited liability partnership
content:
36A. —(1) For the purposes of this Act, where a limited liability partnership carries on a trade, business, profession or vocation — ( a ) all the activities of the partnership are treated as carried on in partnership by its partners (and not by the partnership as such); ( b ) anything done by, to or in relation to the partnership for the purposes of, or in connection with, any of its activities is treated as done by, to or in relation to the partners; and ( c ) the property of the partnership is treated as held by the partners as partnership property. (2) For the purposes, except as otherwise provided, of this Act — ( a ) references to a partnership include a limited liability partnership in relation to which subsection (1) applies; ( b ) references to partners of a partnership include partners of such a limited liability partnership; ( c ) references to a company do not include such a limited liability partnership; and ( d ) references to shareholders of a company do not include partners of such a limited liability partnership. (3) In ascertaining the income of a limited liability partnership for the purpose of section 36(1)( a ), section 10D applies to income from any business of the making of investments as if the limited liability partnership is a company. (4) For any year of assessment, the amount of relevant deductions that may be allowed to or transferred by a partner of a limited liability partnership must not exceed — ( a ) in the case of a relevant deduction allowed to the partner under section 35(2), an amount equal to the amount ascertained in accordance with the formula ( b ) in the case of a relevant deduction allowed to the partner under section 37(3)( a ), an amount equal to the amount ascertained in accordance with the formula ( c ) in the case of a transferred deduction transferred by the partner, an amount equal to the amount ascertained in accordance with the formula ( d ) in the case of a carry‑back deduction allowed to or transferred by the partner, an amount equal to the amount ascertained in accordance with the formula where A is the partner’s contributed capital in that year of assessment; B is the past relevant deductions already allowed to the partner; C is the relevant deduction allowed to the partner in that year of assessment under section 35(2); D is the relevant deduction allowed to the partner in that year of assessment under section 37(3)( a ); and E is the transferred deduction transferred by the partner in that year of assessment. (5) If, as a result of any reduction in the contributed capital of a partner of a limited liability partnership in any year of assessment, the past relevant deductions already allowed to the partner exceeds the partner’s contributed capital, the excess is deemed to be income of the partner chargeable with tax under section 10(1)( g ) for that year of assessment, and an amount equal to the excess is deemed to be a loss incurred by the partner in the trade, business, profession or vocation of the limited liability partnership. (6) Subsections (4) and (5) do not apply in the year of assessment relating to the basis period in which the partner ceases to be a partner of a limited liability partnership or in any subsequent year of assessment. (7) For the purposes of any allowances made under section 16, 17, 18B, 18C, 19, 19A, 19B, 19C, 19D, 20 or 23, where — ( a ) any person is admitted to or withdraws from a limited liability partnership as a partner thereof; and ( b ) one or more persons remain as partners of the limited liability partnership after the admission or withdrawal of that person, the interest of that person in any property of the limited liability partnership is deemed to be — ( c ) where that person is admitted to the limited liability partnership as a partner, sold to that person by all the remaining partners; or ( d ) where that person withdraws from the limited liability partnership as a partner, sold by that person to all the remaining partners. (8) The precedent partner of a limited liability partnership must make and deliver, together with a return of the income of the limited liability partnership under section 71 or when required by the Comptroller by written notice, a return of the contributed capital of each partner of the limited liability partnership for any year of assessment. (9) For the purposes of this section, the Minister may make regulations to provide generally for giving full effect to or for carrying out the purposes of this section. (10) In this section — “activities of the limited liability partnership” means anything done by the limited liability partnership, whether or not in the course of carrying on a trade, business, profession or vocation; “carry‑back deductions”, in relation to a partner of a limited liability partnership in any year of assessment, means — ( a ) any deduction allowed to the partner of any allowance arising from any trade, business or profession, or any loss incurred in any trade, business, profession or vocation carried on by the limited liability partnership that is made against the partner’s assessable income from any other source for the immediate preceding year of assessment under section 37D(1) or any of the 3 immediate preceding years of assessment under section 37D(1A); or ( b ) any allowance arising from any trade, business or profession, or any loss incurred in any trade, business, profession or vocation carried on by the limited liability partnership that is transferred by the partner to a spouse under section 37E; “contributed capital”, in relation to a partner of a limited liability partnership for any year of assessment, means the aggregate of — ( a ) the amount, as at the end of the basis period for the year of assessment to be determined by the Comptroller, which the partner has contributed (in cash or in kind but not including any loan by the partner to the limited liability partnership) to the limited liability partnership as capital, and has not, directly or indirectly, drawn out or received back (whether as a distribution or a loan from the limited liability partnership or otherwise); and ( b ) the amount, as at the end of the basis period for the year of assessment to be determined by the Comptroller, of any profits or gains of the trade, business, profession or vocation from any past year of assessment to which the partner is entitled as a partner of the limited liability partnership but which the partner has not, directly or indirectly, received (whether as a distribution or a loan from the limited liability partnership or otherwise); “past relevant deductions”, in relation to a partner of a limited liability partnership in any year of assessment, means the aggregate of any relevant deductions allowed to the partner less any amount deemed under subsection (5) to be income chargeable with tax in any year of assessment before that year of assessment; “precedent partner” has the meaning given by section 71; “relevant deductions”, in relation to a partner of a limited liability partnership, means — ( a ) any deduction allowed to the partner under section 35(2) of any allowance arising from any trade, business or profession carried on by the limited liability partnership; ( b ) any deduction allowed to the partner under section 37(3)( a ) of any loss incurred in any trade, business, profession or vocation carried on by the limited liability partnership that is made against the partner’s statutory income from any other source; ( c ) any transferred deduction transferred by the partner; or ( d ) any carry‑back deduction allowed to or transferred by the partner, as the case may be; “transferred deduction”, in relation to a partner of a limited liability partnership, means any allowance arising from any trade, business or profession, or any loss incurred in any trade, business, profession or vocation carried on by the limited liability partnership that is transferred by the partner to a claimant company under section 37B or to a spouse under section 37C. [39/2017; 41/2020]


document_id: ita-1947
provision_ref: s36B
chapter: PART 8 - ASCERTAINMENT OF STATUTORY INCOME
section: 36B
title: Registered business trusts
content:
36B. —(1) For the purposes of this Act, except as otherwise provided, references to a company include a reference to a registered business trust or, as the context requires, to the trustee‑manager of a registered business trust subject to the following modifications: ( a ) sections 23 and 37 apply to a registered business trust except that — (i) any reference to the shareholders of a company is a reference to the unitholders of a registered business trust; (ii) the unitholders of a registered business trust at any date are not deemed to be substantially the same as the unitholders at any other date unless, on both those dates — (A) the same unitholders are entitled to not less than 50% of any residual profits of the registered business trust available for distribution; and (B) the same unitholders are entitled to not less than 50% of any residual assets of the registered business trust available for distribution on winding up; (iii) units in a registered business trust held by or on behalf of a company are deemed to be held by the shareholders of the company; and (iv) units held by or on behalf of the trustee of the estate of a deceased unitholder or by or on behalf of the person entitled to those units as beneficiaries under the will or any intestacy of a deceased unitholder are deemed to be held by that deceased unitholder; ( b ) for the purpose of section 24(1) — (i) a body of persons is deemed to have control over a registered business trust if — (A) the body of persons is a company and it holds more than 50% of the units in the registered business trust; or (B) the body of persons is another registered business trust and they hold on trust for their unitholders more than 50% of the units in the firstmentioned registered business trust; (ii) a registered business trust is deemed to have control over a company if — (A) the trustee‑manager of the registered business trust holds on trust for its unitholders more than 50% of the total number of issued shares of the company; or (B) the unitholders of the registered business trust hold more than 50% of the total number of issued shares of the company; ( c ) for the purpose of section 37B — (i) a registered business trust is deemed to be a Singapore company if — (A) the registered business trust is established in Singapore; and (B) the trust deed of the registered business trust is executed in Singapore and is governed by Singapore law; (ii) any reference to ordinary share or ordinary share capital in a company is a reference to the units in a registered business trust; and (iii) any reference to residual assets or residual profits in a company is a reference to the residual assets and residual profits of a registered business trust; [Act 35 of 2024 wef 01/01/2024] ( d ) for the purposes of section 13W(1) and (1A), any reference in those provisions to ordinary shares or preference shares in investee companies B and B1 (each called an investee company) which are legally and beneficially owned by divesting companies A and A1 (each called a divesting company) respectively, is, in a case where the divesting company is a registered business trust, a reference to ordinary shares or preference shares in the investee company which are trust property of the registered business trust; [Act 25 of 2025 wef 08/12/2025] ( da ) section 13W(1B) does not apply to a registered business trust; [Act 25 of 2025 wef 08/12/2025] ( e ) for the purposes of sections 92J and 92L, the definitions of “employee” and “local employee” in sections 92J(7) and 92L(7) are replaced by the following definition: “local employee”, in relation to a registered business trust, means an individual — ( a ) who is a Singapore citizen or a Singapore permanent resident; ( b ) who is an employee of the trustee‑manager of the business trust for any period in the calendar year 2023 (for the purposes of section 92J) or 2024 (for the purposes of section 92L) and is on the payroll of the trustee‑manager for that period; and ( c ) whose sole duty is assisting in managing or operating the business trust, but excludes an individual who is also a unitholder of the business trust; [Act 25 of 2025 wef 01/02/2025] [Act 25 of 2025 wef 08/12/2025] ( f ) for the purposes of section 92K — (i) any reference to the ordinary shares of a company is a reference to the units in a registered business trust; and (ii) any reference to a subsidiary wholly-owned (directly or indirectly) by a company is to a company all the shares of which are held (directly or indirectly) for a registered business trust by its trustee-manager. [37/2014] [Act 35 of 2024 wef 16/02/2024] [Act 25 of 2025 wef 01/02/2025] (2) The statutory income of a registered business trust is to be computed in accordance with section 35(11). (3) Sections 35(15) and 43(2) do not apply to any registered business trust or unitholders of any registered business trust. (4) In this section, “business trust”, “registered business trust”, “trustee‑manager”, “unit” and “unitholder” have the meanings given by the Business Trusts Act 2004.


document_id: ita-1947
provision_ref: s36C
chapter: PART 8 - ASCERTAINMENT OF STATUTORY INCOME
section: 36C
title: Limited partnership
content:
36C. —(1) For the purposes of this Act, except as otherwise provided — ( a ) references to a partnership include references to a limited partnership; and ( b ) references to partners of a partnership include references to partners of a limited partnership. (2) In ascertaining the income of a limited partnership for the purpose of section 36(1)( a ), section 10D applies to income from any business of the making of investments as if the limited partnership were a company. (3) For any year of assessment, the amount of relevant deductions that may be allowed to or transferred by a limited partner of a limited partnership must not exceed — ( a ) in the case of a relevant deduction allowed to the limited partner under section 35(2), an amount equal to the amount ascertained in accordance with the formula ( b ) in the case of a relevant deduction allowed to the limited partner under section 37(3)( a ), an amount equal to the amount ascertained in accordance with the formula ( c ) in the case of a transferred deduction transferred by the limited partner, an amount equal to the amount ascertained in accordance with the formula ( d ) in the case of a carry‑back deduction allowed to or transferred by the limited partner, an amount equal to the amount ascertained in accordance with the formula where A is the limited partner’s contributed capital in that year of assessment; B is the past relevant deductions already allowed to the limited partner; C is the relevant deduction allowed to the limited partner in that year of assessment under section 35(2); D is the relevant deduction allowed to the limited partner in that year of assessment under section 37(3)( a ); and E is the transferred deduction transferred by the limited partner in that year of assessment. (4) If, as a result of any reduction in the contributed capital of a limited partner of a limited partnership in any year of assessment, the past relevant deductions already allowed to the limited partner exceeds the limited partner’s contributed capital, the excess is deemed to be income of the limited partner chargeable with tax under section 10(1)( g ) for that year of assessment, and an amount equal to the excess is deemed to be a loss incurred by the limited partner in the trade, business, profession or vocation of the limited partnership. (5) Subsections (3) and (4) do not apply in the year of assessment relating to the basis period in which the limited partner ceases to be a limited partner of a limited partnership or in any subsequent year of assessment. (6) The precedent partner of a limited partnership must make and deliver, together with a return of the income of the limited partnership under section 71 or when required by the Comptroller by written notice, a return of the contributed capital of each partner of the limited partnership for any year of assessment. (7) For the purposes of this section, the Minister may make regulations to give full effect to or to carry out the purposes of this section. (8) In this section — “carry‑back deductions”, in relation to a limited partner of a limited partnership in any year of assessment, means — ( a ) any deduction allowed to the limited partner of any allowance arising from any trade, business or profession, or any loss incurred in any trade, business, profession or vocation carried on by the limited partner in the limited partnership that is made against the limited partner’s assessable income from any other source for the immediate preceding year of assessment under section 37D(1) or any of the 3 immediate preceding years of assessment under section 37D(1A); or ( b ) any allowance arising from any trade, business or profession, or any loss incurred in any trade, business, profession or vocation carried on by the limited partner in the limited partnership that is transferred by the limited partner to a spouse under section 37E; “contributed capital”, in relation to a limited partner of a limited partnership in any year of assessment, means the aggregate of — ( a ) the amount, as at the end of the basis period for the year of assessment to be determined by the Comptroller, which the limited partner has contributed (in cash or in kind but not including any loan by the limited partner to the limited partnership) to the limited partnership as capital, and has not, directly or indirectly, drawn out or received back (whether as a distribution or a loan from the limited partnership or otherwise); and ( b ) the amount, as at the end of the basis period for the year of assessment to be determined by the Comptroller, of any profits or gains of the trade, business, profession or vocation from any past year of assessment to which the limited partner is entitled as a limited partner of the limited partnership but which the limited partner has not, directly or indirectly, received (whether as a distribution or a loan from the limited partnership or otherwise); “limited partner” has the meaning given by the Limited Partnerships Act 2008; “past relevant deductions”, in relation to a limited partner of a limited partnership in any year of assessment, means the aggregate of any relevant deductions allowed to the partner less any amount deemed under subsection (4) to be income chargeable with tax in any year of assessment before that year of assessment; “precedent partner” has the meaning given by section 71; “relevant deductions”, in relation to a limited partner of a limited partnership, means — ( a ) any deduction allowed to the limited partner under section 35(2) of any allowance arising from any trade, business or profession carried on by the limited partner in the limited partnership; ( b ) any deduction allowed to the limited partner under section 37(3)( a ) of any loss incurred in any trade, business, profession or vocation carried on by the limited partner in the limited partnership that is made against the limited partner’s statutory income from any other source; ( c ) any transferred deduction transferred by the partner; or ( d ) any carry‑back deduction allowed to or transferred by the partner, as the case may be; “transferred deduction”, in relation to a limited partner of a limited partnership, means any allowance arising from any trade, business or profession, or any loss incurred in any trade, business, profession or vocation carried on by the limited partner in the limited partnership that is transferred by the limited partner to a claimant company under section 37B or to a spouse under section 37C. [39/2017; 41/2020]


document_id: ita-1947
provision_ref: s37
chapter: PART 9 - ASCERTAINMENT OF ASSESSABLE INCOME
section: 37
title: Assessable income
content:
37. —(1) The assessable income of any person from all sources chargeable with tax under this Act for any year of assessment is the remainder of the person’s statutory income for that year after the deductions allowed in this Part have been made. (2) For the purposes of this section, unless otherwise provided in this Act or the Economic Expansion Incentives (Relief from Income Tax) Act 1967, where a person is a company whose income (if any) is subject to tax at different rates of tax for any year of assessment, the Comptroller must apportion any sum allowable under subsection (3)( b ), ( c ), ( d ) or ( f ) among the different rates of tax on such basis as the Comptroller considers reasonable. (3) Subject to subsections (2) and (3B), there is to be deducted — ( a ) the amount of loss incurred by that person in any trade, business, profession or vocation, which, if it had been a profit would have been assessable under this Act, in the following order: (i) firstly, any balance of such loss which remains unabsorbed at the end of the basis period for the previous year of assessment; (ii) secondly, the amount incurred during the basis period for the year of assessment; ( b ) an amount equivalent to twice the value, the value to be determined by the Minister or such person as the Minister may appoint, of an approved donation of — (i) any artefact or work of art made by that person in the year preceding the year of assessment to an approved museum; (ii) any sculpture or work of art for public display made by that person in the year preceding the year of assessment to an approved recipient not being an approved museum; or (iii) money or services for installing or maintaining any sculpture or work of art for public display made by that person in the year preceding the year of assessment, and for this purpose, “approved” means approved by the Minister or such person as the Minister may appoint; ( c ) an amount equivalent to twice the amount of any donation of money made by that person in the year preceding the year of assessment to — (i) the Government; or (ii) any institution of a public character, whether made directly to the institution or indirectly through any grant‑making philanthropic organisation registered by the Comptroller for the purpose of this sub‑paragraph; ( d ) an amount equivalent to twice the value of any donation of a computer (including computer software and peripherals) approved by the Minister or such person as the Minister may appoint and made by any company in the year preceding the year of assessment to — (i) any institution of a public character; or (ii) a prescribed educational, research or other institution in Singapore; ( e ) an amount equivalent to — (i) twice the value of any donation of shares in a company listed on the Singapore Exchange; or (ii) twice the value of any donation of units in unit trusts traded in Singapore or listed on the Singapore Exchange, made by an individual in the year preceding the year of assessment to any institution of a public character; and ( f ) an amount equivalent to twice the value, the value to be determined by an appraiser licensed under the Appraisers Act 1906 and approved by the Chief Valuer appointed under the State Lands Act 1920, of any donation of any immovable property made by that person in the year preceding the year of assessment to any institution of a public character. (3A) For the purpose of subsection (3), a reference to “twice the value” or “twice the amount” in subsection (3)( b ) to ( f ) is a reference to — ( a ) in the case of a donation made during either of the following periods: (i) from 1 January 2009 to 31 December 2014 (both dates inclusive); (ii) from 1 January 2016 to 31 December 2026 (both dates inclusive), 2.5 times the value or 2.5 times the amount, as the case may be; or [Act 30 of 2023 wef 30/10/2023] ( b ) in the case of a donation made during the period from 1 January 2015 to 31 December 2015 (both dates inclusive), 3 times the value or 3 times the amount, as the case may be. [2/2016; 45/2018; 27/2021] (3B) No deduction may be made under subsection (3)( b ), ( c ), ( d ), ( e ) or ( f ) to a person in respect of any donation made to an approved museum, approved recipient not being an approved museum, the Government, an institution of a public character or a prescribed educational, research or other institution in Singapore on or after 1 January 2012 unless the person provides to — ( a ) the approved museum, approved recipient, Government, institution of a public character or educational, research or other institution; or ( b ) in a case where the donation is made under subsection (3)( c ) to an institution of a public character indirectly through a grant‑making philanthropic organisation, the grant‑making philanthropic organisation, as the case may be, such information within such time and in such form and manner as the Comptroller may specify. (3C) A donation made on or after 18 December 2012 of any property or money referred to in subsection (3)( b )(i) or (ii), ( c ), ( d ), ( e ) or ( f ) to a recipient under that provision, which is subject to any condition specified by the donor as to the purpose for which the donation may be applied (including where the donor specifies another purpose for the application of the donation in the event the firstmentioned purpose should fail), is treated as a donation under that provision if (and only if) all of the following requirements are satisfied: ( a ) except where the recipient is the Government, each specified purpose must be one that advances an objective of the recipient set out in its governing instrument; ( b ) none of the specified purposes must be to advance the interests (whether directly or indirectly) of a particular race, belief or religion, or of a particular person or persons; ( c ) the donor did not specify or imply in any manner that any part of the property or money that cannot be used for any of the specified purposes must revert to the donor or be given to any other person (other than the recipient). (3D) To avoid doubt, subsection (3C) applies to a donation of money referred to in subsection (3)( c )(ii) to a recipient under that provision, whether made directly to the recipient or indirectly through a grant‑making philanthropic organisation. (3E) In subsections (3C) and (3D) — “governing instrument”, in relation to a recipient under subsection (3)( b )(i) or (ii), ( c ), ( d ), ( e ) or ( f ), includes the memorandum and articles of association, constitution, trust instrument or any rules or regulations governing the objects and administration of the recipient; “recipient” — ( a ) in the case of a donation referred to in subsection (3)( b )(i), means an approved museum; ( b ) in the case of a donation referred to in subsection (3)( b )(ii), means an approved recipient not being an approved museum; ( c ) in the case of a donation referred to in subsection (3)( c ), means the Government or an institution of a public character; ( d ) in the case of a donation referred to in subsection (3)( d ), means an institution of a public character or a prescribed educational, research or other institution in Singapore; or ( e ) in the case of a donation referred to in subsection (3)( e ) or ( f ), means an institution of a public character. (3F) Subject to subsection (3G), a donation referred to in subsection (3)( b ), ( c ), ( d ), ( e ) or ( f ) is eligible for a deduction under that provision even if the donor or another person receives or will receive a benefit in consequence of making the donation. (3G) Where a donor who makes a donation referred to in subsection (3)( b ), ( c ), ( d ), ( e ) or ( f ), or a person connected with the donor, receives or will receive a benefit in consequence of making the donation, a reference to the value or amount of the donation under that provision excludes an amount equivalent to the value of the benefit. (3H) The Minister may by rules — ( a ) exclude any type of benefit from the application of subsection (3G); and ( b ) provide for the basis for determining the value of any benefit under that subsection. (3I) To avoid doubt, the Comptroller may make an assessment or additional assessment under section 74 if the benefit is received only after the deduction of the donation under subsection (3) is made. (3J) In subsection (3G), a person is connected with the donor if — ( a ) the person is a relative of the donor within the meaning of section 37N(12); ( b ) the person, or a person who is the person’s relative within the meaning of section 37N(12), directly or indirectly controls the donor; ( c ) the person is controlled, directly or indirectly, by the donor; or ( d ) the person and the donor, directly or indirectly, are under the control of a common person. (3K) No approval may be granted for the purposes of subsection (3)( d ) for a donation made on or after 21 February 2017. [39/2017] (4) A deduction under subsection (3)( a )(i) is to be made in the following order: ( a ) firstly, against statutory income from the same trade, business, profession or vocation; ( b ) secondly, against statutory income from any other trade, business, profession or vocation; ( c ) thirdly, against statutory income from any other source. (5) A deduction under subsection (3)( a )(i) is to be made as far as possible in the order specified in subsection (4) from the statutory income of the first year of assessment after the year in which such loss was incurred, and, so far as it cannot be so made, then from the statutory income of the next year of assessment, and so on. (6) Where, in any year of assessment, the amount of loss incurred by any person during the year preceding the year of assessment is not fully deducted under subsection (3)( a )(ii), the balance of such loss, after deducting any amount of such loss transferred to a claimant company under section 37B or to a spouse under section 37C or 37E, or deducted against income for the immediate preceding year of assessment under section 37D(1) or any of the 3 immediate preceding years of assessment under section 37D(1A), is available for deduction against the person’s statutory income for subsequent year of assessment under subsection (3)( a )(i). [39/2017; 41/2020] (7) A deduction under this section to any person in respect of any sum allowable under subsection (3)( b ), ( c ), ( d ), ( e ) or ( f ) is only allowed against the person’s statutory income after the deduction under subsection (3)( a ) and sections 37AA, 37AB and 37N. [Act 30 of 2023 wef 30/10/2023] [Act 35 of 2024 wef 27/11/2024] (8) Subject to subsections (2), (7) and (12), the deduction to any person in respect of any sum allowable under subsection (3)( b ), ( c ), ( d ), ( e ) or ( f ) is to be allowed — ( a ) as far as possible against the person’s statutory income of the first year of assessment after the year in which the donation was made by the person; and ( b ) so far as the deduction cannot be so allowed, after deducting any of such sum transferred to a claimant company under section 37B or to a spouse under section 37C, then from the person’s statutory income of the next year of assessment, and so on, except that any balance of the donation not deducted against the person’s statutory income of the fifth year of assessment after the year of assessment relating to the basis period in which the donation was made is disregarded. (9) For the purposes of subsections (7) and (8), any sum allowable under subsection (3)( b ), ( c ), ( d ), ( e ) or ( f ) in respect of any donation made on an earlier date is deemed to have been deducted first. (10) For the purposes of subsection (3), the loss incurred during any year is computed, where the Comptroller so decides, by reference to the year ending on a day in such year which would have been adopted under section 35(4) for the computation of the statutory income of the following year of assessment if a profit had arisen. (10A) For the purposes of subs


document_id: ita-1947
provision_ref: s37A
chapter: PART 9 - ASCERTAINMENT OF ASSESSABLE INCOME
section: 37A
title:
Adjustment of capital allowances, losses or donations between income subject to tax at different rates

content:
37A. —(1) This section applies where — ( a ) a company has income subject to tax at different rates of tax for the year of assessment concerned, and there are UALD in respect of income that is subject to tax at one of those rates of tax; [Act 33 of 2022 wef 04/11/2022] ( b ) a company has income subject to tax at one rate of tax for the year of assessment concerned and income subject to tax at a different rate of tax for an earlier year of assessment, and there are UALD in respect of the second‑mentioned income; [41/2020] [Act 33 of 2022 wef 04/11/2022] ( c ) a body of persons has income subject to tax at different rates of tax for the year of assessment concerned (being the year of assessment 2023 or a subsequent year of assessment), and there are UALD in respect of income that is subject to tax at one of those rates of tax; or [Act 33 of 2022 wef 04/11/2022] ( d ) a body of persons has income subject to tax at one rate of tax for the year of assessment concerned (being the year of assessment 2023 or a subsequent year of assessment) and income subject to tax at a different rate of tax for an earlier year of assessment, and there are UALD in respect of the second-mentioned income. [Act 33 of 2022 wef 04/11/2022] (2) For the purposes of subsection (1), income may be subject to tax at different rates of tax even if the income is derived from carrying on the same trade or business. [41/2020] (3) Subsection (1)( b ) and ( d ) does not include a case where one of the rates of tax is that in section 43(1)( a ) and the other rate of tax is also that in section 43(1)( a ), but amended. [41/2020] [Act 33 of 2022 wef 04/11/2022] (4) Where the UALD relate to income of the company that is subject to tax at the lower rate of tax, then those UALD are to be deducted against the income of the company subject to tax at the higher rate of tax (if it is chargeable income) in accordance with the following provisions: ( a ) in a case where the amount of those UALD does not exceed that chargeable income multiplied by the adjustment factor — (i) that chargeable income is reduced by an amount arrived at by dividing the amount of those UALD by the adjustment factor; and (ii) the amount of those UALD is accordingly nil; ( b ) in any other case — (i) the amount of those UALD is reduced by an amount arrived at by multiplying the amount of that chargeable income by the adjustment factor, and — (A) the remaining UALD; or (B) if the remaining UALD are then reduced by one or more applications of subsection (6)( b ) — the remaining UALD (if any) after such reduction or reductions, are added to, and deemed to form part of, the corresponding allowances, losses or donations in respect of the income subject to tax at the lower rate of tax, for the next succeeding year of assessment and any subsequent year of assessment in accordance with section 23 or 37, as the case may be; and (ii) that chargeable income is accordingly nil. [41/2020] (5) Where the UALD relate to income of the company or body of persons that is subject to tax at the higher rate of tax, then those UALD are to be deducted against the income of the company or body of persons subject to tax at the lower rate of tax (if it is chargeable income) in accordance with the following provisions: ( a ) in a case where the amount of those UALD does not exceed that chargeable income divided by the adjustment factor — (i) that chargeable income is reduced by an amount arrived at by multiplying the amount of those UALD by the adjustment factor; and (ii) the amount of those UALD is accordingly nil; ( b ) in any other case — (i) the amount of those UALD is reduced by an amount arrived at by dividing the amount of that chargeable income by the adjustment factor, and — (A) the remaining UALD; or (B) if the remaining UALD are then reduced by one or more applications of subsection (6)( b ) — the remaining UALD (if any) after such reduction or reductions, are added to, and deemed to form part of, the corresponding allowances, losses or donations in respect of the income subject to tax at the higher rate of tax, for the next succeeding year of assessment and any subsequent year of assessment in accordance with section 23 or 37, as the case may be; and (ii) that chargeable income is accordingly nil. [41/2020] [Act 33 of 2022 wef 04/11/2022] (6) Where, in a case mentioned in subsection (1)( a ), the company has income subject to tax at 3 or more rates of tax (called in this subsection applicable tax rates), then for the purposes of subsection (4) or (5) — ( a ) the company may elect its income that is subject to tax at one of the applicable tax rates as its income that is subject to tax at a lower or higher rate of tax, as the case may be; ( b ) the UALD in respect of the company’s income that is subject to tax at the lower or higher rate of tax (as the case may be), that have been reduced in accordance with subsection (4)( b ) or (5)( b ), may be further deducted in accordance with that provision against the company’s remaining income that is subject to tax at an applicable tax rate; and ( c ) paragraph ( b ) continues to apply until the amount of the UALD becomes nil or the company has no more income subject to tax at an applicable rate against which the deduction may be made. [41/2020] (7) Where — ( a ) the income in respect of which there are UALD is subject to tax at the lower rate of tax; and ( b ) the company ceases to derive that income in the basis period for the year of assessment concerned, subsection (4) applies, with the necessary modifications, to the UALD mentioned in paragraph ( a ) for the purpose of deducting them against the income of the company subject to tax at the higher rate of tax (if it is chargeable income) for any year of assessment subsequent to the year of assessment concerned. [41/2020] (8) Where — ( a ) the income in respect of which there are UALD is subject to tax at the higher rate of tax; and ( b ) the company or body of persons ceases to derive that income in the basis period for the year of assessment concerned, subsection (5) applies, with the necessary modifications, to the UALD mentioned in paragraph ( a ) for the purpose of deducting them against the income of the company or body of persons subject to tax at the lower rate of tax (if it is chargeable income) for any year of assessment subsequent to the year of assessment concerned. [41/2020] [Act 33 of 2022 wef 04/11/2022] (9) Nothing in this section is to be construed as affecting the application of section 23, 37, 37AA or 37AB unless otherwise provided in this section. [41/2020] [Act 35 of 2024 wef 27/11/2024] (10) If, during the basis period for any year of assessment (called in this subsection the relevant year of assessment), a company only derives income that is exempt from tax, then subsection (5) applies, with the necessary modifications, to any year of assessment subsequent to the relevant year of assessment as if any sum allowable under section 37(3)( b ), ( c ), ( d ) or ( f ) in respect of any donation made by that company during the basis period for the relevant year of assessment were unabsorbed donation in respect of the income of a company that is subject to tax at the rate of tax specified in section 43(1)( a ). [41/2020] (11) In this section — “adjustment factor” means the factor ascertained in accordance with the formula where — ( a ) A is the higher rate of tax; and ( b ) B is the lower rate of tax; “allowances” means allowances under section 16, 17, 18B, 18C, 19, 19A, 19B, 19C, 19D, 20, 21, 22 or 23, including unabsorbed allowances that arose in any year of assessment before the year of assessment 1994; “donations” means donations that are deductible including any unabsorbed donations allowable under section 37, 37AA or 37AB; [Act 35 of 2024 wef 27/11/2024] “losses” means losses that are deductible under section 37 including unabsorbed losses incurred in respect of any year of assessment before the year of assessment 1994; “rate of tax” means — ( a ) the rate of tax under section 43(1)( a ); [Act 33 of 2022 wef 04/11/2022] ( b ) in the case of a company, the concessionary rate of tax in accordance with — (i) any order made under section 13(12); or (ii) section 43A, 43C, 43D of this Act as in force before 29 December 2016, 43D, 43F of this Act as in force before 29 December 2016, 43E, 43H of this Act as in force before 29 December 2016, 43F, 43G, 43K of this Act as in force before 29 December 2016, 43L of this Act as in force before 1 November 2006, 43M of this Act as in force before 3 December 2003, 43H, 43I, 43J, 43K, 43S of this Act as in force before 29 December 2016, 43T of this Act as in force before 29 December 2016, 43U of this Act as in force before 26 October 2017, 43V of this Act as in force before 29 December 2016, 43L, 43M, 43N, 43O, 43P, 43Q, 43R, 43S, 43T, 43U, 43V, 43W or 43X, or the regulations made under any of those sections, as the case may be; or [Act 33 of 2022 wef 04/11/2022] ( c ) in the case of a body of persons, the concessionary rate of tax in accordance with regulations made under section 43H; [Act 33 of 2022 wef 04/11/2022] “UALD” or “unabsorbed allowances, losses or donations”, in relation to the income of a company or body of persons that is subject to tax at a particular rate of tax, means the balance of such allowances, losses or donations after deducting the expenses, donations, allowances or losses allowable under this Act against that income. [37B [41/2020; 27/2021] [Act 33 of 2022 wef 04/11/2022]


document_id: ita-1947
provision_ref: s37AA
chapter: PART 9 - ASCERTAINMENT OF ASSESSABLE INCOME
section: 37AA
title:
Deduction for donation of money by person related to or connected with company approved under section 13O, limited partnership approved under section 13OA or person, master fund, etc., approved under section 13U

content:
37AA. —(1) For the purpose of ascertaining the assessable income for any year of assessment of a person mentioned in subsection (2) that is approved as an approved donor for the purpose of this section, there is to be deducted an amount computed in accordance with subsection (4) of all donations of money for a purpose specified by the Minister or authorised body to the approved recipients, and made in the year immediately preceding the year of assessment, by the approved donor to all persons approved as approved recipients for the purpose of this section. (2) The approved donor is one that is related (directly or indirectly) in accordance with rules made under subsection (13) to any of the following: ( a ) a company incorporated and resident in Singapore and approved under section 13O (called in this section a section 13O company); ( aa ) a limited partnership registered under the Limited Partnerships Act 2008 and approved under section 13OA (called in this section a section 13OA limited partnership); [Act 35 of 2024 wef 01/01/2025] ( b ) a person, master fund, feeder fund, SPV, master‑feeder fund structure, master‑feeder fund‑SPV structure or master fund‑SPV structure approved under section 13U (called in this section a section 13U vehicle). (3) Any deduction under subsection (1) is made only after the deduction (if any) under section 37(3)( a ). (4) The amount of deduction under subsection (1) in any year of assessment for any approved donor must not exceed the lower of the following: ( a ) the total amount of all donations of money made by the approved donor to approved recipients in the year immediately preceding the year of assessment; ( b ) 40% of the statutory income of the approved donor for that year of assessment. (5) Any balance of the amount that is not deducted is not available as a deduction against the approved donor’s income for any subsequent year of assessment and is disregarded. (6) The Minister or an authorised body may, during the period from 1 January 2024 to 31 December 2028 (both dates inclusive) — ( a ) approve a person mentioned in subsection (2) as an approved donor; and ( b ) approve a person or a class of persons as an approved recipient or approved recipients. (7) The approval under subsection (6) is subject to any condition that the Minister or authorised body may impose. (8) There must not be more than one approved donor at any one time for each section 13O company, section 13OA limited partnership or section 13U vehicle. [Act 35 of 2024 wef 01/01/2025] (9) Any deduction under subsection (1) is subject to any condition precedent or condition subsequent that the Minister or authorised body may impose on the fund manager managing the funds of the section 13O company, the section 13OA limited partnership or the section 13U vehicle concerned. [Act 35 of 2024 wef 01/01/2025] (10) If the fund manager fails to comply with any of the conditions subsequent, the deduction allowed to the approved donor is treated as the approved donor’s income for the year of assessment in which the Comptroller discovers the non-compliance. (11) No deduction may be made under subsection (1) to an approved donor in respect of any donation made to an approved recipient unless the approved donor provides to the approved recipient any information within the time and in the form and manner specified by the Comptroller. (12) Section 37(2), (3C), (3E) (but not the definition of “recipient”), (3F), (3G), (3H), (3I), (3J) and (10A) (except paragraph ( b )) applies in relation to a donation of money under subsection (1) as those provisions apply in relation to a donation mentioned in section 37(3)( b ), ( c ), ( d ), ( e ) or ( f ), subject to the necessary modifications and the following other modifications: ( a ) a reference in section 37(3C), (3F), (3G) and (3J) to a donor is to an approved donor; ( b ) a reference in section 37(3C) to a recipient under section 37(3)( b )(i) or (ii), ( c ), ( d ), ( e ) or ( f ) is to an approved recipient; ( c ) a reference in section 37(10A)( a ) and ( c ) to the person making the donation is to the approved donor; ( d ) such other modifications as may be prescribed by rules made under subsection (13). [Act 35 of 2024 wef 27/11/2024] (13) The Minister may make rules with respect to the following matters: ( a ) the manner in which a person must be related (directly or indirectly) to a section 13O company, a section 13OA limited partnership or a section 13U vehicle, to be an approved donor; [Act 35 of 2024 wef 01/01/2025] ( b ) the conditions of approval of an approved recipient; ( c ) the matters in section 37(3H) as applied by subsection (12); ( d ) any other matter for giving full effect to or for carrying out the purposes of this provision. (14) In this regulation, “feeder fund”, “master‑feeder fund structure”, “master‑feeder fund‑SPV structure”, “master fund‑SPV structure”, “master fund” and “SPV” have the meanings given by section 13U. [Act 30 of 2023 wef 01/01/2024] [Act 35 of 2024 wef 01/01/2025]


document_id: ita-1947
provision_ref: s37AB
chapter: PART 9 - ASCERTAINMENT OF ASSESSABLE INCOME
section: 37AB
title: Deduction for donation of money for overseas emergency humanitarian assistance
content:
37AB. —(1) For the purpose of ascertaining the assessable income for any year of assessment of a person (called in this section the donor), there is to be deducted an amount computed in accordance with subsection (4) of all qualifying overseas cash donations made by the donor in the year immediately preceding the year of assessment. (2) Subsection (1) only applies to qualifying overseas cash donations made during the period from 1 January 2025 to 31 December 2028 (both dates inclusive). (3) Any deduction under subsection (1) is made only after the deduction (if any) under sections 37(3)( a ) and 37AA. (4) The amount of deduction under subsection (1) in any year of assessment must not exceed the lower of the following: ( a ) the total amount of all qualifying overseas cash donations made by the donor in the year immediately preceding the year of assessment; ( b ) 40% of the statutory income of the donor, after subtracting the amount of any deduction made by the donor under section 37AA, for that year of assessment. (5) Any balance of the amount that is not deducted is not available as a deduction against the donor’s income for any subsequent year of assessment and is disregarded. (6) Section 37(2), (3C), (3E) (but not the definition of “recipient”), (3F), (3G), (3H), (3I), (3J) and (10A) applies in relation to a qualifying overseas cash donation as those provisions apply in relation to a donation mentioned in section 37(3)( b ), ( c ), ( d ), ( e ) or ( f ), subject to the necessary modifications and the following other modifications: ( a ) a reference in section 37(3C) to a recipient under section 37(3)( b )(i) or (ii), ( c ), ( d ), ( e ) or ( f ) is to the designated charity to which the qualifying overseas cash donation is made; ( b ) a reference in section 37(10A) to a person making the donation is to the donor. (7) The Minister may make rules with respect to the following matters: ( a ) the matters in section 37(3H) as applied by subsection (6); ( b ) any other matter for giving full effect to or for carrying out the purposes of this provision. (8) In this section — “designated charity” means a charity (as defined by section 2(1) of the Charities Act 1994) which has been designated by the Minister or an authorised body for the purpose of this section; “qualifying overseas cash donation” means a donation made — ( a ) to a designated charity; ( b ) in response to a fund-raising appeal for which a permit has been granted by the Commissioner of Charities in accordance with regulations made under the Charities Act 1994; and ( c ) to provide humanitarian assistance connected with an emergency or event in a country outside Singapore, approved by the Minister or an authorised body for the purposes of this section. [Act 35 of 2024 wef 27/11/2024]


document_id: ita-1947
provision_ref: s37B
chapter: PART 9 - ASCERTAINMENT OF ASSESSABLE INCOME
section: 37B
title: Group relief for Singapore companies
content:
37B. —(1) Subject to the provisions of this section, a transferor company may transfer any qualifying deduction for any year of assessment to a claimant company of the same group which has claimed the qualifying deduction against its assessable income for the same year of assessment. (2) A transfer of a qualifying deduction for any year of assessment may be made only if the transferor company and the claimant company, for that year of assessment — ( a ) are members of the same group on the last day of the basis period; ( b ) have accounting periods ending on the same day; and ( c ) have made an election under subsection (11). (3) For the purposes of this section, 2 Singapore companies are members of the same group if — ( a ) at least 75% of the total number of issued ordinary shares in one company are beneficially held, directly or indirectly, by the other; or ( b ) at least 75% of the total number of issued ordinary shares in each of the 2 companies are beneficially held, directly or indirectly, by a third Singapore company. (4) A Singapore company that beneficially holds, directly or indirectly, at least 75% of the total number of issued ordinary shares in another Singapore company, does not satisfy subsection (3) unless additionally it is beneficially entitled to at least 75% of — ( a ) any residual profits of the other company available for distribution to that company’s equity holders; and ( b ) any residual assets of the other company available for distribution to that company’s equity holders on a winding up. (5) For the purpose of subsection (3), where a Singapore company beneficially owns, directly or indirectly, a fraction of the total number of issued ordinary shares of a second Singapore company which in turn beneficially owns, directly or indirectly, a fraction of the total number of issued ordinary shares of a third Singapore company, the Singapore company is deemed to have a beneficial ownership of the number of issued ordinary shares of the third Singapore company equal to such fraction of the total number as results from the multiplication of those 2 fractions; and where the third Singapore company beneficially owns, directly or indirectly, a fraction of the total number of issued ordinary shares of a fourth Singapore company, the Singapore company is deemed to have a beneficial ownership of the number of issued ordinary shares of the fourth Singapore company equal to such fraction of the total number as results from the multiplication of those 3 fractions, and so on. (6) A transfer of qualifying deduction may be — ( a ) made by a transferor company to more than one claimant company, provided that the amount of qualifying deduction transferred is fully deducted against the assessable income of the first claimant company before any excess qualifying deduction is transferred and deducted against the assessable income of the second claimant company and so on; or ( b ) claimed by a claimant company from more than one transferor company, provided that the amount of qualifying deduction transferred from the first transferor company is fully deducted against the assessable income of the claimant company before any qualifying deduction transferred from a second transferor company is deducted against the assessable income of the claimant company and so on. (7) Qualifying deductions must be transferred to a claimant company in accordance with the priority specified in the election made under subsection (11), and in the following order: ( a ) any allowance specified in subsection (14)( a ); ( b ) any loss specified in subsection (14)( b ); ( c ) any donation specified in subsection (14)( c ). (8) Where, in any year of assessment, a transfer of qualifying deduction cannot be effected in accordance with the order of priority specified by any transferor company or claimant company in its election made under subsection (11), the transfer is to be allowed in such manner as the Comptroller thinks reasonable and proper. (9) Subject to subsection (10), the amount of qualifying deduction that may be transferred to a claimant company from a transferor company for any year of assessment is — ( a ) the available assessable income of the claimant company equal to where A is the number of days in the continuous period ending on the last day of the basis period for that year of assessment during which the companies are members of the same group or, if the continuous periods of the transferor company and the claimant company are different, the number of days in the shorter of the continuous periods; B is the number of days in the basis period of the claimant company for that year of assessment; and C is the assessable income of the claimant company for that year of assessment; or ( b ) the available qualifying deduction of the transferor company equal to where A has the meaning given by paragraph ( a ); D is the number of days in the basis period of the transferor company for that year of assessment; and E is the amount of qualifying deduction of the transferor company for that year of assessment, whichever is the lower. (10) Where, for any year of assessment, there are 2 or more — ( a ) claims for any qualifying deduction by a claimant company, the available assessable income of the claimant company is, for the purpose of subsection (9)( a ), where A, B and C have the meanings given by subsection (9)( a ); and F is the aggregate of the amounts of qualifying deductions previously claimed from any other transferor company for the same year of assessment, if any; ( b ) transfers of any qualifying deduction by a transferor company, the available qualifying deduction of the transferor company is, for the purpose of subsection (9)( b ), where A, D and E have the meanings given by subsection (9)( b ); and G is the aggregate of the amounts of qualifying deductions previously transferred to any other claimant company for the same year of assessment, if any. (11) Every transferor company and every claimant company of the same group must, at the time of lodgment of their returns of income for any year of assessment or within such further time as the Comptroller may allow, make an irrevocable election to transfer or claim qualifying deductions, as the case may be. (12) An election under subsection (11) must be accompanied by — ( a ) such particulars as the Comptroller may require; and ( b ) a list of companies, in order of priority, to which qualifying deductions would be transferred or from which such deductions would be claimed, as the case may be. (13) Despite subsection (11), where at the time of furnishing its return of income under section 62(1) for any year of assessment — ( a ) a company has assessable income, but is subsequently determined by the Comptroller to have any qualifying deduction for that year of assessment; or ( b ) a company has any qualifying deduction, but is subsequently determined by the Comptroller to have assessable income for that year of assessment, the Comptroller may — ( c ) allow the company to make an election under subsection (11); and ( d ) allow any company of the same group to include that company in its list of companies submitted previously by it under subsection (11), within such time and in such manner as the Comptroller may determine. (14) For the purposes of this section, subject to subsection (15) and sections 35, 37 and 37A, qualifying deductions, in relation to a transferor company, for each year of assessment, are — ( a ) any allowance falling to be made under section 16, 17, 18A (repealed), 18B, 18C, 19, 19A, 19B, 19C, 19D or 20 for that year of assessment that is in excess of the transferor company’s income from all sources chargeable to tax for that year of assessment; ( b ) any loss incurred by the transferor company in the basis period for that year of assessment in any trade or business which, if it had been a profit would have been assessable under this Act, and which is not deducted for that year of assessment because of insufficiency of statutory income of the transferor company; and ( c ) any donation made by the transferor company under section 37(3)( b ), ( c ), ( d ) or ( f ) in the year preceding that year of assessment that is not deducted for that year of assessment because of insufficiency of statutory income of the transferor company. (15) Despite subsection (14), the following companies are not entitled to transfer the following items of qualifying deductions: ( a ) any company to which section 10D applies, in respect of qualifying deductions under subsection (14)( a ) (except in relation to allowances falling under sections 16, 17, 18B and 18C) and ( b ); ( b ) any company to which section 97D or 97G of the Economic Expansion Incentives (Relief from Income Tax) Act 1967 in force immediately before 28 April 2004 or section 97V of the Economic Expansion Incentives (Relief from Income Tax) Act 1967 in force immediately before 19 April 2016 applies, in respect of qualifying deductions under subsection (14)( b ) where the loss is deemed to be a loss incurred from a trade or business for the purposes of any of those sections; ( c ) any company, in respect of qualifying deductions under subsection (14) relating to any income that is fully exempt from tax under the provisions of this Act or the Economic Expansion Incentives (Relief from Income Tax) Act 1967; ( d ) any company, in respect of qualifying deductions under subsection (14) relating to any income the tax on which is remitted under the provisions of this Act, unless the Minister otherwise approves. [37/2014; 11/2016; 32/2019] (15A) This section does not entitle — ( a ) a company that is a life insurer to transfer to another company that is a life insurer, any qualifying deduction relating to any income from a participating fund of the firstmentioned life insurer that is apportioned to policyholders in accordance with regulations made under section 43(9) or 43C; or ( b ) a company that is a life insurer to claim any qualifying deduction of another company that is a life insurer against any income of the firstmentioned insurer from a participating fund that is apportioned to policyholders in accordance with regulations made under section 43(9) or 43C. [27/2021] (16) Despite subsections (9) and (10), where the Comptroller discovers that any transfer or claim of qualifying deduction which has been made from or to any company is or has become excessive, the Comptroller may make an assessment upon the company under section 74 on the amount which, in the Comptroller’s opinion, ought to have been charged to tax. (17) Section 37A applies, with the necessary modifications, to the transfer of any qualifying deduction from a transferor company to a claimant company, where applicable, and for the purpose of such application, any reference in section 37A(4) and (5) to — ( a ) unabsorbed allowances, losses or donations is a reference to qualifying deductions; ( b ) corresponding allowances, losses or donations is a reference to allowances, losses or donations; ( c ) income of a company subject to tax at a higher or lower rate of tax (as the case may be) is a reference to income of a transferor company subject to tax at a higher or lower rate of tax, respectively; and ( d ) chargeable income of the company is a reference to chargeable income of a claimant company. [41/2020] (18) For the purposes of this section, the Minister may make regulations to provide generally for giving full effect to or for carrying out the purposes of this section. (19) In this section — “assessable income”, in relation to a claimant company or transferor company, means assessable income of the company as determined under section 37 after deducting any deduction allowed under section 37F and investment allowance under Part 8 of the Economic Expansion Incentives (Relief from Income Tax) Act 1967; [Act 39 of 2023 wef 29/12/2023] “claimant company” or “transferor company” means a Singapore company that claims or tra


document_id: ita-1947
provision_ref: s37C
chapter: PART 9 - ASCERTAINMENT OF ASSESSABLE INCOME
section: 37C
title: Transfer of qualifying deduction between spouses
content:
37C. —(1) Subject to the provisions of this section, an individual may transfer any qualifying deduction for any year of assessment to a spouse living with him or her who has claimed the qualifying deduction against her or his assessable income for the same year of assessment. (1A) No transfer may be made under subsection (1) of — ( a ) any allowance made to the individual for the year of assessment 2016 or a subsequent year of assessment; ( b ) any loss incurred by the individual in the basis period for the year of assessment 2016 or a subsequent year of assessment; or ( c ) any donation made by the individual in the year immediately preceding the year of assessment 2016 or a subsequent year of assessment. [37/2014] (1B) No transfer of any qualifying deduction under subsection (1) may be made for the year of assessment 2018 or any subsequent year of assessment. [37/2014] (2) Qualifying deductions are to be transferred to a claimant spouse in the following order: ( a ) any allowance specified in subsection (8)( a ); ( b ) any loss specified in subsection (8)( b ); ( c ) any donation specified in subsection (8)( c ). (3) For each type of qualifying deduction to be transferred in the order specified in subsection (2), any allowance, loss or donation (as the case may be) arising to the transferor in an earlier year of assessment is to be transferred first before any allowance, loss or donation arising to the transferor in a later year of assessment. (4) The amount of qualifying deduction to be transferred by a transferor to a claimant spouse is the lower of — ( a ) the amount of qualifying deduction available for transfer; and ( b ) the assessable income of the claimant spouse. (5) Any individual transferring or claiming a qualifying deduction under this section must notify the Comptroller and make an election to transfer or claim qualifying deductions (as the case may be) not later than 30 days from the date of the service of the notice of assessment on the individual or his or her spouse, whichever is the later. (6) An election made by an individual under subsection (5) is irrevocable unless the Comptroller otherwise allows and must be accompanied by such particulars as the Comptroller may require. (7) Where the Comptroller discovers that any transfer or claim of qualifying deduction which has been made from or to any individual is or has become excessive, the Comptroller may make an assessment upon that individual under section 74 on the amount which, in the Comptroller’s opinion, ought to have been charged to tax. (8) For the purposes of this section, subject to sections 35 and 37, qualifying deductions, in relation to an individual, for each year of assessment, are — ( a ) any allowance falling to be made under section 16, 17, 18B, 18C, 19, 19A, 19C, 19D or 20 that is in excess of the individual’s income from all sources chargeable with tax for that year of assessment; ( b ) any loss incurred by the individual in any trade, business, profession or vocation which, if it had been a profit, would have been assessable under this Act, and which is not deducted for that year of assessment because of insufficiency of statutory income of the individual; and ( c ) any donation made by the individual under section 37(3)( b ), ( c ), ( e ) or ( f ) that is not deducted for that year of assessment because of insufficiency of statutory income of the individual. [37D


document_id: ita-1947
provision_ref: s37D
chapter: PART 9 - ASCERTAINMENT OF ASSESSABLE INCOME
section: 37D
title: Carry‑back of capital allowances and losses
content:
37D. —(1) Subject to the provisions of this section, a person may deduct any qualifying deduction for any year of assessment against the person’s assessable income for the immediate preceding year of assessment. (1A) Subject to the other provisions of this section, a person may, instead of deducting any qualifying deduction for the year of assessment 2020 or 2021 (called in this section the subject YA) in accordance with subsection (1), deduct the qualifying deduction for the subject YA against the person’s assessable income for the 3 years of assessment immediately preceding the subject YA. [27/2021] (1B) A qualifying deduction for the subject YA under subsection (1A) must be deducted in the following order: ( a ) the qualifying deduction must first be made against the person’s assessable income for the third year of assessment immediately preceding the subject YA; ( b ) any balance of the qualifying deduction after the deduction in paragraph ( a ) must then be made against the person’s assessable income for the second year of assessment immediately preceding the subject YA; ( c ) any balance of the qualifying deduction after the deduction in paragraph ( b ) must then be made against the person’s assessable income for the year of assessment immediately preceding the subject YA. [27/2021] (1C) Where a person is entitled to make 2 or more of the qualifying deductions set out in the first column of the following table against the person’s assessable income for a particular year of assessment, then the deductions must be made in the order set out in the second column of the table, and each deduction must as far as possible be made against such assessable income (or any balance of such income after an earlier deduction) by the amount set out opposite that deduction in the third column of the table: First
column Second
column Third
column A qualifying deduction under subsection (1) First Full amount of the qualifying deduction A qualifying deduction for the year of assessment 2020 under subsection (1A) Second Full amount of the qualifying deduction or its balance as described in subsection (1B) A qualifying deduction for the year of assessment 2021 under subsection (1A) Third Full amount of the qualifying deduction or its balance as described in subsection (1B) [27/2021] (1D) Any election made by a person under subsection (6) for the deduction of any qualifying deduction for the year of assessment 2020 to be in accordance with subsection (1A) as in force immediately before 17 February 2021, is treated as an election made for the deduction of such qualifying deduction to be in accordance with subsection (1A) as in force on that date. [27/2021] (2) Qualifying deductions are to be deducted in the following order: ( a ) any allowance specified in subsection (9)( a ); ( b ) any loss specified in subsection (9)( b ). (3) The amount of qualifying deduction to be deducted for any year of assessment is the lower of — ( a ) the amount of qualifying deduction available for deduction for that year of assessment; and ( b ) the assessable income of the person for the immediate preceding year of assessment. (3A) Despite subsection (3), where a person makes an election under subsection (6) for the deduction of any qualifying deduction for the year of assessment 2020 or 2021 in accordance with subsection (1A), the amount of the qualifying deduction to be deducted against the assessable income for any of the 3 years of assessment immediately preceding it is the lower of — ( a ) the amount of the qualifying deduction available for deduction for the second‑mentioned year of assessment under subsection (1B); and ( b ) the amount of the person’s assessable income for the second‑mentioned year of assessment or any balance of the assessable income as determined in accordance with the table in subsection (1C) against which the deduction may be made. [41/2020; 27/2021] (4) Subject to the provisions of this section, section 37A (as it applies in a case mentioned in section 37A(1)( b )) applies, with the necessary modifications, to the deduction of any qualifying deduction by any company for any year of assessment against its assessable income for the immediate preceding year of assessment or (as the case may be) any of the 3 immediate preceding years of assessment, as if — ( a ) the qualifying deduction for the year of assessment is qualifying deduction for an earlier year of assessment; ( b ) the income for the immediate preceding year of assessment or (as the case may be) any of the 3 immediate preceding years of assessment is income for the year of assessment concerned; and ( c ) in section 37A(4) and (5) — (i) a reference to unabsorbed allowances, losses or donations or UALD is a reference to qualifying deduction; (ii) a reference to corresponding allowances, losses or donations is a reference to allowances or losses; and (iii) a reference to chargeable income of the company is a reference to assessable income for the immediate preceding year of assessment or (as the case may be) any of the 3 immediate preceding years of assessment of the company. [41/2020] (4AA) Subject to the provisions of this section, section 37A (as it applies in a case mentioned in section 37A(1)( d )) applies, with the necessary modifications, to the deduction of any qualifying deduction by a body of persons for the year of assessment 2023 or a subsequent year of assessment, against its assessable income for the immediate preceding year of assessment, as if — ( a ) the qualifying deduction for the year of assessment were a qualifying deduction for an earlier year of assessment; ( b ) the income for the immediate preceding year of assessment were income for the year of assessment concerned; and ( c ) in section 37A(5) — (i) a reference to UALD were a reference to the qualifying deduction; (ii) a reference to corresponding allowances, losses or donations were a reference to allowances or losses; and (iii) a reference to chargeable income of the body of persons were a reference to assessable income for the immediate preceding year of assessment of the body of persons. [Act 33 of 2022 wef 04/11/2022] (4A) For the purposes of applying section 37A to the provisions of this section under subsection (4) or (4AA), any reference to “rate of tax” in section 37A is a reference to — ( a ) the rate of tax under section 43(1)( a ) applicable to the year of assessment for which the assessable income is deducted by any qualifying deduction; ( b ) the concessionary rate of tax applicable to the year of assessment for which any allowance specified in subsection (9)( a ) is made to or any loss specified in subsection (9)( b ) is incurred by a company or body of persons; or [Act 33 of 2022 wef 04/11/2022] ( c ) the concessionary rate of tax applicable to the assessable income which is deducted by any qualifying deduction, as the case may be. [41/2020] [Act 33 of 2022 wef 04/11/2022] (5) The amount of qualifying deduction to be deducted for any year of assessment must not exceed $100,000; and in the case of a company or body of persons is determined by the formula where A is any amount deducted against assessable income subject to tax at the rate of tax specified in section 43(1)( a ); and B is any amount deducted against assessable income subject to tax at any concessionary rate of tax divided by the adjustment factor for that concessionary rate of tax. [Act 33 of 2022 wef 04/11/2022] (5A) [ Deleted by Act 39 of 2017 ] (6) Any person deducting any qualifying deduction for any year of assessment against the person’s assessable income for the immediate preceding year of assessment under subsection (1) or any of the 3 immediate preceding years of assessment under subsection (1A) must notify the Comptroller and make an election to make such deduction — ( a ) in the case of an individual, not later than 30 days from the date of service of the notice of assessment on the individual; and ( b ) in the case of any other person, not later than the time of lodgment of the person’s return of income for the year of assessment, or within such further time as the Comptroller may allow. [39/2017; 41/2020] (7) Any election made under subsection (6) is irrevocable and must be accompanied by such particulars as the Comptroller may require. (8) Where the Comptroller discovers that any deduction made under subsection (1) against the assessable income of any person for any year of assessment is or has become excessive, the Comptroller may make an assessment on the person on the amount which, in the Comptroller’s opinion, ought to have been charged to tax in that year of assessment within 7 years (if that year of assessment is 2007 or a preceding year of assessment) or 5 years (if that year of assessment is 2008 or a subsequent year of assessment) after the expiry of that year of assessment. [41/2020] (8A) Despite subsection (8), where the Comptroller discovers that any deduction made under subsection (1A) of any qualifying deduction for a subject YA against the assessable income of a person for the year of assessment 2017, 2018, 2019 or 2020 (whichever is applicable) has become excessive, the Comptroller may make an assessment on the person on the amount which, in the Comptroller’s opinion, ought to have been charged to tax in the year of assessment 2017, 2018, 2019 or 2020, as the case may be — ( a ) in the case of a qualifying deduction for the year of assessment 2020 — on or before 31 December 2024; or ( b ) in the case of a qualifying deduction for the year of assessment 2021 — on or before 31 December 2025. [27/2021] (9) For the purposes of this section, subject to sections 35, 37 and 37A, qualifying deductions, in relation to any person, for each year of assessment, are — ( a ) any allowance falling to be made under section 16, 17, 18B, 18C, 19, 19A, 19B, 19C, 19D or 20 that is in excess of the person’s income from all sources chargeable to tax for that year of assessment and is not transferred under section 37B or 37C; and ( b ) any loss incurred by the person in any trade, business, profession or vocation which is not deducted for that year of assessment because of insufficiency of statutory income of the person and is not transferred under section 37B or 37C. (10) Despite subsection (9), any loss deemed to be a loss incurred from a trade or business for the purpose of section 97V of the Economic Expansion Incentives (Relief from Income Tax) Act 1967 in force immediately before 19 April 2016 is not deductible. [11/2016] (11) Despite subsection (9), any allowance specified in subsection (9)( a ) made to a person for any year of assessment is not deductible against assessable income for the immediate preceding year of assessment or (as the case may be) any of the 3 immediate preceding years of assessment if the person did not carry on that trade, business or profession in the basis period for the year of assessment in which the allowance is claimed. [39/2017; 41/2020] (12) Despite subsection (9), any allowance specified in subsection (9)( a ) made to or any loss specified in subsection (9)( b ) incurred by a company for any year of assessment is not deductible against income for the immediate preceding year of assessment or (as the case may be) any of the 3 immediate preceding years of assessment unless the Comptroller is satisfied that the shareholders of the company on the first day of the year in which the allowances arose or in which the loss was incurred (as the case may be) were substantially the same as the shareholders of the company on the last day of the year of assessment in which the allowance is claimed. [39/2017; 41/2020] (13) For the purposes of subsection (12) — ( a ) the shareholders of a company at any date are not deemed to be substantially the same as the shareholders at any other date unless, on both those dates, not less than 50% of the total number of issued shares of the company are held by or on behalf of the same persons; ( b ) shares


document_id: ita-1947
provision_ref: s37E
chapter: PART 9 - ASCERTAINMENT OF ASSESSABLE INCOME
section: 37E
title: Carry‑back of capital allowances and losses between spouses
content:
37E. —(1) Subject to the provisions of this section, an individual may transfer any qualifying deduction for any year of assessment to a spouse living with him or her who has claimed any qualifying deduction under this section against her or his assessable income for the immediate preceding year of assessment. (1AA) No transfer may be made under subsection (1) of — ( a ) any allowance made to the individual for the year of assessment 2016 or a subsequent year of assessment; or ( b ) any loss incurred by the individual in the basis period for the year of assessment 2016 or a subsequent year of assessment. [37/2014] (1A) [ Deleted by Act 33 of 2022 wef 04/11/2022 ] (1B) [ Deleted by Act 33 of 2022 wef 04/11/2022 ] (1C) [ Deleted by Act 33 of 2022 wef 04/11/2022 ] (2) Qualifying deductions are to be transferred to a claimant spouse in the following order: ( a ) any allowance specified in subsection (10)( a ); ( b ) any loss specified in subsection (10)( b ). (3) The amount of qualifying deduction for any year of assessment to be transferred by a transferor to a claimant spouse is the lower of — ( a ) the amount of qualifying deduction available for transfer for that year of assessment; and ( b ) the assessable income of the claimant spouse for the immediate preceding year of assessment. (3A) [ Deleted by Act 33 of 2022 wef 04/11/2022 ] (4) The amount of qualifying deduction for any year of assessment to be transferred by a transferor to a claimant spouse must not exceed an amount equal to where A is any amount deducted by the transferor against his or her assessable income for the immediate preceding year of assessment under section 37D. (4A) [ Deleted by Act 33 of 2022 wef 04/11/2022 ] (5) No transfer is allowed under subsection (1) in any year of assessment if the transferor has assessable income for the immediate preceding year of assessment but no claim for relief has been made under section 37D. [Act 33 of 2022 wef 04/11/2022] (6) No transfer is allowed under subsection (1) in any year of assessment if the claimant spouse has assessable income for the year of assessment but no transfer of any qualifying deduction from the transferor to the claimant spouse has been made under section 37C. [Act 33 of 2022 wef 04/11/2022] (7) Any individual transferring or claiming a qualifying deduction under this section must notify the Comptroller and make an election to transfer or claim qualifying deductions (as the case may be) not later than 30 days from the date of the service of the notice of assessment on the individual or his or her spouse, whichever is the later. (8) An election made by an individual under subsection (7) is irrevocable and must be accompanied by such particulars as the Comptroller may require. (9) Where the Comptroller discovers that any transfer of qualifying deduction under this section against the assessable income of a claimant spouse for any year of assessment is or has become excessive, the Comptroller may make an assessment on the claimant spouse on the amount which, in the Comptroller’s opinion, ought to have been charged to tax in that year of assessment within 7 years (if that year of assessment is 2007 or a preceding year of assessment) or 5 years (if that year of assessment is 2008 or a subsequent year of assessment) after the expiry of that year of assessment. (9A) [ Deleted by Act 33 of 2022 wef 04/11/2022 ] (10) For the purposes of this section, subject to sections 35 and 37, qualifying deductions, in relation to an individual, for each year of assessment, are — ( a ) any allowance falling to be made under section 16, 17, 18B, 18C, 19, 19A, 19C, 19D or 20 that is in excess of the individual’s income from all sources chargeable to tax for that year of assessment and is not deducted under section 37D or transferred under section 37C; and ( b ) any loss incurred by the individual in any trade, business, profession or vocation which is not deducted for that year of assessment because of insufficiency of statutory income of the individual and is not deducted under section 37D or transferred under section 37C. (11) Despite subsection (10), any loss deemed to be a loss incurred from a trade or business for the purpose of section 97V of the Economic Expansion Incentives (Relief from Income Tax) Act 1967 in force immediately before 19 April 2016 is not transferable. (12) Despite subsection (10), any allowance specified in subsection (10)( a ) made to a transferor for any year of assessment is not transferable if the transferor did not carry on that trade, business or profession in the basis period for the immediate preceding year of assessment. [Act 33 of 2022 wef 04/11/2022] (13) In this section, “assessable income”, in relation to an individual, means assessable income of the individual as determined under section 37 after deducting any deductions claimed under sections 37C and 37D. [37F


document_id: ita-1947
provision_ref: s37F
chapter: PART 9 - ASCERTAINMENT OF ASSESSABLE INCOME
section: 37F
title: Deduction for incremental expenditure on research and development
content:
37F. —(1) Subject to this section, where any company incurs during the basis period for any year of assessment between the year of assessment 2010 and the year of assessment 2016 (both years inclusive) any incremental qualifying research and development expenditure, then there is to be allowed to that company, on due claim, a deduction against its assessable income computed in accordance with this section. (2) For the purposes of this section, the company must keep an account to be known as its research and development account. (3) If — ( a ) the company derives any income chargeable to tax under this Act during the basis period for any year of assessment between the year of assessment 2009 and the year of assessment 2010 (both years inclusive); and ( b ) the amount standing to its research and development account on the last day of that basis period is less than $300,000, then there must be credited to the research and development account on the last day of that basis period the lowest of — ( c ) an amount computed in accordance with the specified formula; ( d ) the difference between $300,000 and the amount standing to the research and development account on the last day of that basis period; and ( e ) $150,000. (4) For the purposes of subsection (3), the specified formula means — where A is the assessable income of the company for the year of assessment; B is the amount of deduction allowed against the assessable income of the company under subsection (5) for the year of assessment (if applicable); C is the amount of investment allowance deducted under Part 8 of the Economic Expansion Incentives (Relief from Income Tax) Act 1967 against the chargeable income of the company for the year of assessment, if any; D is the amount of qualifying deduction transferred to the company under section 37B (if any) and qualifying deduction allowed to the company under section 37D for the year of assessment, if any; and E is the amount of income of the company not charged to tax under section 43(6) or (6C) for the year of assessment. [45/2018] (5) Where on the first day of the basis period for any year of assessment between the year of assessment 2010 and the year of assessment 2016 (both years inclusive), the research and development account of the company is in credit, and — ( a ) the company has assessable income for that year of assessment; and ( b ) the company has incurred incremental qualifying research and development expenditure during that basis period, then there is to be deducted from the assessable income of the company for that year of assessment an amount equal to the lowest of — ( c ) the incremental qualifying research and development expenditure incurred by that company during the basis period; ( d ) the amount of credit standing in the research and development account as at the first day of the basis period; and ( e ) the assessable income of the company for that year of assessment. (6) As soon as an amount is deducted against the assessable income of a company under subsection (5), the research and development account must be debited with such amount. (7) Any deduction under this section must so far as possible be made against the part of its assessable income that is subject to the highest rate of tax, and any remaining balance of the deduction must so far as possible be made against the part of its assessable income that is subject to the next highest rate of tax, and so on. (8) For the purpose of this section, the Minister may make regulations to give effect to or for carrying out the purposes of this section. (9) A company to which a deduction has been given under this section must deliver to the Comptroller a copy of the audited account made up to any date specified by the Comptroller whenever called upon to do so by written notice. (9A) No deduction is allowed to a company under this section for any year of assessment if a deduction for that expenditure has been allowed under section 14D(2) for that year of assessment. (10) In this section, unless the context otherwise requires — “assessable income”, in relation to a company for any year of assessment, means the remainder of its statutory income for the year of assessment after making the deductions under sections 37 and 37A; “base qualifying research and development expenditure” means the amount of qualifying research and development expenditure incurred in the base year; “base year” — ( a ) in relation to a company incorporated in the basis period relating to the year of assessment 2009 or any subsequent year of assessment, means the basis period in which the company is incorporated; or ( b ) in relation to any other company, means the basis period relating to the year of assessment 2008; “incremental qualifying research and development expenditure”, in relation to the basis period for any year of assessment, means the excess of qualifying research and development expenditure incurred during the basis period relating to the year of assessment over the base qualifying research and development expenditure; “qualifying research and development expenditure” means any research and development expenditure which –– ( a ) qualifies for deduction under section 14C; ( b ) is incurred in respect of research and development activities carried out in Singapore; and ( c ) is not funded by any grant or subsidy from the Government or a statutory board. [37G


document_id: ita-1947
provision_ref: s37G
chapter: PART 9 - ASCERTAINMENT OF ASSESSABLE INCOME
section: 37G
title: Cash payout under Productivity and Innovation Credit Scheme
content:
37G. —(1) Subject to this section, where any qualifying person has incurred expenditure — ( a ) during the basis period relating to the year of assessment 2011 or the year of assessment 2012; or ( b ) during any quarter of a basis period relating to the year of assessment 2013, the year of assessment 2014, the year of assessment 2015, the year of assessment 2016, the year of assessment 2017 or the year of assessment 2018, for which a deduction or an allowance is allowable or can be made to the qualifying person under any of the provisions of this Act mentioned in subsection (2A) (as qualified by that subsection), the qualifying person may, in lieu of one or more of the deductions or allowances or any part thereof, and in respect of — ( c ) the expenditure qualifying for it or them; or ( d ) any part of such expenditure, (called in this section the selected expenditure) the total amount of which (together with the cash price of any PIC automation equipment or intellectual property rights in respect of which an election under subsection (4A) is made at the same time) is at least $400, make an irrevocable written election for a cash payout computed in accordance with subsection (3) or (4), as the case may be. [37/2014] (2) The irrevocable written election under subsection (1) must — ( a ) in respect of the year of assessment 2011 or the year of assessment 2012, be made to the Comptroller by the qualifying person at any time after the end of the basis period for that year of assessment but before the expiry of the time the qualifying person must deliver a return of the qualifying person’s income for that year of assessment or within such extended time as the Comptroller may allow; ( b ) in respect of the year of assessment 2013, the year of assessment 2014, the year of assessment 2015, the year of assessment 2016, the year of assessment 2017 or the year of assessment 2018, be made to the Comptroller by the qualifying person at any time after the end of the quarter of the basis period for that year of assessment but before the expiry of the time the qualifying person must deliver a return of the qualifying person’s income for that year of assessment or within such extended time as the Comptroller may allow; ( ba ) if made on or after 1 August 2016, be made using the electronic service, except that the Comptroller may in any particular case or class of cases permit the election to be made in any other manner; and ( c ) be accompanied by such information and supporting document to be given in such form and manner as the Comptroller may specify. [37/2014; 15/2016] (2A) For the purposes of subsection (1), the provisions of this Act are — ( a ) section 14 in respect of — (i) expenditure that falls within the definition of “qualifying training expenditure” under section 14O for which a deduction may be given under that section; (ii) expenditure that falls within the definition of “qualifying design expenditure” under section 14P for which a deduction may be given under that section; (iii) expenditure on the leasing of a PIC automation equipment under a qualifying lease for which a deduction may be given under section 14Q; or (iv) expenditure on the licensing from another person of any qualifying intellectual property rights for which a deduction may be given under section 14T; ( b ) section 14A; ( c ) section 14C in respect of expenditure that falls within the definition of “qualifying expenditure” under section 14D; ( d ) section 14D; ( e ) section 14O; ( f ) section 14P; ( g ) section 14Q; ( ga ) section 14T; ( h ) section 19 or 19A(1), (1B), (2), (2A), (2B), (2BAA) or (10), in respect of expenditure incurred on the provision of any PIC automation equipment (including any expenditure that is treated as expenditure incurred on the provision of PIC automation equipment under section 19A(16A)), other than any equipment acquired — (i) under a hire‑purchase agreement signed before the basis period for the year of assessment 2012 with a payment period that spans over 2 or more basis periods; or (ii) under a hire‑purchase agreement signed in the basis period for the year of assessment 2012, the year of assessment 2013, the year of assessment 2014, the year of assessment 2015, the year of assessment 2016, the year of assessment 2017 or the year of assessment 2018; ( i ) section 19B other than — (i) a writing‑down allowance made in a case where the requirement under section 19B(2A) is waived; (ii) a writing‑down allowance made under section 19B(2C); (iii) a writing‑down allowance made in respect of any intellectual property rights acquired under an IPR instalment agreement signed before the basis period for the year of assessment 2012 with a payment period that spans over 2 or more basis periods; or (iv) a writing‑down allowance made in respect of any intellectual property rights acquired under an IPR instalment agreement signed in the basis period for the year of assessment 2012, the year of assessment 2013, the year of assessment 2014, the year of assessment 2015, the year of assessment 2016, the year of assessment 2017 or the year of assessment 2018; and ( j ) section 37J. [37/2014] (3) For the year of assessment 2011 and the year of assessment 2012, the amount of cash payout is calculated in accordance with the formula where A is — ( a ) for the year of assessment 2011, the lower of the following: (i) the amount of the selected expenditure; (ii) $200,000; and ( b ) for the year of assessment 2012, the lower of the following: (i) the amount of the selected expenditure; (ii) the balance after deducting from $200,000 the lower of the amounts specified in paragraph ( a )(i) and (ii). (3A) In subsection (3), the amount under paragraph ( a )(ii) is substituted with “$100,000” if the person does not carry on any trade, profession or business during the basis period for the year of assessment 2012, and the balance under paragraph ( b )(ii) is substituted with “$100,000” if the person does not carry on any trade, profession or business during the basis period for the year of assessment 2011. (4) For the year of assessment 2013, the year of assessment 2014, the year of assessment 2015 and the year of assessment 2016, the amount of cash payout for each year of assessment is where A is the lower of the following: ( a ) the aggregate amount of selected expenditure for all quarters of the basis period relating to that year of assessment; ( b ) $100,000. [37/2014; 15/2016] (4AA) For the year of assessment 2017, the amount of cash payout is — ( a ) if the last day of the basis period for that year of assessment is before 1 August 2016, the amount computed in accordance with subsection (4) (as applied with the necessary modifications); or ( b ) if the last day of the basis period for that year of assessment is on or after 1 August 2016 where A is the lower of the following: (i) the aggregate amount of selected expenditure for one or more quarters (or part of such quarter) between the first day of the basis period for that year of assessment and 31 July 2016 (both dates inclusive); (ii) $100,000; and B is the lower of the following: (i) the aggregate amount of selected expenditure for one or more quarters (or part of such quarter) between 1 August 2016 and the last day of the basis period for that year of assessment (both dates inclusive); (ii) the balance after deducting the lower of the amounts specified in paragraphs (i) and (ii) of the definition of A from $100,000. [15/2016] (4AB) For the year of assessment 2018, the amount of cash payout is — ( a ) if the first day of the basis period for that year of assessment is before 1 August 2016, the amount computed in accordance with subsection (4AA)( b ) (as applied with the necessary modifications); or ( b ) if the first day of the basis period for that year of assessment is on or after 1 August 2016 where B is the lower of the following: (i) the aggregate amount of selected expenditure for all quarters of the basis period for that year of assessment; (ii) $100,000. [15/2016] (4A) Where — ( a ) a qualifying person has, in the basis period relating to the year of assessment 2012, the year of assessment 2013, the year of assessment 2014, the year of assessment 2015, the year of assessment 2016, the year of assessment 2017 or the year of assessment 2018, signed a hire‑purchase agreement to acquire any PIC automation equipment for the purposes of a trade, profession or business carried on by the qualifying person, or an IPR instalment agreement to acquire any intellectual property rights for use in the qualifying person’s trade or business; ( b ) allowances may be made to the qualifying person under section 19, 19A(1), (2), (2A), (2B) or (2BAA) or 19B for capital expenditure to be incurred under the agreement; and ( c ) the cash price for the equipment or intellectual property rights (together with any selected expenditure referred to in subsection (1) in respect of which an election is made under that subsection at the same time) is at least $400, the qualifying person may, in lieu of all those allowances, make an irrevocable written election for a cash payout. [37/2014] (4B) The irrevocable written election under subsection (4A) must — ( a ) if the hire‑purchase agreement or IPR instalment agreement is signed in the basis period for the year of assessment 2012, be made to the Comptroller by the qualifying person at any time after the end of the basis period but before the expiry of the time the qualifying person must deliver a return of the qualifying person’s income for that year of assessment or within such extended time as the Comptroller may allow; ( b ) if the hire‑purchase agreement or IPR instalment agreement is signed in any quarter of the basis period for the year of assessment 2013, the year of assessment 2014, the year of assessment 2015, the year of assessment 2016, the year of assessment 2017 or the year of assessment 2018, be made to the Comptroller by the qualifying person at any time after the end of that quarter but before the expiry of the time the qualifying person must deliver a return of the qualifying person’s income for that year of assessment or within such extended time as the Comptroller may allow; ( ba ) if made on or after 1 August 2016, be made using the electronic service, except that the Comptroller may in any particular case or class of cases permit the election to be made in any other manner; and ( c ) be accompanied by such information and supporting documents to be given in such form and manner as the Comptroller may specify. [37/2014; 15/2016] (4C) Where an election under subsection (4A) is made, then subsections (3), (4), (4AA) and (4AB) apply with the following modifications: ( a ) a reference to the amount of selected expenditure or the aggregate amount of selected expenditure for a year of assessment, being the year of assessment relating to the basis period in which the agreement is signed, is a reference to the aggregate of — (i) the cash price of the PIC automation equipment or intellectual property rights; and (ii) the expenditure referred to in subsection (1) incurred in that basis period or all the quarters of that basis period (as the case may be), for which a deduction or an allowance is allowable or may be made to the qualifying person, and in respect of which an election has been made under that subsection; ( b ) a reference to the amount of selected expenditure or the aggregate amount of selected expenditure for any year of assessment excludes the amount of any capital expenditure made by the qualifying person under that agreement in the basis period for that year of assessment. [15/2016] (4D) The maximum amount of cash payout for each equipment that is the subject of a hire‑purchase agreement, or any intellectual property rights that are the subject of an IPR instalment agreement, is the amount computed under subsection (3), (4), (4AA) or (4AB) (as modified by subsection (4C)) (as the case may be) that 


document_id: ita-1947
provision_ref: s37H
chapter: PART 9 - ASCERTAINMENT OF ASSESSABLE INCOME
section: 37H
title: Productivity and Innovation Credit bonus
content:
37H. —(1) For each of the years of assessment 2013, 2014 and 2015, a person, being a company or firm (including a partnership) (called in this section an eligible person), is entitled to be given an amount in cash (called in this section the Productivity and Innovation Credit Scheme bonus or PIC bonus) if the Comptroller is satisfied, based on the return of the person’s income for that year of assessment and other information available to the Comptroller, that — ( a ) the person has incurred during the basis period for the year of assessment PIC expenditure of at least $5,000 in total; ( b ) the person is carrying on a trade, profession or business in Singapore; and ( c ) the person employed and made contributions to the Central Provident Fund in respect of at least 3 local employees based on the payroll for the last month (or such other month as the Comptroller may determine) of the basis period. (2) The amount of the PIC bonus to be given to the eligible person for any year of assessment is the lower of the following: ( a ) the amount of PIC expenditure incurred by the eligible person during the basis period for that year of assessment; ( b ) $15,000 less any PIC expenditure incurred by the eligible person during the basis period or periods for the other year or years of assessment (whether earlier or later than the firstmentioned basis period) for which the eligible person has already been given the PIC bonus. (3) Despite subsection (1), the eligible person is entitled to be given the PIC bonus for the year of assessment 2013, 2014 or 2015 before the expiry of the time the eligible person must deliver the return of the eligible person’s income for that year of assessment, if the eligible person has made an election under section 37G for a cash payout in respect of PIC expenditure incurred for a period comprising the whole or a part of the basis period for the year of assessment (called in this section the elected period), and the Comptroller is satisfied, based on information given by the person pursuant to the election and other information available to the Comptroller, that — ( a ) the person has incurred PIC expenditure of at least $5,000 in total from the beginning of the basis period to the end of the elected period; ( b ) the person is a qualifying person within the meaning of section 37G in respect of the elected period; and ( c ) the person is carrying on a trade, profession or business in Singapore. (4) The amount of the PIC bonus to be given to the eligible person under subsection (3) is the lower of the following: ( a ) an amount that corresponds to the PIC expenditure incurred from the beginning of the basis period to the end of the elected period, less any expenditure incurred in that period for which the eligible person has already been given the PIC bonus; ( b ) $15,000 less any PIC expenditure incurred by the eligible person during the basis period or periods for the other year or years of assessment (whether earlier or later than the firstmentioned basis period) for which the eligible person has already been given the PIC bonus. (5) Where — ( a ) one or more payments of the PIC bonus for a year of assessment has been made to an eligible person under subsection (3); and ( b ) as of the date the eligible person delivers the return of the eligible person’s income for that year of assessment, the eligible person has not been given the maximum amount of the PIC bonus which the eligible person may be given under subsection (2) for that year of assessment, then the eligible person is entitled to be given the balance of the PIC bonus in respect of any PIC expenditure incurred in the basis period for the year of assessment for which no PIC bonus has been given, if the Comptroller is satisfied, based on the return and other information available to the Comptroller, that the person — ( c ) is carrying on a trade, profession or business in Singapore; and ( d ) employed and made contributions to the Central Provident Fund in respect of at least 3 local employees based on the payroll for the last month (or such other month as the Comptroller may determine) of the basis period. (5A) For the purpose of subsections (1)( c ) and (5)( d ), a reference to a local employee of an eligible person based on the eligible person’s payroll for any part of the basis period for the year of assessment 2014 or a subsequent year of assessment, includes a reference to — ( a ) a local person — (i) who is engaged by the central hirer of a central hiring arrangement for a group of related parties which includes the eligible person; (ii) who is deployed to work solely for the eligible person in that part of the basis period; (iii) who is on the payroll of the central hirer or the eligible person for that part of the basis period; and (iv) whose salary and other remuneration (including training expenditure incurred in respect of the person) for that part of the basis period is borne, directly or indirectly, by the eligible person; and ( b ) a local person — (i) who, being an employee of another person (called in this subsection and subsection (5B) the employer), is seconded to the eligible person under a bona fide commercial arrangement to work solely for the eligible person in that part of the basis period; (ii) who is on the payroll of the employer or the eligible person for that part of the basis period; and (iii) whose salary and other remuneration (including training expenditure incurred in respect of the person) for that part of the basis period is borne, directly or indirectly, by the eligible person, and the local person is treated as employed by the eligible person for the purpose of those provisions. [37/2014] (5B) In determining whether the central hirer or employer referred to in subsection (5A) satisfies subsection (1)( c ) or (5)( d ), the person referred to in subsection (5A)( a ) or ( b ) is not treated as being employed by the central hirer or the employer based on the payroll of the central hirer or employer for the part of the basis period referred to in subsection (5A). [37/2014] (6) For the purposes of this section, an individual carrying on one or more trades, professions or businesses through 2 or more firms (excluding partnerships) must not be given a PIC bonus for any year of assessment that exceeds the amount computed in accordance with subsection (2) for that year of assessment. (7) Despite subsections (1), (3) and (5), no PIC bonus may be given in respect of — ( a ) any qualifying intellectual property registration costs under section 14A relating to any intellectual property rights or any application for the registration or grant of such rights, if the rights or application have or has been sold, transferred or assigned within one year from the date of filing of the application for the registration or grant of those rights; ( b ) any capital expenditure on the provision of any PIC automation equipment — (i) if it has been sold, transferred, assigned or leased out within one year from the date of provision; and (ii) a waiver under section 19A(2HA) (in the case of subsection (1) or (5)) or 37G(10A) (in the case of subsection (3)) has not been granted in respect of the sale, transfer, assignment or lease; and ( c ) any capital expenditure on the acquisition of any intellectual property rights if any of the following has occurred within one year from the date of acquisition: (i) the intellectual property rights have come to an end without being subsequently revived; (ii) all or any part of the intellectual property rights have been sold, transferred or assigned; (iii) the eligible person has permanently ceased to carry on the trade or business for which the intellectual property rights were used; (iv) all or any part of the intellectual property rights in any software have been licensed to another. (8) Where a PIC bonus has been given to an eligible person in respect of — ( a ) qualifying intellectual property registration costs under section 14A relating to any intellectual property rights or any application for the registration or grant of such rights, and the rights or application are or is sold, transferred or assigned within one year from the date of filing of the application for the registration or grant of those rights; or ( b ) capital expenditure on the provision of any PIC automation equipment and that equipment is sold, transferred, assigned or leased out within one year from the date of provision, then all of the following provisions apply: ( c ) the eligible person must give written notice to the Comptroller of such event in the manner specified by the Comptroller within 30 days from the date of such event; ( d ) the PIC bonus given for the PIC expenditure in respect of the application for the registration or grant of intellectual property rights or the PIC automation equipment, is recoverable by the Comptroller from the person as a debt due to the Government; ( e ) where the PIC automation equipment is the subject of a hire‑purchase agreement, no PIC bonus may be given to the person for any PIC expenditure under the agreement incurred in the basis period in which the event occurs and for any subsequent basis period thereof. (8A) For the purposes of subsections (7) and (8), a reference to capital expenditure on the provision of any PIC automation equipment includes a reference to capital expenditure on the provision of a website for the purposes of a trade, profession or business, and a reference to PIC automation equipment includes a reference to such a website. [37/2014] (9) The Minister, or such person as the Minister may appoint, may waive the application of subsection (8) in respect of an event referred to in paragraph ( b ) of that subsection in the same circumstances as those referred to in section 19A(2HA). (10) Where a PIC bonus has been given to an eligible person in respect of capital expenditure on the acquisition of any intellectual property rights and any of the following occurs within 5 years from the date of acquisition: ( a ) the intellectual property rights come to an end without being subsequently revived; ( b ) all or any part of the intellectual property rights are sold, transferred or assigned; ( c ) the person permanently ceases to carry on the trade or business for which the intellectual property rights are used; ( d ) all or any part of the intellectual property rights in any software are licensed to another, then both of the following provisions apply: ( e ) the person must give written notice to the Comptroller of such event in the manner specified by the Comptroller within 30 days from the date of such event; ( f ) an amount computed in accordance with the following formula is recoverable by the Comptroller from the person as a debt due to the Government: (11) Where a PIC bonus has been given to an eligible person in respect of capital expenditure on the acquisition of any intellectual property rights under an IPR instalment agreement and any of the events in subsection (10)( a ) to ( d ) occurs within 5 years from the date of acquisition of the intellectual property rights, then all the following provisions apply: ( a ) the person must give written notice to the Comptroller of such event in the manner specified by the Comptroller within 30 days from the date of such event; ( b ) where any amount of the PIC bonus has been given to the person before the occurrence of the event, an amount computed in accordance with the formula in subsection (10)( f ) is recoverable by the Comptroller from the person as a debt due to the Government; ( c ) for the purpose of paragraph ( b ), the reference in the formula to the amount of PIC bonus is a reference to the total amount of the PIC bonus that has been given to the person before the occurrence of the event; ( d ) the amount of the PIC bonus that may be given to the person in respect of those intellectual property rights for the basis period or elected period (as the case may be) in wh


document_id: ita-1947
provision_ref: s37I
chapter: PART 9 - ASCERTAINMENT OF ASSESSABLE INCOME
section: 37I
title: Modification of sections 37G and 37H in their application to partnership
content:
37I. —(1) A reference to a qualifying person in section 37G (including the person who has to satisfy the conditions for a cash payout), and a reference to an eligible person in section 37H (including the person who has to satisfy the conditions for the PIC bonus) is in each case, where the person is a partnership, a reference to the partnership; except that a reference in those sections to any deduction or allowance that may be allowed or made to a qualifying person or an eligible person under a provision of this Act, is a reference to such deduction or allowance that may be allowed or made to all of the partners of the partnership. (2) In subsection (1) — “cash payout” means a payment under section 37G; “PIC bonus” means a payment under section 37H. [37IB


document_id: ita-1947
provision_ref: s37J
chapter: PART 9 - ASCERTAINMENT OF ASSESSABLE INCOME
section: 37J
title: Enhanced deduction or allowance under Productivity and Innovation Credit Plus Scheme
content:
37J. —(1) A person who — ( a ) during the basis period for the year of assessment 2015, 2016, 2017 or 2018, has incurred any expenditure mentioned in the first column of the following table; ( b ) is a qualifying person for that year of assessment within the meaning of the regulations made under subsection (3); and ( c ) has made an application in accordance with subsection (2), is entitled to an enhanced deduction or allowance under the provision in the second column (in the case of the year of assessment 2015) or the third column (in the case of any of the other years of assessment) of the table that corresponds to that expenditure, computed in accordance with the regulations made under subsection (3): First column Second column Third column Expenditure Year of assessment 2015 Year of assessment 2016, 2017 or 2018 1. Qualifying intellectual property registration costs as defined in section 14A Section 14A(1B) Section 14A(1BA) 2. Qualifying expenditure as defined in section 14D Section 14D(2) Section 14D(2) 3. Qualifying training expenditure as defined in section 14O Section 14O(2) Section 14O(2A) 4. Qualifying design expenditure as defined in section 14P Section 14P(2) Section 14P(2AA) 5. Expenditure on the leasing of any PIC automation equipment, or procuring of cloud computing services as defined in section 14Q Section 14Q(2) Section 14Q(2A) 6. Expenditure on the licensing from another of any qualifying intellectual property rights as defined in section 14T Section 14T(1) Section 14T(4) 7. Capital expenditure on the provision of any PIC automation equipment (including any capital expenditure treated as capital expenditure incurred on the provision of PIC automation equipment under section 19A(16A)) Section 19A(2B) Section 19A(2BAA) 8. Capital expenditure on acquiring any intellectual property rights Section 19B(1B) Section 19B(1BAA). [37/2014] (2) The application under subsection (1)( c ) — ( a ) must be made to the Comptroller at the time of lodgment by the qualifying person of the return of income for that year of assessment or within such extended time as the Comptroller may allow; and ( b ) must be accompanied by such information and supporting document, given in such form and manner, as the Comptroller may specify. [37/2014] (3) The Minister may make regulations — ( a ) to define a qualifying person for each year of assessment for the purposes of subsection (1); ( b ) to provide for the computation of the amount of the enhanced deduction or allowance under that subsection; and ( c ) to make provisions generally for giving effect to or for carrying out the purposes of this section. [37/2014] (4) All regulations made under subsection (3) must be presented to Parliament as soon as possible after publication in the Gazette . [37/2014] (5) To avoid doubt, an enhanced deduction or allowance referred to in subsection (1) is a deduction or allowance under the applicable provision under the second or third column of the table in that subsection, and the provisions of section 14A, 14D, 14O, 14P, 14Q, 14T, 19A or 19B (whichever is applicable) apply to the deduction or allowance. [37/2014] (6) In this section, “person” means a company or firm (including a partnership). [37IC [37/2014]


document_id: ita-1947
provision_ref: s37K
chapter: PART 9 - ASCERTAINMENT OF ASSESSABLE INCOME
section: 37K
title: Abusive PIC arrangements
content:
37K. —(1) Despite the provisions of this Act, the Comptroller may disallow an amount referred to in subsection (2) of a claim for — ( a ) a PIC enhanced deduction; or ( b ) a PIC cash payout, and disallow the payment of an amount referred to in subsection (2) of a PIC bonus based on that claim, if the Comptroller has reasonable grounds to suspect that the claim arises from an abusive PIC arrangement. [37/2014] (2) The amount of the PIC enhanced deduction, PIC cash payout or PIC bonus that may be disallowed under subsection (1) is the amount resulting from the PIC arrangement being abusive as defined under subsection (10). [37/2014] (3) Despite the provisions of this Act, the amount referred to in subsection (4) of a PIC cash payout or PIC bonus paid to a person that was based on a claim that arose from an abusive PIC arrangement is recoverable by the Comptroller from the person as a debt due to the Government. [37/2014] (4) The amount of the PIC cash payout or PIC bonus that is recoverable under subsection (3) is the amount resulting from the PIC arrangement being abusive as defined under subsection (10). [37/2014] (5) The amount that is recoverable under subsection (3) is payable at the place stated in the notice served by the Comptroller on the person within 30 days after the service of the notice. [37/2014] (6) The Comptroller may, in his or her discretion and subject to such terms and conditions as the Comptroller may impose, extend the time within which payment under subsection (3) is to be made. [37/2014] (7) Sections 86(1) to (6), 87(1) and (2), 89, 90 and 91 apply to the collection and recovery by the Comptroller of the amount recoverable under subsection (3) as they apply to the collection and recovery of tax. [37/2014] (8) In this section, an arrangement is a PIC arrangement if the obtaining of a PIC cash payout, PIC bonus or PIC enhanced deduction, or a higher amount of a PIC cash payout, PIC bonus or PIC enhanced deduction, was the purpose or one of the purposes of the arrangement (called in this section the relevant purpose). [37/2014] (9) In this section, a PIC arrangement is abusive if — ( a ) it consists or makes use of one or more artificial, contrived or fraudulent steps that are intended to achieve the relevant purpose; ( b ) the arrangement results in the consideration paid or payable for the property or services in question being of a greater value than the open market value of the property or services, and there is no bona fide commercial reason for the difference in the values apart from the relevant purpose; or ( c ) in any other case, there is no bona fide commercial reason for entering into the arrangement or a transaction forming part of the arrangement apart from the relevant purpose. [37/2014] (10) In this section, the amount of PIC enhanced deduction, PIC cash payout or PIC bonus resulting from a PIC arrangement being abusive is — ( a ) if the arrangement is abusive by reason of subsection (9)( a ), the amount that results or has resulted from the use of the artificial, contrived or fraudulent step or steps, excluding any amount the person concerned is entitled to if the step or steps had not been used; ( b ) if the arrangement is abusive by reason of subsection (9)( b ), the amount that corresponds to the difference in the values mentioned in that provision; or ( c ) if the arrangement is abusive by reason of subsection (9)( c ), the full amount. Examples (i) A enters into a contract for training for A ’s employees. The right to training may be exchanged for goods. Expenditure for the goods is not eligible for a PIC cash payout. A exchanged the right to training for those goods and made a claim for a PIC cash payout in respect of the expenditure. The contract and the exchange together form an abusive PIC arrangement. The amount of the PIC cash payout that results from the arrangement being abusive for the purposes of subsections (1) and (3) is the full amount of the payout. (ii) A , in order to obtain a higher amount of PIC cash payout, purchases more equipment than A needs for A ’s business. The purchase of the excess equipment is an abusive PIC arrangement. The amount of the PIC cash payout that results from the arrangement being abusive for the purposes of subsections (1) and (3) is the amount corresponding to the price paid for the excess equipment. (iii) A and B , in order to help each other obtain a PIC cash payout, sell to each other equipment that performs the same function. The sales are abusive PIC arrangements. The amount of the PIC cash payout that results from the arrangement being abusive for the purposes of subsections (1) and (3) is the full amount of the payout. (iv) A enters into a contract for training for A ’s employees. The contract price for the training includes both the value of the training and the value of other goods to be given to the trainees. Expenditure for those goods is not eligible for a PIC cash payout. The purpose for setting the price for the training in this way is to enable a higher PIC cash payout to be paid to A . The contract is an abusive PIC arrangement. The amount of the PIC cash payout that results from the arrangement being abusive for the purposes of subsections (1) and (3) is the amount corresponding to the price for those other goods. [37/2014] (11) This section applies only to arrangements made or entered into on or after 27 November 2014. [37/2014] (12) In this section — “arrangement” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable); “PIC bonus” means a payment under section 37H; “PIC cash payout” means a payment under section 37G; “PIC enhanced deduction” means a deduction or an allowance under section 14A(1B) or (1BA), 14D(2), 14O(2) or (2A), 14P(2) or (2AA), 14Q(2) or (2A), 14T(1) or (4), 19A(2B) or (2BAA), 19B(1B) or (1BAA), or 37J. [37ID [37/2014]


document_id: ita-1947
provision_ref: s37L
chapter: PART 9 - ASCERTAINMENT OF ASSESSABLE INCOME
section: 37L
title: Promoters of abusive PIC arrangements
content:
37L. —(1) A person who promotes any PIC arrangement knowing or having reasonable grounds to believe that the arrangement is abusive shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 or to imprisonment for a term not exceeding 3 years or to both. [37/2014] (2) In subsection (1), a person promotes a PIC arrangement if the person — ( a ) designs, facilitates, organises or manages that arrangement or any part of that arrangement; or ( b ) publishes, disseminates or communicates any information, by any means or in any form, for the purpose of inducing or encouraging (whether directly or indirectly) any other person to enter into the arrangement or any transaction forming part of the arrangement. [37/2014] (3) In subsection (1), a PIC arrangement is abusive if — ( a ) it consists or makes use of one or more artificial, contrived or fraudulent steps that are intended to assist any person who enters into the arrangement or a transaction forming part of the arrangement to achieve the relevant purpose; ( b ) the arrangement will result in the consideration payable for any property or services being of a greater value than the open market value of the property or services, and there is no bona fide commercial reason for the difference in the values apart from the relevant purpose; or ( c ) in any other case, there is no bona fide commercial reason for a person to enter into the arrangement or a transaction forming part of the arrangement apart from the relevant purpose. [37/2014] (4) The examples of abusive PIC arrangements in section 37K(10) apply for the purposes of subsection (3). [37/2014] (5) Where, in any proceedings for an offence under subsection (1), it is proved that the arrangement in question consists or makes use of an artificial, contrived or fraudulent step which is capable of assisting any person who enters into the arrangement or a transaction forming part of the arrangement to achieve the relevant purpose, then it is presumed that the step is intended for the relevant purpose, unless the contrary is proved. [37/2014] (6) Where, in any proceedings for an offence under subsection (1), it is proved that — ( a ) the arrangement in question will result or has resulted in the consideration paid or payable for any property or services being of a greater value than the open market value of the property or services; and ( b ) the difference in the values cannot be justified on the basis of any prevailing practice of the trade, profession or business concerned (not being a practice adopted for the purpose of achieving the relevant purpose), then it is presumed that there is no bona fide commercial reason for the difference in the values apart from the relevant purpose, unless the contrary is proved. [37/2014] (7) The Comptroller may compound any offence under subsection (1). [37/2014] (8) In this section — “PIC arrangements”, “PIC cash payout”, “PIC bonus” and “PIC enhanced deduction” have the meanings given by section 37K; “relevant purpose” means the purpose of obtaining a PIC cash payout, PIC bonus or PIC enhanced deduction, or a higher amount of PIC cash payout, PIC bonus or PIC enhanced deduction. [37IE [37/2014]


document_id: ita-1947
provision_ref: s37M
chapter: PART 9 - ASCERTAINMENT OF ASSESSABLE INCOME
section: 37M
title: Penalties for false information, etc., resulting in payment under section 37G or 37H
content:
37M. —(1) Any person who gives to the Comptroller any information under section 37G(2) that is false in any material particular, or who omits any material particular from any information or document given under that provision, shall be guilty of an offence and shall on conviction be punished with a penalty that is equal to the amount of cash payout or PIC bonus (or both, as the case may be) that has been made to the person or any other person as a result of the offence, or which would have been made to the person or any other person if the offence had not been detected. (2) Any person who without reasonable excuse or through negligence gives to the Comptroller any information under section 37G(2) that is false in any material particular, or omits any material particular from any information or document given under that provision, shall be guilty of an offence and shall on conviction be punished with a penalty that is double the amount of cash payout or PIC bonus (or both, as the case may be) that has been made to the person or any other person as a result of the offence, or which would have been made to the person or any other person if the offence had not been detected, and shall also be liable to a fine not exceeding $5,000 or to imprisonment for a term not exceeding 3 years or to both. (3) Any person who wilfully with intent to obtain, or to assist another person to obtain, a cash payout or PIC bonus (or both) or a higher amount of cash payout or PIC bonus (or both) which the person or that other person is not entitled to — ( a ) gives to the Comptroller any information under section 37G(2) that is false in any material particular or omits any material particular from any information or document given under that provision; or ( b ) gives any false answer, whether verbally or in writing, to any question or request for information asked or made by the Comptroller, shall be guilty of an offence and shall on conviction be punished with a penalty that is treble the amount of cash payout or PIC bonus (or both, as the case may be) that has been made to the person or that other person as a result of the offence, or which would have been made to the person or that other person if the offence had not been detected, and shall also be liable to a fine not exceeding $10,000 or to imprisonment for a term not exceeding 3 years or to both. (4) Any person who wilfully with intent to obtain, or to assist another person to obtain, a cash payout or PIC bonus (or both) or a higher amount of cash payout or PIC bonus (or both) which the person or that other person is not entitled to — ( a ) prepares or maintains or authorises the preparation or maintenance of any false books of account or other records or falsifies or authorises the falsification of any books of account or records; or ( b ) makes use of any fraud, art or contrivance or authorises the use of such fraud, art or contrivance, shall be guilty of an offence and shall on conviction be punished with a penalty that is 4 times the amount of cash payout or PIC bonus (or both, as the case may be) that has been made to the person or that other person as a result of the offence, or which would have been made to the person or that other person if the offence had not been detected, and shall also be liable to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 5 years or to both. (4A) Where an individual has been convicted for — ( a ) 3 or more offences under subsection (3) or section 96; ( b ) 2 or more offences under subsection (4) or section 96A; or ( c ) one offence under either subsection (3) or section 96, and one offence under either subsection (4) or section 96A, the imprisonment the individual shall be liable to shall not be less than 6 months. (4B) Where in any proceedings under subsection (3) it is proved that any information that is false in a material particular is given to the Comptroller under section 37G(2) by or on behalf of any person, the person who gave the information is presumed, unless the contrary is proved, to have given it with intent to obtain, or to assist the person on whose behalf the information is given to obtain, a cash payout or PIC bonus (or both) or a higher amount of cash payout or PIC bonus (or both), as the case may be. (4C) Where in any proceedings under subsection (4) it is proved that any false statement or entry is made in any books of account or other records maintained by or on behalf of any person, the person who made the statement or entry is presumed, unless the contrary is proved, to have made that false statement or entry with intent to obtain, or to assist the person on whose behalf the statement or entry is made to obtain, a cash payout or PIC bonus (or both) or a higher amount of cash payout or PIC bonus (or both), as the case may be. (5) The Comptroller may compound any offence under this section other than subsection (4). (5A) In this section, a reference to the amount of cash payout or PIC bonus that has been made to a person as a result of an offence, or which would have been made to the person if the offence had not been detected, excludes an amount of the cash payout or PIC bonus that the person is entitled to. [37/2014] (6) In this section — “cash payout” means a payment under section 37G; “PIC bonus” means a payment under section 37H. [37J


document_id: ita-1947
provision_ref: s37N
chapter: PART 9 - ASCERTAINMENT OF ASSESSABLE INCOME
section: 37N
title: Deduction for qualifying investments in qualifying start‑up companies
content:
37N. —(1) Where an individual proposes to make one or more qualifying investments that complies with subsection (4) in a qualifying start‑up company or companies, the individual may apply to the Minister, or such person as the Minister may appoint, between 1 July 2010 and 31 March 2020 (both dates inclusive) to be approved as a qualifying person for the purposes of claiming a deduction under this section in respect of the expenditure incurred by the individual in making the investments. [2/2016] (2) Where the Minister or the person appointed by the Minister is satisfied that the individual possesses the necessary experience, skills or expertise to nurture and grow a qualifying start‑up company, the Minister or appointed person may approve, by written notice, the individual as a qualifying person, subject to such conditions as the Minister or appointed person may impose. (2A) No approval may be granted under subsection (2) after 31 March 2020, and any approval granted to a qualifying person must commence between 1 July 2010 and 31 March 2020 (both dates inclusive). [41/2020] (3) Where a qualifying person — ( a ) has incurred expenditure in making a qualifying investment that complies with subsection (4) in a qualifying start‑up company or companies; and ( b ) has directly and beneficially held the shares or convertible loans which are the subject of the qualifying investment for a continuous period of 2 years from the relevant date, the qualifying person is to be allowed on due claim, for the year of assessment relating to the basis period in which the last day of the 2‑year period falls, a deduction, computed in accordance with subsection (5), against the remainder of the qualifying person’s statutory income (excluding specified income) after making the deduction (if any) under section 37(3)( a ). (4) For the purposes of subsection (3), the qualifying investment must be made — ( a ) either — (i) during the period that is specified to the qualifying person; or (ii) if the Minister or such person as the Minister may appoint so approves, during the period between 1 March 2010 and 30 June 2010 (both dates inclusive); ( b ) if it is the first qualifying investment made by the qualifying person in the qualifying start‑up company since the qualifying person is approved as such under subsection (2) and paragraph ( d ) does not apply, on the date of such approval or within one year from that date; ( c ) if it is not the first qualifying investment made by the qualifying person in the qualifying start‑up company since the qualifying person is approved as such under subsection (2) and paragraph ( d ) does not apply, within one year from the date of the first qualifying investment referred to in paragraph ( b ) that complies with that paragraph; and ( d ) if approval has been obtained under paragraph ( a )(ii) and the qualifying person has made at least one qualifying investment in the qualifying start‑up company during the period between 1 March 2010 and 30 June 2010 (both dates inclusive), within one year from the date such qualifying investment or the first of such qualifying investments was made. [37/2014; 2/2016; 41/2020] (5) The amount of deduction allowable to a qualifying person under subsection (3) is ascertained by the formula where A is the aggregate amount of expenditure incurred by the qualifying person on the qualifying investment in a qualifying start‑up company or companies or $500,000, whichever is less. (6) For the purpose of computing the aggregate amount of expenditure incurred by a qualifying person in respect of a qualifying investment in a qualifying start‑up company or companies under subsection (5), no expenditure incurred by the qualifying person in respect of qualifying investment in any one qualifying start‑up company is to be included — ( a ) if the total amount of any such expenditure that is incurred on the date of first investment and within one year from that date (but excluding any expenditure incurred on qualifying investment that is disposed of during the relevant holding period) is less than $100,000; ( b ) to the extent that the expenditure, being expenditure incurred before 24 February 2015, is matched by any investment in the company by the company known as SPRING SEEDS Capital Pte Ltd under the SPRING Start‑up Enterprise Development Scheme administered by the second‑mentioned company or any other scheme designated by the Minister or such person as the Minister may appoint; ( c ) if all the shares which are the subject of the qualifying investment are disposed of during the relevant holding period; ( d ) where the loan which is the subject of the qualifying investment is partially or fully repaid during the relevant holding period; ( e ) if all the share capital of the qualifying start‑up company is acquired by a person or partnership other than the qualifying person, or the qualifying start‑up company merges with or is consolidated with another company or is wound up, at any time during a period of 2 years from the relevant date; ( f ) [ Deleted by Act 22 of 2011 ] ( g ) if the qualifying start‑up company is not resident in Singapore for the years of assessment relating to the basis periods falling within the relevant holding period; or ( h ) the qualifying person has acquired more than 50% of the issued share capital, or has provided more than 50% of the debt capital, of the qualifying start‑up company at any time during the relevant holding period. [2/2016] (7) For the purpose of computing the aggregate amount of expenditure incurred by a qualifying person in respect of a qualifying investment under subsection (5), where any of the shares which are the subject of the qualifying investment are disposed of during the relevant holding period, no account is to be taken of such expenditure incurred by the qualifying person in relation to the shares that are disposed. (8) The Minister or an authorised body may, subject to such conditions as the Minister or authorised body may impose in a particular case, waive the requirement in subsection (6)( c ), ( d ) or ( e ). [Act 41 of 2020 wef 12/04/2024] (9) Any amount of deduction for any year of assessment computed for a qualifying person in accordance with subsection (5) which is in excess of the remainder of the qualifying person’s statutory income (excluding specified income) after making the deduction (if any) under section 37(3)( a ) is not available as a deduction against the qualifying person’s income for any subsequent year of assessment and is disregarded. (10) Where — ( a ) a person disposes of, after 2 years from the relevant date, the shares which are the subject of a qualifying investment in respect of which a deduction has been allowed to the person in any year of assessment under this section; and ( b ) the gains or profits from the disposal of those shares is chargeable to tax under this Act, the amount of expenditure for which a deduction is allowed to the person under this section in respect of those shares in any year of assessment does not form part of the person’s costs of investment deductible under section 14 in computing the person’s gains or profits from the disposal which is chargeable to tax. (11) A qualifying person must maintain and deliver to the Minister or an authorised body, in such form and manner and within such reasonable time as the Minister or authorised body may determine, the relevant records of the qualifying investment made by the qualifying person in any qualifying start‑up company and such other particulars as may be required for the purposes of this section. [Act 41 of 2020 wef 12/04/2024] (12) In this section — “date of first investment”, in relation to a qualifying investment by a qualifying person in a qualifying start‑up company, means — ( a ) unless paragraph ( b ) applies, the date on which a qualifying investment is first made by the qualifying person in the qualifying start‑up company since the qualifying person was approved as such under subsection (2); or ( b ) if approval has been obtained under subsection (4)( a )(ii) and the qualifying person has made at least one qualifying investment in the qualifying start‑up company during the period between 1 March 2010 and 30 June 2010 (both dates inclusive), the date of that qualifying investment or the first of such qualifying investments; “qualifying investment”, in relation to a qualifying start‑up company, means — ( a ) the acquisition using cash of — (i) new shares not being of a preferential nature, issued by the company; (ii) new shares of a preferential nature issued by the company which do not fall within sub‑paragraph (iii) and which do not provide for payment of a fixed or guaranteed dividend for the relevant holding period; or (iii) new redeemable shares of a preferential nature issued by the company which do not carry a right to redemption during the relevant holding period and which do not provide for payment of a fixed or guaranteed dividend for the relevant holding period, other than shares which are issued pursuant to a stock option or share award scheme or any conversion of any loan or debt securities; or ( b ) the provision of convertible loans of cash to the company where there is no provision for interest payment for the relevant holding period or loan repayment during the relevant holding period; “qualifying start‑up company” means a company which is not one limited by guarantee and which — ( a ) on the date of first investment, was incorporated in Singapore for 3 years or less and whose shares are not listed on any stock exchange in Singapore or elsewhere; ( b ) on the date of first investment, does not have any shareholder who is a relative of the qualifying person, except that this requirement may be waived for the company by the Minister or an authorised body; [Act 41 of 2020 wef 12/04/2024] ( c ) on the date of first investment, has more than 50% of its total issued share capital beneficially held by no more than 20 individual shareholders (excluding any qualifying person); ( d ) has no more than 25% of its issued share capital or 25% of its debt capital beneficially held by the qualifying person (including any of the qualifying person’s relatives) at any time within a period of 2 years prior to the date of first investment; and ( e ) throughout the relevant holding period, does not engage in any activity specified by the Minister or an authorised body for the purposes of this section; [Act 41 of 2020 wef 12/04/2024] “relative”, in relation to any individual, means — ( a ) his or her spouse; ( b ) his or her children, stepchildren, grandchildren, stepgrandchildren and their spouses; ( c ) his or her parents, including step‑parents; ( d ) his or her grandparents, including stepgrandparents; ( e ) his or her parents‑in‑law, including stepparents‑in‑law; ( f ) his or her brother, stepbrother, sister, stepsister and their spouses; ( g ) his or her spouse’s grandparents, including stepgrandparents; ( h ) his or her spouse’s brother, stepbrother, sister, stepsister and their spouses; ( i ) his or her parent’s brother, stepbrother, sister, stepsister and their spouses; ( j ) his or her parent‑in‑law’s brother, stepbrother, sister, stepsister and their spouses; ( k ) the children of the brother, stepbrother, sister or stepsister of his or her parent or step‑parent, including stepchildren, and their spouses; ( l ) the children of the brother, stepbrother, sister or stepsister of his or her parent‑in‑law or stepparent‑in‑law, including stepchildren, and their spouses; ( m ) the children of his or her brother, stepbrother, sister or stepsister, including stepchildren, and their spouses; and ( n ) the children of his or her spouse’s brother, stepbrother, sister or stepsister, including stepchildren, and their spouses; “relevant date”, in relation to a qualifying person making a qualifying investment in a qualifying start‑up company, means — ( a ) where only one qualifying investment in the


document_id: ita-1947
provision_ref: s37O
chapter: PART 9 - ASCERTAINMENT OF ASSESSABLE INCOME
section: 37O
title: Deduction for acquisition of shares of companies
content:
37O. —(1) Subject to this section, where — ( a ) a Singapore company (called in this section the acquiring company); ( b ) any one or more subsidiaries of the Singapore company that is or are wholly‑owned by the Singapore company, and is incorporated for the primary purpose of acquiring and holding shares in other companies (called in this section the acquiring subsidiary); or ( c ) both the acquiring company and any one or more acquiring subsidiaries, incurs or incur capital expenditure during the period from 1 April 2010 to 31 December 2030 (both dates inclusive) for any qualifying acquisition of ordinary shares in another company (called in this section the target company), the acquiring company may claim the deductions specified in subsection (1A), in accordance with this section. [2/2016; 41/2020] [Act 25 of 2025 wef 08/12/2025] (1A) The deductions for the purposes of subsection (1) are as follows: ( a ) a deduction for the capital expenditure referred to in that subsection; and ( b ) a deduction of an amount equivalent to twice the amount of transaction costs incurred for qualifying acquisitions made during the period from 17 February 2012 to 31 December 2030 (both dates inclusive). [2/2016; 41/2020] [Act 25 of 2025 wef 08/12/2025] (2) Any claim for deduction under this section must be made at the time of lodgment of the return of income for the year of assessment relating to the basis period of the acquiring company in which the capital expenditure is incurred or within such further time as the Comptroller may allow. (3) For the purposes of subsections (1) and (2), capital expenditure for an acquisition of ordinary shares in a target company is treated as being incurred on the date of the acquisition of those shares. Qualifying acquisitions (4) In this section, a qualifying acquisition of ordinary shares in a target company by an acquiring company or an acquiring subsidiary is any of the following: ( a ) an acquisition made during the period from 1 April 2010 to 31 March 2015 (both dates inclusive) that results in the acquiring company and its acquiring subsidiaries owning together in total more than 50% of the total number of ordinary shares in the target company where, before the date of the acquisition, such total ownership was 50% or less of the total number of ordinary shares in the target company; ( b ) any other acquisition the date of which falls in the same basis period of the acquiring company as that of the acquisition mentioned in paragraph ( a ); ( c ) an acquisition made during the period from 1 April 2010 to 31 March 2015 (both dates inclusive) that results in the acquiring company and its acquiring subsidiaries owning together in total 75% or more of the total number of ordinary shares in the target company where — (i) before the date of the acquisition, such total ownership was more than 50% but less than 75% of the total number of ordinary shares in the target company; and (ii) the date of the acquisition does not fall in the same basis period of the acquiring company as the date of the acquisition mentioned in paragraph ( a ); ( d ) any other acquisition the date of which falls in the same basis period of the acquiring company as that of the acquisition mentioned in paragraph ( c ) and is before 1 April 2016, provided that at the end of that basis period of the acquiring company, such total ownership is more than 50% (in the case of paragraphs ( a ) and ( b )) or 75% or more (in the case of paragraphs ( c ) and ( d )) of the total number of ordinary shares in the target company. [2/2016] (4A) In this section, and subject to the applicable condition in subsection (4B) being met, each of the following is also a qualifying acquisition of ordinary shares in a target company by an acquiring company or an acquiring subsidiary: ( a ) an acquisition made during the period from 1 April 2015 to 31 December 2030 (both dates inclusive) that results in the acquiring company and its acquiring subsidiaries owning together in total 20% or more but 50% or less of the total number of ordinary shares in the target company, where — (i) before the date of the acquisition, such total ownership was less than 20% of the total number of ordinary shares in the target company; and (ii) the date of the acquisition does not fall in the same basis period of the acquiring company as the date of the acquisition mentioned in paragraph ( c ); [Act 25 of 2025 wef 08/12/2025] ( b ) any other acquisition made during the period from 1 April 2015 to 31 December 2030 (both dates inclusive) the date of which falls in the same basis period of the acquiring company as that of the acquisition mentioned in paragraph ( a ); [Act 25 of 2025 wef 08/12/2025] ( c ) an acquisition made during the period from 1 April 2015 to 31 December 2030 (both dates inclusive) that results in the acquiring company and its acquiring subsidiaries owning together in total more than 50% of the total number of ordinary shares in the target company where, before the date of the acquisition, such total ownership was 50% or less of the total number of ordinary shares in the target company; [Act 25 of 2025 wef 08/12/2025] ( d ) any other acquisition the date of which falls in the same basis period of the acquiring company as that of the acquisition mentioned in paragraph ( c ); ( e ) an acquisition made on or after 1 April 2015 but before 1 April 2016 that results in the acquiring company and its acquiring subsidiaries owning together in total 75% or more of the total number of ordinary shares in the target company where — (i) before the date of the acquisition, such total ownership was more than 50% but less than 75% of the total number of ordinary shares in the target company; (ii) the date of the acquisition does not fall in the same basis period of the acquiring company as the date of the acquisition mentioned in paragraph ( c ); and (iii) before 1 April 2015 and not earlier than 12 months before the acquisition, the acquiring company or its acquiring subsidiary had made an acquisition of ordinary shares of any amount in the target company; ( f ) any other acquisition the date of which falls in the same basis period of the acquiring company as that of the acquisition mentioned in paragraph ( e ) and is before 1 April 2016. [2/2016; 41/2020] (4B) In subsection (4A), the conditions are — ( a ) in the case of paragraphs ( a ) and ( b ) of that subsection, at the end of that basis period of the acquiring company, the total ownership of ordinary shares in the target company mentioned in paragraph ( a ) of that subsection is between 20% and 50% (both inclusive); ( b ) in the case of paragraphs ( c ) and ( d ) of that subsection, at the end of that basis period of the acquiring company, the total ownership of ordinary shares in the target company mentioned in paragraph ( c ) of that subsection is more than 50%; or ( c ) in the case of paragraphs ( e ) and ( f ) of that subsection, at the end of that basis period of the acquiring company, the total ownership of ordinary shares in the target company mentioned in paragraph ( e ) of that subsection is 75% or more. [2/2016] (5) An acquiring company may elect for its qualifying acquisitions to be, instead of those mentioned in the provisions in the first column of the following table, acquisitions — ( a ) the dates of which fall within a prescribed period; and ( b ) which include an acquisition mentioned in the provisions set out opposite in the second column of the table, and the provisions of this section apply to the acquisitions so elected subject to such modifications as may be prescribed: Original acquisitions
under: Elected acquisitions to
include an acquisition
under: subsection (4)( a ) and ( b ), or subsection (4)( c ) and ( d ) subsection (4)( a ) or ( c ) subsection (4A)( c ) and ( d ), or subsection (4A)( e ) and ( f ) subsection (4A)( c ) or ( e ) [2/2016] (5A) The election under subsection (5) may only be made for acquisitions made during the period from 1 April 2010 to 31 March 2016 (both dates inclusive). [2/2016] (6) The election under subsection (5) must be made by the acquiring company at the time of lodgment of the return of its income for the year of assessment relating to the basis period of the acquiring company in which the date of the acquisition mentioned in subsection (4)( a ) or ( c ) or subsection (4A)( c ) or ( e ) (as the case may be) falls, or within such further time as the Comptroller may allow. [2/2016] Deductions allowable in respect of capital expenditure claimed (7) For the purpose of subsection (1) and subject to subsections (11), (11A), (11AB), (11B), (11C) and (19) and the regulations made under subsection (24), deductions in respect of capital expenditure for a qualifying acquisition of ordinary shares in a target company by an acquiring company or an acquiring subsidiary (as the case may be) are to be allowed as follows: ( a ) to the extent the capital expenditure is not contingent consideration or, if it is contingent consideration, is incurred in the same basis period of the acquiring company as that in which the date of the acquisition of the shares falls, the deduction allowed is the amount specified in subsection (8) for acquisitions mentioned in subsection (4), and the amount specified in subsection (8A) for acquisitions mentioned in subsection (4A), for each of 5 successive years of assessment (called in this section the 1st, 2nd, 3rd, 4th and 5th years of assessment, respectively), beginning with the year of assessment relating to the basis period of the acquiring company in which the date of the acquisition of the shares falls; ( b ) to the extent the capital expenditure is contingent consideration that is incurred in a basis period of the acquiring company after the basis period of the acquiring company for the 1st year of assessment, the deduction allowed is — (i) where the contingent consideration is incurred in the basis period of the acquiring company for the 2nd, 3rd or 4th year of assessment, the amount specified in subsection (9) for acquisitions mentioned in subsection (4), and the amount specified in subsection (9A) for acquisitions mentioned in subsection (4A), for that year of assessment and for each successive year of assessment up to and including the 5th year of assessment; or (ii) where the contingent consideration is incurred in the basis period of the acquiring company for the 5th year of assessment or a subsequent year of assessment, the amount specified in subsection (10) for acquisitions mentioned in subsection (4), and the amount specified in subsection (10A) for acquisitions mentioned in subsection (4A), for that year of assessment. [2/2016; 34/2016] (8) Subject to subsections (13) and (19), the amount referred to in subsection (7)( a ) for an acquisition mentioned in subsection (4) is calculated in accordance with the formula where A is the capital expenditure to the extent that it is not contingent consideration or, if it is contingent consideration, is incurred in the same basis period of the acquiring company as that in which the date of the acquisition of the shares falls. [2/2016] (8A) Subject to subsections (13) and (19), the amount referred to in subsection (7)( a ) for an acquisition mentioned in subsection (4A) is calculated in accordance with the formula where A is the capital expenditure to the extent that it is not contingent consideration or, if it is contingent consideration, is incurred in the same basis period of the acquiring company as that in which the date of the acquisition of the shares falls. [2/2016] (9) Subject to subsections (13) and (19), the amount mentioned in subsection (7)( b )(i) for an acquisition mentioned in subsection (4) is calculated in accordance with the formula where B is the contingent consideration that is incurred in the basis period of the acquiring company for the 2nd, 3rd or 4th year of assessment, whichever is applicable; and C is — ( a ) 2 (where the c


document_id: ita-1947
provision_ref: s37P
chapter: PART 9 - ASCERTAINMENT OF ASSESSABLE INCOME
section: 37P
title: Treatment of unabsorbed donations attributable to exempt income
content:
37P. —(1) If — ( a ) any donation allowable under this Act for the year of assessment 2012 or any preceding year of assessment (called in this section the attributed donation) is to be deducted from any income of a company under a provision of this Act or the Economic Expansion Incentives (Relief from Income Tax) Act 1967 in determining the amount of its income that is exempt from tax under that provision for that or any subsequent year of assessment; and ( b ) part or all of the attributed donation (called in this section the balance) has yet to be fully deducted in determining the amount of income that is exempt from tax for the year of assessment 2012, then the following provisions apply to the balance: ( c ) subject to paragraphs ( e ) to ( i ) and subsection (2), the balance is to be deducted from the statutory income of the company for the year of assessment 2013; ( d ) subject to paragraphs ( e ) to ( i ) and section 37B as in force immediately before 7 December 2020, where the deduction under paragraph ( c ) cannot be made or fully made, the balance is to be deducted from the statutory income of the company for the year of assessment 2014, and so on; ( e ) any balance not deducted against the statutory income of the company for the fifth year of assessment after the year of assessment relating to the basis period in which the donation was made must be disregarded; ( f ) for the purposes of paragraphs ( c ) and ( d ), any donation made on an earlier date is deemed to have been deducted first; ( g ) where the part of the balance that may be deducted under paragraph ( c ) against any type of income in accordance with subsection (2) has been so deducted and a sum remains of that part of the balance after such deduction, a deduction under paragraph ( d ) of the sum that so remains, or any sum that remains after one or more applications of this paragraph, is to be made in the following manner: (i) the sum is first to be deducted against the same type of income; (ii) any sum remaining after that deduction is to be deducted against any other type of income in accordance with section 37B of this Act in force immediately before 7 December 2020; ( h ) despite paragraphs ( c ) and ( d ), the balance must be disregarded if the Comptroller is not satisfied that the shareholders of the company on the last day of the year in which the donation was made, were substantially the same as the shareholders of the company on the first day of the year of assessment in which the balance would otherwise be deductible; and ( i ) section 37(13) to (17) applies, with the necessary modifications, for the purposes of paragraph ( h ). [41/2020] (2) The deduction under subsection (1)( c ) is to be made in accordance with the following provisions: ( a ) section 37B of this Act in force immediately before 7 December 2020 does not apply to the deduction; ( b ) if the company only derives normal income for that year of assessment, the balance is to be deducted against the normal income for that year of assessment; ( c ) if the company only derives concessionary income for that year of assessment, the balance is to be deducted against the concessionary income for that year of assessment; ( d ) if the company derives both normal income and concessionary income, or concessionary income that is subject to tax at different concessionary rates of tax, for that year of assessment, the balance is to be deducted against each type of income in such proportion as appears reasonable to the Comptroller in the circumstances; ( e ) if the company only derives income that is exempt from tax for that year of assessment, then section 37B of this Act in force immediately before 7 December 2020 applies, with the necessary modifications, for the purpose of making a deduction of the balance under subsection (1)( d ) as if the balance were unabsorbed donation in respect of income of a company subject to tax at the rate of tax specified in section 43(1)( a ). [41/2020] (3) In this section — “concessionary income” means income that is subject to tax at a concessionary rate of tax; “concessionary rate of tax” has the meaning given by section 14C in force immediately before 29 December 2016; “normal income” means income that is subject to tax at the rate of tax specified in section 43(1)( a ). [37M [34/2016]


document_id: ita-1947
provision_ref: s37Q
chapter: PART 9 - ASCERTAINMENT OF ASSESSABLE INCOME
section: 37Q
title: Exclusion of expenditure or payment subsidised by capital grant
content:
37Q. —(1) Despite anything in this Act or the Economic Expansion Incentives (Relief from Income Tax) Act 1967, a deduction or an allowance under this Act or Part 8 of the Economic Expansion Incentives (Relief from Income Tax) Act 1967 may not be made or given in respect of any expenditure or payment to the extent that the expenditure or payment is or is to be subsidised by a grant or subsidy from the Government or a statutory board that is — ( a ) capital in nature; and ( b ) approved by the Government or statutory board on or after 1 January 2021. [41/2020] [Act 39 of 2023 wef 29/12/2023] (2) Subsection (1) does not affect the operation of the following provisions: ( a ) sections 14A(7), 14B(4)( e ), 14C(1A), 14D(12)( b ), 14EA(10), 14EB(9), 14H(3)( c ), 14I(10)( b ), 14U(7), 14Z(7) and (9) and 37O(29); [Act 30 of 2023 wef 30/10/2023] [Act 25 of 2025 wef 19/02/2025] ( b ) section 41(3) of the Economic Expansion Incentives (Relief from Income Tax) Act 1967. [37N [41/2020]


document_id: ita-1947
provision_ref: s37R
chapter: PART 9 - ASCERTAINMENT OF ASSESSABLE INCOME
section: 37R
title: Cash payout under Enterprise Innovation Scheme
content:
37R. —(1) Subject to this section, where any eligible person has incurred expenditure during the basis period for any year of assessment between the years of assessment 2024 and 2028 (both years inclusive), for which a deduction or an allowance is allowable or can be made to the eligible person under any provision of this Act mentioned in subsection (3) (as qualified by that subsection), the eligible person may, in lieu of one or more of the deductions or allowances or any part thereof, make an irrevocable written election for a cash payout computed in accordance with subsection (4) in respect of — ( a ) the expenditure qualifying for the deductions or allowances; or ( b ) any part of the expenditure, (called in this section the selected expenditure), the total amount of which (together with the cash price of any intellectual property rights in respect of which an election under subsection (6) is made at the same time) is at least $400. (2) The election under subsection (1) must — ( a ) be made to the Comptroller by the eligible person — (i) on or before the expiry of the time (including any extended time) for the eligible person to lodge the eligible person’s return of income for the year of assessment relating to the basis period in which the selected expenditure was incurred, as described in section 62; or (ii) within such extended time as the Comptroller may allow; ( b ) be made using the electronic service, except that the Comptroller may in any particular case or class of cases permit the election to be made in any other manner; and ( c ) be accompanied by such information and supporting document, to be given in such form and manner, as may be specified by the Comptroller. (3) For the purposes of subsection (1), the provisions of this Act are — ( a ) section 14 in respect of — (i) expenditure on the licensing from another person of any qualifying intellectual property rights for which a deduction may be given under section 14U(1A); or (ii) expenditure that falls within the definition of “qualifying training expenditure” in section 14ZG(5) for which a deduction may be given under section 14ZG; ( b ) section 14A(1)( b ) and (1BC); ( c ) section 14C in respect of expenditure that falls within the definition of “qualifying expenditure” in section 14D(11), for which a deduction may be given under section 14D; ( d ) section 14D(1) and (1A); ( e ) section 14EA(1); ( f ) section 14U(1A); ( g ) section 14ZG(1); and ( h ) section 19B(1AA) and (1AD) other than — (i) a writing-down allowance made in a case where the requirements under section 19B(2A)( a ) and ( b ) are waived; and (ii) a writing-down allowance made in respect of any intellectual property rights acquired under an IPR instalment agreement signed in the basis period for any year of assessment between the years of assessment 2024 and 2028 (both years inclusive). (4) For the purposes of subsection (1), the amount of cash payout for each year of assessment is where A is the lower of the following: ( a ) the amount of the selected expenditure; ( b ) $100,000. (5) The Comptroller may reject any election that is not made in accordance with subsection (2). Cash payout in respect of IPR acquired under instalment agreement (6) Where — ( a ) an eligible person has, in the basis period for any year of assessment between the years of assessment 2024 and 2028 (both years inclusive), signed an IPR instalment agreement to acquire any intellectual property rights for use in the eligible person’s trade or business; ( b ) allowances may be made to the eligible person under section 19B(1AA) and (1AD) for capital expenditure to be incurred under the agreement; and ( c ) the cash price for the intellectual property rights (together with any selected expenditure mentioned in subsection (1) in respect of which an election is made under that subsection at the same time) is at least $400, the eligible person may, in lieu of all those allowances, make an irrevocable written election for a cash payout. (7) The election under subsection (6) must — ( a ) be made to the Comptroller by the eligible person — (i) on or before the expiry of the time (including any extended time) for the eligible person to lodge the eligible person’s return of income for the year of assessment relating to the basis period in which the IPR instalment agreement was signed, as described in section 62; or (ii) within such extended time as the Comptroller may allow; ( b ) be made using the electronic service, except that the Comptroller may in any particular case or class of cases permit the election to be made in any other manner; and ( c ) be accompanied by such information and supporting document, to be given in such form and manner, as may be specified by the Comptroller. (8) The Comptroller may reject any election that is not made in accordance with subsection (7). (9) Where an election under subsection (6) is made, subsection (4) applies with the following modifications: ( a ) the reference to the amount of selected expenditure for a year of assessment, being the year of assessment relating to the basis period in which the IPR instalment agreement is signed, is to the aggregate of — (i) the cash price of the intellectual property rights; and (ii) the expenditure mentioned in subsection (1) incurred in that basis period for which a deduction or an allowance is allowable or may be made to the eligible person, and in respect of which an election has been made under that subsection; ( b ) the reference to the amount of selected expenditure for a year of assessment excludes the amount of any capital expenditure made by the eligible person under that IPR instalment agreement in the basis period for that year of assessment. (10) For the purpose of subsections (12) and (22), the amount of cash payout for any intellectual property rights that are the subject of an IPR instalment agreement is the amount computed under subsection (4) (as modified by subsection (9)) that is attributable to — ( a ) the cash price of the intellectual property rights; or ( b ) if the amount of A is $100,000, such part of that amount that the eligible person specifies to be attributable to the cash price of the intellectual property rights. (11) In subsections (9)( a )(i) and (10)( a ), a reference to the cash price of the intellectual property rights is, in a case where section 19B(10I) applies, to the open‑market price mentioned in section 19B(10F) for those intellectual property rights. (12) The cash payout for a year of assessment under subsection (6) for any intellectual property rights that are the subject of an IPR instalment agreement must be made to the eligible person in the following manner: ( a ) the eligible person may claim an amount of cash payout for the year of assessment relating to a basis period during which the eligible person incurred capital expenditure under the agreement for those rights; ( b ) the amount of cash payout that may be made to the eligible person is the lesser of — (i) A &#215; 20%, where A is the amount of the capital expenditure incurred in that basis period; and (ii) the amount mentioned in subsection (10) after deducting any cash payout made for those rights in any preceding year of assessment or years of assessment under this subsection; ( c ) no cash payout may be made for those rights if the amount mentioned in paragraph ( b )(ii) is zero; ( d ) each claim must be made in a form and be accompanied by any information and supporting document relating to the capital expenditure specified by the Comptroller; ( e ) to avoid doubt, a claim may be made for any year of assessment after the year of assessment 2028. Cases where no election allowed (13) No election under subsection (1) or (6) may be made by a person in respect of — ( a ) any deduction allowable under any provision mentioned in subsection (3)( a )(i) and ( f ) unless the person is a qualifying person within the meaning of section 14U(1C) for the year of assessment in question; ( b ) any deduction allowable under any provision mentioned in subsection (3)( b ) for any qualifying intellectual property registration costs in respect of an application for the registration or grant of a qualifying intellectual property right incurred by the person over the basis periods of 2 or more consecutive years of assessment, if the person had made any claim for deduction under that provision in respect of any part of such costs for a previous year of assessment; or ( c ) any allowance that may be made under any provision mentioned in subsection (3)( h ) unless the person is a qualifying company for the year of assessment in question within the meaning of section 19B(1AF). Cash payout to individuals carrying on trade, etc., through 2 or more firms (14) For the purposes of subsections (1), (4) and (6), an individual carrying on one or more trades or businesses through 2 or more firms (excluding partnerships) must not be granted a cash payout that exceeds the amount computed in accordance with subsection (4) or that subsection as modified by subsection (9), as the case may be. Section 14A costs deductible for 2 or more consecutive years of assessment treated as incurred on date of approval or rejection of application for registration of intellectual property rights, etc. (15) For the purposes of this section, where — ( a ) an eligible person has incurred qualifying intellectual property registration costs in respect of an application for the registration or grant of a qualifying intellectual property right for which a deduction is allowable under section 14A(1)( b ) and (1BC), over the basis periods of 2 or more consecutive years of assessment; ( b ) the eligible person is not disqualified from making an election under subsection (1) by reason of subsection (13)( b ); and ( c ) the eligible person makes an election under subsection (1) in respect of those costs, the eligible person is treated as having incurred those costs during the basis period of the year of assessment in which the application or grant is approved or rejected. When open-market price treated as section 19B expenditure (16) Where the Comptroller has treated the open‑market price as the capital expenditure incurred for the acquisition of intellectual property rights under section 19B(10E), then the reference in this section to selected expenditure, insofar as it relates to that capital expenditure, is to the open‑market price of the intellectual property rights. Election deemed made on full amount of section 14A or 19B expenditure (17) Where an eligible person makes an election under subsection (1) or (6) in respect of a deduction or an allowance under section 14A(1)( b ) and (1BC) or 19B(1AA) and (1AD), the election is treated as having been made on the full amount of the expenditure qualifying for the deduction or allowance and incurred on — ( a ) the grant or registration of each qualifying intellectual property right in each country; or ( b ) the acquisition of each intellectual property right, as the case may be, to which the election relates, net of any grant or subsidy from the Government or a statutory board. (18) No part of the amount of any expenditure mentioned in subsection (17) for which an election is made or treated as having been made under subsection (1) or (6) is eligible for a deduction or an allowance against the income of the eligible person for any year of assessment. Capital expenditure in acquiring rights in software for licensing not eligible for cash payout (19) Despite subsections (1) and (6), where an eligible person has incurred capital expenditure in acquiring any intellectual property rights in any software for the purpose of licensing all or any part of those rights, the eligible person is not allowed to make an election under subsection (1) or (6) in respect of such expenditure. Recovery of cash payout by Comptroller (20) Where a cash payout has been made to a person under this section in lieu of a deduction under s


document_id: ita-1947
provision_ref: s37S
chapter: PART 9 - ASCERTAINMENT OF ASSESSABLE INCOME
section: 37S
title: Penalties for false information, etc., resulting in payment under section 37R
content:
37S. —(1) Any person who — ( a ) gives to the Comptroller any information under section 37R(2) or (7) that is false in any material particular; or ( b ) omits any material particular from any information or document given under that provision to the Comptroller, shall be guilty of an offence and shall on conviction be punished with a penalty that is equal to the amount of cash payout that has been made to the person or any other person as a result of the offence, or which would have been made to the person or any other person if the offence had not been detected. (2) Any person who, without reasonable excuse or through negligence — ( a ) gives to the Comptroller any information under section 37R(2) or (7) that is false in any material particular; or ( b ) omits any material particular from any information or document given under that provision to the Comptroller, shall be guilty of an offence and shall on conviction be punished with a penalty that is double the amount of cash payout that has been made to the person or any other person as a result of the offence, or which would have been made to the person or any other person if the offence had not been detected, and shall also be liable to a fine not exceeding $5,000 or to imprisonment for a term not exceeding 3 years or to both. (3) Any person who wilfully with intent to obtain, or to assist another person to obtain, a cash payout or a higher amount of cash payout which the person or that other person is not entitled to — ( a ) gives to the Comptroller any information under section 37R(2) or (7) that is false in any material particular or omits any material particular from any information or document given under that provision; or ( b ) gives any false answer, whether verbally or in writing, to any question or request for information asked or made by the Comptroller, shall be guilty of an offence and shall on conviction be punished with a penalty that is treble the amount of cash payout that has been made to the person or that other person as a result of the offence, or which would have been made to the person or that other person if the offence had not been detected, and shall also be liable to a fine not exceeding $10,000 or to imprisonment for a term not exceeding 3 years or to both. (4) Any person who wilfully with intent to obtain, or to assist another person to obtain, a cash payout or a higher amount of cash payout which the person or that other person is not entitled to — ( a ) prepares or maintains or authorises the preparation or maintenance of any false books of account or other records or falsifies or authorises the falsification of any books of account or other records; or ( b ) makes use of any fraud, art or contrivance or authorises the use of such fraud, art or contrivance, shall be guilty of an offence and shall on conviction be punished with a penalty that is 4 times the amount of cash payout that has been made to the person or that other person as a result of the offence, or which would have been made to the person or that other person if the offence had not been detected, and shall also be liable to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 5 years or to both. (5) Where an individual has been convicted of — ( a ) 3 or more offences under subsection (3) or section 37M(3) or 96; ( b ) 2 or more offences under subsection (4) or section 37M(4) or 96A; or ( c ) one offence under either subsection (3) or section 37M(3) or 96, and one offence under either subsection (4) or section 37M(4) or 96A, the imprisonment the individual shall be liable to shall not be less than 6 months. (6) Where in any proceedings under subsection (3) it is proved that any information that is false in a material particular is given to the Comptroller under section 37R(2) or (7) by or on behalf of any person, the person who gave the information is presumed, unless the contrary is proved, to have given it with intent to obtain, or to assist the person on whose behalf the information is given to obtain, a cash payout or a higher amount of cash payout. (7) Where in any proceedings under subsection (4) it is proved that any false statement or entry is made in any books of account or other records maintained by or on behalf of any person, the person who made the statement or entry is presumed, unless the contrary is proved, to have made that false statement or entry with intent to obtain, or to assist the person on whose behalf the statement or entry is made to obtain, a cash payout or a higher amount of cash payout. (8) The Comptroller may compound any offence under this section other than subsection (4). (9) In this section, a reference to the amount of cash payout that has been made to a person as a result of an offence, or which would have been made to the person if the offence had not been detected, excludes an amount of the cash payout that the person is entitled to. (10) In this section, “cash payout” means a payment under section 37R. [Act 30 of 2023 wef 30/10/2023]


document_id: ita-1947
provision_ref: s38
chapter: PART 10 - ASCERTAINMENT OF CHARGEABLE INCOME
section: 38
title: Chargeable income
content:
38. The chargeable income of any person for any year of assessment is the remainder of the person’s assessable income for that year after the reliefs and deductions allowed in this Part have been made.


document_id: ita-1947
provision_ref: s39
chapter: PART 10 - ASCERTAINMENT OF CHARGEABLE INCOME
section: 39
title: Relief and deduction for resident individual
content:
39. —(1) In the case of an individual resident in Singapore in the year of assessment, there is allowed a deduction, in respect of earned income, which is — ( a ) in the case of an individual not falling within any other paragraph, the sum of $1,000 or the amount of the earned income; ( b ) without affecting any deduction allowable under paragraph ( c ) or ( d ), in the case of an individual who, in the year immediately preceding the year of assessment, was totally blind or had any physical or mental disability which permanently and severely restricted the individual’s capacity for work, the sum of $4,000 or the amount of the earned income; [Act 30 of 2023 wef 30/10/2023] ( c ) in the case of an individual who, at any time in the year immediately preceding the year of assessment, was above 55 years of age but was not above 60 years of age, the sum of $6,000 or the amount of the earned income; and ( d ) in the case of an individual who, at any time in the year immediately preceding the year of assessment, was above 60 years of age, the sum of $8,000 or the amount of earned income, whichever is less. (2) In the case of an individual resident in Singapore in the year of assessment who, in the year immediately preceding the year of assessment — Deduction for spouse ( a ) had a spouse, living with or maintained by him or her, whose income was not more than $4,000 in that year (where the year of assessment is between the years of assessment 2010 and 2024 (both years inclusive)) or not more than $8,000 in that year (where the year of assessment is 2025 or any subsequent year of assessment), there is allowed a deduction of $2,000; [Act 35 of 2024 wef 27/11/2024] Deduction for alimony ( b ) [ Deleted by Act 22 of 2011 ] Deduction for payments under order or deed ( c ) made payments in accordance with an order of court or a deed of separation to a spouse from whom the individual was separated by such order or deed, there is allowed a deduction of the amount of such payments or $2,000, whichever is less: Provided that the total deductions allowed to any individual under this paragraph and paragraph ( a ) must not exceed $2,000; [Act 25 of 2025 wef 08/12/2025] Deduction for spouse with physical or mental infirmity ( d ) maintained a spouse — (i) who was incapacitated by reason of physical or mental infirmity; and (ii) [ Deleted by Act 29 of 2010 ] (iii) in respect of whom no deduction has been claimed by another person under paragraph ( i ) or ( j ), there is allowed in respect of — (iv) such spouse a deduction of $5,500; or (v) such spouse from whom the individual was separated by an order of court or a deed of separation, a deduction of the amount of payments made in accordance with such order or deed or $5,500, whichever is less: Provided that the total deductions allowed to the individual under this paragraph and paragraph ( a ) or ( c ) must not exceed $5,500; [Act 30 of 2023 wef 30/10/2023] [Act 25 of 2025 wef 08/12/2025] Deduction for children ( e ) maintained a child who was unmarried throughout the year preceding the year of assessment and — (i) being below 16 years of age at any time during the year preceding the year of assessment; (ii) receiving full‑time instruction at any university, college, school or other educational institution; (iii) serving under articles or indentures with a view to qualifying in a trade or profession; or (iv) incapacitated by reason of physical or mental infirmity, there is allowed in respect of each such child according to his or her age among those eligible, a deduction in accordance with the Fifth Schedule: Provided that in the case of any unmarried child incapacitated by reason of physical or mental infirmity and in respect of whom — (v) a deduction is allowable under paragraph 1 of the Fifth Schedule, the deduction is increased to $5,500 (for the year of assessment 2012, 2013 or 2014) or $7,500 (for the year of assessment 2015 or a subsequent year of assessment); or [Act 33 of 2022 wef 04/11/2022] (vi) no deduction is allowable under the Fifth Schedule, there is allowed a deduction of $5,500 (for the year of assessment 2012, 2013 or 2014) or $7,500 (for the year of assessment 2015 or a subsequent year of assessment); [Act 33 of 2022 wef 04/11/2022] ( f ) [ Deleted by Act 32 of 2019 ] Deduction for life insurance and contributions to approved pension, provident fund or society for year of assessment 2025 or before ( g ) has made insurance on the individual’s life or, in the case of a male individual, on the life of the individual’s wife with any insurance company or has contributed as an employee to an approved pension or provident fund or society or has made any contribution or suffered any abatement from the individual’s salary or pension under any Act for the time being in force in Singapore relating to widows’ and orphans’ pensions or under any approved scheme within the meaning of any such Act, there is allowed a deduction for the year of assessment 2025 or an earlier year of assessment of the aggregate of all premiums for such insurance and all such contributions and abatements paid, made or suffered by the individual in that year: Provided that — (i) in the case of any policy securing a capital sum on death (whether in conjunction with any other benefit or not), the amount to be deducted in respect of that policy must not exceed 7% of that capital sum, exclusive of any additional benefit by way of bonus, profits or otherwise; (ii) the total deductions allowable under this paragraph must not exceed $5,000, except that where the sum of the contributions mentioned in sub-paragraphs (A) and (B) exceeds $5,000, then the deduction allowed under this paragraph must be that sum: (A) contributions to any approved pension or provident fund under this paragraph, subject to subsections (6) to (9); (B) contributions to the Central Provident Fund under this paragraph, subject to subsections (6) to (10); [Act 39 of 2021 wef 01/01/2022] (ii a ) [ Deleted by Act 39 of 2021 wef 01/01/2022 ] (iii) the deduction excludes any sum contributed to an approved pension or provident fund or society unless the contribution of such sum thereto was obligatory by reason of any contract of employment or of any provision in the rules or constitution of the fund or society; (iv) the deduction excludes any sum which has been claimed and allowed to a husband or wife under this paragraph; (v) no deduction is allowed unless the insurance company has an office or a branch in Singapore, but this sub‑paragraph does not apply to any insurance contract entered into by an individual resident in Singapore before 10 August 1973; (vi) in the case of an individual who has made contributions to an approved pension or provident fund, the deduction must not exceed the contributions which would have been recoverable under section 7(2) of the Central Provident Fund Act 1953 had contributions been payable in respect of the individual to the Central Provident Fund; (vii) despite sub‑paragraph (iii), no deduction is allowed in respect of any sum contributed to the Central Provident Fund for any period on or after 1 January 1999 by an employee who holds a professional visit pass or a work pass; (viii) no deduction is allowed where the premiums for such insurance are paid with funds standing in the individual’s SRS account; (ix) in the case of an NOR individual who has elected for tax exemption under section 13K(1) for the year of assessment, the deduction must not exceed the contributions which would have been recoverable under section 7(2) of the Central Provident Fund Act 1953 in respect of the NOR individual’s apportioned employment income for the year immediately preceding the year of assessment; [Act 30 of 2024 wef 01/01/2025] Deduction for life insurance and contributions to approved pension, provident fund or society for year of assessment 2026 or after ( ga ) has — (i) made insurance on the life of the individual or the individual’s spouse with any insurance company; [Act 25 of 2025 wef 08/12/2025] (ii) made obligatory contributions to the Central Provident Fund as an employee or a Group A worker or by reason of any contract of employment; (iii) made contributions to any other approved pension or provident fund or society as an employee which are obligatory by reason of any contract of employment or of any provision in the rules or constitution of the fund or society; or (iv) made any contribution or suffered any abatement from the individual’s salary or pension under any Act for the time being in force in Singapore relating to widows’ and orphans’ pensions or under any approved scheme within the meaning of any such Act, subject to subsections (6) to (10B), there is allowed for the year of assessment 2026 or a subsequent year of assessment a deduction of the sum of all premiums for such insurance and all such contributions and abatements paid, made or suffered by the individual in that year; [Act 30 of 2024 wef 01/01/2025] Deduction for CPF contributions by self‑employed for year of assessment 2025 or before ( h ) has carried on a trade, business, profession or vocation and has made contributions to the Central Provident Fund on his or her own account, or has derived income from a trade, business, profession or vocation and has made contributions in respect of such income to the Fund which were obligatory under the Central Provident Fund Act 1953, there is to be allowed a deduction, in respect of such contributions, of an amount not exceeding 36% (for the year of assessment 2012, 2013, 2014 or 2015) or 37% (for the year of assessment 2016 or a subsequent year of assessment), or such other rate as may be prescribed of his or her assessable income for that year of assessment derived from such trade, business, profession or vocation or $30,600 (for the year of assessment 2012, 2013, 2014 or 2015), $31,450 (for the year of assessment 2016) or $37,740 (for the year of assessment 2017, 2018, 2019, 2020, 2021, 2022, 2023, 2024 or 2025), or such other amount as may be prescribed, whichever is less: Provided that — (i) where — (A) the sum of contributions to the Central Provident Fund or any other approved pension or provident fund or society under paragraph ( g ) and this paragraph exceeds $5,000 — no deduction is allowed under paragraph ( g ) in respect of premiums for life insurance; or (B) the sum mentioned in sub‑paragraph (A) does not exceed $5,000 — then the total deductions allowable under paragraph ( g ) and this paragraph must not exceed $5,000; [Act 30 of 2024 wef 01/01/2025] (i a ) [ Deleted by Act 39 of 2021 wef 01/01/2022 ] (ii) the total deductions allowable under paragraph ( g ) and this paragraph in respect of contributions to any approved pension or provident fund or society must not exceed $30,600 (for the year of assessment 2012, 2013, 2014 or 2015), $31,450 (for the year of assessment 2016) or $37,740 (for the year of assessment 2017, 2018, 2019, 2020, 2021, 2022, 2023, 2024 or 2025), or such other amount as may be prescribed where the deduction allowable under paragraph ( g ) is less than $30,600 (for the year of assessment 2012, 2013, 2014 or 2015), $31,450 (for the year of assessment 2016) or $37,740 (for the year of assessment 2017, 2018, 2019, 2020, 2021, 2022, 2023, 2024 or 2025), or such other amount as may be prescribed in respect of such contributions; [Act 33 of 2022 wef 04/11/2022] [Act 30 of 2024 wef 01/01/2025] (iii) no deduction is allowed under this paragraph where a deduction of $30,600 (for the year of assessment 2012, 2013, 2014 or 2015), $31,450 (for the year of assessment 2016) or $37,740 (for the year of assessment 2017, 2018, 2019, 2020, 2021, 2022, 2023, 2024 or 2025), or such other amount as may be prescribed or more has been allowed under paragraph ( g ) in respect of contributions to any approved pension or provident fund or society; [Act 33 of 2022 wef 04/11/2022] [Act 30 of 2024 wef 01/01/2025] (iv) where the total deductions allowable under


document_id: ita-1947
provision_ref: s39A
chapter: PART 10 - ASCERTAINMENT OF CHARGEABLE INCOME
section: 39A
title: Limit on total deduction under section 39
content:
39A. Despite anything in section 39 or the Fifth Schedule, for the year of assessment 2018 and every subsequent year of assessment, the total amount of all deductions allowable to any individual under section 39 must not exceed $80,000 for that year of assessment. [34/2016] 40. [ Repealed by Act 41 of 2020 ]


document_id: ita-1947
provision_ref: s40A
chapter: PART 10 - ASCERTAINMENT OF CHARGEABLE INCOME
section: 40A
title: Relief for non‑resident public entertainers
content:
40A. —(1) This section applies to a person who, in any year of assessment, is not resident in Singapore and who derives income as a public entertainer or derives such income and income from any other source in the year preceding that year of assessment which does not include — ( a ) any withdrawal from the person’s SRS account deemed to be income subject to tax under section 10G; or ( b ) income from the exercise of any other employment in Singapore. (2) Subject to subsection (2A), any person to whom this section applies is, if the tax payable by the person in respect of that year is attributable to income derived as a public entertainer, allowed relief in respect of that year in the following manner: ( a ) where the only source of income in Singapore is such activity as a public entertainer, by reduction of the rate of tax to 15% on every dollar of the chargeable income; ( b ) where such person possesses any other source of income in Singapore and the total assessable income exceeds the statutory income attributable to such activity as a public entertainer, by reduction of the rate of tax to 15% on such part of the chargeable income as bears the same proportion to the total chargeable income as the statutory income attributable to such activity as a public entertainer bears to the total assessable income; ( c ) where such person possesses any other source of income in Singapore and the total assessable income is equal to or less than the statutory income attributable to such activity as a public entertainer, by reduction of the rate of tax to 15% on every dollar of the chargeable income. (2A) For the purpose of subsection (2), in relation to income derived by a person as a public entertainer during the period from 22 February 2010 to 31 March 2022 (both dates inclusive), the references to 15% are each read as 10%. [37/2014; 41/2020] (3) [ Deleted by Act 41 of 2020 ] (4) In this section — “public entertainer” means a stage, radio or television artiste, a musician, an athlete or an individual exercising any profession, vocation or employment of a similar nature; “statutory income attributable to such activity as a public entertainer” means the statutory income derived from such source ascertained in accordance with section 35(1); “total assessable income” means the remainder of the statutory income of any person after the deduction allowed under section 37(3)( a ) has been made.


document_id: ita-1947
provision_ref: s40B
chapter: PART 10 - ASCERTAINMENT OF CHARGEABLE INCOME
section: 40B
title: Relief for non‑resident employees
content:
40B. —(1) This section applies to a person who, in any year of assessment, is not resident in Singapore and who derives income from the exercise of any employment in Singapore or derives such income and income from any other source in the year preceding that year of assessment which does not include — ( a ) any withdrawal from the person’s SRS account deemed to be income subject to tax under section 10G; or ( b ) income derived as a public entertainer within the meaning of section 40A. (2) Any person to whom this section applies is, if the tax payable by the person in respect of that year is attributable to income derived from the exercise of an employment in Singapore, allowed relief in respect of that year in the following manner: ( a ) where the only source of income in Singapore is such activity as a non‑resident employee, by reduction of the rate of tax to 15% on every dollar of the chargeable income; ( b ) where such person possesses any other source of income in Singapore and the total assessable income exceeds the statutory income attributable to such activity as a non‑resident employee, by reduction of the rate of tax to 15% on such part of the chargeable income as bears the same proportion to the total chargeable income as the statutory income attributable to such activity as a non‑resident employee bears to the total assessable income; ( c ) where such person possesses any other source of income in Singapore and the total assessable income is equal to or less than the statutory income attributable to such activity as a non‑resident employee, by reduction of the rate of tax to 15% on every dollar of the chargeable income. (3) The relief available to any person under subsection (2) must be so limited that the tax payable in respect of such income must not be less than that which would be payable by a resident of Singapore in the same circumstances. (3A) To avoid doubt, for the purpose of subsection (3), section 39A applies to the computation of the tax that would be payable by a resident of Singapore in the circumstances mentioned in that subsection. [34/2016] (4) [ Deleted by Act 41 of 2020 ] (5) In this section — “non‑resident employee” means an individual who has exercised an employment in Singapore for such period of time as not to qualify for the status of a resident and includes an individual who is in receipt of leave pay attributable to a period of employment in Singapore but excludes a director of a company; “statutory income attributable to such activity as a non‑resident employee” means the statutory income derived from such source ascertained in accordance with section 35(1); “total assessable income” means the remainder of the statutory income of any person after the deduction allowed under section 37(3)( a ) has been made.


document_id: ita-1947
provision_ref: s40C
chapter: PART 10 - ASCERTAINMENT OF CHARGEABLE INCOME
section: 40C
title: Relief for non‑resident SRS members
content:
40C. —(1) This section applies to a person who, in any year of assessment, is not resident in Singapore and who makes any withdrawal from the person’s SRS account which is deemed to be income subject to tax under section 10G or derives such income and income from any other source in the year preceding that year of assessment which does not include — ( a ) income from the exercise of any employment in Singapore; or ( b ) income derived as a public entertainer within the meaning of section 40A. (2) Any person to whom this section applies is, if the tax payable by the person in respect of that year of assessment is attributable to withdrawals from the person’s SRS account, allowed relief in respect of that year of assessment in the following manner: ( a ) where the withdrawals from the person’s SRS account are the person’s only source of income, by reduction of the rate of tax to 15% on every dollar of the chargeable income; ( b ) where the person possesses any other source of income in Singapore and the total assessable income exceeds the statutory income attributable to the withdrawals from the person’s SRS account, by reduction of the rate of tax to 15% on such part of the chargeable income as bears the same proportion to the total chargeable income as the statutory income attributable to the withdrawals from the person’s SRS account bears to the total assessable income; ( c ) where the person possesses any other source of income in Singapore and the total assessable income is equal to or less than the statutory income attributable to the withdrawals from the person’s SRS account, by reduction of the rate of tax to 15% on every dollar of the chargeable income. (3) The relief available to any person under subsection (2) must be so limited that the tax payable in respect of such income must not be less than that which would be payable by a resident of Singapore in the same circumstances. (3A) To avoid doubt, for the purpose of subsection (3), section 39A applies to the computation of the tax that would be payable by a resident of Singapore in the circumstances mentioned in that subsection. [34/2016] (4) [ Deleted by Act 41 of 2020 ] (5) In this section — “statutory income attributable to the withdrawals from the person’s SRS account” means the statutory income of a person derived from such source as ascertained under section 35(1); “total assessable income” means the remainder of the statutory income of a person after the deduction allowed under section 37(3)( a ) has been made; “withdrawals from the person’s SRS account” means all withdrawals from the SRS account of a person which are deemed to be income subject to tax under section 10G.


document_id: ita-1947
provision_ref: s40D
chapter: PART 10 - ASCERTAINMENT OF CHARGEABLE INCOME
section: 40D
title: Relief for non‑resident deriving income from activity as public entertainer and employee, etc.
content:
40D. —(1) This section applies to a person who, in any year of assessment, is not resident in Singapore and who derives income from 2 or more of the following sources (called in this section relevant income) in the year preceding that year of assessment: ( a ) income derived as a public entertainer within the meaning of section 40A; ( b ) income from the exercise of any employment in Singapore; and ( c ) any withdrawal from the person’s SRS account. (2) Any person to whom this section applies is, if the tax payable by the person in respect of that year of assessment is attributable to the relevant income, allowed relief in respect of that year of assessment in the following manner: ( a ) where the person only derives the relevant income in Singapore, by reduction of the rate of tax to the rate specified under section 40A, 40B or 40C (as the case may be) on every dollar of the chargeable income attributable to the source of income mentioned in subsection (1)( a ), ( b ) or ( c ), respectively; ( b ) where the person possesses any other source of income in Singapore and the total assessable income exceeds the statutory income attributable to the sources giving rise to the relevant income, by reduction of the rate of tax to — (i) the rate of tax specified in section 40A(2) on such part of the chargeable income as bears the same proportion to the total chargeable income as the statutory income attributable to such activity as a public entertainer bears to the total assessable income; (ii) the rate of tax specified in section 40B(2) on such part of the chargeable income as bears the same proportion to the total chargeable income as the statutory income attributable to such activity as a non‑resident employee bears to the total assessable income; and (iii) the rate of tax specified in section 40C(2) on such part of the chargeable income as bears the same proportion to the total chargeable income as the statutory income attributable to the withdrawals from the person’s SRS account bears to the total assessable income; ( c ) where the person possesses any other source of income in Singapore and the total assessable income is equal to or less than the statutory income attributable to the sources giving rise to the relevant income, by reduction of the rate of tax to — (i) the lowest of the rates specified under sections 40A(2), 40B(2), 40C(2) and 43(1)( b ) (as the case may be) on every dollar of the chargeable income or the amount of statutory income attributable to that source which is subject to tax at that lowest rate, whichever is less; (ii) the second lowest of the rates specified under sections 40A(2), 40B(2), 40C(2) and 43(1)( b ) (as the case may be) on every dollar of the chargeable income in excess of the statutory income taxed at the lowest rate, or the amount of statutory income attributable to that source which is subject to tax at that second lowest rate, whichever is less; and (iii) the third lowest of the rates specified under sections 40A(2), 40B(2), 40C(2) and 43(1)( b ) (as the case may be) on every dollar of the chargeable income in excess of the statutory income taxed at the other 2 lower rates, or the amount of statutory income attributable to that source which is subject to tax at that third lowest rate, whichever is less. (3) The relief available to any person under subsection (2) must be so limited that the tax payable in respect of the income mentioned in subsection (1)( b ) or ( c ), must not be less than that which would be payable by a resident of Singapore in the same circumstances. (3A) To avoid doubt, for the purpose of subsection (3), section 39A applies to the computation of the tax that would be payable by a resident of Singapore in the circumstances mentioned in that subsection. [34/2016] (4) For the purposes of computing the tax payable by a resident of Singapore in the same circumstances mentioned in subsection (3), the statutory income derived as a public entertainer by a person to whom this section applies is excluded. (5) [ Deleted by Act 41 of 2020 ] (6) In this section — “non‑resident employee” has the meaning given by section 40B; “public entertainer” has the meaning given by section 40A; “statutory income attributable to such activity as a non‑resident employee” has the meaning given by section 40B; “statutory income attributable to such activity as a public entertainer” has the meaning given by section 40A; “statutory income attributable to the withdrawals from the person’s SRS account” has the meaning given by section 40C; “total assessable income” means the remainder of the statutory income of a person after the deduction allowed under section 37(3)( a ) has been made; “withdrawals from the person’s SRS account” has the meaning given by section 40C.


document_id: ita-1947
provision_ref: s41
chapter: PART 10 - ASCERTAINMENT OF CHARGEABLE INCOME
section: 41
title: Proof of claims for deduction or relief
content:
41. —(1) Every individual who claims any deduction or relief under this Part must make his or her claim on the proper form. (2) Such deduction or relief must be granted if the claim contains such particulars and is supported by such proof as the Comptroller may require.


document_id: ita-1947
provision_ref: s42
chapter: PART 11 - RATES OF TAX
section: 42
title: Rates of tax upon individuals
content:
42. —(1) There is to be levied and paid for each year of assessment upon the chargeable income of every person (other than a body of persons, a company, a person not resident in Singapore, a trustee who is not the trustee of an incapacitated person, or an executor), tax in accordance with the rates specified in Part A of the Second Schedule in respect of the chargeable income of an individual. [27/2021] [S 40/2022] (2) [ Deleted by Act 27 of 2021 ]


document_id: ita-1947
provision_ref: s42A
chapter: PART 11 - RATES OF TAX
section: 42A
title: Rebate for children of family
content:
42A. —(1) Where an individual resident in Singapore has — ( a ) a second child of the family born to him or her on or after 1 January 2004 who is legitimate at the time of the birth; ( b ) an illegitimate second child of the family born to him or her on or after 1 January 2004 and the individual becomes lawfully married to the other natural parent of the child before the child reaches 6 years of age; ( c ) a second child of the family adopted by him or her under any written law relating to the adoption of children on or after 1 January 2004 and before 1 January 2006; or ( d ) a second child of the family adopted by him or her under any written law relating to the adoption of children on or after 1 January 2006 and before the child reaches 6 years of age, then there is, in respect of that child, to be allowed for the year of assessment immediately following the year of the birth in the case of paragraph ( a ), the year of the marriage in the case of paragraph ( b ), or the year of the adoption in the case of paragraph ( c ) or ( d ), a rebate of $10,000 against the tax payable by that individual. (2) Where an individual resident in Singapore has — ( a ) a third or fourth child of the family born to him or her on or after 1 January 2004 who is legitimate at the time of the birth; ( b ) an illegitimate third or fourth child of the family born to him or her on or after 1 January 2004 and the individual becomes lawfully married to the other natural parent of the child before the child reaches 6 years of age; ( c ) a third or fourth child of the family adopted by him or her under any written law relating to the adoption of children on or after 1 January 2004 and before 1 January 2006; or ( d ) a third or fourth child of the family adopted by him or her under any written law relating to the adoption of children on or after 1 January 2006 and before the child reaches 6 years of age, then there is, in respect of that child, to be allowed for the year of assessment immediately following the year of the birth in the case of paragraph ( a ), the year of the marriage in the case of paragraph ( b ), or the year of the adoption in the case of paragraph ( c ) or ( d ), a rebate of $20,000 against the tax payable by that individual. (2A) Where an individual resident in Singapore has — ( a ) a first child of the family born to him or her on or after 1 January 2008 who is legitimate at the time of the birth; ( b ) an illegitimate first child of the family born to him or her on or after 1 January 2008 and the individual becomes lawfully married to the other natural parent of the child before the child reaches 6 years of age; or ( c ) a first child of the family adopted by him or her under any written law relating to the adoption of children on or after 1 January 2008 and before the child reaches 6 years of age, then there is, in respect of that child, to be allowed for the year of assessment immediately following the year of the birth in the case of paragraph ( a ), the year of marriage in the case of paragraph ( b ), or the year of the adoption in the case of paragraph ( c ), a rebate of $5,000 against the tax payable by that individual. (2B) Where an individual resident in Singapore has — ( a ) a fifth or subsequent child of the family born to him or her on or after 1 January 2008 who is legitimate at the time of the birth; ( b ) an illegitimate fifth or subsequent child of the family born to him or her on or after 1 January 2008 and the individual becomes lawfully married to the other natural parent of the child before the child reaches 6 years of age; or ( c ) a fifth or subsequent child of the family adopted by him or her under any written law relating to the adoption of children on or after 1 January 2008 and before the child reaches 6 years of age, then there is, in respect of that child, to be allowed for the year of assessment immediately following the year of the birth in the case of paragraph ( a ), the year of marriage in the case of paragraph ( b ), or the year of the adoption in the case of paragraph ( c ), a rebate of $20,000 against the tax payable by that individual. (2C) Where more than one individual is entitled to claim the rebate mentioned in subsection (1), (2), (2A) or (2B), the rebate is to be apportioned between them in such proportion as they may agree or, in the absence of any agreement, in such manner as appears to the Comptroller to be reasonable. (3) For the purposes of subsections (1) to (2C), where full effect cannot be given to the rebate in respect of any child by reason of an insufficiency of the tax payable by an individual for that year of assessment, the balance of the unabsorbed rebate is available for deduction against the tax payable by the individual for the year of assessment immediately following that year of assessment and any subsequent year of assessment. (4) Where the child in respect of whom a rebate is allowable to an individual under this section is adopted by another person, the rebate or balance (if any) of the unabsorbed rebate is not available for deduction against the tax payable by the individual for any year of assessment following the year in which the child is adopted. (5) Where, for the year of assessment 2005 or any subsequent year of assessment, an individual would have been entitled to claim any rebate or balance of the unabsorbed rebate under section 42A(1) and (2)( a ) in force immediately before 1 January 2005 but for the repeal of that section, such rebate or balance is, subject to subsection (4), available for deduction against the tax payable by that individual for the year of assessment 2005 and any subsequent year of assessment; but where more than one individual is entitled to claim such rebate, the rebate is to be apportioned between them in such proportion as they may agree or, in the absence of any agreement, in such manner as appears to the Comptroller to be reasonable. (6) Where, for the year of assessment 2005 or any subsequent year of assessment, a married woman would have been entitled to claim any rebate or balance of the unabsorbed rebate under section 42A(2)( b ) and (3) in force immediately before 1 January 2005 but for the repeal of that section — ( a ) such rebate or balance is, subject to subsection (4), available for deduction against the tax payable by that woman for the year of assessment 2005 and any subsequent year of assessment up to 9 years of assessment immediately following the year of birth of the third child or fourth child, as the case may be; and ( b ) where the fourth child is born within 9 years of the birth of the third child and full effect cannot be given to the rebate in respect of the fourth child by reason of an insufficiency of the tax payable by that woman for that year of assessment, the rebate or balance (if any) of the unabsorbed rebate is, subject to subsection (4), available for deduction, in the case of the fourth child, against the tax payable by that woman for up to 9 years of assessment immediately following the last year of assessment in which the rebate in respect of the third child may be allowed under paragraph ( a ). (7) Where, for the year of assessment 2005 or any subsequent year of assessment, a married woman would have been entitled to claim any rebate or balance of the unabsorbed rebate under section 42A(1), (2) and (3) in force immediately before 1 January 2005 but for the repeal of that section, the rebate or balance of the unabsorbed rebate in respect of the third child or fourth child (as the case may be) under section 42A(2)( b ) and (3) in force immediately before 1 January 2005 must — ( a ) subject to subsection (4), first be allowed for deduction against the tax payable by that woman before the rebate or balance of the unabsorbed rebate under section 42A(1) and (2)( a ) in force immediately before 1 January 2005 is allowed; and ( b ) subject to section 42A(4)( b ) and ( c ) in force immediately before 1 January 2005, be available for deduction for the year of assessment 2005 and any subsequent year of assessment. (8) Where a marriage has been dissolved by divorce or annulment and an individual is entitled to claim — ( a ) any rebate or balance of the unabsorbed rebate under section 42A(1) or (2) in force immediately before 1 January 2005, but for the repeal of that section, in respect of any child born to the individual from that marriage; and ( b ) any rebate under section 42A(1) or (2) in force immediately before 1 January 2005, but for the repeal of that section, in respect of any child born to the individual after the dissolution of the marriage, subsections (5), (6) and (7) only apply to any second, third or fourth child (as the case may be) born to the individual after the dissolution of the marriage. (9) Where a marriage was dissolved by divorce or annulment before 1 January 2002 and an individual would, but for section 42A(3)( e ) in force immediately before that date, have been entitled to claim any rebate or balance of the unabsorbed rebate under section 42A(1) or (2) in force immediately before 1 January 2005, such rebate or balance is, subject to section 42A(4)( a ) to ( d ) in force immediately before 1 January 2005, available for deduction against the tax payable by that individual only on due claim by that individual after that date and only for any year of assessment from the year of the claim. (10) No rebate is allowed under this section for the year of assessment 2008 or a preceding year of assessment, in respect of a child who at the time of his or her birth or adoption or the marriage of his or her natural parents (as the case may be), has more than 3 other siblings who are members of the same household. (10A) No rebate is allowed under this section in respect of a child who is adopted by an individual before the individual is married. (11) In this section — “first child of the family” means a child of the family who — ( a ) is a citizen of Singapore at the time of his or her birth or adoption or the marriage of his or her natural parents (as the case may be), or within 12 months thereafter; and ( b ) at the time of his or her birth, adoption or the marriage of his or her natural parents (as the case may be), has no other sibling who is a member of the same household; “second child of the family” means a child of the family who — ( a ) is a citizen of Singapore at the time of his or her birth or adoption or the marriage of his or her natural parents (as the case may be), or within 12 months thereafter; and ( b ) at the time of his or her birth, adoption or the marriage of his or her natural parents (as the case may be), has one other sibling who is a member of the same household; “third child of the family” means a child of the family who — ( a ) is a citizen of Singapore at the time of his or her birth or adoption or the marriage of his or her natural parents (as the case may be), or within 12 months thereafter; and ( b ) at the time of his or her birth, adoption or the marriage of his or her natural parents (as the case may be), has 2 other siblings who are members of the same household; “fourth child of the family” means a child of the family who — ( a ) is a citizen of Singapore at the time of his or her birth or adoption or the marriage of his or her natural parents (as the case may be), or within 12 months thereafter; and ( b ) at the time of his or her birth, adoption or the marriage of his or her natural parents (as the case may be), has 3 other siblings who are members of the same household; “fifth or subsequent child of the family” means a child of the family who — ( a ) is a citizen of Singapore at the time of his or her birth or adoption or the marriage of his or her natural parents (as the case may be), or within 12 months thereafter; and ( b ) at the time of his or her birth, adoption or the marriage of his or her natural parents (as the case may be), has at least 4 other siblings who are members of the same household; “


document_id: ita-1947
provision_ref: s43
chapter: PART 11 - RATES OF TAX
section: 43
title: Rate of tax upon companies and others
content:
43. —(1) There is to be levied and paid for each year of assessment upon the chargeable income of — ( a ) every company or body of persons, tax at the rate of 17% on every dollar of the chargeable income thereof; ( b ) every individual not resident in Singapore — (i) for the year of assessment 2023 or a preceding year of assessment, tax at the rate of 22% on every dollar of the chargeable income thereof; and (ii) for the year of assessment 2024 and subsequent years of assessment, tax at the rate of 24% on every dollar of the chargeable income thereof; and [Act 33 of 2022 wef 04/11/2022] ( c ) every other person not resident in Singapore, trustee (other than the trustee of an incapacitated person) and executor, tax at the rate of 17% on every dollar of the chargeable income thereof. [2/2016; 41/2020] (2) Where any trustee proves to the Comptroller’s satisfaction that any beneficiary of the trust is entitled to a share of the trust income, a corresponding share of the statutory income of the trustee may be charged at a lower rate or not charged with any tax, as the Comptroller determines. (2AA) Subsection (2) does not apply to a trust that is a REIT exchange‑traded fund unless it is an approved REIT exchange‑traded fund. [45/2018] (2A) Subsection (2) does not apply to — ( a ) in the case of a real estate investment trust, any income from any trade or business carried on by the trustee, other than the following income distributed by the trustee in cash or, if the conditions specified in subsection (2B) are satisfied, in units in the trust: (i) rental income, income from the management or holding of immovable property, co-location income or co-working space income, but not including gains from the disposal of immovable property; [Act 25 of 2025 wef 01/07/2025] (ii) income that is ancillary to the management or holding of immovable property, or that is ancillary to co-location income or co-working space income, but not including gains from the disposal of immovable property; [Act 25 of 2025 wef 01/07/2025] (iii) income that is payable out of rental income or income from the management or holding of immovable property in Singapore, or co-location income or co-working space income in relation to immovable property in Singapore, but not out of gains from the disposal of such immovable property; [Act 25 of 2025 wef 01/07/2025] (iv) distribution from an approved sub‑trust of the real estate investment trust out of income mentioned in paragraph ( b )(i), (ii) and (iii); (v) rental support payment in relation to any immovable property, which is paid to the trustee by — (A) the person ( A ) who sold to the trustee the property or any interest in the owner of the property; (B) a person who wholly owns (directly or indirectly) A ; or (C) any other person approved by the Comptroller; ( b ) in the case of any approved sub‑trust of a real estate investment trust, any income from any trade or business carried on by the trustee, other than the following income distributed by the trustee in cash to the trustee of the real estate investment trust: (i) rental income, income from the management or holding of immovable property, co-location income or co-working space income, but not including gains from the disposal of immovable property; [Act 25 of 2025 wef 01/07/2025] (ii) income that is ancillary to the management or holding of immovable property, or that is ancillary to co-location income or co-working space income, but not including gains from the disposal of immovable property; [Act 25 of 2025 wef 01/07/2025] (iii) rental support payment in relation to any immovable property, which is paid to the firstmentioned trustee by — (A) the person ( A ) who sold to that trustee the property or any interest in the owner of the property; (B) a person who wholly owns (directly or indirectly) A ; or (C) any other person approved by the Comptroller; ( ba ) in the case of an approved REIT exchange‑traded fund, any income from any trade or business carried on by its trustee, other than a distribution in cash received on or after 1 July 2018 from a real estate investment trust, that is in turn made out of any income mentioned in paragraph ( a )(i) to (v); or [Act 25 of 2025 wef 08/12/2025] ( c ) in the case of any other trust, any income from any trade or business carried on by the trustee. [34/2016; 45/2018; 32/2019] (2B) The conditions referred to in subsection (2A)( a ) are — ( a ) the distribution is made at any time on or after 1 April 2012 by the trustee of the real estate investment trust out of income specified in subsection (2A)( a )(i) to (v); ( b ) before the distribution, the trustee of the real estate investment trust has given to unitholders receiving the distribution an option to receive the same either in cash or units in the trust; and ( c ) the trustee of the real estate investment trust has sufficient cash available on the date of such distribution to make the distribution fully in cash had no option been given to those unitholders to receive the distribution in units in the trust. [34/2016; 32/2019] (2C) To avoid doubt, subsection (2) (read with subsection (2A)( ba )) does not affect the operation of section 35(12) in relation to an approved REIT exchange‑traded fund that is also a designated unit trust within the meaning of section 35(14). [45/2018] (2D) In subsection (2A)( a ) and ( b ), any reference to co-location income or co-working space income is to such income that is derived on or after 1 July 2025. [Act 25 of 2025 wef 01/07/2025] (3) Despite anything in this Act but subject to subsection (3A), tax at the rate of 15% is to be levied and paid on the gross amount of — ( a ) any income referred to in section 12(6); and ( b ) any income referred to in section 12(7)( a ), ( b ) and ( d ) but excluding the incomes specified in subsection (7), accruing in or derived from Singapore on or after 28 February 1996 by a person not resident in Singapore which is not derived by the person from any trade, business, profession or vocation carried on or exercised by the person in Singapore and which is not effectively connected with any permanent establishment in Singapore of the person. (3A) Despite anything in this Act, tax at the rate of 10% is to be levied and paid on the gross amount of any income referred to in section 12(7)( a ) and ( b ) but excluding the incomes specified in subsection (7), accruing in or derived from Singapore on or after 1 January 2005 by a person not resident in Singapore which is not derived by the person from any trade, business, profession or vocation carried on or exercised by the person in Singapore and which is not effectively connected with any permanent establishment in Singapore of the person. (3B) Despite anything in this Act, tax at the rate of 10% is to be levied and paid on the gross amount of any distribution made out of any income mentioned in subsection (2A)( a )(i), (ii), (iii), (iv) and (v) during the period from 18 February 2005 to 31 December 2030 (both dates inclusive) by a trustee of any real estate investment trust to a person (other than an individual) not resident in Singapore — ( a ) who does not have any permanent establishment in Singapore; or ( b ) who carries on any operation in Singapore through a permanent establishment in Singapore, where the funds used by that person to acquire the units in that real estate investment trust are not obtained from that operation. [37/2014; 2/2016; 34/2016; 32/2019] [Act 25 of 2025 wef 08/12/2025] (3C) Despite anything in this Act, tax at the rate of 10% is levied and must be paid on the gross amount of any distribution by a trustee of an approved REIT exchange‑traded fund that is — ( a ) made out of a distribution by a real estate investment trust that is in turn made out of income of the kinds mentioned in subsection (2A)( a )(i), (ii), (iii), (iv) and (v); ( b ) made during the period from 1 July 2018 to 31 December 2030 (both dates inclusive); and [Act 25 of 2025 wef 08/12/2025] ( c ) made to a person (other than an individual) not resident in Singapore — (i) that does not have any permanent establishment in Singapore; or (ii) that carries on any operation in Singapore through a permanent establishment in Singapore, where the funds used by that person to acquire the units in that approved REIT exchange‑traded fund are not obtained from that operation. [45/2018; 32/2019] (3D) In the application of subsection (3B) to a distribution mentioned in that subsection made during the period from 1 July 2019 to 31 December 2030 (both dates inclusive) to a person mentioned in subsection (3F) with a fund manager in Singapore, that fund manager is not considered a permanent establishment in Singapore of that person. [32/2019] [Act 25 of 2025 wef 08/12/2025] (3E) In the application of subsection (3C) to a distribution mentioned in that subsection made during the period from 1 July 2019 to 31 December 2030 (both dates inclusive) to a person mentioned in subsection (3F) with a fund manager in Singapore, that fund manager is not considered a permanent establishment in Singapore of that person. [32/2019] [Act 25 of 2025 wef 08/12/2025] (3F) Subsection (3D) or (3E) applies to a distribution made to any of the following persons or entities that is not resident in Singapore: ( a ) a prescribed person (other than an individual) under section 13D; ( aa ) a partner of an approved limited partnership under section 13OA; [Act 25 of 2025 wef 01/01/2025] ( b ) an approved person under section 13U; ( c ) a person (not being an individual, a body of persons or a Hindu joint family) that is the approved master fund or an approved feeder fund of an approved master‑feeder fund structure under section 13U; ( d ) a partner of a partnership (including a limited partnership and a limited liability partnership), where the partnership is the approved master fund or an approved feeder fund of an approved master‑feeder fund structure under section 13U; ( e ) a trustee of a trust fund where the trust fund is the approved master fund or an approved feeder fund of an approved master‑feeder fund structure under section 13U; ( f ) a taxable entity in relation to the approved master fund or an approved feeder fund of an approved master‑feeder fund structure under section 13U, where the master fund or feeder fund is not a legal entity; ( g ) a company, a trustee of a trust fund or a partner of a limited partnership, where the company, trust fund or limited partnership is an approved feeder fund of an approved master‑feeder fund‑SPV structure under section 13U; ( h ) a person (not being a company, an individual or a Hindu joint family) that is an approved feeder fund of an approved master‑feeder fund‑SPV structure under section 13U; ( i ) a partner of a partnership (excluding a limited partnership but including a limited liability partnership), where the partnership is an approved feeder fund of an approved master‑feeder fund‑SPV structure under section 13U; ( j ) a taxable entity in relation to an approved feeder fund of an approved master‑feeder fund‑SPV structure under section 13U, where the feeder fund is not a legal entity; ( k ) an approved 1st tier SPV of an approved master‑feeder fund‑SPV structure under section 13U; ( l ) an approved 2nd tier SPV of an approved master‑feeder fund‑SPV structure under section 13U; ( m ) an approved eligible SPV of an approved master‑feeder fund‑SPV structure under section 13U, where the eligible SPV is not one mentioned in paragraphs ( n ), ( o ) and ( p ); ( n ) a partner of an approved eligible SPV of an approved master‑feeder fund‑SPV structure under section 13U, where the eligible SPV is a partnership (including a limited partnership and a limited liability partnership); ( o ) the trustee of an approved eligible SPV of an approved master‑feeder fund‑SPV structure under section 13U, where the eligible SPV is a trust fund; ( p ) the taxable entity of an approved eligible SPV of an approved master‑feeder 


document_id: ita-1947
provision_ref: s43A
chapter: PART 11 - RATES OF TAX
section: 43A
title: Concessionary rate of tax for Asian Currency Unit, Fund Manager and securities company
content:
43A. —(1) Despite section 43, the Minister may by regulations provide that tax at the rate of 10% is to be levied and paid for each year of assessment upon such income derived before 1 January 2004 as the Minister may specify of — ( a ) a financial institution with an Asian Currency Unit; ( b ) a Fund Manager; ( c ) a company holding a capital markets services licence under the Securities and Futures Act 2001 to deal in securities or that is exempted under that Act from holding such a licence, approved by the Minister or such person as the Minister may appoint. [34/2016] (2) Regulations made under subsection (1) may provide for — ( a ) exemption from tax of any income mentioned in that subsection; ( b ) exemption from tax of such income as the Minister may specify of — (i) a bank or merchant bank licensed under the Banking Act 1970; and (ii) a company approved under subsection (1)( c ), derived by it from any approved syndicated offshore credit or guarantee facility or any other syndicated offshore credit or guarantee facility made before 1 January 2004 which satisfies the prescribed criteria; ( c ) deduction of losses, capital allowances and donations otherwise than in accordance with this Act; ( d ) circumstances in which any losses (including impairment loss recognised under FRS 39, as defined in section 34A, and expected credit loss recognised under FRS 109 or SFRS(I) 9, as defined in section 34AA) incurred in respect of any facility mentioned in paragraph ( b ), and capital allowances and donations attributable to income from such facility which has been allowed as a deduction against any income chargeable to tax, may be deemed as income chargeable to tax (at such rate as may be prescribed) for a specified basis period; ( e ) adjustment of any amount deemed as income chargeable to tax mentioned in paragraph ( d ) for the specified basis period; ( f ) circumstances in which any income from any facility mentioned in paragraph ( b ) to be exempt from tax, may be adjusted for any basis period in which the income from such facility is derived; ( g ) circumstances in which any impairment loss, bad debt or provision for doubtful debt in respect of any facility mentioned in paragraph ( b ), which has previously been allowed as a deduction against any income chargeable to tax and which is subsequently reversed, recovered or written back, may be deemed as income chargeable to tax (at such rate as may be prescribed) for any basis period in which the reversal is recognised or the recovery or write‑back occurs; and ( h ) generally for giving full effect to or for carrying out the purposes of this section. [39/2017; 32/2019; 1/2020]


document_id: ita-1947
provision_ref: s43B
chapter: PART 11 - RATES OF TAX
section: 43B
title: Special rate of tax for non‑resident shipowner or charterer or air transport undertaking
content:
43B. Despite section 43, where the tax authority of a foreign country taxes the profits derived by a person resident in Singapore from carrying on the business of a shipowner or charterer or of air transport at a rate which exceeds the rate prescribed by section 43, the Minister may direct that the profits derived in Singapore from the carrying on of such business by a non‑resident person who is resident in that foreign country be charged to tax at a rate similar to that charged by the tax authority of that foreign country.


document_id: ita-1947
provision_ref: s43C
chapter: PART 11 - RATES OF TAX
section: 43C
title: Exemption and concessionary rate of tax for insurance and reinsurance business
content:
43C. —(1) Despite section 43, the Minister may make regulations — ( a ) to provide for tax at the rate of 10% to be levied and paid for each year of assessment upon such income as the Minister may specify that is derived before 1 July 2021 by an approved insurer, whose approval is granted before 1 June 2017, from offshore life business within the meaning of section 26, or the business (other than the business of life assurance) of insuring and reinsuring offshore risks; ( aa ) to provide for tax at the rate specified in the first column of the following table, to be levied and paid for each year of assessment upon such income as the Minister may specify that is derived by an approved insurer set out opposite that rate in the second column of the table, from the reinsurance of liabilities under policies relating to life business as defined in section 3(1)( a ) of the Insurance Act 1966, or such description of general business within the meaning of section 3(1)( b ) of that Act, as may be prescribed: Tax rate Approved insurer 10% An approved insurer whose approval is granted between 1 June 2017 and 18 February 2025 (both dates inclusive) 10% or 15% An approved insurer whose approval is granted on or after 19 February 2025 [Act 25 of 2025 wef 01/01/2025] ( ab ) to provide for tax at the rate of 10% to be levied and paid for each year of assessment upon such income as the Minister may specify that is derived on or after 1 July 2021 by an approved insurer whose approval is granted before 1 June 2017, from — (i) the reinsurance of liabilities under policies relating to life business as defined in section 3(1)( a ) of the Insurance Act 1966; or (ii) such description of general business as defined in section 3(1)( b ) of that Act, as may be prescribed; ( b ) to provide for exemption from tax of such income as the Minister may specify that is derived from insurance and reinsurance business by the following: (i) an approved specialised insurer whose approval is granted before 1 September 2016; (ii) an approved captive insurer whose approval is granted before 1 April 2018; ( c ) to provide for tax at the rate specified in the first column of the following table, to be levied and paid for each year of assessment upon such income as the Minister may specify that is derived from insurance and reinsurance business by an approved insurer set out opposite that rate in the second column of the table: Tax rate Approved insurer 5% An approved specialised insurer whose approval is granted between 1 September 2016 and 31 August 2019 (both dates inclusive), and who had not been approved as such at any time before the date of the approval 8% An approved specialised insurer whose approval is granted between 1 September 2019 and 31 August 2021 (both dates inclusive), and who had not been approved as such at any time before the date of the approval 10% (i) An approved specialised insurer whose approval is granted between 1 September 2016 and 31 August 2021 (both dates inclusive), and who had been approved as such at any time before the date of the firstmentioned approval (ii) An approved captive insurer whose approval is granted between 1 April 2018 and 18 February 2025 (both dates inclusive) 10% or 15% An approved captive insurer whose approval is granted on or after 19 February 2025 [Act 25 of 2025 wef 01/01/2025] ( d ) to provide for exemption from tax of such income as the Minister may specify that is derived by an approved insurer whose approval is granted before 1 April 2016, from marine hull and liability insurance and reinsurance business; ( e ) to provide for tax at the rate specified in the first column of the following table, to be levied and paid for each year of assessment upon such income as the Minister may specify that is derived from marine hull and liability insurance and reinsurance business by an approved insurer set out opposite that rate in the second column of the table: Tax rate Approved insurer 5% An approved insurer whose approval was granted between 19 February 2011 and 31 March 2016 (both dates inclusive), and who had been approved as such at any time before the date of the firstmentioned approval 10% An approved insurer whose approval is granted between 1 April 2016 and 31 March 2020 (both dates inclusive) ( f ) to provide for the deduction (otherwise than in accordance with this Act), from the income mentioned in paragraphs ( a ) to ( e ), of allowances under section 19, 19A, 20, 21, 22 or 23, expenses, losses and donations allowable under this Act, including deduction of these allowances, expenses, losses and donations in such manner and to such extent as the Comptroller may determine; ( g ) to provide for the period of each approval, and the conditions subject to which a specified insurer may be or may continue to be approved; and ( h ) to provide for such matters as the Minister may consider necessary or expedient for carrying out the purposes under paragraphs ( a ) to ( g ). [34/2016; 39/2017; 32/2019; 41/2020; 27/2021] (2) No approval may be granted to an insurer for the purpose of paragraph ( a ), ( aa ), ( b ), ( c ), ( d ) or ( e ) of subsection (1) on or after the date prescribed in the regulations for that paragraph. [34/2016; 39/2017] (2A) Regulations made under subsection (1)( aa ) or ( c ) to provide for tax at the rate of 15% to be levied and paid for each year of assessment upon income mentioned in that provision may be made to take effect from (and including) 1 January 2025. [Act 25 of 2025 wef 01/01/2025] (3) In this section — “approved” means approved by the Minister or an authorised body; [Act 41 of 2020 wef 06/12/2022] “captive insurer” has the meaning given by section 2 of the Insurance Act 1966; “insurer” means — ( a ) a company licensed under the Insurance Act 1966 to carry on insurance business in Singapore; or ( b ) a person (including a partnership), other than an individual, permitted under the Insurance Act 1966 to carry on insurance business in Singapore under a foreign insurer scheme; “marine hull and liability insurance and reinsurance business” means the business of insuring and reinsuring risks involving marine hull and liability but excludes cargo, energy and aviation risks; “specialised insurer” means an insurer underwriting any of the following insurance risks (whether or not it also underwrites any other type of risk): ( a ) terrorism risks; ( b ) political risks; ( c ) energy risks; ( d ) aviation and aerospace risks; ( e ) agriculture risks; ( f ) risks arising from a natural catastrophe. [34/2016; 39/2017]


document_id: ita-1947
provision_ref: s43D
chapter: PART 11 - RATES OF TAX
section: 43D
title: Concessionary rate of tax for headquarters company
content:
43D. —(1) Despite section 43, the Minister may by regulations provide that tax at the rate of 10% is to be levied and paid for each year of assessment upon such income as the Minister may specify of an approved headquarters company derived by it from — ( a ) the provision of such qualifying services as may be prescribed to its offices, associated companies and other persons where such offices, associated companies and persons are outside Singapore; or ( b ) such qualifying treasury, investment or financial activities as may be prescribed, and those regulations may provide for the deduction of losses otherwise than in accordance with section 37(3). [34/2016] (1A) This section does not apply to any income derived on or after 1 October 2015. [2/2016] (2) The concessionary rate of tax referred to in subsection (1) applies to an approved headquarters company — ( a ) in respect of any qualifying service only where the qualifying service and the office, associated company or person to whom the service is rendered have been approved in relation to that headquarters company for such concessionary rate; ( b ) in respect of any qualifying treasury, investment or financial activity only where the qualifying activity has been approved in relation to that headquarters company for such concessionary rate; and ( c ) subject to such conditions as the Minister or such person as the Minister may appoint may impose. (3) Regulations made under subsection (1) may provide for exemption from tax of income derived by an approved headquarters company from the provision of any qualifying service if — ( a ) the qualifying service and the office, associated company or person to whom the service is rendered have been approved in relation to the approved headquarters company for the purposes of the exemption from tax; and ( b ) the approved headquarters company has global responsibility for the provision of any qualifying service. (4) In this section — “approved” means approved by the Minister or such person as the Minister appoints; “associated company”, in relation to an approved headquarters company, means a company — ( a ) the operations of which are or can be controlled, directly or indirectly, by that headquarters company; ( b ) which controls or can control, directly or indirectly, the operations of that headquarters company; or ( c ) the operations of which are or can be controlled, directly or indirectly, by a person or persons who control or can control, directly or indirectly, the operations of that headquarters company; “headquarters company” means a company carrying on the business in Singapore of providing management, technical or other supporting services to its offices outside Singapore or to its associated companies outside Singapore. [34/2016] (5) For the purposes of subsection (4), a company is deemed to be an associated company in relation to an approved headquarters company if — ( a ) at least 25% of the total number of its issued shares are beneficially owned, directly or indirectly, by the approved headquarters company; or ( b ) at least 25% of the total number of the issued shares of the approved headquarters company are beneficially owned, directly or indirectly, by the firstmentioned company. [43E


document_id: ita-1947
provision_ref: s43E
chapter: PART 11 - RATES OF TAX
section: 43E
title: Concessionary rate of tax for Finance and Treasury Centre
content:
43E. —(1) Despite section 43, the Minister may by regulations provide that tax at the concessionary rate specified in subsection (1A) is levied and must be paid for each year of assessment upon such income as the Minister may specify of a company derived from — ( a ) the operation of its approved Finance and Treasury Centre in respect of such qualifying activities carried out on its own account as may be prescribed; or ( b ) such prescribed qualifying services as may be provided by its approved Finance and Treasury Centre to — (i) its offices and associated companies outside Singapore; or (ii) such of its offices and associated companies in Singapore as are approved on or after 18 February 2005, and those regulations may provide for the deduction of losses otherwise than in accordance with section 37(3). [34/2016] (1A) In subsection (1), the concessionary rate is — ( a ) in the case of a Finance and Treasury Centre approved as such on or before 24 March 2016, 10%; [Act 35 of 2024 wef 01/01/2024] ( b ) in the case of a Finance and Treasury Centre approved as such after 24 March 2016 and on or before 16 February 2024, 8%; [Act 35 of 2024 wef 01/01/2024] ( c ) in the case of a Finance and Treasury Centre approved as such on or after 17 February 2024, 8% or 10%, as specified by the Minister or an authorised body to the company; or [Act 35 of 2024 wef 01/01/2024] ( d ) in a case to which subsection (1B) applies, the substituted concessionary rate mentioned in that subsection but only for income derived from (and including) the date specified by the Minister or authorised body to the company for the application of that rate, which may be a date earlier than the notice mentioned in that subsection but not earlier than 1 January 2024. [34/2016] [Act 35 of 2024 wef 01/01/2024] (1B) The Minister or an authorised body may, on or after 17 February 2024, on the Minister’s or authorised body’s own initiative or on the application of the company, by notice to the company substitute the concessionary rate of tax applicable to its approved Finance and Treasury Centre under subsection (1A)( b ) or ( c ) with 8% or 10%, as the case may be. [Act 35 of 2024 wef 01/01/2024] (2) The concessionary rate of tax mentioned in subsection (1) applies to an approved Finance and Treasury Centre — ( a ) in respect of any qualifying service only where the qualifying service and the office or associated company to whom the service is rendered have been approved in relation to that Centre for such concessionary rate; and ( b ) in respect of any qualifying activity only where the qualifying activity has been approved in relation to that Centre for such concessionary rate. [32/2019] (2A) The Minister or an authorised body may, subject to such conditions as the Minister or authorised body may impose, approve a Finance and Treasury Centre for a company for the purposes of this section. [32/2019] [Act 41 of 2020 wef 12/04/2024] (3) In this section — “approved” means approved by the Minister or an authorised body; [Act 41 of 2020 wef 12/04/2024] “associated company”, in relation to a company with an approved Finance and Treasury Centre, means a company — ( a ) the operations of which are or can be controlled, directly or indirectly, by the company with the approved Centre; ( b ) which controls or can control, directly or indirectly, the operations of the company with the approved Centre; or ( c ) the operations of which are or can be controlled, directly or indirectly, by a person or persons who control or can control, directly or indirectly, the operations of the company with the approved Centre; “Finance and Treasury Centre” means a division or department of a company which provides treasury, investment or financial services in Singapore for its offices or its associated companies. [34/2016] (3A) The reference to an authorised body in subsection (1A)( c ) is, in a case where the concessionary rate of tax in that provision applicable to the approved Finance and Treasury Centre of a company is specified to the company during the period from 17 February 2024 to 11 April 2024 (both dates inclusive), a reference to a person appointed by the Minister. [Act 25 of 2025 wef 01/01/2024] (3B) A reference in subsections (1A)( d ) and (1B) to an authorised body is, in a case where the notice to substitute the concessionary rate of tax applicable to the approved Finance and Treasury Centre of a company is given to the company during the period from 17 February 2024 to 11 April 2024 (both dates inclusive), a reference to a person appointed by the Minister. [Act 25 of 2025 wef 01/01/2024] (4) For the purposes of subsection (3), a company is deemed to be an associated company in relation to a company with an approved Finance and Treasury Centre if — ( a ) at least 25% of the total number of its issued shares are beneficially owned, directly or indirectly, by the company with the approved Centre; or ( b ) at least 25% of the total number of issued shares of the company with the approved Centre are beneficially owned, directly or indirectly, by the firstmentioned company. (5) No Finance and Treasury Centre may be approved as an approved Finance and Treasury Centre under this section after 31 December 2026. [43G [34/2016; 41/2020]


document_id: ita-1947
provision_ref: s43F
chapter: PART 11 - RATES OF TAX
section: 43F
title: Concessionary rate of tax for offshore leasing of machinery and plant
content:
43F. —(1) Despite section 43, tax at the rate of 10% is to be levied and paid for each year of assessment upon the income of a leasing company accruing in or derived from Singapore in respect of offshore leasing of any machinery or plant or such other activity as may be prescribed by regulations. [34/2016] (1A) This section does not apply to any income accruing in or derived from Singapore on or after 1 January 2016. [2/2016] (2) In determining the income of a leasing company from offshore leasing — ( a ) the allowances under section 19, 19A, 20, 21, 22 or 23 must be taken into account even if no claim for such allowances has been made; ( b ) the allowances under section 19, 19A, 20, 21, 22 or 23 in respect of offshore finance leasing in any year of assessment after deduction against the income from such leasing are available as a deduction against any income from onshore finance leasing for that year of assessment, and any balance of the allowances is not, subject to paragraph ( c ), available as a deduction against any other income or available for transfer under section 37B; ( c ) where the leasing company ceases to derive income from finance leasing in the basis period for any year of assessment, any balance of the allowances in respect of finance leasing after the deduction in paragraph ( b ) is available as a deduction against any other income for that year of assessment and for any subsequent year of assessment in accordance with section 23; and ( d ) the Comptroller must determine the manner and extent to which — (i) allowances under section 19, 19A, 20, 21, 22 or 23 and any expenses and donations allowable under this Act are to be deducted; and (ii) any loss may be deducted under section 37. (3) Subsection (2) applies, with the necessary modifications, in determining the income of a leasing company from any activity prescribed by regulations made under subsection (1) as if such income were income from offshore operating leasing. (4) [ Deleted by Act 53 of 2007 ] (5) [ Deleted by Act 53 of 2007 ] (6) Despite subsection (1), a leasing company may, at any time, elect that the whole of its income accruing in or derived from Singapore in respect of offshore leasing of any machinery or plant be taxed at the rate prescribed by section 43(1)( a ). (7) An election under subsection (6) must be made by a leasing company by written notice to the Comptroller and is irrevocable. (8) Where a leasing company has made an election under subsection (6) — ( a ) subsections (1), (2) and (3) do not apply to the income of the leasing company for the year of assessment immediately following the year in which the election is made and for subsequent years of assessment; and ( b ) any allowance or the balance thereof in respect of finance leasing which was not deducted against the income of the leasing company for any year of assessment during which the concessionary rate prescribed by subsection (1) applies is available as a deduction against the income from finance leasing for the first year of assessment to which paragraph ( a ) applies and for any subsequent year of assessment. (9) In this section — “finance lease”, “finance leasing” and “onshore finance leasing” have the meanings given by section 10C(3); “leasing company” means any company carrying on a business of leasing machinery or plant; “offshore finance leasing” means the offshore leasing of any machinery or plant under any finance lease; “offshore leasing” means the leasing of any machinery or plant, other than those which have been treated as though they had been sold pursuant to regulations made under section 10C(1), where such machinery or plant is used outside Singapore, and the payments under the lease — ( a ) are in currencies other than Singapore dollars; and ( b ) are not deductible against any income accruing in or derived from Singapore; “offshore operating leasing” means the offshore leasing of any machinery or plant, other than offshore finance leasing. [43I


document_id: ita-1947
provision_ref: s43G
chapter: PART 11 - RATES OF TAX
section: 43G
title: Concessionary rate of tax for trustee company
content:
43G. —(1) Despite section 43, the Minister may by regulations provide that tax at the rate of 10% is to be levied and paid for each year of assessment upon such income as the Minister may specify of an approved trustee company derived by it from such services as may be prescribed; and those regulations may provide for exemption from tax of any such income and for the deduction of losses otherwise than in accordance with section 37(3). [34/2016] (2) In this section, “trustee company” means a company that is a licensed trust company within the meaning of the Trust Companies Act 2005, or that is exempted under that Act from holding a trust business licence within the meaning of that Act. (3) The Minister or such person as the Minister may appoint may approve a trustee company as an approved trustee company for the purposes of this section. (4) Any approval under subsection (3) must be for a period not exceeding 10 years as the Minister or the person appointed by the Minister may specify, and is subject to such conditions as the Minister may impose. (5) No trustee company may be approved under subsection (3) on or after 1 April 2016. (6) A trustee company that is an approved trustee company immediately before 1 April 2011 remains as an approved trustee company until 31 March 2021, unless its approval is revoked earlier. (7) The trustee company mentioned in subsection (6) remains as an approved trustee company subject to such conditions as the Minister may impose. [43J


document_id: ita-1947
provision_ref: s43H
chapter: PART 11 - RATES OF TAX
section: 43H
title: Concessionary rate of tax for income derived from debt securities
content:
43H. —(1) Despite section 43, the Minister may by regulations provide that tax at the rate of 10% is to be levied and paid for each year of assessment upon — ( a ) interest derived by any company from any qualifying debt securities; ( aa ) discount derived by any company from any qualifying debt securities issued during the period from 17 February 2006 to 31 December 2028 (both dates inclusive); [Act 30 of 2023 wef 30/10/2023] ( ab ) any amount payable to any company from any Islamic debt securities which are qualifying debt securities, and issued during the period from 1 January 2005 to 31 December 2028 (both dates inclusive); [Act 30 of 2023 wef 30/10/2023] ( ac ) any early redemption fee or redemption premium derived by any company from qualifying debt securities issued during the period from 15 February 2007 to 31 December 2028 (both dates inclusive); and [Act 30 of 2023 wef 15/02/2023] [Act 30 of 2023 wef 30/10/2023] ( ad ) such other income derived by any company that is directly attributable to qualifying debt securities issued on or after a prescribed date, as may be prescribed by regulations. [37/2014; 34/2016; 45/2018; 41/2020] (2) Subsection (1)( a ), ( aa ), ( ab ), ( ac ) or ( ad ) (as the case may be) does not, unless otherwise approved by the Minister or an authorised body, apply to — ( a ) any interest derived from any qualifying debt securities issued during the period from 10 May 1999 to 31 December 2028 (both dates inclusive); [Act 30 of 2023 wef 30/10/2023] ( b ) any discount from any qualifying debt securities issued during the period from 17 February 2006 to 31 December 2028 (both dates inclusive); [Act 30 of 2023 wef 30/10/2023] ( c ) any amount payable from any Islamic debt securities which are qualifying debt securities, and issued during the period from 1 January 2005 to 31 December 2028; [Act 30 of 2023 wef 30/10/2023] ( d ) any early redemption fee or redemption premium from qualifying debt securities issued during the period from 15 February 2007 to 31 December 2028 (both dates inclusive); and [Act 30 of 2023 wef 15/02/2023] [Act 30 of 2023 wef 30/10/2023] ( e ) such other income directly attributable to qualifying debt securities issued on or after a prescribed date, as may be prescribed by regulations, where 50% or more of those securities which are outstanding at any time during the life of the issue is beneficially held or funded, directly or indirectly, by related parties of the issuer of those securities and where such income is derived by — ( f ) any company which is a related party of the issuer of those securities; or ( g ) any company where the funds used by such company to acquire those securities are obtained, directly or indirectly, from any related party of the issuer of those securities. [37/2014; 45/2018; 41/2020] [Act 41 of 2020 wef 06/12/2022] (2A) Subsection (1) does not apply to income from qualifying debt securities derived by a financial sector incentive (standard tier) company. (2B) Subsection (1) does not apply to income derived by a financial sector incentive (capital market) company from qualifying debt securities on or after 1 January 2014. [45/2018] (3) Regulations made under subsection (1) may provide for exemption from tax of income derived by a primary dealer from trading in any Singapore Government securities during the period from 27 February 1999 to 31 December 2028 (both dates inclusive), and for deduction of losses otherwise than in accordance with section 37(3). [37/2014; 45/2018; 41/2020] [Act 30 of 2023 wef 30/10/2023] (3AA) Regulations made under subsection (1) — ( a ) to provide that tax at the rate of 10% is to be levied and paid on income mentioned in that subsection that is derived from any qualifying debt securities issued between 1 January 2024 and 31 December 2028 (both dates inclusive); and ( b ) to provide for exemption from tax of income derived by a primary dealer from trading in any Singapore Government securities between 1 January 2024 and 31 December 2028 (both dates inclusive), that are made in connection with the amendments to subsections (1)( aa ), ( ab ) and ( ac ) and (3) by section 36( a ) of the Income Tax (Amendment) Act 2023, may be made to take effect from (and including) 1 January 2024. [Act 25 of 2025 wef 08/12/2025] (3AB) Regulations made to amend any regulations made for the purposes of subsection (1) to replace the terms “break cost” and “prepayment fee” with the term “early redemption fee”, that are made in connection with section 36( b ), ( c ) and ( d ) of the Income Tax (Amendment) Act 2023, may be made to take effect from (and including) 15 February 2023. [Act 25 of 2025 wef 08/12/2025] (3A) A primary dealer mentioned in subsection (3) may elect in accordance with subsection (3B) not to be subject to the regulations made under subsection (1); and if the primary dealer so elects, the regulations cease to apply to the income of that primary dealer for the year of assessment for which the election is made and for subsequent years of assessment. [37/2014] (3B) The election mentioned in subsection (3A) must be made by the primary dealer by written notice to the Comptroller — ( a ) at the time of lodgment of the return of income for a year of assessment; or ( b ) at such further time as the Comptroller may allow. [37/2014] (3C) The election made by a primary dealer under subsection (3A) is irrevocable. [37/2014] (4) In this section — [ Deleted by Act 30 of 2023 wef 15/02/2023 ] “debt securities” means bonds, notes, commercial papers, treasury bills, certificates of deposits, and AT1 instruments within the meaning of section 10I(2); “early redemption fee”, “financial institution”, “qualifying debt securities” and “redemption premium” have the meanings given by section 13(16); [Act 30 of 2023 wef 15/02/2023] “financial sector incentive (capital market) company” means a company approved as such under section 43J; “financial sector incentive (standard tier) company” means a company approved as such under section 43J; “Islamic debt securities” means debt securities and trust certificates — ( a ) which are endorsed by any Shari’ah council or body, or by any committee formed for the purpose of providing guidance on compliance with Shari’ah law; and ( b ) the amounts payable from such securities and trust certificates are periodic and supported by a regular stream of receipts from underlying assets; “primary dealer” means any financial institution appointed by the Monetary Authority of Singapore as a primary dealer under section 29A of the Government Securities Act 1992; “Singapore Government securities” means debt securities issued under the Government Securities Act 1992, the repealed Local Treasury Bills Act 1923, the Significant Infrastructure Government Loan Act 2021 or by the Government under any other written law, and is deemed to include any issue of bills and notes by the Monetary Authority of Singapore that are approved by the Minister for the purposes of this Act; [Act 35 of 2021 wef 31/01/2022] “trust certificates” means certificates evidencing beneficial ownership in underlying assets. [37/2014; 45/2018; 32/2019; 15/2021] (5) Subsections (1)( a ), ( aa ), ( ab ), ( ac ) and ( ad ) and (2) and regulations made under any of those provisions apply to a body of persons for the year of assessment 2010 and subsequent years of assessment. [43N


document_id: ita-1947
provision_ref: s43I
chapter: PART 11 - RATES OF TAX
section: 43I
title: Concessionary rate of tax for global trading company and qualifying company
content:
43I. —(1) Despite section 43, the Minister may by regulations provide that tax at the rate of 5%, 10% or 15% is to be levied and paid for each year of assessment upon — ( a ) such income as the Minister may specify of an approved global trading company — (i) that is derived by it from such prescribed qualifying transactions in such prescribed commodities as the Minister or an authorised body may specify to the company; [Act 41 of 2020 wef 12/04/2024] (ii) that is derived by it in the basis period for the year of assessment 2012 or a subsequent year of assessment, from prescribed qualifying transactions in any derivative instrument; or (iii) that is derived by it on or after 19 February 2020 from the carrying on of such prescribed qualifying structured commodity financing activities, prescribed treasury activities or prescribed advisory services in relation to mergers and acquisitions, as the Minister or an authorised body may specify to the company; and [Act 41 of 2020 wef 12/04/2024] ( b ) such income as the Minister may specify of an approved qualifying company that is derived on or after 21 May 2010 from the carrying on of such prescribed qualifying structured commodity financing activities, prescribed treasury activities or prescribed advisory services in relation to mergers and acquisitions, as the Minister or an authorised body may specify to the company, and those regulations may provide for the deduction of losses otherwise than in accordance with section 37(3). [34/2016; 41/2020] [Act 35 of 2024 wef 01/01/2024] [Act 41 of 2020 wef 12/04/2024] (1AA) Subject to the regulations under subsection (1), the income of an approved global trading company or approved qualifying company mentioned in that subsection — ( a ) is chargeable with tax at the rate of 5% if the company has been approved for that rate; [Act 35 of 2024 wef 01/01/2024] ( b ) is chargeable with tax at the rate of 10% if the company has been approved for that rate; [Act 35 of 2024 wef 01/01/2024] ( c ) is chargeable with tax at the rate of 15% if the company (being a global trading company approved on or after 17 February 2024) has been approved for that rate; or [Act 35 of 2024 wef 01/01/2024] ( d ) in the case of an approved global trading company to which subsection (1AC) applies, is chargeable with tax at the substituted rate mentioned in that subsection but only for income derived from (and including) the date specified by the Minister or an authorised body to the company for the application of that rate, which may be a date earlier than the notice mentioned in that subsection but not earlier than 1 January 2024. [32/2019] [Act 35 of 2024 wef 01/01/2024] (1AB) For the purposes of this section, the Minister or an authorised body may, subject to such conditions as the Minister or authorised body may impose, approve — ( a ) a global trading company as an approved global trading company; or ( b ) a qualifying company as an approved qualifying company. [32/2019] [Act 41 of 2020 wef 12/04/2024] (1AC) The Minister or an authorised body may, on or after 17 February 2024, on the Minister’s or authorised body’s own initiative or on the application of the approved global trading company, by notice to the company substitute the rate of tax applicable to the company under subsection (1AA)( a ), ( b ) or ( c ) with 5%, 10% or 15%, as the case may be. [Act 35 of 2024 wef 01/01/2024] (1A) No approval may be granted under this section to a global trading company after 31 December 2026. [41/2020] (1B) No approval may be granted under this section to a qualifying company after 31 March 2021, and any approval granted to a qualifying company must be for a period that commences on or before that date. [41/2020] (2) [ Deleted by Act 32 of 2019 ] (3) In this section — “global trading company” means a company that carries on the business of international trading of commodities or commodities derivatives, or of brokering international trades in commodities, or both; “qualifying company” means — ( a ) an approved company that carries on the business of international trading of commodities or commodities derivatives; or ( b ) a wholly‑owned subsidiary of another company, where the other company carries on the business of international trading of commodities or commodities derivatives, that carries on any qualifying structured commodity financing activities, treasury activities, or advisory services in relation to mergers and acquisitions, prescribed under subsection (1). (4) A reference in subsections (1AA)( d ) and (1AC) to an authorised body is, in a case where the notice to substitute the rate of tax applicable to an approved global trading company is given to the company during the period from 17 February 2024 to 11 April 2024 (both dates inclusive), a reference to a person appointed by the Minister. [Act 25 of 2025 wef 01/01/2024] [43P [34/2016; 39/2017; 32/2019]


document_id: ita-1947
provision_ref: s43J
chapter: PART 11 - RATES OF TAX
section: 43J
title: Concessionary rate of tax for financial sector incentive company
content:
43J. —(1) Despite section 43, the Minister may by regulations — ( a ) provide that tax at the rate of 5%, 10%, 12% or 13.5% is to be levied and paid for each year of assessment upon any income specified by the Minister that is derived on or after 1 January 2004 by a financial sector incentive company from one or more prescribed qualifying activities; [Act 25 of 2025 wef 19/02/2025] ( b ) provide that tax at the rate of 15% is to be levied and paid for each year of assessment upon any income specified by the Minister that is derived on or after 1 January 2025 by a financial sector incentive company that is approved on or after 19 February 2025 from one or more prescribed qualifying activities; and [Act 25 of 2025 wef 01/01/2025] [Act 25 of 2025 wef 19/02/2025] ( c ) provide for exemption from tax for each year of assessment of any income specified by the Minister that is derived on or after 19 February 2025 by a financial sector incentive company from one or more prescribed qualifying activities, if the requirements specified by the Minister or an authorised body for the exemption to apply to that income for that year of assessment are satisfied. [Act 25 of 2025 wef 19/02/2025] (1A) Regulations made under subsection (1) may provide for the deduction of losses otherwise than in accordance with section 37(3). [Act 25 of 2025 wef 01/01/2025] (1B) Despite section 43, the Minister may by regulations provide that tax at the rate of 5% is to be levied and paid for each year of assessment upon any income specified by the Minister that is derived on or after 19 February 2025 by a financial sector incentive company approved under subsection (1C), from one or more prescribed qualifying activities, if the requirements specified by the Minister or an authorised body for the tax rate to apply to that income for that year of assessment are satisfied. [Act 25 of 2025 wef 19/02/2025] (1C) The Minister or an authorised body may approve a company ( X ) as a financial sector incentive company for the purposes of subsection (1B) only if the following conditions are satisfied: ( a ) X or its holding company becomes listed on a stock exchange in Singapore on or after 19 February 2025; ( b ) X or its holding company (as the case may be) is not an approved company under section 92K(6), or an approved nominee under section 92K(15)( a ), (16) or (22). [Act 25 of 2025 wef 19/02/2025] (1D) It is a condition of the approval for X that X or its holding company (as the case may be) remains listed on the stock exchange in Singapore throughout the period of X ’s approval. [Act 25 of 2025 wef 19/02/2025] (1E) In a case where it is a condition of the approval for X that its holding company remains listed on the stock exchange in Singapore throughout the period of X ’s approval, a delisting of the holding company from that stock exchange during that period is treated as a failure by X to comply with a condition of X ’s approval under section 105R(1)( b ). [Act 25 of 2025 wef 19/02/2025] (1F) Regulations made under subsection (1B) may provide for the deduction of losses otherwise than in accordance with section 37(3). [Act 25 of 2025 wef 19/02/2025] (2) The Minister or an authorised body may, subject to such conditions as the Minister or authorised body may impose, approve a company carrying on such qualifying activities as may be prescribed, as a financial sector incentive company for the purposes of this section, and the Minister or authorised body may approve different classes of financial sector incentive companies for the purposes of this section. [32/2019] [Act 41 of 2020 wef 06/12/2022] (2AA) Regulations made for the purposes of this section may provide the last date by which approval for a financial sector incentive company or a specified class of financial sector incentive companies may be given or extended. [Act 25 of 2025 wef 01/01/2025] (2A) Regulations under subsection (1) may make transitional provisions to apply the rate of tax of 12% to — ( a ) any company which holds membership of any class or description of a futures market, or of a clearing house for the futures market, maintained by the Singapore Exchange Limited or any of its subsidiaries; and ( b ) a member of the corporation known as the Singapore Commodity Exchange Ltd, which has given notice within a specified period to the Monetary Authority of Singapore for the purposes of the application of these transitional provisions, in respect of its income derived on or after 1 January 2011 but on or before 31 December 2013 from specified qualifying activities. (3) Regulations made for the purposes of subsection (1)( b ) may be made to take effect from (and including) 1 January 2025. [Act 25 of 2025 wef 01/01/2025] (4) Regulations made for the purposes of subsections (1)( c ) and (1B) may be made to take effect from (and including) 19 February 2025. [Act 25 of 2025 wef 19/02/2025] (5) The Minister or authorised body may at the time of approving a company as a financial sector incentive company for the purposes of subsection (1)( c ), provide in the letter of approval that if a specified requirement is not satisfied by the company on any day in a basis period or throughout a basis period, the tax exemption does not apply to the company’s income for the year of assessment to which the basis period relates or for that year of assessment and subsequent years of assessment. [Act 25 of 2025 wef 19/02/2025] (6) The Minister or authorised body may at the time of approving a company as a financial sector incentive company for the purposes of subsection (1B), provide in the letter of approval that if a specified requirement is not satisfied by the company or its holding company (as the case may be) on any day in a basis period or throughout a basis period, the tax rate of 5% does not apply to the company’s income for the year of assessment to which the basis period relates or for that year of assessment and subsequent years of assessment. [Act 25 of 2025 wef 19/02/2025] (7) In this section, a reference to the holding company of a company ( A ) is to a company that owns (directly or indirectly) the percentage of ownership in A prescribed in regulations made under subsection (1B). [Act 25 of 2025 wef 19/02/2025] [43Q [34/2016]


document_id: ita-1947
provision_ref: s43K
chapter: PART 11 - RATES OF TAX
section: 43K
title: Concessionary rate of tax for provision of processing services to financial institutions
content:
43K. —(1) Despite section 43, the Minister may by regulations provide that tax at the rate of 5% is to be levied and paid for each year of assessment upon such income as the Minister may specify of an approved company derived by it on or after 27 February 2004 from the provision of prescribed processing services in Singapore to any financial institution or another approved company; and those regulations may provide for the deduction of losses of an approved company otherwise than in accordance with section 37(3). (2) The Minister or a person appointed by the Minister may, subject to such conditions as the Minister or appointed person may impose, approve a company as an approved company for the purposes of this section. [32/2019] (3) No approval under this section may be granted to any company on or after 27 February 2009. (4) In this section, “financial institution” means — ( a ) any institution in Singapore that is licensed or approved by the Monetary Authority of Singapore, or exempted from such licensing or approval, under any written law administered by the Monetary Authority of Singapore; or ( b ) any institution outside Singapore that is licensed or approved, or exempted from such licensing or approval, by its financial supervisory authority for the carrying on of financial activities. [43R


document_id: ita-1947
provision_ref: s43L
chapter: PART 11 - RATES OF TAX
section: 43L
title: Concessionary rate of tax for shipping investment manager
content:
43L. —(1) Despite section 43, the Minister may by regulations provide that tax at the rate of 10% is to be levied and paid for each year of assessment upon such income as the Minister may specify of an approved shipping investment manager derived by it on or after 1 March 2006 from — ( a ) managing an approved shipping investment enterprise; or ( b ) such other services or activities carried out for an approved shipping investment enterprise as may be prescribed. (2) Regulations made under subsection (1) may provide for the deduction of losses otherwise than in accordance with section 37(3). (3) The Minister or an authorised body may, subject to such conditions as the Minister or authorised body may impose, approve a shipping investment manager as an approved shipping investment manager for the purposes of this section. [32/2019] [Act 41 of 2020 wef 12/04/2024] (4) Approval of a shipping investment manager under this section may be granted between 1 March 2006 and 28 February 2011 (both dates inclusive). [37/2014] (4A) Approval of a shipping investment manager under this section may be granted between 1 March 2011 and 31 December 2031 (both dates inclusive) for such period not exceeding 5 years as the Minister or authorised body may specify, except that the Minister or authorised body may extend the period so specified for such further periods as the Minister or authorised body thinks fit. [37/2014; 2/2016; 41/2020] [Act 27 of 2021 wef 12/04/2024] [Act 25 of 2025 wef 19/02/2025] (5) In this section — “approved” means approved by the Minister or an authorised body; [Act 41 of 2020 wef 12/04/2024] “shipping investment enterprise” has the meaning given by section 13P; “shipping investment manager” means any company incorporated in Singapore. [43W


document_id: ita-1947
provision_ref: s43M
chapter: PART 11 - RATES OF TAX
section: 43M
title: Concessionary rate of tax for trust income to which beneficiary is entitled
content:
43M. —(1) Where any beneficiary of a trust who is resident in Singapore is entitled to any share of the statutory income of the trust, that share is, if it would have been subject to a concessionary rate of tax under any provision of this Part had it been derived or received directly by the beneficiary rather than the trustee of the trust, subject to the same concessionary rate of tax. (2) This section does not apply to — ( a ) any income of a real estate investment trust within the meaning of section 43(10); ( b ) any income of a designated unit trust within the meaning of section 35(14); ( c ) [ Deleted by Act 37 of 2014 ] ( d ) any income of a trust fund prescribed under section 13C; ( e ) any income of a foreign trust specified under section 13F; ( f ) any income of a locally‑administered trust prescribed under section 13N; ( g ) any income of a trust the trustee of which is a prescribed person under section 13D; or ( h ) any income of an approved trust fund referred to in the definition of “approved person” under section 13U(5), or of a trust fund that is a feeder fund or master fund approved under section 13U. [43X [37/2014]


document_id: ita-1947
provision_ref: s43MA
chapter: PART 11 - RATES OF TAX
section: 43MA
title: Concessionary rate of tax for estate income received by beneficiary, etc.
content:
43MA. Where any person resident in Singapore is a beneficiary of an estate administered in Singapore, and any share of the statutory income of the estate is received by, distributed to or applied to the benefit of that person, that share is, if it would have been subject to a concessionary rate of tax under any provision of this Part had it been derived or received directly by that person instead of the executor of the estate, subject to the same concessionary rate of tax. [Act 30 of 2023 wef 30/10/2023]


document_id: ita-1947
provision_ref: s43N
chapter: PART 11 - RATES OF TAX
section: 43N
title: Concessionary rate of tax for leasing of aircraft and aircraft engines
content:
43N. —(1) Despite section 43, tax at the following rate is to be levied, and paid, for each year of assessment upon the income of an approved aircraft leasing company accruing in or derived from Singapore in respect of the leasing of any aircraft or aircraft engine or such other activity as the Minister may by regulations prescribe: ( a ) where the company is approved before 1 April 2017, 5% or 10%, as specified by the Minister or such person as the Minister may appoint; ( b ) where the company is approved between 1 April 2017 and 16 February 2024 (both dates inclusive), 8%; [Act 35 of 2024 wef 01/01/2024] ( c ) where the company is approved on or after 17 February 2024, 8% or 10%, as specified by the Minister or an authorised body to the company; [Act 35 of 2024 wef 01/01/2024] ( d ) where subsection (1D) applies, the substituted concessionary rate mentioned in that subsection but only for income derived from (and including) the date specified by the Minister or authorised body to the company for the application of that rate, which may be a date earlier than the notice mentioned in that subsection but not earlier than 1 January 2024. [39/2017] [Act 35 of 2024 wef 01/01/2024] (1A) Despite subsection (1), where — ( a ) a company was approved as an approved aircraft leasing company on or before 31 March 2017; ( b ) the company is approved again as an approved aircraft leasing company at any time on or after 1 April 2017; ( c ) the period of approval in paragraph ( b ) (called in this subsection the current approval period) starts immediately upon the expiry of the period of the approval in paragraph ( a ) (called in this subsection the previous approval period); and ( d ) the company elects to apply the concessionary rate of tax specified to it under subsection (1)( a ) for the previous approval period, to the company’s income that accrues in or is derived from Singapore between the date of commencement of the current approval period and 31 December 2027 (both dates inclusive), in respect of an aircraft or aircraft engine to which this subsection applies, then that concessionary rate of tax applies to such income if the company remains an approved aircraft leasing company at the time the income accrues to or is derived by the company. [45/2018] (1AA) To avoid doubt, the approval in subsection (1A)( b ) includes an approval made under subsection (2) as in force immediately before the date of commencement of section 61(26) of the Income Tax (Amendment) Act 2020. [Act 41 of 2020 wef 12/04/2024] (1B) Subsection (1A) — ( a ) applies to an aircraft or aircraft engine that the company either owned (whether legally or beneficially) or of which it was a lessee under a finance lease treated as a sale under section 10C, as at the last day of the previous approval period; and ( b ) does not apply to any aircraft or aircraft engine that — (i) has been disposed of by the company after that day and then re‑acquired by or leased back to the company; or (ii) has not been delivered to the company as of that day. [45/2018] (1C) The election under subsection (1A) must be made by written notice to the Comptroller at the time of lodgment of the return of income for the year of assessment relating to the basis period in which the approval in subsection (1A)( b ) is given or within such extended time as the Comptroller may allow. [45/2018] (1D) The Minister or an authorised body may, on or after 17 February 2024, on the Minister’s or authorised body’s own initiative or on the application of the approved aircraft leasing company, by notice to the company substitute the concessionary rate of tax applicable to the company under subsection (1)( b ) or ( c ) or (1A) with 8% or 10% (as the case may be), for the remaining part of the period in subsection (3). [Act 35 of 2024 wef 01/01/2024] (2) The Minister or an authorised body may, subject to such conditions as the Minister or authorised body may impose, approve an aircraft leasing company as an approved aircraft leasing company for the purposes of this section. [32/2019] [Act 41 of 2020 wef 12/04/2024] (3) Tax at the concessionary rate of the income of an approved aircraft leasing company under subsection (1) is for a period not exceeding 5 years, except that the Minister or an authorised body may extend that period for a further period or periods, each of which must not exceed 5 years. [Act 41 of 2020 wef 12/04/2024] (4) Approval may be granted under this section between 1 March 2007 and 31 December 2027 (both dates inclusive). [37/2014; 39/2017] [Act 33 of 2022 wef 04/11/2022] (5) In determining the income of an approved aircraft leasing company from the leasing of any aircraft or aircraft engine — ( a ) the allowances under section 19, 19A, 20, 21, 22 or 23 must be taken into account even if no claim for such allowances has been made; ( b ) the allowances under section 19, 19A, 20, 21, 22 or 23 in respect of finance leasing in any year of assessment must be deducted against the income from such leasing for that year of assessment, and any balance of the allowances is not, subject to paragraph ( c ), available as a deduction against any other income or available for transfer under section 37B; ( c ) where the approved aircraft leasing company ceases to derive income from finance leasing in the basis period for any year of assessment, any balance of the allowances in respect of finance leasing after the deduction against the income from such leasing is available as a deduction against any other income for that year of assessment and for any subsequent year of assessment in accordance with section 23; and ( d ) the Comptroller must determine the manner and extent to which — (i) allowances under section 19, 19A, 20, 21, 22 or 23 and any expenses and donations allowable under this Act are to be deducted; and (ii) any loss may be deducted under section 37. (6) Subsection (5) applies, with the necessary modifications, in determining the income of an approved aircraft leasing company from any activity prescribed by regulations made under subsection (1) as if such income were income from operating leasing. (7) In this section — “aircraft leasing company” means a company incorporated and resident in Singapore or a registered business trust, carrying on a business of leasing aircraft or aircraft engines; “finance leasing”, in relation to any aircraft or aircraft engine, means a lease of the aircraft or aircraft engine (including any arrangement or agreement in connection with the lease) which has the effect of transferring substantially the obsolescence, risks or rewards incidental to ownership of such aircraft or aircraft engine to the lessee; “leasing of any aircraft or aircraft engine” means the leasing of any aircraft or aircraft engine, other than one which has been treated as though it had been sold pursuant to regulations made under section 10C(1); “operating leasing”, in relation to any aircraft or aircraft engine, means the leasing of the aircraft or aircraft engine, other than finance leasing. (8) The reference to an authorised body in subsection (1)( c ) is, in a case where the concessionary rate of tax in that provision applicable to an approved aircraft leasing company is specified to the company during the period from 17 February 2024 to 11 April 2024 (both dates inclusive), a reference to a person appointed by the Minister. [Act 25 of 2025 wef 01/01/2024] (9) A reference in subsections (1)( d ) and (1D) to an authorised body is, in a case where the notice to substitute the concessionary rate of tax applicable to an approved aircraft leasing company is given to the company during the period from 17 February 2024 to 11 April 2024 (both dates inclusive), a reference to a person appointed by the Minister. [Act 25 of 2025 wef 01/01/2024] [43Y [32/2019]


document_id: ita-1947
provision_ref: s43O
chapter: PART 11 - RATES OF TAX
section: 43O
title: Concessionary rate of tax for aircraft investment manager
content:
43O. —(1) Despite section 43, the Minister may by regulations provide that tax at the rate of 10% is to be levied and paid for each year of assessment upon such income as the Minister may specify of an approved aircraft investment manager derived by it on or after 1 March 2007 from — ( a ) managing an approved aircraft leasing company; or ( b ) such other services or activities carried out for an approved aircraft leasing company as may be prescribed by regulations. (2) Regulations made under subsection (1) may provide for the deduction of losses otherwise than in accordance with section 37(3). (3) The Minister or an authorised body may, subject to such conditions as the Minister or authorised body may impose, approve an aircraft investment manager as an approved aircraft investment manager for the purposes of this section. [32/2019] [Act 41 of 2020 wef 12/04/2024] (4) Approval may be granted under this section between 1 March 2007 and 31 December 2027 (both dates inclusive). [37/2014; 39/2017] [Act 33 of 2022 wef 04/11/2022] (5) In this section — “aircraft investment manager” means any company incorporated in Singapore; “aircraft leasing company” has the meaning given by section 43N; “approved” means approved by the Minister or an authorised body. [Act 41 of 2020 wef 12/04/2024] [43Z


document_id: ita-1947
provision_ref: s43P
chapter: PART 11 - RATES OF TAX
section: 43P
title: Concessionary rate of tax for container investment enterprise
content:
43P. —(1) Despite section 43 but subject to subsection (5), tax at the rate of 5% or 10% as the Minister or an authorised body may specify, is to be levied and paid for each year of assessment upon the income of an approved container investment enterprise accruing in or derived from Singapore from — ( a ) the leasing of any container owned by the enterprise acquired before or during the period of approval of the enterprise mentioned in subsection (4) and used for the international transportation of goods; ( b ) foreign exchange and risk management activities which are carried out in connection with and incidental to the leasing mentioned in paragraph ( a ); ( c ) for the year of assessment 2013 and subsequent years of assessment, the leasing of any intermodal equipment owned by the enterprise acquired before or during the period of approval of the enterprise mentioned in subsection (4), which is incidental to the leasing mentioned in paragraph ( a ); ( d ) for the year of assessment 2013 and subsequent years of assessment, foreign exchange and risk management activities which are carried out in connection with and incidental to the leasing mentioned in paragraph ( c ); ( e ) the leasing of any container used for international transportation of goods, if the container was — (i) acquired by an approved related party before or during the period of the approval of the related party under subsection (4); and (ii) leased by the approved related party to the approved container investment enterprise; ( f ) the leasing of any intermodal equipment that is incidental to the lease mentioned in paragraph ( e ), if the intermodal equipment was — (i) acquired by an approved related party before or during the period of the approval of the related party under subsection (4); and (ii) leased by the approved related party to the approved container investment enterprise; and ( g ) foreign exchange and risk management activities that are carried out in connection with and incidental to the leases mentioned in paragraphs ( e ) and ( f ). [32/2019] [Act 41 of 2020 wef 12/04/2024] (1A) Subsection (1)( e ), ( f ) and ( g ) only applies to income derived on or after 12 December 2018. [32/2019] (2) Subsection (1)( a ), ( b ), ( c ) or ( d ) continues to apply to a container investment enterprise the approval of which has expired or been withdrawn, but which continues to derive income of the type mentioned in that provision in relation to a container or an intermodal equipment acquired before or during the period of approval of the enterprise, provided that the enterprise has by the date of the expiry or before the withdrawal of its approval fulfilled all the conditions mentioned in subsection (4), and any reference in this section to an approved container investment enterprise is to be construed accordingly. [32/2019] (2A) Subsection (1)( e ), ( f ) or ( g ) continues to apply to a container investment enterprise the approval of which has expired or been withdrawn, but that continues to derive income of the type mentioned in that provision if both the container investment enterprise and the approved related party have by the date of the expiry or before the withdrawal, fulfilled all the conditions of their respective approvals under subsection (4). [32/2019] (2B) For the purpose of subsection (2A), the container investment enterprise is treated under this section as an approved container investment enterprise. [32/2019] (2C) Subsection (1)( a ), ( c ), ( e ) and ( f ) does not apply to — ( a ) income derived between 12 December 2018 and 18 February 2025 (both dates inclusive) from the leasing of a container or intermodal equipment that is acquired by the approved container investment enterprise or the approved related party by way of a finance lease entered into with an entity that is not an approved related party; or ( b ) income derived on or after 19 February 2025 from the leasing of a container or intermodal equipment that is acquired by the approved container investment enterprise or the approved related party by way of a finance lease not treated as a sale under section 10C, entered into with an entity that is not an approved related party. [Act 25 of 2025 wef 19/02/2025] (3) The Minister or an authorised body may, at any time between 1 April 2008 and 31 December 2031 (both dates inclusive), approve a container investment enterprise or a related party of an approved container investment enterprise for the purposes of subsection (1). [37/2014; 2/2016; 32/2019; 41/2020] [Act 41 of 2020 wef 12/04/2024] [Act 25 of 2025 wef 19/02/2025] (4) The approval under subsection (3) is subject to such conditions as the Minister may specify, and must — ( a ) where the approval is granted during the period between 1 April 2008 and 28 February 2011 (both dates inclusive), be for such period not exceeding 10 years, as the Minister may specify; and ( b ) where the approval is granted during the period between 1 March 2011 and 31 December 2031 (both dates inclusive), be for such period not exceeding 5 years, as the Minister may specify, except that the Minister may extend the period so specified for such further periods as the Minister thinks fit. [37/2014; 2/2016; 41/2020] [Act 25 of 2025 wef 19/02/2025] (4A) A reference to the Minister in subsection (4), in the case of an approval granted on or after the date of commencement of section 38(1)( a ) of the Income Tax (Amendment) Act 2021, includes the authorised body. [Act 27 of 2021 wef 12/04/2024] (5) The Minister or an authorised body may, in respect of any container, class of containers, intermodal equipment or class of intermodal equipment, specify a period not exceeding a period of 15 years, during which the income from the leasing of such container, class of containers, intermodal equipment or class of intermodal equipment is subject to the applicable concessionary tax rate under subsection (1). [Act 41 of 2020 wef 12/04/2024] (6) In determining the income of an approved container investment enterprise from the leasing of any container or intermodal equipment — ( a ) the allowances under section 19, 19A, 20, 21, 22 or 23 (other than allowances made to the lessee under regulations made under section 10C) must be taken into account even if no claim for such allowances has been made; ( b ) the allowances under section 19, 19A, 20, 21, 22 or 23 (other than allowances made to the lessee under regulations made under section 10C) in respect of finance leasing in any year of assessment must be deducted against the income from such leasing for that year of assessment, and any balance of the allowances is not, subject to paragraph ( c ), available as a deduction against any other income or available for transfer under section 37B; ( c ) where the approved container investment enterprise ceases to derive income from finance leasing in the basis period for any year of assessment, any balance of the allowances in respect of finance leasing after the deduction against the income from such leasing is available as a deduction against any other income for that year of assessment and for any subsequent year of assessment in accordance with section 23; and ( d ) the Comptroller must determine the manner and extent to which — (i) allowances under section 19, 19A, 20, 21, 22 or 23 and any expenses and donations allowable under this Act are to be deducted; and (ii) any loss may be deducted under section 37. [2/2016] (7) In this section — “approved” means approved by the Minister or an authorised body; [Act 41 of 2020 wef 12/04/2024] “container” means a sea‑container used for the international transportation of goods and that adheres to the standards defined by the Institute of International Container Lessors or the International Organization for Standardization for such sea‑container, or (for the year of assessment 2013 and subsequent years of assessment) by any of those organisations or any other equivalent organisation for such sea‑container; “container investment enterprise” means — ( a ) a company incorporated and resident in Singapore; or ( b ) a registered business trust; “finance leasing”, in relation to any container or intermodal equipment, means a lease of the container or intermodal equipment (including any arrangement or agreement in connection with the lease) which has the effect of transferring substantially the obsolescence, risks or rewards incidental to ownership of such container or intermodal equipment to the lessee; “intermodal equipment” means any trailer, flatcar, car rack or other equipment, which facilitates the transportation of containers from one mode of transport to another; “registered business trust” has the meaning given by the Business Trusts Act 2004; “related party”, in relation to an approved container investment enterprise, means — ( a ) any entity that is related to the approved container investment enterprise in such manner as may be prescribed by rules made under section 7; or ( b ) any other entity that is approved by the Minister or authorised body in any particular case to be a related party of the approved container investment enterprise. [32/2019; 27/2021] [Act 27 of 2021 wef 12/04/2024] (8) Rules made for the purpose of the definition of “related party” in subsection (7) may be made to take effect from (and including) 12 December 2018. [43ZA [32/2019]


document_id: ita-1947
provision_ref: s43Q
chapter: PART 11 - RATES OF TAX
section: 43Q
title: Concessionary rate of tax for container investment manager
content:
43Q. —(1) Despite section 43, the Minister may by regulations provide that tax at the rate of 10% is to be levied and paid for each year of assessment upon such income as the Minister may specify of an approved container investment manager derived by it on or after 1 April 2008 from — ( a ) managing an approved container investment enterprise; or ( b ) such other services or activities carried out for an approved container investment enterprise as may be prescribed. (2) Regulations made under subsection (1) may provide for the deduction of losses otherwise than in accordance with section 37(3). (3) The Minister or an authorised body may, subject to such conditions as the Minister or authorised body may impose, approve a container investment manager as an approved container investment manager for the purposes of this section. [32/2019] [Act 41 of 2020 wef 12/04/2024] (4) Approval of a container investment manager under this section may be granted between 1 April 2008 and 28 February 2011 (both dates inclusive). [37/2014] (4A) Approval of a container investment manager under this section may be granted between 1 March 2011 and 31 December 2031 (both dates inclusive) for such period not exceeding 5 years as the Minister or authorised body may specify, except that the Minister or authorised body may extend the period so specified for such further periods as the Minister or authorised body thinks fit. [37/2014; 2/2016; 41/2020] [Act 27 of 2021 wef 12/04/2024] [Act 25 of 2025 wef 19/02/2025] (5) In this section — “approved” means approved by the Minister or an authorised body; [Act 41 of 2020 wef 12/04/2024] “container investment enterprise” has the meaning given by section 43P; “container investment manager” means any company incorporated in Singapore. [43ZB


document_id: ita-1947
provision_ref: s43R
chapter: PART 11 - RATES OF TAX
section: 43R
title: Concessionary rate of tax for approved insurance brokers
content:
43R. —(1) Despite section 43, the Minister may by regulations provide that tax at the rate specified in the first column of the following table, is to be levied and paid for each year of assessment upon such income as the Minister may specify that is derived on or after a prescribed date by an approved insurance broker set out opposite that rate in the second column of the table, from the provision of such direct insurance broking, reinsurance broking or advisory services relating to the insurance sector as may be prescribed: Tax rate Approved insurance broker 10% An approved insurance broker whose approval is granted between 1 April 2008 and 18 February 2025 (both dates inclusive) 10% or 15% An approved insurance broker whose approval is granted between 19 February 2025 and 31 December 2028 (both dates inclusive) [Act 25 of 2025 wef 01/01/2025] (2) Regulations made under subsection (1) may provide for the deduction of losses otherwise than in accordance with section 37(3). (2A) Regulations made under subsection (1) to provide for tax at the rate of 15% to be levied and paid for each year of assessment upon income mentioned in that provision may be made to take effect from (and including) 1 January 2025. [Act 25 of 2025 wef 01/01/2025] (3) The Minister or an authorised body may, subject to such conditions as the Minister or authorised body may impose, approve a company that is a direct insurance broker, general reinsurance broker or life reinsurance broker, as an approved insurance broker for the purposes of this section. [32/2019] [Act 41 of 2020 wef 06/12/2022] (4) Approval may be granted under this section between 1 April 2008 and 31 December 2028 (both dates inclusive). [37/2014; 45/2018] [Act 30 of 2023 wef 30/10/2023] (5) In this section, “direct insurance broker”, “general reinsurance broker” and “life reinsurance broker” have the meanings given by section 2 of the Insurance Act 1966. [43ZC [32/2019]


document_id: ita-1947
provision_ref: s43S
chapter: PART 11 - RATES OF TAX
section: 43S
title:
Concessionary rate of tax for income derived from managing qualifying registered business trust or company

content:
43S. —(1) Despite section 43, the Minister may by regulations provide that tax at the rate of 10% is to be levied and paid for each year of assessment upon such income as the Minister may specify derived on or after 1 April 2008 — ( a ) by an approved trustee‑manager of a qualifying registered business trust from providing services in such capacity in respect of such infrastructure asset or project situated outside Singapore as may be prescribed by regulations (called in this section a prescribed offshore infrastructure asset or project); and ( b ) by an approved fund management company from — (i) managing a qualifying company in respect of any prescribed offshore infrastructure asset or project; or (ii) arranging, on behalf of a qualifying company, any loan of designated securities under a securities lending arrangement in writing to another qualifying company. (2) Regulations made under subsection (1) may provide for the deduction of losses otherwise than in accordance with section 37(3). (3) For the purposes of this section, the Minister or an authorised body may, subject to such conditions as the Minister or authorised body may impose — ( a ) approve a trustee‑manager of a qualifying registered business trust as an approved trustee‑manager; or ( b ) approve a fund management company as an approved fund management company. [32/2019] [Act 41 of 2020 wef 06/12/2022] (4) Approval may be granted under this section between 1 April 2008 and 31 December 2022 (both dates inclusive). [37/2014; 39/2017] (5) In this section — “designated securities” means — ( a ) stocks, shares, bonds or other securities, denominated in any foreign currency, issued by a company which is neither incorporated in Singapore nor resident in Singapore; or ( b ) bonds denominated in any foreign currency issued by any foreign government; “fund management company” means any company incorporated in Singapore; “qualifying company”, in relation to an approved fund management company, means any company incorporated in Singapore which — ( a ) is listed or to be listed on any exchange in Singapore within one year from the date the approved fund management company is so approved; and ( b ) owns any offshore infrastructure asset or any asset used in an offshore infrastructure project, or debt securities or shares of any company that owns any offshore infrastructure asset or any asset used in an offshore infrastructure project; “qualifying registered business trust”, in relation to an approved trustee‑manager, means any registered business trust which — ( a ) is listed or to be listed on any exchange in Singapore within one year from the date the approved trustee‑manager is so approved; and ( b ) owns any offshore infrastructure asset or any asset used in an offshore infrastructure project, or debt securities or shares of any company that owns any offshore infrastructure asset or any asset used in an offshore infrastructure project; “registered business trust” and “trustee‑manager” have the meanings given by the Business Trusts Act 2004. [43ZD [32/2019]


document_id: ita-1947
provision_ref: s43T
chapter: PART 11 - RATES OF TAX
section: 43T
title: Concessionary rate of tax for ship broking and forward freight agreement trading
content:
43T. —(1) Despite section 43, tax at the rate of 10% is to be levied and paid for each year of assessment upon such amount of — ( a ) fees or commissions derived in the period between 1 April 2010 and 31 May 2011 (both dates inclusive) by an approved company from ship broking; and ( b ) gains derived in the period between 1 April 2010 and 31 May 2011 (both dates inclusive) by an approved company from forward freight agreement trading, which in the aggregate are in excess of the base amount. (2) Approval may be granted under this section between 1 April 2010 and 31 May 2011 (both dates inclusive) to a company for a period of 5 years, subject to such conditions as the Minister may impose. [37/2014] (3) The base amount mentioned in subsection (1) is — ( a ) where the approved company had carried out the ship broking or forward freight agreement trading or both (called in this paragraph such activity) in Singapore at any time during the period of 3 years immediately preceding the date on which approval is granted under this section, the amount ascertained by dividing the net profit before tax as shown in the audited accounts of the approved company that is derived from carrying out such activity during that period by the actual number of months in that period in which such activity was carried out and multiplying by 12; ( b ) where the approved company had not carried out the ship broking or forward freight agreement trading in Singapore, at any time during the period of 3 years immediately preceding the date on which approval is granted under this section, zero; or ( c ) such amount as the Minister may specify in substitution for the amount mentioned in paragraph ( a ) or ( b ). (4) In determining the income of an approved company from the carrying out of ship broking or forward freight agreement trading or both in Singapore — ( a ) the allowances under section 19, 19A, 20, 21, 22 or 23 must be taken into account even if no claim for such allowances has been made; and ( b ) the Comptroller must determine the manner and extent to which — (i) allowances under section 19, 19A, 20, 21, 22 or 23 and any expenses and donations allowable under this Act are to be deducted; and (ii) any loss may be deducted under section 37. (5) In this section — “approved company” means a company which — ( a ) is incorporated and resident in Singapore; ( b ) carries on the business of ship broking or forward freight agreement trading or both in Singapore; and ( c ) is approved by the Minister, or such person as the Minister may appoint, for the purpose of this section; “forward freight agreement trading” means the undertaking of a position under a forward freight agreement trade where such trade is in connection with shipping freight rates; “ship broking” means — ( a ) the broking of sale and purchase of vessels (including the activity of valuing the vessels); ( b ) the matching of vessel owners (which intend to build new vessels) to shipyards based on the vessel owners’ requirements; ( c ) the matching of vessels to — (i) cargoes; or (ii) vessel owners and vessel charterers; ( d ) the valuation of vessels; or ( e ) the matching of forward freight agreement traders where the forward freight agreement trade is in connection with shipping freight rates, and includes the provision of research, consultancy or advisory services using information derived from the business of carrying on any of the activities referred to in paragraphs ( a ) to ( e ), where the total sum of the fees (called in this definition the said sum) derived by the approved company from the research, consultancy and advisory services in the basis period for the year of assessment concerned is not more than 20% of the sum of — ( f ) the total fees and commissions derived by the approved company from all of the activities referred to in paragraphs ( a ) to ( e ) in the basis period for that year of assessment; and ( g ) the said sum, unless the Minister otherwise allows. [43ZE


document_id: ita-1947
provision_ref: s43U
chapter: PART 11 - RATES OF TAX
section: 43U
title: Concessionary rate of tax for shipping‑related support services
content:
43U. —(1) Despite section 43, tax at the rate of 10% is to be levied and paid for each year of assessment upon the amount of income in subsection (1A) of an approved company derived on or after the service approval date and during the period of its approval under subsection (2) (but not any extended period of its approval under subsection (5A)), from providing in or from Singapore any shipping‑related support service approved for it under subsection (2A). [2/2016] (1A) In subsection (1), the amount of the income is that which exceeds the base amount calculated in accordance with subsection (4). [2/2016] (2) Approval may be granted under this section between 1 June 2011 and 31 December 2031 (both dates inclusive) to a company for a period of 5 years; and may be given subject to such conditions as the Minister or authorised body may impose. [37/2014; 2/2016; 41/2020] [Act 27 of 2021 wef 12/04/2024] [Act 25 of 2025 wef 19/02/2025] (2A) The Minister or authorised body must approve for the company one or more shipping‑related support services for the purposes of subsection (1) at the time of granting the approval, and may approve for the company additional shipping‑related support services during the period it is approved. [2/2016] [Act 41 of 2020 wef 12/04/2024] (3) A company that is deemed an approved company on 1 June 2011 by virtue of regulations made under subsection (7), is deemed to have been approved for such period not exceeding 10 years from that date as the Minister may specify in the regulations. (4) The base amount mentioned in subsection (1A) or (5E) is calculated in accordance with the following provisions: ( a ) where the approved company had provided one or more of the shipping‑related support services approved for it at any time during the period of 3 years immediately before the date of its approval, the base amount is ascertained by dividing the aggregate net profit before tax as shown in its audited accounts (or such other accounts as the Minister or authorised body may approve for the company) that is derived from providing all of those services during that period by the actual number of months (a period of less than a month being reckoned as one month) during that period in which those services were provided and multiplying by 12; [Act 41 of 2020 wef 12/04/2024] ( b ) where the company had not provided any of the shipping‑related support services approved for it at any time during the period of 3 years immediately before the date of its approval, the base amount is zero; or ( c ) such amount as the Minister may specify in substitution for the amount mentioned in paragraph ( a ) or ( b ). [2/2016; 41/2020] (5) The base amount determined in accordance with subsection (4) applies to the approved company for the entire duration of the period of its approval (but not any extended period of its approval under subsection (5A)), unless the Minister otherwise decides. [2/2016; 41/2020] (5A) The Minister or authorised body may extend the period of any approval under subsection (2) for further periods of 5 years at any one time, and the extension is subject to the company satisfying such conditions as the Minister or authorised body has imposed on it at the time of granting the extension. [2/2016] [Act 41 of 2020 wef 12/04/2024] (5B) The Minister or authorised body must approve for the company one or more shipping‑related support services for the purposes of subsection (5C) or (5CA) at the time of granting the extension, and may approve for the company additional shipping‑related support services during any extended period of its approval. [2/2016; 41/2020] [Act 41 of 2020 wef 12/04/2024] (5C) Despite section 43, where an approved company whose period of approval is extended under subsection (5A) did not make an election under subsection (5F) for the extended period, then tax at the rate of A% is levied and must be paid for each year of assessment upon the amount of its income in subsection (5D) that is derived on or after the service approval date and during the extended period, from providing in or from Singapore any shipping‑related support service approved for it under subsection (5B). [41/2020] (5CA) Despite section 43, where an approved company whose period of approval is extended under subsection (5A) made an election under subsection (5F) for the extended period, then tax at the rate of (0.5 + A)% is levied and must be paid for each year of assessment upon the amount of its income in subsection (5E) that is derived on or after the service approval date and during the extended period, from providing in or from Singapore any shipping‑related support service approved for it under subsection (5B). [41/2020] (5CB) In subsections (5C) and (5CA), “A” is the concessionary rate of tax applicable to the income of the approved company from providing in or from Singapore any shipping‑related support service approved for it under subsection (2A) or (5B) (as the case may be) immediately before the commencement of the extended period concerned of its approval under subsection (5A). [41/2020] (5D) In subsection (5C), the amount of the income is that which exceeds the base amount calculated in accordance with subsection (5I). [2/2016] (5E) In subsection (5CA), the amount of the income is that which exceeds the base amount immediately before the commencement of the extended period concerned of its approval under subsection (5A), which is calculated in accordance with subsection (4) or (5I), as the case may be. [41/2020] (5F) An approved company whose period of approval is extended under subsection (5A) may make an election for an amount of its income mentioned in subsection (5CA) that is derived on or after the service approval date and during the extended period, from providing in or from Singapore any shipping‑related support service approved for it under subsection (5B), to be taxed in accordance with subsection (5CA). [41/2020] (5G) An election under subsection (5F) must be made in such form and manner and within such reasonable time as the Minister or authorised body may allow, and must be accompanied by such particulars as the Minister or authorised body determines. [2/2016; 41/2020] [Act 41 of 2020 wef 12/04/2024] (5H) An election under subsection (5F) is irrevocable for the extended period of its approval in which the election is made. [41/2020] (5I) The base amount mentioned in subsection (5D) or (5E) is determined as follows: ( a ) where the approved company had provided one or more of the shipping‑related support services approved for it under subsection (5B) at any time during the period of 3 years immediately before the date the extension is granted under subsection (5A), the base amount is ascertained by the formula where A is the total net profit before tax as shown in the company’s audited accounts (or such other accounts as the Minister or authorised body may approve for the company) that is derived from providing all of those services during that period of 3 years; and B is the actual number of months (a period of less than a month being reckoned as one month) during that period in which those services were provided; [Act 41 of 2020 wef 12/04/2024] ( b ) where the company had not provided any of the shipping‑related support services approved for it under subsection (5B) at any time during the period mentioned in paragraph ( a ), the base amount is zero; ( c ) the Minister may in a particular case specify an amount in substitution for the amount mentioned in paragraph ( a ) or ( b ). [2/2016; 41/2020] (5J) The base amount determined in accordance with subsection (5I) applies to the approved company for the entire duration of the extended period concerned of its approval under subsection (5A), unless the Minister otherwise decides. [2/2016; 41/2020] Application of section to approved SPVs of approved companies (5K) A company may at the time of making its application or at any time during the period of its approval, apply to the Minister or authorised body for its SPV to be approved in respect of any shipping-related support service provided in or from Singapore by the SPV for the purposes of this section. [Act 25 of 2025 wef 19/02/2025] (5L) The Minister or authorised body may — ( a ) approve an SPV of an approved company between 19 February 2025 and 31 December 2031 (both dates inclusive), subject to such conditions as the Minister or authorised body may impose; ( b ) approve for the SPV one or more shipping-related support services, and may approve for the approved SPV any additional shipping-related support services during the period of its approval; and ( c ) specify the period for which the SPV is approved, which must expire on the date of expiry of the period of approval of the approved company or, if an extension is granted for the approved company under subsection (5A), the expiry of the extension. [Act 25 of 2025 wef 19/02/2025] (5M) Despite section 43, tax at the rate mentioned in subsection (5N) is to be levied and paid for each year of assessment upon the amount of income in subsection (5O) of an approved SPV derived on or after the service approval date and during the period of its approval under subsection (5L), from providing in or from Singapore any shipping-related support service approved for the SPV under subsection (5L). [Act 25 of 2025 wef 19/02/2025] (5N) In subsection (5M), the rate of tax is that which is applicable to the income of the approved company derived during the same period under subsection (1), (5C) or (5CA). [Act 25 of 2025 wef 19/02/2025] (5O) In subsection (5M), the amount of the income is that which exceeds the base amount calculated in accordance with subsection (4) or (5I) (whichever is applicable), subject to the following modifications: ( a ) a reference in subsection (4) or (5I) to the approved company is to the approved SPV; ( b ) a reference in subsection (4) or (5I) to shipping-related support services approved for the approved company is to the shipping-related support services approved for the approved SPV; ( c ) a reference in subsection (4) or (5I) to any audited accounts of the approved company or other accounts of the approved company approved by the Minister or authorised body is to the audited accounts of the approved SPV or other accounts of the approved SPV approved by the Minister or authorised body; ( d ) a reference in subsection (4) to the date of approval of the approved company is to the date of approval of the approved SPV; ( e ) a reference in subsection (5I) to the date that the extension is granted under subsection (5A) to an approved company is to the date that the extension is granted to the approved SPV under subsection (5Q). [Act 25 of 2025 wef 19/02/2025] (5P) Unless the Minister otherwise decides — ( a ) the base amount determined in accordance with subsection (4) (as applied by subsection (5O)) applies to the approved SPV for the entire period of its approval; or ( b ) the base amount determined in accordance with subsection (5I) (as applied by subsection (5O)) applies to the approved SPV for any extended period of its approval under subsection (5Q). [Act 25 of 2025 wef 19/02/2025] (5Q) Where the Minister or authorised body — ( a ) has approved an SPV of an approved company; and ( b ) has granted an extension of the period of approval of the approved company under subsection (5A), the Minister or authorised body may — ( c ) extend the period of approval of the approved SPV by the same period in paragraph ( b ); and ( d ) approve one or more shipping-related support services for the purposes of subsection (5M) at the time of granting the extension, and may approve any additional shipping-related support services for the approved SPV during the extended period of the SPV’s approval, but only if the SPV satisfies such conditions as the Minister or authorised body has imposed on it at the time of granting the extension or approval of additional shipping-related support services. [Act 25 o


document_id: ita-1947
provision_ref: s43V
chapter: PART 11 - RATES OF TAX
section: 43V
title: Concessionary rate of tax for income derived from managing approved venture company
content:
43V. —(1) Despite section 43, tax at the rate of 5% is to be levied and paid for each year of assessment upon the management fees and performance bonus derived by an approved fund management company on or after 1 April 2015 from managing authorised investments of an approved venture company under section 13G. [2/2016; 41/2020] (2) The Minister or an authorised body may approve a fund management company for the purposes of subsection (1) at any time between 1 April 2015 and 31 December 2025 (both dates inclusive). [2/2016; 41/2020] [Act 41 of 2020 wef 12/04/2024] (3) The Minister or authorised body may, when granting the approval, impose such conditions on the fund management company as the Minister or authorised body considers appropriate. [2/2016] [Act 41 of 2020 wef 12/04/2024] (4) The approval under subsection (2) is for a period specified by the Minister or authorised body which must not exceed 10 years, except that the Minister or authorised body may extend the period for further periods not exceeding 5 years at any one time. [2/2016] [Act 41 of 2020 wef 12/04/2024] (5) Despite subsection (4), an approval granted under subsection (2) on or after 1 April 2020, and any extension of such approval, must each be for a period that does not exceed 5 years. [41/2020] (6) In determining the amount of income subject to the concessionary rate of tax under subsection (1) — ( a ) the allowances under section 19, 19A, 20, 21, 22 or 23 must be taken into account even if no claim for such allowances has been made; and ( b ) the Comptroller must determine the manner and extent to which — (i) allowances under section 19, 19A, 20, 21, 22 or 23 and any expenses and donations allowable under this Act are to be deducted; and (ii) any loss may be deducted under section 37. [2/2016] (7) In this section — “authorised investments” has the meaning given by section 13G(18); “fund management company” means a company incorporated in Singapore that is a fund manager. [43ZG [2/2016; 34/2016; 41/2020]


