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Contents

Long Title

Part I PRELIMINARY

Part II ADMINISTRATION

Part III IMPOSITION OF INCOME TAX

Part IV EXEMPTION FROM INCOME TAX

Part V DEDUCTIONS AGAINST INCOME

Part VI CAPITAL ALLOWANCES

Part VII ASCERTAINMENT OF CERTAIN INCOME

Part VIII ASCERTAINMENT OF STATUTORY INCOME

Part IX ASCERTAINMENT OF ASSESSABLE INCOME

Part X ASCERTAINMENT OF CHARGEABLE INCOME AND PERSONAL RELIEFS

Part XI RATES OF TAX

Part XII DEDUCTION OF TAX AT SOURCE

Part XIII ALLOWANCES FOR TAX CHARGED

Part XIV RELIEF AGAINST DOUBLE TAXATION

Part XV PERSONS CHARGEABLE

Husband and wife

Trustees, agents and curators

Part XVI RETURNS

Part XVII ASSESSMENTS AND OBJECTIONS

Part XVIII APPEALS

Part XIX COLLECTION, RECOVERY AND REPAYMENT OF TAX

Part XX OFFENCES AND PENALTIES

Part XXI MISCELLANEOUS

FIRST SCHEDULE Institution, Authority, Person or Fund Exempted

SECOND SCHEDULE Rates of Tax

THIRD SCHEDULE Repealed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

Legislative History

Comparative Table

Comparative Table

 
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Print   Link to In-Force Version
On 05/03/2015, you requested the version as published on or before 05/03/2015.
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Deduction of tax from dividends of companies
44.
—(1)  Every company resident in Singapore which —
(a)
has paid dividend to any shareholder before 1st January 2003;
(b)
has paid dividend to any shareholder at any time during the period from 1st January 2003 to 31st March 2003, and before paying the dividend, has not exercised an option under subsection (10); or
(c)
at any time during the period from 1st April 2003 to 31st December 2007 —
(i)
has paid dividend to any shareholder;
(ii)
has a 44A balance of the company remaining on the day before the date of payment of the dividend after taking into account the tax assessed to be added to the 44A balance under section 44A(5); and
(iii)
before paying the dividend, has not exercised an option under subsection (10),
shall be entitled to deduct from the amount of dividend paid, tax at the relevant rate on every dollar of such dividend.
[37/2002; 21/2003]
(2)  Every company shall upon payment of a dividend from which tax has been deducted or is deductible, furnish each shareholder with a certificate setting forth the amount of the dividend paid to that shareholder and the amount of tax which the company has deducted or is entitled to deduct in respect of that dividend; and where a dividend is deemed to have been received by a shareholder under section 10J(4)(b), such certificate shall also specify that the dividend is in respect of a share buyback through a special trading counter.
[24/2000; 21/2003]
(3)  The Minister may, if he is satisfied that it is expedient in the public interest to do so, authorise the Comptroller to pay a company to which subsection (1) applies in respect of such classes of its shareholders as the Minister may designate, a sum equal to the amount of tax which the designated company would be entitled to deduct under subsection (1) from dividends to be paid to the designated shareholders so as to enable the designated company to pay the dividends to those shareholders as if no tax had been deducted under that subsection.
[32/95; 21/2003]
(4)  Upon payment of a dividend by a company in any year of assessment before the year of assessment 2003 under subsection (1)(a) —
(a)
where such dividend is the first dividend paid in that year of assessment and where the amount of tax deducted under subsection (1)(a) exceeds the aggregate of the balance, if any, on 1st January of that year of assessment and any tax assessed during the period from 1st January of that year of assessment to the day before the date of payment of the dividend; or
(b)
where such dividend is the second or subsequent dividend paid in that year of assessment and where the amount of tax deducted under subsection (1)(a) exceeds the aggregate of the balance, if any, after the preceding dividend and any tax assessed during the period from the date of the payment of the preceding dividend to the day before the date of payment of the second or subsequent dividend,
a charge equal to the amount of such excess shall be paid to the Comptroller within 14 days from the date of payment of the dividend, and any amount of tax which remains unpaid on that date shall, notwithstanding section 85, be paid immediately to the Comptroller.
[1/88; 37/2002]
(5)  Where upon the payment of any dividend under subsection (1)(a) the aggregate of the balance, if any, after the date of payment of the preceding dividend and any tax assessed during the period from that date to the day before the date of payment of the first-mentioned dividend exceeds the tax deducted under subsection (1)(a) from the first-mentioned dividend, the excess shall be carried forward as a balance to be set-off against the tax deducted from any ensuing dividend paid on or before 31st December 2002.
[1/88; 37/2002]
(6)  Upon payment of a dividend by a company during the period 1st January 2003 to 31st December 2007 from which tax has been deducted, whether the company is entitled to make the deduction or otherwise, the amount of tax deducted shall be deducted from the 44A balance of the company remaining on the day before the date of payment of the dividend, and in the event where the amount to be so deducted exceeds the said balance, a charge equal to the amount of such excess shall be paid to the Comptroller within 14 days from the date of payment of the dividend, and any amount of tax which remains unpaid on that date shall, notwithstanding section 85, be paid immediately to the Comptroller.
[37/2002]
(7)  Upon the payment of any dividend referred to in subsection (1)(b) or (c), the 44A balance of the company, after deducting the tax deducted from the dividend, if any, remaining on the date of payment of the dividend, shall be carried forward as a balance to be set-off against the tax deducted from any ensuing dividend paid on or before 31st December 2007 so long as the company has not exercised an irrevocable option under subsection (10).
[37/2002; 21/2003]
(8)  For the purpose of subsection (6), where a dividend is paid by a company which has not been subjected to the provisions of section 44 in force immediately before 1st January 2003, or which has exercised an option under subsection (10) before payment of the dividend, the 44A balance of the company remaining on the day before the date of payment of the dividend shall be deemed to be nil.
[37/2002; 21/2003]
(9)  Subject to subsection (11), every company resident in Singapore which —
(a)
whether has or has not, during the period from 1st January 2003 to 31st March 2003; or
(b)
has, during the period from 1st April 2003 to 31st December 2007,
a 44A balance and has paid dividend at any time during those periods shall deduct tax from the dividend as provided under subsection (1) unless otherwise provided in this Act or unless the company has exercised an irrevocable option under subsection (10).
[37/2002]
(10)  Any company to which subsection (9) applies may exercise an irrevocable option in writing not to deduct tax under subsection (1) and where such an option is made, the company shall not be entitled to deduct tax under subsection (1) upon the exercise of the option.
[37/2002; 21/2003]
(11)  Notwithstanding the exercise of an irrevocable option under subsection (10) by a company, section 44A shall continue to apply to the company.
[37/2002]
(12)  Where at any date during the period from 1st April 2003 to 31st December 2007 a company which is resident in Singapore has not exercised an option under subsection (10), and the 44A balance of the company is reduced to nil, the company shall not be entitled to deduct tax from dividends under subsection (1) so long as the balance remains as nil on or after that date.
[37/2002]
(13)  Where no charge is payable by a company under subsection (4) or (6) but the amount of tax deducted by the company under subsection (1) exceeds —
(a)
the aggregate amount as computed under subsection (4)(a) or (b) less any amount of tax assessed on the company but not paid; or
(b)
the amount as computed under subsection (6) less any amount of tax assessed on the company which formed part of the 44A balance of the company but not paid,
as the case may be, a sum equal to such excess shall be paid by the company to the Comptroller immediately on the date of payment of the dividend.
[37/2002]
(14)  On the payment of any dividend from which tax has been deducted or is deductible, every company shall render to the Comptroller a statement, in such form as the Comptroller may direct, containing such particulars as may be required for the purpose of determining the balance, the 44A balance or charge immediately after the payment of the dividend.
[1/88; 37/2002; 21/2003]
(15)  Without prejudice to subsection (14), within 3 months from the end of each year of assessment before the year of assessment 2008 or such longer period as the Comptroller may allow, every such company shall render to the Comptroller a statement, in such form as the Comptroller may direct, containing such particulars as may be required for the purpose of determining the balance or the 44A balance to be carried forward to the first day of the ensuing year of assessment.
[1/88; 3/89; 32/95; 37/2002]
(16)  Where any company has been convicted of an offence for failing to comply with subsection (15), the Comptroller may, by notice in writing, require the company to render to him, within such reasonable time as may be specified in the notice, the statement referred to in that subsection.
[28/92]
(17)  Any charge or additional charge paid by a company to the Comptroller under subsection (4) shall be used to set-off any tax assessed on it subsequent to the charge or additional charge but before 1st January 2008 and the amount of such tax to be taken into account for computing the charge or balance under subsection (4) or (5) shall be reduced by the amount of the set-off.
[1/88; 37/2002]
(18)  Any charge or additional charge paid by a company to the Comptroller under subsection (6) shall only be used to set-off any tax assessed on the estimated chargeable income for the year of assessment 2003 referred to in section 44A(5).
[37/2002]
(19)  If any charge or additional charge referred to in subsection (4) or (6) or section 44A(8) is not paid to the Comptroller within the period prescribed for the payment of the charge, section 87 shall have effect in relation to the charge or additional charge, and the provisions of this Act relating to the collection and recovery of tax shall apply to the collection and recovery of the charge or additional charge and penalties imposed thereon.
[37/2002]
(20)  For the purposes of this section —
(a)
subject to paragraph (b), where any dividend (other than any dividend paid by virtue of subsection (3)) has been paid under subsection (1) without deduction of tax, such dividend or part thereof, from which a company was entitled to deduct tax, shall be deemed to be a dividend of such a gross amount as after deduction of tax at the relevant rate applicable at the date of payment would be equal to the net amount paid; and a sum equal to the difference between such gross amount and the net amount paid shall be deemed to have been deducted from such dividend or part thereof as tax;
(b)
where any dividend has been paid and any amount of the charge referred to in subsection (4) or (6) or any amount of tax payable referred to in subsection (4), (6) or (13) is not paid within 14 days from the date of payment of that dividend or by 31st December of the year in which the dividend is paid, whichever is the later, the dividend shall be chargeable to tax on the basis of the net amount received by the shareholder;
(c)
in relation to any company, the balance on 1st January of any year of assessment before the year of assessment 2003 shall be the aggregate of —
(i)
the balance carried forward after the payment of the last dividend in the preceding year of assessment as computed in accordance with subsection (5); and
(ii)
any tax assessed during the period from the date of the payment of that dividend to the end of the preceding year of assessment;
(d)
in determining under subsection (4), (6) or (13) the amount of tax assessed and not paid, any payment made to the Comptroller shall be applied first to the payment of any penalties before the payment of tax;
(e)
tax assessed excludes —
(i)
tax assessed at the rate of 10% or such other rate as may be prescribed under section 43(9); and
(ii)
tax assessed at the rate of 10% or such other concessionary rate as may be prescribed under section 13H, 43A, 43C, 43D, 43E, 43F, 43G, 43H, 43I, 43J, 43K, 43L (repealed), 43N, 43O or 43P, or section 19B of the Economic Expansion Incentives (Relief from Income Tax) Act (Cap. 86) in force immediately before the date of commencement of the Economic Expansion Incentives (Relief from Income Tax) (Amendment) Act 2004 (Act 11 of 2004) or section 19J of the Economic Expansion Incentives (Relief from Income Tax) Act;
(f)
any balance or tax assessed which has been taken into account for the purpose of determining the charge or balance under subsection (4), (5), (6) or (7) upon the payment of any dividend shall be regarded as having been utilised for that purpose notwithstanding that no set-off has been allowed in respect of that dividend under section 46(3); and
(g)
relevant rate of tax —
(i)
in relation to a dividend paid from 1st January 2004 to 31st December 2006, is 20%; and
(ii)
in relation to a dividend paid from 1st January 2007 to 31st December 2007, is 18%.
[1/88; 28/92; 26/93; 32/95; 1/98; 31/98; 32/99; 24/2000; 24/2001; 37/2002; 21/2003; 11/2004; 49/2004; 7/2007; 53/2007]