Singapore Government
Link to AGC Website
Home | Search | Browse | Results | My Preferences
 
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

 
Slider
Left Corner
Print   Link to In-Force Version
On 22/10/2014, you requested the version as published on or before 22/10/2014.
Slider
Carry-back of capital allowances and losses
37E.
—(1)  Subject to the provisions of this section, a person may deduct any qualifying deduction for any year of assessment against his assessable income for the immediate preceding year of assessment.
(1A)  Notwithstanding subsection (1) but subject to the other provisions of this section, a person may deduct any qualifying deduction for the years of assessment 2009 and 2010 against his assessable income for the 3 years of assessment immediately preceding the year of assessment 2009 or 2010, as the case may be.
(1B)  Any qualifying deduction under subsection (1A) for any year of assessment shall so far as possible be made against the person’s assessable income for the third year of assessment immediately preceding that year of assessment, with any remaining balance of the qualifying deduction made —
(a)
against his assessable income for the second year of assessment immediately preceding that year of assessment; and
(b)
thereafter against his assessable income for the first year of assessment immediately preceding that year of assessment.
(1C)  Where in any year of assessment a person is entitled to make more than one deduction under subsection (1A) or under subsections (1) and (1A) against his assessable income for that year of assessment, the assessable income for that year of assessment shall so far as possible be deducted by the amount of qualifying deduction for the earliest year of assessment the person is entitled to so deduct under subsection (1) or (1A), and any remaining balance of the assessable income for the first-mentioned year of assessment shall so far as possible be deducted by the amount of qualifying deduction for the next earliest year of assessment, and so on.
(2)  Qualifying deductions shall be deducted in the following order:
(a)
any allowance specified in subsection (9)(a); and
(b)
any loss specified in subsection (9)(b).
(3)  The amount of qualifying deduction to be deducted for any year of assessment is the lower of —
(a)
the amount of qualifying deduction available for deduction for that year of assessment; and
(b)
the assessable income of the person for the immediate preceding year of assessment.
(3A)  Notwithstanding subsection (3), the amount of qualifying deduction to be deducted for the year of assessment 2009 or 2010 against the assessable income for any of the 3 years of assessment immediately preceding the year of assessment 2009 or 2010, as the case may be, is the lower of —
(a)
an amount equivalent to the difference between the amount of qualifying deduction available for deduction for the year of assessment 2009 or 2010, as the case may be, and the aggregate amount of such qualifying deductions which had already been deducted under subsection (1A); and
(b)
the balance of the assessable income of the person for the year of assessment after such assessable income has been deducted by the qualifying deduction for any year of assessment prior to the year of assessment 2009 or 2010, as the case may be, under subsection (1C).
(4)  Subject to the provisions of this section, section 37B shall apply, with the necessary modifications, to the deduction of any qualifying deduction by any company for any year of assessment against its assessable income for the immediate preceding year of assessment or any of the 3 immediate preceding years of assessment (as the case may be), where applicable, as if the income for the immediate preceding year of assessment or any of the 3 immediate preceding years of assessment (as the case may be) is income for that year of assessment, and for the purpose of such application, any reference in section 37B(2) and (3) to —
(a)
unabsorbed allowances, losses or donations shall be read as a reference to qualifying deductions;
(b)
corresponding allowances, losses or donations shall be read as a reference to allowances or losses; and
(c)
chargeable income of the company shall be read as a reference to assessable income for the immediate preceding year of assessment or any of the 3 immediate preceding years of assessment (as the case may be) of the company.
(4A)  For the purposes of applying section 37B to the provisions of this section under subsection (4), the reference to “higher rate of tax” or “lower rate of tax” in section 37B shall be read as a reference to —
(a)
the rate of tax under section 43(1)(a) applicable to the year of assessment for which the assessable income is deducted by any qualifying deduction;
(b)
the concessionary rate of tax applicable to the year of assessment for which any allowance specified in subsection (9)(a) is made to or any loss specified in subsection (9)(b) is incurred by a company; or
(c)
the concessionary rate of tax applicable to the assessable income which is deducted by any qualifying deduction,
as the case may be.
(5)  The amount of qualifying deduction to be deducted for any year of assessment shall not exceed $100,000; and in the case of a company shall be determined by the formula
where A
is any amount deducted against assessable income subject to tax at the rate of tax specified in section 43(1)(a); and
B
is any amount deducted against assessable income subject to tax at any concessionary rate of tax divided by the adjustment factor for that concessionary rate of tax.
(5A)  Notwithstanding subsection (5), the amount of qualifying deduction to be deducted for the year of assessment 2009 or 2010 shall not exceed $200,000; and in the case of a company shall be determined by the formula
where A
is any amount deducted against assessable income subject to tax at the rate of tax specified in section 43(1)(a); and
B
is any amount deducted against assessable income subject to tax at any concessionary rate of tax divided by the adjustment factor for that concessionary rate of tax.
(6)  Any person deducting any qualifying deduction for any year of assessment against his assessable income for the immediate preceding year of assessment or any of the 3 immediate preceding years of assessment (as the case may be) under this section shall notify the Comptroller and make an election to make such deduction —
(a)
in the case of an individual, not later than 30 days from the date of service of the notice of assessment on him; and
(b)
in the case of any other person, not later than the time of lodgment of his return of income for the year of assessment,
or within such further time as the Comptroller may allow.
(7)  Any election made under subsection (6) shall be irrevocable and shall be accompanied by such particulars as the Comptroller may require.
(8)  Where the Comptroller discovers that any deduction made under this section against the assessable income of any person for any year of assessment is or has become excessive, he may make an assessment on the person on the amount which, in his opinion, ought to have been charged to tax in that year of assessment within 7 years (if that year of assessment is 2007 or a preceding year of assessment) or 5 years (if that year of assessment is 2008 or a subsequent year of assessment) after the expiration of that year of assessment.
(8A)  Notwithstanding subsection (8), where the Comptroller discovers that any qualifying deduction for the year of assessment 2010 made under subsection (1A) against the assessable income of any person for the year of assessment 2008 is or has become excessive, he may make an assessment on the person on the amount which, in his opinion, ought to have been charged to tax in the year of assessment 2008, within 6 years after the expiration of that year of assessment.
(9)  For the purposes of this section, subject to sections 35, 37 and 37B, qualifying deductions, in relation to any person, for each year of assessment, are —
(a)
any allowance falling to be made under section 16, 17, 18B, 18C, 19, 19A, 19B, 19C, 19D or 20 that is in excess of the person’s income from all sources chargeable to tax for that year of assessment and is not transferred under section 37C or 37D; and
(b)
any loss incurred by the person in any trade, business, profession or vocation which is not deducted for that year of assessment because of insufficiency of statutory income of the person and is not transferred under section 37C or 37D.
(10)  Notwithstanding subsection (9), any loss deemed to be a loss incurred from a trade or business for the purpose of section 97V of the Economic Expansion Incentives (Relief from Income Tax) Act (Cap. 86) shall not be deductible.
(11)  Notwithstanding subsection (9), any allowance specified in subsection (9)(a) made to a person for any year of assessment shall not be deductible against assessable income for the immediate preceding year of assessment or any one of the 3 immediate preceding years of assessment (as the case may be) if the person did not carry on that trade, business or profession in the basis period for that preceding year of assessment.
(12)  Notwithstanding subsection (9), any allowance specified in subsection (9)(a) made to or any loss specified in subsection (9)(b) incurred by a company for any year of assessment shall not be deductible against income for the immediate preceding year of assessment or any one of the 3 immediate preceding years of assessment (as the case may be) unless the Comptroller is satisfied that the shareholders of the company on the first day of the year in which the allowances arose or in which the loss was incurred, as the case may be, were substantially the same as the shareholders of the company on the last day of that preceding year of assessment.
(13)  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.
(14)  For the purpose of subsection (13)(a), where any part of a share of a shareholder is not fully paid up, there shall be disregarded a proportion equal to
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.
(15)  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).
(16)  Upon an exemption under subsection (15), any allowance specified in subsection (9)(a) made to or any loss specified in subsection (9)(b) incurred by a company may only be deducted against the profits from the same trade or business of the company in respect of which the allowance was made or the loss was incurred.
(17)  In this section —
“adjustment factor”, in relation to a concessionary rate of tax, means the factor ascertained in accordance with the formula
where C
is the rate of tax specified in section 43(1)(a); and
D
is the concessionary rate of tax;
“assessable income” means —
(a)
in relation to a company, assessable income of the company as determined under section 37 after deducting any deduction allowed under section 37G, investment allowance under Part X of the Economic Expansion Incentives (Relief from Income Tax) Act, integrated investment allowance under Part XIIID of that Act and any deductions claimed under section 37C;
(b)
in relation to an individual, assessable income of the individual as determined under section 37 after deducting any deductions claimed under section 37D; and
(c)
in relation to any other person, assessable income of the person as determined under section 37;
“concessionary rate of tax” means any rate of tax lower than the rate specified in section 43(1)(a) in accordance with —
(a)
any order made under section 13(12); or
(b)
section 13H, 43A, 43C (in respect of those relating to offshore general insurance business only), 43D, 43E, 43F, 43G, 43H, 43I, 43J, 43K, 43L (repealed), 43N, 43P, 43Q, 43R, 43S, 43T, 43U, 43V, 43W, 43X, 43Y, 43Z, 43ZA, 43ZB, 43ZC, 43ZD, 43ZE or 43ZF, or the regulations made thereunder, as the case may be.
(18)  This section shall not apply to —
(a)
any company to which section 10E applies; or
(b)
any person, in respect of qualifying deductions under subsection (9) relating to any income the tax on which is remitted under the provisions of this Act for any year of assessment unless —
(i)
no such remission would be given to any income in the following year of assessment; or
(ii)
the remission is to effect a deduction for any outgoing or expense incurred by him not otherwise deductible under section 14.