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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THIRD SCHEDULE Repealed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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On 26/09/2017, you requested the version in force on 26/09/2017 incorporating all amendments published on or before 26/09/2017. The closest version currently available is that of 02/07/2017.
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PART III
IMPOSITION OF INCOME TAX
Charge of income tax
10.
—(1)  Income tax shall, subject to the provisions of this Act, be 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 65]
(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 satisfaction of the Comptroller 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 shall be 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 shall be disregarded;
(iii)
where the premises are shared, “place of residence” means the part of the premises occupied by the person chargeable;
(ca)
for the year of assessment 2015 and subsequent years of assessment, 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;
(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.
[26/73; 26/93; 28/96; 49/2004; 19/2013]
(2A)  For the purposes of subsection (2)(ca), 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 (Cap. 254), the annual value shall be ascertained in accordance with the definition of that term in section 2 of that Act.
[Act 37 of 2014 wef 27/11/2014]
(2B)  For the purposes of subsection (2), the Minister may, for the purposes of such year of assessment as he may specify, by regulations prescribe the value of any furniture and fittings in any place of residence.
[Act 37 of 2014 wef 27/11/2014]
(3)  Any sum realised under any insurance against loss of profits shall 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 shall be 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 13S 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 13S;
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 the income derived from the operation of which is exempt from tax under section 13A or 13F, or the income derived from the chartering or finance leasing of which is exempt from tax under section 13S, 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 against any income exempt from tax under section 13A, 13F or 13S, 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.
[2/92; 32/95; 31/98; 7/2007]
(5)  In subsection (4) —
“foreign ship” has the meaning given to it in section 13F(6);
“Singapore ship” has the meaning given to it in section 13A(16).
[Act 2 of 2016 wef 11/04/2016]
(5A)  In subsection (4), “finance leasing” has the same meaning as in section 13S(20).
[7/2007]
[Act 2 of 2016 wef 11/04/2016]
(6)  Any gains or profits, directly or indirectly, derived by any person from a right or benefit granted on or after 1st January 2003, whether granted in his name or in the name of his nominee or agent, to acquire shares in any company shall, where the right or benefit is obtained by that person by reason of any office or employment held by him, be 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 shall be the price of the shares in the open market at that time, less any amount paid for the shares;
(b)
notwithstanding 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 shall be 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)
notwithstanding paragraphs (a) and (c), any gains or profits derived by him by any exercise of a right or benefit to acquire shares in any company listed on the Singapore Exchange shall be computed in accordance with the following 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 him; 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 him; and
B
is the amount paid for such shares;
(e)
[Deleted by Act 27 of 2009]
(f)
“shares” includes stocks.
[37/2002; 27/2009]
(6A)  For the avoidance of doubt, section 10(5) in force immediately before 10th December 2002 shall continue 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 1st January 2003, whether in his name or in the name of his nominee or agent, where the right or benefit was obtained by that person by reason of any office or employment held by him.
[7/2007]
(7)  Notwithstanding subsection (6), where —
(a)
the right or benefit to acquire shares in a company is granted on or after 1st January 2003 to an individual while he is exercising an employment in Singapore; and
(b)
immediately before he 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 the restriction on the sale of the shares has not ceased to apply,
any gains or profits from the right or benefit shall be —
(A)
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
(B)
computed based on the price of the shares in the open market on that date, less the amount paid for the shares.
[37/2002]
(7A)  The Comptroller may, if he thinks fit and subject to such condition as he may impose, accept from the employer of an individual to whom subsection (7) applies an undertaking —
(a)
to make a return, in such form and by such time as the Comptroller may determine, of any gains or profits derived by the individual from the right or benefit to acquire shares in a company as computed under subsection (6);
(b)
to pay to the Comptroller any tax assessed on such gains or profits; and
(c)
to pay the penalties specified in the undertaking for any failure to comply with paragraph (a) or (b).
[49/2004]
(7B)  Where the Comptroller accepts an undertaking from the employer of an individual under subsection (7A), subsection (7) shall not apply to the individual and he shall be assessed in accordance with subsection (6).
[49/2004]
(7C)  If any condition imposed by the Comptroller under subsection (7A) has not been complied with by the employer of an individual, then notwithstanding the undertaking given by the employer, the gains or profits derived by the individual from the right or benefit to acquire shares in a company shall be assessed in accordance with subsection (7) and shall be deemed to be income accruing to the individual in the year in which the condition is not complied with.
[49/2004]
(8)  Subsection (6)(c) shall apply, with the necessary modifications, to gains or profits derived by an individual referred to in subsection (7).
[37/2002]
(8A)  For the purpose of subsection (1)(d) —
(a)
any discount on any debt security shall be deemed to accrue when the debt security is redeemed;
(b)
subject to any exemption from tax provided under this Act, the discount shall be deemed to be income chargeable to tax of the holder of the debt security immediately before such redemption; and
(c)
the discount on any debt security shall be deemed to be an amount equal to the difference between —
(i)
the amount payable to the holder of the debt security upon the maturity or any earlier redemption of the debt security; and
(ii)
the amount paid by the first holder of the debt security for the issue of the debt security.
[53/2007]
(8B)  In subsection (8A), “debt security” has the same meaning as in section 43N(4).
[53/2007]
(9)  For the purposes of subsection (1)(e), the income derived from an annuity for any year shall be deemed to be an amount equal to 3% of the total consideration payable or paid for the purchase of the annuity except that the whole amount of the annuity shall be deemed to be income if —
(a)
the person deriving income from the annuity has previously received sums equal to the total consideration for the annuity exclusive of the amounts deemed to be income under this subsection; or
(b)
the annuity is purchased by the employer of the person deriving on or after 1st January 1993 such income in lieu of any pension or other benefit payable during his employment or upon his retirement.
[4/75; 26/93]
(10)  Subsection (9) shall not apply to any annuity purchased under the SRS.
[24/2001]
(11)  [Deleted by Act 27 of 2009]
(12)  Where a person derives interest from a negotiable certificate of deposit or derives gains or profits from the sale thereof, his income shall be treated as follows:
(a)
in the case of a financial institution, the interest and the gains or profits shall be deemed to be income from a trade or business under subsection (1)(a);
(b)
in any other case, the interest and the gains or profits shall be deemed to be income from interest under subsection (1)(d) subject to the following provisions:
(i)
if the interest is received by a subsequent holder of a certificate of deposit, the income derived from such interest shall exclude the amount by which the purchase price exceeds the issued price of the certificate, except where that amount has been excluded in the computation of any previous interest derived by him in respect of that certificate; and
(ii)
where a subsequent holder sells a certificate after receiving interest therefrom, the gains or profits shall be deemed to be the amount by which the sale price exceeds the issued price or the purchase price, whichever is the lower; and
(c)
for the purposes of paragraph (b), where a subsequent holder purchases a certificate at a price which is less than the issued price and holds the certificate until its maturity, the amount by which the issued price exceeds the purchase price shall be deemed to be interest derived by him.
[4/75]
(13)  Any maintenance payment received by —
(a)
a child under a maintenance order or a deed of separation; or
(b)
a parent under a maintenance order made under the Maintenance of Parents Act (Cap. 167B),
shall not be deemed to be income for the purposes of subsection (1).
[28/96]
(14)  For the purposes of subsection (1)(a) and (f), the income derived by any author, composer or choreographer, or any company in which he beneficially owns all the issued shares, from any royalties or other payments received as consideration for the assignment of or for the right to use the copyright in any literary, dramatic, musical or artistic work, shall be deemed to be —
(a)
the amount of the royalties or other payments remaining after the deductions allowable under Parts V and VI have been made; or
(b)
an amount equal to 10% of the gross amount of the royalties or other payments,
whichever is less.
[24/2000; 34/2005; 7/2007]
(15)  Subsection (14) shall not apply to royalties or payments received in respect of any work published in any newspaper or periodical.
[1/88]
(16)  For the purposes of subsection (1)(a) and (f), the income derived by an individual who is the inventor, author, proprietor, designer or creator (as the case may be) of an approved intellectual property or approved innovation, or by any company in which he beneficially owns all the issued shares, from any royalties or other payments received as consideration for the assignment of or the rights in the approved intellectual property or approved innovation shall be deemed to be —
(a)
the amount of the royalties or other payments remaining after the deductions allowable under Parts V and VI have been made; or
(b)
an amount equal to 10% of the gross amount of the royalties or other payments,
whichever is less.
[7/2007]
(16A)  Subsection (16) does not apply to any income referred to in that subsection that is derived in the basis period for the year of assessment 2017 or any subsequent year of assessment.
[Act 2 of 2016 wef 11/04/2016]
(17)  Notwithstanding subsection (16), where it appears to the Comptroller that any amount of income which has been determined under that subsection for the purposes of subsection (1)(a) or (f) ought not to have been so determined for any year of assessment, the Comptroller may, within 6 years (if that year of assessment is 2007 or a preceding year of assessment) or 4 years (if that year of assessment is 2008 or a subsequent year of assessment) after the end of that year of assessment, make such assessment or additional assessment upon the individual as may be necessary in order to make good any loss of tax.
[11/94; 53/2007]
(18)  In subsection (16) —
“approved” means approved for such period not exceeding 5 years by the Minister or such person as he may appoint;
“innovation” means —
(a)
any new product or new service, or any new method used in the manufacture or processing of goods or materials or in the provision of services; or
(b)
any substantial improvement in any product or in the provision of any service, or in any method used in the manufacture or processing of goods or materials or in the provision of services,
which involves novelty or originality;
“rights in the approved intellectual property or approved innovation” means the rights relating to any patent, copyright, trade mark, industrial design, layout-design of integrated circuit, or know-how of an approved intellectual property or approved innovation, where a substantial part of the work in producing the approved intellectual property or approved innovation is undertaken in Singapore.
[24/2000; 7/2007]
(19)  Any distribution made by a unit trust approved under section 10B out of gains or profits derived on or after 1st July 1989 from the disposal of securities and which have not been subject to tax shall be deemed to be income if received by a unit holder except where the unit holder is —
(a)
an individual resident in Singapore; or
(b)
a person who is not resident in Singapore and has no permanent establishment in Singapore.
[23/90]
(20)  Subject to subsection (20G), any distribution made by a designated unit trust for any year of assessment to any unit holder out of —
(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,
which do not form part of the statutory income of the designated unit trust by virtue of section 35(12) shall, subject to subsection (21), be deemed to be income of the unit holder if he is not a foreign investor.
[32/95; 31/98; 24/2000]
[Act 37 of 2014 wef 01/09/2014]
[Act 2 of 2016 wef 01/06/2015]
(20A)  Subject to subsection (20G), any distribution made by a designated unit trust for any year of assessment to any unit holder out of —
(a)
gains or profits derived on or after 27th February 2004 from —
(i)
foreign exchange transactions;
(ii)
transactions in futures contracts;
(iii)
transactions in interest rate or currency forwards, swaps or option contracts; and
(iv)
transactions in forwards, swaps or option contracts relating to any securities or financial index;
(b)
distributions from foreign unit trusts derived from outside Singapore and received in Singapore on or after 27th February 2004;
(c)
fees and compensatory payments (other than fees and compensatory payments for which tax has been deducted under section 45A) derived on or after 27th February 2004 from securities lending or repurchase arrangements with —
(i)
a person who is neither a resident of nor a permanent establishment in Singapore;
(ii)
the Monetary Authority of Singapore;
(iii)
a bank licensed under the Banking Act (Cap. 19);
(iv)
a merchant bank approved as a financial institution under section 28 of the Monetary Authority of Singapore Act (Cap. 186);
(v)
a finance company licensed under the Finance Companies Act (Cap. 108);
(vi)
a holder of a capital markets services licence licensed to carry on business in the following regulated activities under the Securities and Futures Act (Cap. 289) or a company exempted under that Act from holding such a licence:
(A)
dealing in securities (other than any person licensed under the Financial Advisers Act (Cap. 110));
(B)
fund management;
(C)
securities financing; or
(D)
providing custodial services for securities;
(vii)
a collective investment scheme or closed-end fund as defined in the Securities and Futures Act that is constituted as a corporation;
(viii)
the Central Depository (Pte) Limited;
(ix)
an insurer licensed or regulated under the Insurance Act (Cap. 142) or exempted under that Act from being licensed or regulated; or
(x)
a trust company licensed under the Trust Companies Act (Cap. 336);
(d)
rents and any other income derived from any immovable property situated outside Singapore and received in Singapore on or after 27th February 2004;
(e)
discount derived from outside Singapore and received in Singapore on or after 27th February 2004;
(f)
discount from —
(i)
qualifying debt securities issued during the period from 27th February 2004 to 16th February 2006 (both dates inclusive) which mature within one year from the date of issue of those securities; or
[Act 37 of 2014 wef 27/11/2014]
(ii)
qualifying debt securities issued during the period from 17th February 2006 to 31st December 2018 (both dates inclusive);
[Act 37 of 2014 wef 27/11/2014]
(g)
gains or profits derived on or after 27th February 2004 from the disposal of debentures, stocks, shares, bonds or notes issued by supranational bodies;
(h)
prepayment fee, redemption premium and break cost from qualifying debt securities issued during the period from 15th February 2007 to 31st December 2018 (both dates inclusive); and
[Act 37 of 2014 wef 27/11/2014]
(i)
such other income directly attributable to qualifying debt securities issued on or after a prescribed date, as may be prescribed by regulations,
which do not form part of the statutory income of the designated unit trust by virtue of section 35(12A) shall be deemed to be income of the unit holder if he is not a foreign investor.
[49/2004; 11/2005; 7/2007; 53/2007; 34/2008; 11/2013; 19/2013]
[Act 37 of 2014 wef 01/09/2014]
[Act 2 of 2016 wef 01/06/2015]
(20B)  If —
(a)
the income of the trustee of a unit trust, unit trust scheme or exchange traded fund interest scheme (referred to in this section as the unit trust) did not form part of his statutory income for one or more past years of assessment by reason of section 35(12); and
(b)
any of the events set out in the first column of the following table occurs,
then a person to whom this subsection applies shall be treated as having derived, on the date in the second column of the table opposite to that event (referred to in this subsection and subsections (20C), (20E), (20G) and (20H) as the corresponding date), an amount of income that is equal to the prescribed amount of any income referred to in paragraph (a) that has yet to be distributed to any unit holder by the corresponding date:
First column
 
Second column
Event
 
Corresponding date
1.
The unit trust is dissolved, and is a designated unit trust for the year of assessment for the basis period in which the dissolution occurred
 
Date of dissolution
2.
The unit trust is not a designated unit trust within the meaning of section 35 for any year of assessment
 
Last day of the basis period for the immediately preceding year of assessment
3.
The trustee fails to elect under section 35(12B) for section 35(12) to apply to his income for any year of assessment
 
Last day of the basis period for the immediately preceding year of assessment
4.
The trustee elects under section 35(12B) for section 35(12) to apply to his income derived in only a part of the basis period for any year of assessment
 
Last day of that part of the basis period
[Act 37 of 2014 wef 01/06/2015]
[Act 2 of 2016 wef 01/06/2015]
(20C)  Subsection (20B) shall not apply if the corresponding date is before 1st June 2015.
[Act 37 of 2014 wef 01/06/2015]
(20D)  Subsection (20B) applies to the following persons:
(a)
a unit holder who is not an individual and not a foreign investor;
(b)
a unit holder who is an individual and not a foreign investor, and who holds the units for the purposes of a trade, profession or business;
(c)
a partner who is not an individual and not a foreign investor, of a partnership which is a unit holder;
(d)
a partner who is an individual and not a foreign investor, of a partnership in Singapore which is a unit holder.
[Act 37 of 2014 wef 01/06/2015]
(20E)  For the purposes of subsection (20B) —
(a)
the income referred to in paragraph (a) of that subsection includes the income of the trustee that did not form part of his statutory income for one or more years of assessment by reason of section 35(12) or (12A) in force immediately before 1st September 2014;
(b)
the prescribed amount of the income referred to in paragraph (a) of that subsection which is treated as the income of a person referred to in subsection (20D)(a) or (b), is —
(i)
the amount of that income that would have been distributed to him in accordance with the terms of the trust deed of the unit trust, had the income been distributed to unit holders on the corresponding date; or
(ii)
if it is not possible to ascertain that amount under the terms of the trust deed, such part of that income as the total number of units held by the person bears to the total number of units of the unit trust as of the corresponding date;
(c)
the prescribed amount of the income referred to in paragraph (a) of that subsection which is treated as the income of a person referred to in subsection (20D)(c) or (d), is the share of the following amount that the person would have been entitled to as a partner of the partnership:
(i)
the amount of that income that would have been distributed in accordance with the terms of the trust deed of the unit trust to the partnership, had the income been distributed to unit holders on the corresponding date; or
(ii)
if it is not possible to ascertain that amount under the terms of the trust deed, such part of that income as the total number of units held by the partnership bears to the total number of units of the trust as of the corresponding date; and
(d)
where the person referred to in subsection (20D) is an individual resident in Singapore, the prescribed amount of the income referred to in subsection (20B)(a) shall not include the amount of any gains or profits referred to in subsection (20)(a).
[Act 37 of 2014 wef 01/06/2015]
(20F)  The trustee of the unit trust to which subsection (20B) applies shall, within such reasonable time after the occurrence of the event mentioned in that subsection as the Comptroller may specify and in such form and manner as the Comptroller may specify, give notice of the occurrence to —
(a)
the Comptroller; and
(b)
every person referred to in subsection (20D).
[Act 37 of 2014 wef 01/06/2015]
(20G)  Where subsection (20B) has applied in relation to a unit trust —
(a)
the amount of the income referred to in subsection (20B)(a) that has yet to be distributed to the unit holders of the unit trust by the corresponding date in question is treated, for the purposes of any subsequent application of subsection (20B) in relation to that unit trust, as having been distributed by the unit trust to its unit holders immediately after that corresponding date; and
(b)
subsections (20) and (20A) do not apply to any subsequent distribution by the unit trust to its unit holders of any income referred to in paragraph (a).
[Act 2 of 2016 wef 01/06/2015]
(20H)  Where —
(a)
by reason of the application of subsection (20B) in relation to a unit trust, a person is treated as having derived on the corresponding date in question an amount of income that is equal to the prescribed amount of income referred to in subsection (20B)(a); and
(b)
at any time after that corresponding date, the person disposes of units in the unit trust,
then the amount of any gains or profits derived from that disposal that is chargeable with tax under subsection (1)(a) is to be reduced by the amount of the income referred to in subsection (20E)(b)(i) or (ii) or (c)(i) or (ii) (whichever is applicable), that corresponds to the units disposed of.
[Act 2 of 2016 wef 01/06/2015]
(21)  Where any distribution made out of gains or profits referred to in subsection (20)(a) is made to a unit holder who is an individual resident in Singapore, the distribution, if made on or after 28th February 1998, shall not be deemed to be income of that unit holder.
[32/95; 31/98]
(22)  Where a designated unit trust had also been approved under section 10B, any distribution made by the designated unit trust out of any income (including gains or profits from the disposal of securities) derived by it during the period the designated unit trust was approved under section 10B shall be treated as income of a unit holder in accordance with subsection (19) and section 35(11) and (15).
[32/95]
(23)  In subsections (20), (20A), (20B), (20D), (21) and (22) —
[Deleted by Act 37 of 2014 wef 01/09/2014]
“break cost”, “prepayment fee” and “redemption premium” have the same meanings as in section 13(16);
“compensatory payment” has the same meaning as in section 10N(12);
“designated unit trust”, in relation to any year of assessment, has the same meaning as in section 35(14);
[Act 37 of 2014 wef 01/09/2014]
“financial index” includes any currency, interest rate, share, stock or bond index;
“foreign investor”  —
(a)
in relation to an individual, means an individual who is not resident in Singapore;
(b)
in relation to a company, means a company which is neither resident in Singapore nor carrying on business through a permanent establishment in Singapore, and not less than 80% of the total number of the issued shares of which are beneficially owned, directly or indirectly, by persons who are not citizens of Singapore and not resident in Singapore; and
[Act 37 of 2014 wef 30/05/2014]
(c)
in relation to a trust fund, means a trust fund where at least 80% of the value of the fund is beneficially held, directly or indirectly, by foreign investors referred to in paragraph (a) or (b) and, unless waived by the Minister or such person as he may appoint, where —
(i)
the fund is created outside Singapore; and
(ii)
the trustees of the fund are neither citizens of Singapore nor resident in Singapore, nor do they carry out duties as such trustees through a permanent establishment in Singapore;
[Act 37 of 2014 wef 30/05/2014]
“qualifying debt securities” has the same meaning as in section 13(16);
“securities” has the same meaning as in section 10A;
“securities lending or repurchase arrangement” has the same meaning as in section 10N(12).
[32/95; 31/98; 49/2004; 34/2005; 53/2007]
[Act 37 of 2014 wef 01/06/2015]
(24)  For the purposes of subsection (2)(d), the sum standing to the account of any individual in any pension or provident fund or society, other than a pension or provident fund to which section 10C applies, shall be deemed to accrue to the individual on the date he is entitled to the sum upon retirement or on the date he withdraws any sum before his retirement, as the case may be, except that where upon his retirement an individual is entitled to elect under the rules or constitution of the pension or provident fund or society as to the manner and amount of the sum to be withdrawn, only the amount so withdrawn shall be deemed to be income of the individual accruing on the date of withdrawal.
[26/93]
(25)  It is hereby declared for the avoidance of doubt that the amounts described in the following paragraphs shall be income received in Singapore from outside Singapore whether or not the source from which the income is derived has ceased:
(a)
any amount from any income derived from outside Singapore which is remitted to, transmitted or brought into, Singapore;
(b)
any amount from any income derived from outside Singapore which is applied in or towards satisfaction of any debt incurred in respect of a trade or business carried on in Singapore; and
(c)
any amount from any income derived from outside Singapore which is applied to purchase any movable property which is brought into Singapore.
[32/95]
(26)  Any payment accrued to a self-employed individual under section 9 or 12B of the Child Development Co-Savings Act (Cap. 38A) shall be deemed to be income from his trade, business, profession or vocation chargeable to tax under subsection (1)(a).
[24/2001; 13/2011; 22/2011]
(27)  Where any income is derived by a special purpose vehicle under any approved Islamic debt securities arrangement entered into on or after 17th February 2006, the income shall be deemed to have been derived at the end of the arrangement by the originator of the arrangement.
[53/2007]
(28)  In subsection (27) —
“approved” means approved by the Minister or such person as he may appoint, subject to such conditions as the Minister or person may impose;
“Islamic debt securities” has the same meaning as in section 43N(4);
“Islamic debt securities arrangement” means an arrangement under which —
(a)
immovable properties in Singapore are acquired by a special purpose vehicle from a person (referred to in this subsection and subsection (27) as the originator) where the acquisition is funded through the issuance of Islamic debt securities by the special purpose vehicle;
(b)
the immovable properties are leased by the special purpose vehicle to the originator; and
(c)
the immovable properties are reacquired by the originator upon the maturity of the Islamic debt securities;
“special purpose vehicle” means a company whose only business is to acquire the originator’s immovable properties in Singapore, lease them back to the originator and transfer such properties to the originator upon the maturity of the Islamic debt securities.
[53/2007]
Profits of investment company
10A.
—(1)  Notwithstanding any other provisions of this Act, the Minister may by regulations —
(a)
provide that tax on gains or profits derived from the disposal of securities (other than transferred securities to which section 10N applies) by an approved investment company shall be levied and paid for each year of assessment upon such amount as may be determined by reference to the period during which those securities have been held;
(b)
provide for the deduction of such amount of allowances under section 19, 19A, 20, 21 or 23 to be granted in such manner as may be prescribed;
(c)
provide for the deduction of such amount of losses arising from the disposal of securities (other than transferred securities to which section 10N applies) as may be determined by reference to the period during which those securities have been held;
(d)
provide for the deduction of such amounts of expenses and donations allowable under this Act in such manner as may be prescribed.
[3/89; 37/2002]
(1A)  No investment company may be approved under this section as an approved investment company after 31 December 2016.
[Act 34 of 2016 wef 29/12/2016]
(2)  In this section —
“approved” means approved by the Minister or such person as he may appoint;
“investment company” means any company whose business consists wholly or mainly in the making of investments and the principal part of whose income is derived therefrom;
“securities” means —
(a)
debentures, stocks, shares, bonds or notes issued by a government or company;
(b)
any right or option in respect of any such debentures, stocks, shares, bonds or notes; or
(c)
units in any unit trust within the meaning of section 10B.
[23/90; 32/95]
Profits of unit trusts
10B.
—(1)  Notwithstanding any other provisions of this Act, the Minister may by regulations —
(a)
provide that tax on gains or profits derived on or after 1st July 1989 from the disposal of securities by an approved unit trust shall 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).
[23/90]
(2)  In this section —
“approved” means approved by the Minister or such person as he may appoint;
“securities” has the same meaning as in section 10A;
“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.
[23/90]
Excess provident fund contributions, etc., deemed to be income
10C.
—(1)  Notwithstanding 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 (Cap. 36) —
(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,
shall be deemed to be income accruing to the employee for the year in which the wages are paid.
[23/90; 49/2004; 34/2005; 7/2007]
(2)  Notwithstanding 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 shall not be deemed to be income accruing to the employee.
[11/94]
(3)  Subsection (2) shall not apply to contributions made by an employer in any year from 1st 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.
[1/98; 30/2007]
(4)  Notwithstanding subsection (1)(a) but subject to subsection (6), where a contribution is made by an employer in any year before 2013 to the medisave account of his employee maintained under the Central Provident Fund Act, the contribution up to the maximum amount referred to in subsection (5) shall not be deemed to be income accruing to the employee.
[22/2011; 19/2013]
(5)  The maximum amount is $1,500 less —
(a)
any previous contribution made by the same or another employer to that medisave account in that year where the contribution is not deemed to be income under subsection (4); and
(b)
any previous contribution made to that medisave account in that year that is exempt from tax under section 13(1)(jc).
[22/2011]
(5A)  Notwithstanding 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 his employee maintained under the Central Provident Fund Act, the contribution up to the maximum amount referred to in subsection (5B) shall not be deemed to be income accruing to the employee.
[19/2013]
(5B)  The maximum amount is $1,500 in any year less any previous contribution made to that medisave account in that year by that employer in his capacity as a person of a prescribed description referred to in section 13(1)(jd) (if applicable) that is exempt from tax under that provision.
[19/2013]
(6)  Subsections (4) and (5A) shall not apply to contributions made by an employer in any year from 1st 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.
[1/98; 30/2007; 19/2013]
(7)  [Deleted by Act 7 of 2007]
(8)  Where in any year contributions under section 7 of the Central Provident Fund Act 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) shall apply as if all the ordinary and additional wages from those related employers and the contributions on those wages were paid by one employer.
[7/2007]
(9)  For the purposes of subsection (8), one employer shall be 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) shall 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 shall be deemed to be income accruing to the employee for the year in which the contributions are paid.
[26/93]
(12)  In this section —
“additional wages” has the same meaning as in the Central Provident Fund Act;
“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 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;
“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 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 paid to the employee in every month in that year as exceeds $4,500 (being a month before September 2011), $5,000 (being the month of September 2011 or any subsequent month before January 2016) or $6,000 (being the month of January 2016 or any subsequent month); or
[Act 2 of 2016 wef 11/04/2016]
(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),
[Act 2 of 2016 wef 11/04/2016]
whichever is less;
“relevant employer” means any company incorporated or registered under the Companies Act (Cap. 50) or any person registered under the Business Names Registration Act 2014;
[Act 29 of 2014 wef 03/01/2016]
“specified amount” means —
(a)
[Deleted by Act 2 of 2016 wef 11/04/2016]
(b)
in relation to the year 2006, 2007, 2008, 2009 or 2010, the difference between $76,500 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 shall be disregarded;
(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) shall be disregarded;
[Act 2 of 2016 wef 11/04/2016]
(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 shall be disregarded; and
[Act 2 of 2016 wef 11/04/2016]
(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, any amount of ordinary wages paid to the employee for any month in the year in excess of $6,000 is to be disregarded;
[Act 2 of 2016 wef 11/04/2016]
“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 1st January to 31st December.
[11/94; 49/2004; 34/2005; 7/2007; 22/2011]
Income from finance or operating lease
10D.
—(1)  Notwithstanding 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 1st April 1990 shall not be made to the lessor but to the lessee as though the machinery or plant had been sold by the lessor to the lessee.
[20/91]
(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 shall apply:
(a)
the Comptroller shall 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 shall only be available as a deduction against the income from finance leasing, and any balance of the allowances shall not, subject to paragraph (d), be available as a deduction against any other income or be available for transfer under section 37C, 37D or 37F;
(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 43I, 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 shall be available as a deduction against any income from offshore finance leasing for that year of assessment, and any balance of the allowances shall not, subject to paragraph (d), be available as a deduction against any other income or be available for transfer under section 37C;
(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) shall be 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 43I —
(i)
the allowances under section 19, 19A, 20, 21, 22 or 23 in respect of operating leasing shall firstly be available as a deduction against the income from such leasing, and any balance of the allowances shall be available as a deduction against any other income; and
(ii)
any losses incurred in respect of finance leasing or operating leasing shall be available as a deduction against any other income.
[1/98; 37/2002; 49/2004; 34/2005; 53/2007]
(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 same meanings as in section 43I(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.
[1/98; 53/2007]
Ascertainment of income from business of making investments
10E.
—(1)  Notwithstanding 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 shall 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 shall not be 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 shall only be 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 shall be disregarded; and
(c)
the allowances under sections 19, 19A, 20 and 21 relating to that business shall only be 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 shall be disregarded.
[32/95; 37/2002]
(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 shall continue to apply to the originator as if the arrangement had not been entered into.
[53/2007]
(2)  In this section —
“approved Islamic debt securities arrangement” and “originator” have the same meanings as in 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.
[32/95; 37/2002; 53/2007]
Ascertainment of income from certain public-private partnership arrangements
10F.
—(1)  Where —
(a)
a contract is entered into on or after 29th 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, the Government or the approved statutory body being the lessee and the person being the lessor,
then —
(i)
notwithstanding any provisions under Part VI, 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, shall not be made to the person, but to the Government or the approved statutory body, as the case may be; and
(ii)
the person shall not be assessed to tax on that part of the lease payment under that finance lease that is attributable to repayment of principal.
[27/2009; 29/2010]
(1A)  Notwithstanding 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 him and the Government or any approved statutory body; and
(ii)
to which INT FRS 112 applies; and
(b)
the person recognises in his financial statements, prepared in accordance with INT FRS 112, that income of a certain amount has been derived from such services,
then that amount shall be deemed as income derived by that person from those services for that basis period.
[19/2013]
(1B)  Notwithstanding subsection (1A), the person referred to in that subsection may elect in accordance with subsection (1D) for the Comptroller to assess to tax any deemed income referred to in subsection (1A) from providing any FRS 11 construction or upgrade services under the public-private partnership arrangement, as income derived by him in the basis period in which those services are completed.
[19/2013]
(1C)  Where an election has been made in accordance with subsection (1D), then, notwithstanding any other provision of this Act —
(a)
the income referred to in subsection (1B) shall be deemed as income derived by the person in the basis period in which the FRS 11 construction or upgrade services are completed; and
(b)
any expenditure for which a deduction or an allowance may be allowed or made to him under Parts V and VI in respect of those services shall be treated as having been incurred in that basis period.
[19/2013]
(1D)  The election shall be made by notice in writing 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, being the year of assessment 2012 or any subsequent year of assessment; or
(b)
at such later time as the Comptroller may allow.
[19/2013]
(1E)  The election made under subsection (1D) shall be irrevocable.
[19/2013]
(2)  In this section —
“approved” means approved by the Minister or such person as he 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 11”, “FRS 17”, “INT FRS 104” and “INT FRS 112” mean the financial reporting standards known as Financial Reporting Standard 11 (Construction Contracts), Financial Reporting Standard 17 (Leases), Interpretation of Financial Reporting Standard 104 (Determining whether an arrangement contains a lease) and Interpretation of Financial Reporting Standard 112 (Service Concession Arrangements), respectively, issued by the Accounting Standards Council under the Accounting Standards Act (Cap. 2B).
[27/2009; 19/2013]
10G.  [Repealed by Act 37 of 2002]
Ascertainment of income from business of hiring out motor cars or providing driving instruction
10H.
—(1)  Notwithstanding 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 shall apply:
(a)
any outgoings and expenses incurred in respect of that business for that year of assessment and allowable under this Act shall only be deducted against the income derived from that business and any excess of such outgoings and expenses over such income shall not be available as a deduction against any other income of the person or be available for transfer under section 37C, 37D or 37F for that year of assessment and any subsequent year of assessment; and
(b)
the allowances under sections 19, 19A, 20, 21 and 22 relating to that business for that year of assessment shall only be available as a deduction against the income derived from that business and any excess of such allowances over such income shall not be available as a deduction against any other income of the person or be available for transfer under section 37C, 37D or 37F for that year of assessment and any subsequent year of assessment.
[32/99; 37/2002; 49/2004; 34/2005]
(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.
[32/99]
10I.  [Repealed by Act 37 of 2014 wef 27/11/2014]
10J.  [Repealed by Act 37 of 2014 wef 27/11/2014]
10K.  [Repealed by Act 37 of 2014 wef 27/11/2014]
Withdrawals from Supplementary Retirement Scheme
10L.
—(1)  Where the amount of withdrawals made by an SRS member from his SRS account in any year exceeds the amount he contributed to his SRS account in that year, the excess amount withdrawn from his SRS account shall, subject to subsections (3), (3G), (6), (7), (8) and (9), be deemed to be income of the SRS member chargeable to tax under section 10(1)(g).
[24/2001]
[Act 2 of 2016 wef 11/04/2016]
(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) shall be payable by the SRS member and shall be deducted by the SRS operator from the amount so withdrawn.
[24/2001]
[Act 2 of 2016 wef 11/04/2016]
(2A)  The Minister may, for any good cause, remit, wholly or in part, any penalty payable by any SRS member under subsection (2).
[37/2002]
(3)  Subject to subsection (3G), only 50% of the following withdrawals made by an SRS member from his SRS account shall be 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 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 SRS account for a period of not less than 10 years from the date of his first contribution to his 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 first contribution to his 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 his affairs or is suffering from a terminal illness or disease.
[24/2001; 37/2002; 21/2008; 4/2011]
[Act 2 of 2016 wef 11/04/2016]
(3A)  Subject to subsection (3C), where an SRS member has used funds in his 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,
shall be considered a withdrawal by the SRS member from his SRS account for the purposes of subsections (1), (2) and (3)(b) and (c).
[22/2011]
(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 shall be treated as if he is still an SRS member for the purposes of subsections (1), (2), (2A) and (3)(b) and (c).
[22/2011]
(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).
[22/2011]
(3D)  Where any funds in an SRS account have been used for investment, then all the funds standing in the SRS account shall be 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.
[Act 37 of 2014 wef 01/07/2015]
[Act 2 of 2016 wef 11/04/2016]
(3E)  Where —
(a)
an SRS member has used funds in his 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), shall be considered as having been withdrawn by the SRS member from his SRS account on the date of the deduction for the purposes of subsections (1), (2), (3) and (3G).
[Act 37 of 2014 wef 01/07/2015]
[Act 2 of 2016 wef 11/04/2016]
(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).
[Act 37 of 2014 wef 01/07/2015]
(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 is suffering from 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).
[Act 2 of 2016 wef 11/04/2016]
(4)  Where any contribution made by an SRS member in any year to his SRS account exceeds his SRS contribution cap for that year (referred to in this section as 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 SRS account,
whichever amount is the lower, shall be withdrawn by the SRS member from his SRS account by 31st December of the year in which he has been notified by the Comptroller of the excess contribution; and that amount shall be deemed to be his income chargeable to tax under section 10(1)(g) for that year.
[24/2001]
(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 SRS account shall be withdrawn not later than 10 years from the date he made his first withdrawal under subsection (3)(b).
[34/2008]
(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 shall be deemed to be withdrawn by the SRS member and 50% of such balance shall be deemed to be his income chargeable to tax under section 10(1)(g) for the year in which the period expires.
[24/2001; 34/2008]
(6A)  Where an SRS member —
(a)
made his first withdrawal under subsection (3)(b); and
(b)
subsequently made one or more contributions to his SRS account during the period from 1st October 2008 to 31st December 2008 (both dates inclusive),
then —
(i)
any withdrawal made under subsection (3)(b) prior to the date of the first of his contributions referred to in paragraph (b) shall be disregarded for the purpose of determining the period referred to in subsection (5); and
(ii)
the date of his first withdrawal made under subsection (3)(b) after the date of the first of his contributions referred to in paragraph (b) shall be deemed to be the date he made his first withdrawal under subsection (3)(b) for the purpose of determining the period referred to in subsection (5).
[27/2009]
(6B)  Where an SRS member —
(a)
had made one or more withdrawals under subsection (3)(b) of all the funds standing in his SRS account and had closed his SRS account (referred to in this subsection as the first SRS account); and
(b)
subsequently opened another SRS account during the period from 1st October 2008 to 31st December 2008 (both dates inclusive) (referred to in this subsection as the second SRS account),
then —
(i)
the reference to the date he made his first withdrawal under subsection (3)(b) for the purpose of determining the period referred to in subsection (5) shall be read as a reference to the date he makes his first withdrawal after he opened the second SRS account; and
(ii)
for the purposes of subsection (1) and section 39(2)(o), both the first SRS account and the second SRS account shall be deemed to be the same account as if the first SRS account had never been closed.
[27/2009]
(7)  Where an SRS member is eligible to make a withdrawal under subsection (3)(c), he shall withdraw all the funds (excluding any life annuity) standing in his SRS account not later than 10 years from the date he 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 SRS account shall be deemed to be withdrawn by the SRS member and 50% of such balance shall be deemed to be his income chargeable to tax under section 10(1)(g).
[24/2001]
(8)  Only 50% of any annuity payment made under a life annuity purchased by an SRS member under the SRS shall be 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 his affairs, or begins to suffer from a terminal illness or disease.
[Act 2 of 2016 wef 11/04/2016]
(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).
[Act 2 of 2016 wef 11/04/2016]
(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 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).
[Act 2 of 2016 wef 11/04/2016]
(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.
[Act 2 of 2016 wef 11/04/2016]
(10)  For the purposes of this section, the use of funds in his SRS account by an SRS member for investment in savings or investment products offered under the SRS and for disbursement of any charges in relation to the operation of his SRS account shall be deemed not to be a withdrawal from his SRS account.
[24/2001]
(11)  The Minister may by regulations establish a Supplementary Retirement Scheme to provide for voluntary cash contributions by individuals and by their employers on their behalf to accounts operated by SRS operators so as to encourage individuals to save for their old age.
[24/2001; 34/2008]
(12)  Without prejudice to the generality of subsection (11), regulations made under that subsection may provide for —
(a)
the opening and the type of account for any SRS member into which contributions may be made;
(b)
the SRS contribution cap, the mode and manner of the contributions and withdrawals that can be made by any SRS member;
(c)
the method of valuation of investment products acquired under the SRS;
(d)
the method of computing income deemed to accrue from excess contributions made by any SRS member;
(e)
the suspension or closure of SRS accounts and the circumstances in which the SRS accounts may be suspended or closed;
(f)
the terms and conditions governing the relationship between the Government, SRS operators, SRS members and the Comptroller under the SRS;
(g)
the purposes for which the contributions made under the SRS can be utilised and invested, the persons with whom investments may be made and the terms and conditions of the investment and withdrawal under the SRS;
(h)
the consequences for any contravention of the regulations, including making any act or omission in contravention of such regulations an offence and prescribing the penalties for such offence;
(i)
the requirements and obligations to be observed by SRS members, SRS operators and financial product providers under the SRS; and
(j)
generally for giving full effect to or for carrying out the purposes of this section.
[24/2001]
(12A)  Without prejudice to the generality of subsections (11) and (12), regulations made under subsection (11) may, for the purposes of subsections (3D), (3E) and (3F) and section 45EA (which relates to collection of tax by an SRS operator for payment to the Comptroller on the value of an investment deducted from an SRS account of a non-citizen) —
(a)
provide for the manner and time of valuation of any investment;
(b)
enable an SRS operator to approve the deduction of the sums representing an investment from the balance in an SRS account under such circumstances as may be specified, and impose duties on the SRS operator before and after giving the approval; and
(c)
for the purposes of section 45EA, prescribe different methods of reckoning the value of an investment under different circumstances.
[Act 37 of 2014 wef 01/07/2015]
(13)  This section shall not apply to any SRS member whose SRS account is opened and subsequently closed within the same year.
[24/2001; 27/2009]
(14)  In this section, unless the context otherwise requires —
(a)
a reference to an SRS member making a contribution to his SRS account includes his employer making a contribution to that account on his behalf; and
(b)
a reference to a contribution of an SRS member to his SRS account includes a contribution by his employer to that account on his behalf.
[27/2009]
10M.  [Repealed by Act 37 of 2014 wef 27/11/2014]
Securities lending or repurchase arrangement
10N.
—(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.
[37/2002]
(2)  Notwithstanding 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 him from any transfer of securities under a securities lending or repurchase arrangement shall be 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 him 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 opinion of the Comptroller, 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 shall be deemed to arise at the time any of the events referred to in paragraph (a), (b), (c), (d) or (e) occurs.
[37/2002]
(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 him from any transfer of securities under a securities lending or repurchase arrangement shall be chargeable to tax under section 10(1)(a), and the gains or profits shall be 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; and
(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.
[37/2002]
(4)  For the purposes of computing the gains or profits of a transferee under subsection (3), the transferee is to be treated as if he 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.
[37/2002]
(5)  Where any distribution of dividend or interest 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 shall 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.
[37/2002]
(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) shall not be entitled to any tax credit under section 50 or 50A for any distribution received by him from outside Singapore in respect of transferred securities under a securities lending or repurchase arrangement.
[37/2002; 27/2009]
(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 dividend which is exempt from tax or interest which is derived from qualifying debt securities, the transferor shall be assessed at the tax rate that would have been applicable to the dividend or interest, as the case may be, had it been made directly to the transferor; or
(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 shall be allowed to the transferor.
[37/2002; 27/2009; 19/2013]
(9)  Section 45 shall apply 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; or
(ii)
[Deleted by Act 19 of 2013]
(iii)
any interest (other than interest derived from qualifying debt securities),
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 him to be resident in Singapore, and for the purpose of such application, any reference in that section to interest shall be construed as a reference to such distribution of interest or compensatory payment.
[37/2002; 19/2013]
(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.
[37/2002]
(11)  The Minister may make regulations to provide generally for giving full effect to or for carrying out the purposes of this section.
[37/2002]
(12)  In this section —
“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 of interest, dividend 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;
“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, sub-divided 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 securities, other than stocks and shares, 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;
“qualifying debt securities” has the same meaning as in section 13(16);
“securities” includes any collateral that is provided in the form of securities but does not include stocks and shares of any company resident in Singapore which are not listed on any stock exchange in Singapore or elsewhere;
“securities lending or repurchase arrangement” means any written arrangement made on or after 23rd November 2001 —
(a)
under which —
(i)
a person (referred to in this section as transferor) transfers the legal interest in any securities (referred to in this section as transferred securities) to another person (referred to in this section as transferee) for any commercial purpose;
(ii)
the transferor re-acquires the transferred securities or acquires equivalent securities from the transferee at a later time;
(iii)
the transferor retains the risk of loss or opportunity for gain in respect of the transferred securities;
(iv)
the transferor does not dispose of (by transfer, declaration of trust or otherwise) the right to receive any part of the total consideration payable or to be given by the transferee under the arrangement; and
(v)
if any distribution is made in respect of the transferred securities during the borrowing period, the transferor receives from the transferee the distribution or compensatory payment equal to the value of the distribution; and
(b)
where —
(i)
the transferor and transferee are dealing with each other at arm’s length; and
(ii)
the transferor or transferee or both of them do not enter into the arrangement with the purpose, or main purpose, of avoiding, reducing or deferring any tax chargeable under this Act;
“Singapore-based transferee” means a transferee who is resident in Singapore (except in respect of any business carried on outside Singapore through a permanent establishment outside Singapore) or which is a permanent establishment in Singapore;
“Singapore Government securities” and “debt securities” have the same meanings as in section 43N.
[37/2002; 34/2005]
(13)  This section has effect notwithstanding anything to the contrary in this Act, except that nothing in this section shall affect the chargeability to tax of any income of a transferor or transferee under section 10 unless otherwise provided in this section.
[37/2002]
Additional Tier 1 capital instruments
10O.
—(1)  Any distribution 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 shall be deemed for the purposes of this Act, and for that year of assessment, as interest derived from a debt security.
(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)
either —
(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 (Cap. 19); or
(ii)
according to a direction issued under section 28(3) of the Monetary Authority of Singapore Act (Cap. 186) and 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 that Act;
“full banking licence” has the same meaning as in the Banking (Licence Fees) Notification (Cap. 19, N 1);
“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), 36(2) and 55 of the Banking Act, and includes any notice that replaces it.
[Act 37 of 2014 wef 27/11/2014]
Ascertainment of income of clubs, trade associations, etc.
11.
—(1)  Where a body of persons, whether corporate or unincorporate, 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), it shall not be 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) shall be deemed to be receipts from a business, and the body of persons shall be 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 shall be 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) shall be deemed to be receipts from a business; and
(c)
the body of persons shall be chargeable in respect of the profits from the business.
[7/2007]
(3)  For the purposes of subsection (2), “body of persons” includes a company limited by guarantee approved by the Minister or such person as he may appoint, subject to such conditions as he may impose.
[7/2007]
(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.
[7/2007]
Sources of income
Trading operations carried on partly in Singapore
12.
—(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 shall be 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 him calls at a port, an aerodrome or an airport in Singapore, his full profits arising from the carriage of passengers, mail, livestock or goods shipped, or loaded into an aircraft, in Singapore shall be deemed to accrue in Singapore.
(2A)  Subsection (2) shall 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 same meaning as in section 2(1) of the Merchant Shipping Act (Cap. 179).
[Act 2 of 2016 wef 11/04/2016]
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, his full profits arising from the transmission in Singapore of any such messages, whether originating in Singapore or elsewhere, to places outside Singapore shall be deemed to accrue in Singapore.
Employment exercised in Singapore
(4)  The gains or profits from any employment exercised in Singapore shall be 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 shall be deemed to be derived from Singapore except where such individual is not a citizen or a resident of Singapore.
Interest, etc.
(6)  There shall be 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.
[5/77]
(6A)  Subsection (6) shall 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 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 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 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 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.
[27/2009]
Royalties, etc.
(7)  There shall be deemed to be derived from Singapore —
(a)
royalty or other payments 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 payments under any agreement or arrangement for the use of any movable property,
which are 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 are deductible against any income accruing in or derived from Singapore.
[5/77]
(7A)  Subsection (7) shall 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 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 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;
[Act 37 of 2014 wef 28/02/2013]
(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 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 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
[27/2009]
[Act 37 of 2014 wef 28/02/2013]
(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.
[Act 37 of 2014 wef 28/02/2013]
(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.
[Act 37 of 2014 wef 28/02/2013]
Commission or other payment of licensed international market agent
(8)  There shall be 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.
[10/2006; 36/2012]
(9)  In this section, “casino marketing arrangement”, “casino operator” and “international market agent” have the same meanings as in the Casino Control Act (Cap. 33A).
[36/2012]