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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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Exemption of tax on gains or profits from equity remuneration incentive scheme (SMEs)
13J.
—(1)  Where a qualifying employee derives any gains or profits in any year of assessment, after the expiry of the minimum holding period, from any stock option granted during the period from 1st June 2000 to 31st December 2013 (both dates inclusive), or any right or benefit under any share acquisition scheme (other than a stock option scheme) granted during the period from 1st January 2002 to 31st December 2013 (both dates inclusive), to acquire shares in any qualifying company or in its holding company, there shall, subject to this section, be exempt from tax 50% of an amount of such gains or profits as determined under subsection (2).
[37/2002; 34/2008; 19/2013]
(2)  The amount of gains or profits referred to in subsection (1) is —
(a)
where the price to be paid for the shares under the right or benefit is equal to or exceeds the market value or, if it is not possible to determine such value, the net asset value of the shares at the time of the grant of the right or benefit, the amount as determined under section 10(6); or
(b)
where the price to be paid for the shares under the right or benefit is at a discount to the market value or, if it is not possible to determine such value, the net asset value of the shares at the time of the grant of the right or benefit, the amount as determined under section 10(6) less the amount of the discount.
(3)  The exemption under this section shall not apply to any amount of gains or profits to which section 10(6) applies —
(a)
to the extent that the amount, when aggregated with the amount of such gains or profits previously derived by him and which qualifies for exemption under this section, exceeds $10 million;
(b)
which is derived by him on or after 1st January of the 10th year following the year in which he first derived such gains or profits which qualified for exemption under this section; or
(c)
which is derived by him for the release of his right or benefit to acquire shares in any qualifying company or in its holding company by reason of his resignation or termination of his employment with the qualifying company due to his misconduct.
(4)  The exemption under this section shall apply to gains or profits derived by an employee from any right or benefit to acquire shares in a holding company of the company in which he is employed only if the following conditions are satisfied:
(a)
both the company and the holding company are incorporated in Singapore;
(b)
the holding company grants the right or benefit to acquire its shares to its employees or the employees of companies within its group of companies; and
(c)
at the time of the grant by the holding company of the right or benefit to acquire its shares —
(i)
both the company and the holding company are carrying on business in Singapore;
(ii)
the market value of the gross assets of the company does not exceed $100 million;
(iii)
the market value of the gross assets of the holding company and companies within its group of companies does not exceed in the aggregate $100 million; and
(iv)
the company in which the employee is employed has not granted any right or benefit to any of its employees to acquire its shares.
(5)  The Minister may make regulations to provide generally for giving full effect to or for carrying out the purposes of this section.
(6)  For the purposes of this section and section 13L, where a company grants —
(a)
any stock option during the period from 1st April 2001 to 31st December 2013 (both dates inclusive); or
(b)
any right or benefit under any share acquisition scheme (other than a stock option scheme) during the period from 1st January 2002 to 31st December 2013 (both dates inclusive),
to acquire shares under a tranche of the share acquisition scheme and any gains or profits derived by a qualifying employee from any right or benefit granted under that tranche qualifies for tax exemption under this section as well as section 13L, the company shall opt for the tax exemption under this section or section 13L to apply in respect of the gains or profits relating to that tranche but not under both sections.
[37/2002; 19/2013]
(7)  Where a company has opted under subsection (6) for tax exemption under this section to apply to the gains or profits in respect of a tranche of a share acquisition scheme, tax exemption under section 13L —
(a)
shall, subject to paragraph (b), not be available in respect of any right or benefit to acquire shares granted by the company under any tranche subsequent to that tranche under the share acquisition scheme; and
(b)
shall be available in respect of any right or benefit to acquire shares granted subsequent to the option by the company under any tranche under the share acquisition scheme only where the conditions for tax exemption under this section are not satisfied in respect of any such subsequent tranche granted.
(8)  Where a company has opted under subsection (6) for tax exemption under section 13L to apply to the gains or profits in respect of a tranche of a share acquisition scheme, tax exemption under this section shall not be available in respect of any right or benefit to acquire shares granted by the company under any tranche subsequent to that tranche under the share acquisition scheme.
(9)  Any option by a company under subsection (6) shall be irrevocable.
(9A)  Notwithstanding anything in this section, the exemption under this section shall not apply to any gains or profits derived by a qualifying employee on or after 1st January 2024.
[19/2013]
(10)  In this section, unless the context otherwise requires —
“holding company” has the same meaning as in section 5 of the Companies Act (Cap. 50);
“minimum holding period”  —
(a)
in relation to a right or benefit to acquire shares in a qualifying company or holding company under any stock option scheme, means the period prescribed by the Singapore Exchange during which no option may be exercised under a stock option scheme implemented by any company listed on that Exchange, which would have been applicable to the stock option granted by the qualifying company or holding company, as the case may be, if it were a company listed on that Exchange;
(b)
in relation to a right or benefit to acquire shares in a qualifying company or holding company under any share acquisition scheme (other than a stock option scheme), means —
(i)
a period of at least one year after the grant of the right or benefit, during which the shares so acquired may not be sold, if the price to be paid for the shares under the right or benefit is at a discount to the market value or, if it is not possible to determine such value, the net asset value of the shares at the time of the grant of the right or benefit; or
(ii)
a period of at least 6 months after the grant of the right or benefit, during which the shares so acquired may not be sold, if the price to be paid for the shares under the right or benefit is equal to or exceeds the market value or, if it is not possible to determine such value, the net asset value of the shares at the time of the grant of the right or benefit;
“qualifying company” means a company incorporated in Singapore which at the time of the grant to its employees of any right or benefit to acquire its shares —
(a)
carries on business in Singapore; and
(b)
has gross assets the market value of which does not exceed $100 million;
“qualifying employee” means an employee (other than any non‑executive director) of a company who, at the time of the grant to him of any right or benefit to acquire the shares of the company or the shares of its holding company, as the case may be —
(a)
is committed to work —
(i)
where the time of the grant is before 1st January 2010 —
(A)
at least 30 hours per week for the company; or
(B)
where he is committed to work less than that number of hours, at least 75% of his total working time per week for the company; and
(ii)
where the time of the grant is on or after 1st January 2010 —
(A)
at least the number of hours per week referred to in section 66A(1) of the Employment Act (Cap. 91) for the company; or
(B)
where he is committed to work less than that number of hours, at least 75% of his total working time per week for the company; and
(b)
does not beneficially own, directly or indirectly, voting shares that confer the right to exercise or control the exercise of not less than 25% of the voting power in the company which grants the right or benefit to acquire its shares;
“share acquisition scheme” means a scheme which imposes a minimum holding period requirement and allows an employee of a company to own or purchase shares in a qualifying company or that of its holding company, including stock options, share awards and other similar forms of employee share purchase plans but excluding phantom shares rights, share appreciation rights and any other similar rights;
“shares” includes stocks but does not include redeemable or convertible shares or shares of a preferential nature;
“total working time”, in relation to a qualifying employee, means the total period of time spent by him as an employee for all his employers plus, if applicable, the total period of time, which shall be deemed to be 10 hours per week, spent by him on remunerative work as a self-employed person.
History for Provision '13J Exemption of tax on gains or profits from equity remuneration incentive scheme (SMEs)'.
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pr13J-.
31/12/2001
Formal Consolidation
31 December 2001
2001 RevEd
 
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31/12/2001
Formal Consolidation
31 December 2001
2001 RevEd
 
Compare versionsDiff

01/01/2002
Informal Consolidation
15 August 1986
Amended
Act 42 of 2001

01/01/2002
Informal Consolidation
15 August 1986
Amended
Act 37 of 2002

01/01/2002
Informal Consolidation
15 August 1986
Amended
Act 42 of 2001

01/01/2002
Informal Consolidation
15 August 1986
Amended
Act 37 of 2002

03/05/2002
Informal Consolidation
10 December 2002
Amended
Act 37 of 2002

01/10/2002
Informal Consolidation
10 September 2002
Amended
Act 25 of 2002

10/12/2002
Informal Consolidation
10 December 2002
Amended
Act 37 of 2002

01/01/2003
Informal Consolidation
10 December 2002
Amended
Act 37 of 2002

01/01/2003
Informal Consolidation
10 December 2002
Amended
Act 37 of 2002

01/01/2003
Informal Consolidation
10 December 2002
Amended
Act 37 of 2002

01/01/2003
Informal Consolidation
10 December 2002
Amended
Act 37 of 2002

01/01/2004
Formal Consolidation
01 January 2004
2004 RevEd
 

01/01/2004
Formal Consolidation
01 January 2004
2004 RevEd
 

01/01/2004
Formal Consolidation
01 January 2004
2004 RevEd
 
Compare versionsDiff

01/01/2004
Formal Consolidation
01 January 2004
2004 RevEd
 
Compare versionsDiff

01/01/2006
Informal Consolidation
15 November 2005
Amended
S 715/2005

01/01/2006
Informal Consolidation
15 November 2005
Amended
Act 22 of 2011

01/01/2006
Informal Consolidation
15 November 2005
Amended
S 715/2005

01/01/2006
Informal Consolidation
15 November 2005
Amended
Act 22 of 2011

01/11/2006
Informal Consolidation
31 March 2006
Amended
S 194/2006

01/01/2007
Informal Consolidation
06 December 2007
Amended
Act 53 of 2007

01/01/2008
Formal Consolidation
01 January 2008
2008 RevEd
 
Compare versionsDiff

16/02/2008
Informal Consolidation
16 December 2008
Amended
Act 34 of 2008

01/01/2010
Informal Consolidation
26 November 2010
Amended
Act 29 of 2010

09/02/2010
Informal Consolidation
22 January 2010
Amended
Act 24 of 2009

01/04/2011
Informal Consolidation
01 April 2011
Amended
Act 22 of 2011

01/06/2011
Informal Consolidation
18 December 2012
Amended
Act 29 of 2012

01/01/2012
Informal Consolidation
20 December 2011
Amended
Act 22 of 2011

28/11/2013
Informal Consolidation
28 November 2013
Amended
Act 19 of 2013

31/03/2014
Formal Consolidation
31 March 2014
2014 RevEd
 
Compare versionsDiff

27/11/2014
Informal Consolidation
27 November 2014
Amended
Act 37 of 2014

01/01/2015
Informal Consolidation
01 January 2015
Amended
Act 37 of 2014

01/07/2015
Informal Consolidation
27 November 2014
Amended
Act 37 of 2014