On 24/05/2013,
you requested for the version in force on 24/05/2013
incorporating all amendments published on or before 24/05/2013.
The closest version currently available is that of 01/01/2008.
37.
—(1) The assessable income of any person from all sources chargeable with tax under this Act for any year of assessment shall be the remainder of his statutory income for that year after the deductions allowed in this Part have been made.
[23/69]
(2) For the purposes of this section, unless otherwise provided in this Act or the Economic Expansion Incentives (Relief from Income Tax) Act (Cap. 86), where a person is a company whose income, if any, is subject to tax at different rates of tax for any year of assessment, the Comptroller shall apportion any sum allowable under subsection (3)(b), (c), (d) or (f) among the different rates of tax on such basis he considers reasonable.
[21/2003; 34/2005]
(3) Subject to subsection (2), there shall be deducted —
(a)
the amount of loss incurred by that person in any trade, business, profession or vocation, which, if it had been a profit would have been assessable under this Act, in the following order:
(i)
firstly, any balance of such loss which remains unabsorbed at the end of the basis period for the previous year of assessment; and
(ii)
secondly, the amount incurred during the basis period for the year of assessment;
(b)
an amount equivalent to twice the value, the value to be determined by the Minister or such person as he may appoint, of an approved donation of —
(i)
any artefact or work of art made by him in the year preceding the year of assessment to an approved museum;
(ii)
any sculpture or work of art for public display made by him in the year preceding the year of assessment to an approved recipient not being an approved museum; or
(iii)
money or services for installing or maintaining any sculpture or work of art for public display made by him in the year preceding the year of assessment,
and for this purpose, “approved” means approved by the Minister or such person as he may appoint;
(c)
an amount equivalent to twice the amount of any donation of money made by him in the year preceding the year of assessment to —
(i)
the Government; or
(ii)
any institution of a public character, whether made directly to the institution or indirectly through any grant-making philanthropic organisation registered by the Comptroller for the purpose of this sub-paragraph;
(d)
an amount equivalent to twice the value of any donation of a computer (including computer software and peripherals) approved by the Minister or such person as he may appoint and made by any company in the year preceding the year of assessment to —
(i)
any institution of a public character; or
(ii)
a prescribed educational, research or other institution in Singapore;
(e)
an amount equivalent to —
(i)
twice the value of any donation of shares in a company listed on the Singapore Exchange; or
(ii)
twice the value of any donation of units in unit trusts traded in Singapore or listed on the Singapore Exchange,
made by an individual in the year preceding the year of assessment to any institution of a public character; and
(f)
an amount equivalent to twice the value, the value to be determined by an appraiser licensed under the Appraisers and House Agents Act (Cap. 16) and approved by the Chief Valuer appointed under the State Lands Act (Cap. 314), of any donation of any immovable property made by him in the year preceding the year of assessment to any institution of a public character.
[31/86; 1/90; 26/93; 31/98; 24/2001; 37/2002; 21/2003; 49/2004; 34/2005; 7/2007; 10/2007]
[29/2010 wef 01/01/2011]
(4) A deduction under subsection (3)(a)(i) shall be made in the following order:
(a)
firstly, against statutory income from the same trade, business, profession or vocation;
(b)
secondly, against statutory income from any other trade, business, profession or vocation; and
(c)
thirdly, against statutory income from any other source.
[49/2004]
(5) A deduction under subsection (3)(a)(i) shall be made as far as possible in the order specified in subsection (4) from the statutory income of the first year of assessment after the year in which such loss was incurred, and, so far as it cannot be so made, then from the statutory income of the next year of assessment, and so on.
[49/2004]
(6) Where, in any year of assessment, the amount of loss incurred by any person during the year preceding the year of assessment is not fully deducted under subsection (3)(a)(ii), the balance of such loss, after deducting any amount of such loss transferred to a claimant company under section 37C or to a spouse under section 37D or 37F, or deducted against income for the immediate preceding year of assessment under section 37E, shall be available for deduction against his statutory income for subsequent year of assessment under subsection (3)(a)(i).
[Act 27/2009, wef Y/A 2009 & 2010:2009-ACT-27]
[37/2002; 49/2004; 34/2005]
(7) A deduction under this section to any person in respect of any sum allowable under subsection (3)(b), (c), (d), (e) or (f) shall only be allowed against his statutory income after the deduction under subsection (3)(a) .
[29/2010 wef 01/03/2010]
[37/2002; 21/2003; 34/2005]
(8) Subject to subsections (2), (7) and (12), the deduction to any person in respect of any sum allowable under subsection (3)(b), (c), (d), (e) or (f) shall be allowed —
(a)
as far as possible against his statutory income of the first year of assessment after the year in which the donation was made by him; and
(b)
so far as the deduction cannot be so allowed, after deducting any of such sum transferred to a claimant company under section 37C or to a spouse under section 37D, then from his statutory income of the next year of assessment,
and so on, except that any balance of the donation not deducted against his statutory income of the sixth year of assessment from the first year of assessment in which the donation was made shall be disregarded.
[37/2002; 21/2003; 49/2004; 34/2005]
(9) For the purposes of subsections (7) and (8), any sum allowable under subsection (3)(b), (c), (d), (e) or (f) in respect of any donation made on an earlier date shall be deemed to have been deducted first.
[37/2002; 21/2003; 34/2005]
(10) For the purposes of subsection (3), the loss incurred during any year shall be computed, where the Comptroller so decides, by reference to the year ending on a day in such year which would have been adopted under section 35(4) for the computation of the statutory income of the following year of assessment if a profit had arisen.
11(10A) For the purposes of subsection (3)(b) to (f), the reference to the year preceding any year of assessment shall —
(a)
if the person making the donation is not an individual or a Hindu joint family and is one to whom a direction is made under section 35(4);
(b)
if the persons making the donation are the partners of a partnership, a direction is made under section 35(4) in relation to the income of that partnership, and the donation is made by them in the name of the partnership;
(c)
if the person making the donation is an individual or a Hindu joint family, is one to whom a direction is made under section 35(4), and the donation is made by him in the name of the trade, business or profession to which the accounts relate,
be read as a reference to —
(i)
the period of 12 months or such other period as the Comptroller may allow, ending on the day the accounts of the person or the partnership (as the case may be) are made up to; or
(ii)
such other period as the Comptroller, having regard to any special circumstance, otherwise directs.
[53/2007]
11 Subsection (10A) shall have effect from the year of assessment 2009.
(11) No deduction shall be allowed under this section to any person in respect of any sum which has been allowed as a deduction under this section against the income of his or her spouse chargeable in his or her own name.
(12) Notwithstanding subsection (3), the amount of any loss incurred by a company in any trade or business or any sum allowable under subsection (3)(b), (c), (d), (e) or (f) to a company in respect of any donation shall be disregarded unless the Comptroller is satisfied that the shareholders of the company on the last day of the year in which the loss was incurred or the donation was made, as the case may be, were substantially the same as the shareholders of the company on the first day of the year of assessment in which such loss or donation would otherwise be deductible under subsection (3).
[37/2002; 21/2003; 34/2005]
(13) A loss or donation disregarded under subsection (12) shall not be allowed in any subsequent year of assessment.
[37/2002]
(14) For the purposes of subsection (12) —
(a)
the shareholders of a company at any date shall not be deemed to be substantially the same as the shareholders at any other date unless, on both those dates, not less than 50% of the total number of issued shares of the company are held by or on behalf of the same persons;
(b)
shares in a company held by or on behalf of another company shall be deemed to be held by the shareholders of the last-mentioned company; and
(c)
shares held by or on behalf of the trustee of the estate of a deceased shareholder or by or on behalf of the person entitled to those shares as beneficiaries under the will or any intestacy of a deceased shareholder shall be deemed to be held by that deceased shareholder.
[34/2005]
(15) For the purpose of subsection (14), where any part of a share of a shareholder is not fully paid up, there shall be disregarded a proportion equal to
A, |
B |
where | A | is the amount that has not been paid in respect of the share; and |
B | is the total amount payable in respect of the share. |
[34/2005]
(16) The Minister or such person as he may appoint may, where there is a substantial change in the shareholders of a company and he is satisfied that such change is not for the purpose of deriving any tax benefit or obtaining any tax advantage, exempt that company from the provisions of subsection (12).
[37/2002]
(17) Upon an exemption under subsection (16) —
(a)
any loss referred to in subsection (3)(a) incurred by a company may only be deducted against the profits from the same trade or business of the company in respect of which that loss was incurred; and
(b)
any balance of the donation referred to in subsection (8) shall be allowed against the statutory income of the person of the year of assessment in which such donation would otherwise be deductible under that subsection.
[37/2002]
(18) For the purposes of subsection (3)(b), “museum” includes any institution established for the purpose of acquiring any collection of artefacts and making them accessible to the public.
[7/2007]
(19) For the purposes of subsection (3)(e) —
(a)
the amount in respect of any donation of shares in a company or units in a unit trust listed on the Singapore Exchange shall be the price of such shares or units, as the case may be, in the open market at the last transaction of such shares or units on the date of the donation;
(b)
the amount in respect of any donation of units in unit trusts traded in Singapore (other than those listed on the Singapore Exchange) shall be the bid price of such units immediately after the date of the donation quoted by the manager of the unit trusts; and
(c)
“date of the donation”, in relation to any shares or units referred to in paragraph (a) or (b), as the case may be, means the date of legal transfer to the institution of a public character of the donation of such shares or units.
[24/2001; 37/2002; 21/2003]