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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 XXA EXCHANGE OF INFORMATION UNDER AVOIDANCE OF DOUBLE TAXATION ARRANGEMENTS AND EXCHANGE OF INFORMATION ARRANGEMENTS

Part XXB INTERNATIONAL AGREEMENTS TO IMPROVE TAX COMPLIANCE

Part XXI MISCELLANEOUS

FIRST SCHEDULE Institution, authority, person or fund exempted

SECOND SCHEDULE Rates of tax

THIRD SCHEDULE Repealed

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

EIGHTH SCHEDULE Information to be included in a request for information under Part XXA

Legislative History

Comparative Table

Comparative Table

 
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PART XIV
RELIEF AGAINST DOUBLE TAXATION
48.  [Repealed by Act 27 of 2009]
Avoidance of double taxation arrangements
49.
—(1)  If the Minister by order declares that arrangements specified in the order have been made with the government of any country outside Singapore with a view to affording relief from double taxation in relation to tax under this Act and any tax of a similar character imposed by the laws of that country, and that it is expedient that those arrangements should have effect, the arrangements shall have effect notwithstanding anything in any written law.
(2)  Any arrangements made with the government of another country —
(a)
may provide for liability to tax by one country and for exemption from tax by the other country;
(b)
may provide for exemption, wholly or partly and with or without conditions, from tax in either or both countries and for any income so exempted to be taken into account in determining the effective rate of tax to be applicable to other income;
(c)
may deem the source of income to be wholly or partly in either or both of such countries; and
(d)
may provide for the charge to tax by the country in which the source is deemed to be situated, of any income derived from such source.
[5/77]
(2A)  In subsection (2)(b), “effective rate of tax” means the rate of tax as ascertained in accordance with the formula
where A
is the tax payable before allowance of credit under any arrangements having effect under this section on B + C computed in accordance with the provisions of this Act;
B
is the exempt income; and
C
is the other income.
[5/77]
(3)  [Deleted by Act 27 of 2009]
(4)  Any order made under this section may be revoked by a subsequent order.
(5)  Where any arrangements have effect by virtue of this section, the obligation as to secrecy imposed by section 6 shall not prevent the disclosure to any authorised officer of the government with which the arrangements are made of such information as is required to be disclosed under the arrangements.
(6)  The Minister may make rules for carrying out the provisions of any arrangements having effect under this section.
Tax credits
50.
—(1)  This section shall have effect where, under arrangements having effect under section 49, tax payable in respect of any income in the territory with the government of which the arrangements are made is to be allowed as a credit against tax payable in respect of that income in Singapore.
(2)  The amount of the income tax chargeable in respect of the income shall be reduced by the amount of the credit; except that credit shall not be allowed against income tax for any year of assessment unless the person entitled to the income is resident in Singapore during that year.
(3)  The credit shall not exceed the amount which would be produced by computing the amount of the income in accordance with the provisions of this Act and then charging it to income tax at a rate ascertained by dividing the income tax chargeable (before allowance of credit under any arrangements having effect under section 49) on the assessable income of the person entitled to the income by the amount of his assessable income.
[7/79; 31/86; 26/93; 28/96; 34/2005]
(4)  Without prejudice to subsection (3), the total credit to be allowed to a person for any year of assessment for foreign tax under all arrangements having effect under section 49 shall not exceed the total income tax payable by him for that year of assessment, excluding any tax payable by him under section 45.
(5)  In computing the amount of the income —
(a)
no deduction shall be allowed in respect of foreign tax (whether in respect of the same or any other income);
(b)
where the income tax chargeable depends on the amount received in Singapore, that amount shall be increased by the appropriate amount of the foreign tax in respect of the income; and
(c)
where the income includes a dividend and under the arrangements foreign tax not chargeable directly or by deduction in respect of the dividend is to be taken into account in considering whether any, and if so what, credit is to be given against income tax in respect of the dividend, the amount of the income shall be increased by the amount of the foreign tax not so chargeable which falls to be taken into account in computing the amount of the credit.
[53/2007]
(6)  Subsection (5)(a) and (b) shall apply to the computation of assessable income for the purposes of determining the rate mentioned in subsection (3), and shall apply thereto in relation to all income in the case of which credit falls to be given for foreign tax under arrangements for the time being in force under section 49.
(7)  Where —
(a)
the arrangements provide, in relation to dividends of some classes, but not in relation to dividends of other classes, that foreign tax not chargeable directly or by deduction in respect of dividends is to be taken into account in considering whether any, and if so what, credit is to be given against income tax in respect of the dividends; and
(b)
a dividend is paid which is not of a class in relation to which the arrangements so provide,
then, if the dividend is paid to a company which controls, directly or indirectly, not less than one-half of the voting power in the company paying the dividend, credit shall be allowed as if the dividend were a dividend of a class in relation to which the arrangements so provide.
(8)  Credit shall not be allowed under the arrangements against income tax chargeable in respect of the income of any person for any year of assessment if he elects that credit shall not be allowed in the case of his income for that year.
(9)  Any claim for an allowance by way of credit shall be made not later than 2 years after the end of the year of assessment, and in the event of any dispute as to the amount allowable the claim shall be subject to objection and appeal in like manner as an assessment.
(10)  Where the amount of any credit given under the arrangements is rendered excessive or insufficient by reason of any adjustment of the amount of any tax payable either in Singapore or elsewhere, nothing in this Act limiting the time for the making of assessments or claims for relief shall apply to any assessment or claim to which the adjustment gives rise, being an assessment or claim made not later than 2 years from the time when all such assessments, adjustments and other determinations have been made, whether in Singapore or elsewhere, as are material in determining whether any, and if so what, credit falls to be given.
(11)  Nothing in this section shall authorise the reduction of any tax payable on income accruing in or derived from Singapore by virtue of the allowance of any credit under this section.
[5/77]
(12)  In this section —
“foreign tax” means any tax payable in that territory which under the arrangements is to be so allowed;
“income tax” means tax chargeable under this Act.
Unilateral tax credits
50A.
—(1)  Notwithstanding that there are no arrangements for the time being in force under section 49 with the government of any territory outside Singapore, tax credit under section 50 shall, subject to this section, be given to any person resident in Singapore for tax payable under the law of that territory in respect of —
(a)
any income derived from any professional, consultancy and other services rendered in that territory;
(b)
any royalty derived from that territory, where the payment is not —
(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
(ii)
deductible against any income accruing in or derived from Singapore;
(c)
any dividend derived therefrom;
(d)
any income from employment therein;
(e)
any profit derived from outside Singapore by a branch in that territory of a company resident in Singapore;
(f)
any income derived from any trade or business carried on in that territory through a permanent establishment in that territory;
(g)
any discount or premium from debt securities or interest derived from that territory where the payment is not —
(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
(ii)
deductible against any income accruing in or derived from Singapore;
(h)
any rent or other income ancillary to the holding of immovable properties located in that territory but not including gains from the disposal of such immovable properties derived from a trade or business carried on in Singapore; and
(i)
any gains or profits of an income nature not falling within any of the preceding paragraphs that is derived from that territory.
[26/93; 37/2002; 21/2003; 34/2008]
(2)  Where any dividend in respect of which tax credit is given under subsection (1)(c) is paid by a company which is resident outside Singapore to a person resident in Singapore who owns not less than 25% of the total number of issued shares of the company paying the dividend, the tax credit shall take into account any tax paid by that company in the country in which it is resident in respect of its income out of which the dividend is paid.
[34/2005]
(3)  Where under arrangements for the time being in force under section 49 with the government of any territory outside Singapore no provision is made for tax credit in respect of income out of which any dividend is paid by a company resident in that territory, tax credit under section 50 in respect of such income shall be given to any person resident in Singapore who owns not less than 25% of the total number of issued shares of the company paying the dividend.
[34/2005]
(4)  Section 50 shall, with the necessary modifications, apply for the purposes of this section as if any territory to which this section and the regulations have effect were a territory with which arrangements have been made under section 49.
[21/2003]
(5)  Any person granted any tax credit under subsection (1) on any income shall not be given any tax credit under section 50 in respect of that income.
[21/2003; 27/2009]
(6)  The Minister may, in any particular case, waive the requirement of 25% share ownership referred to in subsections (2) and (3).
[32/95]
(7)  In this section, “debt securities” has the same meaning as in section 43N(4).
[34/2008]
Tax credits for trust income to which beneficiary is entitled
50B.
—(1)  Where —
(a)
a trustee of a trust receives income in Singapore from outside Singapore (referred to in this section as the income) for which a tax credit is allowable under this Part against the tax payable in respect of the income; and
(b)
any beneficiary of the trust who is resident in Singapore is entitled to a share of the income,
the tax credit in respect of that share shall be given to the beneficiary instead of the trustee.
[7/2007]
(2)  The tax credit to be given to a beneficiary under subsection (1) shall be computed in accordance with section 50 or 50A (as the case may be) as if the income had been received directly by the beneficiary rather than the trustee.
[7/2007]
(3)  This section shall 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);
[Act 37 of 2014 wef 01/09/2014]
(c)
[Deleted by Act 37 of 2014 wef 01/09/2014]
(d)
any income of a trust fund prescribed under section 13C;
(e)
any income of a foreign trust specified under section 13G;
(f)
any income of a locally administered trust prescribed under section 13Q;
(g)
any income of a trust the trustee of which is a prescribed person under section 13CA; or
(h)
any income of an approved trust fund referred to in the definition of “approved person” under section 13X(5), or of a trust fund that is a feeder fund or master fund approved under section 13X.
[7/2007; 22/2011]
Pooling of credits
50C.
—(1)  Where, for the year of assessment 2012 or a subsequent year of assessment, a person is entitled to 2 or more tax credits under any other provision of this Part, he may elect to be given a pooled credit for that year of assessment in lieu of any 2 or more of those credits (referred to in this section as the replaced credits).
[22/2011]
(2)  Subsection (1) only applies if the income that is the subject of each replaced credit (referred to in this section as the elected income) satisfies all of the following conditions:
(a)
tax under the law of the territory from which the income is derived that is of a similar character to income tax (by whatever name called) has been paid on the income;
(b)
at the time the income is received in Singapore by the person, the highest rate of tax of a similar character to income tax (by whatever name called) levied under the law of that territory on any gains or profits from any trade or business carried on by a company in that territory at that time, is not less than 15%; and
(c)
the income tax payable under this Act on the income for the year of assessment (before allowance of any credit under this Part) is not nil.
[22/2011]
(3)  The total amount of the income tax chargeable to the person in respect of all the elected income shall be reduced by the amount of the pooled credit.
[22/2011]
(4)  The amount of the pooled credit is the lower of —
(a)
the aggregate of the income tax chargeable for the year of assessment on all the elected income; and
(b)
the aggregate of the taxes paid on all the elected income in the territory or territories outside Singapore from which the elected income is derived.
[22/2011]
(5)  In subsection (4)(a), the aggregate of the income tax chargeable for the year of assessment on all the elected income is ascertained by —
(a)
computing the amount of the income that is the subject of each replaced credit in accordance with the provisions of this Act, and then charging it to income tax at a rate ascertained by dividing the income tax chargeable (before allowance of any credit under this Part) on the assessable income of the person by the amount of his assessable income; and
(b)
aggregating the amounts computed in accordance with paragraph (a) of all the replaced credits.
[22/2011]
(6)  Sections 50(5), (6) and (9) to (12), 50A(2) and 50B(2) shall, with the necessary modifications, apply for the purposes of this section.
[22/2011]
(7)  For the avoidance of doubt, sections 50, 50A and 50B (as applicable) shall continue to apply to any income that is the subject of a credit allowed under any other provision of this Part for which no election under this section is made.
[22/2011]