—(1) Any tax —
which a person has deducted or is entitled to deduct from any dividend under section 44 or has deducted from any interest or other payment under section 45, 45A, 45C, 45D, 45E(1)(a), 45GA or 45H or has deducted from any remuneration under section 45B;
[10/2006 wef 02/04/2008]
applicable to the share to which any person is entitled in the income of —
a body of persons (other than trustees); or
a trust in respect of any dividend derived from Singapore from which tax is deducted or deductible under section 44;
which a person has deducted from any payment under section 45F in respect of income accrued to or derived by any person who has made an option under section 43(5); or
which a trustee of a real estate investment trust has deducted from any distribution to any person referred to in section 45G(1)(b),
shall, when the income from which the tax has been deducted or when the share referred to in paragraph (b) is included in the chargeable income of any person, be set-off for the purpose of collection against the tax charged on that chargeable income.
[7/79; 23/90; 23/96; 24/2001; 37/2002; 34/2005; 10/2006; 7/2007; 53/2007]
(1A) For the purpose of subsection (1), the amount of tax deducted from a dividend under section 44(1) to be set-off for the purpose of collection against the tax charged on the chargeable income of any person shall not exceed —
the actual amount of tax deducted from the dividend received by that person; or
the amount of tax to be deducted from the dividend in accordance with the proportion of his shareholding in the company,
whichever is the lower.
(2) Notwithstanding subsection (1), where the tax on any dividend paid in the year 2007 has been deducted at the rate of 20%, the tax to be set-off under subsection (1) shall be the sum deemed to be the tax deducted from such dividend under section 44A(4).
(3) Notwithstanding subsection (1), if any amount of the charge referred to in section 44(4) or (6), or any amount of tax payable referred to in section 44(4), (6) or (13) is not paid within 14 days from the date of payment of any dividend to which the charge or tax relates or by 31st December of the year in which the dividend is paid, whichever is the later, no set-off against tax under subsection (1) shall be allowed in respect of the whole of the dividend.
(4) No set-off shall be allowed under subsection (1) in respect of any dividend paid to any person by virtue of section 44(3).
(5) Notwithstanding section 93(1), where any person for any year of assessment has paid tax by deduction under section 44 in respect of any dividend deemed to be received by him under section 10J(4)(b) and the amount of tax allowed to him as a set-off under subsection (1) is in excess of the amount of tax payable by him for that year of assessment, he shall not be entitled to a refund of an amount of tax equal to —
the amount of tax deducted under section 44 from such dividend, where the amount of set-off in excess is not less than the amount of tax so deducted; or
the amount of set-off in excess, where the amount of set-off in excess is less than the amount of tax so deducted.
(6) Any amount of set-off in excess for any year of assessment which is not available for refund to any person under subsection (5) shall not be set-off against the tax payable by the person for any other year of assessment and shall not be regarded as tax assessed for the purposes of sections 44 and 44A.