# legal_provisions

document_id: ita-1947
provision_ref: s8A
chapter: PART 2 - ADMINISTRATION
section: 8A
title: Use of electronic service
content:
8A. —(1) Any person who is — ( a ) filing or submitting any return, estimate, statement or document — may; or ( b ) giving a notice under section 45(1)( b ) or 45D(2) or providing any information under section 105L(1) — must (unless otherwise permitted by the Comptroller), do so through the electronic service. (2) Subsection (1) does not affect any other provision of this Act that requires, or enables the Comptroller to require, anything to be done by means of the electronic service. (3) The Minister may make regulations prescribing — ( a ) the circumstances in which the Comptroller may serve any notice, direction or other document through the electronic service on a person assigned an account with the electronic service; and ( b ) the manner in which a person who has been served through the electronic service with any notice, direction or other document is to be notified of the transmission of an electronic record of it to the person’s account with the electronic service. (4) Regulations made for the purpose of subsection (3) — ( a ) may provide for service of any notice, direction or other document through the electronic service in circumstances where — (i) the person consents to such service; or (ii) the Comptroller gives the person notice of the Comptroller’s intention of such service and the person does not refuse such service; ( b ) may provide for the giving of any notice of the Comptroller’s intention, or the person’s consent or refusal, mentioned in paragraph ( a ), including — (i) the matters that must be contained in the notice; and (ii) the time within which, and the form and manner in which, the consent or refusal must be received by the Comptroller; ( c ) may provide when the consent or refusal of the person takes effect and when the Comptroller must give effect to such consent or refusal; and ( d ) may provide for any other matter necessary or incidental to the purposes in paragraphs ( a ), ( b ) and ( c ) and subsection (3)( a ). [Act 33 of 2022 wef 26/04/2024]


document_id: ita-1947
provision_ref: s9
chapter: PART 2 - ADMINISTRATION
section: 9
title: Free postage
content:
9. All returns, additional information and resulting correspondence and payment of tax under the provisions of this Act may be sent post‑free to the Comptroller in envelopes marked “Income Tax”.


document_id: ita-1947
provision_ref: s10
chapter: PART 3 - IMPOSITION OF INCOME TAX
section: 10
title: Charge of income tax
content:
10. —(1) Income tax is, subject to the provisions of this Act, payable at the rate or rates specified hereinafter for each year of assessment upon the income of any person accruing in or derived from Singapore or received in Singapore from outside Singapore in respect of — ( a ) gains or profits from any trade, business, profession or vocation, for whatever period of time such trade, business, profession or vocation may have been carried on or exercised; ( b ) gains or profits from any employment; ( c ) [ Deleted by Act 29 of 1965 ] ( d ) dividends, interest or discounts; ( e ) any pension, charge or annuity; ( f ) rents, royalties, premiums and any other profits arising from property; and ( g ) any gains or profits of an income nature not falling within any of the preceding paragraphs. (2) In subsection (1)( b ), “gains or profits from any employment” means — ( a ) any wages, salary, leave pay, fee, commission, bonus, gratuity, perquisite or allowance (other than a subsistence, travelling, conveyance or entertainment allowance which is proved to the Comptroller’s satisfaction to have been expended for purposes other than those in respect of which no deduction is allowed under section 15) paid or granted in respect of the employment whether in money or otherwise; ( b ) the value of any food, clothing or lodging provided or paid for by the employer; ( c ) for the year of assessment 2014 and any preceding year of assessment, the annual value of any place of residence provided by the employer and for the purposes of this paragraph — (i) if the remuneration received by a director of a company is less than the annual value of the premises, the full annual value is deemed to be gains or profits of the employment; (ii) except as provided in sub‑paragraph (i), if the annual value of the premises exceeds 10% of the gains or profits from the employment mentioned in paragraphs ( a ) and ( b ) less the rent (if any) paid by the employee for the use of the premises, the excess is disregarded; (iii) where the premises are shared, “place of residence” means the part of the premises occupied by the person chargeable; ( ca ) for any year of assessment between the years of assessment 2015 and 2019 (both years inclusive), the annual value of any place of residence provided by the employer (or the part thereof occupied by the employee if the premises are shared with another) less the rent (if any) paid by the employee for the use of the premises; ( cb ) for the year of assessment 2020 and subsequent years of assessment, either — (i) the rent paid by the employer for any place of residence provided by the employer (or the part of such place of residence occupied by the employee if the premises are shared with another), including for any furniture and fittings in that place or part; or (ii) if no such rent is paid, the annual value of such place or part, less any rent paid by the employee for the place or part; ( d ) any sum standing to the account of any individual in any pension or provident fund or society which the individual is entitled to withdraw upon retirement or which is withdrawn therefrom. [45/2018] (2A) For the purposes of subsection (2)( ca ) and ( cb )(ii), in a case where no annual value or separate annual value is ascribed to any place of residence in the Valuation List prepared under section 10 of the Property Tax Act 1960, the annual value is to be ascertained in accordance with the definition of that term in section 2 of that Act. [37/2014; 45/2018] (2AA) Where the Comptroller is not satisfied that the rent mentioned in subsection (2)( cb )(i) is reasonable after having regard to the rent that a lessee might reasonably be expected to pay under a lease of the place or part (including the furniture and fittings) if it were unoccupied and offered for renting, the Comptroller may adopt either — ( a ) the annual value of the place of residence provided by the employer (or the part of such place of residence occupied by the employee if the premises are shared with another), less any rent paid by the employee for the place or part; or ( b ) in a case where no annual value or separate annual value is ascribed to such place of residence in the Valuation List prepared under section 10 of the Property Tax Act 1960, such other value as appears to the Comptroller to be reasonable in the circumstances. [45/2018] (2AB) In a case where — ( a ) subsection (2)( cb )(i) applies; and ( b ) the rent paid by the employer under that provision includes rent for any furniture and fittings in the place or part, then, despite subsection (2)( a ), no further account is to be taken of those furniture and fittings in determining the gains or profits of the employee from the employment. [45/2018] (2AC) However (and to avoid doubt), subsection (2AB) does not apply in a case where the Comptroller exercises his or her power under subsection (2AA). [45/2018] (2B) For the purposes of subsection (2), the Minister may, for the purposes of such year of assessment as he or she may specify, by regulations prescribe the value of any furniture and fittings in any place of residence. [37/2014] (3) Any sum realised under any insurance against loss of profits must be taken into account in the ascertainment of any profits or income. (4) Where, under section 17, 20 or 21, a balancing charge falls to be made, the amount thereof is deemed to be income chargeable with tax under this Act, except in the case of a balancing charge in respect of — ( a ) a Singapore ship which is owned by a shipping enterprise within the meaning of section 13A or by an approved shipping investment enterprise within the meaning of section 13P at the time the balancing charge falls to be made in respect of the Singapore ship, but only up to the amount ascertained in accordance with the formula where A is the amount of allowances under section 19 or 19A made to the enterprise in respect of the Singapore ship against any income exempt from tax under section 13A or 13P; B is the total amount of allowances under section 19 or 19A which have been made in respect of the ship during the period it is owned by the enterprise; and C is the amount of balancing charge; ( b ) a foreign ship or provisionally registered ship the income derived from the operation of which is exempt from tax under section 13A or 13E, or the income derived from the chartering or finance leasing of which is exempt from tax under section 13P (as the case may be) but only up to the amount ascertained in accordance with the formula where X is the amount of allowances under section 19 or 19A made to the enterprise in respect of the foreign ship or provisionally registered ship against any income exempt from tax under section 13A, 13E or 13P, as the case may be; Y is the total amount of allowances under section 19 or 19A which have been made in respect of the ship during the period it is owned by the enterprise; and Z is the amount of balancing charge. [Act 33 of 2022 wef 04/11/2022] (5) In subsection (4) — “foreign ship” has the meaning given by section 13E(6); “Singapore ship” and “provisionally registered ship” have the meanings given by section 13A(16). [2/2016] [Act 33 of 2022 wef 04/11/2022] (5A) In subsection (4), “finance leasing” has the meaning given by section 13P(20). [2/2016] (6) Any gains or profits, directly or indirectly, derived by any person from a right or benefit granted on or after 1 January 2003, whether granted in the person’s name or in the name of the person’s nominee or agent, to acquire shares in any company are, where the right or benefit is obtained by that person by reason of any office or employment held by the person, deemed to be income chargeable to tax under subsection (1)( b ), accruing at such time and of such amount as determined under the following provisions: ( a ) where the right or benefit is exercised, assigned, released or acquired — at the time of the exercise, assignment, release or acquisition of the right or benefit and the gains or profits are the price of the shares in the open market at that time, less any amount paid for the shares; ( b ) despite paragraph ( a ), where the right or benefit granted is subject to any restriction on the sale of the shares so acquired — at the time the restriction ceases to apply and the gains or profits are the price of the shares in the open market at that time, less any amount paid for the shares; ( c ) if it is not possible to determine the gains or profits under paragraph ( a ) or ( b ), the Comptroller may use the net asset value of the shares, less any amount paid for the shares, as the basis for determining the gains or profits; ( d ) despite paragraphs ( a ) and ( c ), any gains or profits derived by the person by any exercise of a right or benefit to acquire shares in any company listed on the Singapore Exchange are computed in accordance with the formula where A is — (i) if the shares are not treasury shares, the price of the shares in the open market at the last transaction on the date on which the shares are first listed on the Singapore Exchange after the acquisition of the shares by the person; and (ii) if the shares are treasury shares, the price of the shares in the open market at the last transaction on the date an appropriate entry is made in the Depository Register by the Central Depository (Pte) Ltd to effect the acquisition of the treasury shares by the person; and B is the amount paid for such shares; ( e ) “shares” includes stocks. (6A) To avoid doubt, section 10(5) in force immediately before 10 December 2002 continues to apply to any gains or profits directly or indirectly derived by the exercise, assignment or release of any right or benefit to acquire shares (including stocks) in a company granted to a person before 1 January 2003, whether in his or her name or in the name of his or her nominee or agent, where the right or benefit was obtained by that person by reason of any office or employment held by him or her. (7) Despite subsection (6), where — ( a ) the right or benefit to acquire shares in a company is granted on or after 1 January 2003 to an individual while he or she is exercising an employment in Singapore; and ( b ) immediately before he or she ceases that employment — (i) the individual is neither a citizen of Singapore nor a Singapore permanent resident, or being a Singapore permanent resident is leaving Singapore permanently; and (ii) the right or benefit is not exercised, assigned, released or acquired by him or her, or the restriction on the sale of the shares has not ceased to apply, any gains or profits from the right or benefit are — ( c ) deemed to be income derived by the individual one month before the date of cessation of employment or the date the right or benefit is granted, whichever is the later; and ( d ) computed based on the price of the shares in the open market on that date, less the amount paid for the shares. (7AA) Despite subsection (7), if — ( a ) within 5 years after the year in which the later of the dates mentioned in subsection (7)( c ) falls, either the individual ( X ) exercises, assigns, releases or acquires the right or benefit or, if the right or benefit is subject to any restriction on the sale of the shares so acquired, the restriction ceases to apply; ( b ) any gains or profits of X computed in accordance with subsection (6) would have been lower than the amount computed in accordance with subsection (7); and ( c ) X makes an application under subsection (7AC), then X ’s gains or profits from the right or benefit are computed in accordance with subsection (6)( a ) to ( d ) (whichever is applicable) and treated as income derived on the later of the dates mentioned in subsection (7)( c ), and is chargeable to tax under subsection (1)( b ). [Act 25 of 2025 wef 08/12/2025] (7AB) Subsection (7) does not apply if — ( a ) within 5 years after the year in which the later of the dates mentioned in subsection (7)( c ) falls, the right or b


document_id: ita-1947
provision_ref: s10A
chapter: PART 3 - IMPOSITION OF INCOME TAX
section: 10A
title: Profits of unit trusts
content:
10A. —(1) Despite any other provisions of this Act, the Minister may by regulations — ( a ) provide that tax on gains or profits derived on or after 1 July 1989 from the disposal of securities by an approved unit trust is to be levied and paid for each year of assessment by the trustees upon such percentage of the gains or profits and in such manner as may be prescribed; ( b ) provide for the deduction of such percentage of the losses arising from the disposal of securities in such manner as may be prescribed; ( c ) provide for the deduction of expenses allowable under this Act to be granted in such manner as may be prescribed; ( d ) provide for the deduction of tax by the trustees of the unit trust on any distribution received by a unit holder which is deemed to be income under section 10(19). (1A) No unit trust may be approved as an approved unit trust under this section after 18 February 2019. [32/2019] (2) In this section — “approved” means approved by the Minister or such person as the Minister may appoint; “securities” has the meaning given by section 10(23); “unit” means a right or an interest (whether described as a unit, a sub‑unit or otherwise) which may be acquired under a unit trust; “unit trust” means any trust established 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 securities or any other property. [10B [32/2019]


document_id: ita-1947
provision_ref: s10B
chapter: PART 3 - IMPOSITION OF INCOME TAX
section: 10B
title: Excess provident fund contributions, etc., from employer deemed to be income
content:
10B. —(1) Despite section 13(1)( j ), where in any year, contributions have been made by an employer in respect of an employee under section 7 of the Central Provident Fund Act 1953 — ( a ) any part of the employer’s contributions, in respect of ordinary or additional wages paid to the employee in that year, which is not obligatory under that Act; or ( b ) the employer’s contributions in respect of that part of the additional wages which exceeds the specified amount paid to the employee in that year, are deemed to be income accruing to the employee for the year in which the wages are paid. (2) Despite subsection (1)( a ), where in any year, contributions obligatory by reason of a contract of employment are made by any relevant employer to the Central Provident Fund in respect of overseas ordinary wages or overseas additional wages paid to an employee in that year, that part of such contributions up to the relevant amount is not deemed to be income accruing to the employee. (3) Subsection (2) does not apply to contributions made by an employer in any year from 1 January 1999 to the Central Provident Fund in respect of an employee who holds a professional visit pass or a work pass in that year. (4) [ Deleted by Act 32 of 2019 ] (5) [ Deleted by Act 32 of 2019 ] (5A) Despite subsection (1)( a ) but subject to subsection (6), where a contribution is made by an employer in 2013 or any subsequent year to the medisave account of the employer’s employee maintained under the Central Provident Fund Act 1953, the contribution up to the maximum amount mentioned in subsection (5B) is not deemed to be income accruing to the employee. (5B) The maximum amount is — ( a ) $1,500 per year (for contributions made before 2018); or ( b ) $2,730 per year (for contributions made in 2018 and in each subsequent year), less any previous contribution that is made to the medisave account in that year by the employer in the employer’s capacity as a person of a prescribed description in section 13(1)( jd ) (if applicable), and that is exempt from tax under that provision. [39/2017] (6) Subsection (5A) does not apply to contributions made by an employer in any year from 1 January 1999 to the Central Provident Fund in respect of an employee who holds a professional visit pass or a work pass in that year. [32/2019] (7) [ Deleted by Act 7 of 2007 ] (8) Where in any year contributions under section 7 of the Central Provident Fund Act 1953 have been made in respect of an employee employed by 2 or more employers and the employers are related to each other, subsection (1)( b ) applies as if all the ordinary and additional wages from those related employers and the contributions on those wages were paid by one employer. (9) For the purposes of subsection (8), one employer is deemed to be related to another where one of them, directly or indirectly, has the ability to control the other or where both of them, directly or indirectly, are under the control of a common person. (10) Subsections (1) to (9) apply, with the necessary modifications, to contributions made by an employer to a designated pension or provident fund as if those contributions were the employer’s contributions to the Central Provident Fund. (11) Where in any year contributions have been made by an employer in respect of an employee to any pension or provident fund constituted outside Singapore, the whole of the contributions made to that pension or provident fund is deemed to be income accruing to the employee for the year in which the contributions are paid. (12) In this section — “additional wages” has the meaning given by the Central Provident Fund Act 1953; “designated pension or provident fund” means an approved pension or provident fund designated by the Minister under section 39(8); “employer’s contributions” means the contributions made by any employer under section 7(1) of the Central Provident Fund Act 1953 less the amount of contributions recoverable by the employer from the wages of an employee under section 7(2) of that Act; “ordinary wages” has the same meaning as “ordinary wages for the month” in the Central Provident Fund Act 1953; “overseas additional wages” means additional wages paid in respect of the performance of any duty for any period outside Singapore; “overseas ordinary wages” means ordinary wages paid in respect of the performance of any duty for any period outside Singapore; “overseas total wages”, in relation to any year, means the total of the overseas ordinary wages and overseas additional wages in that year received by an employee; “relevant amount” means the amount of contributions which would have been required to be made by the relevant employer had such contributions been obligatory under the Central Provident Fund Act 1953 in respect of — ( a ) the overseas total wages paid to an employee in any year less the aggregate in that year of such part of the overseas ordinary wages that are paid to the employee in every month in that year which exceeds — (i) for a month before September 2011 — $4,500; (ii) for the month of September 2011 or any subsequent month before January 2016 — $5,000; (iii) for the month of January 2016 or any subsequent month before September 2023 — $6,000; (iv) for the month of September 2023 or any subsequent month before January 2024 — $6,300; (v) for the month of January 2024 or any subsequent month before January 2025 — $6,800; (vi) for the month of January 2025 or any subsequent month before January 2026 — $7,400; or (vii) for the month of January 2026 or any subsequent month — $8,000; or [Act 30 of 2023 wef 01/09/2023] ( b ) $79,333 (in relation to the year 2011), $85,000 (in relation to the years 2012, 2013, 2014 and 2015) or $102,000 (in relation to the year 2016 and every subsequent year), whichever is less; “relevant employer” means any company incorporated or registered under the Companies Act 1967 or any person registered under the Business Names Registration Act 2014; “specified amount” means — ( a ) [ Deleted by Act 2 of 2016 ] ( b ) [ Deleted by Act 33 of 2022 wef 04/11/2022 ] ( c ) in relation to the year 2011, the difference between $79,333 and the total ordinary wages paid to the employee in that year; and for this purpose, any amount of ordinary wages paid to the employee for any month in the year in excess of $4,500 (being a month before September 2011) or $5,000 (being the month of September 2011 or any subsequent month) is disregarded; ( d ) in relation to the year 2012, 2013, 2014 or 2015, the difference between $85,000 and the total ordinary wages paid to the employee in that year; and for this purpose, any amount of ordinary wages paid to the employee for any month in the year in excess of $5,000 is disregarded; and ( e ) in relation to the year 2016 and every subsequent year, the difference between $102,000 and the total ordinary wages paid to the employee in that year; and for this purpose, the amount of ordinary wages mentioned in each of the following sub-paragraphs that is paid to the employee for every month specified in that sub-paragraph is disregarded: (i) for the month of January 2016 or any subsequent month before September 2023 — any amount in excess of $6,000; (ii) for the month of September 2023 or any subsequent month before January 2024 — any amount in excess of $6,300; (iii) for the month of January 2024 or any subsequent month before January 2025 — any amount in excess of $6,800; (iv) for the month of January 2025 or any subsequent month before January 2026 — any amount in excess of $7,400; (v) for the month of January 2026 or any subsequent month — any amount in excess of $8,000; [Act 30 of 2023 wef 01/09/2023] “total wages”, in relation to any year, means the total of the ordinary and additional wages in that year received by an employee; “year” means any year from 1 January to 31 December. [10C [29/2014; 2/2016] [Act 30 of 2024 wef 01/01/2025]


document_id: ita-1947
provision_ref: s10BA
chapter: PART 3 - IMPOSITION OF INCOME TAX
section: 10BA
title: Voluntary contributions by platform operator deemed to be income
content:
10BA. Despite section 13(1)( j ) but subject to section 13(1)( jd ), where in any year, contributions have been made by a platform operator to the Central Provident Fund account of any platform worker under section 8A of the Central Provident Fund Act 1953, any part of such contribution, which is not obligatory under that Act, is deemed to be income accruing to the platform worker for the year in which the contributions are paid. [Act 30 of 2024 wef 01/01/2025]


document_id: ita-1947
provision_ref: s10C
chapter: PART 3 - IMPOSITION OF INCOME TAX
section: 10C
title: Income from finance or operating lease
content:
10C. —(1) Despite any other provisions of this Act, the Minister may by regulations provide for the circumstances in which the Comptroller may direct that allowances under section 19, 19A, 20, 21, 22 or 23 in respect of any machinery or plant which is leased under a finance lease entered into on or after 1 April 1990 are not to be made to the lessor but to the lessee as though the machinery or plant had been sold by the lessor to the lessee. (2) In determining the income of a lessor from 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 subsection (1), the following provisions apply: ( a ) 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; (ii) any loss may be deducted under section 37; ( b ) where the lessor derives income from onshore leasing or offshore leasing or both and such income is subject to tax under section 42(1) or 43(1), the allowances under section 19, 19A, 20, 21, 22 or 23 in respect of finance leasing are only available as a deduction against the income from finance leasing, and any balance of the allowances is not, subject to paragraph ( d ), available as a deduction against any other income or available for transfer under section 37B, 37C or 37E; ( c ) where the lessor is a leasing company which derives income from onshore leasing as well as from offshore leasing subject to the concessionary rate of tax under section 43F, any balance of the allowances under section 19, 19A, 20, 21, 22 or 23 in respect of onshore finance leasing in any year of assessment after deduction against the income from such leasing is available as a deduction against any income from offshore finance leasing for that year of assessment, and any balance of the allowances is not, subject to paragraph ( d ), available as a deduction against any other income or available for transfer under section 37B; ( d ) where the lessor referred to in paragraph ( b ) or ( c ) ceases to derive income from finance leasing in the basis period for any year of assessment, any balance of the allowances after the deduction in paragraph ( b ) or ( c ) 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; ( e ) where the lessor is a leasing company which derives income from onshore leasing as well as from offshore leasing subject to the concessionary rate of tax under section 43F — (i) the allowances under section 19, 19A, 20, 21, 22 or 23 in respect of operating leasing must firstly be available as a deduction against the income from such leasing, and any balance of the allowances is available as a deduction against any other income; and (ii) any losses incurred in respect of finance leasing or operating leasing are available as a deduction against any other income. (2A) The income of a lessor during any basis period from the finance leasing of any machinery or plant that is treated as sold by the lessor to the lessee pursuant to regulations made under subsection (1), is determined by the formula A – B, where — ( a ) A is the total of all payments liable to be made during the basis period by the lessee to the lessor under the finance lease; and ( b ) B is that part of those payments that is attributable to the repayment of principal. [45/2018] (3) In this section — “finance lease” means a lease of any machinery or plant (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 machinery or plant to the lessee; “finance leasing” means the leasing of any machinery or plant under any finance lease; “leasing company”, “offshore finance leasing” and “offshore leasing” have the meanings given by section 43F(9); “onshore finance leasing” means the onshore leasing of any machinery or plant under any finance lease; “onshore leasing” means the leasing, other than offshore leasing, of any machinery or plant; “operating leasing” means the leasing of any machinery or plant, other than finance leasing. [10D


document_id: ita-1947
provision_ref: s10D
chapter: PART 3 - IMPOSITION OF INCOME TAX
section: 10D
title: Ascertainment of income from business of making investments
content:
10D. —(1) Despite any other provisions of this Act, in determining the income of a company or trustee of a property trust derived from any business of the making of investments, the following provisions apply: ( a ) any outgoings and expenses incurred by the company or trustee of a property trust in respect of investments of that business which do not produce any income are not allowed as a deduction under section 14 for that business or other income of the company or trustee of a property trust; ( b ) any outgoings and expenses incurred by the company or trustee of a property trust in respect of investments of that business which produce any income are only available as a deduction under section 14 against the income derived from such investments and any excess of such outgoings and expenses over such income in any year is disregarded; ( c ) the allowances under sections 19, 19A, 20 and 21 relating to that business are only available as a deduction against the income derived from investments of that business which produce any income and the balance of the allowances in any year is disregarded. (1A) Where subsection (1) would apply to the originator of any approved Islamic debt securities arrangement if that arrangement had not been entered into, that subsection continues to apply to the originator as if the arrangement had not been entered into. (1B) Where the investment mentioned in subsection (1) is an immovable property, that subsection only applies if the company or trustee of the property trust — ( a ) is the legal owner of the investment; or ( b ) otherwise has a proprietary interest in the investment (including a lease or an easement) and would receive consideration if the proprietary interest is disposed of or transferred, whether in whole or in part. [41/2020] (2) In this section — “approved Islamic debt securities arrangement” and “originator” have the meanings given by section 10(28); “business of the making of investments” includes the business of letting immovable properties; “immovable property‑related assets” means debt securities and shares issued by property companies, mortgaged‑backed securities, other property trust funds, and assets incidental to the ownership of immovable properties; “investments” means securities, immovable properties and immovable property‑related assets; “property trust” means a trust which invests in immovable properties or immovable property‑related assets. [10E


document_id: ita-1947
provision_ref: s10E
chapter: PART 3 - IMPOSITION OF INCOME TAX
section: 10E
title: Ascertainment of income from certain public‑private partnership arrangements
content:
10E. —(1) Where — ( a ) a contract is entered into on or after 29 December 2009 between the Government or any approved statutory body and any person under a public‑private partnership arrangement; and ( b ) the contract is or contains a finance lease recognised as such by the lessor in accordance with FRS 17 read with INT FRS 104, FRS 116, SFRS(I) 1‑17 read with SFRS(I) INT 4, or SFRS(I) 16, the Government or the approved statutory body being the lessee and the person being the lessor, then — ( c ) despite any provisions under Part 6, the allowances under section 16, 17, 18B, 18C, 19, 19A, 20, 21, 22 or 23 in respect of any building or structure, or any machinery or plant, which is a subject of that finance lease, are not to be made to the person, but to the Government or the approved statutory body, as the case may be; and ( d ) the person must not be assessed to tax on that part of the lease payment under that finance lease that is attributable to repayment of principal. [45/2018] (1A) Despite any other provision of this Act, where — ( a ) a person provides any services in the basis period for the year of assessment 2012 or any subsequent year of assessment under a public‑private partnership arrangement — (i) that is the subject of a contract entered into between the person and the Government or any approved statutory body; and (ii) to which INT FRS 112 or SFRS(I) INT 12 applies; and ( b ) the person recognises in the person’s financial statements, prepared in accordance with INT FRS 112 or SFRS(I) INT 12 (as the case may be), that income of a certain amount has been derived from such services, then that amount is deemed as income derived by that person from those services for that basis period. [45/2018] (1B) Despite subsection (1A), the person mentioned in that subsection may elect in accordance with subsection (1D) for the Comptroller to assess to tax any deemed income mentioned in subsection (1A) from providing any FRS 11 construction or upgrade services, FRS 115 construction or upgrade services, or SFRS(I) 15 construction or upgrade services, under the public‑private partnership arrangement, as income derived by the person in the basis period in which those services are completed. [39/2017; 32/2019] (1C) Where an election has been made in accordance with subsection (1D), then, despite any other provision of this Act — ( a ) the income referred to in subsection (1B) is deemed as income derived by the person in the basis period in which the FRS 11 construction or upgrade services, FRS 115 construction or upgrade services, or SFRS(I) 15 construction or upgrade services (as the case may be) are completed; and ( b ) any expenditure for which a deduction or an allowance may be allowed or made to the person under Parts 5 and 6 in respect of those services is treated as having been incurred in that basis period. [39/2017; 32/2019] (1D) The election must be made by written notice to the Comptroller — ( a ) at the time of lodgment of the return of income for the year of assessment relating to the basis period in which the person first provides the FRS 11 construction or upgrade services, FRS 115 construction or upgrade services, or SFRS(I) 15 construction or upgrade services (as the case may be), being the year of assessment 2012 or any subsequent year of assessment; or ( b ) at such later time as the Comptroller may allow. [39/2017; 32/2019] (1E) The election made under subsection (1D) is irrevocable. (2) In this section — “approved” means approved by the Minister or such person as the Minister may appoint; “FRS 11 construction or upgrade services” means any construction or upgrade services (as the case may be) to which FRS 11 applies; “FRS 115 construction or upgrade services” means any construction or upgrade services (as the case may be) to which FRS 115 applies; “FRS 11”, “FRS 17”, “FRS 115”, “FRS 116”, “INT FRS 104”, “INT FRS 112”, “SFRS(I) 1‑17”, “SFRS(I) 15”, “SFRS(I) 16”, “SFRS(I) INT 4” and “SFRS(I) INT 12” mean the financial reporting standards known respectively as — ( a ) Financial Reporting Standard 11 (Construction Contracts); ( b ) Financial Reporting Standard 17 (Leases); ( c ) Financial Reporting Standard 115 (Revenue from Contracts with Customers); ( d ) Financial Reporting Standard 116 (Leases); ( e ) Interpretation of Financial Reporting Standard 104 (Determining whether an Arrangement contains a Lease); ( f ) Interpretation of Financial Reporting Standard 112 (Service Concession Arrangements); ( g ) Singapore Financial Reporting Standard (International) 1‑17 (Leases); ( h ) Singapore Financial Reporting Standard (International) 15 (Revenue from Contracts with Customers); ( i ) Singapore Financial Reporting Standard (International) 16 (Leases); ( j ) Singapore Financial Reporting Standard (International) Interpretation 4 (Determining whether an Arrangement contains a Lease); and ( k ) Singapore Financial Reporting Standard (International) Interpretation 12 (Service Concession Arrangements), that are made by the Accounting Standards Committee under Part 3 of the Accounting Standards Act 2007, as amended from time to time; [Act 36 of 2022 wef 01/04/2023] “SFRS(I) 15 construction or upgrade services” means any construction or upgrade services (as the case may be) to which SFRS(I) 15 applies. [10F [39/2017; 45/2018; 32/2019]


document_id: ita-1947
provision_ref: s10F
chapter: PART 3 - IMPOSITION OF INCOME TAX
section: 10F
title:
Ascertainment of income from business of hiring out motor cars or providing driving instruction or chauffeur services

content:
10F. —(1) Despite any other provisions of this Act, in determining the income derived by any person for any year of assessment from any business of hiring out motor cars or of providing driving instruction using motor cars, the following provisions apply: ( a ) any outgoings and expenses incurred in respect of that business for that year of assessment and allowable under this Act may only be deducted against the income derived from that business and any excess of such outgoings and expenses over such income is not available as a deduction against any other income of the person or be available for transfer under section 37B, 37C or 37E for that year of assessment and any subsequent year of assessment; ( b ) the allowances under sections 19, 19A, 20, 21 and 22 relating to that business for that year of assessment are only available as a deduction against the income derived from that business and any excess of such allowances over such income is not available as a deduction against any other income of the person or be available for transfer under section 37B, 37C or 37E for that year of assessment and any subsequent year of assessment. [41/2020] (1A) Subsection (1) applies in determining the income derived by any person for the year of assessment 2021 or a subsequent year of assessment from any business of providing chauffeur services using motor cars as it applies in determining the income derived by a person from any business mentioned in that subsection. [41/2020] (2) In this section, “motor car” means a car which is constructed or adapted for the carriage of not more than 7 passengers exclusive of the driver and the weight of which unladen does not exceed 3,000 kilograms. [10H


document_id: ita-1947
provision_ref: s10G
chapter: PART 3 - IMPOSITION OF INCOME TAX
section: 10G
title: Withdrawals from Supplementary Retirement Scheme
content:
10G. —(1) Where the amount of withdrawals made by an SRS member from his or her SRS account in any year exceeds the amount the SRS member contributed to his or her SRS account in that year, the excess amount withdrawn from his or her SRS account is, subject to subsections (3), (3G), (6), (7), (8) and (9), deemed to be income of the SRS member chargeable to tax under section 10(1)( g ). [2/2016] (2) Except where a withdrawal is made by the Official Assignee or the trustee in bankruptcy of an SRS member who is a bankrupt or where a withdrawal is made under subsection (3), (3G), (4) or (8) or deemed to be withdrawn under subsection (6), (7) or (9), a penalty of 5% of the amount withdrawn which is deemed to be income of an SRS member under subsection (1) is payable by the SRS member and must be deducted by the SRS operator from the amount so withdrawn. [2/2016] (2A) The Minister may, for any good cause, remit, wholly or in part, any penalty payable by any SRS member under subsection (2). (3) Subject to subsection (3G), only 50% of the following withdrawals made by an SRS member from his or her SRS account are deemed to be income of the SRS member chargeable to tax under section 10(1)( g ): ( a ) withdrawal of all the funds standing in his or her SRS account at the same time if the SRS member is neither a citizen of Singapore nor a Singapore permanent resident on the date of the withdrawal and for a continuous period of at least 10 years before that date, and has maintained his or her SRS account for a period of not less than 10 years from the date of his or her first contribution to his or her SRS account; ( b ) any withdrawal on or after the SRS member has attained the prescribed minimum retirement age prevailing at the time when the SRS member made his or her first contribution to his or her SRS account; or ( c ) any withdrawal made on the ground that the SRS member is physically or mentally incapacitated from ever continuing in any employment, is mentally disordered and incapable of managing himself or herself or his or her affairs or has a terminal illness or disease. [2/2016] [Act 30 of 2023 wef 30/10/2023] (3A) Subject to subsection (3C), where an SRS member has used funds in his or her SRS account for any investment, any payment to the SRS member thereafter, being — ( a ) any gains or profits from the investment made; ( b ) any part of the funds the SRS member invested; or ( c ) any proceeds from the sale or liquidation of such investment, is considered a withdrawal by the SRS member from his or her SRS account for the purposes of subsections (1), (2) and (3)( b ) and ( c ). (3B) Subsection (3A) applies even if the SRS account has been closed before the payment mentioned in that subsection, and in that event the person to whom the payment is made is treated as if the person is still an SRS member for the purposes of subsections (1), (2), (2A) and (3)( b ) and ( c ). (3C) Subsection (3A) does not apply to any payment received after any balance remaining or sum standing in the SRS account is deemed withdrawn under subsection (6), (7) or (9). (3D) Where any funds in an SRS account have been used for investment, then all the funds standing in the SRS account are considered as having been withdrawn at the same time for the purposes of subsections (3)( a ) and (3G) if, and only if, every investment has either been sold or liquidated, or is one which has been deducted from the balance in the SRS account, and — ( a ) in the case of every investment that has been sold or liquidated, amounts which the financial product provider declared to the SRS member to be all the gains or profits from the investment, all funds used for the investment, and all the proceeds from the sale or liquidation have been returned to the account and these, together with all funds standing in the SRS account, are withdrawn at the same time; and ( b ) in the case of every investment which has been deducted from the balance in the SRS account, the date of the deduction is the same as the date on which the withdrawal referred to in paragraph ( a ) takes place. [37/2014; 2/2016] (3E) Where — ( a ) an SRS member has used funds in his or her SRS account for any investment; and ( b ) the investment is one which has been deducted from the balance in the SRS account, then an amount equal to the value of the investment as determined in the manner prescribed by regulations made under subsection (11), is considered as having been withdrawn by the SRS member from his or her SRS account on the date of the deduction for the purposes of subsections (1), (2), (3) and (3G). [37/2014; 2/2016] (3F) In subsections (3D) and (3E) — ( a ) an investment is one which has been deducted from the balance in an SRS account if the SRS operator in question has, in accordance with the regulations made under subsection (11), approved the deduction of the sums representing the investment from the balance in the SRS account; and ( b ) the date of the deduction is the date of the approval referred to in paragraph ( a ). [37/2014] (3G) Where an SRS member makes a withdrawal of all of the funds standing in the SRS account of the SRS member on the ground that the SRS member has a terminal illness or disease, then an amount determined in the following manner (if more than zero) is treated as the SRS member’s income chargeable to tax under section 10(1)( g ): where A is the amount of the withdrawal; and B is the amount determined under subsection (9A). [2/2016] [Act 30 of 2023 wef 30/10/2023] (4) Where any contribution made by an SRS member in any year to his or her SRS account exceeds his or her SRS contribution cap for that year (called in this section excess contribution) — ( a ) the aggregate of the excess contribution and, unless the Comptroller otherwise directs, an amount equal to 5% of the excess contribution, to be compounded yearly in accordance with regulations made under this section; or ( b ) the total amount standing in his or her SRS account, whichever amount is the lower, must be withdrawn by the SRS member from his or her SRS account by 31 December of the year in which he or she has been notified by the Comptroller of the excess contribution; and that amount is deemed to be the SRS member’s income chargeable to tax under section 10(1)( g ) for that year. (5) Where an SRS member is eligible to make a withdrawal under subsection (3)( b ), all the funds (excluding any life annuity) standing in his or her SRS account must be withdrawn not later than 10 years from the date the SRS member made his or her first withdrawal under subsection (3)( b ). (6) Upon the expiry of the period referred to in subsection (5), any balance (excluding any life annuity and any amount not withdrawn under subsection (4)) remaining in the SRS account is deemed to be withdrawn by the SRS member and 50% of such balance is deemed to be the SRS member’s income chargeable to tax under section 10(1)( g ) for the year in which the period expires. (6A) Where an SRS member — ( a ) made his or her first withdrawal under subsection (3)( b ); and ( b ) subsequently made one or more contributions to his or her SRS account during the period from 1 October 2008 to 31 December 2008 (both dates inclusive), then — ( c ) any withdrawal made under subsection (3)( b ) prior to the date of the first of the SRS member’s contributions referred to in paragraph ( b ) is disregarded for the purpose of determining the period referred to in subsection (5); and ( d ) the date of the SRS member’s first withdrawal made under subsection (3)( b ) after the date of the first of his or her contributions referred to in paragraph ( b ) is deemed to be the date the SRS member made his or her first withdrawal under subsection (3)( b ) for the purpose of determining the period referred to in subsection (5). (6B) Where an SRS member — ( a ) had made one or more withdrawals under subsection (3)( b ) of all the funds standing in his or her SRS account and had closed his or her SRS account (called in this subsection the first SRS account); and ( b ) subsequently opened another SRS account during the period from 1 October 2008 to 31 December 2008 (both dates inclusive) (called in this subsection the second SRS account), then — ( c ) the reference to the date the SRS member made his or her first withdrawal under subsection (3)( b ) for the purpose of determining the period referred to in subsection (5) is a reference to the date the SRS member makes his or her first withdrawal after he or she opened the second SRS account; and ( d ) for the purposes of subsection (1) and section 39(2)( o ), both the first SRS account and the second SRS account are deemed to be the same account as if the first SRS account had never been closed. (7) Where an SRS member is eligible to make a withdrawal under subsection (3)( c ), he or she must withdraw all the funds (excluding any life annuity) standing in his or her SRS account not later than 10 years from the date he or she makes the first withdrawal; and upon the expiry of that period, any balance (excluding any life annuity and any amount not withdrawn under subsection (4)) remaining in his or her SRS account is deemed to be withdrawn by the SRS member and 50% of such balance is deemed to be the SRS member’s income chargeable to tax under section 10(1)( g ). (8) Only 50% of any annuity payment made under a life annuity purchased by an SRS member under the SRS is deemed to be income of the SRS member chargeable to tax under section 10(1)( g ) upon — ( a ) the expiry of the period referred to in subsection (5); ( b ) the expiry of the period referred to in subsection (7); or ( c ) the closure of the SRS account of the SRS member — (i) on or after the date the SRS member attains the prescribed minimum retirement age prevailing at the time the SRS member makes the first contribution to the SRS account; or (ii) on or after the date the SRS member becomes physically or mentally incapacitated from ever continuing in any employment, becomes mentally disordered and incapable of managing himself or herself or his or her affairs, or is diagnosed to have a terminal illness or disease. [2/2016] [Act 30 of 2023 wef 30/10/2023] (9) When an SRS member dies, any sum standing in the SRS account of the SRS member is treated as withdrawn on the date of death, and an amount determined in the following manner (if more than zero) is treated as the SRS member’s income chargeable to tax under section 10(1)( g ): where A is the amount treated as withdrawn; and B is the amount determined under subsection (9A). [2/2016] (9A) For the purposes of subsections (3G) and (9), the amount B referred to in those subsections is — where C is — ( a ) if the SRS member made a withdrawal under subsection (3)( b ) or ( c ) (not being a withdrawal under subsection (3G)) in any year before the relevant year, the total number of years (a part of a year being treated as a full year) in the period — (i) beginning with the year in which the SRS member made the first such withdrawal; and (ii) ending with the year immediately before the relevant year, or, if the first year and the last year in the period are (or are part of) the same year, one; or ( b ) if the SRS member made his or her first withdrawal under subsection (3)( b ) or ( c ) (not being a withdrawal under subsection (3G)) in the relevant year, or did not make any such withdrawal, zero; and D is the lower of — ( a ) $40,000; and ( b ) the sum of the following withdrawals made in the relevant year (which is not a withdrawal under subsection (3G)): (i) every withdrawal made under subsection (3)( b ); (ii) every withdrawal made under subsection (3)( c ). [2/2016] (9B) In subsection (9A), “relevant year” means — ( a ) the year in which the SRS member makes the withdrawal under subsection (3G); or ( b ) the year of death of the SRS member, as the case may be. [2/2016] (10) For the purposes of this section, the use of funds in his or her SRS account by an SRS 


document_id: ita-1947
provision_ref: s10H
chapter: PART 3 - IMPOSITION OF INCOME TAX
section: 10H
title: Securities lending or repurchase arrangement
content:
10H. —(1) For the purpose of determining whether an amount, other than any fee payable under a securities lending or repurchase arrangement, should be taken into account in ascertaining the gains or profits from any transfer of securities under the arrangement in respect of which a transferor is chargeable to tax, the transferor is to be treated as if — ( a ) the transfer of the transferred securities had not been made; ( b ) the transferor had held the transferred securities at all times during the borrowing period; and ( c ) the return of the transferred securities or equivalent securities had not been made at the end of the borrowing period. (2) Despite subsection (1), where a transferor is a person who carries on a trade or business of sale and purchase of securities, any gains or profits derived by the transferor from any transfer of securities under a securities lending or repurchase arrangement are chargeable to tax under section 10(1)( a ) if subsequent to the transfer of the transferred securities — ( a ) the transferred securities are redeemed; ( b ) the transferee accepts a takeover offer for the transferred securities upon the direction of the transferor; ( c ) the arrangement is terminated because the transferor or transferee is unable to perform any of the obligations specified in the arrangement, unless the transferor applies the collateral held by the transferor to re‑acquire equivalent securities under the terms of the arrangement; ( d ) the transferee sells the transferred securities to the issuer of such securities upon the direction of the transferor; or ( e ) any other event occurs which, in the Comptroller’s opinion, results in the condition specified in paragraph ( a )(iii) or (iv) of the definition of “securities lending or repurchase arrangement” not fulfilled, and the gains or profits are deemed to arise at the time any of the events referred to in paragraph ( a ), ( b ), ( c ), ( d ) or ( e ) occurs. (3) Where a transferee is a person who carries on a trade or business of sale and purchase of securities, any gains or profits derived by the transferee from any transfer of securities under a securities lending or repurchase arrangement are chargeable to tax under section 10(1)( a ), and the gains or profits are deemed to arise at the time any of the following events occurs: ( a ) the transferee disposes of the transferred securities to a person other than the transferor; ( b ) subsequent to such disposal, the transferee returns equivalent securities to the transferor or any of the events specified in subsection (2) occurs, whichever is the earlier. (4) For the purposes of computing the gains or profits of a transferee under subsection (3), the transferee is to be treated as if the transferee had acquired the transferred securities from or returned equivalent securities to the transferor (as the case may be) for a consideration equal to the market value of the transferred securities at the beginning of the borrowing period under the securities lending or repurchase arrangement. (5) Where any distribution in respect of transferred securities is made to a Singapore‑based transferee and received by a transferor under a securities lending or repurchase arrangement, the distribution must be included in the statutory income of the transferor of the year in which the distribution is made to the transferee, and be assessed as if the distribution had been made to the transferor. [Act 35 of 2024 wef 27/11/2024] (6) [ Deleted by Act 19 of 2013 ] (7) A Singapore‑based transferee (other than a transferee under a buy and sell back arrangement in respect of qualifying debt securities or foreign debt securities) is not entitled to any tax credit under section 50 or 50A for any distribution received by the transferee from outside Singapore in respect of transferred securities under a securities lending or repurchase arrangement. (8) Where any compensatory payment derived under a securities lending or repurchase arrangement by a transferor from a Singapore‑based transferee is in place of — ( a ) any distribution, the transferor is to be assessed at the tax rate that would have applied to the distribution had it been made directly to the transferor; or [Act 35 of 2024 wef 27/11/2024] ( b ) [ Deleted by Act 19 of 2013 ] ( c ) a distribution of income derived from outside Singapore and where the transferor is resident in Singapore, no tax credit under section 50 or 50A is allowed to the transferor. (9) Section 45 applies in relation to — ( a ) any distribution of interest (other than interest derived from qualifying debt securities) in respect of transferred securities; and ( b ) any compensatory payment in place of — (i) any distribution of income derived from outside Singapore; [Act 35 of 2024 wef 27/11/2024] (ii) [ Deleted by Act 19 of 2013 ] (iii) any distribution of interest (other than interest derived from qualifying debt securities); or [Act 35 of 2024 wef 27/11/2024] (iv) any distribution of any other income that is not exempt from tax, made under a securities lending or repurchase arrangement by a Singapore‑based transferee to a transferor who is not resident in Singapore, as that section applies to any interest paid by a person to another person not known to the firstmentioned person to be resident in Singapore, and for the purpose of such application, any reference in that section to interest is a reference to such distribution or compensatory payment. [Act 35 of 2024 wef 27/11/2024] (9A) Section 45 applies in the manner set out in section 45G in relation to — ( a ) any distribution in respect of transferred securities that are units of a real estate investment trust or an approved REIT exchange-traded fund; and ( b ) any compensatory payment in place of any distribution mentioned in paragraph ( a ), made under a securities lending or repurchase arrangement by a Singapore-based transferee to a transferor who is not known to the trustee to be resident in Singapore, as section 45 applies in relation to a distribution by a trustee of a real estate investment trust or by a trustee of an approved REIT exchange-traded fund to another person in accordance with section 45G(1), and for this purpose — ( c ) any reference in section 45G to a distribution is to the distribution or compensatory payment mentioned in paragraph ( a ) or ( b ); ( d ) section 45G(4) does not apply in relation to a compensatory payment mentioned in paragraph ( b ); and ( e ) section 45G(5) is omitted. [Act 35 of 2024 wef 27/11/2024] (10) For the purposes of this section, the Comptroller may specify such requirement and obligation to be observed, and such information in respect of any transferor, transferee or transferred securities to be furnished, by the depository agent of the transferor or transferee. (11) The Minister may make regulations to provide generally for giving full effect to or for carrying out the purposes of this section. (12) In this section — “approved REIT exchange-traded fund” and “real estate investment trust” have the meanings given by section 43(10); [Act 35 of 2024 wef 27/11/2024] “borrowing period”, in relation to any transferred securities, means the period commencing from the date the securities are transferred by the transferor to the transferee and ending on the date the securities or equivalent securities are returned to the transferor or are regarded as being disposed of by the transferor under subsection (2), whichever is the earlier; “commercial purpose”, in relation to any securities lending or repurchase arrangement, means — ( a ) the settling of a sale of securities, whether by the transferee or another person; ( b ) the replacement, in whole or in part, of the transferred securities obtained by the transferee under any earlier securities lending or repurchase arrangement; ( c ) the on‑lending of the transferred securities to another person; ( d ) the fulfillment by the transferee of its existing obligations arising from an uncovered written option position using transferred securities; ( e ) the hedging and arbitrage transactions entered into or to be entered into by the transferee; ( f ) the liquidity management by the transferee; ( g ) the holding of the transferred securities, without being disposed of, as collateral against the obligations of the counterparty to the securities lending or repurchase arrangement; or ( h ) any other purpose as the Minister (or such person as the Minister may appoint) may in writing allow; “compensatory payment”, in relation to any transferred securities, means a payment made during the borrowing period to a transferor in place of any distribution or right to purchase warrants, options or additional securities in respect of the transferred securities under circumstances in which the transferee does not receive such distribution to be passed on to the transferor, and includes any amount which is in place of interest and is deducted from the price paid by the transferor to acquire equivalent securities or re‑acquire the transferred securities under a buy and sell back arrangement in respect of qualifying debt securities, Singapore Government securities or foreign debt securities; [Act 35 of 2024 wef 27/11/2024] “distribution”, in relation to any transferred securities, includes the distribution of any income paid under the transferred securities to the holder of the transferred securities; [Act 35 of 2024 wef 27/11/2024] “equivalent securities”, in relation to any transferred securities, means securities which are identical in type, nominal value (where applicable), description and amount to the transferred securities and includes — ( a ) the securities into which the transferred securities have been converted, subdivided or consolidated; ( b ) the proceeds of the redemption of the transferred securities; ( c ) the cash or securities representing the proceeds of the acceptance of the takeover of the transferred securities; ( d ) if there is a call on partly‑paid securities and if the transferor has paid to the transferee the sum due on the call, the paid‑up securities; ( e ) if there is a bonus issue, the transferred securities together with the securities allotted by way of bonus; ( f ) if there is a rights issue and if the transferor has directed the transferee to take up the issue and has paid to the transferee any sum due on the issue, the transferred securities together with the securities allotted under the rights issue or, if the transferor has directed the transferee to sell the rights, the transferred securities together with the proceeds from the disposal of the rights; ( g ) if any distribution is made in the form of securities or a certificate which may be exchanged for securities or an entitlement to acquire securities, the transferred securities together with the securities or certificate or entitlement equivalent to those allotted; and ( h ) if the transferee is unable to return the transferred securities, such amount of money or securities equivalent to the transferred securities; “foreign debt securities” means debt securities denominated in any foreign currency (including bonds and notes) issued by foreign governments, foreign banks outside Singapore and companies not incorporated and not resident in Singapore; [Act 35 of 2024 wef 27/11/2024] “qualifying debt securities” has the meaning given by section 13(16); “securities” includes — ( a ) units in a collective investment scheme, exchange-traded fund, business trust or depository receipts; and ( b ) any securities (including units mentioned in paragraph ( a )) provided as a collateral; [Act 35 of 2024 wef 27/11/2024] “securities lending or repurchase arrangement” means any written arrangement made on or after 23 November 2001 — ( a ) under which — (i) a person (called in this section the transferor) transfers the legal interest in any securities (called in this section the transferred securities) to another person (called in this section the transferee) 


document_id: ita-1947
provision_ref: s10I
chapter: PART 3 - IMPOSITION OF INCOME TAX
section: 10I
title: Additional Tier 1 capital instruments
content:
10I. —(1) Any distribution by — ( a ) a bank incorporated in Singapore with a full banking licence; or ( b ) a designated financial holding company that has a subsidiary that is a bank mentioned in paragraph ( a ), that is liable to be made in respect of an AT1 instrument in the basis period for the year of assessment 2015 or a subsequent year of assessment is deemed for the purposes of this Act, and for that year of assessment, as interest derived from a debt security. [Act 35 of 2024 wef 27/11/2024] (1A) Any distribution by — ( a ) a local licensed insurer; or ( b ) a designated financial holding company that has a subsidiary that is a local licensed insurer, that is liable to be made in respect of an AT1 instrument issued on or after 1 January 2025, is deemed, for the purposes of this Act, as interest derived from a debt security. [Act 35 of 2024 wef 27/11/2024] (2) In this section — “AT1 instrument” means a security (not being shares) commonly known as Additional Tier 1 capital instrument which — ( a ) is issued in Singapore but not through a branch situated outside Singapore; and ( b ) satisfies any of the following: (i) according to MAS Notice 637, may be used to satisfy the capital adequacy requirement of a bank incorporated in Singapore with a full banking licence, under section 10(2) of the Banking Act 1970; [Act 18 of 2022 wef 30/06/2022] (ii) according to a direction issued under section 28(3) of the Monetary Authority of Singapore Act 1970 as in force immediately before the date of commencement of the Financial Holding Companies Act 2013 and to MAS Notice 637, may be used to satisfy the capital adequacy requirement of any other financial institution within the meaning of section 27A(6) of the Monetary Authority of Singapore Act 1970 as in force immediately before the date of commencement of the Financial Holding Companies Act 2013; [Act 18 of 2022 wef 30/06/2022] (iii) according to MAS Notice FHC-N637 and MAS Notice FHC-N133, may be used to satisfy the capital adequacy requirement of a designated financial holding company; [Act 35 of 2024 wef 27/11/2024] (iv) according to MAS Notice 133, may be included as Tier 1 Capital of a local licensed insurer for the purpose of section 17 of the Insurance Act 1966; [Act 35 of 2024 wef 27/11/2024] “designated financial holding company” means a financial holding company that is designated under section 4 of the Financial Holding Companies Act 2013; [Act 35 of 2024 wef 27/11/2024] “full banking licence” has the meaning given by the Banking (Fees) Notification; “local licensed insurer” means an insurer that is for the time being licensed under section 11 of the Insurance Act 1966, and that is incorporated, formed or established in Singapore; [Act 35 of 2024 wef 27/11/2024] “MAS Notice FHC-N133” means the notice commonly known as MAS Notice FHC-N133 that is issued by the Monetary Authority of Singapore under section 36(1) of the Financial Holding Companies Act 2013, and includes any notice that replaces it; [Act 35 of 2024 wef 27/11/2024] “MAS Notice FHC-N637” means the notice commonly known as MAS Notice FHC-N637 that is issued by the Monetary Authority of Singapore under sections 3(1), 36(1), 37(1), 38(2) and 60(1) of the Financial Holding Companies Act 2013, and includes any notice that replaces it; [Act 18 of 2022 wef 30/06/2022] [Act 35 of 2024 wef 27/11/2024] “MAS Notice 133” means the notice commonly known as MAS Notice 133 that is issued by the Monetary Authority of Singapore under sections 17 and 154(4) of the Insurance Act 1966, and includes any notice that replaces it; [Act 35 of 2024 wef 27/11/2024] “MAS Notice 637” means the notice commonly known as MAS Notice 637 that is issued by the Monetary Authority of Singapore pursuant to sections 10(2), 10A(1), 10B(1) and 65(2) of the Banking Act 1970, and includes any notice that replaces it; [Act 35 of 2024 wef 27/11/2024] “subsidiary”, in relation to a designated financial holding company, has the meaning given by section 5 of the Companies Act 1967, except that any reference to “corporation” in that provision is to be construed as if the term did not exclude a co-operative society. [10O [37/2014; 5/2016; 41/2020] [Act 35 of 2024 wef 27/11/2024]


document_id: ita-1947
provision_ref: s10J
chapter: PART 3 - IMPOSITION OF INCOME TAX
section: 10J
title: Tax treatment for trading stock appropriated for non‑trade or capital purpose
content:
10J. —(1) This section applies where, at any time on or after 16 November 2021, a person carrying on a trade or business appropriates any trading stock of that trade or business for a purpose other than for sale or disposal in the ordinary course of any of the person’s trades or businesses in circumstances that give rise to a reasonable inference that the appropriation is permanent. [27/2021] (2) Without limiting the generality of the expression, a person appropriates trading stock for a purpose other than for sale or disposal in the ordinary course of any of the person’s trades or businesses if the person — ( a ) holds or uses the trading stock as a capital asset; or ( b ) donates the trading stock. [27/2021] (3) The following is treated for the purposes of this Act as the person’s income for the firstmentioned trade or business in subsection (1) for the year of assessment relating to the basis period in which the date of appropriation of the trading stock falls: ( a ) where the appropriation is by way of a donation of the trading stock that qualifies for a deduction under section 37(3)( b ), ( e ) or ( f ) for any year of assessment — an amount equal to the person’s cost of acquiring, making or constructing the trading stock; ( b ) in any other case — an amount equal to the open market value of the trading stock as at the date of the appropriation. [27/2021] (4) Section 14 applies for the purpose of ascertaining such part of the income mentioned in subsection (3) that is chargeable with tax under this Act, as if the trading stock were sold on the date of the appropriation. [27/2021] (5) Where this section applies, then the person must, at the time of lodgment of the person’s return of income for the year of assessment relating to the basis period in which the trading stock is appropriated, or such later time as the Comptroller may allow, give notice of the appropriation and specify the particulars of the appropriation in the form and manner specified by the Comptroller. [27/2021] (6) The Minister may by rules made under section 7, and subject to any condition specified in the rules — ( a ) exempt any person or class of persons from subsection (5); or ( b ) provide that subsection (5) does not apply in a particular case or class of cases. [27/2021] (7) Rules made for the purposes of subsection (6) may be made to take effect from (and including) 16 November 2021. [27/2021] (8) Where subsection (3) applies to a person for a year of assessment and that person has not been assessed accordingly in that year of assessment, any income arising because of that subsection is treated as the person’s income for the year of assessment in which the Comptroller discovers sufficient facts on which the Comptroller may reasonably conclude that there has been such appropriation. [27/2021] (9) In this section — “open market value”, in relation to any trading stock, means — ( a ) the amount that would be realised if the trading stock had been sold on the open market on the date of appropriation of the trading stock; or ( b ) where the Comptroller is satisfied by reason of the special nature of the trading stock that it is not practicable to determine the amount mentioned in paragraph ( a ), such other value as appears to the Comptroller to be reasonable in the circumstances; “trading stock”, in relation to a trade or business — ( a ) means property of any description (whether movable or immovable) — (i) that is sold in the ordinary course of trade or business; or (ii) that would be so sold if it were mature or if its manufacture, preparation or construction were complete; but ( b ) does not include any material used in the manufacture, preparation or construction of any property mentioned in paragraph ( a ). [10P [27/2021]


document_id: ita-1947
provision_ref: s10K
chapter: PART 3 - IMPOSITION OF INCOME TAX
section: 10K
title: Tax treatment for covered bond transactions
content:
10K. —(1) This section applies where — ( a ) an approved covered bond company derives income from any cover pool for covered bonds issued by a bank incorporated in Singapore (directly or through its overseas branch), being covered bonds that are issued in compliance with the MAS Notice during the period from 15 February 2023 to 31 December 2028 (both dates inclusive); and ( b ) the bank had transferred the cover pool to the approved covered bond company under a covered bond transaction entered into during that period, for the purpose of securing the bank’s liabilities under the covered bonds. (2) Despite any provision in this Act, if (and only if) the conditions prescribed by rules made under section 7 for the purposes of this section are complied with, then any income derived by the approved covered bond company from the cover pool is treated for the purposes of this Act as income of the bank (and not that of the approved covered bond company) for the year of assessment relating to the basis period in which the income is derived. (3) Rules made under section 7 for the purposes of this section may provide for the deduction of expenses, allowances and losses otherwise than in accordance with this Act. (4) In this section — “approved covered bond company” means a company incorporated and resident in Singapore, that is — ( a ) incorporated principally to enter into a covered bond transaction with a bank incorporated in Singapore that issues (directly or through its overseas branch) covered bonds; and ( b ) approved by the Minister or an authorised body for the purposes of this section; “cover pool”, in relation to any covered bonds, means the pool of assets against which the covered bonds are collateralised; “covered bond” means any bond, note or other debenture, where payment of the liabilities to the holder thereof and any liabilities arising from the enforcement of the rights of the holder, is — ( a ) secured by a cover pool; and ( b ) recoverable from the issuer of the bond, note or debenture, regardless of whether the cover pool is sufficient to pay off such liabilities; “covered bond transaction” means — ( a ) the issue of any covered bonds; and ( b ) the transfer, by the issuer of the covered bonds, of the cover pool for those covered bonds to another entity for the purpose of securing the liabilities of the issuer under those covered bonds; “MAS Notice” means the applicable notice of the Monetary Authority of Singapore relating to the issuance of covered bonds given under section 55 of the Banking Act 1970; “overseas branch”, in relation to a bank incorporated in Singapore, means a branch of the bank situated outside Singapore. [Act 30 of 2023 wef 15/02/2023]


document_id: ita-1947
provision_ref: s10L
chapter: PART 3 - IMPOSITION OF INCOME TAX
section: 10L
title: Gains from the sale of foreign assets
content:
10L. —(1) Despite anything in this Act, gains from the sale or disposal by an entity (called in this section the seller entity) of a relevant group of any movable or immovable property situated outside Singapore at the time of such sale or disposal or any rights or interest thereof (called in this section a foreign asset), that are received in Singapore from outside Singapore, are treated as income chargeable to tax under section 10(1)( g ) for the year of assessment relating to the basis period in which the gains are received in Singapore. (2) Subsection (1) only applies if — ( a ) the gains would not otherwise be chargeable to tax as income under section 10(1); or ( b ) the gains would otherwise be exempt from tax under this Act. (3) Subsection (1) applies only to gains from a sale or disposal of a foreign asset that occurs on or after 1 January 2024. (4) In this section, unless the circumstances require otherwise, the time when the foreign asset vests in the buyer or transferee under the law governing the sale or disposal, is treated as the time of the sale or disposal of the foreign asset. (5) In this section — ( a ) an entity is a member of a group if its assets, liabilities, income, expenses and cash flows — (i) are included in the consolidated financial statements of the parent entity of the group; or (ii) are excluded from the consolidated financial statements of the parent entity of the group solely on size or materiality grounds or on the grounds that the entity is held for sale; and ( b ) a group is a relevant group if — (i) the entities of the group are not all incorporated, registered or established in a single jurisdiction; or (ii) any entity of the group has a place of business in more than one jurisdiction. (6) Subsection (1) does not apply to the prescribed percentage of gains from the sale or disposal of any qualifying intellectual property right as defined in section 43X(13) that are received in Singapore from outside Singapore. (7) In subsection (6), the prescribed percentage is the percentage of the qualifying intellectual property income (as defined in section 43X(13)) mentioned in paragraph ( c ), that would have qualified for the concessionary rate of tax under section 43X — ( a ) had the seller entity been approved as an approved company under that section on 1 January 2024 and its tax relief period under that section had included the basis period in which the sale or disposal occurred; ( b ) had the seller entity made an election in respect of the qualifying intellectual property right under section 43X(7) for the year of assessment for that basis period; and ( c ) had qualifying intellectual property income been derived from that qualifying intellectual property right in that basis period. (8) Subsection (1) does not apply to the gains from a sale or disposal of a foreign asset (not being an intellectual property right) that is — ( a ) carried out as part of, or incidental to, the business activities of a prescribed financial institution; ( b ) carried out as part of, or incidental to, the business activities or operations of an entity, being activities or operations from which the entity derives income that is exempt from tax, or that is taxed at a concessionary rate of tax, under section 13A, 13E, 13P, 43C, 43E, 43I, 43J, 43L, 43N, 43P, 43Q, 43R or 43U for the year of assessment for the basis period in which the sale or disposal occurred; ( c ) carried out as part of, or incidental to, the business activities or operations of an entity, being activities or operations from which the entity derives income that is exempt from tax, or that is taxed at a concessionary rate of tax, under Part 2, 3 or 4 of the Economic Expansion Incentives (Relief from Income Tax) Act 1967 for the year of assessment for the basis period in which the sale or disposal occurred; or ( d ) carried out by an entity that is an excluded entity in the basis period in which the sale or disposal occurred. (9) For the purpose of subsection (1), the following amounts of gains from the sale or disposal of any foreign asset are treated as received in Singapore from outside Singapore: ( a ) any amount from such gains that is remitted to, or transmitted or brought into, Singapore; ( b ) any amount from such gains that is applied in or towards satisfaction of any debt incurred in respect of a trade or business carried on in Singapore; ( c ) any amount from such gains that is applied to the purchase of any movable property which is brought into Singapore. (10) For the purpose of subsection (1), where the sale or disposal of a foreign asset by the seller entity was at a price less than the open‑market price for the foreign asset, the Comptroller may treat the following amount as the amount of the gains received in Singapore from outside Singapore: where — ( a ) A is the amount of the gains actually received in Singapore from outside Singapore; ( b ) B is the open-market price for the foreign asset; and ( c ) C is the actual price for the sale or disposal of the foreign asset. (11) In subsection (10), the open-market price for a foreign asset is either — ( a ) the price which the foreign asset could have been sold for in the open market on the date of its sale or disposal; or ( b ) where the Comptroller is satisfied by reason of the special nature of the foreign asset that it is not practicable to determine the price mentioned in paragraph ( a ), such other value as appears to the Comptroller to be reasonable in the circumstances. (12) Subject to subsection (13), in ascertaining the amount of any gains chargeable to tax under subsection (1), there is to be deducted — ( a ) any expenditure incurred by the seller entity to acquire, create or improve the foreign asset (including any expenditure that would be deductible under section 14(1)( a ) if the foreign asset were capital employed in acquiring income), to protect or preserve the value of the foreign asset, or to sell or dispose of the foreign asset; and ( b ) any loss incurred by the seller entity from the sale or disposal of any other foreign asset — (i) where, had the sale or disposal resulted in gains (after deducting any expenditure under paragraph ( a )) and all of those gains had been received in Singapore, they would have been chargeable to tax under subsection (1); and (ii) to the extent it has not already been deducted against any gains chargeable to tax under subsection (1). (13) The following are not deductible under subsection (12): ( a ) any expenditure deducted under this Act against any other income (whether or not chargeable to or exempt from tax); ( b ) capital expenditure computed by the following formula: where — (i) D is the amount of capital expenditure for which any allowance (including any balancing allowance) is made under this Act against any other income (whether or not chargeable to or exempt from tax); and (ii) E is the amount of any balancing charge (or similar charge) made under this Act on the sale or disposal of the foreign asset. (14) Where not all the gains from the sale or disposal of a foreign asset are received in Singapore in the same basis period, a portion of the amount deductible under subsection (12)( a ) as the Comptroller considers reasonable is deductible for each basis period in which any such gains are received in Singapore. (15) In this section, the situation of property, and any right or interest therein, is determined in accordance with the following provisions: ( a ) any immovable property, or any right or interest in immovable property, is situated where the immovable property is physically located; ( b ) any tangible movable property, or any right or interest in such property, that is not the subject of any other paragraph in this subsection, is situated where the tangible movable property is physically located; ( c ) a ship or aircraft, or any right or interest in a ship or aircraft, is situated where the owner, or the person entitled to the right or interest, is resident; ( d ) a secured or unsecured debt (other than a judgment debt or securities), or any right or interest in such secured or unsecured debt, is situated where the creditor is resident; ( e ) a judgment debt, or any right or interest in a judgment debt, is situated where the judgment is recorded; ( f ) any shares, equity interests or securities issued by any municipal or governmental authority, or by any body created by such authority, or any right or interest in such shares, equity interests or securities, are situated where that authority is established; ( g ) subject to paragraph ( f ), any shares in or securities issued by a company, or any right or interest in such shares or securities, are situated where the company is incorporated; ( h ) subject to paragraph ( f ), any equity interests in any entity which is not a company, or any right or interest in such equity interests, are situated where the operations of the entity are principally carried out; ( i ) subject to paragraph ( f ) (and despite paragraphs ( g ) and ( h )), any registered shares, equity interests or securities, or any right or interest in any registered shares, equity interests or securities, are situated where the shares, equity interests or securities are registered or, if registered in more than one register, where the principal register is situated; ( j ) goodwill relating to a trade, business or profession is situated where the trade, business or profession is principally carried on; ( k ) any intellectual property right, or any licence or other right in respect of any intellectual property right, is situated where the owner of the intellectual property right, licence or right is resident; ( l ) any intangible movable property, or any right or interest in any intangible movable property, that is not the subject of any paragraph in this subsection, is situated where the ownership rights in respect of the property, right or interest would be primarily enforceable. (16) In this section — “consolidated financial statements” means financial statements prepared by an entity in accordance with generally accepted accounting standards, in which the assets, liabilities, income, expenses and cash flows of the entity, and the entities in which it has a controlling interest, are presented as those of a single economic unit; “controlling interest”, in relation to an entity, means an equity interest in the entity such that the holder of the interest is required by the law or a regulatory body of the jurisdiction it is resident in, to consolidate in its financial statements the assets, liabilities, income, expenses and cash flows of the entity on a line-by-line basis in accordance with generally accepted accounting standards; “debt securities” has the meaning given by section 43H(4); “entity” means — ( a ) any legal person (including a limited liability partnership) but not an individual; ( b ) a general partnership or limited partnership; or ( c ) a trust; “equity interest”, in relation to an entity, means an interest that carries rights to the profits, capital or reserves of the entity and is accounted for as equity under generally accepted accounting standards; “excluded entity”, in relation to a basis period, means — ( a ) a pure equity-holding entity that satisfies all of the following conditions in that basis period: (i) the entity submits to a public authority any return, statement or account required under the written law under which it is incorporated or registered, being a return, statement or account which it is required by that law to submit to that authority on a regular basis; (ii) the operations of the entity are managed and performed in Singapore (whether by its employees or by other persons where the activities performed by such other persons for the entity are subject to the direct and effective control of the entity); (iii) the entity has adequate human resources and premises in Singapore to carry out the operations of the entity; or ( 


document_id: ita-1947
provision_ref: s11
chapter: PART 3 - IMPOSITION OF INCOME TAX
section: 11
title: Ascertainment of income of clubs, trade associations, etc.
content:
11. —(1) A body of persons, whether corporate or unincorporate, that carries on a club or similar institution and receives from its members not less than half of its gross receipts on revenue account (including entrance fees and subscriptions) is not deemed to carry on a business; but where less than half of such gross receipts are received from members, the whole of the income from transactions both with members and others (including entrance fees and subscriptions) is deemed to be receipts from a business, and the body of persons is chargeable in respect of the profits therefrom. (2) Where a body of persons, whether corporate or unincorporate, carries on a trade or professional association in such circumstances that more than half of its receipts by way of entrance fees and subscriptions from Singapore members are claimed or claimable as allowable deductions for the purposes of section 14 — ( a ) the body of persons is deemed to carry on a business; ( b ) the whole of its income from transactions with Singapore members and persons who are not members (including entrance fees and subscriptions) is deemed to be receipts from a business; and ( c ) the body of persons is chargeable in respect of the profits from the business. (3) For the purposes of subsection (2), “body of persons” includes a company limited by guarantee approved by the Minister or such person as the Minister may appoint, subject to such conditions as the Minister or appointed person may impose. (4) In this section — “members”, in relation to a body of persons, means those persons who are entitled to vote at a general meeting of the body at which effective control is exercised over its affairs; “Singapore members” means members that are — ( a ) persons, other than companies, resident in Singapore; ( b ) companies incorporated in Singapore (excluding branches or offices located outside Singapore); or ( c ) in the case of companies incorporated outside Singapore, the branches or offices of the companies located within Singapore.


document_id: ita-1947
provision_ref: s12
chapter: PART 3 - IMPOSITION OF INCOME TAX
section: 12
title: Sources of income
content:
12. Trading operations carried on partly in Singapore —(1) Where a non‑resident person carries on a trade or business of which only part of the operations is carried on in Singapore, the gains or profits of the trade or business are deemed to be derived from Singapore to the extent to which such gains or profits are not directly attributable to that part of the operations carried on outside Singapore. Non‑resident shipping and air transport (2) Where a non‑resident person carries on — ( a ) the business of shipowner or charterer; or ( b ) the business of air transport, and any ship or aircraft owned or chartered by the non‑resident person calls at a port, an aerodrome or an airport in Singapore, the non‑resident person’s full profits arising from the carriage of passengers, mail, livestock or goods shipped, or loaded into an aircraft, in Singapore are deemed to accrue in Singapore. (2A) Subsection (2) does not apply to passengers, mail, livestock or goods which are brought to Singapore solely for transhipment, or for transfer from one aircraft to another or from an aircraft to a ship or from a ship to an aircraft. (2B) In subsections (2) and (2A), “ship” has the meaning given by section 2(1) of the Merchant Shipping Act 1995. [2/2016] Cable or wireless undertakings (3) Where a non‑resident person carries on in Singapore the business of transmitting messages by cable or by any form of wireless apparatus, the non‑resident person’s full profits arising from the transmission in Singapore of any such messages, whether originating in Singapore or elsewhere, to places outside Singapore are deemed to accrue in Singapore. Employment exercised in Singapore (4) The gains or profits from any employment exercised in Singapore are deemed to be derived from Singapore whether the gains or profits from such employment are received in Singapore or not. Employment exercised outside Singapore on behalf of Government (5) The gains or profits from any employment exercised outside Singapore on behalf of the Government by any individual in the discharge of governmental functions are deemed to be derived from Singapore except where such individual is not a citizen or a resident of Singapore. Interest, etc. (6) There is deemed to be derived from Singapore — ( a ) any interest, commission, fee or any other payment in connection with any loan or indebtedness or with any arrangement, management, guarantee, or service relating to any loan or indebtedness which is — (i) borne, directly or indirectly, by a person resident in Singapore or a permanent establishment in Singapore except in respect of any business carried on outside Singapore through a permanent establishment outside Singapore or any immovable property situated outside Singapore; or (ii) deductible against any income accruing in or derived from Singapore; or ( b ) any income derived from loans where the funds provided by such loans are brought into or used in Singapore. (6AA) To avoid doubt, the reference to interest in subsection (6) is, in the case of an arrangement that is a finance lease of any machinery or plant that is treated as sold by the lessor to the lessee pursuant to regulations made under section 10C(1), a reference to the part of any payment by the lessee that is income of the lessor under section 10C(2A). [45/2018] (6A) Subsection (6) does not apply to any payment for — ( a ) any arrangement, management or service relating to any loan or indebtedness, where such arrangement, management or service is performed outside Singapore for or on behalf of a person resident in Singapore or a permanent establishment in Singapore by a non‑resident person who — (i) in the event the non‑resident person is not an individual, is not incorporated, formed or registered in Singapore; and (ii) in any event — (A) does not by himself, herself or itself or in association with others, carry on a business in Singapore and does not have a permanent establishment in Singapore; or (B) carries on a business in Singapore (by himself, herself or itself or in association with others) or has a permanent establishment in Singapore, but the arrangement, management or service is not performed through that business carried on in Singapore or that permanent establishment; and ( b ) any guarantee relating to any loan or indebtedness, where the guarantee is provided for or on behalf of a person resident in Singapore or a permanent establishment in Singapore by a guarantor who is a non‑resident person who — (i) in the event the non‑resident person is not an individual, is not incorporated, formed or registered in Singapore; and (ii) in any event — (A) does not by himself, herself or itself or in association with others, carry on a business in Singapore and does not have a permanent establishment in Singapore; or (B) carries on a business in Singapore (by himself, herself or itself or in association with others) or has a permanent establishment in Singapore, but the giving of the guarantee is not effectively connected with that business carried on in Singapore or that permanent establishment. Royalties, etc. (7) There is deemed to be derived from Singapore — ( a ) royalty or other payment in one lump sum or otherwise for the use of or the right to use any movable property; ( b ) any payment for the use of or the right to use scientific, technical, industrial or commercial knowledge or information or for the rendering of assistance or service in connection with the application or use of such knowledge or information; ( c ) any payment for the management or assistance in the management of any trade, business or profession; or ( d ) rent or other payment under any agreement or arrangement for the use of any movable property, which is borne, directly or indirectly, by a person resident in Singapore or a permanent establishment in Singapore (except in respect of any business carried on outside Singapore through a permanent establishment outside Singapore) or which is deductible against any income accruing in or derived from Singapore. (7AA) Any payment by the lessee to the lessor under a finance lease of any machinery or plant that is not treated as sold by the lessor to the lessee pursuant to regulations made under section 10C(1), is treated as a payment under an agreement or arrangement for the use of movable property under subsection (7)( d ). [45/2018] (7AB) Subsection (7)( d ) excludes any rent or other payments under any agreement or arrangement for the use outside Singapore of any tangible movable property, where — ( a ) such use is for or incidental to the purpose of a trip to a country outside Singapore that is made for the purpose of a trade, business, profession or vocation carried on — (i) in Singapore by a person resident in Singapore; or (ii) through a permanent establishment in Singapore; or ( b ) such use is for or incidental to the purpose of maintaining a representative office outside Singapore that is maintained for the purpose of a trade, business, profession or vocation carried on in Singapore. [32/2019] (7A) Subsection (7) does not apply to any payment for — ( a ) the rendering of assistance or service in connection with the application or use of scientific, technical, industrial or commercial knowledge or information, where such rendering of assistance or service is performed outside Singapore for or on behalf of a person resident in Singapore or a permanent establishment in Singapore by a non‑resident person who — (i) in the event the non‑resident person is not an individual, is not incorporated, formed or registered in Singapore; and (ii) in any event — (A) does not by himself, herself or itself or in association with others, carry on a business in Singapore and does not have a permanent establishment in Singapore; or (B) carries on a business in Singapore (by himself, herself or itself or in association with others) or has a permanent establishment in Singapore, but the rendering of assistance or service is not performed through that business carried on in Singapore or that permanent establishment; ( b ) the management or assistance in the management of any trade, business or profession, where such management or assistance is performed outside Singapore for or on behalf of a person resident in Singapore or a permanent establishment in Singapore by a non‑resident person who — (i) in the event the non‑resident person is not an individual, is not incorporated, formed or registered in Singapore; and (ii) in any event — (A) does not by himself, herself or itself or in association with others, carry on a business in Singapore and does not have a permanent establishment in Singapore; or (B) carries on a business in Singapore (by himself, herself or itself or in association with others) or has a permanent establishment in Singapore, but the management or assistance is not performed through that business carried on in Singapore or that permanent establishment; and ( c ) the use of or the right to use software, information or digitised goods, not being a right to commercially exploit in one form or another the copyright in such software, information or digitised goods such as the right to — (i) reproduce, modify or adapt, and distribute the software, information or digitised goods; or (ii) prepare a derivative work based on the software, information or digitised goods for distribution. [37/2014] (7B) In subsection (7A)( c ) — “digitised goods” means text, images or sounds that are transferred through a handphone, fixed‑line phone, cable network, satellite, the Internet or other forms of electronic transmission, but does not include software; “information” means — ( a ) any information in any newspaper or magazine article or report, including financial and business data (such as foreign exchange, stock and property data), and other proprietary data; and ( b ) any information obtained solely for research purposes. [37/2014] Commission or other payment of licensed international market agent (8) There is deemed to be derived from Singapore any commission or other payment paid to a licensed international market agent for organising or conducting a casino marketing arrangement with a casino operator in Singapore which is — ( a ) borne, directly or indirectly, by a person resident in Singapore or a permanent establishment in Singapore except in respect of any business carried on outside Singapore through a permanent establishment outside Singapore; or ( b ) deductible against any income accruing in or derived from Singapore. (9) In this section, “casino marketing arrangement”, “casino operator” and “international market agent” have the meanings given by the Casino Control Act 2006. (10) In this section, “finance lease” has the meaning given by section 10C. [45/2018]


document_id: ita-1947
provision_ref: s13
chapter: PART 4 - EXEMPTION FROM INCOME TAX
section: 13
title: Exempt income
content:
13. —(1) There is exempt from tax — ( a ) subject to subsection (2) and such conditions as may be prescribed by regulations, the interest derived from — (i) any qualifying debt securities issued during the period from 28 February 1998 to 31 December 2028 (both dates inclusive) by any person who is not resident in Singapore and who does not have any permanent establishment in Singapore; and [Act 30 of 2023 wef 30/10/2023] (ii) any qualifying debt securities issued during the period from 27 February 1999 to 31 December 2028 (both dates inclusive) by any person who is not resident in Singapore and who carries on any operation in Singapore through a permanent establishment in Singapore where the funds used by that person to acquire the qualifying debt securities are not obtained from the operation; [Act 30 of 2023 wef 30/10/2023] ( aa ) subject to subsection (2A) and such conditions as may be prescribed by regulations, the discount from any qualifying debt securities issued during the period from 17 February 2006 to 31 December 2028 (both dates inclusive), by — (i) any person who is not resident in Singapore and who does not have any permanent establishment in Singapore; or (ii) any person who is not resident in Singapore and who carries on any operation in Singapore through a permanent establishment in Singapore where the funds used by that person to acquire the qualifying debt securities are not obtained from the operation; [Act 30 of 2023 wef 30/10/2023] ( ab ) subject to subsection (2B) and such conditions as may be prescribed by regulations, 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 (both dates inclusive), to any person — (i) who is not resident in Singapore and who does not have any permanent establishment in Singapore; and (ii) who is not resident in Singapore and who carries on any operation in Singapore through a permanent establishment in Singapore where the funds used by that person to acquire the qualifying debt securities are not obtained from the operation; [Act 30 of 2023 wef 30/10/2023] ( b ) subject to subsections (2C) and (2D) and such conditions as may be prescribed by regulations — (i) the interest derived by any person from any qualifying project debt securities issued during the period from 1 November 2006 to 31 December 2025 (both dates inclusive); [Act 33 of 2022 wef 04/11/2022] (ii) the discount, early redemption fee and redemption premium derived by any person from any qualifying project debt securities issued during the period from 15 February 2007 to 31 December 2025 (both dates inclusive); and [Act 33 of 2022 wef 04/11/2022] [Act 30 of 2023 wef 15/02/2023] (iii) such other income derived by any person that is directly attributable to qualifying project debt securities issued on or after a prescribed date, as may be prescribed by regulations; ( ba ) subject to subsection (2F) and such conditions as may be prescribed by regulations, the early redemption fee and redemption premium from any qualifying debt securities issued during the period from 15 February 2007 to 31 December 2028 (both dates inclusive) that are derived by any person — (i) who is not resident in Singapore and who does not have any permanent establishment in Singapore; and (ii) who is not resident in Singapore and who carries on any operation in Singapore through a permanent establishment in Singapore where the funds used by that person to acquire the qualifying debt securities are not obtained from the operation; [Act 30 of 2023 wef 15/02/2023] [Act 30 of 2023 wef 30/10/2023] ( bb ) subject to subsection (2G) and such conditions as may be prescribed by regulations, such other income directly attributable to qualifying debt securities issued on or after a prescribed date as may be prescribed by regulations, that is derived by any person — (i) who is not resident in Singapore and who does not have any permanent establishment in Singapore; and (ii) who is not resident in Singapore and who carries on any operation in Singapore through a permanent establishment in Singapore where the funds used by that person to acquire the qualifying debt securities are not obtained from the operation; ( bc ) subject to subsections (2H) and (2HA) and such conditions as may be prescribed by regulations — (i) the interest, discount, early redemption fee and redemption premium derived by any person from any qualifying debt securities (excluding Singapore Government Securities) which — (A) are issued during the period from 16 February 2008 to 31 December 2018 (both dates inclusive); (B) have an original maturity of not less than 10 years; (C) either — (CA) if they are issued before 28 June 2013, cannot be redeemed, called, exchanged or converted within 10 years from the date of their issue; or (CB) if they are issued on or after 28 June 2013, cannot have their tenure shortened to less than 10 years from the date of their issue, except under such circumstances as may be prescribed by regulations; and (D) cannot be re‑opened with a resulting tenure of less than 10 years to the original maturity date; and [Act 30 of 2023 wef 15/02/2023] (ii) such other income, as may be prescribed by regulations, derived by any person that is directly attributable to qualifying debt securities (excluding Singapore Government Securities) which — (A) are issued on or after such date as may be prescribed by regulations; (B) have an original maturity of not less than 10 years; (C) cannot have their tenure shortened to less than 10 years from the date of their issue, except under such circumstances as may be prescribed by regulations; and (D) cannot be re‑opened with a resulting tenure of less than 10 years to the original maturity date; ( bd ) subject to subsection (2I) and such conditions as may be prescribed by regulations, any amount payable to any person from any Islamic debt securities — (i) which are qualifying debt securities and issued during the period from 16 February 2008 to 31 December 2018 (both dates inclusive); and (ii) the amount payable from which is not deductible against any income of the issuer of those securities accruing in or derived from Singapore; ( c ) the official emoluments payable from Commonwealth funds to members of Commonwealth forces, and to persons in the service of a Commonwealth government, in Singapore, in respect of their offices under such Commonwealth government, if such emoluments are subject to income tax in such Commonwealth country; ( d ) any gains or profits arising from sums standing in the SRS account of any SRS member except where section 10G(13) applies; ( e ) the income of any institution, authority, person or fund specified in the First Schedule; ( f ) the income of — (i) any bona fide friendly society approved by the Comptroller; (ii) any co‑operative society registered under the Co‑operative Societies Act 1979; ( g ) [ Deleted by Act 29 of 2012 ] ( h ) any sum received by way of commutation of pensions granted under any written law relating to pensions in Singapore or, in the case of any other pension scheme, any sum received by way of commutation of pensions by an individual under such a scheme to the extent of such sum as the Comptroller may determine relating to the period of employment of that individual with the employer before 1 January 1993; ( i ) sums received by way of death gratuities or as consolidated compensation for death or injuries; ( j ) sums standing to the account of an individual in the Central Provident Fund or any approved pension or provident fund designated by the Minister under section 39(8) or withdrawn therefrom; ( ja ) sums standing to the account of an individual in an approved pension or provident fund (other than the Central Provident Fund or any approved pension or provident fund designated by the Minister under section 39(8)) to the extent of the sum standing to his or her account as at 31 December 1992 and of such interest on that sum as the Comptroller may determine for the period 1 January 1993 to the date of his or her retirement (both dates inclusive) and which are withdrawn only upon or after his or her retirement in accordance with the rules or constitution of the fund; ( jb ) any retiring gratuity received by an individual from an approved pension or provident fund (other than the Central Provident Fund or any approved pension or provident fund designated by the Minister under section 39(8)) to the extent of such amount of the gratuity as the Comptroller may determine relating to the period of employment of that individual with the employer before 1 January 1993; ( jc ) [ Deleted by Act 32 of 2019 ] ( jd ) any voluntary contribution in cash made in 2013 or any subsequent year by a person of a description prescribed by the Minister, to the medisave account maintained under the Central Provident Fund Act 1953 of a self‑employed individual, up to — (i) $1,500 per year (for contributions made before 2018); or (ii) $2,730 per year (for contributions made in 2018 and in each subsequent year), less any previous contribution that is made to the same medisave account in the same year by the person of the prescribed description in the person’s capacity as an employer (if applicable), and that is not treated as income under section 10B(5A); ( k ) sums derived from, or received in, Singapore as pensions, being — (i) wound or disability pensions granted to members or former members of a Commonwealth force; (ii) pensions granted to dependent relatives of any such member killed on war service or who died as a result of war service injuries; or (iii) wound or disability pensions granted to members or former members of civil defence organisations; ( l ) pensions granted to any person under the provisions of the Widows’ and Orphans’ Pension Act 1904 or under any approved scheme within the meaning of that Act and pensions paid, by or out of any approved pension or provident fund or society, to or for the benefit of the widow or children of a deceased contributor to such fund or society; ( m ) the income of any trade union registered under the Trade Unions Act 1940 insofar as such income is not derived from a trade or business carried on by such trade union; ( ma ) the income of any platform work association registered under Part 3 of the Platform Workers Act 2024 which is not derived from a trade or business carried on by the platform work association; [Act 30 of 2024 wef 01/11/2024] ( n ) any income derived in the basis period for any year of assessment before the year of assessment 2018 by any person who is not resident in Singapore from trading in Singapore through consignees in any of the following commodities produced outside Singapore: (i) rubber; (ii) copra; (iii) pepper; (iv) tin; (v) tin‑ore; (vi) gambia; (vii) sago flour; (viii) cloves; ( o ) [ Deleted by Act 32 of 2019 ] ( oa ) payments liable to be made on or after 17 February 2012 to a person not resident in Singapore (excluding any permanent establishment in Singapore) for the charter of any ship (as defined in section 2(1) of the Merchant Shipping Act 1995) under any agreement or arrangement; ( p ) [ Deleted by Act 34 of 2016 ] ( q ) the investment income of any approved pension or provident fund or society; ( r ) the income derived during the period from 3 May 2002 to 31 March 2023 (both dates inclusive) by an individual not resident in Singapore from acting as an arbitrator, and for this purpose, “arbitrator” means an individual appointed for any arbitration which is governed by the Arbitration Act 2001 or the International Arbitration Act 1994 or would have been governed by either of those Acts had the place of arbitration been Singapore; [Act 33 of 2022 wef 04/11/2022] ( ra ) the income derived during the period from 1 April 2015 to 31 March 2023 (both dates inclusive) by a qualifying mediator who is not resident in Singapore, for providing the services of a mediator for 


document_id: ita-1947
provision_ref: s13A
chapter: PART 4 - EXEMPTION FROM INCOME TAX
section: 13A
title: Exemption of shipping profits
content:
13A. —(1) There is exempt from tax the income of a shipping enterprise derived or deemed to be derived from the operation of Singapore ships or foreign ships as hereinafter provided. (1A) For income derived before 19 February 2020, such exemption in respect of Singapore ships is backdated to the date of provisional registration if the owner has subsequently obtained a permanent certificate of registry in respect of the ship. [41/2020] (1B) For the year of assessment 2009 and subsequent years of assessment, the income of a shipping enterprise mentioned in this section includes income derived from foreign exchange and risk management activities which are carried out in connection with and incidental to the operation by the shipping enterprise of Singapore ships. (1C) The income of a shipping enterprise mentioned in this section includes income derived at any time in the period between 22 February 2010 and 23 February 2015 (both dates inclusive) by the shipping enterprise from the provision of ship management services to any qualifying company in respect of Singapore ships owned or operated by the qualifying company. [2/2016] (1CA) The income of a shipping enterprise mentioned in this section includes income derived on or after 1 June 2011 by the shipping enterprise from — ( a ) the sale of a Singapore ship or a provisionally registered ship; ( b ) the assignment to another of all its rights as the buyer under a contract for the construction of a ship that, at the time of the assignment, is intended to be registered or is provisionally registered under the Merchant Shipping Act 1995; or ( c ) the sale of all of the issued ordinary shares in a special purpose company of the shipping enterprise where, at the time of the sale of the shares, the special purpose company — (i) owns a Singapore ship or a provisionally registered ship; or (ii) is the buyer under a contract for the construction of a ship that, at that time, is intended to be registered or is provisionally registered under the Merchant Shipping Act 1995, and the special purpose company does not at that time own any foreign ship. [2/2016; 41/2020] (1CB) The income referred to in subsection (1CA) does not include — ( a ) income of the shipping enterprise derived before 12 December 2018 as a lessor of a ship under a finance lease that is treated as a sale under section 10C; or ( b ) income of the shipping enterprise that is derived as part of a business of trading in ships or of constructing ships for sale. [41/2020] (1CC) [ Deleted by Act 41 of 2020 ] (1CD) The income of a shipping enterprise mentioned in this section includes income derived on or after 24 February 2015 by the shipping enterprise from providing prescribed ship management services to a qualifying company in respect of Singapore ships owned or operated by the qualifying company. [2/2016] (1CE) The income of a shipping enterprise mentioned in this section includes income derived on or after 24 February 2015 by the shipping enterprise from — ( a ) any mobilisation or holding of any ship used or to be used for offshore oil or gas activity outside the limits of the port of Singapore; or ( b ) the demobilisation of any ship after it has been so used, where the mobilisation, holding or demobilisation is undertaken by the shipping enterprise itself using a Singapore ship. [2/2016] (1CF) The income of a shipping enterprise mentioned in this section includes income derived on or after 24 February 2015 by the shipping enterprise from — ( a ) any mobilisation or holding of a Singapore ship owned or operated by the shipping enterprise and used or to be used for offshore oil or gas activity outside the limits of the port of Singapore; or ( b ) the demobilisation of a Singapore ship owned or operated by the shipping enterprise after it has been so used. [2/2016] (1CG) The income of a shipping enterprise mentioned in this section includes income derived on or after 24 February 2015 by the shipping enterprise from the leasing of any container (other than finance leasing) carried out in connection with its operation of Singapore ships and that is incidental to such operation. [2/2016] (1CH) The income of a shipping enterprise mentioned in this section includes income derived on or after 25 March 2016 by the shipping enterprise from — ( a ) any mobilisation or holding of any ship used or to be used for offshore renewable energy activity (carried out before 19 February 2025), renewable energy activity (carried out on or after 19 February 2025), or offshore mineral activity, outside the limits of the port of Singapore; or [Act 25 of 2025 wef 19/02/2025] ( b ) the demobilisation of any ship after it has been so used, where the mobilisation, holding or demobilisation is undertaken by the shipping enterprise itself using a Singapore ship. [34/2016] (1CI) The income of a shipping enterprise mentioned in this section includes income derived on or after 25 March 2016 by the shipping enterprise from — ( a ) any mobilisation or holding of a Singapore ship owned or operated by the shipping enterprise and used or to be used for offshore renewable energy activity (carried out before 19 February 2025), renewable energy activity (carried out on or after 19 February 2025), or offshore mineral activity, outside the limits of the port of Singapore; or [Act 25 of 2025 wef 19/02/2025] ( b ) the demobilisation of a Singapore ship owned or operated by the shipping enterprise after it has been so used. [34/2016] (1CJ) The income of a shipping enterprise mentioned in this section includes the following income derived by it from foreign exchange and risk management activities that are carried out in connection with and incidental to an activity mentioned in subsection (1CH) or (1CI): ( a ) where the activity relates to offshore renewable energy activity — such income that is derived between 25 March 2016 and 18 February 2025 (both dates inclusive); ( b ) where the activity relates to renewable energy activity — such income that is derived on or after 19 February 2025; ( c ) where the activity relates to offshore mineral activity — such income that is derived on or after 25 March 2016. [Act 25 of 2025 wef 19/02/2025] (1CK) The income of a shipping enterprise mentioned in this section includes income derived on or after 29 December 2016, from foreign exchange and risk management activities that are carried out in connection with and incidental to any activity mentioned in subsection (1CD), (1CE) or (1CF). [34/2016] (1CL) The income of a shipping enterprise mentioned in this section includes income derived on or after 12 December 2018 by the shipping enterprise from foreign exchange and risk management activities that are carried out in connection with or incidental to the finance leasing of a Singapore ship for use outside the limits of the port of Singapore. [32/2019] (1CM) A reference to a Singapore ship in subsection (1), (1B), (1CD), (1CE), (1CF), (1CG), (1CH), (1CI) or (1CL) includes a provisionally registered ship. [41/2020] (1CN) Subsection (1CM) only applies to income derived in relation to the provisionally registered ship on or after 19 February 2020. [41/2020] (1D) This section does not apply to income of a shipping enterprise, being an international shipping enterprise approved under section 13E, derived in the basis period for the year of assessment 2012 or any subsequent year of assessment from the operation of foreign ships. (2) A shipping enterprise must maintain separate accounts for the income derived or deemed to be derived from the operation of each ship. [41/2020] (2A) Where expenses have been incurred by a shipping enterprise which are not directly attributable to a ship, the Comptroller may allocate as expenses such amounts as might reasonably and properly have been incurred in the normal course of its business in respect of such ship. [41/2020] (3) In determining the income of a shipping enterprise from the operation of ships — ( a ) the capital allowances provided under sections 16, 17, 18, 18B, 18C, 19, 19A, 20, 21 and 22 may only be made against the income exempt under this section, and the balance of such allowances is not available as a deduction against any other income; and ( b ) a loss incurred by a shipping enterprise in respect of any activity referred to in subsection (1), (1B), (1C), (1CD), (1CE), (1CF), (1CG), (1CH), (1CI), (1CJ), (1CK) or (1CL) for any basis period may only be deducted against the income from any activity referred to in any of those subsections, and the balance of such loss is not available as a deduction against any other income. [2/2016; 34/2016; 41/2020] [Act 25 of 2025 wef 08/12/2025] (3A) Where a shipping enterprise incurs a loss on any sale or assignment mentioned in subsection (1CA) in any basis period, that loss may only be deducted against the gains derived from another sale or assignment mentioned in subsection (1CA) in that same basis period, and the balance of the loss is not available as a deduction against any other income. (4) The Comptroller must for each year of assessment issue to a shipping enterprise a statement (to be included in a notice of any assessment served on the shipping enterprise under section 76) showing the amount of income derived from the operation of ships by the shipping enterprise; and Parts 17 and 18 (relating to assessments, objections and appeals) and any rules made under this Act apply, with the necessary modifications, as if such statement were a notice of assessment. [41/2020] (5) Subject to subsection (8) where any statement issued under subsection (4) has become final and conclusive, the amount of income shown in the statement does not form part of the statutory income of a shipping enterprise for the year of assessment to which the statement relates and is exempt from tax. (5A) [ Deleted by Act 19 of 2013 ] (6) [ Deleted by Act 19 of 2013 ] (7) A shipping enterprise must deliver to the Comptroller a copy of the accounts mentioned in subsection (2) made up to any date specified by the Comptroller whenever called upon to do so by written notice. (8) Despite subsections (1) to (7), where it appears to the Comptroller that any income of a shipping enterprise which has been exempted from tax ought not to have been so exempted for any year of assessment, the Comptroller may, at any time within 4 years after the expiry of that year of assessment, make such assessment or additional assessment upon the shipping enterprise as may appear to be necessary in order to make good any loss of tax. (9) Parts 17 and 18 (relating to assessments, objections and appeals) and any rules made under this Act apply, with the necessary modifications, as if an assessment under subsection (8) were a notice of assessment. (10) This section does not affect the operation of section 27 in ascertaining the income of a non‑resident person owning or operating ships. [41/2020] (11) Where — ( a ) income derived in the basis period for a year of assessment from the operation of a ship is exempt from tax under this section; and ( b ) in that or a subsequent basis period, the registry of the ship under the Merchant Shipping Act 1995 is closed, deemed closed or suspended, then the capital allowances in respect of that ship for the year of assessment of the basis period mentioned in paragraph ( b ) and subsequent years of assessment are to be calculated on the residue of expenditure or reducing value of the assets after taking into account the capital allowances provided for in sections 16, 17, 18, 18B, 18C, 19, 19A, 20, 21 and 22 for those years of assessment during which income derived from the operation of the ship was exempt from tax under this section, even if no claim for such allowances was made. [41/2020] (12) Subsections (3) and (11) have effect despite any other provisions of this Act. (13) Despite anything in this section, a shipping enterprise may at any time elect that its income derived or deemed to be derived from the operati


document_id: ita-1947
provision_ref: s13B
chapter: PART 4 - EXEMPTION FROM INCOME TAX
section: 13B
title: Assessment of income not entitled to exemption under section 43A, 43C, 43D or 43H
content:
13B. —(1) Despite section 13(1)( y ), where it appears to the Comptroller that any income of a person which has been exempted from tax under regulations made under section 43A, 43C, 43D or 43H, ought not to have been so exempted for any year of assessment, the Comptroller may, at any time within 4 years after the expiry of that year of assessment, make such assessment or additional assessment upon the person as may appear to be necessary in order to make good any loss of tax. (2) Parts 17 and 18 (relating to assessments, objections and appeals) and any rules made under this Act apply, with the necessary modifications, as if an assessment under subsection (1) were a notice of assessment.


document_id: ita-1947
provision_ref: s13C
chapter: PART 4 - EXEMPTION FROM INCOME TAX
section: 13C
title:
Exemption of income of trustee of trust fund arising from funds managed by fund manager in Singapore

content:
13C. —(1) There is exempt from tax such income as the Minister may by regulations prescribe of the trustee of any prescribed trust fund arising from funds managed in Singapore by any fund manager. (2) The Minister may by regulations — ( a ) make such transitional and saving provisions as the Minister may consider necessary or expedient in relation to the repeal of section 13C in force immediately before 1 September 2007; ( b ) provide for the determination of the amount of income of the trustee of any prescribed trust fund to be exempt from tax; and ( c ) make provision generally for giving full effect to or for carrying out the purposes of this section. (3) This section does not apply to — ( a ) a trustee of a trust fund that is constituted on or after 1 April 2014; or ( b ) a trustee of a trust fund that — (i) is constituted before 1 April 2014; and (ii) is not a prescribed trust fund at any time before that date. (4) This section does not apply to any income derived on or after 1 April 2014 except to the extent allowed by subsection (5). [37/2014] (5) This section continues to apply to income mentioned in subsection (1) of a trustee of a trust fund that is derived on or after 1 April 2014 and before the end of the basis period of that trustee in which that date falls, if — ( a ) the trustee has a basis period that ends on a date other than 31 March; and ( b ) the trustee makes an election, at the time of lodgment of the return of income for the year of assessment 2015 or 2016 (as the case may be), or such later time as the Comptroller may allow, to apply this section to such income. [37/2014]


document_id: ita-1947
provision_ref: s13D
chapter: PART 4 - EXEMPTION FROM INCOME TAX
section: 13D
title: Exemption of income of prescribed persons arising from funds managed by fund manager in Singapore
content:
13D. —(1) There is exempt from tax such income as the Minister may by regulations prescribe of any prescribed person arising from funds managed in Singapore — ( a ) for income derived on or before 31 December 2024 — by any fund manager; or ( b ) for income derived on or after 1 January 2025 — by a fund manager that satisfies the prescribed requirements. [Act 35 of 2024 wef 27/11/2024] (1A) Subsection (1) does not apply to any income of a prescribed person that is — ( a ) derived in the prescribed person’s capacity as a trustee of a pension or provident fund approved under section 5; ( b ) derived in the prescribed person’s capacity as a trustee of a designated unit trust referred to in section 35(14) in a basis period or part of a basis period for a year of assessment, where the person has elected under section 35(12) for that provision to apply to any of the person’s income in that basis period or that part of the basis period; ( c ) derived in the prescribed person’s capacity as a trustee of a real estate investment trust within the meaning of section 43(10); or ( d ) exempt from tax under section 13U. [2/2016] (2) Where — ( a ) income of any prescribed person, being a company, has been exempt from tax under subsection (1) in any year of assessment; and ( b ) a person (called in this section the relevant owner), either alone or together with the relevant owner’s associates, beneficially owns on the relevant day issued securities of the prescribed person the value of which is more than the prescribed percentage of the total value of all issued securities of the prescribed person on the relevant day, then the relevant owner is liable to pay to the Comptroller, in such manner and within such reasonable time as may be determined by the Comptroller, a penalty to be computed in accordance with the formula where A is the percentage which the value of the issued securities of the prescribed person beneficially owned on the relevant day by the relevant owner bears to the total value of all issued securities of the prescribed person on the relevant day; B is the amount of income of the prescribed person as reflected in the audited account of the prescribed person for the basis period relating to that year of assessment; and C is the tax rate specified in section 43(1)( a ) applicable to that year of assessment. (3) Subsection (2) does not apply to a relevant owner if — ( a ) the Comptroller permits the relevant owner to take steps to reduce the ownership of the issued securities by the relevant owner or the relevant owner’s associates within such period as the Comptroller may specify, being a period of no more than 3 months from the relevant day; and ( b ) by the end of the specified period, the value of the issued securities beneficially owned by the relevant owner together with the relevant owner’s associates is no more than the prescribed percentage of the total value of all issued securities of the prescribed person on the relevant day. (4) Where — ( a ) income of any prescribed person, being the trustee of a trust fund, has been exempt from tax under subsection (1) in any year of assessment; and ( b ) a person (called in this section the relevant beneficiary), either alone or together with the relevant beneficiary’s associates, beneficially owns on the relevant day any part of the trust fund the value of which is more than the prescribed percentage of the total value of the trust fund on the relevant day, then the relevant beneficiary is liable to pay to the Comptroller, in such manner and within such reasonable time as may be determined by the Comptroller, a penalty to be computed in accordance with the formula where A is the percentage which the value of the part of the trust fund beneficially owned on the relevant day by the relevant beneficiary bears to the total value of the trust fund on the relevant day; B is the amount of income of the prescribed person as reflected in the audited account of the prescribed person for the basis period relating to that year of assessment; and C is the tax rate specified in section 43(1)( c ) applicable to that year of assessment. (5) Subsection (4) does not apply to a relevant beneficiary if — ( a ) the Comptroller permits the relevant beneficiary to take steps to reduce the ownership of the trust fund by the relevant beneficiary or the relevant beneficiary’s associates within such period as the Comptroller may specify, being a period of no more than 3 months from the relevant day; and ( b ) by the end of the specified period, the value of the part of the trust fund beneficially owned by the relevant beneficiary together with the relevant beneficiary’s associates is no more than the prescribed percentage of the total value of the trust fund on the relevant day. (6) Despite subsections (2) and (4), where — ( a ) income of any prescribed person, being a company or the trustee of a trust fund, has been exempt from tax under subsection (1) in any year of assessment; ( b ) a person, either alone or together with the person’s associates, beneficially owns on the relevant day — (i) if the prescribed person is a company, any issued securities of the prescribed person; or (ii) if the prescribed person is the trustee of a trust fund, any part of the trust fund; and ( c ) the person mentioned in paragraph ( b ) is a non‑bona fide entity, then the person mentioned in paragraph ( b ) is not liable to pay the penalty mentioned in subsection (2) or (4); but a person (called in this section the liable person) who — ( d ) beneficially owns on the relevant day equity interests of the person mentioned in paragraph ( b ); and ( e ) is not himself, herself or itself a non‑bona fide entity, is liable to pay to the Comptroller, in such manner and within such reasonable time as may be determined by the Comptroller, a penalty to be computed in accordance with the formula specified in subsection (6A) if, and only if, the total of — ( f ) the value of the equity interests of the prescribed person or of the trust fund for which the prescribed person is the trustee (as the case may be) that are beneficially owned by the liable person on the relevant day; and ( g ) the value of the equity interests of the prescribed person or of the trust fund for which the prescribed person is the trustee (as the case may be) that are beneficially owned by the associates of the liable person on the relevant day, exceeds the prescribed percentage of the total value of all the equity interests of the prescribed person or of the trust fund (as the case may be) on that day. (6A) The formula for the penalty referred to in subsection (6) is as follows: where A is the percentage which the value of the equity interests of the prescribed person or of the trust fund for which the prescribed person is the trustee (as the case may be) beneficially owned on the relevant day by the liable person bears to the total value of all equity interests of the prescribed person or of the trust fund on the relevant day; B is the amount of income of the prescribed person as reflected in the audited account of the prescribed person for the basis period relating to that year of assessment; and C is the tax rate applicable to that year of assessment as specified in section 43(1)( a ) (if the prescribed person is a company) or 43(1)( c ) (if the prescribed person is a trustee of a trust fund). (6B) Subsection (3) or (5) (whichever is applicable) applies, with the necessary modifications, to the liable person as it applies to a relevant owner or relevant beneficiary as if the reference to subsection (2) or (4) (as the case may be) is a reference to subsection (6). (7) For the purposes of subsections (6)( d ), ( f ) and ( g ) and (6A), if — ( a ) a person beneficially owns (including by virtue of one or more applications of this subsection) equity interests of a person (called in this subsection a first level entity); and ( b ) the first level entity beneficially owns equity interests of another person (called in this subsection a second level entity), then the firstmentioned person is taken to beneficially own equity interests of the second level entity; and the percentage which the value of those equity interests bears to the total value of all equity interests of the second level entity is computed in accordance with the formula where A is the percentage which the value of equity interests of the first level entity beneficially owned by the firstmentioned person bears to the total value of all equity interests of the first level entity; and B is the percentage which the value of equity interests of the second level entity beneficially owned by the first level entity bears to the total value of all equity interests of the second level entity. (7A) Subsection (7) also has effect for the purpose of determining, under subsections (6)( f ) and ( g ) and (6A), the beneficial ownership of a person in the equity interests of a trust fund for which a prescribed person is a trustee, with the following modifications: ( a ) the reference in subsection (7)( b ) to the equity interests of another person (when applied to that trust fund) is to be read as the equity interests in that fund; ( b ) the reference in the definition of B under subsection (7) to the value of equity interests of the second level entity beneficially owned by the first level entity (when applied to that trust fund) is to be read as the value of the part of the trust fund beneficially owned by the first level entity; ( c ) the reference in the definition of B under subsection (7) to the total value of all equity interests of the second level entity (when applied to that trust fund) is to be read as the total value of the trust fund. (7B) The Minister or an authorised body may at any time, in the discretion of the Minister or authorised body and subject to such conditions as the Minister or authorised body may impose, remit or refund, wholly or in part, the penalty that is payable or paid by a person under subsection (2), (4) or (6); and section 92(2B) to (2E) applies, with the necessary modifications, to any non‑compliance with any such condition as it applies to the non‑compliance with a condition imposed under section 92(2). [37/2014] [Act 41 of 2020 wef 06/12/2022] (8) Regulations made under this section may — ( a ) provide for the determination of the amount of income of any prescribed person to be exempt from tax; ( b ) provide for the circumstances under which a person would be considered to be an associate for the purposes of this section; ( ba ) prescribe the requirements to be satisfied by a fund manager under subsection (1)( b ); [Act 35 of 2024 wef 27/11/2024] ( c ) exempt any person or class of persons from subsection (2), (4) or (6); and ( d ) make provision generally for giving full effect to or for carrying out the purposes of this section. (9) In this section — “equity interest” means — ( a ) in relation to a company, any issued security of that company; ( aa ) in relation to a trust fund for which a prescribed person is a trustee, any part of the trust fund; or ( b ) in relation to a person other than a company, such right or interest as may be prescribed; “issued securities”, in relation to a company, means — ( a ) issued debentures of, or issued stocks or shares in, the company; ( b ) any right, option or derivative in respect of any such debentures, stocks or shares; ( ba ) any other instrument that confers or represents a legal or beneficial ownership interest in the company; or ( c ) such other securities of the company as may be prescribed; “non‑bona fide entity” means a person not resident in Singapore (excluding a permanent establishment in Singapore) who — ( a ) is set up solely for the purpose of avoiding or reducing payment of tax or penalty under this Act; or ( b ) does not carry out any substantial business activity for a genuine commercial reason; “relevant day” means — ( a ) the last day of the basis period of the pres


document_id: ita-1947
provision_ref: s13E
chapter: PART 4 - EXEMPTION FROM INCOME TAX
section: 13E
title: Exemption of international shipping profits
content:
13E. —(1) Subject to subsections (1A) and (2), there is exempt from tax the income of an approved international shipping enterprise derived — ( a ) on or after 1 April 1991 from — (i) the carriage of passengers, mail, livestock or goods from outside the limits of the port of Singapore by any foreign ship; (ii) the charter of any foreign ship to any person where such ship is used by the person for the carriage of passengers, mail, livestock or goods outside the limits of the port of Singapore; and (iii) the carriage of passengers, mail, livestock or goods by any foreign ship to Singapore solely for the purpose of transhipment; ( b ) for the year of assessment 2005 and subsequent years of assessment from — (i) the operation outside the limits of the port of Singapore of any dredger, seismic ship or any ship used for offshore oil or gas activity; and (ii) the charter of any foreign dredger, foreign seismic ship, or any foreign ship used for offshore oil or gas activity to any person where such dredger, seismic ship or ship is used by the person for the person’s operation outside the limits of the port of Singapore; ( c ) for the year of assessment 2003 and subsequent years of assessment from — (i) towing or salvage operations carried out from outside the limits of the port of Singapore by any foreign ship; and (ii) the charter of any foreign ship to any person where such ship is used by the person for towage and salvage operations carried out outside the limits of the port of Singapore; ( d ) for the year of assessment 2009 and subsequent years of assessment, from foreign exchange and risk management activities which are carried out in connection with and incidental to the operations described in paragraphs ( a ), ( b ) and ( c ); ( e ) at any time in the period between 22 February 2010 and 23 February 2015 (both dates inclusive) from the provision of ship management services to any qualifying special purpose vehicle in respect of ships owned or operated by the qualifying special purpose vehicle, unless the conditions of its approval otherwise provide; ( f ) for the year of assessment 2012 and subsequent years of assessment, from the carriage by any foreign ship of passengers, mail, livestock or goods which are shipped in Singapore, except where such carriage is only within the limits of the port of Singapore; ( g ) on or after 1 June 2011 from — (i) the sale of a foreign ship used for a prescribed purpose; (ii) the assignment to another of all its rights as the buyer under a contract for the construction of a ship for a prescribed purpose that, at the time of assignment, is intended to be a foreign ship to be used for that or any other prescribed purpose; or (iii) the sale of all of the issued ordinary shares in a special purpose company of the approved international shipping enterprise where, at the time of the sale of the shares, the special purpose company — (A) owns any foreign ship that is used for a prescribed purpose; (B) is the buyer under a contract for the construction of a foreign ship for a prescribed purpose that is intended to be used for that or any other prescribed purpose; (C) owns a Singapore ship or a provisionally registered ship within the meaning of section 13A(16); or [Act 33 of 2022 wef 04/11/2022] (D) is the buyer under a contract for the construction of a ship that, at the time of the sale, is intended to be registered or is provisionally registered under the Merchant Shipping Act 1995; ( h ) at any time during the period from 24 February 2015 to 18 February 2020 (both dates inclusive) from providing prescribed ship management services to any qualifying special purpose vehicle in respect of ships owned or operated by the qualifying special purpose vehicle, unless the conditions of its approval otherwise provide; ( i ) on or after 24 February 2015 from — (i) any mobilisation or holding of any ship used or to be used for offshore oil or gas activity outside the limits of the port of Singapore; or (ii) the demobilisation of any ship after it has been so used, where the mobilisation, holding or demobilisation is undertaken by the approved international shipping enterprise itself using a foreign ship; ( j ) on or after 24 February 2015 from — (i) any mobilisation or holding of a foreign ship owned or operated by the approved international shipping enterprise and used or to be used for offshore oil or gas activity outside the limits of the port of Singapore; or (ii) the demobilisation of a foreign ship owned or operated by the approved international shipping enterprise after it has been so used; ( k ) on or after 24 February 2015 from the leasing of any container (other than finance leasing) carried out in connection with its operation of foreign ships and that is incidental to such operation; ( l ) during the period from 25 March 2016 to 18 February 2025 (both dates inclusive) from — (i) the operation outside the limits of the port of Singapore of any foreign ship for offshore renewable energy activity; or [Act 25 of 2025 wef 19/02/2025] (ii) the charter of any foreign ship for offshore renewable energy activity to any person, where such ship is used by the person for the person’s operation outside the limits of the port of Singapore; [Act 25 of 2025 wef 19/02/2025] ( la ) on or after 19 February 2025 from — (i) the operation outside the limits of the port of Singapore of any foreign ship for renewable energy activity; or (ii) the charter of any foreign ship for renewable energy activity to any person, where such ship is used by the person for the person’s operation outside the limits of the port of Singapore; [Act 25 of 2025 wef 19/02/2025] ( lb ) on or after 25 March 2016 from — (i) the operation outside the limits of the port of Singapore of any foreign ship for offshore mineral activity; or (ii) the charter of any foreign ship for offshore mineral activity to any person, where such ship is used by the person for the person’s operation outside the limits of the port of Singapore; [Act 25 of 2025 wef 19/02/2025] ( m ) during the period from 25 March 2016 to 18 February 2025 (both dates inclusive) from — (i) the sale of a foreign ship used for offshore renewable energy activity; [Act 25 of 2025 wef 19/02/2025] (ii) the assignment to another of all its rights as the buyer under a contract for the construction of a ship for offshore renewable energy activity that, at the time of assignment, is intended to be a foreign ship to be used for that activity or any prescribed purpose; or [Act 25 of 2025 wef 19/02/2025] (iii) the sale of all of the issued ordinary shares in a special purpose company of the approved international shipping enterprise where, at the time of the sale of the shares, the special purpose company — (A) owns any foreign ship that is used for offshore renewable energy activity; or [Act 25 of 2025 wef 19/02/2025] (B) is the buyer under a contract for the construction of a foreign ship for that activity and that is intended to be used for that activity or any prescribed purpose; [Act 25 of 2025 wef 19/02/2025] ( ma ) on or after 19 February 2025 from — (i) the sale of a foreign ship used for renewable energy activity; (ii) the assignment to another of all its rights as the buyer under a contract for the construction of a ship for renewable energy activity that, at the time of assignment, is intended to be a foreign ship to be used for that activity or any prescribed purpose; or (iii) the sale of all of the issued ordinary shares in a special purpose company of the approved international shipping enterprise where, at the time of the sale of the shares, the special purpose company — (A) owns any foreign ship that is used for renewable energy activity; or (B) is the buyer under a contract for the construction of a foreign ship for that activity and that is intended to be used for that activity or any prescribed purpose; [Act 25 of 2025 wef 19/02/2025] ( mb ) on or after 25 March 2016 from — (i) the sale of a foreign ship used for offshore mineral activity; (ii) the assignment to another of all its rights as the buyer under a contract for the construction of a ship for offshore mineral activity that, at the time of assignment, is intended to be a foreign ship to be used for that activity or any prescribed purpose; or (iii) the sale of all of the issued ordinary shares in a special purpose company of the approved international shipping enterprise where, at the time of the sale of the shares, the special purpose company — (A) owns any foreign ship that is used for offshore mineral activity; or (B) is the buyer under a contract for the construction of a foreign ship for that activity and that is intended to be used for that activity or any prescribed purpose; [Act 25 of 2025 wef 19/02/2025] ( n ) during the period from 25 March 2016 to 18 February 2025 (both dates inclusive) from — (i) any mobilisation or holding of any ship used or to be used for offshore renewable energy activity outside the limits of the port of Singapore; or [Act 25 of 2025 wef 19/02/2025] (ii) the demobilisation of any ship after it has been so used, where the mobilisation, holding or demobilisation is undertaken by the approved international shipping enterprise itself using a foreign ship; [Act 25 of 2025 wef 19/02/2025] ( na ) on or after 19 February 2025 from — (i) any mobilisation or holding of any ship used or to be used for renewable energy activity outside the limits of the port of Singapore; or (ii) the demobilisation of any ship after it has been so used, where the mobilisation, holding or demobilisation is undertaken by the approved international shipping enterprise itself using a foreign ship; [Act 25 of 2025 wef 19/02/2025] ( nb ) on or after 25 March 2016 from — (i) any mobilisation or holding of any ship used or to be used for offshore mineral activity outside the limits of the port of Singapore; or (ii) the demobilisation of any ship after it has been so used, where the mobilisation, holding or demobilisation is undertaken by the approved international shipping enterprise itself using a foreign ship; [Act 25 of 2025 wef 19/02/2025] ( o ) during the period from 25 March 2016 to 18 February 2025 (both dates inclusive) from — (i) any mobilisation or holding of a foreign ship owned or operated by the approved international shipping enterprise and used or to be used for offshore renewable energy activity outside the limits of the port of Singapore; or [Act 25 of 2025 wef 19/02/2025] (ii) the demobilisation of a foreign ship owned or operated by the approved international shipping enterprise after it has been so used; [Act 25 of 2025 wef 19/02/2025] ( oa ) on or after 19 February 2025 from — (i) any mobilisation or holding of a foreign ship owned or operated by the approved international shipping enterprise and used or to be used for renewable energy activity outside the limits of the port of Singapore; or (ii) the demobilisation of a foreign ship owned or operated by the approved international shipping enterprise after it has been so used; [Act 25 of 2025 wef 19/02/2025] ( ob ) on or after 25 March 2016 from — (i) any mobilisation or holding of a foreign ship owned or operated by the approved international shipping enterprise and used or to be used for offshore mineral activity outside the limits of the port of Singapore; or (ii) the demobilisation of a foreign ship owned or operated by the approved international shipping enterprise after it has been so used; [Act 25 of 2025 wef 19/02/2025] ( p ) on or after 25 March 2016 from foreign exchange and risk management activities which are carried out in connection with and incidental to an activity described in paragraph ( l ), ( lb ), ( n ), ( nb ), ( o ) or ( ob ); [Act 25 of 2025 wef 19/02/2025] ( q ) on or after 29 December 2016 from foreign exchange and risk management activities that are carried out in connection with and incidental to an activity mentioned in subsection (1)( f ), ( h ), ( i ) or ( j ); ( r ) on o


document_id: ita-1947
provision_ref: s13F
chapter: PART 4 - EXEMPTION FROM INCOME TAX
section: 13F
title: Exemption of income of foreign trust
content:
13F. —(1) There is exempt from tax such income as the Minister may by regulations prescribe of such foreign trust or eligible holding company established for the purposes of such foreign trust as specified in those regulations, or as approved by the Minister or authorised body, and administered by a trustee company in Singapore. [Act 33 of 2022 wef 04/11/2022] (2) Where any income of a foreign trust is exempt from tax under regulations made under subsection (1) in any year of assessment, the share of such income to which any beneficiary under the trust is entitled to receive for that year of assessment is also exempt from tax if the beneficiary — ( a ) being an individual, is neither a citizen of Singapore nor resident in Singapore; ( b ) being a company, is neither incorporated nor resident in Singapore and where such a company — (i) has not more than 50 shareholders, all of its issued shares are beneficially owned, directly or indirectly, by persons who are neither citizens of Singapore nor resident in Singapore; or (ii) has more than 50 shareholders, not less than 95% of the total number of its issued shares are beneficially owned, directly or indirectly, by persons who are neither citizens of Singapore nor resident in Singapore; ( c ) being any other person, is neither resident in Singapore nor constituted or registered under any written law in Singapore; or ( d ) is a trustee of another foreign trust specified under subsection (1). (3) Where any income of a foreign trust is exempt from tax under regulations made under subsection (1) in any year of assessment, the share of such income that a foreign account of a philanthropic purpose trust is entitled to receive for that year of assessment is also exempt from tax. (4) Despite subsections (1) and (2), where it appears to the Comptroller that any income of a foreign trust or eligible holding company ought not to have been exempted under regulations made under subsection (1), the Comptroller may, subject to section 74, make such assessment or additional assessment upon the foreign trust or eligible holding company (as the case may be) as may appear to be necessary. (5) In this section — “foreign account” and “philanthropic purpose trust” have the meanings given by section 13L; “trustee company” has the meaning given by section 43G(2). (6) This section does not apply to — ( a ) a trust that is constituted on or after 1 January 2028; [Act 35 of 2024 wef 27/11/2024] ( b ) a company that is incorporated on or after 1 January 2028; [Act 35 of 2024 wef 27/11/2024] ( c ) a trust that — (i) is constituted before 1 January 2028; and [Act 35 of 2024 wef 27/11/2024] (ii) in the basis period in which 31 December 2027 falls, is not a foreign trust specified in the regulations under subsection (1) (called in this subsection and subsection (8) a specified trust) that is administered by a trustee company in Singapore within the meaning of those regulations; or [Act 35 of 2024 wef 27/11/2024] ( d ) a company that — (i) is incorporated before 1 January 2028; and [Act 35 of 2024 wef 27/11/2024] (ii) in the basis period in which 31 December 2027 falls — (A) is not an eligible holding company established for the purposes of a specified trust, and specified in the regulations under subsection (1); or (B) is not administered by a trustee company in Singapore within the meaning of those regulations. [37/2014; 32/2019] [Act 35 of 2024 wef 27/11/2024] (7) Where, in any basis period beginning on or after 1 January 2028 — ( a ) a trust or company does not satisfy the requirements referred to in subsection (8); or ( b ) the trustee company which administers a foreign trust or an eligible holding company established for the purposes of a foreign trust fails to comply with any of the regulations under subsection (1), then this section does not apply to the trust or company in paragraph ( a ), or the foreign trust or eligible holding company in paragraph ( b ), for the year of assessment to which that basis period relates, and for every subsequent year of assessment even if the requirements are satisfied and the regulations are complied with in the basis period for that subsequent year of assessment. [37/2014; 32/2019] [Act 35 of 2024 wef 27/11/2024] (8) In subsection (7), the requirements are — ( a ) in the case of the trust, that it is a specified trust and is administered by a trustee company in Singapore within the meaning of those regulations; or ( b ) in the case of the company — (i) that it is an eligible holding company established for the purposes of a specified trust, and specified in those regulations; and (ii) that it is administered by a trustee company in Singapore within the meaning of those regulations. [13G [37/2014]


document_id: ita-1947
provision_ref: s13G
chapter: PART 4 - EXEMPTION FROM INCOME TAX
section: 13G
title: Exemption of income of venture company
content:
13G. —(1) The Minister may make regulations to provide that such income as the Minister may specify of an approved venture company derived by it from making authorised investments is exempt from tax. [34/2016; 41/2020] (2) Regulations made under subsection (1) may provide for the determination of the amount of the income of an approved venture company to be exempted and for the deduction of losses otherwise than in accordance with section 37. [34/2016] (2A) For a venture company that is approved before 1 April 2020, the exemption from tax of the income of the company under regulations made under subsection (1) — ( a ) is for such period, not exceeding 10 years, as the Minister, or such person as the Minister may appoint, may specify; and ( b ) in any particular case after the period referred to in paragraph ( a ), is for such further period or periods, not exceeding 5 years at any one time for each period, as the Minister or an authorised body may specify. [34/2016; 41/2020] [Act 41 of 2020 wef 12/04/2024] (2B) The total period under subsection (2A)( a ) and the further period or periods under subsection (2A)( b ) must not in the aggregate exceed 15 years. (2BA) For a venture company that is approved on or after 1 April 2020, the exemption from tax of the income of the company under regulations made under subsection (1) is for — ( a ) a period not exceeding 15 years as specified to the venture company by the Minister or an authorised body; and [Act 41 of 2020 wef 12/04/2024] ( b ) where the period mentioned in paragraph ( a ) is less than 15 years — any additional period or periods specified to the venture company by the Minister or an authorised body. [41/2020] [Act 41 of 2020 wef 12/04/2024] (2BB) The total period of exemption from tax of income of an approved venture company mentioned in subsection (2BA) must not exceed 15 years. [41/2020] (2C) The Minister or authorised body may, subject to such conditions as the Minister or authorised body may impose, approve a venture company as an approved venture company for the purposes of this section. [32/2019] [Act 41 of 2020 wef 12/04/2024] (2D) No approval may be granted to a venture company on or after 1 January 2026. [32/2019; 41/2020] (3) The Comptroller must determine the manner and extent to which allowances under section 19, 19A, 20, 21 or 22 and any expenses, losses and donations allowable under this Act which are attributable to the income referred to in subsection (1) are to be deducted. (4) In determining the income of an approved venture company which is exempt from tax under regulations made under subsection (1) for any year of assessment, there are to be deducted therefrom — ( a ) expenses allowable under this Act for that year of assessment which are attributable to that income; ( aa ) [ Deleted by Act 34 of 2016 ] ( b ) any loss for that year of assessment arising from the disposal of any authorised investments in Singapore or elsewhere; ( c ) any allowances for that year of assessment under section 19, 19A, 20, 21 or 22 attributable to that income even if no claim for those allowances has been made; and ( d ) any balance of the expenses, losses and allowances referred to in paragraphs ( a ), ( b ) and ( c ) which have not been deducted in determining that income for any previous year of assessment. [34/2016; 41/2020] (5) Any expenses, losses or allowances referred to in subsection (4) may only be deducted against the income of an approved venture company exempt from tax under regulations made under subsection (1) and are not available as a deduction against any other income of the company, except that any balance of the expenses, losses or allowances remaining unabsorbed at the end of the tax exempt period of the company is available as a deduction against any other income of the company for the year of assessment which relates to the basis period in which the tax exemption ceases and for any subsequent year of assessment in accordance with section 23 or 37, as the case may be. (5A) [ Deleted by Act 34 of 2016 ] (6) The Comptroller must, for each year of assessment for which the income of an approved venture company is exempt from tax under regulations made under subsection (1), issue to the approved venture company a statement (to be included in a notice of any assessment served on the approved venture company under section 76) showing the amount of income exempt from tax under regulations made under subsection (1) and Parts 17 and 18 (relating to assessments, objections and appeals) and any rules made under this Act apply, with the necessary modifications, as if such statement were a notice of assessment. (7) Where any statement issued to an approved venture company under subsection (6) has become final and conclusive, the amount of income shown in the statement does not form part of the statutory income of the company for the year of assessment to which the statement relates and is exempt from tax. (8) [ Deleted by Act 19 of 2013 ] (9) [ Deleted by Act 19 of 2013 ] (10) [ Deleted by Act 19 of 2013 ] (11) [ Deleted by Act 19 of 2013 ] (11A) [ Deleted by Act 19 of 2013 ] (12) [ Deleted by Act 19 of 2013 ] (13) [ Deleted by Act 19 of 2013 ] (14) [ Deleted by Act 19 of 2013 ] (15) An approved venture company must deliver to the Comptroller a copy of the account made up to any date specified by the Comptroller whenever called upon to do so by written notice. (16) Despite anything in this section, where it appears to the Comptroller that any income of an approved venture company which has been exempted from tax under regulations made under subsection (1) ought not to have been so exempted for any year of assessment, the Comptroller may, at any time within 4 years after the expiry of that year of assessment, make such assessment or additional assessment upon the company as may appear to be necessary in order to make good any loss of tax. [34/2016] (17) Parts 17 and 18 (relating to assessments, objections and appeals) and any rules made under this Act apply, with the necessary modifications, as if an assessment under subsection (16) were a notice of assessment. (18) In this section — “authorised investments” — ( a ) in relation to income derived by an approved venture company before 1 April 2020, means — (i) debentures, stocks, shares, bonds, notes or warrants issued by a government or company; (ii) any right or option in respect of any debentures, stocks, shares, bonds, notes or warrants; or (iii) units in any unit trust within the meaning of section 10A; or ( b ) in relation to income derived by an approved venture company on or after 1 April 2020, means investments prescribed by the Minister for the purpose of subsection (1); “tax exempt period” means the period during which any income of an approved venture company is exempt from tax under regulations made under subsection (1); “venture company” means any company whose business consists wholly or mainly in the making of authorised investments and the principal part of whose income is derived therefrom. [13H [32/2019; 41/2020]


document_id: ita-1947
provision_ref: s13H
chapter: PART 4 - EXEMPTION FROM INCOME TAX
section: 13H
title: Exemption of tax on gains or profits from equity remuneration incentive scheme (SMEs)
content:
13H. —(1) Where a qualifying employee derives any gains or profits in any year of assessment, after the expiry of the minimum holding period, from any stock option granted during the period from 1 June 2000 to 31 December 2013 (both dates inclusive), or any right or benefit under any share acquisition scheme (other than a stock option scheme) granted during the period from 1 January 2002 to 31 December 2013 (both dates inclusive), to acquire shares in any qualifying company or in its holding company, there is, subject to this section, exempt from tax 50% of an amount of such gains or profits as determined under subsection (2). (2) The amount of gains or profits referred to in subsection (1) is — ( a ) where the price to be paid for the shares under the right or benefit is equal to or exceeds the market value or, if it is not possible to determine such value, the net asset value of the shares at the time of the grant of the right or benefit, the amount as determined under section 10(6); or ( b ) where the price to be paid for the shares under the right or benefit is at a discount to the market value or, if it is not possible to determine such value, the net asset value of the shares at the time of the grant of the right or benefit, the amount as determined under section 10(6) less the amount of the discount. (3) The exemption under this section does not apply to any amount of gains or profits to which section 10(6) applies — ( a ) to the extent that the amount, when aggregated with the amount of such gains or profits previously derived by the qualifying employee and which qualifies for exemption under this section, exceeds $10 million; ( b ) which is derived by the qualifying employee on or after 1 January of the 10th year following the year in which he or she first derived such gains or profits which qualified for exemption under this section; or ( c ) which is derived by the qualifying employee for the release of his or her right or benefit to acquire shares in any qualifying company or in its holding company by reason of his or her resignation or termination of his or her employment with the qualifying company due to his or her misconduct. (4) The exemption under this section applies to gains or profits derived by an employee from any right or benefit to acquire shares in a holding company of the company in which the employee is employed only if the following conditions are satisfied: ( a ) both the company and the holding company are incorporated in Singapore; ( b ) the holding company grants the right or benefit to acquire its shares to its employees or the employees of companies within its group of companies; and ( c ) at the time of the grant by the holding company of the right or benefit to acquire its shares — (i) both the company and the holding company are carrying on business in Singapore; (ii) the market value of the gross assets of the company does not exceed $100 million; (iii) the market value of the gross assets of the holding company and companies within its group of companies does not exceed in the aggregate $100 million; and (iv) the company in which the employee is employed has not granted any right or benefit to any of its employees to acquire its shares. (5) The Minister may make regulations to provide generally for giving full effect to or for carrying out the purposes of this section. (6) For the purposes of this section and section 13I, where a company grants — ( a ) any stock option during the period from 1 April 2001 to 31 December 2013 (both dates inclusive); or ( b ) any right or benefit under any share acquisition scheme (other than a stock option scheme) during the period from 1 January 2002 to 31 December 2013 (both dates inclusive), to acquire shares under a tranche of the share acquisition scheme and any gains or profits derived by a qualifying employee from any right or benefit granted under that tranche qualifies for tax exemption under this section as well as section 13I, the company must opt for the tax exemption under this section or section 13I to apply in respect of the gains or profits relating to that tranche but not under both sections. (7) Where a company has opted under subsection (6) for tax exemption under this section to apply to the gains or profits in respect of a tranche of a share acquisition scheme, tax exemption under section 13I — ( a ) is, subject to paragraph ( b ), not available in respect of any right or benefit to acquire shares granted by the company under any tranche subsequent to that tranche under the share acquisition scheme; and ( b ) is available in respect of any right or benefit to acquire shares granted subsequent to the option by the company under any tranche under the share acquisition scheme only where the conditions for tax exemption under this section are not satisfied in respect of any such subsequent tranche granted. (8) Where a company has opted under subsection (6) for tax exemption under section 13I to apply to the gains or profits in respect of a tranche of a share acquisition scheme, tax exemption under this section is not available in respect of any right or benefit to acquire shares granted by the company under any tranche subsequent to that tranche under the share acquisition scheme. (9) Any option by a company under subsection (6) is irrevocable. (9A) Despite anything in this section, the exemption under this section does not apply to any gains or profits derived by a qualifying employee on or after 1 January 2024. (10) In this section, unless the context otherwise requires — [ Deleted by Act 33 of 2022 wef 04/11/2022 ] “minimum holding period” — ( a ) in relation to a right or benefit to acquire shares in a qualifying company or holding company under any stock option scheme, means the period prescribed by the Singapore Exchange during which no option may be exercised under a stock option scheme implemented by any company listed on that Exchange, which would have been applicable to the stock option granted by the qualifying company or holding company (as the case may be) if it were a company listed on that Exchange; and ( b ) in relation to a right or benefit to acquire shares in a qualifying company or holding company under any share acquisition scheme (other than a stock option scheme), means — (i) a period of at least one year after the grant of the right or benefit, during which the shares so acquired may not be sold, if the price to be paid for the shares under the right or benefit is at a discount to the market value or, if it is not possible to determine such value, the net asset value of the shares at the time of the grant of the right or benefit; or (ii) a period of at least 6 months after the grant of the right or benefit, during which the shares so acquired may not be sold, if the price to be paid for the shares under the right or benefit is equal to or exceeds the market value or, if it is not possible to determine such value, the net asset value of the shares at the time of the grant of the right or benefit; “qualifying company” means a company incorporated in Singapore which at the time of the grant to its employees of any right or benefit to acquire its shares — ( a ) carries on business in Singapore; and ( b ) has gross assets the market value of which does not exceed $100 million; “qualifying employee” means an employee (other than any non‑executive director) of a company who, at the time of the grant to him or her of any right or benefit to acquire the shares of the company or the shares of its holding company, as the case may be — ( a ) is committed to work — (i) where the time of the grant is before 1 January 2010 — (A) at least 30 hours per week for the company; or (B) where the employee is committed to work less than that number of hours, at least 75% of his or her total working time per week for the company; and (ii) where the time of the grant is on or after 1 January 2010 — (A) at least the number of hours per week referred to in section 66A(1) of the Employment Act 1968 for the company; or (B) where the employee is committed to work less than that number of hours, at least 75% of his or her total working time per week for the company; and ( b ) does not beneficially own, directly or indirectly, voting shares that confer the right to exercise or control the exercise of not less than 25% of the voting power in the company which grants the right or benefit to acquire its shares; “share acquisition scheme” means a scheme which imposes a minimum holding period requirement and allows an employee of a company to own or purchase shares in a qualifying company or that of its holding company, including stock options, share awards and other similar forms of employee share purchase plans but excluding phantom shares rights, share appreciation rights and any other similar rights; “shares” includes stocks but does not include redeemable or convertible shares or shares of a preferential nature; “total working time”, in relation to a qualifying employee, means the total period of time spent by him or her as an employee for all his or her employers plus, if applicable, the total period of time, which is deemed to be 10 hours per week, spent by him or her on remunerative work as a self‑employed person. [13J


document_id: ita-1947
provision_ref: s13I
chapter: PART 4 - EXEMPTION FROM INCOME TAX
section: 13I
title: Exemption of tax on gains or profits from equity remuneration incentive scheme
content:
13I. —(1) Where a qualifying employee derives any gains or profits in any year of assessment, after the expiry of the minimum holding period, from any stock option granted during the period from 1 April 2001 to 31 December 2013 (both dates inclusive), or any right or benefit under any share acquisition scheme (other than a stock option scheme) granted during the period from 1 January 2002 to 31 December 2013 (both dates inclusive), to acquire shares in any qualifying company or in its holding company under a share acquisition scheme which satisfies the relevant percentage requirement, there is, subject to this section and section 13H(6) to (9), exempt from tax — ( a ) the first $2,000 of such gains or profits in that year of assessment as determined under subsection (2); and ( b ) 25% of any amount of such gains or profits in that year of assessment exceeding $2,000 as determined under subsection (2). (2) The amount of gains or profits referred to in subsection (1) is — ( a ) where the price to be paid for the shares under the right or benefit is equal to or exceeds the market value or, if it is not possible to determine such value, the net asset value of the shares at the time of the grant of the right or benefit, the amount as determined under section 10(6); or ( b ) where the price to be paid for the shares under the right or benefit is at a discount to the market value or, if it is not possible to determine such value, the net asset value of the shares at the time of the grant of the right or benefit, the amount as determined under section 10(6) less the amount of the discount. (3) The exemption under this section does not apply to any amount of gains or profits to which section 10(6) applies — ( a ) to the extent that the amount, when aggregated with the amount of such gains or profits previously derived by the qualifying employee and which qualifies for exemption under this section, exceeds $1 million; ( b ) which is derived by the qualifying employee on or after 1 January of the 10th year following the year in which he or she first derived such gains or profits which qualified for exemption under this section; or ( c ) which is derived by the qualifying employee for the release of his or her right or benefit to acquire shares in any qualifying company or in its holding company by reason of his or her resignation or termination of his or her employment with the qualifying company due to his or her misconduct. (3A) Despite anything in this section, the exemption under this section does not apply to any gains or profits derived by a qualifying employee on or after 1 January 2024. (4) The Minister may make regulations to provide generally for giving full effect to or for carrying out the purposes of this section. (5) In this section, unless the context otherwise requires — [ Deleted by Act 33 of 2022 wef 04/11/2022 ] “minimum holding period” has the meaning given by section 13H; “part‑time employee” means an employee of a company who is committed to work — ( a ) where the time of grant is before 1 January 2010, for not more than 30 hours per week (including any time the employee would be required to work but for injury, any official leave or such other similar events) for the company; or ( b ) where the time of grant is on or after 1 January 2010, for not more than the number of hours per week referred to in section 66A(1) of the Employment Act 1968 (including any time the employee would be required to work but for injury, any official leave or such other similar events) for the company; “qualifying company” means a company incorporated or registered under the Companies Act 1967 which, at the time of the grant to its employees of any right or benefit to acquire its shares or that of its holding company, carries on business in Singapore; “qualifying employee” means an employee of a qualifying company who, at the time of the grant to him or her of any right or benefit to acquire the shares of the company or the shares of its holding company (as the case may be) does not beneficially own, directly or indirectly, voting shares that confer the right to exercise or control the exercise of not less than 25% of the voting power in the qualifying company which grants the right or benefit to acquire its shares; “relevant percentage requirement” — ( a ) in relation to any right or benefit under a share acquisition scheme to acquire the shares of a qualifying company or its holding company granted before 16 February 2008, means in the aggregate at least 50% of the employees of the qualifying company are offered during any calendar year any rights or benefits to acquire shares in the qualifying company or in its holding company under that scheme, as ascertained in accordance with the specified formula; or ( b ) in relation to any right or benefit under a share acquisition scheme to acquire the shares of a qualifying company or its holding company granted on or after 16 February 2008, means in the aggregate at least 25% of the employees of the qualifying company are offered during any calendar year any rights or benefits to acquire shares in the qualifying company or in its holding company under that scheme, as ascertained in accordance with the specified formula; “share acquisition scheme” has the meaning given by section 13H; “shares” includes stocks but does not include redeemable or convertible shares or shares of a preferential nature; “specified formula” means the formula where A is the aggregate number of employees of the qualifying company who are offered during a calendar year any right or benefit to acquire shares in the qualifying company or in its holding company under any share acquisition scheme in respect of which the qualifying company has opted under section 13H(6) for tax exemption under this section instead of section 13H to apply, and who are employees of that qualifying company at the time of such offer; B is the number of employees of the qualifying company on the last day of that calendar year; C is the number of part‑time employees (other than non‑executive directors) on the last day of that calendar year where any right or benefit to acquire shares in that qualifying company or in its holding company is not offered to any such employee for the whole of that calendar year, or nil where any right or benefit to acquire shares in that qualifying company or in its holding company is offered to any such employee during that calendar year; D is the number of full‑time employees with less than one year’s service (other than non‑executive directors) on the last day of that calendar year where any right or benefit to acquire shares in that qualifying company or in its holding company is not offered to any such employee for the whole of that calendar year, or nil where any right or benefit to acquire shares in that qualifying company or in its holding company is offered to any such employee during that calendar year; and E is the number of employees engaged on contracts not exceeding 2 years (other than non‑executive directors) on the last day of that calendar year where any right or benefit to acquire shares in that qualifying company or in its holding company is not offered to any such employee for the whole of that calendar year, or nil where any right or benefit to acquire shares in that qualifying company or in its holding company is offered to any such employee during that calendar year. [13L


document_id: ita-1947
provision_ref: s13J
chapter: PART 4 - EXEMPTION FROM INCOME TAX
section: 13J
title: Exemption of tax on gains or profits from equity remuneration incentive scheme (start‑ups)
content:
13J. —(1) Where a qualifying employee derives any gains or profits in any year of assessment, after the expiry of the minimum holding period, from any right or benefit under any share acquisition scheme granted during the period from 16 February 2008 to 15 February 2013 (both dates inclusive) to acquire shares in any qualifying company, there is, subject to this section, exempt from tax 75% of an amount of such gains or profits in that year of assessment as determined under subsection (2). (2) The amount of gains or profits referred to in subsection (1) is — ( a ) where the price to be paid for the shares under the right or benefit is equal to or exceeds the market value or (if it is not possible to determine such value) the net asset value of the shares at the time of the grant of the right or benefit, the amount as determined under section 10(6); or ( b ) where the price to be paid for the shares under the right or benefit is at a discount to the market value or (if it is not possible to determine such value) the net asset value of the shares at the time of the grant of the right or benefit, the amount as determined under section 10(6) less the amount of the discount. (3) The exemption under this section does not apply to any amount of gains or profits to which section 10(6) applies — ( a ) to the extent that the amount, when aggregated with the amount of such gains or profits previously derived by the qualifying employee and which qualifies for exemption under this section, exceeds $10 million; ( b ) which is derived by the qualifying employee on or after 16 February of the 10th year following the year in which he or she first derived such gains or profits which qualified for exemption under this section; or ( c ) which is derived by the qualifying employee for the release of his or her right or benefit to acquire shares in any qualifying company by reason of his or her resignation or the termination of his or her employment with the qualifying company due to his or her misconduct. (4) For the purposes of this section and section 13H, where –– ( a ) a company grants any right or benefit under any share acquisition scheme during the period from 16 February 2008 to 15 February 2013 (both dates inclusive) to acquire shares under a tranche of the share acquisition scheme; and ( b ) any gains or profits derived by a qualifying employee from any right or benefit granted under that tranche qualifies for tax exemption under this section as well as section 13H, the company must opt for the tax exemption under this section or section 13H to apply in respect of the gains or profits relating to that tranche but not under both sections. (5) Where a company has opted under subsection (4) for tax exemption under this section to apply to the gains or profits in respect of a tranche of a share acquisition scheme, tax exemption under section 13H or 13I — ( a ) is, subject to paragraph ( b ), not available in respect of any right or benefit to acquire shares granted by the company under any tranche subsequent to that tranche under the share acquisition scheme; and ( b ) is available in respect of any right or benefit to acquire shares granted subsequent to the option by the company under any tranche under the share acquisition scheme only where the conditions for tax exemption under this section are not satisfied in respect of any such subsequent tranche granted. (5A) Despite anything in this section, the exemption under this section does not apply to any gains or profits derived by a qualifying employee on or after 1 January 2024. (6) The Minister may make regulations to provide generally for giving full effect to or for carrying out the purposes of this section. (7) In this section — “minimum holding period” — ( a ) in relation to a right or benefit to acquire shares in a qualifying company under any stock option scheme, means the period prescribed by the Singapore Exchange during which no option may be exercised under a stock option scheme implemented by any company listed on that Exchange, which would have been applicable to the stock option granted by the qualifying company if it were a company listed on that Exchange; and ( b ) in relation to a right or benefit to acquire shares in a qualifying company under any share acquisition scheme (other than a stock option scheme), means — (i) a period of at least one year after the grant of the right or benefit, during which the shares so acquired may not be sold, if the price to be paid for the shares under the right or benefit is at a discount to the market value or, if it is not possible to determine such value, the net asset value of the shares at the time of the grant of the right or benefit; or (ii) a period of at least 6 months after the grant of the right or benefit, during which the shares so acquired may not be sold, if the price to be paid for the shares under the right or benefit is equal to or exceeds the market value or, if it is not possible to determine such value, the net asset value of the shares at the time of the grant of the right or benefit; “qualifying company” means a company incorporated in Singapore which, at the time of the grant to its employees of any right or benefit to acquire its shares — ( a ) carries on business in Singapore; ( b ) has been incorporated for 3 years or less; ( c ) has its total share capital beneficially held directly by no more than 20 shareholders — (i) all of whom are individuals; or (ii) at least one of whom is an individual holding at least 10% of the total number of issued ordinary shares of the qualifying company; and ( d ) has gross assets the market value of which does not exceed $100 million; “qualifying employee” means an employee (other than any non‑executive director) of a company, who at the time of the grant to him or her of any right or benefit to acquire the shares of the company — ( a ) is committed to work — (i) where the time of the grant is before 1 January 2010 — (A) at least 30 hours per week for the company; or (B) where the employee is committed to work less than that number of hours, at least 75% of his or her total working time per week for the company; and (ii) where the time of the grant is on or after 1 January 2010 — (A) at least the number of hours per week referred to in section 66A(1) of the Employment Act 1968 for the company; or (B) where the employee is committed to work less than that number of hours, at least 75% of his or her total working time per week for the company; and ( b ) does not beneficially own, directly or indirectly, voting shares that confer the right to exercise or control the exercise of not less than 25% of the voting power in the company which grants the right or benefit to acquire its shares; “share acquisition scheme” means a scheme which imposes a minimum holding period requirement and allows an employee of a company to own or purchase shares in a qualifying company, including stock options, share awards and other similar forms of employee share purchase plans but excluding phantom shares rights, share appreciation rights and any other similar rights; “shares” includes stocks but does not include redeemable or convertible shares or shares of a preferential nature; “total working time”, in relation to a qualifying employee, means the total period of time spent by him or her as an employee for all his or her employers plus, if applicable, the total period of time, which is deemed to be 10 hours per week, spent by him or her on remunerative work as a self‑employed person. [13M


document_id: ita-1947
provision_ref: s13K
chapter: PART 4 - EXEMPTION FROM INCOME TAX
section: 13K
title: Exemption of tax on income derived by non‑ordinarily resident individual
content:
13K. —(1) Where an NOR individual is resident in Singapore in any year of assessment within the period he or she is an NOR individual, he or she may, within such time in that year of assessment and in such manner as may be specified by the Comptroller, elect for all or any of the following income of the NOR individual to be exempt from tax for that year of assessment: ( a ) any relevant employment income for the year preceding that year of assessment, if the NOR individual — (i) is not physically present in Singapore for at least 90 days in the year preceding that year of assessment by reason of the exercise of any employment in Singapore; and (ii) derives gains or profits of at least $160,000 from the exercise of any employment in Singapore for the year preceding that year of assessment; ( b ) despite section 10B(11), any contribution up to the relevant amount made by the NOR individual’s employer to any non‑obligatory pension or provident fund constituted outside Singapore in the year preceding that year of assessment, if — (i) the NOR individual is neither a citizen nor a permanent resident of Singapore at the time such contribution is made; (ii) the NOR individual derives gains or profits of at least $160,000 from the exercise of any employment in Singapore for the year preceding that year of assessment; and (iii) a deduction with respect to such contribution has not been allowed to the NOR individual’s employer under section 14(1)( e ). (2) Where the notional tax payable on the apportioned employment income by an NOR individual who has elected for tax exemption under subsection (1) is less than 10% of the gains or profits from the exercise of any employment in Singapore by him or her — ( a ) the apportioned employment income is readjusted such that the notional tax payable on the readjusted apportioned employment income is 10% of the gains or profits from the exercise of any employment in Singapore by the NOR individual; and ( b ) the relevant employment income is reduced by the difference between the readjusted apportioned employment income and the apportioned employment income. (3) Any individual who satisfies any of the following criteria may apply to the Comptroller in such manner as the Comptroller may determine to be approved as an NOR individual for the specified period: ( a ) if the individual is not resident in Singapore for any year of assessment before 1 January 2003, but is resident in Singapore for every succeeding year of assessment up to and including year of assessment 2003, for a period of 5 consecutive years from the first year of assessment in which he or she is resident in Singapore; ( b ) if the individual is resident in Singapore in year of assessment 2004, but is not resident in Singapore in year of assessment 2003, for a period of 5 consecutive years from year of assessment 2004; ( c ) if the individual is resident in Singapore in year of assessment 2005, but is not resident in Singapore in years of assessment 2003 and 2004, for a period of 5 consecutive years from year of assessment 2005; ( d ) if the individual is resident in Singapore in any year of assessment between the years of assessment 2006 and 2020 (both years inclusive), but is not resident in Singapore for all the 3 years of assessment immediately preceding that year of assessment, for a period of 5 consecutive years commencing from that year of assessment in which he or she is resident in Singapore. [32/2019] (4) The Comptroller may, subject to subsection (4A) and such terms and conditions as the Comptroller may impose, approve the application of an individual to be an NOR individual. [32/2019] (4A) No approval under subsection (4) may be granted for any application made on or after 1 January 2025. [32/2019] (5) Where an individual has been approved as an NOR individual, approval must not be given under subsection (4) before the expiry of the period he or she is an NOR individual. (5A) Where — ( a ) an individual has been approved as an NOR individual before the year of assessment 2009; ( b ) the period of the individual’s approval has not expired at the beginning of that year of assessment; and ( c ) the individual has had income exempted from tax under this section in force immediately before 16 December 2008 for any year of assessment between the year of assessment 2005 and the year of assessment 2008 (both years inclusive), then the individual may, at any time at or before filing with the Comptroller a return of his or her income for the year of assessment 2009, elect to continue to be subject to subsections (1) and (7) in force immediately before 16 December 2008; and in that event subsections (1) and (7) in force immediately before that date continue to apply to the individual for so long as he or she remains an NOR individual. (6) Any election made under subsections (1) and (5A) and any approval granted under subsection (4) are irrevocable. (7) In this section — “apportioned employment income”, in relation to an NOR individual, means total gains or profits from the exercise of any employment in Singapore by the NOR individual after deducting relevant employment income; “NOR individual” means any individual who is for the time being approved as an NOR individual under subsection (4); “notional tax payable”, in relation to gains or profits from the exercise of any employment in Singapore by an individual, apportioned employment income or readjusted apportioned employment income (as the case may be) means the amount of tax computed in accordance with the rates specified in Part A of the Second Schedule in respect of gains or profits from the exercise of any employment in Singapore by the individual, apportioned employment income or readjusted apportioned employment income (as the case may be) before any deduction under sections 37 and 39; “obligatory” means required under any foreign written law; “relevant amount”, in relation to an NOR individual, means — ( a ) nil if A ≥ B; or ( b ) B ‑ A if A < B, where A is the total amount of contributions made by the employer in respect of the NOR individual to any obligatory pension or provident fund constituted outside Singapore and for which the amount is not deemed as income accruing to the NOR individual under section 10B(11); and B is the amount of contribution which would have been required to be made by the employer under section 7 of the Central Provident Fund Act 1953 if the NOR individual were an employee and a citizen of Singapore; “relevant employment income”, in relation to an NOR individual, means — where C is the number of days in the year preceding that year of assessment for which the NOR individual is not physically present in Singapore by reason of the exercise of any employment in Singapore; D is the number of days in the year preceding that year of assessment for which the NOR individual exercises any employment in Singapore; and E is the gains or profits from the exercise of any employment in Singapore by the NOR individual referred to in section 10(2)( a ), (6) and (7), but excluding — ( a ) director’s fee; and ( b ) where any amount of tax of the NOR individual payable in Singapore is borne, directly or indirectly, by his or her employer, the amount of tax that is so borne. [13N


document_id: ita-1947
provision_ref: s13L
chapter: PART 4 - EXEMPTION FROM INCOME TAX
section: 13L
title: Exemption of income of foreign account of philanthropic purpose trust
content:
13L. —(1) There is exempt from tax such income derived from — ( a ) any funds or assets in any foreign account of a philanthropic purpose trust constituted on or after 18 February 2005 and administered by a trustee company in Singapore; and ( b ) any funds or assets of an eligible holding company established for the purposes of that philanthropic purpose trust which are held for the foreign account of that trust, as the Minister may by regulations prescribe. (2) Regulations made under subsection (1) may provide for the deduction of expenses, allowances and losses relating to a foreign account of a philanthropic purpose trust or an eligible holding company established for the purposes of a philanthropic purpose trust, otherwise than in accordance with this Act. (3) In this section — “eligible holding company” means a company — ( a ) which is incorporated outside Singapore; ( b ) which is set up to hold assets of a philanthropic purpose trust administered by a trustee company; ( c ) whose operations consist solely of trading or making investments for the purpose of the philanthropic purpose trust; ( d ) which does not claim any relief under any arrangement made under section 49 or any tax credit under section 50A; and ( e ) all the shares of which are held by the trustees of the philanthropic purpose trust or by their nominee; “foreign account”, in relation to a philanthropic purpose trust, means an account into which funds or assets are injected solely by settlors who or which are — ( a ) individuals that are neither citizens of Singapore nor resident in Singapore, unless the Minister otherwise by regulations prescribes; ( b ) companies each of which — (i) is neither incorporated nor resident in Singapore; (ii) does not have a permanent establishment in Singapore other than a trustee company referred to in subsection (1)( a ); (iii) does not in the basis period — (A) in the case of any year of assessment before 2021, carry on a business in Singapore; or (B) in the case of the year of assessment 2021 or a subsequent year of assessment, carry on a business in Singapore or outside Singapore; (iv) does not beneficially own more than 20% of the total number of the issued shares of any company incorporated in Singapore; (v) does not have 20% or more of the total number of its issued shares beneficially owned, directly or indirectly, by a company which — (A) has a permanent establishment in Singapore other than a trustee company referred to in subsection (1)( a ); (B) carries on in the basis period — (BA) in the case of any year of assessment before 2021, a business in Singapore; or (BB) in the case of the year of assessment 2021 or a subsequent year of assessment, a business in Singapore or outside Singapore; or (C) beneficially owns more than 20% of the total number of the issued shares of any company incorporated in Singapore; and (vi) has — (A) if it has no more than 50 shareholders, all of its issued shares beneficially owned, directly or indirectly, by persons who are neither citizens of Singapore nor resident in Singapore; or (B) if it has more than 50 shareholders, not less than 95% of the total number of its issued shares beneficially owned, directly or indirectly, by persons who are neither citizens of Singapore nor resident in Singapore; ( c ) foreign trusts; ( d ) other philanthropic purpose trusts that inject funds or assets from their foreign accounts; or ( e ) any other persons that are neither — (i) resident in Singapore; nor (ii) constituted or registered under any written law in Singapore; “foreign trust” has the meaning given by section 13F; “philanthropic purpose trust” means a trust established in writing under any law for a purpose which is for the public benefit and which falls within any of the following descriptions of purposes: ( a ) the prevention or relief of poverty; ( b ) the advancement of education; ( c ) the advancement of religion; ( d ) the advancement of health; ( e ) the advancement of citizenship or community development; ( f ) the advancement of the arts, heritage or science; ( g ) the advancement of environmental protection or improvement; ( h ) the relief of those in need by reason of youth, age, ill health, disability, financial hardship or other disadvantage; ( i ) the advancement of animal welfare; ( j ) the advancement of any sport which involves physical skill and exertion; ( k ) any other purpose beneficial to the community; “trustee company” has the meaning given by section 43G(2). [32/2019] (4) The Minister or an authorised body may in any particular case waive any requirement referred to in paragraph ( b )(ii) to (v) of the definition of “foreign account” in subsection (3). [Act 41 of 2020 wef 06/12/2022] (5) This section does not apply to — ( a ) a trust that is constituted on or after 1 January 2028; [Act 35 of 2024 wef 27/11/2024] ( b ) a company that is incorporated on or after 1 January 2028; [Act 35 of 2024 wef 27/11/2024] ( c ) a trust that — (i) is constituted before 1 January 2028; and [Act 35 of 2024 wef 27/11/2024] (ii) in the basis period in which 31 December 2027 falls, is not a philanthropic purpose trust that — (A) has a foreign account; and (B) is administered by a trustee company in Singapore; or [Act 35 of 2024 wef 27/11/2024] ( d ) a company — (i) is incorporated before 1 January 2028; and [Act 35 of 2024 wef 27/11/2024] (ii) in the basis period in which 31 December 2027 falls, is not an eligible holding company established for the purposes of a philanthropic purpose trust which satisfies the requirements in paragraph ( c )(ii)(A) and (B). [37/2014; 32/2019] [Act 35 of 2024 wef 27/11/2024] (6) Where, in any basis period beginning on or after 1 January 2028, a trust or company does not satisfy the applicable requirement referred to in subsection (7), then this section does not apply to the trust or company for the year of assessment to which that basis period relates, and for every subsequent year of assessment even if that requirement is satisfied in the basis period for the subsequent year of assessment. [37/2014; 32/2019] [Act 35 of 2024 wef 27/11/2024] (7) In subsection (6), the requirement is — ( a ) in the case of the trust, that it is a philanthropic purpose trust that has a foreign account and is administered by a trustee company in Singapore; or ( b ) in the case of the company, that it is an eligible holding company established for the purposes of a philanthropic purpose trust which satisfies all of the requirements in paragraph ( a ). [37/2014] (8) Where, in any basis period beginning on or after 1 January 2028, the trustee company which administers a philanthropic purpose trust fails to comply with any of the regulations under subsection (1), then this section does not apply to the trust or the eligible holding company established for the purposes of the trust for the year of assessment to which that basis period relates, and for every subsequent year of assessment even if those regulations are satisfied in the basis period for the subsequent year of assessment. [13O [37/2014; 32/2019] [Act 35 of 2024 wef 27/11/2024]


document_id: ita-1947
provision_ref: s13M
chapter: PART 4 - EXEMPTION FROM INCOME TAX
section: 13M
title: Exemption of income derived from asset securitisation transaction
content:
13M. —(1) There is exempt from tax, subject to such conditions as may be prescribed by regulations, income derived by an approved securitisation company resident in Singapore from asset securitisation transaction entered into during the period from 27 February 2004 to 31 December 2028 (both dates inclusive). [45/2018] [Act 30 of 2023 wef 30/10/2023] (2) Regulations made under subsection (1) may provide for the deduction of expenses, allowances and losses of an approved securitisation company otherwise than in accordance with this Act. (3) Despite anything in this section, where it appears to the Comptroller that any income of an approved securitisation company which has been exempted from tax under subsection (1) ought not to have been so exempted for any year of assessment, the Comptroller may, at any time within 4 years after the expiry of that year of assessment, make such assessment or additional assessment upon the company as may appear to be necessary in order to make good any loss of tax. (3A) Parts 17 and 18 (relating to assessments, objections and appeals) and any rules made under this Act apply, with the necessary modifications, as if an assessment under subsection (3) were a notice of assessment. (4) In this section — “approved securitisation company” means a company incorporated in Singapore principally to conduct asset securitisation transaction and is approved by the Minister or an authorised body; [Act 41 of 2020 wef 06/12/2022] “asset securitisation transaction” means the acquisition of assets (other than immovable property in Singapore) or risks by an approved securitisation company where the acquisition of such assets or risks is funded through the issuance of asset‑backed securities by the company. [13P


document_id: ita-1947
provision_ref: s13N
chapter: PART 4 - EXEMPTION FROM INCOME TAX
section: 13N
title: Exemption of relevant income of prescribed locally‑administered trust
content:
13N. —(1) There is exempt from tax all relevant income of — ( a ) such locally‑administered trust as the Minister may by regulations prescribe; and ( b ) a holding company established for the purposes of such trust, as the Minister may by regulations prescribe. (2) Where any relevant income of a prescribed locally‑administered trust is exempt from tax under subsection (1) in any year of assessment, the share of such income to which any beneficiary of the locally‑administered trust is entitled to receive for that year of assessment is also exempt from tax. (3) In this section — “locally‑administered trust” means a trust administered by a trustee company in Singapore — ( a ) every settlor of which is an individual; ( b ) every beneficiary of which is an individual or a charitable institution, trust or body of persons established for charitable purposes only; and ( c ) at least one of the beneficiaries of which is not a settlor of the trust; “relevant income” means — ( a ) any income of the kinds referred to in section 13(1)( zd ), ( ze ), ( zf ), ( zh ), ( zi ), ( zj ), ( zk ) or ( zl ) accrued in or derived from Singapore on or after 17 February 2006; or ( b ) any income of the kinds referred to in section 13(7A) received in Singapore on or after 17 February 2006; [Act 35 of 2024 wef 27/11/2024] “trustee company” has the meaning given by section 43G(2). (4) This section does not apply to — ( a ) a trust that is constituted on or after 1 January 2028; [Act 35 of 2024 wef 27/11/2024] ( b ) a company that is incorporated on or after 1 January 2028; [Act 35 of 2024 wef 27/11/2024] ( c ) a trust that — (i) is constituted before 1 January 2028; and [Act 35 of 2024 wef 27/11/2024] (ii) in the basis period in which 31 December 2027 falls, is not a locally‑administered trust prescribed under subsection (1) (called in this subsection and subsection (6) a prescribed trust); or [Act 35 of 2024 wef 27/11/2024] ( d ) a company that — (i) is incorporated before 1 January 2028; and [Act 35 of 2024 wef 27/11/2024] (ii) in the basis period in which 31 December 2027 falls, is not a holding company established for the purposes of a prescribed trust, and prescribed under subsection (1). [37/2014; 32/2019] [Act 35 of 2024 wef 27/11/2024] (5) Where, in any basis period beginning on or after 1 January 2028, a trust or company does not satisfy the requirement referred to in subsection (6), then this section does not apply to the trust or company for the year of assessment to which that basis period relates, and for every subsequent year of assessment even if the requirement is satisfied in the basis period for the subsequent year of assessment. [37/2014; 32/2019] [Act 35 of 2024 wef 27/11/2024] (6) In subsection (5), the requirement is — ( a ) in the case of the trust, that it is a prescribed trust; or ( b ) in the case of the company, that it is a holding company established for the purposes of a prescribed trust, and prescribed under subsection (1). [37/2014] (7) Where, in any basis period beginning on or after 1 January 2028, the trustee company which administers a locally‑administered trust fails to comply with any of the regulations made under subsection (1), then this section does not apply to the trust or the holding company established for the purposes of the trust for the year of assessment to which that basis period relates, and for every subsequent year of assessment even if those regulations are satisfied in the basis period for the subsequent year of assessment. [13Q [37/2014; 32/2019] [Act 35 of 2024 wef 27/11/2024]


document_id: ita-1947
provision_ref: s13O
chapter: PART 4 - EXEMPTION FROM INCOME TAX
section: 13O
title:
Exemption of income of company incorporated and resident in Singapore arising from funds managed by fund manager in Singapore

content:
13O. —(1) Subject to such conditions as may be prescribed by regulations, specified in the letter of approval of the company, or specified from time to time by the Minister or an authorised body and either notified to the company or published in a manner that the Minister or authorised body reasonably believes will bring the conditions to the notice of the company, there is exempt from tax such income as the Minister may by regulations prescribe of a company incorporated and resident in Singapore and approved by the Minister or an authorised body (called in this section an approved company) arising from funds managed — ( a ) in Singapore by a fund manager; or ( b ) by a person approved by the Minister or authorised body. [Act 41 of 2020 wef 06/12/2022] [Act 35 of 2024 wef 17/02/2024] (1A) The approval of a person under subsection (1) is subject to such conditions as the Minister or an authorised body may impose. [Act 35 of 2024 wef 17/02/2024] (1B) The Minister or authorised body may at any time add, vary or delete a condition of an approval under subsection (1A), including (to avoid doubt) an approval given before the date of commencement of section 9( c ) of the Income Tax (Amendment) Act 2024. [Act 35 of 2024 wef 27/11/2024] (1C) Any addition, variation or deletion of a condition under subsection (1B) must be given to the approved company or published in a manner that the Minister or authorised body reasonably believes will bring the addition, variation or deletion to the attention of the approved company. [Act 35 of 2024 wef 27/11/2024] (2) No approval may be granted under subsection (1) after 31 December 2029. [37/2014; 32/2019] [Act 35 of 2024 wef 27/11/2024] (3) Where — ( a ) income of any approved company has been exempt from tax under subsection (1) in any year of assessment; and ( b ) a person (called in this section the relevant owner), either alone or together with the relevant owner’s associates, beneficially owns on the relevant day issued securities of the approved company the value of which is more than the prescribed percentage of the total value of all issued securities of the approved company on the relevant day, then the relevant owner is liable to pay to the Comptroller, in such manner and within such reasonable time as may be determined by the Comptroller, a penalty to be computed in accordance with the formula where A is the percentage which the value of the issued securities of the approved company beneficially owned on the relevant day by the relevant owner bears to the total value of all issued securities of the approved company on the relevant day; B is the amount of income of the approved company as reflected in the audited account of the approved company for the basis period relating to that year of assessment; and C is the tax rate specified in section 43(1)( a ) applicable to that year of assessment. (4) Subsection (3) does not apply to a relevant owner if — ( a ) the Comptroller permits the relevant owner to take steps to reduce the ownership of the issued securities by the relevant owner or the relevant owner’s associates within such period as the Comptroller may specify, being a period of no more than 3 months from the relevant day; and ( b ) by the end of the specified period, the value of the issued securities beneficially owned by the relevant owner together with the relevant owner’s associates is no more than the prescribed percentage of the total value of all issued securities of the approved company on the relevant day. (5) Despite subsection (3), where — ( a ) income of any approved company has been exempt from tax under subsection (1) in any year of assessment; ( b ) a person, either alone or together with the person’s associates, beneficially owns on the relevant day any issued securities of the approved company; and ( c ) the person mentioned in paragraph ( b ) is a non‑bona fide entity, then the person mentioned in paragraph ( b ) is not liable to pay the penalty referred to in subsection (3); but a person (called in this section the liable person) who — ( d ) beneficially owns on the relevant day equity interests of the person mentioned in paragraph ( b ); and ( e ) is not himself, herself or itself a non‑bona fide entity, is liable to pay to the Comptroller, in such manner and within such reasonable time as may be determined by the Comptroller, a penalty to be computed in accordance with the formula specified in subsection (5A), if, and only if, the total of — ( f ) the value of the equity interests of the approved company beneficially owned by the liable person on the relevant day; and ( g ) the value of the equity interests of the approved company beneficially owned by the associates of the liable person on the relevant day, exceeds the prescribed percentage of the total value of all the equity interests of the approved company on that day. (5A) The formula for the penalty referred to in subsection (5) is as follows: where A is the percentage which the value of the equity interests of the approved company beneficially owned on the relevant day by the liable person bears to the total value of all equity interests of the approved company on the relevant day; B is the amount of income of the approved company as reflected in the audited account of the approved company for the basis period relating to that year of assessment; and C is the tax rate applicable to that year of assessment as specified in section 43(1)( a ). (5B) Subsection (4) applies, with the necessary modifications, to the liable person as it applies to a relevant owner as if the reference to subsection (3) is a reference to subsection (5). (6) For the purposes of subsections (5)( d ), ( f ) and ( g ) and (5A), if — ( a ) a person beneficially owns (including by virtue of one or more applications of this subsection) equity interests of a person (called in this subsection a first level entity); and ( b ) the first level entity beneficially owns equity interests of another person (called in this subsection a second level entity), then the firstmentioned person is taken to beneficially own equity interests of the second level entity; and the percentage which the value of those equity interests bears to the total value of all equity interests of the second level entity is computed in accordance with the formula where A is the percentage which the value of equity interests of the first level entity beneficially owned by the firstmentioned person bears to the total value of all equity interests of the first level entity; and B is the percentage which the value of equity interests of the second level entity beneficially owned by the first level entity bears to the total value of all equity interests of the second level entity. (6A) The Minister or an authorised body may at any time, in the discretion of the Minister or authorised body and subject to such conditions as the Minister or authorised body may impose, remit or refund, wholly or in part, the penalty that is payable or paid by a person under subsection (3) or (5); and section 92(2B) to (2E) applies, with the necessary modifications, to any non‑compliance with any such condition as it applies to the non‑compliance with a condition imposed under section 92(2). [37/2014] [Act 41 of 2020 wef 06/12/2022] (7) Regulations made under this section may — ( a ) provide for the determination of the amount of income of any approved company to be exempt from tax; ( b ) provide for the circumstances under which a person would be considered to be an associate for the purposes of this section; ( c ) exempt any person or class of persons from subsection (3) or (5); [Act 35 of 2024 wef 27/11/2024] ( ca ) provide for the revocation, or the suspension for a period specified by the Minister or authorised body, of an approval granted under subsection (1) (including one that is granted before the date of commencement of the regulations) for non-compliance with a condition of the approval, and for any revocation to take effect from any date, including (if it is just and reasonable to do so) — (i) a date before the date of the non-compliance with the condition; or (ii) if the condition is to be complied with over a period of time, before the date of commencement of that period; and [Act 35 of 2024 wef 27/11/2024] ( d ) make provision generally for giving full effect to or for carrying out the purposes of this section. (7A) To avoid doubt, where — ( a ) an exemption had been allowed under this section on the income of an approved company; ( b ) the exemption would not have been allowed had the company not been approved under subsection (1) on the date the income accrued to or was derived or received by the company; and ( c ) the approval is revoked under regulations made under subsection (7)( ca ) with effect from or before that date, the Comptroller may make an assessment or additional assessment under section 74 on the company. [Act 35 of 2024 wef 27/11/2024] (7B) Where the approval of a company under subsection (1) is suspended pursuant to regulations made under subsection (7)( ca ), the company is treated as not an approved company during the period of suspension. [Act 35 of 2024 wef 27/11/2024] (8) In this section — “equity interest” means — ( a ) in relation to a company, any issued security of that company; or ( b ) in relation to a person other than a company, such right or interest as may be prescribed; “issued securities”, in relation to a company, means — ( a ) issued debentures of, or issued stocks or shares in, the company; ( b ) any right, option or derivative in respect of any such debentures, stocks or shares; or ( c ) such other securities of the company as may be prescribed; “non‑bona fide entity” means a person not resident in Singapore (excluding a permanent establishment in Singapore) who — ( a ) is set up solely for the purpose of avoiding or reducing payment of tax or penalty under this Act; or ( b ) does not carry out any substantial business activity for a genuine commercial reason; “relevant day” means — ( a ) the last day of the basis period of the approved company for the year of assessment referred to in subsection (3) or (5), as the case may be; or ( b ) if within that basis period the approved company ceases to be so approved, the last day it was so approved; “value” — ( a ) in relation to issued securities of a company other than those prescribed under paragraph ( c ) of the definition of “issued securities”, means — (i) where the relevant day is before 1 April 2014, the value of those securities at the time of their issue by the company; and (ii) where the relevant day falls on or after 1 April 2014, the net asset value of those securities as at the relevant day; or ( b ) in relation to issued securities of a company prescribed under paragraph ( c ) of the definition of “issued securities”, means — (i) where the relevant day is before 1 April 2014, the value of those securities at the prescribed time; and (ii) where the relevant day falls on or after 1 April 2014, the net asset value of those securities as at the relevant day. [37/2014; 2/2016] (9) The Minister may by regulations make such transitional and saving provisions as the Minister may consider necessary or expedient in relation to the repeal of section 13R of this Act as in force immediately before 1 September 2007. [13R


document_id: ita-1947
provision_ref: s13OA
chapter: PART 4 - EXEMPTION FROM INCOME TAX
section: 13OA
title:
Exemption of income of partners of limited partnership arising from funds managed by fund manager in Singapore

content:
13OA. —(1) Subject to such conditions as may be — ( a ) prescribed by regulations; ( b ) specified in the letter of approval of the limited partnership; or ( c ) specified from time to time by the Minister or an authorised body and either notified to the limited partnership or published in a manner that the Minister or authorised body reasonably believes will bring the conditions to the notice of the limited partnership, there is exempt from tax such income as the Minister may by regulations prescribe of a partner of a limited partnership registered under the Limited Partnerships Act 2008, and approved by the Minister or an authorised body (called in this section an approved limited partnership) arising from funds managed — ( d ) in Singapore by a fund manager; or ( e ) by a person approved by the Minister or authorised body. (2) The approval of a limited partnership under subsection (1) is subject to such conditions as the Minister or an authorised body may impose. (3) The Minister or an authorised body may at any time add, vary or delete a condition of an approval under subsection (2). (4) Any addition, variation or deletion of a condition under subsection (3) must be given to the approved limited partnership or published in a manner that the Minister or authorised body reasonably believes will bring the addition, variation or deletion to the attention of the approved limited partnership. (5) No approval may be granted under subsection (1) after 31 December 2029. (6) Where — ( a ) income of a partner ( X ) of an approved limited partnership ( Y ) has been exempt from tax under subsection (1) in any year of assessment; and ( b ) X , either alone or together with X ’s associates, beneficially owns on the relevant day equity interests in Y the value of which is more than the prescribed percentage of the total value of all equity interests in Y on the relevant day, then X is liable to pay to the Comptroller, in such manner and within such reasonable time as may be determined by the Comptroller, a penalty to be computed in accordance with the formula where — ( c ) A is the percentage which the value of the equity interests in Y beneficially owned on the relevant day by X bears to the total value of all equity interests in Y on the relevant day; ( d ) B is the amount of Y ’s income as reflected in its certified statement of accounts for the basis period relating to that year of assessment; and ( e ) C is the tax rate specified in section 43(1)( a ) applicable to that year of assessment. (7) Subsection (6) does not apply to X if — ( a ) the Comptroller permits X to take steps to reduce the beneficial ownership of X and X ’s associates of equity interests in Y within such period as the Comptroller may specify, being a period of no more than 3 months from the relevant day; and ( b ) by the end of the specified period, the value of the equity interests beneficially owned by X and X ’s associates is no more than the prescribed percentage of the total value of all equity interests in Y on the relevant day. (8) Despite subsection (6), where — ( a ) income of a partner ( X ) of an approved limited partnership ( Y ) has been exempt from tax under subsection (1) in any year of assessment; ( b ) X , either alone or together with X ’s associates, beneficially owns on the relevant day any equity interests in Y ; and ( c ) X is a non-bona fide entity, then X is not liable to pay the penalty mentioned in subsection (6), but a person ( X1 ) that — ( d ) beneficially owns on the relevant day equity interests in X ; and ( e ) is not himself, herself or itself a non-bona fide entity, is liable to pay to the Comptroller, in such manner and within such reasonable time as may be determined by the Comptroller, a penalty to be computed in accordance with the formula specified in subsection (9), if (and only if) the total of — ( f ) the value of the equity interests in Y beneficially owned by X1 on the relevant day; and ( g ) the value of the equity interests in Y beneficially owned by the associates of X1 on the relevant day, exceeds the prescribed percentage of the total value of all the equity interests in Y , on that day. (9) The formula for the penalty in subsection (8) is as follows: where — ( a ) A is the percentage which the value of the equity interests in Y beneficially owned on the relevant day by X1 bears to the total value of all equity interests in Y on the relevant day; ( b ) B is the amount of Y ’s income as reflected in its certified statement of accounts for the basis period relating to that year of assessment; and ( c ) C is the tax rate applicable to that year of assessment as specified in section 43(1)( a ). (10) Subsection (7) applies, with the necessary modifications, to X1 as it applies to X as if the reference to subsection (6) were to subsection (8). (11) For the purposes of subsections (8)( d ), ( f ) and ( g ) and (9), if — ( a ) an entity beneficially owns (including by virtue of one or more applications of this subsection) equity interests of an entity (called in this subsection a first level entity); and ( b ) the first level entity beneficially owns equity interests of another entity (called in this subsection a second level entity), then the firstmentioned entity is taken to beneficially own equity interests of the second level entity; and the percentage which the value of those equity interests bears to the total value of all equity interests of the second level entity is computed in accordance with the formula where — ( c ) A is the percentage which the value of equity interests of the first level entity beneficially owned by the firstmentioned entity bears to the total value of all equity interests of the first level entity; and ( d ) B is the percentage which the value of equity interests of the second level entity beneficially owned by the first level entity bears to the total value of all equity interests of the second level entity. (12) The Minister or an authorised body may at any time, in the discretion of the Minister or authorised body and subject to such conditions as the Minister or authorised body may impose, remit or refund, wholly or in part, the penalty that is payable or paid by a person under subsection (6) or (8); and section 92(2B) to (2E) applies, with the necessary modifications, to any non-compliance with any such condition as it applies to the non-compliance with a condition imposed under section 92(2). (13) Regulations made under this section may — ( a ) provide for the determination of the amount of income of a partner of any approved limited partnership to be exempt from tax; ( b ) provide for the circumstances under which a person would be considered to be an associate for the purposes of this section; ( c ) exempt any person or class of persons from subsection (6) or (8); ( d ) provide for the revocation, or the suspension for a period specified by the Minister or an authorised body, of an approval granted under subsection (1) (including one that is granted before the date of commencement of the regulations) for non-compliance with a condition of the approval, and for any revocation to take effect from any date, including (if it is just and reasonable to do so) — (i) a date before the date of the non-compliance with the condition; or (ii) if the condition is to be complied with over a period of time, before the date of commencement of that period; and ( e ) make provision generally for giving full effect to or for carrying out the purposes of this section. (14) To avoid doubt, where — ( a ) an exemption had been allowed under this section on the income of partner of a limited partnership; ( b ) the exemption would not have been allowed had the limited partnership not been approved under subsection (1) on the date the income accrued to or was derived or received by the partner; and ( c ) the approval is revoked under regulations made under subsection (13)( d ) with effect from or before that date, the Comptroller may make an assessment or additional assessment under section 74 on the partner. (15) Where the approval of a limited partnership under subsection (1) is suspended pursuant to regulations made under subsection (13)( d ), the limited partnership is treated as not an approved limited partnership during the period of suspension. (16) In this section — “certified statement of accounts”, in relation to a limited partnership, means its profit and loss account and balance sheet that are certified as true and correct by its precedent partner; “equity interest” — ( a ) in relation to a company — means any issued security of that company; ( b ) in relation to a partnership or a limited partnership — means a share in the profits of the partnership; or ( c ) in relation to any other person — means such right or interest as may be prescribed; “issued security”, in relation to a company, means — ( a ) any issued debenture of, or issued stock or share in, the company; ( b ) any right, option or derivative in respect of any such debenture, stock or share; or ( c ) such other security of the company as may be prescribed; “non-bona fide entity” has the meaning given by section 13O(8); “relevant day” means — ( a ) the last day of the basis period of the approved limited partnership for the year of assessment mentioned in subsection (6) or (8), as the case may be; or ( b ) if within that basis period the approved limited partnership ceases to be so approved, the last day it was so approved; “value”, in relation to equity interests of X that is a company, means the net asset value of the equity interests in X as at the relevant day. [Act 35 of 2024 wef 01/01/2025]


document_id: ita-1947
provision_ref: s13P
chapter: PART 4 - EXEMPTION FROM INCOME TAX
section: 13P
title: Exemption of income of shipping investment enterprise
content:
13P. —(1) Subject to subsections (1G) and (4), there is exempt from tax the income derived by an approved shipping investment enterprise — ( a ) before 25 March 2016 from the chartering or finance leasing of any seagoing ship, acquired by the approved shipping investment enterprise before or during the period of its approval referred to in subsection (3), to — (i) a person who is neither resident in Singapore nor a permanent establishment in Singapore; or (ii) an approved international shipping enterprise, for use outside the limits of the port of Singapore; ( b ) before 25 March 2016 from the chartering or finance leasing of any seagoing Singapore ship, acquired by the approved shipping investment enterprise before or during the period of its approval referred to in subsection (3), to a shipping enterprise within the meaning of section 13A for use outside the limits of the port of Singapore; ( c ) before 25 March 2016, for the year of assessment 2009 and subsequent years of assessment, from foreign exchange and risk management activities which are carried out in connection with and incidental to the activities referred to in paragraphs ( a ) and ( b ); ( ca ) on or after 25 March 2016 from the chartering or finance leasing of any seagoing ship acquired by the approved shipping investment enterprise before or during the period of its approval mentioned in subsection (3), for use outside the limits of the port of Singapore; ( cb ) on or after 25 March 2016 from foreign exchange and risk management activities which are carried out in connection with and incidental to any activity mentioned in paragraph ( ca ); ( cc ) on or after 12 December 2018 from the chartering or finance leasing by the approved shipping investment enterprise of any seagoing ship, for use by the lessee outside the limits of the port of Singapore, if the ship was — (i) acquired by an approved related party before or during the period of its approval under subsection (3); and (ii) chartered, or leased under a finance lease, by the approved related party to the approved shipping investment enterprise; ( cd ) on or after 12 December 2018 from foreign exchange and risk management activities that are carried out in connection with and incidental to an activity mentioned in paragraph ( cc ); and ( d ) on or after 1 June 2011 from — (i) the sale of a seagoing ship; (ii) the assignment to another of all its rights as the buyer under a contract for the construction of a seagoing ship; or (iii) the sale of all of the issued ordinary shares in a special purpose company of the approved shipping investment enterprise where, at the time of the sale of the shares, the special purpose company owns any seagoing ship or is the buyer under a contract for the construction of any seagoing ship. [34/2016; 32/2019] (1A) Subsection (1), in relation to income referred to in paragraph ( a ), ( b ), ( c ), ( ca ) or ( cb ) of that subsection, continues to apply to a shipping investment enterprise the approval of which has expired or been withdrawn, but which continues to derive such income in relation to a seagoing ship acquired before or during the period of the approval, provided that the enterprise has by the date of the expiry or before the withdrawal, fulfilled all the conditions referred to in subsection (3); and any reference in this section to an approved shipping investment enterprise is to be construed accordingly. [34/2016] (1B) In relation to income mentioned in subsection (1)( cc ) or ( cd ), subsection (1) continues to apply to a shipping investment enterprise the approval of which has expired or been withdrawn, but that continues to derive such income, if both the shipping investment enterprise and the related party mentioned in subsection (1)( cc ) have, by the date of the expiry or before the withdrawal, fulfilled all the conditions of their respective approvals under subsection (3). [32/2019] (1C) For the purpose of subsection (1B), the shipping investment enterprise is treated under this section as an approved shipping investment enterprise. [32/2019] (1D) Subsection (1)( ca ) and ( cc ) does not apply to — ( a ) income derived between 12 December 2018 and 18 February 2025 (both dates inclusive) from the chartering or finance leasing of a seagoing ship that is acquired by the approved shipping 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 chartering or finance leasing of a seagoing ship that is acquired by the approved shipping 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] (1DA) Subsection (1)( ca ) and ( cc ) also does not apply to any income derived by an approved shipping investment enterprise as part of a business of trading in seagoing ships or constructing seagoing ships for sale. [41/2020] (1E) Subsections (1)( cc ) and ( cd ) and (1B) apply to income derived by an approved shipping investment enterprise in relation to a ship acquired by the related party before the period of the approval of the related party, if and only if the approved shipping investment enterprise is approved on or after 1 April 2008. [32/2019] (1F) Subsection (1)( d ) does not apply to — ( a ) any income of an approved shipping investment enterprise derived before 12 December 2018 as a lessor of a seagoing ship under a finance lease that is treated as a sale under section 10C; or ( b ) any income of an approved shipping investment enterprise that is derived as part of a business of trading in seagoing ships or of constructing seagoing ships for sale. [32/2019; 41/2020] (1G) Subsections (1) and (1A) apply to income derived by an approved shipping investment enterprise in relation to a seagoing ship acquired before the period of its approval, if and only if the enterprise is approved on or after 1 April 2008. [32/2019] (2) The Minister or an authorised body may, at any time between 1 March 2006 and 31 December 2031 (both dates inclusive), approve a shipping investment enterprise or a related party of an approved shipping 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] (3) The approval under subsection (2) is subject to such conditions as the Minister may specify, and is — ( a ) where the approval is granted during the period between 1 March 2006 and 28 February 2011 (both dates inclusive), 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), 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] (3A) A reference to the Minister in subsection (3), in the case of an approval granted on or after the date of commencement of section 5(1)( a ) of the Income Tax (Amendment) Act 2021, includes the authorised body. [Act 27 of 2021 wef 12/04/2024] (4) The Minister or an authorised body may, in respect of any seagoing ship or class of seagoing ships, specify the period during which the income of the seagoing ship or class of seagoing ships may be exempted from tax under subsection (1) not exceeding — ( a ) in the case of any ship used for the carriage of goods or passengers, towage or salvage, a period of 30 years; or ( b ) in the case of any dredger, seismic ship or any ship used for offshore oil or gas activity, offshore renewable energy activity, renewable energy activity or offshore mineral activity, a period of 40 years. [34/2016] [Act 41 of 2020 wef 12/04/2024] [Act 25 of 2025 wef 19/02/2025] (5) In determining the amount of the income of an approved shipping investment enterprise which is exempted under subsection (1), the allowances provided for in sections 16, 17, 18, 18B, 18C, 19, 19A, 20, 21, 22 and 23, other than allowances made to a lessee of a seagoing ship under regulations made under section 10C — ( a ) must be taken into account even if no claim for those allowances has been made; and ( b ) may only be deducted against the income referred to in subsection (1), and the balance of those allowances is not available as a deduction against any other income, except that any balance remaining unabsorbed at the end of the tax exempt period of the enterprise is available as a deduction against any other income for the year of assessment which relates to the basis period in which the tax exemption ceases and for any subsequent year of assessment in accordance with section 23. (6) Where an approved shipping investment enterprise incurs a loss during the tax exempt period in respect of any activity referred to in paragraphs ( a ), ( b ), ( c ), ( ca ), ( cb ), ( cc ) and ( cd ) of subsection (1), that loss — ( a ) must be deducted in accordance with section 37; and ( b ) may only be deducted against the income referred to in any of those paragraphs, and the balance of such loss is not available as a deduction against any other income, except that any balance remaining unabsorbed at the end of the tax exempt period is available as a deduction against any other income for the year of assessment which relates to the basis period in which the tax exemption ceases and for any subsequent year of assessment in accordance with section 37. [34/2016; 32/2019] (6A) Where an approved shipping investment enterprise incurs a loss on any sale or assignment mentioned in subsection (1)( d ) in any basis period falling, in whole or in part, within the tax exempt period, that loss may only be deducted against the gains derived from another sale or assignment mentioned in subsection (1)( d ) in that same basis period, and the balance of the loss is not available as a deduction against any other income. (7) The Comptroller must for each year of assessment for which the income of an approved shipping investment enterprise is exempt from tax under subsection (1) issue to the enterprise a statement (to be included in a notice of any assessment served on the enterprise under section 76) showing the amount of income exempt from tax under subsection (1); and Parts 17 and 18 (relating to assessments, objections and appeals) and any rules made under this Act apply, with the necessary modifications, as if such statement were a notice of assessment. (8) Where any statement issued to an approved shipping investment enterprise under subsection (7) has become final and conclusive, the amount of income shown in the statement does not form part of the statutory income of the enterprise for the year of assessment to which the statement relates and is exempt from tax. (9) [ Deleted by Act 19 of 2013 ] (10) [ Deleted by Act 19 of 2013 ] (11) [ Deleted by Act 19 of 2013 ] (12) [ Deleted by Act 19 of 2013 ] (13) [ Deleted by Act 19 of 2013 ] (14) [ Deleted by Act 19 of 2013 ] (15) [ Deleted by Act 19 of 2013 ] (16) [ Deleted by Act 19 of 2013 ] (17) An approved shipping investment enterprise must deliver to the Comptroller a statement of the account made up to any date specified by the Comptroller whenever called upon to do so by written notice. (18) Despite anything in this section, where it appears to the Comptroller that any income of an approved shipping investment enterprise which has been exempted from tax under subsection (1) ought not to have been so exempted for any year of assessment, the Comptroller may, at any time within 4 years after the expiry of that year of assessment, make such assessment or additional assessment upon the enterprise as may appear to be necessary in order to make good any loss of tax. (19) Par


document_id: ita-1947
provision_ref: s13Q
chapter: PART 4 - EXEMPTION FROM INCOME TAX
section: 13Q
title: Exemption of trust income to which beneficiary is entitled
content:
13Q. —(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 exempt from tax in the beneficiary’s hands if it would have been exempt from tax under any provision of this Part had it been derived or received directly by the beneficiary rather than the trustee. (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. [13T [37/2014]


document_id: ita-1947
provision_ref: s13QA
chapter: PART 4 - EXEMPTION FROM INCOME TAX
section: 13QA
title: Exemption of estate income received by beneficiary, etc.
content:
13QA. Where a 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 exempt from tax in the person’s hands if it would have been exempt from tax under any provision of this Part had it been derived or received directly by that person instead of the executor of the estate. [Act 30 of 2023 wef 30/10/2023]


document_id: ita-1947
provision_ref: s13R
chapter: PART 4 - EXEMPTION FROM INCOME TAX
section: 13R
title: Exemption of income of not‑for‑profit organisation
content:
13R. —(1) There is exempt from tax any income of an approved not‑for‑profit organisation. (2) The Minister or an authorised body may, during the period from 15 February 2007 to 31 December 2027 (both dates inclusive), approve any not‑for‑profit organisation for the purposes of subsection (1). [37/2014; 34/2016; 27/2021] [Act 41 of 2020 wef 12/04/2024] (3) The approval under subsection (2) is subject to such conditions as the Minister or an authorised body may impose and is for such period not exceeding 10 years as the Minister or authorised body may specify. [Act 41 of 2020 wef 12/04/2024] (4) Despite subsection (2), the period specified under subsection (3) may be extended on expiry by the Minister or an authorised body for such further period or periods, not exceeding 10 years at any one time, as the Minister or authorised body thinks fit. [Act 41 of 2020 wef 12/04/2024] (5) The Minister may make regulations to provide for the deduction of expenses, allowances and losses of an approved not‑for‑profit organisation otherwise than in accordance with this Act. (6) Despite subsection (1), where it appears to the Comptroller that any income of an approved not‑for‑profit organisation which has been exempted from tax under subsection (1) ought not to have been so exempted for any year of assessment, the Comptroller may at any time, subject to section 74, make such assessment or additional assessment on the approved not‑for‑profit organisation as may appear to be necessary in order to make good any loss of tax. (6A) Any expenses, losses or allowances incurred or claimed by an approved not‑for‑profit organisation during the period of its approval under subsection (3) or (4) that remain unabsorbed at the end of that period, are not available as a deduction against any of its income for the year of assessment which relates to the basis period in which the approval of the approved not‑for‑profit organisation expires or is withdrawn, or any subsequent year of assessment. [27/2021] (7) In this section, “not‑for‑profit organisation” means any person, not being a person registered or exempt from registration under the Charities Act 1994 — ( a ) who is not established or operated for the object of deriving a profit; ( b ) whose income and property — (i) may only be applied for the furtherance of its objects; and (ii) are not distributable to any shareholder, member, trustee or officer of the person except as reasonable compensation for services rendered; and ( c ) whose property may only be distributed to persons established for a similar object as that person’s upon that person’s dissolution. [13U


document_id: ita-1947
provision_ref: s13S
chapter: PART 4 - EXEMPTION FROM INCOME TAX
section: 13S
title: Exemption of income derived by law practice from international arbitration held in Singapore
content:
13S. —(1) Any law practice intending to provide legal services in connection with any international arbitration may, from 1 July 2007 to 30 June 2017 (both dates inclusive), apply to the Minister, or such person as the Minister may appoint, for approval as an approved law practice. (2) Where the Minister, or such person as the Minister may appoint, considers it expedient in the public interest to do so, the Minister or appointed person may approve the application and issue a letter to the law practice subject to such conditions as the Minister or appointed person thinks fit. (2A) No approval under this section may be granted to any law practice which is approved on or after 1 April 2010 as a development and expansion company under Part 4 of the Economic Expansion Incentives (Relief from Income Tax) Act 1967 in respect of international services that qualify for zero‑rating under section 21(3) of the Goods and Services Tax Act 1993, and such approval remains in force. (3) Every letter issued under subsection (2) must specify a date as the commencement day from which the approved law practice is entitled to tax relief under this section. (4) The tax relief period of an approved law practice commences on its commencement day and continues for such period, not exceeding 5 years, as is specified in the letter issued to it under subsection (2). (5) The amount of the income of an approved law practice which will qualify for the relief for any year of assessment is the excess of the total amount of the qualifying income of the approved law practice for the basis period for that year of assessment over its base income. (6) Where an approved law practice has satisfied the conditions specified in the letter issued to it under subsection (2), one‑half of the amount of the income of the approved law practice for any year of assessment for a basis period that falls within the tax relief period which qualifies for the relief as ascertained under subsection (5) does not form part of the statutory income of the approved law practice for that year of assessment and is exempt from tax. (6A) For the purpose of satisfying the Comptroller that its income qualifies for relief under this section, the approved law practice must provide, not later than 5 years after the end of its tax relief period, evidence of the place of hearing or intended place of hearing (as the case may be) of the international arbitration. (7) Where an approved law practice is a law corporation, the exemption under section 43(6) or (6C) (as the case may be) does not apply to the balance of the qualifying income exceeding the base income of the approved law practice that is not exempt under subsection (6). [45/2018] (8) The base income mentioned in subsection (5) is — ( a ) where an approved law practice had in the period of 3 years immediately preceding the commencement day provided legal services in connection with any qualifying international arbitration — (i) the amount ascertained by dividing the total income derived from providing those legal services in the period by the actual number of years in the period in which those legal services were provided; or (ii) if the amount ascertained under sub‑paragraph (i) is less than zero, deemed to be zero; or ( b ) such amount as the Minister may specify. (9) The Comptroller must determine the manner and extent to which allowances under section 19, 19A, 20, 21, 22 or 23 and any expenses and losses allowable under this Act which are attributable to the qualifying income of an approved law practice are to be deducted. (10) In determining the qualifying income of an approved law practice for the basis period for any year of assessment, there are to be deducted from the income — ( a ) expenses allowable under this Act for that year of assessment which are attributable to that income; and ( b ) any allowances for that year of assessment under section 19, 19A, 20, 21 or 22 attributable to that income even if no claim for those allowances has been made. (11) The Comptroller may require an auditor to certify the income derived by an approved law practice from legal services in connection with any qualifying international arbitration and any direct costs and expenses incurred therefor. (12) Where an approved law practice has in any year of assessment during the tax relief period incurred any loss from providing legal services in connection with any qualifying international arbitration or any allowances attributable to the qualifying income remaining unabsorbed, 50% of the loss or allowances, in each case, is to be deducted as provided for in section 23 or 37 (as the case may be) and the balance is disregarded. (13) [ Deleted by Act 19 of 2013 ] (14) [ Deleted by Act 19 of 2013 ] (15) In this section — “arbitral tribunal”, “award”, “international arbitration” and “party” have the meanings given by the International Arbitration Act 1994; “client”, “foreign law practice”, “Formal Law Alliance”, “Joint Law Venture”, “law corporation” and “Singapore law practice” have the meanings given by the Legal Profession Act 1966; “hearing” means a hearing by the arbitral tribunal on the substance of the dispute; “law practice” means a Singapore law practice, foreign law practice, Formal Law Alliance or Joint Law Venture; “legal services in connection with any qualifying international arbitration” — ( a ) in relation to an approved law practice whose application for approval is made at any time between 1 July 2007 and 30 June 2012 (both dates inclusive), means any professional work of a legal nature provided for the purposes of an international arbitration during the eligible period by any lawyer of the law practice for its client who is a party to the arbitration the hearing of which is held in Singapore during its tax relief period or the period referred to in subsection (8)( a ), as the case may be; or ( b ) in relation to an approved law practice whose application for approval is made at any time between 1 July 2012 and 30 June 2017 (both dates inclusive), means any professional work of a legal nature provided for the purposes of an international arbitration during the eligible period by any lawyer of the law practice for its client who is a party to the arbitration the hearing of which is held or would (if there had been a hearing) have been held in Singapore; “qualifying income” means the income derived by an approved law practice from the provision of legal services in connection with any qualifying international arbitration. [37/2014] (16) For the purposes of the definition of “legal services in connection with any qualifying international arbitration” in subsection (15), “eligible period” means — ( a ) in relation to an approved law practice whose application for approval is made at any time between 1 July 2007 and 30 June 2012 (both dates inclusive), the period beginning on the initial date specified in sub‑paragraph (i) or (ii), whichever is applicable, and ending on the terminal date specified in sub‑paragraph (iii) or (iv), whichever is applicable: (i) where the client in question is the claimant serving the request for arbitration, the initial date is the date of issue of the request; (ii) where the client in question is the respondent being served the request for arbitration, the initial date is the date of receipt of the request for arbitration by the client or law practice; (iii) a terminal date which is the date on which the final award is made by the arbitral tribunal; (iv) a terminal date which is the date on which the arbitration proceeding has otherwise finally terminated; or ( b ) in relation to an approved law practice whose application for approval is made at any time between 1 July 2012 and 30 June 2017 (both dates inclusive), the period beginning on the initial date specified in sub‑paragraph (i) or (ii), whichever is applicable, and ending on the terminal date specified in sub‑paragraph (iii) or (iv), whichever is applicable: (i) where the client in question is the claimant serving the request for arbitration, the initial date is the date of issue of the request; (ii) where the client in question is the respondent being served the request for arbitration, the initial date is the date of receipt of the request for arbitration by the client or law practice; (iii) a terminal date which is the date on which the final award is made by the arbitral tribunal; (iv) a terminal date which is the date on which the arbitration proceeding has otherwise finally terminated, whether or not there was a hearing. [13V


document_id: ita-1947
provision_ref: s13T
chapter: PART 4 - EXEMPTION FROM INCOME TAX
section: 13T
title: Exemption of relevant income of eligible family‑owned investment holding company
content:
13T. —(1) There is exempt from tax all relevant income of an eligible family‑owned investment holding company. (2) For the purposes of subsection (1), the Minister may make regulations to provide for the deduction of expenses, allowances and losses of an eligible family‑owned investment holding company otherwise than in accordance with this Act. (3) In this section — “eligible family‑owned investment holding company” means any company incorporated before 1 April 2013 — ( a ) whose shareholders are related to each other in the manner prescribed by regulations; ( b ) whose operation consists wholly or mainly of the holding or making of investments; and ( c ) which satisfies such other conditions as may be prescribed by regulations; “relevant income” means — ( a ) any income of the kinds referred to in section 13(1)( zd ), ( ze ), ( zf ), ( zh ), ( zi ), ( zj ), ( zk ) or ( zl ) accrued in or derived from Singapore on or after 1 April 2008; or ( b ) any income of the kinds referred to in section 13(7A) received in Singapore on or after 1 April 2008. (4) Where a company fails to satisfy the definition of “eligible family‑owned investment holding company” in any basis period beginning on or after 1 April 2013, then this section does not apply to the company in any subsequent basis period, even if it satisfies the definition in that subsequent basis period. (5) Subsection (1) ceases to apply with effect from the year of assessment 2024. [13W [39/2017]


document_id: ita-1947
provision_ref: s13U
chapter: PART 4 - EXEMPTION FROM INCOME TAX
section: 13U
title: Exemption of income arising from funds managed by fund manager in Singapore
content:
13U. —(1) Subject to such conditions as may be prescribed by regulations, or specified in the letter of approval of the person, master fund, feeder fund, SPV, master‑feeder fund structure, master‑feeder fund‑SPV structure or master fund‑SPV structure, or specified from time to time by the Minister or an authorised body and either notified to the holder of the letter of approval or published in a manner that the Minister or authorised body reasonably believes will bring the conditions to the notice of the holder of the letter of approval, there is exempt from tax such income as the Minister may by regulations prescribe of — ( a ) an approved person arising from funds managed in Singapore by a fund manager; ( b ) in relation to an approved master‑feeder fund structure — (i) a person (not being an individual, a body of persons or a Hindu joint family) that is an approved master fund or an approved feeder fund of the structure; (ii) 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 the structure; (iii) a trustee of a trust fund where the trust fund is the approved master fund or an approved feeder fund of the structure; and (iv) a taxable entity in relation to the approved master fund or an approved feeder fund of the structure, where the master fund or feeder fund is not a legal entity, arising from funds of the master fund or any feeder fund of that structure, that are managed in Singapore by a fund manager; ( c ) in relation to an approved master‑feeder fund‑SPV structure — (i) a company, a trustee of a trust fund or a partner of a limited partnership, where the company, trust fund or limited partnership is the approved master fund or an approved feeder fund of the structure; (i a ) a person (not being a company, an individual or a Hindu joint family) that is an approved feeder fund of the structure; (i b ) a partner of a partnership (excluding a limited partnership but including a limited liability partnership), where the partnership is an approved feeder fund of the structure; (i c ) a taxable entity in relation to an approved feeder fund of the structure, where the feeder fund is not a legal entity; (ii) an approved 1st tier SPV of the structure; (iii) an approved 2nd tier SPV of the structure; (iv) an approved eligible SPV of the structure, where the eligible SPV is not one mentioned in sub‑paragraphs (v), (vi) and (vii); (v) a partner of an approved eligible SPV of the structure, where the eligible SPV is a partnership (including a limited partnership and a limited liability partnership); (vi) the trustee of an approved eligible SPV of the structure, where the eligible SPV is a trust fund; and (vii) the taxable entity of an approved eligible SPV of the structure, where the eligible SPV is not a legal entity, arising from funds of — (viii) the master fund; (ix) any feeder fund; or (x) any approved eligible SPV, of that structure, that are managed in Singapore by a fund manager; or [Act 33 of 2022 wef 19/02/2019] ( d ) in relation to an approved master fund‑SPV structure — (i) a company, a trustee of a trust fund or a partner of a limited partnership, where the company, trust fund or limited partnership is the approved master fund of the structure; (ii) an approved 1st tier SPV of the structure; (iii) an approved 2nd tier SPV of the structure; (iv) an approved eligible SPV of the structure, where the eligible SPV is not one mentioned in sub‑paragraphs (v), (vi) and (vii); (v) a partner of an approved eligible SPV of the structure, where the eligible SPV is a partnership (including a limited partnership and a limited liability partnership); (vi) the trustee of an approved eligible SPV of the structure, where the eligible SPV is a trust fund; and (vii) the taxable entity of an approved eligible SPV of the structure, where the eligible SPV is not a legal entity, arising from funds of the master fund or of any approved eligible SPV of that structure, that are managed in Singapore by a fund manager. [2/2016; 45/2018; 32/2019] [Act 33 of 2022 wef 19/02/2019] [Act 35 of 2024 wef 17/02/2024] (2) Approval under subsection (1)( a ) may be granted during the period from 1 April 2009 to 31 December 2029 (both dates inclusive). [37/2014; 32/2019] [Act 35 of 2024 wef 27/11/2024] (2A) Approval under subsection (1)( b ) may be granted during the period from 7 July 2010 to 31 December 2029 (both dates inclusive). [37/2014; 32/2019] [Act 35 of 2024 wef 27/11/2024] (2B) Approval under subsection (1)( c )(i) and ( d )(i) may be granted during the period from 1 April 2015 to 31 December 2029 (both dates inclusive). [32/2019] [Act 35 of 2024 wef 27/11/2024] (2C) Approval under subsection (1)( c )(i a ), (i b ) and (i c ) may be granted during the period from 20 February 2018 to 31 December 2029 (both dates inclusive). [32/2019] [Act 35 of 2024 wef 27/11/2024] (2D) Approval under subsection (1)( c )(ii) and (iii) and ( d )(ii) and (iii) may be granted during the period from 1 April 2015 to 18 February 2019 (both dates inclusive). [32/2019] (2E) Approval under subsection (1)( c )(iv), (v), (vi) and (vii) and ( d )(iv), (v), (vi) and (vii) may be granted during the period from 19 February 2019 to 31 December 2029 (both dates inclusive). [32/2019] [Act 35 of 2024 wef 27/11/2024] (2F) An approval under subsection (1) is subject to such conditions as the Minister or an authorised body may impose. [Act 35 of 2024 wef 17/02/2024] (2G) The Minister or an authorised body may at any time add, vary or delete a condition of an approval under subsection (2F), including (to avoid doubt) an approval given before the date of commencement of section 11( e ) of the Income Tax (Amendment) Act 2024. [Act 35 of 2024 wef 27/11/2024] (2H) Any addition, variation or deletion of a condition under subsection (2G) must be given to the holder of the letter of approval or published in a manner that the Minister or authorised body reasonably believes will bring the addition, variation or deletion to the attention of the holder of the approval. [Act 35 of 2024 wef 27/11/2024] (3) Where the income of any approved person or person (including a company), trustee, partner, taxable entity, 1st tier SPV, 2nd tier SPV or eligible SPV referred to in subsection (1)( b ), ( c ) or ( d ) is not exempt from tax under this section, sections 13C, 13D, 13O and 13OA do not apply to that income despite anything in those provisions. [2/2016; 45/2018; 32/2019] [Act 35 of 2024 wef 01/01/2025] (4) Regulations made under subsection (1) may — ( a ) provide for the determination of the amount of income of any approved person or person (including a company), trustee, partner, taxable entity, 1st tier SPV, 2nd tier SPV or eligible SPV referred to in subsection (1)( b ), ( c ) or ( d ) to be exempt from tax; ( b ) provide for the deduction of expenses, allowances and losses of any approved person or person (including a company), trustee, partner, taxable entity, 1st tier SPV, 2nd tier SPV or eligible SPV referred to in subsection (1)( b ), ( c ) or ( d ) otherwise than in accordance with this Act; ( c ) where the approved person is a partner of an approved partnership (including a limited partnership and a limited liability partnership), provide for the recovery of tax from the partner in a case where the exemption ought not to have been allowed to the partner due to non‑compliance with any condition imposed on the partnership, including the deeming of a specified amount as income of the partner for the year of assessment in which the Comptroller discovers the non‑compliance of the condition; ( ca ) provide for the recovery of tax from a person (including a company), trustee, taxable entity, 1st tier SPV, 2nd tier SPV or eligible SPV referred to in subsection (1)( b ), ( c ) or ( d ) in a case where the exemption ought not to have been allowed to the person due to non‑compliance with any condition imposed on the approved master‑feeder fund structure, approved master‑feeder fund‑SPV structure or approved master fund‑SPV structure, as the case may be; ( cb ) provide for the recovery of tax from a partner of a partnership (including a limited partnership and a limited liability partnership) referred to in subsection (1)( b ), ( c ) or ( d ) in a case where the exemption ought not to have been allowed to that partner due to non‑compliance with any condition imposed on the approved master‑feeder fund structure, approved master‑feeder fund‑SPV structure or approved master fund‑SPV structure (as the case may be), including the deeming of a specified amount as income of the partner for the year of assessment in which the Comptroller discovers the non‑compliance with the condition; [Act 35 of 2024 wef 27/11/2024] ( cc ) provide for the revocation, or the suspension for a period specified by the Minister or an authorised body, of an approval granted under subsection (1) (including one that is granted before the date of commencement of the regulations) for non-compliance with a condition of the approval, and for any revocation to take effect from any date, including (if it is just and reasonable to do so) — (i) a date before the date of the non-compliance with the condition; or (ii) if the condition is to be complied with over a period of time, before the date of commencement of that period; and [Act 35 of 2024 wef 27/11/2024] ( d ) make provision generally for giving full effect to or for carrying out the purposes of this section. [2/2016; 45/2018; 32/2019] (4A) To avoid doubt, where — ( a ) an exemption had been allowed under this section on the income of any approved person or person (including a company), trustee, partner, taxable entity, 1st tier SPV, 2nd tier SPV or eligible SPV (each called X ); ( b ) the exemption would not have been allowed had a person, fund or structure not been approved under subsection (1) on the date the income accrued to or was derived or received by X ; and ( c ) the approval is revoked under regulations made under subsection (4)( cc ) with effect from or before that date, the Comptroller may make an assessment or additional assessment under section 74 on X . [Act 35 of 2024 wef 27/11/2024] (4B) Where the approval of a person, fund or structure under subsection (1) is suspended pursuant to regulations made under subsection (4)( cc ), the person, fund or structure is treated as not approved under subsection (1) during the period of the suspension. [Act 35 of 2024 wef 27/11/2024] (5) In this section — “1st tier SPV”, in relation to a master‑feeder fund‑SPV structure or a master fund‑SPV structure, means a special purpose vehicle wholly‑owned by the master fund of the structure; “2nd tier SPV”, in relation to a master‑feeder fund‑SPV structure or a master fund‑SPV structure, means a special purpose vehicle wholly‑owned by a 1st tier SPV of the structure; “approved” means approved by the Minister or an authorised body; [Act 41 of 2020 wef 06/12/2022] “approved person” means — ( a ) any approved person (not being an individual, a body of persons or a Hindu joint family); ( b ) any partner of an approved partnership (including a limited partnership and a limited liability partnership); ( c ) any trustee of an approved trust fund; or ( d ) the taxable entity of an approved investment vehicle that is not a legal entity; “designated unit trust” means any designated unit trust within the meaning of section 35(14) and whose income does not form part of the statutory income of its trustee by reason of section 35(12); “eligible SPV”, in relation to a master‑feeder fund‑SPV structure or a master fund‑SPV structure, means a special purpose vehicle where the net gains, profits or other benefits of all investments held by the vehicle are to go (whether directly or indirectly) to the master fund of the structure, or the master fund and one or more of the following: ( a ) a prescribed person under section 13D; ( b ) an


document_id: ita-1947
provision_ref: s13V
chapter: PART 4 - EXEMPTION FROM INCOME TAX
section: 13V
title:
Exemption of certain income of prescribed sovereign fund entity, approved foreign government-owned entity, and prescribed or approved international organisation

content:
13V. —(1) There is exempt from tax such income as the Minister may by regulations prescribe of — ( a ) a prescribed sovereign fund entity arising from its funds that are managed in Singapore by an approved foreign government‑owned entity; [Act 35 of 2024 wef 07/02/2024] ( b ) an approved foreign government‑owned entity arising from its funds that are managed in Singapore, and from managing in Singapore the funds of, or providing in Singapore any investment advisory service to, a prescribed sovereign fund entity; [Act 35 of 2024 wef 07/02/2024] ( c ) a prescribed sovereign fund entity or a prescribed international organisation arising on or after 7 February 2024 from its funds that are managed in Singapore by an approved foreign government‑owned entity or an approved international organisation; and [Act 35 of 2024 wef 07/02/2024] ( d ) an approved foreign government‑owned entity or an approved international organisation arising on or after 7 February 2024 from — (i) its funds that are managed in Singapore; and (ii) managing in Singapore on or after that date the funds of, or providing in Singapore on or after that date any investment advisory service to, a prescribed sovereign fund entity or a prescribed international organisation. [Act 35 of 2024 wef 07/02/2024] (2) The Minister or an authorised body may, at any time between 1 April 2010 and 31 December 2029 (both dates inclusive), approve a foreign government‑owned entity or an international organisation for the purpose of subsection (1). [37/2014; 32/2019] [Act 41 of 2020 wef 06/12/2022] [Act 35 of 2024 wef 07/02/2024] [Act 35 of 2024 wef 27/11/2024] (3) Regulations made under subsection (1) may — ( a ) provide for the period of each approval, and that the conditions to which any approval is subject may be stated in the letter of approval issued to the foreign government‑owned entity or international organisation; [Act 35 of 2024 wef 07/02/2024] ( aa ) provide for renewal of an approval; ( b ) provide for the determination of the amount of income of a prescribed sovereign fund entity, an approved foreign government-owned entity, a prescribed international organisation or an approved international organisation that is exempt from tax; [Act 35 of 2024 wef 07/02/2024] ( c ) provide for the deduction of expenses, allowances and losses of a prescribed sovereign fund entity, an approved foreign government-owned entity, a prescribed international organisation or an approved international organisation otherwise than in accordance with this Act; and [Act 35 of 2024 wef 07/02/2024] ( d ) make provision generally for giving full effect to or for carrying out the purposes of this section. [37/2014] (4) In this section — ( a ) “foreign government‑owned entity”, in relation to income derived before 7 February 2024, means — (i) an entity wholly and beneficially owned (whether directly or indirectly) by the government or other public authority of a foreign country; (ii) an entity that is incorporated, formed or established by the government or other public authority of a foreign country either directly or indirectly through one or more intermediate entities; (iii) an entity that is incorporated, formed or established by the law of a foreign country and that is not a public authority of that foreign country; or (iv) an entity that is incorporated, formed or established by an entity mentioned in sub‑paragraph (iii) either directly or indirectly through one or more intermediate entities, and whose principal activity is to manage the entity’s own funds or the funds of a prescribed sovereign fund entity as defined in subsection (5)( a ); and ( b ) “foreign government-owned entity”, in relation to income derived on or after 7 February 2024, means — (i) an entity wholly and beneficially owned (whether directly or indirectly) by the government or other public authority of one or more foreign countries; (ii) an entity that is incorporated, formed or established by the government or other public authority of one or more foreign countries, either directly or indirectly through one or more intermediate entities; (iii) an entity that is incorporated, formed or established by the law of a foreign country and that is not a public authority of that foreign country; (iv) an entity that is incorporated, formed or established by an entity mentioned in sub‑paragraph (iii) either directly or indirectly through one or more intermediate entities; or (v) an entity in which the government or other public authority of one or more foreign countries beneficially owns (directly or indirectly) a percentage of the issued securities of the entity, and whose principal activity is to manage the entity’s own funds or the funds of a prescribed sovereign fund entity (as defined in subsection (5)( b )) or a prescribed international organisation. [Act 35 of 2024 wef 07/02/2024] (5) In this section — ( a ) “sovereign fund entity”, in relation to income derived before 7 February 2024, means — (i) the government or other public authority of a foreign country; (ii) an entity wholly and beneficially owned by the government or other public authority of a foreign country; (iii) an entity that is incorporated, formed or established by the government or other public authority of a foreign country either directly or indirectly through one or more intermediate entities; (iv) an entity that is incorporated, formed or established by the law of a foreign country and that is not a public authority of that foreign country; or (v) an entity that is incorporated, formed or established by an entity mentioned in sub‑paragraph (iv) either directly or indirectly through one or more intermediate entities, and whose funds (which may include the reserves of the government and any pension or provident fund of that country) are managed by an approved foreign government‑owned entity as defined by subsection (4)( a ); ( b ) “sovereign fund entity”, in relation to income derived on or after 7 February 2024, means — (i) the government or other public authority of a foreign country; (ii) an entity wholly and beneficially owned by the government or other public authority of one or more foreign countries; (iii) an entity that is incorporated, formed or established by the government or other public authority of one or more foreign countries either directly or indirectly through one or more intermediate entities; (iv) an entity that is incorporated, formed or established by the law of a foreign country and that is not a public authority of that foreign country; or (v) an entity that is incorporated, formed or established by an entity mentioned in sub‑paragraph (iv) either directly or indirectly through one or more intermediate entities, and whose funds (which may include the reserves of the government and any pension or provident fund of that country or those countries) are managed by an approved foreign government‑owned entity as defined in subsection (4)( b ) or an approved international organisation; and ( c ) “prescribed sovereign fund entity” means a sovereign fund entity that satisfies such conditions as may be prescribed. [Act 35 of 2024 wef 07/02/2024] (6) In this section — ( a ) “international organisation” means an organisation — (i) of which 2 or more countries, or the governments of 2 or more countries, are members; or (ii) that is constituted by persons representing 2 or more countries, or the governments of 2 or more countries, and includes — (iii) an entity that is incorporated, formed or established by an international organisation (as defined in sub‑paragraph (i) or (ii)), either directly or indirectly through one or more intermediate entities; and (iv) an entity in which an international organisation (as defined in sub‑paragraph (i) or (ii)) beneficially owns (directly or indirectly) a percentage of the issued securities of the entity; and ( b ) “prescribed international organisation” means an international organisation that satisfies such conditions as may be prescribed. [13Y [41/2020] [Act 35 of 2024 wef 07/02/2024]


document_id: ita-1947
provision_ref: s13W
chapter: PART 4 - EXEMPTION FROM INCOME TAX
section: 13W
title: Exemption of gains or profits from disposal of ordinary shares or preference shares
content:
13W. —(1) There is exempt from tax any gains or profits derived by a company (called in this section divesting company A) from the disposal of ordinary shares in another company (called in this section investee company B) which are legally and beneficially owned by divesting company A immediately before the disposal, being a disposal — ( a ) during the period between 1 June 2012 to 31 December 2025 (both dates inclusive); and [Act 25 of 2025 wef 08/12/2025] ( b ) after divesting company A has, at all times during a continuous period of at least 24 months ending on the date immediately prior to the date of disposal of such shares, legally and beneficially owned at least 20% of the ordinary shares in investee company B. [34/2016; 41/2020] [Act 25 of 2025 wef 08/12/2025] (1A) There is exempt from tax any gains or profits derived by a company (called in this section divesting company A1) from the disposal of ordinary shares or preference shares (or both) in another company (called in this section investee company B1) which are legally and beneficially owned by divesting company A1 immediately before the disposal, if — ( a ) the disposal is made on or after 1 January 2026; and ( b ) the disposal is made after divesting company A1 has, at all times during a continuous period of at least 24 months ending on the date immediately before the date of disposal of such shares — (i) legally and beneficially owned at least 20% of the ordinary shares in investee company B1; or (ii) legally and beneficially owned ordinary shares or preference shares (or both) in investee company B1 the value of which is at least 20% of the total amount of paid-up share capital of ordinary shares and preference shares in investee company B1 under the applicable accounting principles. [Act 25 of 2025 wef 08/12/2025] (1B) There is exempt from tax any gains or profits derived by a company (called in this section divesting company A2) from the disposal of ordinary shares or preference shares (or both) in another company (called in this section investee company B2) which are legally and beneficially owned by divesting company A2 immediately before the disposal (called in this section the subject shares), if — ( a ) the disposal is made on or after 1 January 2026; ( b ) the subject shares were held by divesting company A2 for a continuous period of at least 24 months ending on the date immediately before the date of the disposal; and ( c ) at the beginning (called the start date) of the period of 24 months ending on the date immediately before the date of the disposal, divesting company A2 together with one or more companies in the same group as divesting company A2 — (i) legally and beneficially owned ordinary shares in investee company B2 (which included the subject shares) that (in total) represent at least 20% of the ordinary shares in investee company B2 as of the start date; or (ii) legally and beneficially owned ordinary shares or preference shares (or both) in investee company B2 (which included the subject shares) the value of which is at least 20% of the total amount of paid-up share capital of ordinary shares and preference shares in investee company B2 as of the start date under the applicable accounting principles, and divesting company A2 and the other company or companies in the same group did not dispose of any of those shares during that period which resulted in the legal and beneficial ownership described in sub-paragraph (i) or (ii) (as the case may be) falling below the percentage specified in that sub-paragraph. [Act 25 of 2025 wef 08/12/2025] (1C) For the purpose of subsection (1B) — ( a ) shares in investee company B2 are treated as having been disposed of by a company on a first-in-first-out basis; and ( b ) companies are in the same group if — (i) more than 50% of the total number of issued ordinary shares in one company are beneficially owned by the other company; or (ii) more than 50% of the total number of issued ordinary shares in each of those companies are beneficially owned by a common company. [Act 25 of 2025 wef 08/12/2025] (1D) For the purpose of subsection (1C)( b ), if — ( a ) a company beneficially owns (including by virtue of one or more applications of this subsection) issued ordinary shares in another company (called in this subsection a 1st level company); and ( b ) the 1st level company beneficially owns issued ordinary shares in another company (called in this subsection a 2nd level company), then the firstmentioned company is taken to beneficially own issued ordinary shares of the 2nd level company; and the percentage of such beneficial ownership is computed by the formula A &#215; B, where — ( c ) A is the percentage which the number of issued ordinary shares of the 1st level company beneficially owned by the firstmentioned company bears to the total number of all issued ordinary shares of the 1st level company; and ( d ) B is the percentage which the number of issued ordinary shares of the 2nd level company beneficially owned by the 1st level company bears to the total number of all issued ordinary shares of the 2nd level company. [Act 25 of 2025 wef 08/12/2025] (1E) Any reference to divesting company A2 in subsection (1B) does not include a registered business trust (despite section 36B(1)) or VCC. [Act 25 of 2025 wef 08/12/2025] (2) Subsection (1), (1A) or (1B) only applies if divesting company A, A1 or A2 provides, at the time of lodgment of its return of income for the year of assessment relating to the basis period in which the disposal occurs, or within such further time as the Comptroller may allow, such information and supporting documents as may be specified by the Comptroller. [Act 25 of 2025 wef 08/12/2025] (3) In determining the amount of gains or profits which are exempt from tax under subsection (1), (1A) or (1B) for any year of assessment, there are to be deducted all outgoings and expenses wholly and exclusively incurred by divesting company A, A1 or A2 in the production of such gains or profits, including — ( a ) the price paid in acquiring those shares; ( b ) any sum payable by way of interest upon any money borrowed by divesting company A, A1 or A2, where the Comptroller is satisfied that the interest was payable on capital employed to acquire the shares; [Act 25 of 2025 wef 08/12/2025] ( c ) any sum payable in the basis period for the year of assessment 2008 or a subsequent year of assessment in lieu of interest or for the reduction thereof, upon any money borrowed by divesting company A, A1 or A2, being a sum of a type prescribed under section 14(1)( a )(ii), where the Comptroller is satisfied that it was payable on capital employed to acquire the shares; [Act 25 of 2025 wef 08/12/2025] ( d ) any legal costs incurred for the acquisition or disposal of the shares; ( e ) any amount paid in respect of stamp duty for the acquisition or disposal of the shares; and ( f ) any other expenses allowable under this Act which are directly attributable to those gains or profits. [Act 25 of 2025 wef 08/12/2025] (4) For the purposes of subsection (1), (1A) or (1B), a company ( X ) is treated as legally and beneficially owning any shares in another company ( Y ) during the borrowing period when the legal interest in those shares had been transferred by X to another under a securities lending or repurchase arrangement. [Act 25 of 2025 wef 08/12/2025] (5) Where — ( a ) gains or profits derived from the disposal of ordinary shares by divesting company A, A1 or A2 is exempt from tax under subsection (1), (1A) or (1B); and [Act 25 of 2025 wef 08/12/2025] ( b ) one or more of the amounts referred to in subsection (6) which are attributable to any of the shares disposed of, have been allowed as a deduction to divesting company A, A1 or A2 for any year of assessment prior to the year of assessment relating to the basis period in which the shares are disposed of, then the amounts in paragraph ( b ) are regarded as income of divesting company A, A1 or A2 that is chargeable to tax for the second‑mentioned year of assessment. [Act 25 of 2025 wef 08/12/2025] (6) Subsection (5) applies to the following amounts: ( a ) any amount provided for a diminution in the value of the shares; ( b ) any amount written off against the value of the shares; ( c ) any impairment loss for the shares; ( d ) any loss recognised in accordance with FRS 39, SFRS for Small Entities, FRS 109 or SFRS(I) 9 (as the case may be), in determining the profit or loss or expense in respect of the shares. [39/2017; 32/2019] (7) Where — ( a ) gains or profits derived from the disposal of ordinary shares by divesting company A, A1 or A2 is exempt from tax under subsection (1), (1A) or (1B); and [Act 25 of 2025 wef 08/12/2025] ( b ) any write‑back for a diminution in the value of the shares, or profit recognised in accordance with FRS 39, SFRS for Small Entities, FRS 109 or SFRS(I) 9 (as the case may be), which is attributable to any of the shares, has been charged to tax as income of divesting company A, A1 or A2 for any year of assessment prior to the year of assessment relating to the basis period in which the shares are disposed of, then the write‑back or profit referred to in paragraph ( b ) is regarded as an expense allowable under this Act to divesting company A, A1 or A2 for the second‑mentioned year of assessment. [39/2017; 32/2019] [Act 25 of 2025 wef 08/12/2025] (8) This section does not apply to — ( a ) the disposal of shares the gains or profits of which are included as part of the income of a company referred to in section 26; ( b ) the disposal of shares before 1 June 2022 in a company that — (i) is in the business of trading Singapore immovable properties; or (ii) principally carries on the activity of holding Singapore immovable properties, other than property development, where the shares are not listed on a stock exchange in Singapore or elsewhere; ( ba ) the disposal of shares on or after 1 June 2022 not listed on a stock exchange in Singapore or elsewhere, being shares in a company that the Comptroller is satisfied — (i) is in the business of trading immovable properties situated whether in Singapore or elsewhere; (ii) principally carries on the activity of holding immovable properties situated whether in Singapore or elsewhere; or (iii) has undertaken property development in Singapore or elsewhere, except where — (A) the immovable property developed is used by the company to carry on its trade or business (including the business of letting immovable properties), not being a business mentioned in sub‑paragraph (i); and (B) the company did not undertake any property development in Singapore or elsewhere for a period of at least 60 consecutive months before the disposal of shares; or ( c ) the disposal of shares by a partnership, limited partnership or limited liability partnership one or more of the partners of which is a company or are companies. [41/2020] (9) In this section — “activity of holding immovable properties” excludes the holding of immovable properties where such properties are used to carry on a trade or business, including the business of letting immovable properties; “applicable accounting principles”, in relation to a company, means — ( a ) the accounting principles adopted by the company; or ( b ) if the company is not required to comply with any accounting principles in preparing its financial statements — the International Financial Reporting Standards; [Act 25 of 2025 wef 08/12/2025] “borrowing period” and “securities lending or repurchase arrangement” have the meanings given by section 10H(12); “disposal”, in relation to shares, means the transfer of both the legal and beneficial interests in the shares to another; “FRS 39” and “SFRS for Small Entities” have the meanings given by section 34A(10); “FRS 109” and “SFRS(I) 9” have the meanings given by section 34AA(15); “preference shares” means only preference shares that are accounted for as equity by the investee compan


document_id: ita-1947
provision_ref: s13X
chapter: PART 4 - EXEMPTION FROM INCOME TAX
section: 13X
title: Exemption of certain payments received in connection with COVID‑19 events
content:
13X. —(1) The following are exempt from tax: ( a ) a cash payment made on behalf of the Government to a person under the public scheme known as the Self‑Employed Person Income Relief Scheme (SIRS), that is part of the Budget Statements of the Government dated 26 March 2020 and 6 April 2020; ( b ) a cash payment made on behalf of the Government to a person under the public scheme known as the Jobs Support Scheme (JSS); ( c ) a cash payment made by the Government to a person under any of the following public schemes: (i) Quarantine Order Allowance (QOA) Scheme; (ii) Leave‑of‑Absence (LOA) Programme; (iii) the Stay‑Home Notice (SHN) Support Programme; ( d ) a cash payment made on behalf of the Government to an individual under the public scheme known as the COVID‑19 Support Grant (CSG), that is part of the Budget Statement of the Government dated 26 March 2020, and the ministerial statement of the Minister dated 17 August 2020; ( e ) a cash payment made by the Singapore Tourism Board between (and including) the months of April and July 2020 to the holder of a tourist guide licence as defined in section 20(1) of the Singapore Tourism Board Act 1963, to mitigate any loss of income from a COVID‑19 event; ( f ) a cash payment made by the Maritime and Port Authority of Singapore under the public scheme known as the Seafarers Relief Package in the year 2020 to a seafarer as defined in section 2(1) of the Merchant Shipping (Maritime Labour Convention) Act 2014, that is funded by the Maritime and Port Authority of Singapore; ( g ) a benefit received by a self‑employed individual who drives a chauffeured private hire car or taxi, from — (i) the Land Transport Authority of Singapore (called in this paragraph and paragraph ( ga ) LTA); or (ii) an entity in the Tenth Schedule, that is given in connection with an amount received by LTA or the entity out of a payment made by the Government to the Special Relief Fund under the public scheme known as the Point‑to‑Point Support Package; ( ga ) a benefit received by an individual who drives a chauffeured private hire car or taxi, from — (i) the LTA; or (ii) an entity in the Tenth Schedule, that is given on or after 1 January 2021 in connection with an amount received by the LTA or the entity out of a payment made by the Government from a fund established by the Government known as the COVID‑19 Driver Relief Fund; ( h ) any other prescribed benefit given in connection with a prescribed public scheme, up to such amount or value as may be prescribed. [41/2020; 27/2021] (2) Where a public authority makes a payment under a public scheme on behalf of the Government to a person that is then paid to another person, the firstmentioned person does not, for the purposes of subsection (1), make the second‑mentioned payment on behalf of the Government. Example The Inland Revenue Authority of Singapore makes a cash payment under the Jobs Support Scheme on behalf of the Government to a central hirer of a central hiring arrangement of a group of related parties, which the central hirer disburses to the related parties. The central hirer does not make the disbursement on behalf of the Government under subsection (1)( b ). [41/2020] [Act 33 of 2022 wef 04/11/2022] (3) The following are also exempt from tax, but only if the Comptroller is satisfied that conditions prescribed for the exemption are satisfied: ( a ) the rent or value of any place of residence in Singapore (including any furniture or fittings in that place), or an allowance for accommodation in Singapore, for the use by an individual in the year 2020, that is provided to the individual in the year 2020 by the individual’s employer, up to the prescribed amount per day; ( b ) the value of any food, transport and other necessities (called in this paragraph basic necessities), or an allowance for basic necessities, for consumption or use by an individual in Singapore in the year 2020, that is provided to the individual in the year 2020 by the individual’s employer, up to the prescribed amount per day for all basic necessities. [41/2020] (4) An amount described in subsection (5) received or receivable in the year 2020 by a person who is a lessee or licensee of any immovable property in relation to which a remission of property tax is given by the Property Tax (Non‑Residential Properties) (Remission) Order 2020, is exempt from tax. [41/2020] (5) The amount mentioned in subsection (4) is any of the following, as applicable: ( a ) the amount in the form of monetary payments of any benefit (as defined in the COVID‑19 (Temporary Measures) (Transfer of Benefit of Property Tax Remission) Regulations 2020) of the reduction in property tax as a result of the remission that the owner of the immovable property is required under section 29(2) of the COVID‑19 (Temporary Measures) Act 2020 to pass on to the person in the year 2020; ( b ) the amount in the form of monetary payments that the owner of the immovable property has passed on or has agreed to pass on to the person in the year 2020, and by reason of which the owner is exempt from section 29(2) of the COVID‑19 (Temporary Measures) Act 2020 under regulation 13(2) of the COVID‑19 (Temporary Measures) (Transfer of Benefit of Property Tax Remission) Regulations 2020; ( c ) the amount of any other monetary payments received or receivable by the person from the person’s lessor or licensor in the year 2020, but only if the Comptroller is satisfied that the payments are intended by the lessor or licensor to provide relief to the person from any economic hardship arising from a COVID‑19 event; ( d ) the total of the amounts in paragraphs ( a ), ( b ) and ( c ). [41/2020] (5A) The amount of any monetary payment received or receivable by a person who is a lessee or licensee of any prescribed property from the person’s lessor or licensor in the year 2021 is exempt from tax, if — ( a ) the payment is made pursuant to an undertaking given by the lessor or licensor to his, her or its lessor or licensor, to provide relief to the person from any economic hardship arising from a COVID‑19 event; or ( b ) the Comptroller is satisfied that the monetary payment is intended by the lessor or licensor to provide relief to the person from any economic hardship arising from a COVID‑19 event. [27/2021] (5B) Rules made for the purposes of subsection (5A) may be made to take effect from (and including) 16 November 2021. [27/2021] (6) In this section — “chauffeured private hire car” has the meaning given to that term by section 14ZA(8); “COVID‑19” means the infectious disease known as Coronavirus Disease 2019; “COVID‑19 event” means — ( a ) the COVID‑19 epidemic or pandemic; or ( b ) the operation of or compliance with any law of Singapore, or an order or direction of the Government or any statutory body, being any law, order or direction that is made by reason of or in connection with COVID‑19; “monetary payment” includes payment by e‑money as defined in section 2(1) of the Payment Services Act 2019; “owner”, in relation to immovable property, has the meaning given by section 2(1) of the Property Tax Act 1960 and includes a person that is deemed to be an owner of the property under any provision of that Act; “prescribed” means prescribed by rules made under section 7; “prescribed property” means any non‑residential property, or any property belonging to a class of non‑residential properties, that is prescribed as a prescribed property for the purposes of subsection (5A), and includes any part of such property. [13ZA [41/2020; 27/2021]


document_id: ita-1947
provision_ref: s14
chapter: PART 5 - DEDUCTIONS AGAINST INCOME
section: 14
title: Deductions allowed
content:
14. —(1) For the purpose of ascertaining the income of any person for any period from any source chargeable with tax under this Act (called in this Part the income), there are to be deducted all outgoings and expenses wholly and exclusively incurred during that period by that person in the production of the income, including — ( a ) except as provided in this section — (i) any sum payable by way of interest; and (ii) any sum payable in lieu of interest or for the reduction thereof, as may be prescribed by regulations (including the restriction of the deduction of the sum in respect of money borrowed before the basis period relating to the year of assessment 2008), upon any money borrowed by that person where the Comptroller is satisfied that such sum is payable on capital employed in acquiring the income; ( b ) rent payable by any person in respect of any land or building or part thereof occupied by the person for the purpose of acquiring the income; ( c ) any expenses incurred for repair of premises, plant, machinery or fixtures employed in acquiring the income or for the renewal, repair or alteration of any implement, utensil or article so employed: Provided that no deduction may be made for the cost of renewal of any plant, machinery or fixture, which is the subject of an allowance under section 19 or 19A; or for the cost of reconstruction or rebuilding of any premises, buildings, structures or works of a permanent nature; ( d ) any bad debt incurred in any trade, business, profession or vocation that became bad during the period for which the income is being ascertained, and any of the following to the extent that it has been estimated, to the Comptroller’s satisfaction, to have become bad during that period: (i) any doubtful debt; (ii) any other debt for which provisions have been made for impairment losses or expected credit losses (called in this paragraph provisioned debt), even if the bad debt, doubtful debt or provisioned debt was due and payable before the commencement of that period, but only if — (iii) all sums recovered during that period on account of amounts previously written off or allowed in respect of bad debts, doubtful debts or provisioned debts (other than debts incurred before the commencement of the basis period for the first year of assessment under this Act) are for the purposes of this Act treated as receipts of the trade, business, profession or vocation for that period; and (iv) the bad debts, doubtful debts or provisioned debts in respect of which a deduction is claimed were included as a trading receipt in the income of the year within which they were incurred; [Act 25 of 2025 wef 08/12/2025] ( e ) any sum contributed by an employer to an approved pension or provident fund or society or any pension or provident fund constituted outside Singapore in respect of any of the employer’s employees engaged in activities relating to the production of the income of the employer, the contribution of which sum by the employer was obligatory by reason of any contract of employment or of any provision in the rules or constitution of the fund or society: Provided that in the case of any contribution to the Central Provident Fund or any approved pension or provident fund designated by the Minister under section 39(8) — (i) a deduction in respect of any such contribution by an employer in respect of an employee for any period — (A) commencing on or after 1 September 2010 must not exceed 15%; (B) commencing on or after 1 March 2011 must not exceed 15&#189;%; (C) commencing on or after 1 September 2011 must not exceed 16%; (D) commencing on or after 1 January 2015 must not exceed 17%, of the remuneration paid by the employer to the employee for that period, and “remuneration” in this proviso means that part of an employee’s emoluments by reference to which his or her employer’s contributions are calculated; (ii) where any such fund or society is first established and a special contribution is made thereto by the employer whereby persons in the employer’s employment whose employment commenced prior to the establishment of the fund or society may qualify for the benefits thereunder in respect of such prior employment, the Comptroller may, when approving the fund or society, authorise such deductions in respect of that special contribution as the Comptroller thinks fit; (iii) no deduction is allowed in respect of any sum contributed by an employer for the period on or after 1 January 1999 to the Central Provident Fund in respect of an employee who holds a professional visit pass or a work pass or who would be required to obtain such a pass if the employee were to work in Singapore: And provided that no deduction is allowed in respect of any contribution or part thereof to a pension or provident fund constituted outside Singapore made in respect of an employee, if the employee has been exempted from tax on such contribution or part thereof under section 13K; ( f ) any sum contributed by a platform operator to the Central Provident Fund account of any platform worker engaged in activities relating to the production of the income of the platform operator, the contribution of which sum by the platform operator was obligatory under section 8A(1) of the Central Provident Fund Act 1953; [Act 30 of 2024 wef 01/01/2025] ( fa ) [ Deleted by Act 32 of 2019 ] ( fb ) any sum contributed by an employer in 2013 or any subsequent year to the medisave account maintained under the Central Provident Fund Act 1953 in respect of any of the employer’s employees engaged in activities relating to the production of the income of the employer, up to a maximum deduction for each employee’s medisave account, of — (i) $1,500 per year (for contributions made before 2018); or (ii) $2,730 per year (for contributions made in 2018 and in each subsequent year), less any previous contribution that is made to the same medisave account in the same year by the employer in the employer’s capacity as a person of a prescribed description under paragraph ( fc ) (if applicable), and that is deductible under that provision: Provided that no deduction is allowed in respect of any sum contributed by an employer to the medisave account maintained under the Central Provident Fund Act 1953 in respect of an employee who holds a professional visit pass or a work pass or who would be required to obtain such a pass if the employee were to work in Singapore; ( fc ) any voluntary contribution in cash made in 2013 or any subsequent year by a person of a description prescribed by the Minister for the purposes of this paragraph, to the medisave account of a self‑employed individual maintained under the Central Provident Fund Act 1953, up to a maximum deduction for each individual’s medisave account, of — (i) $1,500 per year (for contributions made before 2018); or (ii) $2,730 per year (for contributions made in 2018 and in each subsequent year), less any previous contribution that is made to the same medisave account in the same year by the person of the prescribed description in the person’s capacity as an employer under paragraph ( fb ) (if applicable), and that is deductible under that provision; ( g ) zakat, fitrah or any religious dues, payment of which is made under any written law; and ( h ) where the income is derived from the working of a mine or other source of mineral deposits of a wasting nature, such deductions in respect of capital expenditure as may be prescribed in rules made under section 7. [37/2014; 39/2017; 32/2019] (1A) [ Deleted by Act 32 of 2019 ] (2) Despite subsection (1), payments made by way of compensation for injuries or death, salaries, wages or similar emoluments or death gratuities to an employee (or his or her legal representative) who is the husband, wife or child of — ( a ) any employer; ( b ) any partner of the firm in which that employee is employed; ( c ) any individual who by himself or herself or with his or her spouse or child or all of them have the ability to control, directly or indirectly, the company in which that employee is employed; or ( d ) any individual whose spouse or child or all of them have the ability to control, directly or indirectly, the company in which that employee is employed, are allowed as deductions only to the extent to which, in the Comptroller’s opinion, they are reasonable in amount having regard to the services performed by that employee. (3) Despite subsection (1), where outgoings and expenses falling within that subsection are incurred, whether directly or in the form of reimbursements, in respect of a motor car (whether or not owned by the person incurring the outgoings and expenses) to which this subsection applies, the sum to be allowed as a deduction is limited to the amount which bears to such outgoings and expenses the same proportion as $35,000 bears to the capital expenditure incurred by the owner in respect of the motor car, where such capital expenditure exceeds $35,000. (3A) Any deduction for the cost of renewal of a motor car to which subsection (3) applies must not exceed $35,000. (4) Subsections (3) and (3A) apply to a motor car which is constructed or adapted for the carriage of not more than 7 passengers exclusive of the driver and the weight of which unladen does not exceed 3,000 kilograms, and which was registered before 1 April 1998 as a business service passenger vehicle for the purposes of the Road Traffic Act 1961, but excludes such a motor car which is — ( a ) used principally for instructional purposes; and ( b ) acquired by a person who carries on the business of providing driving instruction and who holds a driving school licence or driving instructor’s licence issued under that Act. (5) Despite subsection (1), where, in the basis period for any year of assessment, any employer (other than an employer who derives any income from any trade, business, profession or vocation which is wholly or partly exempt from tax or subject to tax at a concessionary rate of tax under this Act or the Economic Expansion Incentives (Relief from Income Tax) Act 1967) incurs medical expenses falling within that subsection in excess of the maximum allowable amount in that basis period, the amount of the excess medical expenses is not allowed as deductions. (6) Where, in the basis period for any year of assessment, any employer derives any income from any trade, business, profession or vocation which is wholly or partly exempt from tax or subject to tax at a concessionary rate of tax under this Act or the Economic Expansion Incentives (Relief from Income Tax) Act 1967 and incurs medical expenses in excess of the maximum allowable amount in that basis period, an amount equal to the excess medical expenses is deemed to be income of the employer chargeable to tax at the rate of tax under section 42(1) or 43(1) (as the case may be) for that year of assessment. (6A) For the purpose of subsections (5) and (6), the maximum allowable amount in the basis period for any year of assessment is — ( a ) 2% of the total remuneration of the employer’s employees in that basis period in a case where the employer has — (i) contributed the specified amount into the medisave accounts maintained under the Central Provident Fund of — (A) at least 20% of the number of local employees who are employed by the employer as at the first day of the basis period for that year of assessment, for every calendar month in that basis period they are employed by the employer; and (B) every local employee who commences his or her employment with the employer during the basis period for that year of assessment, for the calendar month the employee commences his or her employment and every subsequent calendar month in that basis period he or she is employed by the employer; or (ii) incurred expenses in or in connection with the provision of a specified insurance plan to cover, for every calendar month in the basis period for that year of assessment, the cost of medical treatment of a


document_id: ita-1947
provision_ref: s14A
chapter: PART 5 - DEDUCTIONS AGAINST INCOME
section: 14A
title: Deduction for costs for protecting intellectual property
content:
14A. —(1) Subject to this section, where a person carrying on a trade or business has incurred — ( a ) patenting costs during the period from 1 June 2003 to the last day of the basis period for the year of assessment 2010 (both dates inclusive); or ( b ) qualifying intellectual property registration costs during the basis period for any year of assessment between the year of assessment 2011 and the year of assessment 2028 (both years inclusive), for the purposes of that trade or business, there is allowed to the person a deduction of the amount of such costs. [37/2014; 45/2018] [Act 30 of 2023 wef 30/10/2023] (1A) Subject to this section, for the purpose of ascertaining the income of a person carrying on a trade or business during the basis period for the year of assessment 2011 or the year of assessment 2012, there is allowed in respect of all of the person’s trades and businesses, in addition to the deduction allowed under subsection (1), a deduction for qualifying intellectual property registration costs incurred for the purposes of those trades and businesses, computed in accordance with the formula where A is — ( a ) for the year of assessment 2011, the lower of the following: (i) such costs incurred during the basis period for that year of assessment; (ii) $800,000; and ( b ) for the year of assessment 2012, the lower of the following: (i) such costs incurred during the basis period for that year of assessment; (ii) the balance after deducting from $800,000 the lower of the amounts specified in paragraph ( a )(i) and (ii). (1B) Subject to this section and section 37J, for the purpose of ascertaining the income of a person carrying on a trade or business during the basis period for the year of assessment 2013, the year of assessment 2014 or the year of assessment 2015, there is allowed in respect of all of the person’s trades and businesses, in addition to the deduction allowed under subsection (1), a deduction for qualifying intellectual property registration costs incurred for the purposes of those trades and businesses, computed in accordance with the formula where A is — ( a ) for the year of assessment 2013, the lower of the following: (i) such costs incurred during the basis period for that year of assessment; (ii) $1,200,000; ( b ) for the year of assessment 2014, the lower of the following: (i) such costs incurred during the basis period for that year of assessment; (ii) the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph ( a )(i) and (ii); and ( c ) for the year of assessment 2015, the lower of the following: (i) such costs incurred during the basis period for that year of assessment; (ii) the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph ( a )(i) and (ii), and the lower of the amounts specified in paragraph ( b )(i) and (ii). [37/2014] (1BA) Subject to this section and section 37J, for the purpose of ascertaining the income of a person carrying on a trade or business during the basis period for the year of assessment 2016, 2017 or 2018, there is allowed in respect of all of the person’s trades and businesses, in addition to the deduction allowed under subsection (1), a deduction for qualifying intellectual property registration costs incurred for the purposes of those trades and businesses, computed in accordance with the formula where A is — ( a ) for the year of assessment 2016, the lower of the following: (i) such costs incurred during the basis period for that year of assessment; (ii) $1,200,000; ( b ) for the year of assessment 2017, the lower of the following: (i) such costs incurred during the basis period for that year of assessment; (ii) the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph ( a )(i) and (ii); and ( c ) for the year of assessment 2018, the lower of the following: (i) such costs incurred during the basis period for that year of assessment; (ii) the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph ( a )(i) and (ii), and the lower of the amounts specified in paragraph ( b )(i) and (ii). [37/2014] (1BB) Subject to this section, for the purpose of ascertaining the income of a person carrying on a trade or business during the basis period for any year of assessment between the years of assessment 2019 and 2023 (both years inclusive), there is to be allowed in respect of all of the person’s trades and businesses, in addition to the deduction allowed under subsection (1), a deduction of the amount of qualifying intellectual property registration costs incurred during the basis period for the purposes of those trades and businesses, up to $100,000. [45/2018] [Act 30 of 2023 wef 30/10/2023] (1BC) Subject to this section, for the purpose of ascertaining the income of a person carrying on a trade or business during the basis period for any year of assessment between the years of assessment 2024 and 2028 (both years inclusive), there is allowed in respect of all of the person’s trades and businesses, in addition to the deduction allowed under subsection (1), a deduction for qualifying intellectual property registration costs incurred during that basis period for the purposes of those trades and businesses, computed in accordance with the formula where A is the lower of the following: ( a ) the qualifying intellectual property registration costs incurred during that basis period; ( b ) $400,000. [Act 30 of 2023 wef 30/10/2023] (1C) In subsection (1A), the amount under paragraph ( a )(ii) is substituted with “$400,000” if the person does not carry on any trade or business during the basis period for the year of assessment 2012, and the balance under paragraph ( b )(ii) is substituted with “$400,000” if the person does not carry on any trade or business during the basis period for the year of assessment 2011. (1D) In subsection (1B) — ( a ) if the person does not carry on any trade or business during the basis period for any one year of assessment between the year of assessment 2013 and the year of assessment 2015 (both years inclusive), the references to “$1,200,000” in the paragraphs of that subsection applicable to the other 2 years of assessment are each substituted with “$800,000”; ( b ) if the person does not carry on any trade or business during the basis periods for any 2 years of assessment between the year of assessment 2013 and the year of assessment 2015 (both years inclusive), the reference to “$1,200,000” in the paragraph of that subsection applicable to the remaining year of assessment is substituted with “$400,000”; and ( c ) to avoid doubt, no deduction may be made from the substituted amount in subsection (1B)( b )(ii) or ( c )(ii) of the lower of the amounts specified in subsection (1B)( a )(i) and (ii) if the person does not carry on any trade or business during the basis period for the year of assessment 2013, and no deduction may be made from the substituted amount in subsection (1B)( c )(ii) of the lower of the amounts specified in subsection (1B)( b )(i) and (ii) if the person does not carry on any trade or business during the basis period for the year of assessment 2014. (1DA) In subsection (1BA) — ( a ) if the person does not carry on any trade or business during the basis period for any one year of assessment between the years of assessment 2016 and 2018 (both years inclusive), the references to “$1,200,000” in the paragraphs of that subsection applicable to the other 2 years of assessment are each substituted with “$800,000”; ( b ) if the person does not carry on any trade or business during the basis periods for any 2 years of assessment between the years of assessment 2016 and 2018 (both years inclusive), the reference to “$1,200,000” in the paragraph of that subsection applicable to the remaining year of assessment is substituted with “$400,000”; and ( c ) to avoid doubt, no deduction may be made from the substituted amount in subsection (1BA)( b )(ii) or ( c )(ii) of the lower of the amounts specified in subsection (1BA)( a )(i) and (ii) if the person does not carry on any trade or business during the basis period for the year of assessment 2016, and no deduction may be made from the substituted amount in subsection (1BA)( c )(ii) of the lower of the amounts specified in subsection (1BA)( b )(i) and (ii) if the person does not carry on any trade or business during the basis period for the year of assessment 2017. [37/2014] (1E) For the purposes of subsections (1A), (1B), (1BA), (1BB) and (1BC), where an individual carrying on a trade or business through 2 or more firms (excluding partnerships) has, during the basis period for any year of assessment between the years of assessment 2011 and 2028 (both years inclusive), incurred qualifying intellectual property registration costs in respect of such firms for the purposes of the individual’s trade or business, the deduction that may be allowed to the individual for those costs in respect of all of the individual’s trades and businesses must not exceed the amount computed in accordance with subsection (1A), (1B), (1BA), (1BB) or (1BC) (as the case may be) for that year of assessment. [45/2018] [Act 30 of 2023 wef 30/10/2023] (1F) For the purposes of subsections (1A), (1B), (1BA), (1BB) and (1BC), where a partnership carrying on a trade or business has, during the basis period for any year of assessment between the years of assessment 2011 and 2028 (both years inclusive), incurred qualifying intellectual property registration costs for the purposes of the partnership’s trade or business, the aggregate of the deductions that may be allowed to all the partners of the partnership for those costs in respect of all of the trades and businesses of the partnership must not exceed the amount computed in accordance with subsection (1A), (1B), (1BA), (1BB) or (1BC) (as the case may be) for that year of assessment. [45/2018] [Act 30 of 2023 wef 30/10/2023] (2) The claim for deduction under subsection (1), (1A), (1B), (1BA), (1BB) or (1BC) is allowed to a person only if — ( a ) there is an undertaking by the person that the person would be the proprietor of the patent or registered trade mark, the registered owner of the registered design or the grantee of the plant variety (as the case may be) when the patent is granted, the trade mark or design is registered or the plant variety is granted protection; and ( b ) the claim is made by the person in such manner and subject to such conditions as the Comptroller may require. [37/2014; 45/2018] [Act 30 of 2023 wef 30/10/2023] (3) For the purposes of this section, any patenting costs or qualifying intellectual property registration costs (as the case may be) incurred by a person prior to the commencement of that person’s trade or business are deemed to have been incurred by that person on the first day that person carries on that trade or business but a deduction for these is subject to section 14X. [34/2016] (4) Where a person to whom a deduction for patenting costs or qualifying intellectual property registration costs (as the case may be) has been allowed under subsection (1) sells, transfers or assigns in the basis period for any year of assessment all or any part of the rights for which such patenting costs or qualifying intellectual property registration costs (as the case may be) were incurred, the person is deemed to have derived an amount of income for that year of assessment equal to the price at which the rights were sold, transferred or assigned or the deduction which has been allowed under subsection (1), whichever is less. (5) For the purposes of subsection (4), where there is more than one sale, transfer or assignment of any part of the rights for which such patenting costs or qualifying intellectual property registration costs (as the case may be) were incurred, the total amount deemed as income must not exceed the total amount of deduction previously allowed under s


document_id: ita-1947
provision_ref: s14B
chapter: PART 5 - DEDUCTIONS AGAINST INCOME
section: 14B
title:
Further deduction for expenses relating to approved trade fairs, exhibitions or trade missions, maintenance of overseas trade office, or electronic commerce

content:
14B. —(1) Subject to this section, where the Comptroller is satisfied that the expenses specified in subsection (2) have been incurred by an approved firm or company resident in or having a permanent establishment in Singapore for the primary purpose of — ( a ) promoting the trading of goods or the provision of services; or ( b ) the provision of services in connection with the use of any right under a master franchise or master intellectual property licence where the firm or company is the holder of the franchise or licence, there is allowed a further deduction of the amount of such expenses in addition to the amount allowed under section 14. (2) The expenses referred to in subsection (1) are — ( a ) expenses in establishing, maintaining or otherwise participating in — (i) a trade fair, trade exhibition, trade mission or trade promotion activity held or conducted outside Singapore; or (ii) an approved trade fair or trade exhibition held in Singapore; ( aa ) any of the following expenses incurred on or after 1 April 2020 that are approved for the firm or company: (i) expenses to secure a spot to speak at a trade mission or trade promotion activity mentioned in paragraph ( a )(i); (ii) expenses for the transportation of any sample for use at a trade mission or trade promotion activity mentioned in paragraph ( a )(i); (iii) expenses to engage a consultant (not being a related party of the approved firm or company or an officer or employee of such related party) to organise a business networking event during a trade mission or trade promotion activity mentioned in paragraph ( a )(i); ( ab ) expenses incurred on or after 17 February 2021 — (i) in establishing, maintaining or otherwise participating in an approved trade fair or trade exhibition held or conducted (whether wholly or partly) by means of teleconference, videoconferencing or any other electronic means of communications; or (ii) for the transportation of any sample to any potential client outside of Singapore, following the potential client’s attendance at or participation in the approved trade fair or trade exhibition; ( ac ) any of the following expenses incurred on or after 15 February 2023 that are approved for the firm or company for the purposes of enabling the firm or company to trade goods, or provide services to persons, in a foreign country using an electronic marketplace: (i) expenses incurred on the creation and maintenance of an account with the electronic marketplace; (ii) expenses incurred on the listing of the goods to be traded or services to be provided on the electronic marketplace; (iii) expenses incurred for any promotion campaign using the electronic marketplace, including the design and creation of the materials for the promotion campaign; (iv) expenses incurred to engage a person (not being an officer or employee or a related party of the approved firm or company, or an officer or employee of such related party) to provide advisory service to the firm or company in connection with the use of the electronic marketplace; [Act 30 of 2023 wef 15/02/2023] ( b ) expenses in maintaining an approved overseas trade office; or ( c ) market development expenditure for the carrying out of any approved marketing project. [41/2020; 27/2021] (2A) For the purposes of subsection (1) and subject to subsection (2B), the firm or company need not be an approved firm or approved company to be allowed a deduction under subsection (1) in respect of expenses mentioned in subsection (2)( a ) that are incurred at any time between 1 April 2012 and 16 February 2021 (both dates inclusive) for the primary purpose of promoting the trading of goods or the provision of services. [45/2018; 41/2020; 27/2021] (2AA) For the purposes of subsection (1) and subject to subsection (2B), the firm or company need not be an approved firm or approved company to be allowed a deduction under subsection (1) in respect of any of the following expenses incurred during the period between 17 February 2021 and 31 December 2030 (both dates inclusive) for the primary purpose of promoting the trading of goods or the provision of services: ( a ) such expenses in subsection (2)( a ) as are prescribed by rules made under section 7; ( b ) such expenses in subsection (2)( ab ) as are prescribed by rules made under section 7. [27/2021] [Act 25 of 2025 wef 08/12/2025] (2AB) Despite subsection (1) but subject to subsection (2B), where the Comptroller is satisfied that any expenses mentioned in subsection (2AC) have been incurred by a firm or company resident in or having a permanent establishment in Singapore during the period between 17 February 2021 and 31 December 2030 (both dates inclusive) for the primary purpose of promoting the trading of goods or the provision of services, there is to be allowed a further deduction of the amount of such expenses in addition to the amount allowed under section 14. [27/2021] [Act 25 of 2025 wef 08/12/2025] (2AC) The expenses mentioned in subsection (2AB) are the following types of expenses that fall within descriptions prescribed by rules made under section 7, to the extent that such expenses do not fall within subsection (1): ( a ) expenses incurred in the design of packaging; ( b ) expenses incurred in obtaining any approved certification of goods and services; ( c ) expenses incurred in any advertisement placed in any media or on any promotion campaign carried out overseas. [27/2021] (2AD) Rules made for the purposes of subsections (2AA) and (2AC) may be made to take effect from (and including) 17 February 2021. [27/2021] (2B) The amount of the expenses for which the deduction may be allowed under subsections (2A), (2AA) and (2AB) (whichever is applicable), after adding the expenditure for which a deduction is allowed to the firm or company under section 14H(1A), must not exceed — ( a ) for a year of assessment before the year of assessment 2019 — $100,000; or ( b ) for the year of assessment 2019 or a subsequent year of assessment — $150,000. [45/2018; 27/2021] (3) The Minister or an authorised body may specify the maximum amount of expenditure (or any item thereof) to be allowed under subsection (1), other than expenses that are the subject of a claim for deduction under subsections (2A), (2AA) and (2AB) (whichever is applicable). [27/2021] [Act 41 of 2020 wef 12/04/2024] (4) No deduction is allowed under this section in respect of — ( a ) any expenses which are not allowed as deductions under section 14; ( b ) travelling, accommodation and subsistence expenses or allowances for — (i) more than 2 employees taking part in the trade fair, trade exhibition, trade mission or trade promotion activity, being one held or conducted overseas; or (ii) more than the approved number of employees taking part in the approved marketing project; ( c ) any expenses relating to an approved overseas trade office — (i) which are incurred in the establishment of the approved overseas trade office; (ii) by way of remuneration, travelling, accommodation and subsistence expenses or allowances for more than the approved number of employees of the approved overseas trade office; (iii) which are specifically excluded as a condition for the approval of the overseas trade office under this section; (iv) which are incurred after the end of the approved number of years from the date of establishment of the approved overseas trade office; or (v) which are incurred by a firm or company having a permanent establishment subject to tax in the country in which the approved trade office is established; ( d ) any expenses incurred during the basis period for a year of assessment by a firm or company if — (i) any part of its income for that year of assessment is exempt or partly exempt from tax under section 13A, 13E, 13P or 13S; (ii) any part of its income for that year of assessment is subject to tax at a concessionary rate of tax under section 43C, 43D, 43E, 43G, 43I, 43J, 43L, 43P, 43Q, 43R, 43U, 43V or 43X, or the regulations made under any of those sections; or (iii) it is given tax relief under Part 2, 3 or 4 of the Economic Expansion Incentives (Relief from Income Tax) Act 1967 for that year of assessment, or is given an investment allowance under Part 8 of that Act for that year of assessment; or ( e ) any expenses to the extent they are or are to be subsidised by a grant or subsidy from the Government or a statutory board. [2/2016; 45/2018] (4A) Despite subsection (4), the Minister or an authorised body may, in any particular case, subject to such conditions precedent and conditions subsequent as the Minister or authorised body may impose, allow a deduction of any expenses referred to in subsection (4)( c )(v) provided that they are not also expenses referred to in subsection (4)( c )(i), (ii), (iii) or (iv). [2/2016] [Act 41 of 2020 wef 12/04/2024] (5) Despite subsection (4), the Minister or an authorised body may, in any particular case, and subject to such conditions precedent and conditions subsequent as the Minister or authorised body may impose, allow a deduction of any expenses referred to in subsection (4)( d ). [2/2016] [Act 41 of 2020 wef 12/04/2024] (6) If the firm or company fails to comply with a condition subsequent imposed under subsection (4A) or (5), the deduction allowed to the firm or company under that subsection is treated as the firm’s or company’s income for the year of assessment in which the Comptroller discovers the non‑compliance. [2/2016] (7) In relation to a deduction under this section, a condition is a condition subsequent if or to the extent that it can only be satisfied after the deduction is allowed, and a condition is a condition precedent if or to the extent that it is not a condition subsequent; and accordingly a condition may, depending on the circumstances, be either a condition precedent or a condition subsequent. [2/2016] (8) [ Deleted by Act 19 of 2013 ] (9) [ Deleted by Act 19 of 2013 ] (10) Despite anything in this section, where it appears to the Comptroller that in any year of assessment any further deduction which has been allowed under this section or section 14E ought not to have been so allowed, the Comptroller may, within the year of assessment or within 4 years after the expiry of that year of assessment, make such assessment or additional assessment upon the firm or company as may be necessary in order to make good any loss of tax. [41/2020] (11) In this section — “approved” means approved by the Minister or an authorised body; [Act 41 of 2020 wef 12/04/2024] “electronic marketplace” means a medium that — ( a ) allows a person to trade goods or provide services to any other person by electronic means; and ( b ) is operated by electronic means, but not any medium that is solely for processing any payment for any trading of goods or provision of services; [Act 30 of 2023 wef 15/02/2023] “foreign country” means any country outside Singapore; [Act 30 of 2023 wef 15/02/2023] “market development expenditure” means — ( a ) approved expenses directly attributable to the carrying out of market research or obtaining of market information, including any feasibility study; ( b ) expenses in respect of advertisements placed in approved media; ( c ) expenses incurred on approved promotion campaigns; ( d ) approved expenses incurred in the design of packaging, or in the certification of goods or services where such certification is carried out by an approved person; or ( e ) approved expenses incurred on or after 1 April 2020 for the engagement of a consultant (not being a related party of the approved firm or company or an officer or employee of such related party) — (i) to identify a suitable person to promote the trading of any goods, or the provision of any services, in a country outside Singapore; or (ii) to build up a business network in a country outside Singapore; “master franchise” means any agreement under which the franchisor authorises or permits the franchisee to use in Singapore or oversea


document_id: ita-1947
provision_ref: s14C
chapter: PART 5 - DEDUCTIONS AGAINST INCOME
section: 14C
title: Expenditure on research and development
content:
14C. —(1) For the purpose of ascertaining the income of any person carrying on any trade or business and subject to subsection (4), the following expenditure incurred (other than any amount which is allowable as a deduction under section 14) by that person is allowed as a deduction: ( a ) expenditure incurred on research and development undertaken directly by that person and related to that trade or business (except to the extent that it is capital expenditure on plant, machinery, land or buildings or on alterations, additions or extensions to buildings or in the acquisition of rights in or arising out of research and development); ( aa ) expenditure incurred during the basis period for any year of assessment between the year of assessment 2009 and the year of assessment 2028 (both years inclusive) on research and development undertaken in Singapore directly by that person and not related to that trade or business (except to the extent that it is capital expenditure on plant, machinery, land or buildings or on alterations, additions or extensions to buildings or in the acquisition of rights in or arising out of research and development); [Act 30 of 2023 wef 30/10/2023] ( b ) payments made by that person to a research and development organisation for undertaking on that person’s behalf in Singapore research and development related to that trade or business; ( ba ) payments made by that person to a research and development organisation for undertaking on that person’s behalf, partly in Singapore and partly outside Singapore, research and development related to that trade or business; ( c ) payments made during the basis period for any year of assessment between the year of assessment 2009 and the year of assessment 2028 (both years inclusive) by that person to a research and development organisation for undertaking on that person’s behalf in Singapore research and development not related to that trade or business; [Act 30 of 2023 wef 30/10/2023] ( d ) payments made by that person to a research and development organisation for undertaking on that person’s behalf outside Singapore research and development related to that trade or business; ( e ) payments made by that person under any cost-sharing agreement during the basis period for a year of assessment between the years of assessment 2012 and 2017 (both years inclusive), in respect of research and development that is related to that trade or business, regardless of who undertakes the research and development so long as it is undertaken wholly or partly for that person or on that person’s behalf; ( f ) payments made by that person during the basis period for any year of assessment between the year of assessment 2012 and the year of assessment 2017 (both years inclusive), under any cost‑sharing agreement in respect of research and development that is undertaken in Singapore and is not related to that trade or business, regardless of who undertakes the research and development so long as it is undertaken wholly or partly for that person or on that person’s behalf; ( g ) payments made by that person under any cost‑sharing agreement during the basis period for the year of assessment 2018 or a subsequent year of assessment in respect of any research and development, regardless of who undertakes the research and development so long as it is undertaken wholly or partly for the person or on the person’s behalf. [37/2014; 39/2017] (1A) The expenditure or payment referred to in subsection (1) does not include any such expenditure or payment to the extent that it is or is to be subsidised by grants or subsidies from the Government or a statutory board. (2) For the purposes of this section, any expenditure incurred by a person prior to the commencement of that person’s trade or business is deemed to have been incurred by that person on the first day on which that person carries on that trade or business but a deduction for this is subject to section 14X. [34/2016] (2A) Subsection (2) does not apply to any expenditure if a deduction has already been allowed for that expenditure under subsection (1) in a previous year of assessment. [45/2018] (3) For the purposes of subsection (1)( ba ) or ( d ), a claim for deduction is allowed to a person only if — ( a ) there is an undertaking by the person that any benefit which may arise from the conduct of the research and development must accrue to the person; and ( b ) the claim is made by the person in such manner and subject to such conditions as the Comptroller may require. (3A) For the purposes of subsection (1)( e ) or ( g ) in respect of research and development that is undertaken wholly or partly outside Singapore, a claim for deduction is allowed to a person only if — ( a ) there is an undertaking by the person that any benefit which may arise from the conduct of the research and development must accrue, wholly or partly, to the person; and ( b ) the claim is made by the person in such manner and subject to such conditions as the Comptroller may require. [39/2017] (4) The deduction of the expenditure and payments referred to in subsection (1)( aa ), ( c ) and ( f ) must be made in accordance with the following provisions: ( a ) if the person derives from the trade or business carried on by the person both normal income and concessionary income, the amount of the expenditure or payments (after deducting any amount in respect of which an election for a cash payout has been made under section 37G or 37R) must so far as possible be deducted against the normal income, and any remaining balance of the amount is treated as part of the unabsorbed losses in respect of the normal income to be deducted against the concessionary income in accordance with section 37A; [Act 30 of 2023 wef 30/10/2023] ( b ) if the concessionary income referred to in paragraph ( a ) is subject to tax at 2 or more concessionary rates of tax, the deduction under section 37A of the remaining balance referred to in that paragraph must so far as possible be made against the part of the concessionary income that is subject to tax at the higher or highest concessionary rate of tax, and the deduction under section 37A of any remaining balance must so far as possible be made against the part of the concessionary income that is subject to tax at the lower or next lowest concessionary rate of tax, and so on; ( c ) if the person derives from the trade or business only concessionary income which is subject to tax at a single concessionary rate of tax, a specified amount of the expenditure or payments must be deducted against the concessionary income; ( d ) if the person derives from the trade or business only concessionary income which is subject to tax at 2 or more concessionary rates of tax, a specified amount of the expenditure or payments must so far as possible be deducted against the part of the concessionary income that is subject to the higher or highest concessionary rate of tax, and any remaining balance of the specified amount is treated as part of the unabsorbed losses in respect of that part of the concessionary income that is subject to the higher or highest concessionary rate of tax, to be deducted in accordance with section 37A against the rest of the concessionary income; ( e ) if the rest of the concessionary income referred to in paragraph ( d ) is subject to tax at 2 or more concessionary rates of tax, then paragraph ( b ) applies, with the necessary modifications, to the last mentioned deduction in paragraph ( d ). (4A) Where a person to whom deductions have been allowed for payments referred to in subsection (1)( e ), ( f ) or ( g ) becomes entitled to any royalty or other payments (in one lump sum or otherwise) for the use of or right to use any technology or know‑how developed from the research and development activities conducted under the cost‑sharing agreement, such royalty or payments are deemed to be income of that person that is derived from Singapore for the year of assessment which relates to the basis period in which that person becomes entitled to the royalty or payments. [39/2017] (5) In this section — “concessionary income” means income that is subject to tax at a concessionary rate of tax; “concessionary rate of tax” means the rate of tax in accordance with — ( a ) any order made under section 13(12); ( b ) section 43C, 43D, 43E, 43F, 43G, 43H, 43I, 43J, 43K, 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 ( c ) section 21(9) or (13) or 23(1)( b ) (as the case may be) of the Economic Expansion Incentives (Relief from Income Tax) Act 1967; “cost‑sharing agreement” means any agreement or arrangement made by 2 or more persons to share the expenditure of research and development activities to be carried out under the agreement or arrangement; “normal income” means income that is subject to tax at the rate of tax specified in section 43(1)( a ); “specified amount”, in relation to any expenditure or payments, means an amount computed in accordance with the formula where A is the amount of the expenditure or payments (after deducting any amount in respect of which an election for a cash payout has been made under section 37G or 37R); B is the rate of tax specified in section 43(1)( a ); and C is — ( a ) in a case where the concessionary income derived by the person from the trade or business carried on by the person is subject to tax at a single concessionary rate of tax, that rate; or ( b ) in a case where the concessionary income derived by the person from the trade or business carried on by the person is subject to tax at 2 or more concessionary rates of tax, the higher or highest of those rates. [34/2016; 39/2017; 45/2018; 27/2021] [Act 30 of 2023 wef 30/10/2023] (6) In this section — ( a ) a reference to a payment made by a person under a cost‑sharing agreement is a reference to the expenditure that is allocated to the person for the person to bear under the cost‑sharing agreement, and the time the payment for any part of the expenditure becomes payable by the person or (if no such payment is needed) the time of the allocation, is treated as the time the payment is made; and ( b ) a reference to a payment made by a person under a cost‑sharing agreement excludes any payment for the right to be a party to the cost‑sharing agreement. [39/2017] (7) Subsection (6) is deemed to have effect for the year of assessment 2012 and every subsequent year of assessment. [14D [39/2017]


document_id: ita-1947
provision_ref: s14D
chapter: PART 5 - DEDUCTIONS AGAINST INCOME
section: 14D
title: Enhanced deduction for qualifying expenditure on research and development
content:
14D. —(1) Subject to this section, for the purpose of ascertaining the income of a person carrying on any trade or business during the basis period for any year of assessment between the year of assessment 2009 and the year of assessment 2028 (both years inclusive), there is allowed in respect of all of the person’s trades and businesses, in addition to the deductions allowed under section 14C, a deduction for expenditure or payments for research and development undertaken by the person, of an amount computed in accordance with the formula where U is the amount of qualifying expenditure incurred during the basis period on any local research and development undertaken directly by the person, including on that part undertaken in Singapore of any mixed research and development undertaken directly by that person, but excluding any capital expenditure on plant, machinery, land or buildings or on alterations, additions or extensions to buildings or in the acquisition of rights in or arising out of research and development; V is the aggregate of the following: ( a ) the amount referred to in subsection (2A) of payments made during the basis period by the person to a research and development organisation for undertaking local research and development on the person’s behalf, including for that part undertaken in Singapore of any mixed research and development that is undertaken by a research and development organisation on the person’s behalf; ( b ) the amount in one of the following sub‑paragraphs, whichever is applicable: (i) in the case of a year of assessment between the years of assessment 2012 and 2017 (both years inclusive), the amount in subsection (2A) of payments made during the basis period by the person under a cost‑sharing agreement — (A) for any local research and development; or (B) for such part of any mixed research and development that is undertaken in Singapore, regardless of who undertakes the research and development so long as it is undertaken wholly or partly for the person or on the person’s behalf; (ii) in the case of a year of assessment between the years of assessment 2018 and 2028 (both years inclusive), if the person makes any payment during the basis period under a cost‑sharing agreement, the sum of certain expenditure and payments (up to the amount in subsection (2AA)) that a party to the agreement (whether or not that person) has agreed to bear, and for which a deduction has not previously been allowed to the firstmentioned person under this sub‑paragraph, namely — (A) qualifying expenditure incurred by that person in undertaking a local research and development, or such part of a mixed research and development that is undertaken in Singapore; and (B) the amount mentioned in subsection (2AB) of payments made by that person to a research and development organisation for undertaking a local research and development, or a part of a mixed research and development in Singapore, on that person’s behalf; and A is — ( a ) for a year of assessment between the years of assessment 2009 and 2018 (both years inclusive) — 50%; or ( b ) for a year of assessment between the years of assessment 2019 and 2028 (both years inclusive) — 150%. [37/2014; 39/2017; 45/2018] [Act 30 of 2023 wef 30/10/2023] (1A) Subject to this section and section 37R, for the purpose of ascertaining the income of a person carrying on any trade or business during the basis period for any year of assessment between the years of assessment 2024 and 2028 (both years inclusive), there is allowed in respect of all of the person’s trades and businesses, in addition to the deductions allowed under subsection (1) and section 14C, a deduction for expenditure or payments for research and development undertaken by the person, of an amount computed in accordance with the formula where — ( a ) T is the lower of the following: (i) the aggregate of U and V; (ii) $400,000; and ( b ) U and V have the meanings given by subsection (1). [Act 30 of 2023 wef 30/10/2023] (2) Subject to this section and section 37J, for the purpose of ascertaining the income of a person carrying on any trade or business during the basis period for any year of assessment between the year of assessment 2011 and the year of assessment 2018 (both years inclusive), there is allowed in respect of all of the person’s trades and businesses, in addition to the deductions allowed under subsection (1) and section 14C, a deduction for expenditure or payments for research and development undertaken by the person, of — ( a ) an amount computed in accordance with the formula ( b ) if the aggregate of U, V, W and X exceeds the specified amount for the year of assessment, an amount computed in accordance with the formula where U and V have the meanings given by subsection (1); W is the amount of qualifying expenditure incurred during the basis period on any foreign research and development undertaken directly by the person, including on that part undertaken outside Singapore of any mixed research and development undertaken directly by that person, but excluding any capital expenditure on plant, machinery, land or buildings or on alterations, additions or extensions to buildings or in the acquisition of rights in or arising out of research and development; X is the aggregate of the following: ( a ) the amount referred to in subsection (2A) of payments made during the basis period by the person to a research and development organisation for undertaking any foreign research and development on the person’s behalf, including for that part undertaken outside Singapore of any mixed research and development that is undertaken by a research and development organisation on the person’s behalf; ( b ) subject to subsection (2AD), the amount referred to in subsection (2A) of payments made during the basis period (being the basis period for any year of assessment between the year of assessment 2012 and the year of assessment 2018 (both years inclusive)) by the person under a cost‑sharing agreement — (i) for any foreign research and development; or (ii) for that part of any mixed research and development that is undertaken outside Singapore, regardless of who undertakes the research and development so long as it is undertaken wholly or partly for the person or on the person’s behalf; Y is the whole or any part of the sum of U and V which the person has elected for inclusion in the computation of the deduction under this paragraph, which when aggregated with Z does not exceed the specified amount; and Z is the whole or any part of the sum of W and X which the person has elected for inclusion in the computation of the deduction under this paragraph, which when aggregated with Y does not exceed the specified amount. [37/2014; 39/2017] (2A) The amount of any of the payments in paragraphs ( a ) and ( b )(i) of the definition of V in subsection (1), and paragraphs ( a ) and ( b ) of the definition of X in subsection (2) is — ( a ) if more than 60% of all the payments made during the basis period to the research and development organisation or under the cost‑sharing agreement to which the definition applies are qualifying expenditure, the actual amount of the qualifying expenditure; or ( b ) in all other cases, 60% of all such payments, and where there is more than one research and development organisation or cost‑sharing agreement, the aggregate of all the amounts computed in this manner of the payments to every organisation or under every agreement. [39/2017] (2AA) The amount mentioned in paragraph ( b )(ii) of the definition of V in subsection (1) is the amount of the payments made during the basis period by the person under the cost‑sharing agreement. [39/2017] (2AB) In paragraph ( b )(ii)(B) of the definition of V in subsection (1), the amount is the higher of the following: ( a ) the part of those payments made to the research and development organisation that are qualifying expenditure; ( b ) 60% (or such other percentage as may be prescribed by rules made under section 7) of the sum of all of the payments made to the research and development organisation. [39/2017] (2AC) For the purposes of paragraph ( b )(ii) of the definition of V in subsection (1) (read with subsections (2AA) and (2AB)), where there is more than one cost‑sharing agreement or research and development organisation — ( a ) first, calculate each amount in those provisions relating to a cost‑sharing agreement or research and development organisation for every agreement or organisation; and ( b ) then, add up all amounts calculated under paragraph ( a ). [39/2017] (2AD) The amount mentioned in paragraph ( b ) of the definition of X in subsection (2)( b ) is, in the case of the year of assessment 2018, subject to a maximum amount computed in accordance with the formula A – B, where — ( a ) A is the amount of the payments made during the basis period by the person under the cost‑sharing agreement; and ( b ) B is the amount computed under paragraph ( b )(ii) of the definition of V in subsection (1) in relation to the same cost‑sharing agreement that qualifies for the deduction under subsection (1). [39/2017] (2B) In subsections (1) and (2) — “foreign research and development” means research and development that is undertaken outside Singapore, and that is related to the trade or business of the firstmentioned person in subsection (1); “local research and development” means research and development that is undertaken in Singapore; “mixed research and development” means research and development that is undertaken partly in Singapore and partly outside Singapore, and that is related to the trade or business of the firstmentioned person in subsection (1), (1A) or (2), as the case may be. [Act 30 of 2023 wef 30/10/2023] (3) The election under subsection (2)( b ) must be made at the time of lodgment of the return of income for the year of assessment or within such further time as the Comptroller may allow. (4) The specified amount referred to in subsection (2)( b ) is — ( a ) for the year of assessment 2011, $800,000; ( b ) for the year of assessment 2012, the balance after deducting from $800,000 the subsection (2) amount for the year of assessment 2011; ( c ) for the year of assessment 2013, $1,200,000; ( d ) for the year of assessment 2014, the balance after deducting from $1,200,000 the subsection (2) amount for the year of assessment 2013; ( e ) for the year of assessment 2015, the balance after deducting from $1,200,000 the subsection (2) amount for the year of assessment 2013 and the subsection (2) amount for the year of assessment 2014; ( f ) for the year of assessment 2016, $1,200,000; ( g ) for the year of assessment 2017, the balance after deducting from $1,200,000 the subsection (2) amount for the year of assessment 2016; or ( h ) for the year of assessment 2018, the balance after deducting from $1,200,000 the subsection (2) amount for the year of assessment 2016 and the subsection (2) amount for the year of assessment 2017. [37/2014] (5) In subsection (4) — ( a ) the amount under paragraph ( a ) of that subsection is substituted with “$400,000” if the person does not carry on any trade or business during the basis period for the year of assessment 2012; ( b ) the balance under paragraph ( b ) of that subsection is substituted with “$400,000” if the person does not carry on any trade or business during the basis period for the year of assessment 2011; ( c ) if the person does not carry on any trade or business during the basis period for any one year of assessment between the year of assessment 2013 and the year of assessment 2015 (both years inclusive), the references to “$1,200,000” in the paragraphs of that subsection applicable to the other 2 years of assessment are each substituted with “$800,000”; ( d ) if the person does not carry on any trade or business during the basis periods for any 2 years of assessment between the year of assessment 2013 and the year of assessment 2015 (both years


document_id: ita-1947
provision_ref: s14E
chapter: PART 5 - DEDUCTIONS AGAINST INCOME
section: 14E
title: Further deduction for expenditure on research and development project
content:
14E. —(1) Subject to this section, where the Comptroller is satisfied that — ( a ) a person carrying on any trade or business has incurred expenditure in undertaking directly by the person, or in paying a research and development organisation to undertake on the person’s behalf, an approved research and development project in Singapore which is related to that trade or business; ( aa ) a person carrying on any trade or business has incurred during the basis period for any year of assessment between the year of assessment 2009 and the year of assessment 2020 (both years inclusive) expenditure in undertaking directly by the person, or in paying a research and development organisation to undertake on the person’s behalf, an approved research and development project in Singapore which is not related to that trade or business; or ( b ) a research and development organisation has incurred expenditure in undertaking an approved research and development project in Singapore and no deduction under this section has been allowed to another person in respect of any expenditure for that project or for another project of which that project forms a part, there is allowed to that person or research and development organisation a further deduction of the amount of such expenditure in addition to the deduction allowed under section 14, 14C or 14D, as the case may be. [37/2014] (2) The Minister or such person as the Minister may appoint may — ( a ) specify the maximum amount of the expenditure (or any item thereof) incurred to be allowed under subsection (1); ( b ) impose such conditions as the Minister or appointed person thinks fit when approving the research and development project; and ( c ) specify the period or periods for which deduction is to be allowed under this section. (3) No deduction is allowed under this section in respect of any expenditure which is not allowed under section 14 or 14C. (3A) The total amount of deduction allowed under this section for any expenditure incurred by a person for an approved research and development project in Singapore must not, after adding the total amount of deductions allowed under sections 14, 14C and 14D for the same expenditure, result in the total amount of deductions for that expenditure exceeding 200% of that expenditure; and if it so exceeds then no deduction is allowed under this section for that expenditure. [45/2018] (3AA) No deduction is allowed to any person under this section in respect of any expenditure for which a deduction has been allowed under section 14D(2). (3B) Section 14C(4) and (5) applies in relation to the deduction of the expenditure and payments referred to in subsection (1)( aa ), as it applies in relation to the deduction of the expenditure and payments referred to in section 14C(1)( aa ), ( c ) and ( f ), subject to the following modifications: ( a ) a reference to the amount of the expenditure or payments is a reference to the amount of deduction that would have been allowed under this section for the expenditure or payments referred to in subsection (1)( aa ) but for this subsection; ( b ) a reference to a specified amount of the expenditure or payments is a reference to an amount computed in accordance with the formula where A is the amount of the deduction referred to in paragraph ( a ); B is the rate of tax specified in section 43(1)( a ); and C is — (i) in a case where the concessionary income (as defined in section 14C(5)) derived by the person from the trade or business carried on by the person is subject to tax at a single concessionary rate of tax, that rate; or (ii) in a case where the concessionary income derived by the person from the trade or business carried on by the person is subject to tax at 2 or more concessionary rates of tax, the higher or highest of those rates. (3C) No research and development project may be approved under this section after 31 March 2020. [37/2014] (4) In this section, “approved” means approved by the Minister or such person as the Minister may appoint.


document_id: ita-1947
provision_ref: s14EA
chapter: PART 5 - DEDUCTIONS AGAINST INCOME
section: 14EA
title: Deduction for expenditure incurred on qualifying innovation projects
content:
14EA. —(1) Subject to this section, for the purpose of ascertaining the income of a person carrying on a trade or business during the basis period for any year of assessment between the years of assessment 2024 and 2028 (both years inclusive), there is allowed in respect of all of the person’s trades and businesses, a deduction for qualifying expenditure incurred for a qualifying innovation project undertaken for the purpose of any of those trades and businesses, computed in accordance with the formula where A is the lower of the following: ( a ) the qualifying expenditure incurred during the basis period for that year of assessment; ( b ) $50,000. (2) Subsection (1) does not apply if — ( a ) a trade or business of the person involves the carrying out of one or more relevant activities on behalf of another person; and ( b ) the qualifying innovation project is undertaken in the course of carrying on that trade or business. (3) No deduction is allowed to a person under this section in respect of any expenditure for which a deduction or an allowance is given or made under section 14, 14A, 14C, 14D, 14U or 19B, as the case may be. (4) Where the qualifying expenditure incurred by a person is also eligible for a deduction under section 14C or 14D and that person makes a claim for a deduction under this section, no deduction under section 14C or 14D is allowed to that person in respect of the whole or any part of the qualifying expenditure. (5) For the purpose of subsection (1), a claim for deduction is allowed to a person only if — ( a ) there is an undertaking by the person that the expenditure is not incurred in the circumstances mentioned in subsection (2)( a ) and ( b ); and ( b ) the claim is made in such manner and subject to such conditions as the Comptroller may require. (6) For the purpose of subsection (1), where an individual carrying on a trade or business through 2 or more firms (excluding partnerships) has, during the basis period for any year of assessment between the years of assessment 2024 and 2028 (both years inclusive), incurred qualifying expenditure in respect of those firms for the purposes of the individual’s trade or business, the deduction that may be allowed to the individual for that expenditure in respect of all of the individual’s trades and businesses must not exceed the amount computed in accordance with subsection (1) for that year of assessment. (7) For the purposes of subsection (1), where a partnership carrying on a trade or business has, during the basis period for any year of assessment between the years of assessment 2024 and 2028 (both years inclusive), incurred qualifying expenditure for the purposes of the partnership’s trade or business, the aggregate of the deductions that may be allowed to all the partners of the partnership for that expenditure in respect of all of the trades and businesses of the partnership must not exceed the amount computed in accordance with subsection (1) for that year of assessment. (8) For the purposes of this section, any qualifying expenditure incurred by a person prior to the commencement of that person’s trade or business is treated as having been incurred by that person on the first day that the person carries on that trade or business, but a deduction for such expenditure is subject to section 14X. (9) In this section — “approved educational or research institution” means any institution approved by the Minister for the purpose of this section, that provides education or carries out research and development; “qualifying expenditure” means any payment made by a person to an approved educational or research institution for the purpose of undertaking a qualifying innovation project with the person; “qualifying innovation project” means a project that — ( a ) is undertaken by a person with an approved educational or research institution; ( b ) predominantly involves the carrying out of one or more relevant activities; and ( c ) is certified by the approved educational or research institution as a project that predominantly involves the carrying out of one or more relevant activities; “relevant activity” means an activity falling within any of the following categories of activities, being categories specified in the document “Oslo Manual 2018 — Guidelines for Collecting, Reporting and Using Data on Innovation” published by the Organisation for Economic Co-operation and Development on 22 October 2018: ( a ) research and experimental development activities; ( b ) engineering, design and other creative work activities; ( c ) intellectual property-related activities; ( d ) software development and database activities. (10) A reference in this section to qualifying expenditure excludes any expenditure to the extent that it is or is to be subsidised by any grant or subsidy from the Government or a statutory board. [Act 30 of 2023 wef 30/10/2023]


document_id: ita-1947
provision_ref: s14EB
chapter: PART 5 - DEDUCTIONS AGAINST INCOME
section: 14EB
title: Deduction for payment under innovation cost-sharing agreement
content:
14EB. —(1) Subject to this section, where a company carrying on a trade or business has made, in the period specified under subsection (2)( b ) for that agreement, any payment under an innovation cost-sharing agreement approved by the Minister or an authorised body on or after 19 February 2025 in respect of one or more qualifying innovation activities carried out under that agreement, there is allowed a deduction of the amount of such payment for the purpose of ascertaining the income of the company. (2) The Minister or authorised body may — ( a ) impose such conditions as the Minister or authorised body thinks fit when approving an innovation cost-sharing agreement; and ( b ) specify the period during which any payment made under the innovation cost-sharing agreement is allowed a deduction under this section. (3) The Minister or authorised body may approve an innovation cost-sharing agreement only if — ( a ) the agreement provides that any benefit arising from the agreement accrues (whether wholly or partly) to the company; ( b ) there is an undertaking by the company that at least one of the qualifying innovation activities is to be carried out by or on behalf of the company (whether wholly or partly) in Singapore; and ( c ) such other requirements as the Minister or authorised body specifies, are satisfied. (4) A deduction is not allowed under subsection (1) if — ( a ) benefit arising from the approved innovation cost-sharing agreement (if any) does not accrue (whether wholly or partly) to the company; or ( b ) no qualifying innovation activity is carried out in Singapore by or on behalf of the company. (5) No approval under this section may be granted after 31 December 2030. (6) If any benefit that arose from an approved innovation cost-sharing agreement during the period specified for it under subsection (2)( b ) is sold, assigned or otherwise disposed of at any time by the company to which a deduction has been allowed under subsection (1), the lower of the following is treated as a trading receipt of the company’s trade or business for the year of assessment which relates to the basis period in which the sale, assignment or disposal occurs: ( a ) the amount of deduction that has been allowed under subsection (1) that is attributable to the benefit, to the extent that this amount of deduction has not been previously treated as a trading receipt under this subsection; ( b ) the amount or value of the consideration received by the company from the sale, assignment or disposal. (7) If, for any reason, the deduction cannot be attributed to that benefit, the full amount of the deduction that has been allowed under subsection (1) is treated as being attributable to that benefit. (8) A sale, assignment or disposal of any benefit that occurs after the date on which the company permanently ceases its trade or business is treated as having occurred immediately before the cessation. (9) The payment mentioned in subsection (1) does not include any payment to the extent that it is or is to be subsidised by grants or subsidies from the Government or a statutory board. (10) Where a company to which a deduction has been allowed for any payment made under this section becomes entitled to any royalty or other payments (in one lump sum or otherwise) for the use of or right to use any technology, know‑how or intellectual property developed from a qualifying innovation activity carried out under the approved innovation cost-sharing agreement, such royalty or payments are treated as income of that company that is derived from Singapore for the year of assessment which relates to the basis period in which that company becomes entitled to the royalty or payments, as the case may be. (11) Where an innovation cost-sharing agreement has been approved by the Minister or authorised body for the purposes of this section, then during the period specified under subsection (2)( b ) for the agreement — ( a ) a company is only allowed a deduction under this section in respect of any payment made under the agreement; and ( b ) no deduction or allowance is allowed under section 14A, 14C, 14D, 14EA, 14U or 19B in respect of such payment despite anything in that section. (12) For the purposes of this section, any payment made by a company prior to the commencement of that company’s trade or business is treated as having been made by that company on the first day that the company carries on that trade or business, but a deduction for such payment is subject to section 14X. (13) In this section — ( a ) a reference to a payment made by a company under an innovation cost-sharing agreement is a reference to the expenditure that is allocated to the company to bear under the agreement, and the time the payment for any part of the expenditure becomes payable by the company or (if no such payment is needed) the time of the allocation, is treated as the time the payment is made; and ( b ) a reference to a payment made by a company under an innovation cost-sharing agreement excludes any payment for the right to be a party to the agreement. (14) In this section — “benefit”, in relation to an innovation cost-sharing agreement, means — ( a ) any right arising from the agreement; ( b ) any technology, know-how, intellectual property or software developed from any qualifying innovation activity carried out under the agreement; or ( c ) any asset acquired under the agreement; “innovation cost-sharing agreement” means any agreement or arrangement made by 2 or more related parties to share the expenditure of qualifying innovation activities to be carried out under the agreement or arrangement (and no other expenditure); “qualifying innovation activity” means an activity falling within any of the following categories of activities, being categories specified in the document entitled “Oslo Manual 2018 — Guidelines for Collecting, Reporting and Using Data on Innovation” that is published by the Organisation for Economic Co-operation and Development on 22 October 2018: ( a ) research and experimental development activities; ( b ) engineering, design and other creative work activities; ( c ) intellectual property-related activities; ( d ) software development and database activities; ( e ) marketing and brand equity activities; ( f ) employee training activities; ( g ) activities related to the acquisition or lease of tangible assets; ( h ) innovation management activities. [Act 25 of 2025 wef 19/02/2025]


document_id: ita-1947
provision_ref: s14F
chapter: PART 5 - DEDUCTIONS AGAINST INCOME
section: 14F
title: Expenditure on building modifications for benefit of disabled employees
content:
14F. —(1) Subject to subsections (2) and (3), where any person being the owner or lessee of any premises and carrying on a trade, business or profession at those premises has incurred approved expenditure on any addition or alteration to those premises for the purpose of facilitating the mobility or work of any disabled employee, there is, in ascertaining the income of that person for the basis period during which the expenditure was incurred, allowed as a deduction an amount equal to that expenditure. (2) Where any person has been allowed a deduction under subsection (1), no deduction is allowed under any other provision of this Act in respect of the expenditure for which the deduction was allowed. (3) Where a person has been allowed a deduction or deductions under this section amounting to $100,000, whether for one or more years of assessment, no further deduction is allowed to that person under this section. (4) In this section, “approved” means approved by the Minister or such person as the Minister may appoint. (5) No approval may be granted under this section after 14 February 2023. [Act 30 of 2023 wef 15/02/2023] [14H


document_id: ita-1947
provision_ref: s14G
chapter: PART 5 - DEDUCTIONS AGAINST INCOME
section: 14G
title:
Provisions by banks and qualifying finance companies for impairment losses, etc., from non‑credit‑impaired loans and securities

content:
14G. —(1) Subject to this section, for the purpose of ascertaining the income for the basis period for any year of assessment of a bank or qualifying finance company, there is allowed as a deduction an amount in respect of provisions made in that basis period by the bank or qualifying finance company for impairment losses or expected credit losses arising from its loans or investments in securities, or both, where the loans or securities are not credit‑impaired (each called in this section provision for losses). [Act 25 of 2025 wef 08/12/2025] (2) Where in the basis period for any year of assessment — ( a ) any amount of the provisions for losses is written back, that amount is treated as having been allowed as a deduction under this section and is deemed to be a trading receipt of the bank or qualifying finance company for that basis period except as provided in subsection (2CA); [Act 30 of 2023 wef 30/10/2023] [Act 25 of 2025 wef 08/12/2025] ( b ) the bank or qualifying finance company permanently ceases to carry on business in Singapore, any provisions for losses in the account of the bank or qualifying finance company as at the date of the cessation are deemed to be a trading receipt of the bank or qualifying finance company for that basis period. [Act 25 of 2025 wef 08/12/2025] (2A) If, for a basis period beginning on or after 1 January 2018, the relevant amount for the bank or qualifying finance company is a negative amount, then, for the purpose of subsection (1), the bank or qualifying finance company is treated as having made in that basis period provisions for losses of an amount equal to that amount expressed as a positive amount. [45/2018] [Act 25 of 2025 wef 08/12/2025] (2B) If, for a basis period beginning on or after 1 January 2018, the relevant amount for the bank or qualifying finance company is a positive amount, then, for the purpose of subsection (2)( a ), the bank or qualifying finance company is treated as having written back in that basis period an amount of its provisions for losses that is equal to that amount. [45/2018] [Act 25 of 2025 wef 08/12/2025] (2C) The relevant amount for the bank or qualifying finance company in subsections (2A) and (2B) is an amount computed using the formula A + B + C, where — ( a ) A is — (i) if a loss is recognised, in accordance with FRS 109 or SFRS(I) 9 (as the case may be), in the profit and loss account of the bank or qualifying finance company for that basis period in respect of its loans that are not credit‑impaired, owing to any provisions for losses that are made for expected credit losses that arose from those loans, the amount of that loss expressed as a negative amount; or [Act 25 of 2025 wef 08/12/2025] (ii) if a gain is recognised, in accordance with FRS 109 or SFRS(I) 9 (as the case may be), in the profit and loss account of the bank or qualifying finance company for that basis period in respect of its loans that are not credit‑impaired, owing to a write‑back of any provisions for losses that are made for expected credit losses that arose from those loans, the amount of that gain expressed as a positive amount; [Act 25 of 2025 wef 08/12/2025] ( b ) B is — (i) if a loss is recognised, in accordance with FRS 109 or SFRS(I) 9 (as the case may be), in the profit and loss account of the bank or qualifying finance company for that basis period in respect of its investments in securities that are not credit‑impaired, owing to any provisions for losses that are made for expected credit losses that arose from those securities, the amount of that loss expressed as a negative amount; or [Act 25 of 2025 wef 08/12/2025] (ii) if a gain is recognised, in accordance with FRS 109 or SFRS(I) 9 (as the case may be), in the profit and loss account of the bank or qualifying finance company for that basis period in respect of its investments in securities that are not credit‑impaired, owing to a write‑back of any provisions for losses that are made for expected credit losses that arose from those securities, the amount of that gain expressed as a positive amount; and [Act 25 of 2025 wef 08/12/2025] ( c ) C is — (i) if an MAS notice mentioned in subsection (6A) requires the bank or qualifying finance company to make for that basis period an amount of allowance for loans or investments in securities that are not credit‑impaired, and that amount is recognised in the retained earnings account of the bank or qualifying finance company as required by that MAS notice, that amount expressed as a negative amount; or (ii) if an MAS notice mentioned in subsection (6A) requires the bank or qualifying finance company to reverse an amount of any allowance mentioned in sub‑paragraph (i) for a basis period, and that amount is recognised in the retained earnings account of the bank or qualifying finance company as required by that MAS notice, that amount expressed as a positive amount. [45/2018] (2CA) Subject to subsection (2CB), subsection (2)( a ) does not apply to the following provisions and allowance written back by a bank or qualifying finance company in the basis period for the year of assessment 2022 or any subsequent year of assessment: ( a ) a provision for losses that are made for expected credit losses that arose from any of the following loans that are not credit-impaired, being losses that were recognised in accordance with FRS 109 or SFRS(I) 9 (as the case may be) in the basis period for the year of assessment 2021 or any preceding year of assessment: (i) a loan to and placement with any financial institution in Singapore or any other country; (ii) a loan to the Government or the government of any other country; (iii) a loan to and placement with the Monetary Authority of Singapore or the central bank or other monetary authority of any other country; (iv) a loan to any statutory body or corporation guaranteed by the Government or the government of any other country; (v) such other loan or advance as may be prescribed by rules made under section 7; [Act 25 of 2025 wef 08/12/2025] ( b ) a provision for losses that are made for expected credit losses that arose from securities issued or guaranteed by the Government or the government of any country that are not credit-impaired, being losses that were recognised in accordance with FRS 109 or SFRS(I) 9 (as the case may be) in the basis period for the year of assessment 2021 or any preceding year of assessment; [Act 25 of 2025 wef 08/12/2025] ( c ) an allowance for any loan mentioned in paragraph ( a )(i) to (v) or any investment in securities mentioned in paragraph ( b ) where the loan or securities are not credit-impaired, being allowances that were recognised in the retained earnings account of the bank or qualifying finance company as required by an MAS notice in the basis period for the year of assessment 2021 or any preceding year of assessment. [Act 30 of 2023 wef 30/10/2023] (2CB) Subsection (2CA) applies only if the bank or qualifying finance company is able to directly identify, to the satisfaction of the Comptroller, the amount of the provision or allowance mentioned in paragraph ( a ), ( b ) or ( c ) of that subsection that was written back in the basis period for the year of assessment concerned. [Act 30 of 2023 wef 30/10/2023] (2D) For the purpose of subsection (2)( b ), if the bank or qualifying finance company permanently ceases to carry on business in Singapore in a basis period beginning on or after 1 January 2018, then the amount that is deemed as its trading receipts for that basis period is the sum of — ( a ) any provisions in its expected credit loss allowance account in respect of loans and securities that are not credit‑impaired at the date of the cessation; and ( b ) any provisions at that date in the reserve account that it is required to maintain by an MAS notice. [45/2018] (2E) Where, in any basis period that begins on a day before 1 January 2018 — ( a ) the bank or qualifying finance company prepares or maintains financial accounts in accordance with FRS 109 or SFRS(I) 9 (as the case may be), even though it is only required to do so in a later basis period; and ( b ) the relevant amount for it is a negative amount, then, for the purpose of subsection (1), the bank or qualifying finance company is treated as having made in that basis period provisions for losses of an amount equal to that amount expressed as a positive amount. [45/2018] [Act 25 of 2025 wef 08/12/2025] (2F) Where, in any basis period that begins on a day before 1 January 2018 — ( a ) the bank or qualifying finance company prepares or maintains financial accounts in accordance with FRS 109 or SFRS(I) 9 (as the case may be), even though it is only required to do so in a later basis period; and ( b ) the relevant amount for it is a positive amount, then, for the purpose of subsection (2)( a ), the bank or qualifying finance company is treated as having written back in that basis period an amount of its provisions that is equal to that amount. [45/2018] (2G) The relevant amount for the bank or qualifying finance company in subsections (2E) and (2F) is an amount computed using the formula A + B, where A and B have the meanings given by subsection (2C). [45/2018] (2H) The Minister may make regulations to provide for any transitional matter in connection with the application of subsections (2A) to (2G) to a bank or qualifying finance company for the year in which it first becomes a qualifying person within the meaning of section 34AA, including substituting a provision in place of subsection (5). [45/2018] (3) The total amount deemed as trading receipts under subsection (2), (2B), (2D), (2F) or (4A)( f ) must not exceed the total amount of all deductions previously allowed under this section. [45/2018] (4) Where in a scheme of amalgamation involving 2 or more banks or finance companies whereby the whole or substantially the whole of the undertaking of any bank or finance company is transferred to another bank or finance company, the Minister may, if he or she thinks fit and on such conditions as he or she may impose, by order declare that any provisions in the account of the transferor bank or transferor finance company which have been transferred to the transferee bank or transferee finance company are not deemed under subsection (2)( b ) to be a trading receipt of the transferor bank or transferor finance company; and the provisions so declared are for the purposes of this section treated as having been allowed to the transferee bank or transferee finance company as a deduction under this section. (4A) Where — ( a ) loans or securities are transferred by a bank or qualifying finance company (called in this subsection the transferor) to another person (called in this subsection the transferee); ( b ) the transfer is not pursuant to a scheme of amalgamation; ( c ) a provision for losses made for impairment losses or expected credit losses that arose from those loans or investments in those securities, is also transferred by the transferor to the transferee; and [Act 25 of 2025 wef 08/12/2025] ( d ) a deduction of an amount in respect of that provision was previously allowed under this section to the transferor, then — ( e ) in a case where both the transferor and the transferee are in the business of lending money on the date of the transfer, the deduction previously allowed to the transferor is treated, for the purposes of this section, as having been allowed to the transferee under this section; and ( f ) in any other case, the provision is treated as a trading receipt of the transferor for the basis period in which the date of transfer falls. [39/2017; 45/2018] (5) Subject to subsection (6), the total amount of the provisions to be allowed as a deduction under this section for any year of assessment must not exceed the lowest of — ( a ) 25% of the qualifying profits for the basis period for that year of assessment; ( b ) 1 / 2 % of the prescribed value of the loans and investments in securiti


document_id: ita-1947
provision_ref: s14H
chapter: PART 5 - DEDUCTIONS AGAINST INCOME
section: 14H
title: Further or double deduction for overseas investment development expenditure
content:
14H. —(1) Where the Comptroller is satisfied that any investment development expenditure for the carrying out of an approved investment project overseas has been incurred by an approved firm or company resident in Singapore and carrying on business in Singapore, there is to be allowed — ( a ) where such expenditure is allowable as a deduction under section 14, a further deduction of the amount of such expenditure in addition to the deduction allowed under that section; or ( b ) where such expenditure is not allowable as a deduction under section 14, a deduction equal to twice the amount of such expenditure. (1A) For the purposes of subsection (1) and subject to subsection (1B), the firm or company — ( a ) need not be an approved firm or approved company to be allowed a deduction under subsection (1) in respect of the following expenditure that is directly attributable to the carrying out of any study to identify investment overseas: (i) where the expenditure is incurred during the period between 1 April 2012 and 16 February 2021 (both dates inclusive) — any investment development expenditure; (ii) where the expenditure is incurred during the period between 17 February 2021 and 31 December 2030 (both dates inclusive) — such investment development expenditure as is prescribed by rules made under section 7; and [Act 25 of 2025 wef 08/12/2025] ( b ) need not seek approval for the investment project to which the expenditure relates. [45/2018; 41/2020; 27/2021] (1AA) Rules made for the purposes of subsection (1A)( a )(ii) may be made to take effect from (and including) 17 February 2021. [27/2021] (1B) The amount of the expenditure for which the deduction may be allowed under subsection (1A), after adding the expenditure for which a deduction is allowed to the firm or company under section 14B(2A), must not exceed — ( a ) for a year of assessment before the year of assessment 2019 — $100,000; or ( b ) for the year of assessment 2019 or a subsequent year of assessment — $150,000. [45/2018] (2) The Minister or an authorised body may — ( a ) specify the maximum amount of investment development expenditure for the carrying out of an approved investment project overseas (or any item thereof) to be allowed under subsection (1), other than expenditure that is the subject of a claim for deduction under subsection (1A); and ( b ) impose such conditions as the Minister or authorised body thinks fit when approving the investment project for which the deduction is to be allowed under this section. [Act 41 of 2020 wef 12/04/2024] (2A) The sum of — ( a ) the amount of expenditure allowed as a deduction or a further deduction to a firm or company under subsection (1); and ( b ) any amount of expenditure allowed as a deduction or a further deduction to the firm or company under section 14I(1), must not exceed $1 million for each year of assessment. [2/2016] (3) No deduction is allowed under this section in respect of — ( a ) travelling, accommodation and subsistence expenses or allowances for — (i) more than 2 employees taking part in any study to identify investment overseas; or (ii) more than the approved number of employees taking part in any feasibility or due diligence study on any approved investment overseas; ( b ) any expenditure incurred during the basis period for a year of assessment by a firm or company if — (i) any part of its income for that year of assessment is exempt or partly exempt from tax under section 13A, 13E, 13P or 13S; (ii) any part of its income for that year of assessment is subject to tax at a concessionary rate of tax under section 43C, 43D, 43E, 43G, 43I, 43J, 43L, 43P, 43Q, 43R, 43U, 43V or 43X, or the regulations made under any of those sections; or (iii) it is given tax relief under Part 2, 3 or 4 of the Economic Expansion Incentives (Relief from Income Tax) Act 1967 for that year of assessment, or is given an investment allowance under Part 8 of that Act for that year of assessment; or ( c ) any expenditure to the extent it is or is to be subsidised by a grant or subsidy from the Government or a statutory board. [2/2016; 45/2018] (4) Despite subsection (3), the Minister or an authorised body may, in any particular case, and subject to such conditions precedent and conditions subsequent as the Minister or authorised body may impose, allow a deduction of any expenditure referred to in subsection (3)( b ). [2/2016] [Act 41 of 2020 wef 12/04/2024] (5) If the firm or company fails to comply with a condition subsequent imposed under subsection (4), the deduction allowed to the firm or company under that subsection is treated as the firm’s or company’s income for the year of assessment in which the Comptroller discovers the non‑compliance. [2/2016] (5A) In relation to a deduction under this section, a condition is a condition subsequent if or to the extent that it can only be satisfied after the deduction is allowed, and a condition is a condition precedent if or to the extent that it is not a condition subsequent; and accordingly a condition may, depending on the circumstances, be either a condition precedent or a condition subsequent. [2/2016] (6) Section 14B(10) applies, with the necessary modifications, to any firm or company to which a deduction is allowed under subsection (1). (7) In this section — “approved” means approved by the Minister or an authorised body; [Act 41 of 2020 wef 12/04/2024] “investment development expenditure” means — ( a ) expenses directly attributable to the carrying out of — (i) any study to identify investment overseas; and (ii) any feasibility or due diligence study on any approved investment overseas; and ( b ) expenses incurred on or after 17 February 2021 for the transportation of any sample for use in any study carried out overseas to identify investment overseas. [27/2021] (8) No approval may be granted under this section after 31 December 2030. [14K [34/2016; 41/2020] [Act 25 of 2025 wef 08/12/2025]


document_id: ita-1947
provision_ref: s14I
chapter: PART 5 - DEDUCTIONS AGAINST INCOME
section: 14I
title: Further or double deduction for salary expenditure for employees posted overseas
content:
14I. —(1) Where the Comptroller is satisfied that — ( a ) an approved firm or company resident and carrying on business in Singapore has incurred, at any time between 1 July 2015 and 31 December 2025 (both dates inclusive), salary expenditure specified for it under subsection (7) for its employees posted to an overseas establishment of the firm or company; and ( b ) the firm or company has satisfied the conditions precedent imposed under subsection (6) for a deduction under this section, then there is to be allowed to the firm or company — ( c ) where such expenditure is allowable as a deduction under section 14, a further deduction of the amount of such expenditure in addition to the deduction allowed under that section; or ( d ) where such expenditure is not allowable as a deduction under section 14, a deduction equal to twice the amount of such expenditure. [2/2016; 41/2020] (2) No deduction is to be allowed under subsection (1) for salary expenditure that is incurred more than 3 years after either of the following dates: ( a ) the date the overseas establishment is incorporated, established or formed; ( b ) if the overseas establishment (being a company) is an overseas establishment of the approved firm or company as a result of any shareholding of the approved firm or company in the establishment, but the firm or company did not hold any shares in the overseas establishment on the date of the establishment’s incorporation, the earliest date on which the firm or company acquires any shares in the overseas establishment. [2/2016] (3) Subject to subsection (4), the amount of salary expenditure allowed as a deduction for a year of assessment under subsection (1) must not exceed the amount specified for the firm or company under subsection (8). [2/2016] (4) The sum of — ( a ) the amount of expenditure allowed as a deduction or a further deduction to a firm or company under subsection (1); and ( b ) any amount of expenditure allowed as a deduction or a further deduction to the firm or company under section 14H(1), must not exceed $1 million for each year of assessment. [2/2016] (5) The Minister or an authorised body may approve a firm or company for the purposes of claiming a deduction under subsection (1). [2/2016] [Act 41 of 2020 wef 12/04/2024] (6) When approving a firm or company under subsection (5), the Minister or authorised body may impose conditions precedent and conditions subsequent for a deduction under this section. [2/2016] [Act 41 of 2020 wef 12/04/2024] (7) When approving a firm or company under subsection (5), the Minister or authorised body must specify the salary expenditure for which the firm or company may be allowed the deduction by reference to — ( a ) the employees for whom the expenditure is incurred; ( b ) the overseas establishment in which they work; ( c ) the work which they carry out in the overseas establishment; and ( d ) the period in which the expenditure is incurred. [2/2016] [Act 41 of 2020 wef 12/04/2024] (8) When approving a firm or company under subsection (5), the Minister or authorised body may also specify the maximum amount of expenditure for which the deduction is allowed. [2/2016] [Act 41 of 2020 wef 12/04/2024] (9) No approval may be granted under subsection (5) after 31 December 2025. [2/2016; 41/2020] (10) No deduction may be allowed under subsection (1) in respect of — ( a ) any expenditure incurred during the basis period for a year of assessment by a firm or company if — (i) any part of its income for that year of assessment is exempt or partly exempt from tax under section 13A, 13E, 13P or 13S; (ii) any part of its income for that year of assessment is subject to tax at a concessionary rate of tax under section 43C, 43D, 43E, 43G, 43I, 43J, 43L, 43P, 43Q, 43R, 43U, 43V or 43X, or the regulations made under any of those sections; or (iii) it is given tax relief under Part 2, 3 or 4 of the Economic Expansion Incentives (Relief from Income Tax) Act 1967 for that year of assessment, or is given an investment allowance under Part 8 of that Act for that year of assessment; or ( b ) any expenditure to the extent it is or is to be subsidised by a grant or subsidy from the Government or a statutory board. [2/2016; 45/2018] (11) Despite subsection (10), the Minister or an authorised body may, in any particular case, subject to such conditions precedent and conditions subsequent as the Minister or authorised body may impose, allow a deduction of any expenditure referred to in subsection (10)( a ). [2/2016] [Act 41 of 2020 wef 12/04/2024] (12) A firm or company is not entitled to a deduction under subsection (1) for any salary expenditure if and to the extent that an overseas establishment of the firm or company has been allowed at any time a deduction for it under any law relating to income tax or tax of a similar character of a country outside Singapore. [2/2016] (13) Despite anything in this section, where it appears to the Comptroller that in any year of assessment any deduction which has been allowed under this section ought not to have been allowed, the Comptroller may, within the year of assessment or within 4 years after the expiry of that year of assessment, make such assessment or additional assessment upon the firm or company as may be necessary to make good any loss of tax. [2/2016] (14) If a condition subsequent imposed under subsection (6) is not complied with in respect of any deduction allowed to a firm or company under subsection (1) or part of such deduction, the deduction or part of the deduction is treated as the firm’s or company’s income for the year of assessment in which the Comptroller discovers the non‑compliance. [2/2016] (15) If a condition subsequent imposed under subsection (11) is not complied with, the deduction allowed to the firm or company under that subsection is treated as the firm’s or company’s income for the year of assessment in which the Comptroller discovers the non‑compliance. [2/2016] (16) Where a firm or company has been allowed a deduction under subsection (1) even though it is not entitled to it or a part of it by reason of subsection (12), the deduction or part of the deduction is treated as the firm’s or company’s income for the year of assessment in which the Comptroller discovers the facts by reason of which the firm or company is not entitled to the deduction or part of it. [2/2016] (17) If, at any time after a firm or company has been allowed a deduction under subsection (1) for any salary expenditure, the firm or company is reimbursed for any amount of the expenditure, the amount of the deduction that corresponds to the expenditure reimbursed is treated as the firm’s or company’s income for the year of assessment in which the Comptroller discovers the reimbursement. [2/2016] (18) In this section — “overseas establishment”, in relation to an approved firm or company, means any of the following: ( a ) a branch, representative office, or subsidiary of the firm or company that is established, formed or incorporated in a country outside Singapore; ( b ) a partnership of which the firm or company is a partner, that is established or formed in a country outside Singapore; ( c ) such other entity as the Minister or authorised body approves as an overseas establishment of the firm or company at the time of the approval of the firm or company under subsection (5); [Act 41 of 2020 wef 12/04/2024] “salary expenditure”, in relation to an employee of a firm or company, means expenditure comprising wages and salary for the employee, but excludes any bonus, commission, gratuity, leave pay, perquisite, allowance, or any other payment (whether in cash or kind) prescribed under section 7. [2/2016] (19) In this section, a firm or company is treated as having incurred salary expenditure for its employees posted to an overseas establishment of the firm or company, if — ( a ) it directly incurs that amount of expenditure for which it is not reimbursed; or ( b ) the overseas establishment directly incurs that amount of expenditure and the firm or company is liable to reimburse the overseas establishment for it, and the incurring of the expenditure and of the liability both occur — (i) when the firm or company is an approved firm or company resident and carrying on business in Singapore; and (ii) in the period between 1 July 2015 and 31 December 2025 (both dates inclusive). [2/2016; 41/2020] (20) In a case referred to in subsection (19)( b ), the date on which salary expenditure is treated as incurred for the purposes of subsection (2) is the later of the date it is incurred by the overseas establishment and the date the firm or company incurs the liability to reimburse the overseas establishment. [2/2016] (21) In relation to a deduction under this section, a condition is a condition subsequent if or to the extent that it can only be satisfied after the deduction is allowed, and a condition is a condition precedent if or to the extent that it is not a condition subsequent; and accordingly a condition may, depending on the circumstances, be either a condition precedent or a condition subsequent. [14KA [2/2016]


