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Contents  

Long Title

Part I PRELIMINARY

Part II ADMINISTRATION

Part III IMPOSITION OF INCOME TAX

Part IV EXEMPTION FROM INCOME TAX

Part V DEDUCTIONS AGAINST INCOME

Part VI CAPITAL ALLOWANCES

Part VII ASCERTAINMENT OF CERTAIN INCOME

Part VIII ASCERTAINMENT OF STATUTORY INCOME

Part IX ASCERTAINMENT OF ASSESSABLE INCOME

Part X ASCERTAINMENT OF CHARGEABLE INCOME AND PERSONAL RELIEFS

Part XI RATES OF TAX

Part XII DEDUCTION OF TAX AT SOURCE

Part XIII ALLOWANCES FOR TAX CHARGED

Part XIV RELIEF AGAINST DOUBLE TAXATION

Part XV PERSONS CHARGEABLE

Husband and wife

Trustees, agents and curators

Part XVI RETURNS

Part XVII ASSESSMENTS AND OBJECTIONS

Part XVIII APPEALS

Part XIX COLLECTION, RECOVERY AND REPAYMENT OF TAX

Part XX OFFENCES AND PENALTIES

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

Part XXB INTERNATIONAL AGREEMENTS TO IMPROVE TAX COMPLIANCE

Part XXI MISCELLANEOUS

FIRST SCHEDULE Institution, authority, person or fund exempted

SECOND SCHEDULE Rates of tax

THIRD SCHEDULE Repealed

FOURTH SCHEDULE Name of bond, securities, stock or fund

FIFTH SCHEDULE Child relief

SIXTH SCHEDULE Number of years of working life of asset

SEVENTH SCHEDULE Advance rulings

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

Legislative History

Comparative Table

Comparative Table

 
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PART XI
RATES OF TAX
Rates of tax upon individuals
42.
—(1)  Subject to subsection (2), there shall be levied and paid for each year of assessment upon the chargeable income of every person (other than a body of persons, a company, a person not resident in Singapore, a trustee who is not the trustee of an incapacitated person, or an executor) tax in accordance with the rates specified in Part A of the Second Schedule in respect of the chargeable income of an individual.
[27/2009; 29/2012]
(2)  Without prejudice to section 50, the rate of tax applicable to the income of an individual received in Singapore from outside Singapore shall be determined by reference to that income together with all other income and shall be deemed to be the highest rate applicable to his total income.
[31/86; 26/93; 28/96; 34/2005; 29/2012]
(3)  [Deleted by Act 19 of 2013]
Rebate for children of family
42A.
—(1)  Where an individual resident in Singapore has —
(a)
a second child of the family born to him on or after 1st January 2004 who is legitimate at the time of the birth;
(b)
an illegitimate second child of the family born to him on or after 1st January 2004 and the individual becomes lawfully married to the other natural parent of the child before the child reaches 6 years of age;
(c)
a second child of the family adopted by him under any written law relating to the adoption of children on or after 1st January 2004 and before 1st January 2006; or
(d)
a second child of the family adopted by him under any written law relating to the adoption of children on or after 1st January 2006 and before the child reaches 6 years of age,
then there shall, in respect of that child, be allowed for the year of assessment immediately following the year of the birth in the case of paragraph (a), the year of the marriage in the case of paragraph (b), or the year of the adoption in the case of paragraph (c) or (d), a rebate of $10,000 against the tax payable by that individual.
[7/2007; 34/2008]
(2)  Where an individual resident in Singapore has —
(a)
a third or fourth child of the family born to him on or after 1st January 2004 who is legitimate at the time of the birth;
(b)
an illegitimate third or fourth child of the family born to him on or after 1st January 2004 and the individual becomes lawfully married to the other natural parent of the child before the child reaches 6 years of age;
(c)
a third or fourth child of the family adopted by him under any written law relating to the adoption of children on or after 1st January 2004 and before 1st January 2006; or
(d)
a third or fourth child of the family adopted by him under any written law relating to the adoption of children on or after 1st January 2006 and before the child reaches 6 years of age,
then there shall, in respect of that child, be allowed for the year of assessment immediately following the year of the birth in the case of paragraph (a), the year of the marriage in the case of paragraph (b), or the year of the adoption in the case of paragraph (c) or (d), a rebate of $20,000 against the tax payable by that individual.
[7/2007]
(2A)  Where an individual resident in Singapore has —
(a)
a first child of the family born to him on or after 1st January 2008 who is legitimate at the time of the birth;
(b)
an illegitimate first child of the family born to him on or after 1st January 2008 and the individual becomes lawfully married to the other natural parent of the child before the child reaches 6 years of age; or
(c)
a first child of the family adopted by him under any written law relating to the adoption of children on or after 1st January 2008 and before the child reaches 6 years of age,
then there shall, in respect of that child, be allowed for the year of assessment immediately following the year of the birth in the case of paragraph (a), the year of marriage in the case of paragraph (b), or the year of the adoption in the case of paragraph (c), a rebate of $5,000 against the tax payable by that individual.
[34/2008]
(2B)  Where an individual resident in Singapore has —
(a)
a fifth or subsequent child of the family born to him on or after 1st January 2008 who is legitimate at the time of the birth;
(b)
an illegitimate fifth or subsequent child of the family born to him on or after 1st January 2008 and the individual becomes lawfully married to the other natural parent of the child before the child reaches 6 years of age; or
(c)
a fifth or subsequent child of the family adopted by him under any written law relating to the adoption of children on or after 1st January 2008 and before the child reaches 6 years of age,
then there shall, in respect of that child, be allowed for the year of assessment immediately following the year of the birth in the case of paragraph (a), the year of marriage in the case of paragraph (b), or the year of the adoption in the case of paragraph (c), a rebate of $20,000 against the tax payable by that individual.
[34/2008]
(2C)  Where more than one individual is entitled to claim the rebate referred to in subsection (1), (2), (2A) or (2B), the rebate shall be apportioned between them in such proportion as they may agree or, in the absence of any agreement, in such manner as appears to the Comptroller to be reasonable.
[34/2008]
(3)  For the purposes of subsections (1) to (2C), where full effect cannot be given to the rebate in respect of any child by reason of an insufficiency of the tax payable by an individual for that year of assessment, the balance of the unabsorbed rebate shall be available for deduction against the tax payable by the individual for the year of assessment immediately following that year of assessment and any subsequent year of assessment.
[49/2004; 7/2007; 34/2008]
(4)  Where the child in respect of whom a rebate is allowable to an individual under this section is adopted by another person, the rebate or balance, if any, of the unabsorbed rebate shall not be available for deduction against the tax payable by the individual for any year of assessment following the year in which the child is adopted.
[49/2004; 34/2008]
(5)  Where, for the year of assessment 2005 or any subsequent year of assessment, an individual would have been entitled to claim any rebate or balance of the unabsorbed rebate under section 42A(1) and (2)(a) in force immediately before 1st January 2005 but for the repeal of that section, such rebate or balance shall, subject to subsection (4), be available for deduction against the tax payable by that individual for the year of assessment 2005 and any subsequent year of assessment; but where more than one individual is entitled to claim such rebate, the rebate shall be apportioned between them in such proportion as they may agree or, in the absence of any agreement, in such manner as appears to the Comptroller to be reasonable.
[49/2004]
(6)  Where, for the year of assessment 2005 or any subsequent year of assessment, a married woman would have been entitled to claim any rebate or balance of the unabsorbed rebate under section 42A(2)(b) and (3) in force immediately before 1st January 2005 but for the repeal of that section —
(a)
such rebate or balance shall, subject to subsection (4), be available for deduction against the tax payable by that woman for the year of assessment 2005 and any subsequent year of assessment up to 9 years of assessment immediately following the year of birth of the third child or fourth child, as the case may be; and
(b)
where the fourth child is born within 9 years of the birth of the third child and full effect cannot be given to the rebate in respect of the fourth child by reason of an insufficiency of the tax payable by that woman for that year of assessment, the rebate or balance, if any, of the unabsorbed rebate shall, subject to subsection (4), be available for deduction, in the case of the fourth child, against the tax payable by that woman for up to 9 years of assessment immediately following the last year of assessment in which the rebate in respect of the third child may be allowed under paragraph (a).
[49/2004]
(7)  Where, for the year of assessment 2005 or any subsequent year of assessment, a married woman would have been entitled to claim any rebate or balance of the unabsorbed rebate under section 42A(1), (2) and (3) in force immediately before 1st January 2005 but for the repeal of that section, the rebate or balance of the unabsorbed rebate in respect of the third child or fourth child, as the case may be, under section 42A(2)(b) and (3) in force immediately before 1st January 2005 shall —
(a)
subject to subsection (4), first be allowed for deduction against the tax payable by that woman before the rebate or balance of the unabsorbed rebate under section 42A(1) and (2)(a) in force immediately before 1st January 2005 is allowed; and
(b)
subject to section 42A(4)(b) and (c) in force immediately before 1st January 2005, be available for deduction for the year of assessment 2005 and any subsequent year of assessment.
[49/2004]
(8)  Where a marriage has been dissolved by divorce or annulment and an individual is entitled to claim —
(a)
any rebate or balance of the unabsorbed rebate under section 42A(1) or (2) in force immediately before 1st January 2005, but for the repeal of that section, in respect of any child born to the individual from that marriage; and
(b)
any rebate under section 42A(1) or (2) in force immediately before 1st January 2005, but for the repeal of that section, in respect of any child born to the individual after the dissolution of the marriage,
subsections (5), (6) and (7) shall only apply to any second, third or fourth child, as the case may be, born to the individual after the dissolution of the marriage.
[49/2004]
(9)  Where a marriage was dissolved by divorce or annulment before 1st January 2002 and an individual would, but for section 42A(3)(e) in force immediately before that date, have been entitled to claim any rebate or balance of the unabsorbed rebate under section 42A(1) or (2) in force immediately before 1st January 2005, such rebate or balance shall, subject to section 42A(4)(a) to (d) in force immediately before 1st January 2005, be available for deduction against the tax payable by that individual only on due claim by that individual after that date and only for any year of assessment from the year of the claim.
[49/2004]
(10)  No rebate shall be allowed under this section for the year of assessment 2008 or a preceding year of assessment, in respect of a child who at the time of his birth or adoption or the marriage of his natural parents (as the case may be), has more than 3 other siblings who are members of the same household.
[34/2008]
(10A)  No rebate shall be allowed under this section in respect of a child who is adopted by an individual before the individual is married.
[34/2008]
(11)  In this section —
“first child of the family” means a child of the family who —
(a)
is a citizen of Singapore at the time of his birth or adoption or the marriage of his natural parents (as the case may be), or within 12 months thereafter; and
(b)
at the time of his birth, adoption or the marriage of his natural parents (as the case may be), has no other sibling who is a member of the same household;
“second child of the family” means a child of the family who —
(a)
is a citizen of Singapore at the time of his birth or adoption or the marriage of his natural parents (as the case may be), or within 12 months thereafter; and
(b)
at the time of his birth, adoption or the marriage of his natural parents (as the case may be), has one other sibling who is a member of the same household;
“third child of the family” means a child of the family who —
(a)
is a citizen of Singapore at the time of his birth or adoption or the marriage of his natural parents (as the case may be), or within 12 months thereafter; and
(b)
at the time of his birth, adoption or the marriage of his natural parents (as the case may be), has 2 other siblings who are members of the same household;
“fourth child of the family” means a child of the family who —
(a)
is a citizen of Singapore at the time of his birth or adoption or the marriage of his natural parents (as the case may be), or within 12 months thereafter; and
(b)
at the time of his birth, adoption or the marriage of his natural parents (as the case may be), has 3 other siblings who are members of the same household;
“fifth or subsequent child of the family” means a child of the family who —
(a)
is a citizen of Singapore at the time of his birth or adoption or the marriage of his natural parents (as the case may be), or within 12 months thereafter; and
(b)
at the time of his birth, adoption or the marriage of his natural parents (as the case may be), has at least 4 other siblings who are members of the same household;
“sibling” means a brother or sister and includes a step-brother, a step-sister and a brother or sister adopted under any written law relating to the adoption of children.
[49/2004; 7/2007; 34/2008]
(12)  For the purposes of subsection (11), any sibling who is deceased shall be taken into account in determining the number of siblings a child has at the time of his birth or adoption or the marriage of his natural parents unless otherwise determined by the Comptroller.
[49/2004; 7/2007]
(13)  For the purposes of subsection (11), a child is a member of a household if —
(a)
the members of the household include both the parents of the child or, if there is only one surviving parent, that parent;
(b)
in the case where the parents of the child are divorced, any member of the household is a parent of the child who has sole legal custody of the child; or
(c)
in the case where the parents of the child are divorced and neither has sole legal custody of the child, any member of the household is a parent of the child who has been given rights of care and control in respect of the child by any court.
[53/2007]
(14)  If the child is a member of more than one household by virtue of subsection (13)(c), he shall be treated as such member of the household of only one parent as determined by the Comptroller (whose decision shall be final) having regard to the circumstances of the case, including the child’s living arrangements.
[53/2007]
(15)  In subsection (13), “parent” includes an adoptive parent and a step-parent.
[53/2007]
Rate of tax upon companies and others
43.
—(1)  Subject to section 40, there shall be levied and paid for each year of assessment upon the chargeable income of —
(a)
every company or body of persons, tax at the rate of 17% on every dollar of the chargeable income thereof;
(b)
every individual not resident in Singapore, tax at the rate of 22% on every dollar of the chargeable income thereof; and
[Act 2 of 2016 wef 11/04/2016]
(c)
every other person not resident in Singapore, trustee (other than the trustee of an incapacitated person) and executor, tax at the rate of 17% on every dollar of the chargeable income thereof.
[53/2007; 27/2009; 29/2012]
(2)  Where any trustee proves to the satisfaction of the Comptroller that any beneficiary of the trust is entitled to a share of the trust income, a corresponding share of the statutory income of the trustee may be charged at a lower rate or not charged with any tax, as the Comptroller shall determine.
(2A)  Subsection (2) shall not apply to —
(a)
in the case of a real estate investment trust, any income from any trade or business carried on by the trustee, other than the following income distributed by the trustee in cash or, if the conditions specified in subsection (2B) are satisfied, in units in the trust:
(i)
rental income or income from the management or holding of immovable property but not including gains from the disposal of immovable property;
(ii)
income that is ancillary to the management or holding of immovable property but not including gains from the disposal of immovable property;
(iii)
income that is payable out of rental income or income from the management or holding of immovable property in Singapore, but not out of gains from the disposal of such immovable property;
(iv)
distribution from an approved sub-trust of the real estate investment trust out of income referred to in paragraph (b)(i), (ii) and (iii);
[Act 34 of 2016 wef 29/12/2016]
(v)
rental support payment in relation to any immovable property, which is paid to the trustee by —
(A)
the person (A) who sold to the trustee the property or any interest in the owner of the property;
(B)
a person who wholly owns (directly or indirectly) A; or
(C)
any other person approved by the Comptroller;
[Act 34 of 2016 wef 29/12/2016]
(b)
in the case of any approved sub-trust of a real estate investment trust, any income from any trade or business carried on by the trustee, other than the following income distributed by the trustee in cash to the trustee of the real estate investment trust:
(i)
rental income or income from the management or holding of immovable property but not including gains from the disposal of immovable property;
(ii)
income that is ancillary to the management or holding of immovable property but not including gains from the disposal of immovable property;
[Act 34 of 2016 wef 29/12/2016]
(iii)
rental support payment in relation to any immovable property, which is paid to the firstmentioned trustee by —
(A)
the person (A) who sold to that trustee the property or any interest in the owner of the property;
(B)
a person who wholly owns (directly or indirectly) A; or
(C)
any other person approved by the Comptroller; or
[Act 34 of 2016 wef 29/12/2016]
(c)
in the case of any other trust, any income from any trade or business carried on by the trustee.
[7/2007; 53/2007; 27/2009; 19/2013]
(2B)  The conditions referred to in subsection (2A)(a) are —
(a)
the distribution is made at any time from 1st July 2009 to 31st December 2010 (both dates inclusive), or on or after 1st April 2012 by the trustee of the real estate investment trust out of income specified in subsection (2A)(a)(i) to (v);
[Act 34 of 2016 wef 29/12/2016]
(b)
before the distribution, the trustee of the real estate investment trust has given to unitholders receiving the distribution an option to receive the same either in cash or units in the trust; and
(c)
the trustee of the real estate investment trust has sufficient cash available on the date of such distribution to make the distribution fully in cash had no option been given to those unitholders to receive the distribution in units in the trust.
[27/2009; 29/2012]
(3)  Notwithstanding anything in this Act but subject to subsection (3A), tax at the rate of 15% shall be levied and paid on the gross amount of —
(a)
any income referred to in section 12(6); and
(b)
any income referred to in section 12(7)(a), (b) and (d) but excluding the incomes specified in subsection (7),
accruing in or derived from Singapore on or after 28th February 1996 by a person not resident in Singapore which is not derived by the person from any trade, business, profession or vocation carried on or exercised by him in Singapore and which is not effectively connected with any permanent establishment in Singapore of the person.
[28/96; 49/2004]
(3A)  Notwithstanding anything in this Act, tax at the rate of 10% shall be levied and paid on the gross amount of any income referred to in section 12(7)(a) and (b) but excluding the incomes specified in subsection (7), accruing in or derived from Singapore on or after 1st January 2005 by a person not resident in Singapore which is not derived by the person from any trade, business, profession or vocation carried on or exercised by him in Singapore and which is not effectively connected with any permanent establishment in Singapore of the person.
[49/2004]
(3B)  Notwithstanding anything in this Act, tax at the rate of 10% shall be levied and paid on the gross amount of any distribution made out of any income referred to in subsection (2A)(a)(i), (ii), (iii), (iv) and (v) during the period from 18th February 2005 to 31st March 2020 (both dates inclusive) by a trustee of any real estate investment trust to a person (other than an individual) not resident in Singapore —
(a)
who does not have any permanent establishment in Singapore; or
(b)
who carries on any operation in Singapore through a permanent establishment in Singapore, where the funds used by that person to acquire the units in that real estate investment trust are not obtained from that operation.
[34/2005; 7/2007; 53/2007; 29/2010]
[Act 37 of 2014 wef 27/11/2014]
[Act 2 of 2016 wef 01/04/2015]
[Act 34 of 2016 wef 29/12/2016]
(3C)  [Deleted by Act 19 of 2013]
(4)  Notwithstanding anything in this Act but subject to subsection (5) and sections 13(1)(r), (ra) and (rb) and 40A, tax at the rate of 15% shall be levied and paid on the gross amount of any income accruing in or derived from Singapore on or after 3rd May 2002 from any profession or vocation carried on by —
(a)
an individual not resident in Singapore and whose principal place of business is situated outside Singapore; or
(b)
a foreign firm.
[37/2002]
[Act 2 of 2016 wef 01/04/2015]
(5)  Any individual or foreign firm to which subsection (4) applies may make an irrevocable option to be taxed under subsection (1)(b) by the 15th day of the second month following the month in which the payment of the income is liable to be made to the individual or firm.
[19/2013]
(6)  Notwithstanding subsection (1) but subject to subsection (6A), there shall be levied and paid for each year of assessment upon the chargeable income of every company or body of persons —
(a)
in the case of a company, for the year of assessment 2008 and subsequent years of assessment; and
(b)
in the case of a body of persons, for the year of assessment 2010 and subsequent years of assessment,
tax at the rate prescribed in subsection (1)(a) on every dollar of the chargeable income thereof except that —
(i)
for every dollar of the first $10,000 of the chargeable income, only 25% shall be charged with tax; and
(ii)
for every dollar of the next $290,000 of the chargeable income, only 50% shall be charged with tax.
[27/2009; 19/2013]
(6A)  Notwithstanding subsections (1) and (6), where, in any of the first 3 years of assessment, falling in or after the year of assessment 2008, of a company, the company is a qualifying company, then for that year of assessment there shall be levied and paid upon the chargeable income of the company tax at the rate prescribed in subsection (1)(a) on every dollar of the chargeable income thereof except that —
(a)
every dollar of the first $100,000 of the chargeable income shall be exempt from tax; and
(b)
for every dollar of the next $200,000 of the chargeable income, only 50% shall be charged with tax.
[53/2007; 27/2009; 19/2013]
(7)  The incomes excluded under subsections (3)(b) and (3A) are —
(a)
any royalty and other payments referred to in section 10(14) or (16) which are derived by the person not resident in Singapore; and
(b)
any payment to a person not resident in Singapore for the rendering of assistance or service in connection with the application or use of scientific, technical, industrial or commercial knowledge or information.
[28/96; 49/2004]
(8)  The reference to 17% in subsection (1) shall —
(a)
for the years of assessment 2005, 2006 and 2007, be read as a reference to 20%; and
(b)
for the years of assessment 2008 and 2009, be read as a reference to 18%.
[27/2009]
(9)  Notwithstanding subsection (1)(a), the tax to be levied and paid upon such income of a life insurer (other than a captive insurer) apportioned to the policyholders of the insurer as the Minister may by regulations specify shall be at the rate of 10% or such other prescribed rate.
[28/92; 7/2007; 27/2009]
(10)  In this section —
“approved sub-trust”, in relation to a real estate investment trust, means any trust —
(a)
not listed on the Singapore Exchange or elsewhere;
(b)
where the trustee of the real estate investment trust holds any right or interest in the property of the trust for the benefit of the beneficiaries of the real estate investment trust; and
(c)
approved by the Comptroller;
“captive insurer” has the same meaning as in section 1A of the Insurance Act (Cap. 142);
“first 3 years of assessment”, in relation to a qualifying company, means the year of assessment relating to the basis period during which the company is incorporated in Singapore and the 2 consecutive years of assessment immediately following that year of assessment;
“foreign firm” means an unincorporated body of 2 or more persons who have entered into partnership with one another with a view to carrying on business for profit and whose principal place of business is situated outside Singapore;
“gross amount”, in relation to any income referred to in subsections (3), (3A), (3B) and (4), means the full amount of the income without any deduction and relief being allowed against the income under the provisions of this Act;
“immovable property-related assets” means listed or unlisted debt securities and listed shares issued by property corporations, mortgage-backed securities, other property funds, and assets incidental to the ownership of immovable property;
“qualifying company”, in relation to a year of assessment, means a company incorporated in Singapore which for that year of assessment —
(a)
is resident in Singapore; and
(b)
where the company —
(i)
is not a company limited by guarantee, has its total share capital beneficially held directly by no more than 20 shareholders —
(A)
all of whom are individuals throughout the basis period for that year of assessment; or
(B)
at least one of whom is an individual holding at least 10% of the total number of issued ordinary shares of the company throughout the basis period for that year of assessment; or
(ii)
is a company limited by guarantee, has members —
(A)
all of whom are individuals throughout the basis period for that year of assessment; or
(B)
at least one of whom is an individual throughout the basis period for that year of assessment, and the contribution of that individual under the memorandum of association of the company to the assets of the company in the event of its being wound up, amounts to at least 10% of the total contributions of the members of the company throughout the basis period for that year of assessment;
“real estate investment trust” means a trust that is constituted as a collective investment scheme authorised under section 286 of the Securities and Futures Act (Cap. 289) and listed on the Singapore Exchange, and that invests or proposes to invest in immovable property and immovable property‑related assets;
[28/96; 24/2001; 37/2002; 49/2004; 34/2005; 7/2007; 53/2007; 27/2009; 19/2013]
[Act 34 of 2016 wef 29/12/2016]
“rental support payment”, in relation to immovable property, means any payment —
(a)
made under an agreement —
(i)
made at the time of the sale mentioned in subsection (2A)(a)(v)(A) or (b)(iii)(A); and
(ii)
that provides for such payment to be made only for a fixed period of time; and
(b)
that is intended to compensate a party to the agreement in the event that the amount of rental income from the property over a period of time is less than an amount agreed as the expected rental income for the same period, taking into account prevailing and forecasted market conditions at the time of that sale.
[Act 34 of 2016 wef 29/12/2016]
(11)  Notwithstanding the definition of “qualifying company” in subsection (10), a company that is incorporated on or after 26th February 2013 is not a qualifying company in relation to any year of assessment if —
(a)
it undertakes property development in the basis period for that year of assessment, whether or not that is the only activity it carries out during the basis period;
(b)
it is a partner of a partnership which undertakes property development in the basis period for that year of assessment, whether or not that is the only activity the partnership carries out during the basis period;
(c)
its only activity in that basis period is the holding of investments; or
(d)
it is a partner of a partnership where the only activity of the partnership during that basis period is the holding of investments, and the company has no activity during that basis period or its only activity during that basis period is the holding of investments.
[19/2013]
(12)  For the purposes of subsection (11), a company or partnership undertakes property development if it carries out any of the following activities whether in Singapore or outside Singapore:
(a)
acquires land or building for the purpose of undertaking development (whether by the company or partnership or an entity to which it transfers the land or building) with a view to the sale or lease (whether by the entity undertaking the development or another entity to which the entity undertaking the development transfers the building or part thereof) of the whole or any part of the building so developed;
(b)
development with a view to the sale or lease (whether by the company or partnership or another entity to which the company or partnership transfers the building or part thereof) of the whole or any part of the building so developed;
(c)
the sale or lease of the whole or any part of a building developed by the company or partnership;
(d)
any other activity that is preparatory to, connected with or incidental to any activity referred to in paragraph (a), (b) or (c).
[19/2013]
(13)  In subsection (12) —
“acquire” includes acquire by way of purchase, grant, exchange, gift, settlement or otherwise;
“develop” means to construct or cause to construct a building, including any building operations in, on, over or under the land for the purpose of erecting the building; and “development” shall be construed accordingly.
[19/2013]
Concessionary rate of tax for Asian Currency Unit, Fund Manager and securities company
43A.
—(1)  Notwithstanding section 43, the Minister may by regulations provide that tax at the rate of 10% shall be levied and paid for each year of assessment upon such income derived before 1st January 2004 as the Minister may specify of —
(a)
a financial institution with an Asian Currency Unit;
(b)
a Fund Manager;
(c)
a company holding a capital markets services licence under the Securities and Futures Act (Cap. 289) to deal in securities or that is exempted under that Act from holding such a licence,
approved by the Minister or such person as he may appoint.
[1/88; 42/2001; 37/2002; 21/2003]
[Act 34 of 2016 wef 29/12/2016]
(2)  Regulations made under subsection (1) may provide for —
(a)
exemption from tax of any income referred to in that subsection;
(b)
exemption from tax of such income as the Minister may specify of —
(i)
a bank licensed under the Banking Act (Cap. 19) or a merchant bank approved by the Monetary Authority of Singapore; and
(ii)
a company approved under subsection (1)(c),
derived by it from any approved syndicated offshore credit or guarantee facility or any other syndicated offshore credit or guarantee facility made before 1st January 2004 which satisfies the prescribed criteria;
(c)
deduction of losses, capital allowances and donations otherwise than in accordance with this Act;
(d)
circumstances in which any losses (including impairment loss recognised under FRS 39, as defined in section 34A) incurred in respect of any facility referred to in paragraph (b), and capital allowances and donations attributable to income from such facility which has been allowed as a deduction against any income chargeable to tax, may be deemed as income chargeable to tax (at such rate as may be prescribed) for a specified basis period;
(e)
adjustment of any amount deemed as income chargeable to tax referred to in paragraph (d) for the specified basis period;
(f)
circumstances in which any income from any facility referred to in paragraph (b) to be exempt from tax, may be adjusted for any basis period in which the income from such facility is derived;
(g)
circumstances in which any impairment loss, bad debt or provision for doubtful debt in respect of any facility referred to in paragraph (b), which has previously been allowed as a deduction against any income chargeable to tax and which is subsequently reversed, recovered or written back, may be deemed as income chargeable to tax (at such rate as may be prescribed) for any basis period in which the reversal is recognised or the recovery or write back occurs; and
(h)
generally for giving full effect to or for carrying out the purposes of this section.
[31/98; 32/99; 21/2003; 34/2008]
Special rate of tax for non-resident shipowner or charterer or air transport undertaking
43B.  Notwithstanding section 43, where the tax authority of a foreign country taxes the profits derived by a person resident in Singapore from carrying on the business of a shipowner or charterer or of air transport at a rate which exceeds the rate prescribed by section 43, the Minister may direct that the profits derived in Singapore from the carrying on of such business by a non-resident person who is resident in that foreign country be charged to tax at a rate similar to that charged by the tax authority of that foreign country.
[37/75]
Exemption and concessionary rate of tax for insurance and reinsurance business
43C.
—(1)  Despite section 43, the Minister may make regulations —
(a)
to provide for tax at the rate of 10% to be levied and paid for each year of assessment upon such income as the Minister may specify that is derived by an approved insurer from offshore life business within the meaning of section 26, or the business (other than the business of life assurance) of insuring and reinsuring offshore risks;
(b)
to provide for exemption from tax of such income as the Minister may specify that is derived from insurance and reinsurance business by the following:
(i)
an approved specialised insurer whose approval is granted before 1 September 2016;
(ii)
an approved captive insurer whose approval is granted before 1 April 2018;
(c)
to provide for tax at the rate specified in the first column of the following table, to be levied and paid for each year of assessment upon such income as the Minister may specify that is derived from insurance and reinsurance business by an approved insurer set out opposite that rate in the second column of the table:
Tax rate
Approved insurer
5%
An approved specialised insurer whose approval is granted between 1 September 2016 and 31 August 2019 (both dates inclusive), and who had not been approved as such at any time before the date of the approval
8%
An approved specialised insurer whose approval is granted on or after 1 September 2019, and who had not been approved as such at any time before the date of the approval
10%
(i)
An approved specialised insurer whose approval is granted on or after 1 September 2016, and who had been approved as such at any time before the date of the firstmentioned approval
(ii)
An approved captive insurer whose approval is granted on or after 1 April 2018
(d)
to provide for exemption from tax of such income as the Minister may specify that is derived by an approved insurer whose approval is granted before 1 April 2016, from marine hull and liability insurance and reinsurance business;
(e)
to provide for tax at the rate specified in the first column of the following table, to be levied and paid for each year of assessment upon such income as the Minister may specify that is derived from marine hull and liability insurance and reinsurance business by an approved insurer set out opposite that rate in the second column of the table:
Tax rate
Approved insurer
5%
An approved insurer whose approval was granted between 19 February 2011 and 31 March 2016 (both dates inclusive), and who had been approved as such at any time before the date of the firstmentioned approval
10%
An approved insurer whose approval is granted on or after 1 April 2016
(f)
to provide for the deduction (otherwise than in accordance with this Act), from the income mentioned in paragraphs (a) to (e), of allowances under section 19, 19A, 20, 21 or 22, expenses, losses and donations allowable under this Act, including deduction of these allowances, expenses, losses and donations in such manner and to such extent as the Comptroller may determine;
(g)
to provide for the period of each approval, and the conditions subject to which a specified insurer may be or may continue to be approved; and
(h)
to provide for such matters as the Minister may consider necessary or expedient for carrying out the purposes under paragraphs (a) to (g).
(2)  No approval may be granted to an insurer for the purpose of paragraph (a), (b), (c), (d) or (e) of subsection (1) on or after the date prescribed in the regulations for that paragraph.
(3)  In this section —
“approved” means approved by the Minister or such person as the Minister may appoint;
“captive insurer” has the same meaning as in section 1A of the Insurance Act (Cap. 142);
“insurer” means —
(a)
a company licensed under the Insurance Act to carry on insurance business in Singapore; or
(b)
a person (including a partnership), other than an individual, permitted under the Insurance Act to carry on insurance business in Singapore under a foreign insurer scheme;
“specialised insurer” means an insurer underwriting any of the following insurance risks (whether or not it also underwrites any other type of risk):
(a)
terrorism risks;
(b)
political risks;
(c)
energy risks;
(d)
aviation and aerospace risks;
(e)
agriculture risks;
(f)
risks arising from a natural catastrophe.
[Act 34 of 2016 wef 01/04/2016]
43D.  [Deleted by Act 34 of 2016 wef 29/12/2016]
Concessionary rate of tax for headquarters company
43E.
—(1)  Notwithstanding section 43, the Minister may by regulations provide that tax at the rate of 10% shall be levied and paid for each year of assessment upon such income as the Minister may specify of an approved headquarters company derived by it from —
(a)
the provision of such qualifying services as may be prescribed to its offices, associated companies and other persons where such offices, associated companies and persons are outside Singapore; or
(b)
such qualifying treasury, investment or financial activities as may be prescribed,
and those regulations may provide for the deduction of losses otherwise than in accordance with section 37(3).
[31/86; 20/91]
[Act 34 of 2016 wef 29/12/2016]
(1A)  This section does not apply to any income derived on or after 1 October 2015.
[Act 2 of 2016 wef 11/04/2016]
(2)  The concessionary rate of tax referred to in subsection (1) shall apply to an approved headquarters company —
(a)
in respect of any qualifying service only where the qualifying service and the office, associated company or person to whom the service is rendered have been approved in relation to that headquarters company for such concessionary rate;
(b)
in respect of any qualifying treasury, investment or financial activity only where the qualifying activity has been approved in relation to that headquarters company for such concessionary rate; and
(c)
subject to such conditions as the Minister or such person as he may appoint may impose.
[20/91]
(3)  Regulations made under subsection (1) may provide for exemption from tax of income derived by an approved headquarters company from the provision of any qualifying service if —
(a)
the qualifying service and the office, associated company or person to whom the service is rendered have been approved in relation to the approved headquarters company for the purposes of the exemption from tax; and
(b)
the approved headquarters company has global responsibility for the provision of any qualifying service.
[32/99]
(4)  In this section —
“approved” means approved by the Minister or such person as the Minister appoints;
[Act 34 of 2016 wef 29/12/2016]
“associated company”, in relation to an approved headquarters company, means a company —
(a)
the operations of which are or can be controlled, directly or indirectly, by that headquarters company;
(b)
which controls or can control, directly or indirectly, the operations of that headquarters company; or
(c)
the operations of which are or can be controlled, directly or indirectly, by a person or persons who control or can control, directly or indirectly, the operations of that headquarters company;
“headquarters company” means a company carrying on the business in Singapore of providing management, technical or other supporting services to its offices outside Singapore or to its associated companies outside Singapore.
(5)  For the purposes of subsection (4), a company shall be deemed to be an associated company in relation to an approved headquarters company if —
(a)
at least 25% of the total number of its issued shares are beneficially owned, directly or indirectly, by the approved headquarters company; or
(b)
at least 25% of the total number of the issued shares of the approved headquarters company are beneficially owned, directly or indirectly, by the first-mentioned company.
[34/2005]
43F.  [Deleted by Act 34 of 2016 wef 29/12/2016]
Concessionary rate of tax for Finance and Treasury Centre
43G.
—(1)  Notwithstanding section 43, the Minister may by regulations provide that tax at the concessionary rate specified in subsection (1A) is levied and must be paid for each year of assessment upon such income as he may specify of a company derived from —
(a)
the operation of its approved Finance and Treasury Centre in respect of such qualifying activities carried out on its own account as may be prescribed; or
(b)
such prescribed qualifying services as may be provided by its approved Finance and Treasury Centre to —
(i)
its offices and associated companies outside Singapore; or
(ii)
such of its offices and associated companies in Singapore as are approved on or after 18th February 2005,
and those regulations may provide for the deduction of losses otherwise than in accordance with section 37(3).
[20/91; 34/2005]
[Act 34 of 2016 wef 25/03/2016]
(1A)  In subsection (1), the concessionary rate is —
(a)
in the case of a Finance and Treasury Centre approved as such on or before 24 March 2016, 10%; or
(b)
in any other case, 8%.
[Act 34 of 2016 wef 25/03/2016]
(2)  The concessionary rate of tax referred to in subsection (1) shall apply to an approved Finance and Treasury Centre —
(a)
in respect of any qualifying service only where the qualifying service and the office or associated company to whom the service is rendered have been approved in relation to that Centre for such concessionary rate;
(b)
in respect of any qualifying activity only where the qualifying activity has been approved in relation to that Centre for such concessionary rate; and
(c)
subject to such conditions as the Minister or such person as he may appoint may impose.
(3)  In this section —
“approved” means approved by the Minister or such person as the Minister appoints;
[Act 34 of 2016 wef 29/12/2016]
“associated company”, in relation to a company with an approved Finance and Treasury Centre, means a company —
(a)
the operations of which are or can be controlled, directly or indirectly, by the company with the approved Centre;
(b)
which controls or can control, directly or indirectly, the operations of the company with the approved Centre; or
(c)
the operations of which are or can be controlled, directly or indirectly, by a person or persons who control or can control, directly or indirectly, the operations of the company with the approved Centre;
“Finance and Treasury Centre” means a division or department of a company which provides treasury, investment or financial services in Singapore for its offices or its associated companies.
[34/2005]
(4)  For the purposes of subsection (3), a company shall be deemed to be an associated company in relation to a company with an approved Finance and Treasury Centre if —
(a)
at least 25% of the total number of its issued shares are beneficially owned, directly or indirectly, by the company with the approved Centre; or
(b)
at least 25% of the total number of issued shares of the company with the approved Centre are beneficially owned, directly or indirectly, by the first-mentioned company.
[34/2005]
(5)  No Finance and Treasury Centre may be approved as an approved Finance and Treasury Centre under this section after 31 March 2021.
[22/2011]
[Act 34 of 2016 wef 25/03/2016]
43H.  [Deleted by Act 34 of 2016 wef 29/12/2016]
Concessionary rate of tax for offshore leasing of machinery and plant
43I.
—(1)  Notwithstanding section 43, tax at the rate of 10% shall be levied and paid for each year of assessment upon the income of a leasing company accruing in or derived from Singapore in respect of offshore leasing of any machinery or plant or such other activity as may be prescribed by regulations.
[20/91; 31/98]
[Act 34 of 2016 wef 29/12/2016]
(1A)  This section does not apply to any income accruing in or derived from Singapore on or after 1 January 2016.
[Act 2 of 2016 wef 11/04/2016]
(2)  In determining the income of a leasing company from offshore leasing —
(a)
the allowances under section 19, 19A, 20, 21, 22 or 23 shall be taken into account notwithstanding that no claim for such allowances has been made;
(b)
the allowances under section 19, 19A, 20, 21, 22 or 23 in respect of offshore finance leasing in any year of assessment after deduction against the income from such leasing shall be available as a deduction against any income from onshore finance leasing for that year of assessment, and any balance of the allowances shall not, subject to paragraph (c), be available as a deduction against any other income or be available for transfer under section 37C;
(c)
where the leasing company ceases to derive income from finance leasing in the basis period for any year of assessment, any balance of the allowances in respect of finance leasing after the deduction in paragraph (b) 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; and
(d)
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; and
(ii)
any loss may be deducted under section 37.
[1/98; 37/2002; 53/2007]
(3)  Subsection (2) shall apply, with the necessary modifications, in determining the income of a leasing company from any activity prescribed by regulations made under subsection (1) as if such income were income from offshore operating leasing.
[31/98]
(4)  [Deleted by Act 53 of 2007]
(5)  [Deleted by Act 53 of 2007]
(6)  Notwithstanding subsection (1), a leasing company may, at any time, elect that the whole of its income accruing in or derived from Singapore in respect of offshore leasing of any machinery or plant shall be taxed at the rate prescribed by section 43(1)(a).
[11/94]
(7)  An election under subsection (6) shall be made by a leasing company by notice in writing to the Comptroller and shall be irrevocable.
[11/94]
(8)  Where a leasing company has made an election under subsection (6) —
(a)
subsections (1), (2) and (3) shall not apply to the income of the leasing company for the year of assessment immediately following the year in which the election is made and for subsequent years of assessment; and
(b)
any allowance or the balance thereof in respect of finance leasing which was not deducted against the income of the leasing company for any year of assessment during which the concessionary rate prescribed by subsection (1) applies shall be available as a deduction against the income from finance leasing for the first year of assessment to which paragraph (a) applies and for any subsequent year of assessment.
[11/94; 1/98; 53/2007]
(9)  In this section —
“finance lease”, “finance leasing” and “onshore finance leasing” have the same meanings as in section 10D(3);
“leasing company” means any company carrying on a business of leasing machinery or plant;
“offshore finance leasing” means the offshore leasing of any machinery or plant under any finance lease;
“offshore leasing” means the leasing of any machinery or plant, other than those which have been treated as though they had been sold pursuant to regulations made under section 10D(1), where such machinery or plant is used outside Singapore, and the payments under the lease —
(a)
are in currencies other than Singapore dollars; and
(b)
are not deductible against any income accruing in or derived from Singapore;
“offshore operating leasing” means the offshore leasing of any machinery or plant, other than offshore finance leasing.
[1/98; 53/2007]
Concessionary rate of tax for trustee company
43J.
—(1)  Notwithstanding section 43, the Minister may by regulations provide that tax at the rate of 10% shall be levied and paid for each year of assessment upon such income as the Minister may specify of an approved trustee company derived by it from such services as may be prescribed; and those regulations may provide for exemption from tax of any such income and for the deduction of losses otherwise than in accordance with section 37(3).
[2/92]
[Act 34 of 2016 wef 29/12/2016]
(2)  In this section, “trustee company” means a company that is a licensed trust company within the meaning of the Trust Companies Act (Cap. 336), or that is exempted under that Act from holding a trust business licence within the meaning of that Act.
[7/2007]
(3)  The Minister or such person as he may appoint may approve a trustee company as an approved trustee company for the purposes of this section.
[22/2011]
(4)  Any approval under subsection (3) shall be for a period not exceeding 10 years as the Minister or the person appointed by the Minister may specify, and shall be subject to such conditions as the Minister may impose.
[22/2011]
(5)  No trustee company shall be approved under subsection (3) on or after 1st April 2016.
[22/2011]
(6)  A trustee company that is an approved trustee company immediately before 1st April 2011 shall remain as an approved trustee company until 31st March 2021, unless its approval is revoked earlier.
[22/2011]
(7)  The trustee company referred to in subsection (6) shall remain as an approved trustee company subject to such conditions as the Minister may impose.
[22/2011]
43K.  [Deleted by Act 34 of 2016 wef 29/12/2016]
43L.  [Repealed by Act 7 of 2007]
43M.  [Repealed by Act 21 of 2003]
Concessionary rate of tax for income derived from debt securities
43N.
—(1)  Notwithstanding section 43, the Minister may by regulations provide that tax at the rate of 10% shall be levied and paid for each year of assessment upon —
(a)
interest derived by any company from any qualifying debt securities;
(aa)
discount derived by any company from —
(i)
any 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)
any 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]
(ab)
any amount payable to any company from any Islamic debt securities which are qualifying debt securities, and issued during the period from 1st January 2005 to 31st December 2018 (both dates inclusive);
[Act 37 of 2014 wef 27/11/2014]
(ac)
any prepayment fee, redemption premium or break cost derived by any company from qualifying debt securities issued during the period from 15th February 2007 to 31st December 2018 (both dates inclusive);
[Act 37 of 2014 wef 27/11/2014]
(ad)
such other income derived by any company that is directly attributable to qualifying debt securities issued on or after a prescribed date, as may be prescribed by regulations;
(b)
income derived by any financial institution from trading in any debt securities during the period from 28th February 1998 to 31st December 2003 (both dates inclusive); and
[Act 37 of 2014 wef 27/11/2014]
(c)
income derived by any financial institution during the period commencing from the first day of its basis period for the year of assessment 2001 to 31st December 2003 (both dates inclusive) from —
(i)
providing services as an intermediary in connection with any transaction involving interest rate or currency swaps; and
(ii)
trading in interest rate or currency swaps.
[31/98; 24/2000; 21/2003; 49/2004; 34/2005; 7/2007; 53/2007; 34/2008; 19/2013]
[Act 37 of 2014 wef 27/11/2014]
[Act 34 of 2016 wef 29/12/2016]
(2)  Subsection (1)(a), (aa), (ab), (ac) or (ad), as the case may be, shall not, unless otherwise approved by the Minister or such person as he may appoint, apply to —
(a)
any interest derived from any qualifying debt securities issued during the period from 10th May 1999 to 31st December 2018 (both dates inclusive);
[Act 37 of 2014 wef 27/11/2014]
(b)
any discount from —
(i)
any 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)
any 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]
(c)
any amount payable from any Islamic debt securities which are qualifying debt securities, and issued during the period from 1st January 2005 to 31st December 2018;
(d)
any prepayment fee, redemption premium or 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]
(e)
such other income directly attributable to qualifying debt securities issued on or after a prescribed date, as may be prescribed by regulations,
where 50% or more of those securities which are outstanding at any time during the life of the issue is beneficially held or funded, directly or indirectly, by related parties of the issuer of those securities and where such income is derived by —
(A)
any company which is a related party of the issuer of those securities; or
(B)
any company where the funds used by such company to acquire those securities are obtained, directly or indirectly, from any related party of the issuer of those securities.
[49/2004; 34/2005; 7/2007; 53/2007; 34/2008; 19/2013]
[Act 37 of 2014 wef 27/11/2014]
(2A)  Subsection (1) shall not apply to income from qualifying debt securities derived by a financial sector incentive (standard tier) company.
[29/2010]
(3)  Regulations made under subsection (1) may provide for exemption from tax of —
(a)
income derived before 1st January 2004 by any financial institution from arranging, underwriting or distributing any qualifying debt securities; and
(b)
income derived by a primary dealer from trading in any Singapore Government securities during the period from 27th February 1999 to 31st December 2018 (both dates inclusive),
[Act 37 of 2014 wef 27/11/2014]
and for deduction of losses otherwise than in accordance with section 37(3).
[32/99; 21/2003; 34/2008; 19/2013]
(3A)  A primary dealer referred to in subsection (3)(b) may elect in accordance with subsection (3B) not to be subject to the regulations made under subsection (1); and if the primary dealer so elects, the regulations shall cease to apply to the income of that primary dealer for the year of assessment for which the election is made and for subsequent years of assessment.
[Act 37 of 2014 wef 27/11/2014]
(3B)  The election referred to in subsection (3A) shall be made by the primary dealer by notice in writing to the Comptroller —
(a)
at the time of lodgment of the return of income for a year of assessment; or
(b)
at such further time as the Comptroller may allow.
[Act 37 of 2014 wef 27/11/2014]
(3C)  The election made by a primary dealer under subsection (3A) shall be irrevocable.
[Act 37 of 2014 wef 27/11/2014]
(4)  In this section —
“break cost”, “financial institution”, “prepayment fee”, “qualifying debt securities”, “redemption premium” and “related party” have the same meanings as in section 13(16);
“debt securities” means bonds, notes, commercial papers, treasury bills, certificates of deposits, and AT1 instruments within the meaning of section 10O(2);
[Act 37 of 2014 wef Y/A 2015 and sub Ys/A]
“financial sector incentive (standard tier) company” means a financial sector incentive company within the meaning of section 43Q(3), being one that has been approved by the Minister or such person as he may appoint as a financial sector incentive (standard tier) company;
“Islamic debt securities” means debt securities and trust certificates —
(a)
which are endorsed by any Shari’ah council or body, or by any committee formed for the purpose of providing guidance on compliance with Shari’ah law; and
(b)
the amounts payable from such securities and trust certificates are periodic and supported by a regular stream of receipts from underlying assets;
“primary dealer” means any financial institution specified in the First Schedule to the Government Securities Regulations (Cap. 121A, Rg 1);
“Singapore Government securities” means debt securities issued under the Government Securities Act (Cap. 121A), the Local Treasury Bills Act (Cap. 167) or any other written law, and shall be deemed to include any issue of bills and notes by the Monetary Authority of Singapore that are approved by the Minister for the purposes of this Act;
“trust certificates” means certificates evidencing beneficial ownership in underlying assets.
[31/98; 32/99; 34/2005; 53/2007; 29/2010; 22/2011]
(5)  Subsections (1)(a), (aa), (ab), (ac) and (ad) and (2) and regulations made thereunder shall apply to a body of persons for the year of assessment 2010 and subsequent years of assessment.
[27/2009]
43O.  [Repealed by Act 19 of 2013]
Concessionary rate of tax for global trading company and qualifying company
43P.
—(1)  Notwithstanding section 43, the Minister may by regulations provide that tax at the rate of 5% or 10% shall be levied and paid for each year of assessment upon —
(a)
such income as the Minister may specify of an approved global trading company —
(i)
that is derived by it from such prescribed qualifying transactions in such prescribed commodities as the Minister or a person appointed by him may specify to the company; or
(ii)
that is derived by it in the basis period for the year of assessment 2012 or a subsequent year of assessment, from prescribed qualifying transactions in any derivative instrument; and
(b)
such income as the Minister may specify of an approved qualifying company derived by it on or after 21st May 2010 from the carrying on of such qualifying structured commodity financing activities, treasury activities or advisory services in relation to mergers and acquisitions as may be prescribed,
[Act 34 of 2016 wef 25/03/2016]
and those regulations may provide for the deduction of losses otherwise than in accordance with section 37(3).
[29/2010; 22/2011]
(1A)  No approval shall be granted under this section after 31st March 2021.
[22/2011]
(2)  The concessionary rate of tax referred to in subsection (1) shall apply to an approved global trading company or an approved qualifying company subject to such conditions as the Minister or such person as he may appoint may impose.
[21/2003; 29/2010]
(3)  In this section —
“approved” means approved by the Minister or such person as the Minister appoints;
[Act 34 of 2016 wef 29/12/2016]
“global trading company” means a company carrying on the business of international trading of commodities or commodities futures;
“qualifying company” means —
(a)
an approved global trading company; or
(b)
a company which is a wholly-owned subsidiary of a global trading company,
which carries on any qualifying structured commodity financing activities, treasury activities or advisory services in relation to mergers and acquisitions prescribed under subsection (1).
[29/2010]
[Act 34 of 2016 wef 25/03/2016]
Concessionary rate of tax for financial sector incentive company
43Q.
—(1)  Notwithstanding section 43, the Minister may by regulations provide that tax at the rate of 5%, 10% or 12% shall be levied and paid for each year of assessment upon such income as the Minister may specify, derived on or after 1st January 2004 by a financial sector incentive company from such qualifying activities as may be prescribed, and those regulations may provide for the deduction of losses otherwise than in accordance with section 37(3).
[21/2003; 29/2010]
(2)  The concessionary rate of tax referred to in subsection (1) shall apply to a financial sector incentive company subject to such conditions as the Minister or such person as he may appoint may impose.
[21/2003]
(2A)  Regulations under subsection (1) may make transitional provisions to apply the rate of tax of 12% to —
(a)
any company which holds membership of any class or description of a futures market, or of a clearing house for the futures market, maintained by the Singapore Exchange Limited or any of its subsidiaries; and
[Act 34 of 2016 wef 29/12/2016]
(b)
a member of the corporation known as the Singapore Commodity Exchange Ltd,
[Act 34 of 2016 wef 29/12/2016]
which has given notice within a specified period to the Monetary Authority of Singapore for the purposes of the application of these transitional provisions, in respect of its income derived on or after 1st January 2011 but on or before 31st December 2013 from specified qualifying activities.
[29/2010]
(3)  In this section, “financial sector incentive company” means a company carrying on such qualifying activities as may be prescribed and is approved by the Minister or such person as he may appoint.
[21/2003]
Concessionary rate of tax for provision of processing services to financial institutions
43R.
—(1)  Notwithstanding section 43, the Minister may by regulations provide that tax at the rate of 5% shall be levied and paid for each year of assessment upon such income as the Minister may specify of an approved company derived by it on or after 27th February 2004 from the provision of prescribed processing services in Singapore to any financial institution or another approved company; and those regulations may provide for the deduction of losses of an approved company otherwise than in accordance with section 37(3).
[49/2004]
(2)  The concessionary rate of tax referred to in subsection (1) shall apply to an approved company subject to such conditions as the Minister or such person as he may appoint may impose.
[49/2004]
(3)  No approval under this section shall be granted to any company on or after 27th February 2009.
[49/2004]
(4)  In this section, “financial institution” means —
(a)
any institution in Singapore that is licensed or approved by the Monetary Authority of Singapore, or exempted from such licensing or approval, under any written law administered by the Monetary Authority of Singapore; or
(b)
any institution outside Singapore that is licensed or approved, or exempted from such licensing or approval, by its financial supervisory authority for the carrying on of financial activities.
[49/2004]
(5)  In this section, “approved company” means a company approved by the Minister, or such person as the Minister may appoint, for the purposes of this section.
[Act 34 of 2016 wef 29/12/2016]
43S.  [Deleted by Act 34 of 2016 wef 29/12/2016]
43T.  [Deleted by Act 34 of 2016 wef 29/12/2016]
Concessionary rate of tax for income derived from organising or staging tourism event
43U.
—(1)  Notwithstanding section 43, tax at the rate of 10% shall be levied and paid for each year of assessment upon such income as the Minister may specify of an approved company incorporated or registered in Singapore derived by it on or after 1st April 2005 from organising or staging an approved tourism event, subject to such conditions as the Minister or such person as he may appoint may impose.
[34/2005]
(2)  No approval shall be granted under this section after 31st March 2010.
[34/2005]
(3)  In this section, “approved” means approved by the Minister or such person as he may appoint.
[34/2005]
43V.  [Deleted by Act 34 of 2016 wef 29/12/2016]
Concessionary rate of tax for shipping investment manager
43W.
—(1)  Notwithstanding section 43, the Minister may by regulations provide that tax at the rate of 10% shall be levied and paid for each year of assessment upon such income as the Minister may specify of an approved shipping investment manager derived by it on or after 1st March 2006 from —
(a)
managing an approved shipping investment enterprise; or
(b)
such other services or activities carried out for an approved shipping investment enterprise as may be prescribed.
[7/2007]
(2)  Regulations made under subsection (1) may provide for the deduction of losses otherwise than in accordance with section 37(3).
[7/2007]
(3)  The concessionary rate of tax referred to in subsection (1) shall apply to an approved shipping investment manager subject to such conditions as the Minister or such person as he may appoint may impose.
[7/2007]
(4)  Approval of a shipping investment manager under this section may be granted between 1st March 2006 and 28th February 2011 (both dates inclusive).
[7/2007; 29/2010]
[Act 37 of 2014 wef 27/11/2014]
(4A)  Approval of a shipping investment manager under this section may be granted between 1st March 2011 and 31st May 2021 (both dates inclusive) for such period not exceeding 5 years as the Minister may specify, except that the Minister may extend the period so specified for such further periods as he thinks fit.
[29/2010; 22/2011]
[Act 37 of 2014 wef 27/11/2014]
[Act 2 of 2016 wef 11/04/2016]
(5)  In this section —
“approved” means approved by the Minister or such person as he may appoint;
“shipping investment enterprise” has the same meaning as in section 13S;
“shipping investment manager” means any company incorporated in Singapore.
[7/2007]
Concessionary rate of tax for trust income to which beneficiary is entitled
43X.
—(1)  Where any beneficiary of a trust who is resident in Singapore is entitled to any share of the statutory income of the trust, that share shall, if it would have been subject to a concessionary rate of tax under any provision of this Part had it been derived or received directly by the beneficiary rather than the trustee of the trust, be subject to the same concessionary rate of tax.
[7/2007]
(2)  This section shall not apply to —
(a)
any income of a real estate investment trust within the meaning of section 43(10);
(b)
any income of a designated unit trust within the meaning of section 35(14);
[Act 37 of 2014 wef 01/09/2014]
(c)
[Deleted by Act 37 of 2014 wef 01/09/2014]
(d)
any income of a trust fund prescribed under section 13C;
(e)
any income of a foreign trust specified under section 13G;
(f)
any income of a locally administered trust prescribed under section 13Q;
(g)
any income of a trust the trustee of which is a prescribed person under section 13CA; or
(h)
any income of an approved trust fund referred to in the definition of “approved person” under section 13X(5), or of a trust fund that is a feeder fund or master fund approved under section 13X.
[7/2007; 2/2011]
Concessionary rate of tax for leasing of aircraft and aircraft engines
43Y.
—(1)  Notwithstanding section 43, tax at the rate of 5% or 10% as the Minister (or such person as the Minister may appoint) may specify, shall be levied and paid for each year of assessment upon the income of an approved aircraft leasing company accruing in or derived from Singapore in respect of leasing of any aircraft or aircraft engine or such other activity as may be prescribed by regulations.
[53/2007]
(2)  The concessionary rate of tax referred to in subsection (1) shall apply to an approved aircraft leasing company subject to such conditions as the Minister or such person as he may appoint may impose.
[53/2007]
(3)  Tax at the concessionary rate of the income of an approved aircraft leasing company under subsection (1) shall be for a period not exceeding 5 years, except that the Minister or such person as he may appoint may extend that period for a further period or periods, each of which shall not exceed 5 years.
[53/2007]
(4)  Approval may be granted under this section between 1st March 2007 and 31st March 2017 (both dates inclusive).
[53/2007; 29/2012]
[Act 37 of 2014 wef 27/11/2014]
(5)  In determining the income of an approved aircraft leasing company from the leasing of any aircraft or aircraft engine —
(a)
the allowances under section 19, 19A, 20, 21, 22 or 23 shall be taken into account notwithstanding that no claim for such allowances has been made;
(b)
the allowances under section 19, 19A, 20, 21, 22 or 23 in respect of finance leasing in any year of assessment shall be deducted against the income from such leasing for that year of assessment, and any balance of the allowances shall not, subject to paragraph (c), be available as a deduction against any other income or be available for transfer under section 37C;
(c)
where the approved aircraft leasing company ceases to derive income from finance leasing in the basis period for any year of assessment, any balance of the allowances in respect of finance leasing after the deduction against the income from such leasing 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; and
(d)
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; and
(ii)
any loss may be deducted under section 37.
[53/2007]
(6)  Subsection (5) shall apply, with the necessary modifications, in determining the income of an approved aircraft leasing company from any activity prescribed by regulations made under subsection (1) as if such income were income from operating leasing.
[53/2007]
(7)  In this section —
“aircraft leasing company” means a company incorporated and resident in Singapore or a registered business trust, carrying on a business of leasing aircraft or aircraft engines;
“approved” means approved by the Minister or such person as he may appoint;
“finance leasing”, in relation to any aircraft or aircraft engine, means a lease of the aircraft or aircraft engine (including any arrangement or agreement in connection with the lease) which has the effect of transferring substantially the obsolescence, risks or rewards incidental to ownership of such aircraft or aircraft engine to the lessee;
“leasing of any aircraft or aircraft engine” means the leasing of any aircraft or aircraft engine, other than one which has been treated as though it had been sold pursuant to regulations made under section 10D(1);
“operating leasing”, in relation to any aircraft or aircraft engine, means the leasing of the aircraft or aircraft engine, other than finance leasing.
[53/2007]
Concessionary rate of tax for aircraft investment manager
43Z.
—(1)  Notwithstanding section 43, the Minister may by regulations provide that tax at the rate of 10% shall be levied and paid for each year of assessment upon such income as the Minister may specify of an approved aircraft investment manager derived by it on or after 1st March 2007 from —
(a)
managing an approved aircraft leasing company; or
(b)
such other services or activities carried out for an approved aircraft leasing company as may be prescribed by regulations.
[53/2007]
(2)  Regulations made under subsection (1) may provide for the deduction of losses otherwise than in accordance with section 37(3).
[53/2007]
(3)  The concessionary rate of tax referred to in subsection (1) shall apply to an approved aircraft investment manager subject to such conditions as the Minister or such person as he may appoint may impose.
[53/2007]
(4)  Approval may be granted under this section between 1st March 2007 and 31st March 2017 (both dates inclusive).
[53/2007; 29/2012]
[Act 37 of 2014 wef 27/11/2014]
(5)  In this section —
“aircraft investment manager” means any company incorporated in Singapore;
“aircraft leasing company” has the same meaning as in section 43Y;
“approved” means approved by the Minister or such person as he may appoint.
[53/2007]
Concessionary rate of tax for container investment enterprise
43ZA.
—(1)  Notwithstanding section 43 but subject to subsection (5), tax at the rate of 5% or 10% as the Minister (or such person as the Minister may appoint) may specify, shall be levied and paid for each year of assessment upon the income of an approved container investment enterprise accruing in or derived from Singapore from —
(a)
the leasing of any container owned by the enterprise acquired before or during the period of approval of the enterprise referred to in subsection (4) and used for the international transportation of goods;
(b)
foreign exchange and risk management activities which are carried out in connection with and incidental to the leasing referred to in paragraph (a);
(c)
for the year of assessment 2013 and subsequent years of assessment, the leasing of any intermodal equipment owned by the enterprise acquired before or during the period of approval of the enterprise referred to in subsection (4), which is incidental to the leasing referred to in paragraph (a); and
(d)
for the year of assessment 2013 and subsequent years of assessment, foreign exchange and risk management activities which are carried out in connection with and incidental to the leasing referred to in paragraph (c).
[34/2008; 29/2012]
(2)  Subsection (1) shall continue to apply to a container investment enterprise the approval of which has expired or been withdrawn, but which continues to derive income of the type referred to in subsection (1) in relation to a container or an intermodal equipment acquired before or during the period of approval of the enterprise, provided that the enterprise has by the date of the expiry or before the withdrawal of its approval fulfilled all the conditions referred to in subsection (4), and any reference in this section to an approved container investment enterprise shall be construed accordingly.
[34/2008; 29/2012]
(3)  The Minister or such person as he may appoint may, at any time between 1st April 2008 and 31st May 2021 (both dates inclusive), approve a container investment enterprise for the purposes of subsection (1).
[34/2008; 29/2010; 22/2011]
[Act 37 of 2014 wef 27/11/2014]
[Act 2 of 2016 wef 11/04/2016]
(4)  The approval under subsection (3) shall be subject to such conditions as the Minister may specify, and shall —
(a)
where the approval is granted during the period between 1st April 2008 and 28th February 2011 (both dates inclusive), be for such period not exceeding 10 years, as the Minister may specify; and
[Act 37 of 2014 wef 27/11/2014]
(b)
where the approval is granted during the period between 1st March 2011 and 31st May 2021 (both dates inclusive), be for such period not exceeding 5 years, as the Minister may specify,
[Act 37 of 2014 wef 27/11/2014]
[Act 2 of 2016 wef 11/04/2016]
except that the Minister may extend the period so specified for such further periods as he thinks fit.
[29/2010; 22/2011]
(5)  The Minister or such person as he may appoint may, in respect of any container, class of containers, intermodal equipment or class of intermodal equipment, specify a period not exceeding a period of 15 years, during which the income from the leasing of such container, class of containers, intermodal equipment or class of intermodal equipment is subject to the applicable concessionary tax rate under subsection (1).
[29/2012]
(6)  In determining the income of an approved container investment enterprise from the leasing of any container or intermodal equipment —
(a)
the allowances under section 19, 19A, 20, 21, 22 or 23 (other than allowances made to the lessee under regulations made under section 10D) shall be taken into account notwithstanding that no claim for such allowances has been made;
[Act 2 of 2016 wef 24/02/2015]
(b)
the allowances under section 19, 19A, 20, 21, 22 or 23 (other than allowances made to the lessee under regulations made under section 10D) in respect of finance leasing in any year of assessment shall be deducted against the income from such leasing for that year of assessment, and any balance of the allowances shall not, subject to paragraph (c), be available as a deduction against any other income or be available for transfer under section 37C;
[Act 2 of 2016 wef 24/02/2015]
(c)
where the approved container investment enterprise ceases to derive income from finance leasing in the basis period for any year of assessment, any balance of the allowances in respect of finance leasing after the deduction against the income from such leasing 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; and
(d)
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; and
(ii)
any loss may be deducted under section 37.
[34/2008; 29/2012]
(7)  In this section —
“approved” means approved by the Minister or such person as he may appoint;
“container” means a sea-container used for the international transportation of goods and that adheres to the standards defined by the Institute of International Container Lessors or the International Organization for Standardization for such sea‑container, or (for the year of assessment 2013 and subsequent years of assessment) by any of those organisations or any other equivalent organisation for such sea-container;
“container investment enterprise” means —
(a)
a company incorporated and resident in Singapore; or
(b)
a registered business trust;
“finance leasing”, in relation to any container or intermodal equipment, means a lease of the container or intermodal equipment (including any arrangement or agreement in connection with the lease) which has the effect of transferring substantially the obsolescence, risks or rewards incidental to ownership of such container or intermodal equipment to the lessee;
“intermodal equipment” means any trailer, flatcar, car rack or other equipment, which facilitates the transportation of containers from one mode of transport to another;
“registered business trust” has the same meaning as in the Business Trusts Act (Cap. 31A).
[34/2008; 29/2012]
(8)  [Deleted by Act 2 of 2016 wef 24/02/2015]
Concessionary rate of tax for container investment manager
43ZB.
—(1)  Notwithstanding section 43, the Minister may by regulations provide that tax at the rate of 10% shall be levied and paid for each year of assessment upon such income as the Minister may specify of an approved container investment manager derived by it on or after 1st April 2008 from —
(a)
managing an approved container investment enterprise; or
(b)
such other services or activities carried out for an approved container investment enterprise as may be prescribed.
[34/2008]
(2)  Regulations made under subsection (1) may provide for the deduction of losses otherwise than in accordance with section 37(3).
[34/2008]
(3)  The concessionary rate of tax referred to in subsection (1) shall apply to an approved container investment manager subject to such conditions as the Minister or such person as he may appoint may impose.
[34/2008]
(4)  Approval of a container investment manager under this section may be granted between 1st April 2008 and 28th February 2011 (both dates inclusive).
[34/2008; 29/2010]
[Act 37 of 2014 wef 27/11/2014]
(4A)  Approval of a container investment manager under this section may be granted between 1st March 2011 and 31st May 2021 (both dates inclusive) for such period not exceeding 5 years as the Minister may specify, except that the Minister may extend the period so specified for such further periods as he thinks fit.
[29/2010; 22/2011]
[Act 37 of 2014 wef 27/11/2014]
[Act 2 of 2016 wef 11/04/2016]
(5)  In this section —
“approved” means approved by the Minister or such person as he may appoint;
“container investment enterprise” has the same meaning as in section 43ZA;
“container investment manager” means any company incorporated in Singapore.
[34/2008]
Concessionary rate of tax for approved insurance brokers
43ZC.
—(1)  Notwithstanding section 43, the Minister may by regulations provide that tax at the rate of 5% or 10% shall be levied and paid for each year of assessment upon such income of an approved insurance broker as the Minister may specify that is derived by it on or after a prescribed date from the provision of such direct insurance broking, reinsurance broking or advisory services relating to the insurance sector as may be prescribed.
[19/2013]
(2)  Regulations made under subsection (1) may provide for the deduction of losses otherwise than in accordance with section 37(3).
[34/2008]
(3)  The concessionary rate of tax referred to in subsection (1) shall apply to an approved insurance broker subject to such conditions as the Minister or such person as he may appoint may impose.
[34/2008]
(4)  Approval may be granted under this section between 1st April 2008 and 31st March 2018 (both dates inclusive).
[34/2008; 19/2013]
[Act 37 of 2014 wef 27/11/2014]
(5)  In this section —
“approved insurance broker” means a company that is a direct insurance broker, general reinsurance broker or life reinsurance broker approved by the Minister or such person as he may appoint;
“direct insurance broker”, “general reinsurance broker” and “life reinsurance broker” have the same meanings as in section 1A of the Insurance Act (Cap. 142).
[34/2008]
Concessionary rate of tax for income derived from managing qualifying registered business trust or company
43ZD.
—(1)  Notwithstanding section 43, the Minister may by regulations provide that tax at the rate of 10% shall be levied and paid for each year of assessment upon such income as the Minister may specify derived on or after 1st April 2008 —
(a)
by an approved trustee-manager of a qualifying registered business trust from providing services in such capacity in respect of such infrastructure asset or project situated outside Singapore as may be prescribed by regulations (referred to in this section as prescribed offshore infrastructure asset or project); and
(b)
by an approved fund management company from —
(i)
managing a qualifying company in respect of any prescribed offshore infrastructure asset or project; or
(ii)
arranging, on behalf of a qualifying company, any loan of designated securities under a securities lending arrangement in writing to another qualifying company.
[34/2008; 27/2009]
(2)  Regulations made under subsection (1) may provide for the deduction of losses otherwise than in accordance with section 37(3).
[34/2008]
(3)  The concessionary rate of tax referred to in subsection (1) shall apply to an approved trustee-manager or fund management company subject to such conditions as the Minister or such person as he may appoint may impose.
[34/2008]
(4)  Approval may be granted under this section between 1st April 2008 and 31st March 2017 (both dates inclusive).
[34/2008; 22/2011]
[Act 37 of 2014 wef 27/11/2014]
(5)  In this section —
“approved” means approved by the Minister or such person as he may appoint;
“designated securities” means —
(a)
stocks, shares, bonds or other securities, denominated in any foreign currency, issued by a company which is neither incorporated in Singapore nor resident in Singapore; or
(b)
bonds denominated in any foreign currency issued by any foreign government;
“fund management company” means any company incorporated in Singapore;
“qualifying company”, in relation to an approved fund management company, means any company incorporated in Singapore which —
(a)
is listed or to be listed on any exchange in Singapore within one year from the date the approved fund management company is so approved; and
(b)
owns any offshore infrastructure asset or any asset used in an offshore infrastructure project, or debt securities or shares of any company that owns any offshore infrastructure asset or any asset used in an offshore infrastructure project;
“qualifying registered business trust”, in relation to an approved trustee-manager, means any registered business trust which —
(a)
is listed or to be listed on any exchange in Singapore within one year from the date the approved trustee‑manager is so approved; and
(b)
owns any offshore infrastructure asset or any asset used in an offshore infrastructure project, or debt securities or shares of any company that owns any offshore infrastructure asset or any asset used in an offshore infrastructure project;
“registered business trust” and “trustee-manager” have the same meanings as in the Business Trusts Act (Cap. 31A).
[34/2008]
Concessionary rate of tax for ship broking and forward freight agreement trading
43ZE.
—(1)  Notwithstanding section 43, tax at the rate of 10% shall be levied and paid for each year of assessment upon such amount of —
(a)
fees or commissions derived in the period between 1st April 2010 and 31st May 2011 (both dates inclusive) by an approved company from ship broking; and
(b)
gains derived in the period between 1st April 2010 and 31st May 2011 (both dates inclusive) by an approved company from forward freight agreement trading,
which in the aggregate are in excess of the base amount.
[29/2010; 22/2011]
(2)  Approval may be granted under this section between 1st April 2010 and 31st May 2011 (both dates inclusive) to a company for a period of 5 years, subject to such conditions as the Minister may impose.
[29/2010; 22/2011]
[Act 37 of 2014 wef 27/11/2014]
(3)  The base amount referred to in subsection (1) is —
(a)
where the approved company had carried out the ship broking or forward freight agreement trading or both (referred to in this paragraph as such activity) in Singapore at any time during the period of 3 years immediately preceding the date on which approval is granted under this section, the amount ascertained by dividing the net profit before tax as shown in the audited accounts of the approved company that is derived from carrying out such activity during that period by the actual number of months in that period in which such activity was carried out and multiplying by 12;
(b)
where the approved company had not carried out the ship broking or forward freight agreement trading in Singapore, at any time during the period of 3 years immediately preceding the date on which approval is granted under this section, zero; or
(c)
such amount as the Minister may specify in substitution for the amount referred to in paragraph (a) or (b).
[29/2010]
(4)  In determining the income of an approved company from the carrying out of ship broking or forward freight agreement trading or both in Singapore —
(a)
the allowances under section 19, 19A, 20, 21, 22 or 23 shall be taken into account notwithstanding that no claim for such allowances has been made; and
(b)
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; and
(ii)
any loss may be deducted under section 37.
[29/2010]
(5)  In this section —
“approved company” means a company which —
(a)
is incorporated and resident in Singapore;
(b)
carries on the business of ship broking or forward freight agreement trading or both in Singapore; and
(c)
is approved by the Minister, or such person as he may appoint, for the purpose of this section;
“forward freight agreement trading” means the undertaking of a position under a forward freight agreement trade where such trade is in connection with shipping freight rates;
“ship broking” means —
(a)
the broking of sale and purchase of vessels (including the activity of valuing the vessels);
(b)
the matching of vessel owners (which intend to build new vessels) to shipyards based on the vessel owners’ requirements;
(c)
the matching of vessels to —
(i)
cargoes; or
(ii)
vessel owners and vessel charterers;
(d)
the valuation of vessels; or
(e)
the matching of forward freight agreement traders where the forward freight agreement trade is in connection with shipping freight rates,
and includes the provision of research, consultancy or advisory services using information derived from the business of carrying on any of the activities referred to in paragraphs (a) to (e), where the total sum of the fees (referred to in this definition as the said sum) derived by the approved company from the research, consultancy and advisory services in the basis period for the year of assessment concerned is not more than 20% of the sum of —
(A)
the total fees and commissions derived by the approved company from all of the activities referred to in paragraphs (a) to (e) in the basis period for that year of assessment; and
(B)
the said sum,
unless the Minister otherwise allows.
[29/2010]
Concessionary rate of tax for shipping-related support services
43ZF.
—(1)  Despite section 43, tax at the rate of 10% is to be levied and paid for each year of assessment upon the amount of income in subsection (1A) of an approved company derived on or after the service approval date and during the period of its approval under subsection (2) (but not any extended period of its approval under subsection (5A)), from providing in or from Singapore any shipping‑related support service approved for it under subsection (2A).
[Act 2 of 2016 wef 24/02/2015]
(1A)  In subsection (1), the amount of the income is that which exceeds the base amount calculated in accordance with subsection (4).
[Act 2 of 2016 wef 24/02/2015]
(2)  Approval may be granted under this section between 1st June 2011 and 31st May 2021 (both dates inclusive) to a company for a period of 5 years; and may be given subject to such conditions as the Minister may impose.
[22/2011]
[Act 37 of 2014 wef 27/11/2014]
[Act 2 of 2016 wef 11/04/2016]
(2A)  The Minister or appointed person must approve for the company one or more shipping‑related support services for the purposes of subsection (1) at the time of granting the approval, and may approve for the company additional shipping‑related support services during the period it is approved.
[Act 2 of 2016 wef 24/02/2015]
(3)  A company that is deemed an approved company on 1st June 2011 by virtue of regulations made under subsection (7), shall be deemed to have been approved for such period not exceeding 10 years from that date as the Minister may specify in the regulations.
[22/2011]
(4)  The base amount referred to in subsection (1A) shall be calculated in accordance with the following provisions:
(a)
where the approved company had provided one or more of the shipping-related support services approved for it at any time during the period of 3 years immediately before the date of its approval, the base amount shall be ascertained by dividing the aggregate net profit before tax as shown in its audited accounts (or such other accounts as the Minister or appointed person may approve for the company) that is derived from providing all of those services during that period by the actual number of months (a period of less than a month being reckoned as one month) during that period in which those services were provided and multiplying by 12;
[Act 2 of 2016 wef 24/02/2015]
(b)
where the company had not provided any of the shipping‑related support services approved for it at any time during the period of 3 years immediately before the date of its approval, the base amount shall be zero; or
(c)
such amount as the Minister may specify in substitution for the amount referred to in paragraph (a) or (b).
[22/2011]
[Act 2 of 2016 wef 24/02/2015]
(5)  The base amount determined in accordance with subsection (4) shall apply to the approved company for the entire duration of the period of its approval (but not the extended period of its approval under subsection (5A)), unless the Minister otherwise decides.
[22/2011]
[Act 2 of 2016 wef 24/02/2015]
(5A)  The Minister or appointed person may extend the period of any approval under subsection (2) for further periods of 5 years at any one time, and the extension is subject to the company satisfying such conditions as the Minister or appointed person has imposed on it at the time of granting the extension.
[Act 2 of 2016 wef 24/02/2015]
(5B)  The Minister or appointed person must approve for the company one or more shipping‑related support services for the purposes of subsection (5C) at the time of granting the extension, and may approve for the company additional shipping‑related support services during the extended period of its approval.
[Act 2 of 2016 wef 24/02/2015]
(5C)  Despite section 43, tax at the rate of 10% is levied and must be paid for each year of assessment upon the amount of income in subsection (5D) of an approved company derived on or after the service approval date and during the extended period of its approval under subsection (5A), from providing in or from Singapore any shipping‑related support service approved for it under subsection (5B).
[Act 2 of 2016 wef 24/02/2015]
(5D)  In subsection (5C), the amount of the income is that which exceeds the base amount calculated in accordance with subsection (5I).
[Act 2 of 2016 wef 24/02/2015]
(5E)  The approved company may, in lieu of subsection (5C), elect for the amount referred to in subsection (5F) of its income derived on or after the service approval date and during the extended period of its approval under subsection (5A), from providing in or from Singapore any shipping‑related support service approved for it under subsection (5B), to be taxed at a rate of 10.5%.
[Act 2 of 2016 wef 24/02/2015]
(5F)  In subsection (5E), the amount of the income is that which exceeds the base amount referred to in subsection (4).
[Act 2 of 2016 wef 24/02/2015]
(5G)  An election under subsection (5E) must be made in such form and manner and within such reasonable time as the Minister or appointed person may allow, and must be accompanied by such particulars as the Minister or appointed person determines.
[Act 2 of 2016 wef 24/02/2015]
(5H)  An election under subsection (5E) is irrevocable.
[Act 2 of 2016 wef 24/02/2015]
(5I)  The base amount referred to in subsection (5D) is determined as follows:
(a)
where the approved company had provided one or more of the shipping‑related support services approved for it under subsection (5B) at any time during the period of 3 years immediately before the date the extension is granted under subsection (5A), the base amount is ascertained by the following formula:
where A
is the total net profit before tax as shown in the company’s audited accounts (or such other accounts as the Minister or appointed person may approve for the company) that is derived from providing all of those services during that period of 3 years; and
B
is the actual number of months (a period of less than a month being reckoned as one month) during that period in which those services were provided;
(b)
where the company had not provided any of the shipping‑related support services approved for it under subsection (5B) at any time during the period referred to in paragraph (a), the base amount is zero;
(c)
the Minister may in a particular case specify an amount in substitution for the amount referred to in paragraph (a) or (b).
[Act 2 of 2016 wef 24/02/2015]
(5J)  The base amount determined in accordance with subsection (5I) applies to the approved company for the entire duration of the extended period of its approval under subsection (5A), unless the Minister otherwise decides.
[Act 2 of 2016 wef 24/02/2015]
(6)  In determining the income of an approved company from the provision of shipping-related support services approved for it —
(a)
the allowances under section 19, 19A, 20, 21, 22 or 23 shall be taken into account notwithstanding that no claim for such allowances has been made; and
(b)
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; and
(ii)
any loss may be deducted under section 37.
[22/2011]
(7)  For the purposes of this section, the Minister may make regulations —
(a)
to deem a company which, immediately before 1st June 2011, was —
(i)
a development and expansion company within the meaning of section 19I of the Economic Expansion Incentives (Relief from Income Tax) Act (Cap. 86) engaged in ship management services, ship agency, logistics or freight forwarding, being activities prescribed as qualifying activities within the meaning of that section, and which, in the case of a company engaged in logistics or freight forwarding, is a company —
(A)
whose operations are or can be controlled, directly or indirectly, by another company, being one that owns or operates ships;
(B)
which controls or can control, directly or indirectly, the operations of such other company; or
(C)
whose operations are or can be controlled, directly or indirectly, by a person or persons who control or can control, directly or indirectly, the operations of such other company; or
(ii)
an approved company under section 43ZE,
as an approved company for the purpose of this section from that date;
(b)
to provide for such transitional, supplementary and consequential matters as he may consider necessary or expedient in relation to a company referred to in paragraph (a), including providing a different base amount for the purposes of subsection (1); and
(c)
generally to give effect to or to carry out the purposes of this section.
[22/2011]
(8)  In this section —
“approved” means approved by the Minister or such person as he may appoint;
“approved company” means a company which —
(a)
is incorporated and resident in Singapore;
(b)
carries on the business of providing shipping-related support services; and
(c)
is approved for the purpose of this section;
“approved related company”, in relation to an approved company, means a related company approved at any time for the approved company for the purpose of the definition of “corporate service”;
“container” has the same meaning as in section 43ZA(7);
“corporate service” means any of the following services provided by an approved company to an approved related company:
(a)
sourcing, procurement and distribution of materials and components, products or services for use in the business of the approved related company (such as marketing control, planning and brand management);
(b)
training of crew and staff;
(c)
crew management (such as recruitment and selection of qualified and trained seafarers, budgeting and strategic planning in relation to crew requirements, overseeing crew welfare, managing relations with labour unions, handling insurance matters relating to crew, and maintaining personnel data to facilitate searches, planning and analysis);
(d)
business planning, development and co-ordination (including the performance of economic or investment research and analysis) of information and processes to improve standards of services or products;
(e)
research and development (including test bedding) carried out on behalf of the approved related company;
(f)
general management and administration (such as intellectual property management, risk management, internal audit, budgeting and forecasting);
(g)
technical support services (such as marine and offshore engineering technical support, accounting and tax consultancy services and actuary services);
(h)
human resource services;
(i)
financial and treasury services (such as providing credit administration and control, arranging credit facilities, managing funds, and providing guarantees, performance bonds, standby letters of credit and services relating to remittances, arranging interest and currency swaps);
(j)
legal services;
(k)
corporate finance advisory services;
(l)
information technology services,
and only services provided to an approved related company of that company shall be treated as “corporate service” in determining if the approved company has provided shipping‑related support service which is corporate service for the purposes of subsections (4) and (5I);
[Act 2 of 2016 wef 24/02/2015]
“finance leasing” has the same meaning as in section 13S(20) or 43ZA(7);
“forward freight agreement trading” means the undertaking of a position under a forward freight agreement trade where such trade is in connection with shipping freight rates;
“freight forwarding and logistics service” means managing a customer’s freight, supply chain or logistics process flow;
“prescribed ship management services” has the same meaning as in section 13A(16);
[Act 2 of 2016 wef 24/02/2015]
“related company”, in relation to an approved company, means a company that is carrying on a shipping-related business and —
(a)
whose operations are or can be controlled, directly or indirectly, by the approved company;
(b)
which controls or can control, directly or indirectly, the operations of the approved company; or
(c)
whose operations are or can be controlled, directly or indirectly, by a person or persons who control or can control, directly or indirectly, the operations of the approved company;
“service approval date”, in relation to any shipping-related support service approved for an approved company under subsection (2A) or (5B), means the date the service is approved for that company under that subsection or, in the case of corporate service to be provided by the company to its approved related company, the date the related company is approved as such;
[Act 2 of 2016 wef 24/02/2015]
“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]
“ship agency” means the activities performed on behalf of a shipping enterprise in relation to their vessels, masters and crews, cargoes and customers;
“ship broking” means —
(a)
the broking of sale and purchase of vessels (including the activity of valuing the vessels);
(b)
the matching of vessel owners (which intend to build new vessels) to shipyards based on the vessel owners’ requirements;
(c)
the matching of vessels to —
(i)
cargoes; or
(ii)
vessel owners and vessel charterers;
(d)
the valuation of vessels; or
(e)
the matching of forward freight agreement traders where the forward freight agreement trade is in connection with shipping freight rates,
and includes the services referred to in subsection (9);
[Deleted by Act 2 of 2016 wef 24/02/2015]
“shipping-related business” means any of the following:
(a)
carriage of passengers, mail, livestock or goods by any ship;
(b)
charter or finance leasing of any ship to any person;
(c)
use of any ship as a dredger, seismic ship or ship used for offshore oil and gas activity;
[Act 2 of 2016 wef 11/04/2016]
(d)
use of any ship for towing or salvage operations;
(e)
leasing (including finance leasing) of any container used for the international transportation of goods;
(f)
managing an entity which is in the business of carrying on the charter or leasing (including finance leasing) of containers used for the international transportation of goods, or ships;
(g)
ship broking;
(h)
forward freight agreement trading;
(i)
ship agency;
(j)
prescribed ship management services;
[Act 2 of 2016 wef 24/02/2015]
(k)
freight and logistics services in respect of a ship;
(l)
marine insurance;
(m)
offshore and marine engineering (including ship repair and conversion, ship building and offshore engineering);
(n)
maritime law and arbitration;
(o)
shipping finance;
(p)
maritime research and development;
(q)
use of any ship for offshore renewable energy activity or offshore mineral activity;
[Act 34 of 2016 wef 25/03/2016]
“shipping-related support service” means any of the following:
(a)
ship broking;
(b)
forward freight agreement trading;
(c)
prescribed ship management services;
[Act 2 of 2016 wef 24/02/2015]
(d)
ship agency;
(e)
freight forwarding and logistics service;
(f)
corporate service.
[22/2011]
(9)  In this section, “ship broking” includes —
(a)
for the purpose of subsections (1), (2A), (5B) and (5C), the provision of research, consultancy or advisory services using information derived from the business of carrying on any of the activities referred to in paragraphs (a) to (e) of the definition of “ship broking” in subsection (8), where the total sum of the fees derived by the approved company from the research, consultancy and advisory services in the basis period for the year of assessment concerned (referred to in this paragraph as the said sum) is not more than 20% of the sum of —
(i)
the total fees and commissions derived by the approved company from all of those other activities in the basis period for that year of assessment; and
(ii)
the said sum,
or where the Minister otherwise allows such services to be considered “ship broking”; and
[Act 2 of 2016 wef 24/02/2015]
(b)
for the purpose of subsections (4) and (5I), the provision, within any financial year or part thereof of the approved company that falls within the period of 3 years immediately before the date of its approval, of research, consultancy or advisory services using information derived from the business of carrying on any of the activities referred to in paragraphs (a) to (e) of the definition of “ship broking” in subsection (8), where the total sum of the fees derived by the approved company from the research, consultancy and advisory services in that financial year or part thereof (referred to in this paragraph as the said sum) is not more than 20% of the sum of —
(i)
the total fees and commissions derived by the approved company from all of those other activities in that financial year or part thereof; and
(ii)
the said sum,
or where the Minister otherwise allows such services to be considered “ship broking”.
[22/2011]
[Act 2 of 2016 wef 24/02/2015]
(10)  For the purposes of the definition of “related company” in subsection (8), a company (referred to as the first company) is deemed to be a related company of another company if —
(a)
at least 25% of the total number of its issued shares are beneficially owned, directly or indirectly, by the other company;
(b)
at least 25% of the total number of the issued shares of the other company are beneficially owned, directly or indirectly, by the first company; or
(c)
at least 25% of the total number of issued shares in each of the 2 companies are beneficially owned, directly or indirectly, by a third company.
[22/2011]
Concessionary rate of tax for income derived from managing approved venture company
43ZG.
—(1)  Despite section 43, tax at the rate of 5% is to be levied and paid for each year of assessment upon the management fees and performance bonus derived by an approved fund management company on or after 1 April 2015 from managing approved investments of an approved venture company under section 13H.
(2)  The Minister or such person as the Minister may appoint may approve a fund management company for the purposes of subsection (1) at any time between 1 April 2015 and 31 March 2020 (both dates inclusive).
(3)  The Minister or appointed person may, when granting the approval, impose such conditions on the fund management company as the Minister or appointed person considers appropriate.
(4)  The approval under subsection (2) is for a period specified by the Minister or appointed person which must not exceed 10 years, except that the Minister or appointed person may extend the period for further periods not exceeding 5 years at any one time.
(5)  The total period of approval of a fund management company, including —
(a)
every extension under subsection (4); and
(b)
if the fund management company had been a pioneer service company in respect of the activity of managing investments for an approved venture company under section 13H, its tax relief period for that qualifying activity,
must not in total exceed 15 years.
(6)  In determining the amount of income subject to the concessionary rate of tax under subsection (1) —
(a)
the allowances under section 19, 19A, 20, 21, 22 or 23 must be taken into account even if no claim for such allowances has been made; and
(b)
the Comptroller must determine the manner and extent to which —
(i)
allowances under section 19, 19A, 20, 21, 22 or 23 and any expenses and donations allowable under this Act are to be deducted; and
(ii)
any loss may be deducted under section 37.
(7)  In this section —
“fund management company” means a company incorporated in Singapore that is a fund manager;
“investments” has the same meaning as in section 13H(18);
“pioneer service company” has the same meaning as in section 16 of the Economic Expansion Incentives (Relief from Income Tax) Act (Cap. 86).
[Act 34 of 2016 wef 19/04/2016]
[Deleted by Act 34 of 2016 wef 19/04/2016]
(8)  In subsection (5)(b), the tax relief period of a fund management company for the activity mentioned in that provision is —
(a)
the company’s tax relief period under section 18 of the Economic Expansion Incentives (Relief from Income Tax) Act, in force immediately before 19 April 2016; or
(b)
the period treated as the company’s tax relief period for that activity under section 37(3)(c) of the Economic Expansion Incentives (Relief from Income Tax) (Amendment) Act 2016 (Act 11 of 2016),
as the case may be.
[Act 34 of 2016 wef 19/04/2016]
Concessionary rate of tax for international growth company
43ZH.
—(1)  Despite section 43, the Minister may by regulations provide that tax at the rate of 10% is to be levied and paid upon the income derived by an approved international growth company from carrying on all of its qualifying activities within a basis period, or a part of a basis period, that falls within its approval period, which in total exceeds the base amount referred to in subsection (6).
(2)  Subsection (1) does not apply to income from any of the activities mentioned in that subsection that is carried on on a date that falls outside of that activity’s concessionary period.
(3)  The Minister or such person as the Minister may appoint may, at any time between 1 April 2015 and 31 March 2020 (both dates inclusive), approve a company as an international growth company for a period not exceeding 5 years; and the approval may be given subject to such conditions as the Minister or appointed person may impose.
(4)  When granting the approval, the Minister or appointed person must specify for the international growth company —
(a)
the date of its approval and its approval period;
(b)
one or more qualifying activities; and
(c)
a concessionary period for each of those activities.
(5)  The Minister or appointed person may at any time during the period the international growth company remains approved specify for it —
(a)
one or more additional qualifying activities; and
(b)
a concessionary period for each of those activities.
(6)  The base amount referred to in subsection (1) is ascertained in accordance with the following provisions:
(a)
where the approved international growth company had, at any time during the period of 3 years immediately before the date of its approval, carried on one or more of the qualifying activities specified for it under subsection (4), the base amount is ascertained by the formula:
where A
is the total net profit before tax as shown in its audited accounts (or such other accounts as the Minister or appointed person may approve for the company) that is derived from carrying on the qualifying activity or activities during that period; and
B
is the actual number of months (a period of less than a month being reckoned as one month) during that period in which the qualifying activity or activities was or were carried out;
(b)
where the approved international growth company had not carried on any of those qualifying activities during the period of 3 years immediately before the date of its approval, the base amount is zero;
(c)
the Minister or appointed person may specify an amount in substitution for the amount referred to in paragraph (a) or (b).
(7)  The base amount determined in accordance with subsection (6) applies for the entire duration of the company’s approval period, unless the Minister or appointed person decides otherwise.
(8)  In determining the income of an approved international growth company from carrying on its qualifying activities —
(a)
the allowances under section 16, 17, 18, 18B, 18C, 19, 19A, 20, 21, 22 or 23 must be taken into account even though no claim for such allowances has been made; and
(b)
the Comptroller must determine the manner and extent to which —
(i)
allowances under section 16, 17, 18, 18B, 18C, 19, 19A, 20, 21, 22 or 23 and any expenses and donations allowable under this Act are to be deducted; and
(ii)
any loss may be deducted under section 37.
(9)  In this section —
“approval period”, in relation to an approved international growth company, means the period of its approval as such a company under subsection (3);
“concessionary period”, in relation to a qualifying activity of an approved international growth company, means the concessionary period specified for that activity under subsection (4) or (5);
“international growth company” means a company incorporated and resident in Singapore which carries on, or which intends to carry on, a trade or business which involves —
(a)
the export of goods to a country outside Singapore;
(b)
the performance of services in a country outside Singapore; or
(c)
the performance of services for a person or permanent establishment outside Singapore,
whether or not it also carries on or intends to carry on any other trade or business;
“qualifying activity”, in relation to an approved international growth company, means an activity specified for the company under subsection (4) or (5), being one of the activities prescribed for the purposes of this section in regulations made under this section.
[Act 2 of 2016 wef 01/04/2015]