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On 02/08/2014, you requested the version as published on or before 02/08/2014.
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Foreign trust to which Regulations apply
2A.
—(1)  Subject to paragraph (2), a trust shall be regarded as a foreign trust for the purposes of these Regulations if —
(a)
it is a trust created in writing and every settlor and every beneficiary thereof are —
(i)
individuals who are neither citizens of Singapore nor resident in Singapore;
(ii)
foreign companies;
(iii)
persons (other than those mentioned in sub-paragraphs (i) and (ii)) who are neither resident in Singapore nor constituted or registered under any written law in Singapore;
(iv)
trustees of other trusts which are regarded as foreign trusts for the purposes of these Regulations; or
(v)
trustees of philanthropic purpose trusts where ––
(A)
if they are settlors of the trust referred to in sub-paragraph (a), funds and assets from the foreign accounts of the philanthropic purpose trusts are injected into that trust; or
(B)
if they are beneficiaries of the trust referred to in sub-paragraph (a), distributions from that trust accrue to the foreign accounts of the philanthropic purpose trusts; or
(b)
it is a unit trust and the whole value of the unit trust fund is beneficially held, directly or indirectly, by —
(i)
individuals who are neither citizens of Singapore nor resident in Singapore;
(ii)
foreign companies; or
(iii)
persons (other than those mentioned in sub-paragraphs (i) and (ii)) who are neither resident in Singapore nor constituted or registered under any written laws in Singapore;
(iv)
trustees of other trusts which are regarded as foreign trusts for the purposes of these Regulations; or
(v)
trustees of philanthropic purpose trusts where the distributions from the unit trust accrue to the foreign accounts of those philanthropic purpose trusts.
(2)  For the purpose of paragraph (1)(a), a trust shall continue to be regarded as a foreign trust notwithstanding that any settlor or beneficiary of the trust who is an individual subsequently becomes a citizen of Singapore or resident in Singapore, if the following conditions are satisfied:
(a)
in the case of a settlor who subsequently becomes a citizen of Singapore or resident in Singapore —
(i)
no new assets are injected into the trust by the settlor from the day he becomes a citizen of Singapore or resident in Singapore;
(ii)
the settlor neither receives nor enjoys any benefit under the trust and shall not exercise any power of appointment in favour of any person who is a citizen of Singapore or resident in Singapore; and
(iii)
the settlor neither revokes the trust nor varies the terms of the trust so as to cause any benefit to be paid or otherwise made available to a citizen of Singapore or resident in Singapore;
(b)
in the case of a settlor who was previously a citizen of Singapore or resident in Singapore and the trust was constituted subsequent to the settlor ceasing to be a citizen of Singapore or resident in Singapore, the settlor does not within 5 years of last ceasing to be a citizen of Singapore or resident in Singapore resume being a citizen of Singapore or resident in Singapore; and
(c)
in the case of a beneficiary who subsequently becomes a citizen of Singapore or resident in Singapore —
(i)
the total value of all distributions made by the trustee to the beneficiaries who are citizens of Singapore or resident in Singapore is less than 20% of the cumulative value of all trust distributions made by the trustee for the trust; and
(ii)
all beneficiaries who are citizens of Singapore or resident in Singapore are beneficially entitled to less than 20% of the assets of the trust.
[S 350/2003; wef 02/07/2002]