On 26/05/2013,
you requested for the version in force on 26/05/2013
incorporating all amendments published on or before 26/05/2013.
The closest version currently available is that of 30/12/1999.
44.
—(1) Every company which is resident in Singapore, shall be entitled to deduct from the amount of any dividend paid to any shareholder tax at the rate of 26% on every dollar of such dividend.
[31/86; 1/90; 20/91; 28/92; 26/93; 28/96]
(2) Every such company shall upon payment of a dividend, whether tax is deducted therefrom or not, furnish each shareholder with a certificate setting forth the amount of the dividend paid to that shareholder and the amount of tax which the company has deducted or is entitled to deduct in respect of that dividend.
(3) The Minister may, if he is satisfied that it is expedient in the public interest to do so, authorise the Comptroller to pay such company in respect of such classes of its shareholders as the Minister may designate, a sum equal to the amount of tax which the designated company would be entitled to deduct under subsection (1) from dividends to be paid to the designated shareholders so as to enable the designated company to pay the dividends to those shareholders as if no tax had been deducted under that subsection.
[32/95]
(4) Upon payment of a dividend by a company in any year of assessment —
(a)
where such dividend is the first dividend paid in that year of assessment and where the amount of tax deducted under subsection (1) exceeds the aggregate of the balance, if any, on 1st January of that year of assessment and any tax assessed during the period from 1st January of that year of assessment to the day before the date of payment of the dividend; or
(b)
where such dividend is the second or subsequent dividend paid in that year of assessment and where the amount of tax deducted under subsection (1) exceeds the aggregate of the balance, if any, after the preceding dividend and any tax assessed during the period from the date of the payment of the preceding dividend to the day before the date of payment of the second or subsequent dividend,
a charge equal to the amount of such excess shall be paid to the Comptroller within 14 days from the date of payment of the dividend, and any amount of tax which remains unpaid on that date shall, notwithstanding section 85, be paid immediately to the Comptroller.
[1/88]
(5) Where upon the payment of any dividend the aggregate of the balance, if any, after the date of payment of the preceding dividend and any tax assessed during the period from that date to the day before the date of payment of the first-mentioned dividend exceeds the tax deducted under subsection (1) from the first-mentioned dividend, the excess shall be carried forward as a balance to be set-off against the tax deducted from any ensuing dividend.
[1/88]
(6) Where any tax assessed which has been taken into account for the purposes of subsection (4) is subsequently reduced and as a result a charge or additional charge arises under that subsection, the charge or additional charge shall be paid to the Comptroller within 14 days of the notice of the charge or additional charge.
[1/88]
(7) Where no charge under subsection (4) arises but the amount of tax deducted under subsection (1) exceeds the aggregate amount as computed under subsection (4)(a) or (b) less any amount of tax assessed on the company but not paid, a sum equal to such excess shall be paid to the Comptroller immediately on the date of payment of the dividend.
[1/88]
(8) On the payment of any dividend, every company shall render to the Comptroller a statement, in such form as the Comptroller may direct, containing such particulars as may be required for the purpose of determining the balance or charge immediately after the payment of the dividend.
[1/88]
(9) Without prejudice to subsection (8), within 3 months from the end of each year of assessment or such longer period as the Comptroller may allow, every such company shall render to the Comptroller a statement, in such form as the Comptroller may direct, containing such particulars as may be required for the purpose of determining the balance to be carried forward to the first day of the ensuing year of assessment.
[1/88; 3/89; 32/95]
(10) Where any company has been convicted of an offence for failing to comply with subsection (9), the Comptroller may, by notice in writing, require the company to render to him, within such reasonable time as may be specified in the notice, the statement referred to in subsection (9).
[28/92]
(11) Any charge or additional charge paid by a company to the Comptroller shall be used to set-off any tax assessed on it subsequent to the charge or additional charge and the amount of such tax to be taken into account for computing the charge or balance under subsection (4) or (5) shall be reduced by the amount of the set-off.
[1/88]
(12) If any charge or additional charge referred to in subsection (4) or (6) is not paid to the Comptroller within the period prescribed for the payment of the charge, section 87 shall have effect in relation to the charge or additional charge, and the provisions of this Act relating to the collection and recovery of tax shall apply to the collection and recovery of the charge or additional charge and penalties imposed thereon.
[1/88]
(13) Notwithstanding anything in this Act, where the tax on any dividend paid in 1996 has been deducted at the rate of 27% —
(a)
the amount of such dividend received by a shareholder shall be deemed to have been paid without deduction of tax and to be a dividend of such a gross amount as after deduction of tax at the rate of 26% would be equal to the net amount paid; and a sum equal to the difference between such gross amount and the net amount paid shall be deemed to have been deducted from the dividend as tax; and
(b)
the difference between the amount of the tax deducted at 27% from such dividend and the amount deemed to have been so deducted under paragraph (a) shall be added to the balance on the 1st day of the year of assessment 1997 and deemed to be a part thereof.
[28/96]
(14) For the purposes of this section —
(a)
subject to paragraph (b), where any dividend (other than any dividend paid by virtue of subsection (3)) has been paid without deduction of tax, such dividend or part thereof, from which a company was entitled to deduct tax, shall be deemed to be a dividend of such a gross amount as after deduction of tax at the rate deductible at the date of payment would be equal to the net amount paid; and a sum equal to the difference between such gross amount and the net amount paid shall be deemed to have been deducted from such dividend or part thereof as tax;
(b)
where any dividend has been paid and any amount of the charge referred to in subsection (4) or any amount of tax payable referred to in subsection (4) or (7) is not paid within 14 days from the date of payment of that dividend or by 31st December of the year in which the dividend is paid, whichever is the later, the dividend shall be chargeable to tax on the basis of the net amount received by the shareholder;
(c)
in relation to any company, the balance on 1st January of any year of assessment shall be the aggregate of —
(i)
the balance carried forward after the payment of the last dividend in the preceding year of assessment as computed in accordance with subsection (5); and
(ii)
any tax assessed during the period from the date of the payment of that dividend to the end of the preceding year of assessment;
(d)
in determining under subsection (4) or (7) the amount of tax assessed and not paid, any payment made to the Comptroller shall be applied first to the payment of any penalties before the payment of tax;
(e)
tax assessed excludes —
(i)
tax assessed at the rate of 10% or such other rate as may be prescribed under section 43(3); and
(ii)
tax assessed at the rate of 10% or such other concessionary rate as may be prescribed under section 13H, 43A, 43C, 43D, 43E, 43F, 43G, 43H, 43I, 43J, 43K, 43L, 43M, 43N or 43O, or section 19B or 19J of the Economic Expansion Incentives (Relief from Income Tax) Act (Cap. 86); and
(f)
any balance or tax assessed which has been taken into account for the purpose of determining the charge or balance under subsection (4) or (5) upon the payment of any dividend shall be regarded as having been utilized for that purpose notwithstanding that no set-off has been allowed in respect of that dividend under section 46(6).
[1/88; 28/92; 26/93; 32/95; 1/98; 31/98; 32/99]