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Contents  

Long Title

Part I PRELIMINARY

Part II ADMINISTRATION

Part III IMPOSITION OF INCOME TAX

Part IV EXEMPTION FROM INCOME TAX

Part V DEDUCTIONS AGAINST INCOME

Part VI CAPITAL ALLOWANCES

Part VII ASCERTAINMENT OF CERTAIN INCOME

Part VIII ASCERTAINMENT OF STATUTORY INCOME

Part IX ASCERTAINMENT OF ASSESSABLE INCOME

Part X ASCERTAINMENT OF CHARGEABLE INCOME AND PERSONAL RELIEFS

Part XI RATES OF TAX

Part XII DEDUCTION OF TAX AT SOURCE

Part XIII ALLOWANCES FOR TAX CHARGED

Part XIV RELIEF AGAINST DOUBLE TAXATION

Part XV PERSONS CHARGEABLE

Husband and wife

Trustees, agents and curators

Part XVI RETURNS

Part XVII ASSESSMENTS AND OBJECTIONS

Part XVIII APPEALS

Part XIX COLLECTION, RECOVERY AND REPAYMENT OF TAX

Part XX OFFENCES AND PENALTIES

Part XXI MISCELLANEOUS

FIRST SCHEDULE Institution, Authority, Person or Fund Exempted

SECOND SCHEDULE Rates of Tax

THIRD SCHEDULE

FOURTH SCHEDULE Name of Bond, Securities, Stock or Fund

FIFTH SCHEDULE Child Relief

SIXTH SCHEDULE Number of Years of Working Life of Asset

SEVENTH SCHEDULE Advance Rulings

Legislative History

Comparative Table

 
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On 21/10/2017, you requested the version in force on 01/09/2007 incorporating all amendments published on or before 19/08/2017.
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PART VIII
ASCERTAINMENT OF STATUTORY INCOME
Basis for computing statutory income
35.
—(1)  Except as provided in this section, the income of any person for each year of assessment (referred to in this Act as the statutory income) shall be the full amount of his income for the year preceding the year of assessment from each source of income after the deduction provided under subsection (2).
[21/2003]
(2)  There shall be deducted any allowance falling to be made under section 16, 17, 18A (repealed), 19, 19A, 19B, 19C, 19D or 20 that is not fully deducted and which would otherwise be added to, and deemed to form part of, the corresponding allowance for the next succeeding year of assessment under section 23(1).
[21/2003]
(2A)  A deduction under subsection (2) shall be made in the following order:
(a)
firstly, against income from any trade, business, profession or vocation; and
(b)
secondly, against income from any other source.
(3)  For the purposes of subsection (2), the balance of allowance for the earliest year of assessment shall be deemed to have been deducted first, followed by the balance of allowance for the next earliest year of assessment, and so on.
[21/2003]
(4)  Where the Comptroller is satisfied that any person usually makes up the accounts of a trade, business, profession or vocation carried on or exercised by him, to some day other than that immediately preceding any year of assessment, he may direct that the statutory income from that source be computed on the amount of gains or profits of the year ending on that day in the year preceding the year of assessment.
(5)  Notwithstanding any other provisions of this Act, where any dividend derived from Singapore by any person is assessed to tax on a basis period ending on a date other than 31st December, any such dividend —
(a)
derived during the period from 1st January 1992 to 31st December 1992 shall be treated as his statutory income for the year of assessment 1993 and be charged to tax at the rate applicable to him for that year of assessment;
(b)
derived during the period from 1st January 1995 to 31st December 1995 shall be treated as his statutory income for the year of assessment 1996 and be charged to tax at the rate applicable to him for that year of assessment;
(c)
derived during the period from 1st January 1999 to 31st December 1999 shall be treated as his statutory income for the year of assessment 2000 and be charged to tax at the rate applicable to him for that year of assessment;
(d)
derived during the period from 1st January 2000 to 31st December 2000 shall be treated as his statutory income for the year of assessment 2001 and be charged to tax at the rate applicable to him for that year of assessment;
(e)
derived during the period from 1st January 2001 to 31st December 2001 shall be treated as his statutory income for the year of assessment 2002 and be charged to tax at the rate applicable to him for that year of assessment
[1/90; 20/91; 28/92; 26/93; 1/98; 24/2000; 24/2001; 37/2002]
(f)
derived during the period from 1st January 2003 to 31st December 2003 shall be treated as his statutory income for the year of assessment 2004 and be charged to tax at the rate applicable to him for that year of assessment.
(6)  Where the statutory income of any personfrom a trade, business, profession or vocation has been computed by reference to an account made up to a certain day, and such person fails for any reason whatsoever to make up an account to the corresponding day in the year following, the statutory incomefrom the trade, business, profession or vocation both of the year of assessment in which such failure occurs and of the 2 years of assessment following shall be computed on such basis as the Comptroller in his discretion thinks fit.
(7)  Where in the case of any trade, business, profession or vocationit is necessary in order to arrive at the income of any year of assessment or other period, to divide and apportion to specific periods the income of any period for which accounts have been made up, or to aggregate such income or any apportioned parts thereof, it shall be lawful to make such a division, and apportionment or aggregation, and any apportionment under this section shall be made in proportion to the number of days in the respective periods, unless the Comptroller, having regard to any special circumstances, otherwise directs.
(8)  The statutory income of an executor of a deceased person for any year of assessment shall be the income of the estate administered by such executor computed in accordance with subsections (1) to (7).
(9)  In the case of an estate administered in Singapore a deduction shall be allowed in respect of any income included in the computation of the statutory income which is received by, distributed to or applied to the benefit of any beneficiary of the estate before 31st March in the year next following the year of assessment.
(10)  The statutory income of any beneficiary of such estate shall be the amount so received by, or distributed to him, or applied to his benefit during the year preceding the year of assessment.
(11)  The statutory income of a trustee (not being the trustee of an incapacitated person) for any year of assessment shall be computed in accordance with subsections (1) to (7).
(12)  The following income shall not form part of the statutory income of any designated unit trust or any approved CPF unit trust for any year of assessment:
(a)
gains or profits derived from Singapore or elsewhere from the disposal of securities;
(b)
interest (other than interest for which tax has been deducted under section 45); and
(c)
dividends derived from outside Singapore and received in Singapore.
[32/95; 31/98]
(12A)  The income referred to in section 10(20A) shall not form part of the statutory income of any designated unit trust or approved CPF unit trust for any year of assessment.
(13)  No deduction under section 14 shall be allowed in respect of any outgoings and expenses (including any expenses arising from the management of investments) incurred by any designated unit trust or any approved CPF unit trust against any income derived by the unit trust from —
(a)
dividends paid by any company resident in Singapore; and
(b)
interest for which tax has been deducted under section 45.
[32/95; 31/98]
(13A)  No deduction under section 14 shall be allowed in respect of any outgoings and expenses (including any expenses arising from the management of investments) incurred by any designated unit trust or approved CPF unit trust against any income derived by the unit trust from discount, fees and compensatory payments for which tax has been deducted under section 45A.
(14)  In subsections (12), (13) and (13A) —
“approved CPF unit trust” means any unit trust scheme approved for the purposes of any investment scheme under the Central Provident Fund Act (Cap. 36);
“compensatory payment” has the same meaning as in section 10N(12);
“designated” means designated by the Minister or such person as he may appoint;
“securities” has the same meaning as in section 10A;
“unit” and “unit trust” have the same meanings as in section 10B.
[32/95; 31/98]
(15)  The statutory income for any year of assessment of any beneficiary under a trust shall be that share of the statutory income of the trustee for that year of assessment which corresponds to the share of the trust income to which the beneficiary is entitled for the year preceding the year of assessment.
(16)  For the purposes of subsection (15), “statutory income of the trustee” does not include —
(a)
in relation to a trustee of a real estate investment trust within the meaning of section 43(10), any income from any trade or business carried on by the trustee other than income of the kinds referred to in section 43(2A)(a)(i), (ii) and (iii); or
(b)
in relation to a trustee of any other trust, any income from any trade or business carried on by the trustee.
Cessation of source of income commenced before 1st January 1969
35A.
—(1)  This section shall only apply to any trade, business, profession, vocation or employment (except subsidiary employment which had not been treated as a new source on commencement) which commenced before 1st January 1969.
(2)  Subject to subsection (3), where a person permanently ceases to carry on or exercise any trade, business, profession, vocation or employment to which this section applies, his statutory income therefrom shall be —
(a)
as regards the year of assessment in which the cessation occurs — the amount of the income of that year; and
(b)
as regards the year of assessment preceding that in which the cessation occurs — the amount of income as computed in accordance with section 35, or the amount of income of that year, whichever is the greater.
(3)  Subsection (2) shall not apply to a company which ceases to carry on any trade or business on or after 15th October 1969 where such trade or business or part thereof is transferred to or carried on by any person as that person’s trade or business, whether with or without any alteration.
(4)  For the purposes of this section, where a change occurs in a partnership of persons carrying on any trade, business or profession by reason of retirement or death, or the dissolution of the partnership as to one or more of the partners, or the admission of a new partner, every such person who is not a company shall be deemed to cease to carry on that trade, business or profession as from the date the change occurs.
Partnership
36.
—(1)  Where a trade, business, profession or vocation is carried on by 2 or more persons jointly —
(a)
the income of any partner from the partnership for any period shall be deemed to be the share to which he was entitled during that period in the income of the partnership, such income being ascertained in accordance with the provisions of this Act, and shall be included in the return of income to be made by such partner under the provisions of this Act; and
(b)
the statutory income of any partner from the partnership shall be computed in accordance with section 35 by treating his share of the divisible income of the partnership as though it were income of a trade, business, profession or vocation carried on or exercised by him.
(2)  This section shall not be deemed to apply to any trade, business, profession or vocation carried on by a Hindu joint family.
Limited liability partnership
36A.
—(1)  For the purposes of this Act, where a limited liability partnership carries on a trade, business, profession or vocation —
(a)
all the activities of the partnership shall be treated as carried on in partnership by its partners (and not by the partnership as such);
(b)
anything done by, to or in relation to the partnership for the purposes of, or in connection with, any of its activities shall be treated as done by, to or in relation to the partners; and
(c)
the property of the partnership shall be treated as held by the partners as partnership property.
(2)  For the purposes, except as otherwise provided, of this Act —
(a)
references to a partnership include a limited liability partnership in relation to which subsection (1) applies;
(b)
references to partners of a partnership include partners of such a limited liability partnership;
(c)
references to a company do not include such a limited liability partnership; and
(d)
references to shareholders of a company do not include partners of such a limited liability partnership.
(3)  In ascertaining the income of a limited liability partnership for the purpose of section 36(1)(a), section 10E shall apply to income from any business of the making of investments as if the limited liability partnership is a company.
(4)  For any year of assessment, the amount of relevant deductions that may be allowed to or transferred by a partner of a limited liability partnership shall not exceed —
(a)
in the case of a relevant deduction allowed to him under section 35(2), an amount equal to the amount ascertained in accordance with the formula
(b)
in the case of a relevant deduction allowed to him under section 37(3)(a), an amount equal to the amount ascertained in accordance with the formula
(c)
in the case of a transferred deduction transferred by him, an amount equal to the amount ascertained in accordance with the formula
(d)
in the case of a carry-back deduction allowed to or transferred by him, an amount equal to the amount ascertained in accordance with the formula
where A
is his contributed capital in that year of assessment;
B
is the past relevant deductions already allowed to him;
C
is the relevant deduction allowed to him in that year of assessment under section 35(2);
D
is the relevant deduction allowed to him in that year of assessment under section 37(3)(a); and
E
is the transferred deduction transferred by him in that year of assessment.
[Act 34/2005, wef Y/A 2006 & Sub Ys/A:2005-ACT-34]
(5)  If, as a result of any reduction in the contributed capital of a partner of a limited liability partnership in any year of assessment, the past relevant deductions already allowed to him exceeds his contributed capital, the excess shall be deemed to be income of the partner chargeable with tax under section 10(1)(g) for that year of assessment, and an amount equal to the excess shall be deemed to be a loss incurred by him in the trade, business, profession or vocation of the limited liability partnership.
(6)  Subsections (4) and (5) shall not apply in the year of assessment relating to the basis period in which the partner ceases to be a partner of a limited liability partnership or in any subsequent year of assessment.
(7)  For the purposes of any allowances made under section 16, 17, 19, 19A, 19B, 19C, 19D, 20 or 23, where —
(a)
any person is admitted to or withdraws from a limited liability partnership as a partner thereof; and
(b)
one or more persons remain as partners of the limited liability partnership after the admission or withdrawal of that person,
the interest of that person in any property of the limited liability partnership shall be deemed to be —
(i)
where he is admitted to the limited liability partnership as a partner, sold to him by all the remaining partners; or
(ii)
where he withdraws from the limited liability partnership as a partner, sold by him to all the remaining partners.
(8)  The precedent partner of a limited liability partnership shall make and deliver, together with a return of the income of the limited liability partnership under section 71 or when required by the Comptroller by notice in writing, a return of the contributed capital of each partner of the limited liability partnership for any year of assessment.
(9)  For the purposes of this section, the Minister may make regulations to provide generally for giving full effect to or for carrying out the purposes of this section.
(10)  In this section —
“activities of the limited liability partnership” means anything done by the limited liability partnership, whether or not in the course of carrying on a trade, business, profession or vocation;
“carry-back deductions”, in relation to a partner of a limited liability partnership in any year of assessment, means —
(a)
any deduction allowed to the partner of any allowance arising from any trade, business or profession, or any loss incurred in any trade, business, profession or vocation carried on by the limited liability partnership that is made against his assessable income from any other source for the immediate preceding year of assessment under section 37E; or
(b)
any allowance arising from any trade, business or profession, or any loss incurred in any trade, business, profession or vocation carried on by the limited liability partnership that is transferred by him to a spouse under section 37F;
[Act 34/2005, wef Y/A 2006 & Sub Ys/A:2005-ACT-34]
“contributed capital”, in relation to a partner of a limited liability partnership for any year of assessment, means the aggregate of —
(a)
the amount, as at the end of the basis period for the year of assessment to be determined by the Comptroller, which he has contributed (in cash or in kind but not including any loan by him to the limited liability partnership) to the limited liability partnership as capital, and has not, directly or indirectly, drawn out or received back (whether as a distribution or a loan from the limited liability partnership or otherwise); and
(b)
the amount, as at the end of the basis period for the year of assessment to be determined by the Comptroller, of any profits or gains of the trade, business, profession or vocation from any past year of assessment to which he is entitled as a partner but which he has not, directly or indirectly, received (whether as a distribution or a loan from the limited liability partnership or otherwise);
“past relevant deductions”, in relation to a partner of a limited liability partnership in any year of assessment, means the aggregate of any relevant deductions allowed to the partner less any amount deemed under subsection (5) to be income chargeable with tax in any year of assessment before that year of assessment;
“precedent partner” has the same meaning as in section 71;
“relevant deductions”, in relation to a partner of a limited liability partnership, means —
(a)
any deduction allowed to the partner under section 35(2) of any allowance arising from any trade, business or profession carried on by the limited liability partnership;
(b)
any deduction allowed to the partner under section 37(3)(a) of any loss incurred in any trade, business, profession or vocation carried on by the limited liability partnership that is made against his statutory income from any other source;
(c)
any transferred deduction transferred by the partner; or
(d)
any carry-back deduction allowed to or transferred by the partner,
as the case may be;
[Act 34/2005, wef Y/A 2006 & Sub Ys/A:2005-ACT-34]
“transferred deduction”, in relation to a partner of a limited liability partnership, means any allowance arising from any trade, business or profession, or any loss incurred in any trade, business, profession or vocation carried on by the limited liability partnership that is transferred by him to a claimant company under section 37C or to a spouse under section 37D.
Registered business trusts
36B.
—(1)  For the purposes of this Act, except as otherwise provided, references to a company shall be read as including a reference to a registered business trust or, as the context requires, to the trustee-manager of a registered business trust subject to the following modifications:
(a)
sections 23 and 37 shall apply to a registered business trust except that —
(i)
any reference to the shareholders of a company shall be read as a reference to the unitholders of a registered business trust;
(ii)
the unitholders of a registered business trust at any date shall not be deemed to be substantially the same as the unitholders at any other date unless, on both those dates —
(A)
the same unitholders are entitled to not less than 50% of any residual profits of the registered business trust available for distribution; and
(B)
the same unitholders are entitled to not less than 50% of any residual assets of the registered business trust available for distribution on winding up;
(iii)
units in a registered business trust held by or on behalf of a company shall be deemed to be held by the shareholders of the company; and
(iv)
units held by or on behalf of the trustee of the estate of a deceased unitholder or by or on behalf of the person entitled to those units as beneficiaries under the will or any intestacy of a deceased unitholder shall be deemed to be held by that deceased unitholder;
(b)
for the purpose of section 24(1) —
(i)
a body of persons shall be deemed to have control over a registered business trust if —
(A)
the body of persons is a company and it holds more than 50% of the units in the registered business trust; or
(B)
the body of persons is another registered business trust and they hold on trust for their unitholders more than 50% of the units in the first mentioned registered business trust;
(ii)
a registered business trust shall be deemed to have control over a company if —
(A)
the trustee-manager of the registered business trust holds on trust for its unitholders more than 50% of the total number of issued shares of the company; or
(B)
the unitholders of the registered business trust hold more than 50% of the total number of issued shares of the company;
(c)
for the purpose of section 37C —
(i)
a registered business trust shall be deemed to be a Singapore company if —
(A)
the registered business trust is established in Singapore; and
(B)
the trust deed of the registered business trust is executed in Singapore and is governed by Singapore law;
(ii)
any reference to ordinary share or ordinary share capital in a company shall be read as a reference to the units in a registered business trust; and
(iii)
any reference to residual assets or residual profits in a company shall be read as a reference to the residual assets and residual profits of a registered business trust; and
(d)
sections 10I, 10J, 10K and 10M shall not apply to a registered business trust.
(2)  The statutory income of a registered business trust shall be computed in accordance with section 35(11).
(3)  Sections 35(15), 43(2) and 46(1)(b) shall not apply to any registered business trust or unitholders of any registered business trust.
(4)  In this section, “business trust”, “registered business trust”, “trustee-manager”, “unit” and “unitholder” have the same meanings as in the Business Trusts Act (Cap. 31A).