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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

FOURTH SCHEDULE Name of bond, securities, stock or fund

FIFTH SCHEDULE Child relief

SIXTH SCHEDULE Number of years of working life of asset

SEVENTH SCHEDULE Advance rulings

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

Legislative History

Comparative Table

Comparative Table

 
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On 30/09/2014, you requested the version in force on 30/09/2014 incorporating all amendments published on or before 30/09/2014. The closest version currently available is that of 31/03/2014.
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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 20% on every dollar of the chargeable income thereof; and
(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) and (ii);
(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; or
(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 (iv);
(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) and (iv) during the period from 18th February 2005 to 31st March 2015 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]
(3C)  [Deleted by Act 19 of 2013]
(4)  Notwithstanding anything in this Act but subject to subsection (5) and sections 13(1)(r) 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]
(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]
(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]