{"kind":"task","effective_mode":"full","benchmark":{"kind":"benchmark","effective_mode":"full","slug":"longbench-v2","formal_name":"LongBench v2","introduction":"LongBench v2 evaluates deep understanding and reasoning over long contexts through multiple-choice questions. Its official description lists 503 questions spanning tasks such as single-document and multi-document QA and code-repository understanding.","introduction_ja":"","introduction_en":"","category":"Category not supplied","task_count":null,"acquisition_status":"Acquisition status not supplied","official_url":"https://huggingface.co/datasets/zai-org/LongBench-v2","indexing_mode":"noindex","profile":{"resources":[],"task_format":"","scoring":"","metric":"","size":"","answer_access":"","license":"","citation":"","maintainer":"","released":"","why_hard":"","related":[]}},"task_id":"7982db11-eb48-523f-953c-ae9b6b5383d8","task_key":"train--66f954a5bb02136c067c511a","task_revision_id":"3","upstream_id":"66f954a5bb02136c067c511a","short_description":"In light of the Income Tax Act 1947, how can multinational corporations…","config":"","split":"train","body":"{\"choice_A\":\"By structuring their intercompany transactions based on fair market values and ensuring that profit shifting aligns with Singapore’s arm’s length requirements, corporations can minimize global tax liabilities while avoiding penalties for non-compliance.\",\"choice_B\":\"Multinational corporations can align with Singapore’s arm’s length principle by setting fair market prices for cross-border transactions between related entities, ensuring that they minimize tax liabilities while avoiding transfer pricing penalties.\",\"choice_C\":\"Companies can leverage intercompany transactions by applying market-based pricing for the exchange of goods, services, or intellectual property, ensuring compliance with Singapore’s arm’s length principle while minimizing their global tax exposure.\",\"choice_D\":\"By structuring intercompany loans and charging interest at market rates, multinationals can align with Singapore’s arm’s length requirements, ensuring that financing arrangements reduce tax liabilities while avoiding regulatory scrutiny.\",\"context\":\"THE STATUTES OF THE REPUBLIC OF SINGAPORE\\nINCOME TAX ACT 1947\\n2020 REVISED EDITION\\nThis revised edition incorporates all amendments up to and\\nincluding 1 December 2021 and comes into operation on 31 December 2021.\\nPrepared and Published by\\nTHE LAW REVISION COMMISSION\\nUNDER THE AUTHORITY OF\\nTHE REVISED EDITION OF THE LAWS ACT 1983\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nIncome Tax Act 1947\\nARRANGEMENT OF SECTIONS\\nPART 1\\nPRELIMINARY\\nSection\\n1.\\nShort title\\n2.\\nInterpretation\\nPART 2\\nADMINISTRATION\\n3.\\nAppointment of Comptroller and other officers\\n3A.\\nAssignment of function or power to public body\\n4.\\nPowers of Comptroller\\n5.\\nApproved pension or provident fund or society\\n6.\\nOfficial secrecy\\n7.\\nRules\\n8.\\nService and signature of notices, etc.\\n8A.\\nUse of electronic service\\n9.\\nFree postage\\nPART 3\\nIMPOSITION OF INCOME TAX\\n10.\\nCharge of income tax\\n10A.\\nProfits of unit trusts\\n10B.\\nExcess provident fund contributions, etc., deemed to be income\\n10C.\\nIncome from finance or operating lease\\n10D.\\nAscertainment of income from business of making investments\\n10E.\\nAscertainment of income from certain public‑private partnership\\narrangements\\n10F.\\nAscertainment of income from business of hiring out motor cars\\nor providing driving instruction or chauffeur services\\n10G.\\nWithdrawals from Supplementary Retirement Scheme\\n10H.\\nSecurities lending or repurchase arrangement\\n10I.\\nAdditional Tier 1 capital instruments\\nInformal Consolidation – version in force from 26/4/2024\\n1\\n2020 Ed.\\n\\n\\nSection\\n10J.\\nTax treatment for trading stock appropriated for non‑trade or\\ncapital purpose\\n10K.\\nTax treatment for covered bond transactions\\n10L.\\nGains from the sale of foreign assets\\n11.\\nAscertainment of income of clubs, trade associations, etc.\\n12.\\nSources of income\\nPART 4\\nEXEMPTION FROM INCOME TAX\\n13.\\nExempt income\\n13A.\\nExemption of shipping profits\\n13B.\\nAssessment of income not entitled to exemption under\\nsection 43A, 43C, 43D or 43H\\n13C.\\nExemption of income of trustee of trust fund arising from funds\\nmanaged by fund manager in Singapore\\n13D.\\nExemption of income of prescribed persons arising from funds\\nmanaged by fund manager in Singapore\\n13E.\\nExemption of international shipping profits\\n13F.\\nExemption of income of foreign trust\\n13G.\\nExemption of income of venture company\\n13H.\\nExemption of tax on gains or profits from equity remuneration\\nincentive scheme (SMEs)\\n13I.\\nExemption of tax on gains or profits from equity remuneration\\nincentive scheme\\n13J.\\nExemption of tax on gains or profits from equity remuneration\\nincentive scheme (start‑ups)\\n13K.\\nExemption of tax on income derived by non‑ordinarily resident\\nindividual\\n13L.\\nExemption of income of foreign account of philanthropic\\npurpose trust\\n13M.\\nExemption of income derived from asset securitisation\\ntransaction\\n13N.\\nExemption of relevant income of prescribed\\nlocally‑administered trust\\n13O.\\nExemption of income of company incorporated and resident in\\nSingapore arising from funds managed by fund manager in\\nSingapore\\n13P.\\nExemption of income of shipping investment enterprise\\n13Q.\\nExemption of trust income to which beneficiary is entitled\\n13QA. Exemption of estate income received by beneficiary, etc.\\nIncome Tax Act 1947\\n2020 Ed.\\n2\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nSection\\n13R.\\nExemption of income of not‑for‑profit organisation\\n13S.\\nExemption of income derived by law practice from international\\narbitration held in Singapore\\n13T.\\nExemption of relevant income of eligible family‑owned\\ninvestment holding company\\n13U.\\nExemption of income arising from funds managed by fund\\nmanager in Singapore\\n13V.\\nExemption of certain income of prescribed sovereign fund entity\\nand approved foreign government‑owned entity\\n13W.\\nExemption of gains or profits from disposal of ordinary shares\\n13X.\\nExemption of certain payments received in connection with\\nCOVID‑19 events\\nPART 5\\nDEDUCTIONS AGAINST INCOME\\n14.\\nDeductions allowed\\n14A.\\nDeduction for costs for protecting intellectual property\\n14B.\\nFurther deduction for expenses relating to approved trade fairs,\\nexhibitions or trade missions, maintenance of overseas trade\\noffice, or electronic commerce\\n14C.\\nExpenditure on research and development\\n14D.\\nEnhanced deduction for qualifying expenditure on research and\\ndevelopment\\n14E.\\nFurther deduction for expenditure on research and development\\nproject\\n14EA. Deduction for expenditure incurred on qualifying innovation\\nprojects\\n14F.\\nExpenditure on building modifications for benefit of disabled\\nemployees\\n14G.\\nProvisions by banks and qualifying finance companies for\\ndoubtful debts and diminution in value of investments\\n14H.\\nFurther or double deduction for overseas investment\\ndevelopment expenditure\\n14I.\\nFurther or double deduction for salary expenditure for\\nemployees posted overseas\\n14J.\\nDeduction for upfront land premium\\n14K.\\nDeduction for special reserve of approved general insurer\\n14L.\\nDeduction for treasury shares transferred under employee\\nequity‑based remuneration scheme\\nIncome Tax Act 1947\\n3\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nSection\\n14M.\\nDeduction for shares transferred by special purpose vehicle\\nunder employee equity‑based remuneration scheme\\n14N.\\nDeduction for renovation or refurbishment expenditure\\n14O.\\nDeduction for qualifying training expenditure for years of\\nassessment 2011 to 2018\\n14P.\\nDeduction for qualifying design expenditure\\n14Q.\\nDeduction for expenditure on leasing of PIC automation\\nequipment under qualifying lease\\n14R.\\nDeduction for expenses incurred before first dollar of income\\nfrom trade, business, profession or vocation\\n14S.\\nDeduction for amortisation of intangible asset created under\\npublic‑private partnership arrangement\\n14T.\\nDeduction for expenditure on licensing intellectual property\\nrights\\n14U.\\nEnhanced deduction for expenditure on licensing intellectual\\nproperty rights\\n14V.\\nDeduction for expenditure incurred to comply with statutory and\\nregulatory requirements\\n14W.\\nDeduction for expenditure incurred by individual in deriving\\npassive rental income in Singapore\\n14X.\\nAttribution of deductible expenses incurred before\\ncommencement of trade, etc.\\n14Y.\\nFurther or double deduction for qualifying expenditure on issue\\nof debentures and making available debentures for secondary\\ntrading\\n14Z.\\nDeduction for expenditure for services or secondment to\\ninstitutions of a public character\\n14ZA. Deduction for expenditure incurred in deriving income from\\ndriving chauffeured private hire car or taxi\\n14ZB. Deduction for expenditure incurred by individual in deriving\\ncommission\\n14ZC. Deduction for payments made to drivers of chauffeured private\\nhire cars and taxis\\n14ZD. Deduction for payments made to lessees or licensees to mitigate\\nimpact of COVID‑19 event\\n14ZE. Deduction for expenditure incurred in obtaining or granting, etc.,\\nleases of immovable properties\\n14ZF. Deduction for expenditure incurred on immovable property\\nwhile vacant\\n14ZG. Deduction for qualifying training expenditure for years of\\nassessment 2024 to 2028\\nIncome Tax Act 1947\\n2020 Ed.\\n4\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nSection\\n14ZH. Deduction for expenditure incurred in deriving income from\\nproviding delivery services\\n15.\\nDeductions not allowed\\n15A.\\nLimit on deduction allowed for leasing or licensing expenditure\\nin 2020\\n15B.\\nLimit on deduction allowed for leasing or licensing expenditure\\nin 2021\\nPART 6\\nCAPITAL ALLOWANCES\\n16.\\nInitial and annual allowances for industrial buildings and\\nstructures\\n17.\\nBalancing allowances and charges for industrial buildings and\\nstructures\\n18.\\nDefinitions for sections 16, 17 and 18B\\n18A.\\n[Repealed]\\n18B.\\nTransitional provisions for capital expenditure incurred on\\nindustrial buildings or structures on or after 23 February 2010\\n18C.\\nInitial and annual allowances for certain buildings and structures\\n19.\\nInitial and annual allowances for machinery or plant\\n19A.\\nAllowances of 3 years or 2 years write‑off for machinery and\\nplant, and 100% write‑off for computer, prescribed automation\\nequipment and robot, etc.\\n19B.\\nWriting‑down allowances for intellectual property rights\\n19C.\\nWriting‑down allowances for approved cost‑sharing agreement\\nfor research and development activities\\n19D.\\nWriting‑down allowance for IRU\\n19E.\\nUse of open‑market price for making allowances under\\nsections 19, 19A and 19D\\n20.\\nBalancing allowances and charges for machinery or plant\\n21.\\nReplacement of machinery or plant\\n22.\\nExpenditure on machinery or plant\\n22A.\\nOrder of set‑off of allowances\\n23.\\nCarry forward of allowances\\n24.\\nSpecial provisions as to certain sales\\n25.\\nSpecial provisions as to certain transfers\\nIncome Tax Act 1947\\n5\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nPART 7\\nASCERTAINMENT OF CERTAIN INCOME\\nSection\\n26.\\nProfits of insurers\\n26A.\\nAscertainment of income of member of Lloyd’s syndicate\\n27.\\nProfits of non‑resident shipowner or charterer\\n28.\\nProfits of non‑resident air transport and cable undertakings\\n29.\\n[Repealed]\\n30.\\n[Repealed]\\n31.\\nIncome arising from settlements\\n32.\\nValuation of trading stock on discontinuance or transfer of trade\\nor business\\n32A.\\nValuation of cost of trading stock converted from non‑trade or\\ncapital asset\\n33.\\nComptroller to disregard certain transactions and dispositions\\n33A.\\nSurcharge on adjustments under section 33\\n34.\\nDecision of Comptroller no bar to appeal\\n34A.\\nAdjustment on change of basis of computing profits of financial\\ninstruments resulting from FRS 39 or SFRS for Small Entities\\n34AA. Adjustment on change of basis of computing profits of financial\\ninstruments resulting from FRS 109 or SFRS(I) 9\\n34AAA.\\nChange of basis for computing profits from financial\\ninstruments for insurers\\n34AB. Chargeability of profit or loss from foreign exchange differences\\n34B.\\nIslamic financing arrangements\\n34C.\\nAmalgamation of companies\\n34CA. Transfer of businesses by insurer\\n34D.\\nTransactions not at arm’s length\\n34E.\\nSurcharge on transfer pricing adjustments\\n34F.\\nTransfer pricing documentation\\n34G.\\nModification of provisions for companies redomiciled in\\nSingapore\\n34H.\\nTax credits for approved redomiciled companies\\n34I.\\nAdjustments arising from adoption of FRS 115 or SFRS(I) 15\\n34J.\\nTax treatment arising from adoption of FRS 116 or SFRS(I) 16\\nPART 8\\nASCERTAINMENT OF STATUTORY INCOME\\n35.\\nBasis for computing statutory income\\nIncome Tax Act 1947\\n2020 Ed.\\n6\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nSection\\n35A.\\nCessation of source of income commenced before 1 January\\n1969\\n36.\\nPartnership\\n36A.\\nLimited liability partnership\\n36B.\\nRegistered business trusts\\n36C.\\nLimited partnership\\nPART 9\\nASCERTAINMENT OF ASSESSABLE INCOME\\n37.\\nAssessable income\\n37A.\\nAdjustment of capital allowances, losses or donations between\\nincome subject to tax at different rates\\n37AA. Deduction for donation of money by person related to or\\nconnected with company approved under section 13O or person,\\nmaster fund, etc., approved under section 13U\\n37B.\\nGroup relief for Singapore companies\\n37C.\\nTransfer of qualifying deduction between spouses\\n37D.\\nCarry‑back of capital allowances and losses\\n37E.\\nCarry‑back of capital allowances and losses between spouses\\n37F.\\nDeduction for incremental expenditure on research and\\ndevelopment\\n37G.\\nCash payout under Productivity and Innovation Credit Scheme\\n37H.\\nProductivity and Innovation Credit bonus\\n37I.\\nModification of sections 37G and 37H in their application to\\npartnership\\n37J.\\nEnhanced deduction or allowance under Productivity and\\nInnovation Credit Plus Scheme\\n37K.\\nAbusive PIC arrangements\\n37L.\\nPromoters of abusive PIC arrangements\\n37M.\\nPenalties for false information, etc., resulting in payment under\\nsection 37G or 37H\\n37N.\\nDeduction for qualifying investments in qualifying start‑up\\ncompanies\\n37O.\\nDeduction for acquisition of shares of companies\\n37P.\\nTreatment of unabsorbed donations attributable to exempt\\nincome\\n37Q.\\nExclusion of expenditure or payment subsidised by capital grant\\n37R.\\nCash payout under Enterprise Innovation Scheme\\n37S.\\nPenalties for false information, etc., resulting in payment under\\nsection 37R\\nIncome Tax Act 1947\\n7\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nPART 10\\nASCERTAINMENT OF CHARGEABLE INCOME\\nAND PERSONAL RELIEFS\\nSection\\n38.\\nChargeable income\\n39.\\nRelief and deduction for resident individual\\n39A.\\nLimit on total deduction under section 39\\n40.\\n[Repealed]\\n40A.\\nRelief for non‑resident public entertainers\\n40B.\\nRelief for non‑resident employees\\n40C.\\nRelief for non‑resident SRS members\\n40D.\\nRelief for non‑resident deriving income from activity as public\\nentertainer and employee, etc.\\n41.\\nProof of claims for deduction or relief\\nPART 11\\nRATES OF TAX\\n42.\\nRates of tax upon individuals\\n42A.\\nRebate for children of family\\n43.\\nRate of tax upon companies and others\\n43A.\\nConcessionary rate of tax for Asian Currency Unit, Fund\\nManager and securities company\\n43B.\\nSpecial rate of tax for non‑resident shipowner or charterer or air\\ntransport undertaking\\n43C.\\nExemption and concessionary rate of tax for insurance and\\nreinsurance business\\n43D.\\nConcessionary rate of tax for headquarters company\\n43E.\\nConcessionary rate of tax for Finance and Treasury Centre\\n43F.\\nConcessionary rate of tax for offshore leasing of machinery and\\nplant\\n43G.\\nConcessionary rate of tax for trustee company\\n43H.\\nConcessionary rate of tax for income derived from debt\\nsecurities\\n43I.\\nConcessionary rate of tax for global trading company and\\nqualifying company\\n43J.\\nConcessionary rate of tax for financial sector incentive company\\n43K.\\nConcessionary rate of tax for provision of processing services to\\nfinancial institutions\\n43L.\\nConcessionary rate of tax for shipping investment manager\\nIncome Tax Act 1947\\n2020 Ed.\\n8\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nSection\\n43M.\\nConcessionary rate of tax for trust income to which beneficiary\\nis entitled\\n43MA.Concessionary rate of tax for estate income received by\\nbeneficiary, etc.\\n43N.\\nConcessionary rate of tax for leasing of aircraft and aircraft\\nengines\\n43O.\\nConcessionary rate of tax for aircraft investment manager\\n43P.\\nConcessionary rate of tax for container investment enterprise\\n43Q.\\nConcessionary rate of tax for container investment manager\\n43R.\\nConcessionary rate of tax for approved insurance brokers\\n43S.\\nConcessionary rate of tax for income derived from managing\\nqualifying registered business trust or company\\n43T.\\nConcessionary rate of tax for ship broking and forward freight\\nagreement trading\\n43U.\\nConcessionary rate of tax for shipping‑related support services\\n43V.\\nConcessionary rate of tax for income derived from managing\\napproved venture company\\n43W.\\nConcessionary rate of tax for international growth company\\n43X.\\nConcessionary rate of tax for intellectual property income\\nPART 12\\nDEDUCTION OF TAX AT SOURCE\\n44.\\n[Repealed]\\n44A.\\n[Repealed]\\n45.\\nWithholding of tax in respect of interest paid to non‑resident\\npersons\\n45A.\\nApplication of section 45 to royalties, management fees, etc.\\n45AA. Tax deemed withheld and recoverable from person in breach of\\ncondition imposed under section 13(4)\\n45B.\\nApplication of section 45 to non‑resident director’s\\nremuneration\\n45C.\\nApplication of section 45 to distribution by unit trust\\n45D.\\nApplication of section 45 to gains from real property transaction\\n45E.\\nApplication of section 45 to withdrawals by non‑citizen SRS\\nmembers, etc.\\n45EA. Approval of deduction of investment from SRS account of\\nnon‑citizen\\n45F.\\nApplication of section 45 to income from profession or vocation\\ncarried on by non‑resident individual, etc.\\nIncome Tax Act 1947\\n9\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nSection\\n45G.\\nApplication of section 45 to distribution from any real estate\\ninvestment trust\\n45GA. Application of section 45 to income derived as public entertainer\\n45H.\\nApplication of section 45 to commission or other payment of\\nlicensed international market agent\\n45I.\\nSections 45 and 45A not applicable to certain payments\\n45J.\\nApplication of section 45, etc., to Government\\nPART 13\\nALLOWANCES FOR TAX CHARGED\\n46.\\nTax deducted from interests, etc.\\n47.\\n[Repealed]\\nPART 14\\nRELIEF AGAINST DOUBLE TAXATION\\n48.\\n[Repealed]\\n49.\\nAvoidance of double taxation arrangements\\n50.\\nTax credits\\n50A.\\nUnilateral tax credits\\n50B.\\nTax credits for trust income to which beneficiary is entitled\\n50BA. Tax credits for estate income received by beneficiary, etc.\\n50C.\\nPooling of credits\\nPART 15\\nPERSONS CHARGEABLE\\nHusband and wife\\n51.\\nIncome of wife\\nTrustees, agents and curators\\n52.\\nChargeability of trustees, etc.\\n53.\\nChargeability of agent of person residing out of Singapore\\n54.\\nLiability of person chargeable in respect of incapacitated person\\n55.\\nLiability of managers of companies or bodies of persons\\n56.\\nIndemnification of representative\\n57.\\nPower to appoint agent, etc., for recovery of tax\\n58.\\nDeceased persons\\nIncome Tax Act 1947\\n2020 Ed.\\n10\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nSection\\n59.\\nDuty of liquidator on winding up of company or limited liability\\npartnership\\n60.\\nChargeability of joint trustees\\n61.\\n[Repealed]\\nPART 16\\nRETURNS\\n62.\\nNotice of chargeability and returns\\n62A.\\nThe basic rule: Singapore dollar to be used\\n62B.\\nCurrency other than Singapore dollar to be used in certain\\ncircumstances\\n63.\\nFurnishing of estimate of chargeable income if no return is made\\nunder section 62\\n64.\\nComptroller may call for further returns\\n65.\\nPower to call for returns\\n65A.\\nStatement of bank accounts, assets, etc.\\n65B.\\nPower of Comptroller to obtain information\\n65C.\\nFailure to comply with section 64, 65, 65A or 65B\\n65D.\\nSection 65B notice applies despite duty of secrecy under\\nBanking Act 1970 or Trust Companies Act 2005\\n65E.\\nSection 65B notice may be subject to confidentiality duty\\n65F.\\nArrest of person\\n65G.\\nNo unnecessary restraint\\n65H.\\nArresting officer to be armed\\n65I.\\nSearch of place entered by person sought to be arrested\\n65J.\\nArrested person may be orally examined\\n65K.\\nDisposal of item furnished or seized\\n66.\\nReturns to be deemed to be furnished by due authority\\n67.\\nKeeping of books of account and giving of receipts\\n68.\\nOfficial information and secrecy, and returns by employer\\n68A.\\nDuty to collect and retain information of certain persons, etc.\\n69.\\nLists to be prepared by representative or agent\\n70.\\nOccupiers to furnish return of rent payable\\n71.\\nReturn to be made by partnership\\n71A.\\n[Repealed]\\nPART 17\\nASSESSMENTS AND OBJECTIONS\\n72.\\nComptroller to make assessments\\nIncome Tax Act 1947\\n11\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nSection\\n73.\\nAdvance assessments\\n74.\\nAdditional assessments\\n74A.\\nRevised assessments as relief for late GST registration\\n75.\\nWaiver of small assessments\\n76.\\nService of notices of assessment and revision of assessment\\n77.\\nErrors and defects in assessment and notice\\nPART 18\\nAPPEALS\\n78.\\nBoard of Review\\n79.\\nRight of appeal\\n80.\\nHearing and disposal of appeals\\n80A.\\nHearing of appeal by committee where member becomes\\nunavailable\\n80B.\\nHearing of appeal by single member where member becomes\\nunavailable\\n81.\\nAppeals to General Division of High Court\\n82.\\nCases stated for General Division of High Court\\n83.\\nProceedings before Board\\n84.\\nAssessments to be final and conclusive\\nPART 19\\nCOLLECTION, RECOVERY AND REPAYMENT OF TAX\\n85.\\nTime within which payment is to be made\\n86.\\nRecovery of tax from persons leaving Singapore\\n87.\\nPenalty for non‑payment of tax and enforcement of payment\\n88.\\nChange of address\\n89.\\nSuit for tax by Comptroller\\n90.\\nStatement of Comptroller sufficient\\n91.\\nDeduction of tax from emoluments and pensions\\n92.\\nRemission, reduction or refund of tax\\n92A.\\nRemission of tax of companies for year of assessment 2011\\n92B.\\nCash grant for companies for year of assessment 2011\\n92C.\\nCash grant for companies for year of assessment 2012\\n92D.\\nRemission of tax of companies for years of assessment 2013,\\n2014 and 2015\\n92E.\\nRemission of tax of companies for year of assessment 2016\\n92F.\\nRemission of tax of companies for year of assessment 2017\\nIncome Tax Act 1947\\n2020 Ed.\\n12\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nSection\\n92G.\\nRemission of tax of companies for year of assessment 2018\\n92H.\\nRemission of tax of companies for year of assessment 2019\\n92I.\\nRemission of tax of companies for year of assessment 2020\\n93.\\nRepayment of tax\\n93A.\\nRelief in respect of error or mistake\\nPART 20\\nOFFENCES AND PENALTIES\\n94.\\nGeneral penalties\\n94A.\\nPenalty for failure to make return\\n95.\\nPenalty for incorrect return, etc.\\n96.\\nTax evasion and wilful action to obtain PIC bonus\\n96A.\\nSerious fraudulent tax evasion and action to obtain PIC bonus\\n97.\\nPenalties for offences by authorised and unauthorised persons\\n98.\\nPenalty for obstructing Comptroller or officers\\n99.\\nTax to be payable despite any proceedings for penalties\\n100.\\nProvisions relating to penalty\\n101.\\nConsent for prosecution\\n102.\\nService of summons\\n102A.\\nNotice to attend court\\n103.\\nSaving for criminal proceedings\\n104.\\nAdmissibility of certain statements and documents as evidence\\n104A.\\nProtection of informers\\n105.\\nJurisdiction of court\\nPART 20A\\nEXCHANGE OF INFORMATION UNDER AVOIDANCE\\nOF DOUBLE TAXATION ARRANGEMENTS AND\\nEXCHANGE OF INFORMATION ARRANGEMENTS\\n105A.\\nInterpretation of this Part\\n105B.\\nPurpose of this Part\\n105BA. Exchange of information arrangement\\n105C.\\n[Repealed]\\n105D.\\nRequest for information\\n105E.\\nComptroller to serve notice of request on certain persons\\n105F.\\nPower of Comptroller to obtain information\\n105G.\\nPower of Comptroller to obtain information from other\\nauthorities\\nIncome Tax Act 1947\\n13\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nSection\\n105GA. Information may be used for administration of Act\\n105H.\\nRules for purposes of this Part\\n105HA. Confidentiality requirements for judicial review proceedings\\nPART 20B\\nINTERNATIONAL AGREEMENTS TO\\nIMPROVE TAX COMPLIANCE\\n105I.\\nInterpretation of this Part\\n105J.\\nPurpose of this Part\\n105K.\\nInternational tax compliance agreements\\n105L.\\nProvision of information to Comptroller\\n105M.\\nOffences\\n105MA.Anti‑avoidance\\n105N.\\nPower of Comptroller to obtain information\\n105O.\\nInformation may be used for administration of Act\\n105P.\\nRegulations to implement international tax compliance\\nagreements, etc.\\n105PA. Duty to provide information under regulations prevails over duty\\nof secrecy, etc.\\n105Q.\\nConfidentiality requirements for judicial review proceedings\\nPART 21\\nMISCELLANEOUS\\n105R.\\nRevocation of approval\\n105S.\\nConditions for application of tax incentive treated as conditions\\nof approval\\n106.\\nPowers to amend Schedules\\n107.\\nVariable capital companies or VCCs\\n108.\\nAdvance rulings\\nFirst Schedule — Institution, authority, person\\nor fund exempted\\nSecond Schedule — Rates of tax\\nThird Schedule\\nFourth Schedule — Prescribed sections\\nFifth Schedule — Child relief\\nSixth Schedule — Number of years of\\nworking life of asset\\nSeventh Schedule — Advance rulings\\nIncome Tax Act 1947\\n2020 Ed.\\n14\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nSection\\nEighth Schedule — Information to be included in a request\\nfor information under Part 20A\\nNinth Schedule — Specified public schemes\\nTenth Schedule — Tenth Schedule entities\\nEleventh Schedule — Prescribed information\\nAn Act to impose a tax upon incomes and to regulate the collection\\nthereof.\\n[1 January 1948]\\nPART 1\\nPRELIMINARY\\nShort title\\n1. This Act is the Income Tax Act 1947.\\nInterpretation\\n2.—(1) In this Act, unless the subject or context otherwise\\nrequires —\\n“account with the electronic service”, in relation to any person,\\nmeans a computer account within the electronic service\\nwhich is assigned by the Comptroller to that person for the\\nstorage and retrieval of electronic records relating to that\\nperson;\\n“accountant” means a public accountant within the meaning of\\nthe Accountants Act 2004;\\n“advocate and solicitor” means an advocate and solicitor within\\nthe meaning of the Legal Profession Act 1966;\\n“annual value” has the meaning given by section 2 of the\\nProperty Tax Act 1960, and is to be ascertained in the same\\nmanner as annual value is ascertained under that Act;\\nIncome Tax Act 1947\\n15\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“approved pension or provident fund or society” means a\\npension or provident fund or society approved by the\\nComptroller under section 5;\\n[Deleted by Act 33 of 2022 wef 26/04/2024]\\n“basis period” for any year of assessment means the period on\\nthe profits of which tax for that year falls to be assessed;\\n“body of persons” means any body politic, corporate or\\ncollegiate,\\nany\\ncorporation\\nsole\\nand\\nany\\nfraternity,\\nfellowship or society of persons whether corporate or\\nunincorporate but does not include a company or a\\npartnership;\\n“Commonwealth”, in relation to a country, means any country\\nrecognised by the President to be a Commonwealth country\\nand “part of the Commonwealth” means any Commonwealth\\ncountry, colony, protectorate or protected state or any other\\nterritory\\nadministered\\nby\\nthe\\ngovernment\\nof\\nany\\nCommonwealth country;\\n“company” means any company incorporated or registered\\nunder any law in force in Singapore or elsewhere;\\n“Comptroller” means the Comptroller of Income Tax appointed\\nunder section 3(1) and includes, for all purposes of this Act\\nexcept the exercise of the powers conferred upon the\\nComptroller by sections 34F(9), 37L(7), 37M(5), 37S(8),\\n67(1)(a), 95, 96, 96A and 101, a Deputy Comptroller or an\\nAssistant Comptroller so appointed;\\n[Act 30 of 2023 wef 30/10/2023]\\n“country” includes a territory;\\n“crops” includes any form of vegetable produce;\\n“earned income” means the statutory income of an individual\\nreduced by any deduction made under section 37(3)(a) or\\n37D or claimed under section 37C (excluding any donation\\nreferred to in section 37C(8)(c)) or 37E from —\\n(a) gains or profits from any trade, business, profession,\\nvocation or employment on which tax is payable\\nIncome Tax Act 1947\\n2020 Ed.\\n16\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nunder section 10(1), where the Comptroller is\\nsatisfied that such gains or profits are immediately\\nderived from the carrying on or exercise by such\\nindividual\\nof\\nsuch\\ntrade,\\nbusiness,\\nprofession,\\nvocation or employment; and\\n(b) any\\npension\\non\\nwhich\\ntax\\nis\\npayable\\nunder\\nsection 10(1)(e) given to the individual in respect\\nof the past services of such individual or any\\ndeceased individual;\\n“electronic record” has the meaning given by the Electronic\\nTransactions Act 2010;\\n“electronic service” means the system established under\\nsection 29 of the Inland Revenue Authority of Singapore\\nAct 1992;\\n[Act 33 of 2022 wef 26/04/2024]\\n“employee” —\\n(a) in relation to a company, includes a director of the\\ncompany; and\\n(b) in relation to a statutory board, includes the\\nchairperson and any member of the statutory board,\\nand “employer” and other cognate expressions are to be\\nconstrued accordingly;\\n“executor” means any executor, administrator or other person\\nadministering the estate of a deceased person;\\n“Fund Manager” or “fund manager” means a company holding a\\ncapital markets services licence under the Securities and\\nFutures Act 2001 for fund management or that is exempted\\nunder that Act from holding such a licence;\\n“goods” includes currency and specie;\\n“harvesting” includes the collection of crops, however effected;\\n“Hindu joint family” means what in any system of law\\nprevailing in India is known as a Hindu joint family or a\\nco‑parcenary;\\nIncome Tax Act 1947\\n17\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“holding company” has the meaning given by section 5 of the\\nCompanies Act 1967;\\n[Act 33 of 2022 wef 04/11/2022]\\n“incapacitated person” means an individual —\\n(a) who is below 21 years of age; or\\n(b) who lacks capacity to make a decision for himself or\\nherself in relation to any matter at the material time\\nbecause of an impairment of, or a disturbance in the\\nfunctioning of, the mind or brain, whether such\\nimpairment\\nor\\ndisturbance\\nis\\npermanent\\nor\\ntemporary;\\n“information subject to legal privilege” means —\\n(a) communications between an advocate and solicitor\\nand his or her client or any person representing his or\\nher client made in connection with the giving of legal\\nadvice to the client; and\\n(b) communications between —\\n(i) an advocate and solicitor and his or her client or\\nany person representing his or her client; or\\n(ii) an advocate and solicitor or his or her client or\\nany such representative and any other person,\\n(b) made in connection with, or in contemplation of,\\njudicial proceedings and for the purposes of such\\nproceedings,\\nwhen such communications are in the possession of a person\\nwho is entitled to possession of them, but excluding, in any\\ncase, any communications made with the intention of\\nfurthering a criminal purpose;\\n“institution of a public character” has the meaning given by the\\nCharities Act 1994;\\n“issued shares” excludes treasury shares;\\nIncome Tax Act 1947\\n2020 Ed.\\n18\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“life annuity” means an annuity payable under a policy issued to\\nan SRS member for a term ending with, or at a time\\nascertainable only by reference to, the end of his or her life;\\n“limited liability partnership” means any limited liability\\npartnership incorporated or registered under any law in\\nforce in Singapore or elsewhere;\\n“limited partnership” means a limited partnership registered or\\nformed under any law in force in Singapore or elsewhere;\\n“offshore mineral” means mineral from the seabed or that is\\ndissolved in sea water;\\n“offshore renewable energy” means —\\n(a) ocean thermal power;\\n(b) offshore geothermal power;\\n(c) offshore solar power;\\n(d) offshore wind power;\\n(e) osmotic power;\\n(f) tidal power; or\\n(g) wave power;\\n“permanent establishment” means a fixed place where a\\nbusiness is wholly or partly carried on including —\\n(a) a place of management;\\n(b) a branch;\\n(c) an office;\\n(d) a factory;\\n(e) a warehouse;\\n(f) a workshop;\\n(g) a farm or plantation;\\n(h) a mine, oil well, quarry or other place of extraction of\\nnatural resources;\\nIncome Tax Act 1947\\n19\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(i) a building or work site or a construction, installation\\nor assembly project,\\nand without limiting the foregoing, a person is deemed to\\nhave a permanent establishment in Singapore if that\\nperson —\\n(j) carries on supervisory activities in connection with a\\nbuilding or work site or a construction, installation or\\nassembly project; or\\n(k) has another person acting on that person’s behalf in\\nSingapore who —\\n(i) has and habitually exercises an authority to\\nconclude contracts;\\n(ii) maintains a stock of goods or merchandise for\\nthe purpose of delivery on behalf of that\\nperson; or\\n(iii) habitually secures orders wholly or almost\\nwholly for that person or for such other\\nenterprises as are controlled by that person;\\n“person” includes a company, body of persons and a Hindu joint\\nfamily;\\n“plantation” means any land used for the growing and\\nharvesting of crops;\\n“prescribed” means prescribed by rules or regulations made\\nunder this Act;\\n“prescribed minimum retirement age” has the meaning given by\\nthe Retirement and Re‑employment Act 1993;\\n“private hire car” means a motor car —\\n(a) that is used as a private hire car within the meaning of\\nthe Road Traffic Act 1961; and\\n(b) in respect of which a licence is issued under Part 5 of\\nthat Act for such use;\\nIncome Tax Act 1947\\n2020 Ed.\\n20\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“professional visit pass” means a professional visit pass issued\\nby the Controller of Immigration under the Immigration\\nRegulations;\\n“related party”, in relation to a person (A), means any person —\\n(a) who directly or indirectly controls A;\\n(b) who is being controlled directly or indirectly by A; or\\n(c) who, together with A, is directly or indirectly under\\nthe control of a common person;\\n[Act 33 of 2022 wef 04/11/2022]\\n“replanting” means the replacement of the crop of any product\\non any area of land by the planting on the same area —\\n(a) of a crop of the same product; or\\n(b) of a crop of a different product approved by the\\nMinister;\\n“research\\nand\\ndevelopment”\\nmeans\\nany\\nsystematic,\\ninvestigative and experimental study that involves novelty\\nor technical risk carried out in the field of science or\\ntechnology with the object of acquiring new knowledge or\\nusing the results of the study for the production or\\nimprovement of materials, devices, products, produce, or\\nprocesses, but does not include —\\n(a) quality control or routine testing of materials, devices\\nor products;\\n(b) research in the social sciences or the humanities;\\n(c) routine data collection;\\n(d) efficiency surveys or management studies;\\n(e) market research or sales promotion;\\n(f) routine\\nmodifications\\nor\\nchanges\\nto\\nmaterials,\\ndevices, products, processes or production methods;\\nor\\nIncome Tax Act 1947\\n21\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(g) cosmetic\\nmodifications\\nor\\nstylistic\\nchanges\\nto\\nmaterials,\\ndevices,\\nproducts,\\nprocesses\\nor\\nproduction methods;\\n“research and development organisation” means a body or an\\norganisation which provides research and development\\nservices for any trade or business;\\n“resident in Singapore” —\\n(a) in relation to an individual, means a person who, in\\nthe year preceding the year of assessment, resides in\\nSingapore except for such temporary absences\\ntherefrom\\nas\\nmay\\nbe\\nreasonable\\nand\\nnot\\ninconsistent with a claim by such person to be\\nresident in Singapore, and includes a person who is\\nphysically present or who exercises an employment\\n(other than as a director of a company) in Singapore\\nfor 183 days or more during the year preceding the\\nyear of assessment; and\\n(b) in relation to a company or body of persons, means a\\ncompany or body of persons the control and\\nmanagement of whose business is exercised in\\nSingapore;\\n“specially authorised officer” means an officer authorised under\\nsection 4(5) to exercise the powers mentioned in that\\nprovision;\\n“SRS account” means an account opened with an SRS operator\\nby an SRS member;\\n“SRS contribution cap”, in relation to an SRS member, means\\nthe maximum contribution prescribed under section 10G that\\nmay be made by the member to his or her SRS account in any\\nyear under the SRS;\\n“SRS member” means a member of the Supplementary\\nRetirement Scheme;\\nIncome Tax Act 1947\\n2020 Ed.\\n22\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“SRS operator” means any company approved by the Minister,\\nor such person as the Minister may appoint, for the purposes\\nof the Supplementary Retirement Scheme;\\n“subsidiary” has the meaning given by section 5 of the\\nCompanies Act 1967;\\n[Act 33 of 2022 wef 04/11/2022]\\n“Supplementary Retirement Scheme” or “SRS” means the\\nSupplementary\\nRetirement\\nScheme\\nestablished\\nby\\nregulations made under section 10G;\\n“tax” means the income tax imposed by this Act;\\n“treasury share” —\\n(a) in relation to a company incorporated under the\\nCompanies Act 1967 or any corresponding previous\\nwritten law, means a treasury share as defined in\\nsection 4(1) of that Act; and\\n(b) in relation to a company incorporated under the law\\nof a country other than Singapore, means a share\\nissued by the company which is subsequently\\nacquired and held by it;\\n“VCC Act” means the Variable Capital Companies Act 2018;\\n“work pass” means a work pass issued by the Controller of Work\\nPasses under the Employment of Foreign Manpower\\nAct 1990;\\n“year\\nof\\nassessment”\\nmeans\\nthe\\nperiod\\nof\\n12\\nmonths\\ncommencing on 1 January 1948, and each subsequent\\nperiod of 12 months.\\n[2/2016; 34/2016; 39/2017; 45/2018; 28/2019; 32/2019;\\n41/2020]\\n(1A) The terms “non‑umbrella VCC”, “share”, in relation to a\\nVCC, “sub‑fund”, “umbrella VCC”, and “VCC” have the meanings\\ngiven to them in the VCC Act.\\n[28/2019]\\nIncome Tax Act 1947\\n23\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(2) For the purposes of this Act, where an individual is present in\\nSingapore for any part of a day, his or her presence on that day is\\ncounted as one day.\\n(3) In this Act, a ship (as defined in section 2(1) of the Merchant\\nShipping Act 1995) is used for offshore oil or gas activity if it is used\\nfor the exploration or exploitation of offshore oil or gas, or to support\\nany activity that is ancillary to such exploration or exploitation.\\n[2/2016]\\n(3A) In this Act, a ship (as defined in section 2(1) of the Merchant\\nShipping Act 1995) is used for offshore renewable energy activity or\\noffshore mineral activity if it is used for the exploration or\\nexploitation of offshore renewable energy or offshore mineral, or\\nto support any activity that is ancillary to such exploration or\\nexploitation.\\n[34/2016]\\n(4) In this Act, to avoid doubt, a reference to the spouse of a person\\nmeans a spouse who is of the opposite sex to that person.\\nPART 2\\nADMINISTRATION\\nAppointment of Comptroller and other officers\\n3.—(1) For the due administration of this Act, the Minister may, by\\nnotification in the Gazette, appoint a Comptroller of Income Tax, and\\nsuch Deputy Comptrollers, Assistant Comptrollers and other officers\\nand persons as may be necessary.\\n(2) The Minister may, by notification in the Gazette, appoint a\\nSenior Investigation Officer, Income Tax, and may by such or a\\nsubsequent notification authorise such officer to exercise all or such\\nof the powers of the Comptroller under this Act as may be specified in\\nsuch notification but without prejudice to the exercise by the\\nComptroller of such powers.\\nAssignment of function or power to public body\\n3A.—(1) This section applies where the Minister, after consultation\\nwith the responsible Minister of a public body, by notification in the\\nIncome Tax Act 1947\\n2020 Ed.\\n24\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nGazette assigns a function or power under a provision of this Act or\\nany subsidiary legislation made under this Act (called in this section\\nan incentive provision) to the public body.\\n[41/2020]\\n(2) Starting on the date the Minister assigns a function or power\\nunder an incentive provision to a public body in accordance with\\nsubsection (1), a reference in that incentive provision to an authorised\\nbody is to the public body.\\n[41/2020]\\n(3) The public body, when carrying out a function or exercising a\\npower under an incentive provision, is treated as carrying out a\\nfunction or exercising a power conferred on the public body under the\\nAct that establishes it.\\n[41/2020]\\n(4) The public body must carry out a function or exercise a power\\nunder an incentive provision in accordance with any directions given\\nby the Minister.\\n[41/2020]\\n(5) A member of the public body who is not from the public sector\\nmust not be involved in the carrying out of a function or exercise of a\\npower under an incentive provision by the public body.\\n[41/2020]\\n(6) The public body must not delegate a function or power under an\\nincentive provision to any of its members, or any other person, who is\\nnot from the public sector.\\n[41/2020]\\n(7) Without affecting any obligation as to secrecy or other\\nrestriction against the disclosure of information imposed by any\\nlaw or contract —\\n(a) a member of the public body who is from the public sector;\\nor\\n(b) a person to whom a function or power under an incentive\\nprovision has been delegated,\\nthat receives or obtains information relating to a person for the\\npurposes of an incentive provision, must not disclose or provide\\nIncome Tax Act 1947\\n25\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\naccess to such information to a member of the public body, or any\\nother person, who is not from the public sector.\\n[41/2020]\\n(8) Subsection (7) does not apply to the following information:\\n(a) information the disclosure of which has been approved by\\nthe Minister;\\n(b) information relating to a person —\\n(i) for which consent for disclosure has been obtained\\nfrom the person; or\\n(ii) that is already in the possession of the public body;\\n(c) information that is publicly available.\\n[41/2020]\\n(9) The public body may carry out a function or exercise a power\\nunder an incentive provision despite the absence of a quorum at any\\nmeeting of the public body because of subsection (5) or (7), and the\\nabsence of a quorum does not affect the validity of anything done by\\nthe public body at the meeting.\\n[41/2020]\\n(10) An assignment of a function or power under an incentive\\nprovision in accordance with subsection (1) does not affect or prevent\\nthe carrying out of any function or exercise of any power by the\\nMinister.\\n[41/2020]\\n(11) In this section —\\n(a) a person is from the public sector if the person is a public\\nofficer or an employee of a public body; and\\n(b) “public body” and “responsible Minister”, in relation to a\\npublic body, have the meanings given by section 2(1) of the\\nPublic Sector (Governance) Act 2018.\\n[41/2020]\\nPowers of Comptroller\\n4.—(1) The Comptroller may, by notification in the Gazette or in\\nwriting, authorise any person, within or without Singapore, to\\nIncome Tax Act 1947\\n2020 Ed.\\n26\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nperform or to assist in the performance of any specific duty imposed\\nupon the Comptroller by this Act.\\n(2) Subject to such conditions as the Comptroller may specify, the\\nComptroller may, by notification in the Gazette, direct that any\\ninformation, return or document required to be supplied, forwarded\\nor given to the Comptroller may be supplied to such other person,\\nbeing a person who has made and subscribed a declaration of secrecy\\nin accordance with section 6(1), as the Comptroller may direct.\\n(3) The Comptroller is responsible for the assessment and\\ncollection of tax and must pay all amounts collected in respect\\nthereof into the Consolidated Fund.\\n(4) The Comptroller may specify the form of any return, claim,\\nstatement or notice to be made or given under this Act.\\n(5) The Comptroller may further authorise a person authorised\\nunder subsection (1) to investigate offences under this Act, to\\nexercise any power in sections 65B(1A), (1B), (1C) and (1D), 65F,\\n65G, 65H and 65I.\\n[45/2018]\\nApproved pension or provident fund or society\\n5. The Comptroller may, subject to such conditions as the\\nComptroller may think fit to impose, approve any pension or\\nprovident fund or society for the purposes of this Act and may\\n(without prejudice to the exercise of any power in that behalf\\nconferred on the Comptroller by any condition so imposed) at any\\ntime withdraw any approval previously given in respect of any such\\nfund or society.\\nOfficial secrecy\\n6.—(1) Every person having any official duty or being employed in\\nthe administration of this Act must regard and deal with all\\ndocuments, information, returns, assessment lists and copies of\\nsuch lists relating to the income or items of the income of any person,\\nas secret and confidential, and must make and subscribe a declaration\\nin the form prescribed to that effect before the Comptroller or a\\nMagistrate.\\nIncome Tax Act 1947\\n27\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(2) Every person having possession of or control over any\\ndocuments, information, returns, assessment lists or copies of such\\nlists relating to the income or items of income of any person, who at\\nany time otherwise than for the purpose of this Act or with the express\\nauthority of the President —\\n(a) communicates\\nor\\nattempts\\nto\\ncommunicate\\nsuch\\ninformation or anything contained in such documents,\\nreturns, lists or copies to any person; or\\n(b) suffers or permits any person to have access to any such\\ninformation or to anything contained in such documents,\\nreturns, lists or copies,\\nshall be guilty of an offence.\\n(3) A person appointed under, or employed in carrying out, the\\nprovisions of this Act is not required to produce in any court any\\nreturn, document or assessment, or to divulge or communicate to any\\ncourt any matter or thing coming under the person’s notice in the\\nperformance of the person’s duties under this Act except as may be\\nnecessary for the purpose of carrying into effect the provisions of this\\nAct, or in order to institute a prosecution, or in the course of a\\nprosecution, for any offence under this Act.\\n(4) The obligation as to secrecy imposed by this section does not\\nprevent the disclosure to the authorised officers of the government of\\nany other country —\\n(a) of such facts as may be necessary to enable the proper\\nrelief from income tax to be given in either country, where\\nprovision exists for the granting of relief in respect of taxes\\npaid in the other country; or\\n(b) of any information for the purpose of discharging an\\nobligation of Singapore under an arrangement between the\\ngovernment of that country and the Government of\\nSingapore that has effect under section 49 or 105BA, or\\nunder\\nany\\nagreement\\nor\\narrangement\\nbetween\\nthe\\ngovernment of that country and the Government of\\nSingapore and to which Part 20B applies.\\nIncome Tax Act 1947\\n2020 Ed.\\n28\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(4AA) Subsection (4) also applies to an agreement or arrangement\\nto which Part 20B applies between the Minister or the Minister’s\\nauthorised representative and the authority of another country that\\nexercises powers or carries out duties corresponding to a power or\\nduty of the Minister or representative, as if —\\n(a) a reference to the Government of Singapore is a reference\\nto the Minister or the Minister’s authorised representative;\\nand\\n(b) a reference to the government of another country is a\\nreference to that authority of the other country.\\n[39/2017]\\n(4A) The obligation as to secrecy imposed by this section does not\\nprevent the disclosure to the authorised officers of the government of\\nany other country of any information that the Comptroller considers\\nto be foreseeably relevant to the administration or enforcement of that\\nother country’s laws concerning any tax of that country, pursuant to\\nthe terms of an arrangement that has effect under section 49 or\\n105BA.\\n[37/2014]\\n(4B) The obligation as to secrecy imposed by this section does not\\nprevent the disclosure to an authorised officer of the government of\\nanother country of any information concerning any person if —\\n(a) the person gives express written consent to the disclosure;\\nand\\n(b) the disclosure is for a purpose, and satisfies the conditions,\\nprescribed by rules made under section 7.\\n[41/2020]\\n(5) Despite anything in this section, the Comptroller must permit\\nthe Minister, the Auditor‑General or any officer duly authorised in\\nthat behalf by the Auditor‑General to have such access to any records\\nor documents as may be necessary for the performance of his or her\\nofficial duties.\\n(6) The Minister, the Auditor‑General or any such officer is deemed\\nto be a person employed in carrying out the provisions of this Act for\\nthe purposes of this section.\\nIncome Tax Act 1947\\n29\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(7) Despite anything in this section, the Comptroller may transmit\\nany document, information or return received by him or her or in his\\nor her possession under this Act to the Commissioner of Estate\\nDuties; and the Commissioner of Estate Duties may, despite anything\\ncontained in any written law for the time being in force in Singapore\\nrelating to the proof of documents, produce or cause to be produced in\\nany court, in any proceedings relating to estate or death duties, a copy\\nof any particulars contained in any document or return so transmitted,\\ncertified by him or her or on his or her behalf to be a correct copy of\\nsuch particulars.\\n(8) For the purposes of subsection (7), the Commissioner of Estate\\nDuties —\\n(a) may produce or cause to be produced the original of any\\nsuch document or return in any case where it is necessary\\nto prove the handwriting or the signature of the person who\\nwrote, made, signed or furnished such document or return,\\nbut only for the purpose of such proof;\\n(b) must not in any case be compelled to produce in any court\\neither the original of such document or return or a copy of\\nany particulars contained in such document or return.\\n(9) Despite anything in this section, the Comptroller may transmit\\nto the Comptroller of Property Tax, the Comptroller of Goods and\\nServices Tax, the Chief Assessor or the Commissioner of Stamp\\nDuties any information which may be required by any of them in the\\nperformance of their duties, or may permit such access to any records\\nor documents as may be necessary for those purposes.\\n(10) Despite anything in this section, the Comptroller may furnish\\nto the Chief Executive Officer of the Central Provident Fund Board\\nany information which may be required by him or her in the\\nperformance of his or her duties, or may permit such access to any\\nrecords or documents as may be necessary for that purpose.\\n(10A) Despite anything in this section, the Comptroller may, for the\\npurpose of enabling the Chief Statistician to perform his or her duties\\nunder the Statistics Act 1973, furnish and permit the Chief\\nStatistician access to any information and records prescribed in\\nrules made under section 7.\\nIncome Tax Act 1947\\n2020 Ed.\\n30\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(10B) Despite anything in this section, the Comptroller may furnish\\nto the head of a law enforcement agency any information —\\n(a) that may be required by the law enforcement agency for the\\npurpose of an investigation or prosecution of a person for\\nan offence specified in the First or Second Schedule to the\\nCorruption, Drug Trafficking and Other Serious Crimes\\n(Confiscation of Benefits) Act 1992; or\\n(b) that the Comptroller has reasonable grounds to suspect\\naffords evidence of the commission of such an offence.\\n[45/2018]\\n(10C) The following persons, namely:\\n(a) the head of a law enforcement agency to whom any\\ninformation is furnished under subsection (10B) for the\\npurpose mentioned in subsection (10B)(a);\\n(b) any person under the command of the head of the law\\nenforcement agency;\\n(c) any\\nperson\\nto\\nwhom\\ninformation\\nis\\ndisclosed\\nin\\ncompliance with this subsection,\\nmust not disclose to any other person such information except where\\nit is necessary for that same purpose, and any person in paragraph (a),\\n(b) or (c) who contravenes this subsection shall be guilty of an\\noffence.\\n[45/2018]\\n(11) Despite anything in this section, the Comptroller may lay a\\ncomplaint of professional misconduct against any person in the\\nperson’s\\nprofessional\\ndealings\\nwith\\nthe\\nComptroller\\nto\\nthe\\nappropriate authority empowered to take disciplinary action against\\nthe person and may in connection with the complaint furnish any\\nrelevant documents or information.\\n(11A) Despite anything in this section, the Comptroller —\\n(a) may furnish to —\\n(i) the chief executive officer of the Inland Revenue\\nAuthority of Singapore established under section 3\\nIncome Tax Act 1947\\n31\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nof the Inland Revenue Authority of Singapore\\nAct 1992; or\\n(ii) an officer duly authorised by the chief executive\\nofficer,\\n(a) any information required for the performance of the\\nofficial duties of the chief executive officer or authorised\\nofficer in administering any of the public schemes\\nspecified in the Ninth Schedule; and\\n(b) may allow the chief executive officer or authorised officer\\nsuch access to any records or documents as may be\\nnecessary for the performance of those official duties.\\n[2/2016; 41/2020]\\n(11B) Despite anything in this section, the Comptroller may allow a\\nperson who is authorised by the chief executive officer of the Inland\\nRevenue Authority of Singapore such access to any records or\\ndocuments as may be necessary for the person to conduct an audit in\\nrelation to the administration of any public scheme specified in the\\nNinth Schedule, including the audit of any information technology\\nsystem used by the Inland Revenue Authority of Singapore for such\\nadministration.\\n[27/2021]\\n(11C) A person authorised by the chief executive officer of the\\nInland Revenue Authority of Singapore under subsection (11B) —\\n(a) must make and subscribe a declaration of secrecy in\\naccordance with subsection (1);\\n(b) must not disclose to any person, or allow any person access\\nto, anything contained in the records or documents; and\\n(c) must not use or make any copy of the records or documents\\nor anything contained in the records or documents, other\\nthan\\nfor\\nthe\\npurpose\\nof\\nthe\\naudit\\nmentioned\\nin\\nsubsection (11B).\\n[27/2021]\\n(11D) A person who contravenes subsection (11C)(b) or (c) shall be\\nguilty of an offence.\\n[27/2021]\\nIncome Tax Act 1947\\n2020 Ed.\\n32\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(12) Despite subsections (1) and (2) and without affecting\\nsubsections (5) to (11D) and (12B), the Comptroller may disclose\\ninformation relating to income or items of income of any person to\\nany of the following with the express consent of the person:\\n(a) any public officer or officer of a statutory board for the\\nperformance of his or her official duties;\\n(b) any other person (called A in this subsection and\\nsubsection (12A)) who is engaged by the Government or\\na statutory board to assist any public officer or officer of a\\nstatutory board in performing any of the officer’s official\\nduties if a public officer or officer of the statutory board (as\\nthe case may be), duly authorised by the Comptroller for\\nthis purpose, has obtained a declaration of secrecy from A\\nin accordance with subsection (1).\\n[Act 33 of 2022 wef 04/11/2022]\\n(12A) A shall be guilty of an offence if A —\\n(a) discloses to any person, or allows any person access to, any\\ninformation disclosed to A under subsection (12); or\\n(b) uses or makes any copy of any record or document\\ncontaining the information,\\nother than for the purpose of rendering the assistance mentioned in\\nsubsection (12)(b).\\n[Act 33 of 2022 wef 04/11/2022]\\n(12B) Despite subsections (1) and (2) and without affecting\\nsubsections\\n(5)\\nto\\n(12),\\nthe\\nComptroller\\nmay\\ndisclose\\nany\\ninformation prescribed in the Eleventh Schedule to any public\\nofficer or officer of a statutory board that is required for the\\nperformance of the public officer’s or officer’s official duties.\\n[Act 33 of 2022 wef 04/11/2022]\\n(13) Despite anything in this section, the Comptroller may furnish\\nto the Government or any statutory board for any statistical or\\nresearch purpose any information relating to any person in a manner\\nthat does not identify, and is not reasonably capable of being used to\\nidentify, that person.\\nIncome Tax Act 1947\\n33\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(14) In this section —\\n“head of a law enforcement agency” means —\\n(a) in relation to the Singapore Police Force, the\\nCommissioner of Police;\\n(b) in relation to the Commercial Affairs Department, the\\nDirector;\\n(c) in relation to the Central Narcotics Bureau, the\\nDirector;\\n(d) in relation to the Corrupt Practices Investigation\\nBureau, the Director; and\\n(e) in relation to any other law enforcement agency, its\\nhead or equivalent;\\n“law enforcement agency” means —\\n(a) the Singapore Police Force;\\n(b) the Commercial Affairs Department;\\n(c) the Central Narcotics Bureau;\\n(d) the Corrupt Practices Investigation Bureau; and\\n(e) any other department of the Government charged\\nwith the responsibility of investigating any offence\\nspecified in the First or Second Schedule to the\\nCorruption, Drug Trafficking and Other Serious\\nCrimes (Confiscation of Benefits) Act 1992.\\n[45/2018]\\nRules\\n7.—(1) The Minister may make rules —\\n(a) to provide for the deduction and payment of tax at the\\nsource in respect of income from any employment, and for\\nthe recovery of tax so deducted;\\n(aa) to prescribe the mode of payment for any refund under this\\nAct to any person or class of persons; and\\nIncome Tax Act 1947\\n2020 Ed.\\n34\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) generally to give effect to the provisions of this Act, other\\nthan section 81.\\n[41/2020]\\n(2) All rules made under this section must be presented to\\nParliament as soon as possible after publication in the Gazette.\\nService and signature of notices, etc.\\n8.—(1) Except where it is provided by this Act that service must be\\neffected either personally or by registered post, the Comptroller may\\nserve a notice, direction or other document on a person —\\n(a) personally;\\n(b) by being sent through the post; or\\n(c) through the electronic service if the notice, direction or\\nother document is permitted to be served in this way by\\nregulations made under section 8A(3).\\n[39/2017]\\n[Act 33 of 2022 wef 26/04/2024]\\n(2) Where a notice is served by ordinary or registered post, it is\\ndeemed to have been served on the day succeeding the day on which\\nthe notice would have been received in the ordinary course of post if\\nthe notice is addressed —\\n(a) in the case of a company incorporated in Singapore, to the\\nregistered office of the company;\\n(b) in the case of a company incorporated outside Singapore,\\neither to the individual authorised to accept service of\\nprocess under the Companies Act 1967 at the address filed\\nwith the Registrar of Companies, or to the registered office\\nof the company wherever it may be situated;\\n(c) in the case of an individual or a body of persons, to the last\\nknown business or private address of such individual or\\nbody of persons.\\n(3) Where the person to whom there has been addressed a registered\\nletter containing any notice which may be given under the provisions\\nof this Act is informed of the fact that there is a registered letter\\nawaiting the person at a post office and the person refuses or neglects\\nIncome Tax Act 1947\\n35\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nto take delivery of the registered letter, the notice is deemed to have\\nbeen served upon the person on the date on which the person was\\ninformed that there was a registered letter awaiting the person at a\\npost office.\\n(3A) Where a notice, direction or other document is served on any\\nperson through the electronic service under subsection (1)(c), the\\nnotice, direction or other document is taken to have been served at the\\ntime when an electronic record of it enters the person’s account with\\nthe electronic service.\\n[39/2017]\\n(4) Subject to subsection (6), every notice to be given by the\\nComptroller under this Act must be signed by the Comptroller or by\\nsome person or persons from time to time authorised by the\\nComptroller in that behalf under section 4, and every such notice is\\nvalid if the signature of the Comptroller or of such person or persons\\nis duly printed or written on the notice.\\n(5) Subject to subsection (6), any notice under this Act requiring the\\nattendance of any person or witness before the Comptroller must be\\nsigned by the Comptroller or by a person duly authorised by the\\nComptroller.\\n(6) Where a notice in subsection (4) or (5) may be served on a\\nperson through the electronic service under subsection (1)(c), the\\nnotice need not be signed if it is served on the person by transmitting\\nan electronic record of the notice to the person’s account with the\\nelectronic service.\\n[39/2017]\\nUse of electronic service\\n8A.—(1) Any person who is —\\n(a) filing or submitting any return, estimate, statement or\\ndocument — may; or\\n(b) giving a notice under section 45(1)(b) or 45D(2) or\\nproviding any information under section 105L(1) —\\nmust (unless otherwise permitted by the Comptroller),\\ndo so through the electronic service.\\nIncome Tax Act 1947\\n2020 Ed.\\n36\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(2) Subsection (1) does not affect any other provision of this Act\\nthat requires, or enables the Comptroller to require, anything to be\\ndone by means of the electronic service.\\n(3) The Minister may make regulations prescribing —\\n(a) the circumstances in which the Comptroller may serve any\\nnotice, direction or other document through the electronic\\nservice on a person assigned an account with the electronic\\nservice; and\\n(b) the manner in which a person who has been served through\\nthe electronic service with any notice, direction or other\\ndocument is to be notified of the transmission of an\\nelectronic record of it to the person’s account with the\\nelectronic service.\\n(4) Regulations made for the purpose of subsection (3) —\\n(a) may provide for service of any notice, direction or other\\ndocument through the electronic service in circumstances\\nwhere —\\n(i) the person consents to such service; or\\n(ii) the Comptroller gives the person notice of the\\nComptroller’s intention of such service and the\\nperson does not refuse such service;\\n(b) may provide for the giving of any notice of the\\nComptroller’s intention, or the person’s consent or\\nrefusal, mentioned in paragraph (a), including —\\n(i) the matters that must be contained in the notice; and\\n(ii) the time within which, and the form and manner in\\nwhich, the consent or refusal must be received by the\\nComptroller;\\n(c) may provide when the consent or refusal of the person\\ntakes effect and when the Comptroller must give effect to\\nsuch consent or refusal; and\\nIncome Tax Act 1947\\n37\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(d) may provide for any other matter necessary or incidental to\\nthe\\npurposes\\nin\\nparagraphs\\n(a),\\n(b)\\nand\\n(c)\\nand\\nsubsection (3)(a).\\n[Act 33 of 2022 wef 26/04/2024]\\nFree postage\\n9. All returns, additional information and resulting correspondence\\nand payment of tax under the provisions of this Act may be sent\\npost‑free to the Comptroller in envelopes marked “Income Tax”.\\nPART 3\\nIMPOSITION OF INCOME TAX\\nCharge of income tax\\n10.—(1) Income tax is, subject to the provisions of this Act,\\npayable at the rate or rates specified hereinafter for each year of\\nassessment upon the income of any person accruing in or derived\\nfrom Singapore or received in Singapore from outside Singapore in\\nrespect of —\\n(a) gains or profits from any trade, business, profession or\\nvocation, for whatever period of time such trade, business,\\nprofession or vocation may have been carried on or\\nexercised;\\n(b) gains or profits from any employment;\\n(c) [Deleted by Act 29 of 1965]\\n(d) dividends, interest or discounts;\\n(e) any pension, charge or annuity;\\n(f) rents, royalties, premiums and any other profits arising\\nfrom property; and\\n(g) any gains or profits of an income nature not falling within\\nany of the preceding paragraphs.\\n(2) In subsection (1)(b), “gains or profits from any employment”\\nmeans —\\nIncome Tax Act 1947\\n2020 Ed.\\n38\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(a) any wages, salary, leave pay, fee, commission, bonus,\\ngratuity, perquisite or allowance (other than a subsistence,\\ntravelling, conveyance or entertainment allowance which\\nis proved to the Comptroller’s satisfaction to have been\\nexpended for purposes other than those in respect of which\\nno deduction is allowed under section 15) paid or granted\\nin respect of the employment whether in money or\\notherwise;\\n(b) the value of any food, clothing or lodging provided or paid\\nfor by the employer;\\n(c) for the year of assessment 2014 and any preceding year of\\nassessment, the annual value of any place of residence\\nprovided by the employer and for the purposes of this\\nparagraph —\\n(i) if the remuneration received by a director of a\\ncompany is less than the annual value of the\\npremises, the full annual value is deemed to be\\ngains or profits of the employment;\\n(ii) except as provided in sub‑paragraph (i), if the annual\\nvalue of the premises exceeds 10% of the gains or\\nprofits\\nfrom\\nthe\\nemployment\\nmentioned\\nin\\nparagraphs (a) and (b) less the rent (if any) paid by\\nthe employee for the use of the premises, the excess\\nis disregarded;\\n(iii) where the premises are shared, “place of residence”\\nmeans the part of the premises occupied by the\\nperson chargeable;\\n(ca) for any year of assessment between the years of\\nassessment 2015 and 2019 (both years inclusive), the\\nannual value of any place of residence provided by the\\nemployer (or the part thereof occupied by the employee if\\nthe premises are shared with another) less the rent (if any)\\npaid by the employee for the use of the premises;\\n(cb) for the year of assessment 2020 and subsequent years of\\nassessment, either —\\nIncome Tax Act 1947\\n39\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(i) the rent paid by the employer for any place of\\nresidence provided by the employer (or the part of\\nsuch place of residence occupied by the employee if\\nthe premises are shared with another), including for\\nany furniture and fittings in that place or part; or\\n(ii) if no such rent is paid, the annual value of such place\\nor part, less any rent paid by the employee for the\\nplace or part;\\n(d) any sum standing to the account of any individual in any\\npension or provident fund or society which the individual\\nis entitled to withdraw upon retirement or which is\\nwithdrawn therefrom.\\n[45/2018]\\n(2A) For the purposes of subsection (2)(ca) and (cb)(ii), in a case\\nwhere no annual value or separate annual value is ascribed to any\\nplace of residence in the Valuation List prepared under section 10 of\\nthe Property Tax Act 1960, the annual value is to be ascertained in\\naccordance with the definition of that term in section 2 of that Act.\\n[37/2014; 45/2018]\\n(2AA) Where the Comptroller is not satisfied that the rent\\nmentioned in subsection (2)(cb)(i) is reasonable after having regard\\nto the rent that a lessee might reasonably be expected to pay under a\\nlease of the place or part (including the furniture and fittings) if it\\nwere unoccupied and offered for renting, the Comptroller may adopt\\neither —\\n(a) the annual value of the place of residence provided by the\\nemployer (or the part of such place of residence occupied\\nby the employee if the premises are shared with another),\\nless any rent paid by the employee for the place or part; or\\n(b) in a case where no annual value or separate annual value is\\nascribed to such place of residence in the Valuation List\\nprepared under section 10 of the Property Tax Act 1960,\\nsuch other value as appears to the Comptroller to be\\nreasonable in the circumstances.\\n[45/2018]\\nIncome Tax Act 1947\\n2020 Ed.\\n40\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(2AB) In a case where —\\n(a) subsection (2)(cb)(i) applies; and\\n(b) the rent paid by the employer under that provision includes\\nrent for any furniture and fittings in the place or part,\\nthen, despite subsection (2)(a), no further account is to be taken of\\nthose furniture and fittings in determining the gains or profits of the\\nemployee from the employment.\\n[45/2018]\\n(2AC) However (and to avoid doubt), subsection (2AB) does not\\napply in a case where the Comptroller exercises his or her power\\nunder subsection (2AA).\\n[45/2018]\\n(2B) For the purposes of subsection (2), the Minister may, for the\\npurposes of such year of assessment as he or she may specify, by\\nregulations prescribe the value of any furniture and fittings in any\\nplace of residence.\\n[37/2014]\\n(3) Any sum realised under any insurance against loss of profits\\nmust be taken into account in the ascertainment of any profits or\\nincome.\\n(4) Where, under section 17, 20 or 21, a balancing charge falls to be\\nmade, the amount thereof is deemed to be income chargeable with tax\\nunder this Act, except in the case of a balancing charge in respect\\nof —\\n(a) a Singapore ship which is owned by a shipping enterprise\\nwithin the meaning of section 13A or by an approved\\nshipping investment enterprise within the meaning of\\nsection 13P at the time the balancing charge falls to be\\nmade in respect of the Singapore ship, but only up to the\\namount ascertained in accordance with the formula\\nA\\nB \\u0003 C;\\nwhere A is the amount of allowances under section 19 or 19A\\nmade to the enterprise in respect of the Singapore\\nIncome Tax Act 1947\\n41\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nship against any income exempt from tax under\\nsection 13A or 13P;\\nB is the total amount of allowances under section 19 or\\n19A which have been made in respect of the ship\\nduring the period it is owned by the enterprise; and\\nC is the amount of balancing charge;\\n(b) a foreign ship or provisionally registered ship the income\\nderived from the operation of which is exempt from tax\\nunder section 13A or 13E, or the income derived from the\\nchartering or finance leasing of which is exempt from tax\\nunder section 13P (as the case may be) but only up to the\\namount ascertained in accordance with the formula\\nX\\nY \\u0003 Z;\\nwhere X is the amount of allowances under section 19 or 19A\\nmade to the enterprise in respect of the foreign ship\\nor provisionally registered ship against any income\\nexempt from tax under section 13A, 13E or 13P, as\\nthe case may be;\\nY is the total amount of allowances under section 19 or\\n19A which have been made in respect of the ship\\nduring the period it is owned by the enterprise; and\\nZ is the amount of balancing charge.\\n[Act 33 of 2022 wef 04/11/2022]\\n(5) In subsection (4) —\\n“foreign ship” has the meaning given by section 13E(6);\\n“Singapore ship” and “provisionally registered ship” have the\\nmeanings given by section 13A(16).\\n[2/2016]\\n[Act 33 of 2022 wef 04/11/2022]\\nIncome Tax Act 1947\\n2020 Ed.\\n42\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(5A) In subsection (4), “finance leasing” has the meaning given by\\nsection 13P(20).\\n[2/2016]\\n(6) Any gains or profits, directly or indirectly, derived by any\\nperson from a right or benefit granted on or after 1 January 2003,\\nwhether granted in the person’s name or in the name of the person’s\\nnominee or agent, to acquire shares in any company are, where the\\nright or benefit is obtained by that person by reason of any office or\\nemployment held by the person, deemed to be income chargeable to\\ntax under subsection (1)(b), accruing at such time and of such amount\\nas determined under the following provisions:\\n(a) where the right or benefit is exercised, assigned, released\\nor acquired — at the time of the exercise, assignment,\\nrelease or acquisition of the right or benefit and the gains or\\nprofits are the price of the shares in the open market at that\\ntime, less any amount paid for the shares;\\n(b) despite paragraph (a), where the right or benefit granted is\\nsubject to any restriction on the sale of the shares so\\nacquired — at the time the restriction ceases to apply and\\nthe gains or profits are the price of the shares in the open\\nmarket at that time, less any amount paid for the shares;\\n(c) if it is not possible to determine the gains or profits under\\nparagraph (a) or (b), the Comptroller may use the net asset\\nvalue of the shares, less any amount paid for the shares, as\\nthe basis for determining the gains or profits;\\n(d) despite paragraphs (a) and (c), any gains or profits derived\\nby the person by any exercise of a right or benefit to\\nacquire shares in any company listed on the Singapore\\nExchange are computed in accordance with the formula\\nA  \\u0001  B;\\nwhere A is —\\n(i) if the shares are not treasury shares, the price of\\nthe shares in the open market at the last\\ntransaction on the date on which the shares are\\nIncome Tax Act 1947\\n43\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nfirst listed on the Singapore Exchange after the\\nacquisition of the shares by the person; and\\n(ii) if the shares are treasury shares, the price of the\\nshares in the open market at the last transaction on\\nthe date an appropriate entry is made in the\\nDepository Register by the Central Depository\\n(Pte) Ltd to effect the acquisition of the treasury\\nshares by the person; and\\nB is the amount paid for such shares;\\n(e) “shares” includes stocks.\\n(6A) To avoid doubt, section 10(5) in force immediately before\\n10 December 2002 continues to apply to any gains or profits directly\\nor indirectly derived by the exercise, assignment or release of any\\nright or benefit to acquire shares (including stocks) in a company\\ngranted to a person before 1 January 2003, whether in his or her name\\nor in the name of his or her nominee or agent, where the right or\\nbenefit was obtained by that person by reason of any office or\\nemployment held by him or her.\\n(7) Despite subsection (6), where —\\n(a) the right or benefit to acquire shares in a company is\\ngranted on or after 1 January 2003 to an individual while he\\nor she is exercising an employment in Singapore; and\\n(b) immediately before he or she ceases that employment —\\n(i) the individual is neither a citizen of Singapore nor a\\nSingapore permanent resident, or being a Singapore\\npermanent\\nresident\\nis\\nleaving\\nSingapore\\npermanently; and\\n(ii) the right or benefit is not exercised, assigned,\\nreleased\\nor\\nacquired\\nby\\nhim\\nor\\nher,\\nor\\nthe\\nrestriction on the sale of the shares has not ceased\\nto apply,\\nIncome Tax Act 1947\\n2020 Ed.\\n44\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nany gains or profits from the right or benefit are —\\n(c) deemed to be income derived by the individual one month\\nbefore the date of cessation of employment or the date the\\nright or benefit is granted, whichever is the later; and\\n(d) computed based on the price of the shares in the open\\nmarket on that date, less the amount paid for the shares.\\n(7A) The Comptroller may, if he or she thinks fit and subject to such\\ncondition as he or she may impose, accept from the employer of an\\nindividual to whom subsection (7) applies an undertaking —\\n(a) to make a return, in such form and by such time as the\\nComptroller may determine, of any gains or profits derived\\nby the individual from the right or benefit to acquire shares\\nin a company as computed under subsection (6);\\n(b) to pay to the Comptroller any tax assessed on such gains or\\nprofits; and\\n(c) to pay the penalties specified in the undertaking for any\\nfailure to comply with paragraph (a) or (b).\\n(7B) Where the Comptroller accepts an undertaking from the\\nemployer of an individual under subsection (7A), subsection (7) does\\nnot apply to the individual and the individual is to be assessed in\\naccordance with subsection (6).\\n(7C) If\\nany\\ncondition\\nimposed\\nby\\nthe\\nComptroller\\nunder\\nsubsection (7A) has not been complied with by the employer of an\\nindividual, then despite the undertaking given by the employer, the\\ngains or profits derived by the individual from the right or benefit to\\nacquire shares in a company are to be assessed in accordance with\\nsubsection (7) and are deemed to be income accruing to the individual\\nin the year in which the condition is not complied with.\\n(8) Subsection (6)(c) applies, with the necessary modifications, to\\ngains or profits derived by an individual mentioned in subsection (7).\\n(8A) For the purpose of subsection (1)(d) —\\n(a) any discount on any debt security is deemed to accrue\\nwhen the debt security is redeemed;\\nIncome Tax Act 1947\\n45\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) subject to any exemption from tax provided under this Act,\\nthe discount is deemed to be income chargeable to tax of\\nthe holder of the debt security immediately before such\\nredemption; and\\n(c) the discount on any debt security is deemed to be an\\namount equal to the difference between —\\n(i) the amount payable to the holder of the debt security\\nupon the maturity or any earlier redemption of the\\ndebt security; and\\n(ii) the amount paid by the first holder of the debt\\nsecurity for the issue of the debt security.\\n(8B) In subsection (8A), “debt security” has the meaning given by\\nsection 43H(4).\\n(9) For the purposes of subsection (1)(e), the income derived from\\nan annuity for any year is deemed to be an amount equal to 3% of the\\ntotal consideration payable or paid for the purchase of the annuity\\nexcept that the whole amount of the annuity is deemed to be income\\nif —\\n(a) the\\nperson\\nderiving\\nincome\\nfrom\\nthe\\nannuity\\nhas\\npreviously received sums equal to the total consideration\\nfor the annuity exclusive of the amounts deemed to be\\nincome under this subsection; or\\n(b) the annuity is purchased by the employer of the person\\nderiving on or after 1 January 1993 such income in lieu of\\nany pension or other benefit payable during the person’s\\nemployment or upon his or her retirement.\\n(10) Subsection (9) does not apply to any annuity purchased under\\nthe SRS.\\n(11) [Deleted by Act 27 of 2009]\\n(12) Where a person derives interest from a negotiable certificate of\\ndeposit or derives gains or profits from the sale thereof, the person’s\\nincome is treated as follows:\\nIncome Tax Act 1947\\n2020 Ed.\\n46\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(a) in the case of a financial institution, the interest and the\\ngains or profits are deemed to be income from a trade or\\nbusiness under subsection (1)(a);\\n(b) in any other case, the interest and the gains or profits are\\ndeemed to be income from interest under subsection (1)(d)\\nsubject to the following provisions:\\n(i) if the interest is received by a subsequent holder of a\\ncertificate of deposit, the income derived from such\\ninterest excludes the amount by which the purchase\\nprice exceeds the issued price of the certificate,\\nexcept where that amount has been excluded in the\\ncomputation of any previous interest derived by the\\nperson in respect of that certificate; and\\n(ii) where a subsequent holder sells a certificate after\\nreceiving interest therefrom, the gains or profits are\\ndeemed to be the amount by which the sale price\\nexceeds the issued price or the purchase price,\\nwhichever is the lower; and\\n(c) for the purposes of paragraph (b), where a subsequent\\nholder purchases a certificate at a price which is less than\\nthe issued price and holds the certificate until its maturity,\\nthe amount by which the issued price exceeds the purchase\\nprice is deemed to be interest derived by the person.\\n(13) Any maintenance payment received by —\\n(a) a child under a maintenance order or a deed of separation;\\nor\\n(b) a parent under a maintenance order made under the\\nMaintenance of Parents Act 1995,\\nis not deemed to be income for the purposes of subsection (1).\\n(14) For the purposes of subsection (1)(a) and (f), the income\\nderived by any author, composer or choreographer, or any company\\nin which he or she beneficially owns all the issued shares, from any\\nroyalties or other payments received as consideration for the\\nIncome Tax Act 1947\\n47\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nassignment of or for the right to use the copyright in any literary,\\ndramatic, musical or artistic work, is deemed to be —\\n(a) the amount of the royalties or other payments remaining\\nafter the deductions allowable under Parts 5 and 6 have\\nbeen made; or\\n(b) an amount equal to 10% of the gross amount of the\\nroyalties or other payments,\\nwhichever is less.\\n(15) Subsection (14) does not apply to royalties or payments\\nreceived in respect of any work published in any newspaper or\\nperiodical.\\n(16) For the purposes of subsection (1)(a) and (f), the income\\nderived by an individual who is the inventor, author, proprietor,\\ndesigner or creator (as the case may be) of an approved intellectual\\nproperty or approved innovation, or by any company in which he or\\nshe beneficially owns all the issued shares, from any royalties or other\\npayments received as consideration for the assignment of or the rights\\nin the approved intellectual property or approved innovation is\\ndeemed to be —\\n(a) the amount of the royalties or other payments remaining\\nafter the deductions allowable under Parts 5 and 6 have\\nbeen made; or\\n(b) an amount equal to 10% of the gross amount of the\\nroyalties or other payments,\\nwhichever is less.\\n(16A) Subsection (16) does not apply to any income mentioned in\\nthat subsection that is derived in the basis period for the year of\\nassessment 2017 or any subsequent year of assessment.\\n[2/2016]\\n(17) Despite subsection (16), where it appears to the Comptroller\\nthat any amount of income which has been determined under that\\nsubsection for the purposes of subsection (1)(a) or (f) ought not to\\nhave been so determined for any year of assessment, the Comptroller\\nmay, within 6 years (if that year of assessment is 2007 or a preceding\\nIncome Tax Act 1947\\n2020 Ed.\\n48\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nyear of assessment) or 4 years (if that year of assessment is 2008 or a\\nsubsequent year of assessment) after the end of that year of\\nassessment, make such assessment or additional assessment upon\\nthe individual as may be necessary in order to make good any loss of\\ntax.\\n(18) In subsection (16) —\\n“approved” means approved for such period not exceeding\\n5 years by the Minister or such person as the Minister may\\nappoint;\\n“innovation” means —\\n(a) any new product or new service, or any new method\\nused in the manufacture or processing of goods or\\nmaterials or in the provision of services; or\\n(b) any substantial improvement in any product or in the\\nprovision of any service, or in any method used in the\\nmanufacture or processing of goods or materials or in\\nthe provision of services,\\nwhich involves novelty or originality;\\n“rights in the approved intellectual property or approved\\ninnovation” means the rights relating to any patent,\\ncopyright, trade mark, industrial design, layout‑design of\\nintegrated circuit, or know‑how of an approved intellectual\\nproperty or approved innovation, where a substantial part of\\nthe work in producing the approved intellectual property or\\napproved innovation is undertaken in Singapore.\\n(19) Any distribution made by a unit trust approved under\\nsection 10A out of gains or profits derived on or after 1 July 1989\\nfrom the disposal of securities and which have not been subject to tax\\nis deemed to be income if received by a unit holder except where the\\nunit holder is —\\n(a) an individual resident in Singapore; or\\n(b) a person who is not resident in Singapore and has no\\npermanent establishment in Singapore.\\nIncome Tax Act 1947\\n49\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(20) Subject to subsection (20G), any distribution made by a\\ndesignated unit trust for any year of assessment to any unit holder out\\nof —\\n(a) gains or profits derived from Singapore or elsewhere from\\nthe disposal of securities;\\n(b) interest (other than interest for which tax has been\\ndeducted under section 45); and\\n(c) dividends derived from outside Singapore and received in\\nSingapore,\\nwhich do not form part of the statutory income of the designated unit\\ntrust by virtue of section 35(12) is, subject to subsection (21), deemed\\nto be income of the unit holder if the unit holder is not a foreign\\ninvestor.\\n[37/2014; 2/2016]\\n(20A) Subject to subsection (20G), any distribution made by a\\ndesignated unit trust for any year of assessment to any unit holder out\\nof —\\n(a) gains or profits derived on or after 27 February 2004\\nfrom —\\n(i) foreign exchange transactions;\\n(ii) transactions in futures contracts;\\n(iii) transactions in interest rate or currency forwards,\\nswaps or option contracts; and\\n(iv) transactions in forwards, swaps or option contracts\\nrelating to any securities or financial index;\\n(b) distributions from foreign unit trusts derived from outside\\nSingapore\\nand\\nreceived\\nin\\nSingapore\\non\\nor\\nafter\\n27 February 2004;\\n(c) fees and compensatory payments (other than fees and\\ncompensatory payments for which tax has been deducted\\nunder section 45A) derived on or after 27 February 2004\\nfrom\\nsecurities\\nlending\\nor\\nrepurchase\\narrangements\\nwith —\\nIncome Tax Act 1947\\n2020 Ed.\\n50\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(i) a person who is neither a resident of nor a permanent\\nestablishment in Singapore;\\n(ii) the Monetary Authority of Singapore;\\n(iii) a bank licensed under the Banking Act 1970;\\n(iv) a merchant bank licensed under the Banking\\nAct 1970;\\n(v) a finance company licensed under the Finance\\nCompanies Act 1967;\\n(vi) a holder of a capital markets services licence licensed\\nto carry on business in the following regulated\\nactivities under the Securities and Futures Act 2001\\nin force immediately before 8 October 2018, or a\\ncompany exempted under that Act from holding such\\na licence:\\n(A) dealing in securities (other than any person\\nlicensed\\nunder\\nthe\\nFinancial\\nAdvisers\\nAct 2001);\\n(B) fund management;\\n(C) securities financing;\\n(D) providing custodial services for securities,\\n(vi) where the fees and compensatory payments are\\nderived before 8 October 2018;\\n(via) a holder of a capital markets services licence licensed\\nto carry on business in the following regulated\\nactivities under the Securities and Futures Act 2001\\non or after 8 October 2018, or a company exempted\\nunder that Act from holding such a licence:\\n(A) dealing in capital markets products (other than\\nany\\nperson\\nlicensed\\nunder\\nthe\\nFinancial\\nAdvisers Act 2001);\\n(B) fund management;\\n(C) product financing; or\\nIncome Tax Act 1947\\n51\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(D) providing custodial services,\\n(via) where the fees and compensatory payments are\\nderived on or after 8 October 2018;\\n(vii) a collective investment scheme or closed‑end fund as\\ndefined in the Securities and Futures Act 2001 that is\\nconstituted as a corporation;\\n(viii) the Central Depository (Pte) Limited;\\n(ix) an insurer licensed or regulated under the Insurance\\nAct 1966 or exempted under that Act from being\\nlicensed or regulated; or\\n(x) a trust company licensed under the Trust Companies\\nAct 2005;\\n(d) rents and any other income derived from any immovable\\nproperty situated outside Singapore and received in\\nSingapore on or after 27 February 2004;\\n(e) discount derived from outside Singapore and received in\\nSingapore on or after 27 February 2004;\\n(f) discount from —\\n(i) qualifying debt securities issued during the period\\nfrom 27 February 2004 to 16 February 2006 (both\\ndates inclusive) which mature within one year from\\nthe date of issue of those securities; or\\n(ii) qualifying debt securities issued during the period\\nfrom 17 February 2006 to 31 December 2028 (both\\ndates inclusive);\\n[Act 30 of 2023 wef 30/10/2023]\\n(g) gains or profits derived on or after 27 February 2004 from\\nthe disposal of debentures, stocks, shares, bonds or notes\\nissued by supranational bodies;\\n(h) early redemption fee and redemption premium from\\nqualifying debt securities issued during the period from\\nIncome Tax Act 1947\\n2020 Ed.\\n52\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n15 February 2007 to 31 December 2028 (both dates\\ninclusive); and\\n[Act 30 of 2023 wef 15/02/2023]\\n[Act 30 of 2023 wef 30/10/2023]\\n(i) such other income directly attributable to qualifying debt\\nsecurities issued on or after a prescribed date, as may be\\nprescribed by regulations,\\nwhich do not form part of the statutory income of the designated unit\\ntrust by virtue of section 35(12) is deemed to be income of the unit\\nholder if the unit holder is not a foreign investor.\\n[37/2014; 2/2016; 4/2017; 45/2018; 1/2020]\\n(20B) If —\\n(a) the income of the trustee of a unit trust, unit trust scheme or\\nexchange traded fund interest scheme (called in this\\nsection the unit trust) did not form part of the trustee’s\\nstatutory income for one or more past years of assessment\\nby reason of section 35(12); and\\n(b) any of the events set out in the first column of the following\\ntable occurs,\\nthen a person to whom this subsection applies is treated as having\\nderived, on the date in the second column of the table opposite to that\\nevent (called in this subsection and subsections (20C), (20E), (20G)\\nand (20H) the corresponding date), an amount of income that is equal\\nto the prescribed amount of any income referred to in paragraph (a)\\nthat has yet to be distributed to any unit holder by the corresponding\\ndate:\\nFirst column\\n.\\nSecond column\\nEvent\\nCorresponding date\\n1. The unit trust is dissolved, and is a\\ndesignated unit trust for the year of\\nassessment for the basis period in\\nwhich the dissolution occurred\\n.\\nDate of dissolution\\nIncome Tax Act 1947\\n53\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nFirst column\\n.\\nSecond column\\nEvent\\nCorresponding date\\n2. The unit trust is not a designated unit\\ntrust within the meaning of section 35\\nfor any year of assessment\\nLast day of the basis\\nperiod for the\\nimmediately\\npreceding year of\\nassessment\\n3. The trustee fails to elect under\\nsection 35(12B) for section 35(12) to\\napply to the trustee’s income for any\\nyear of assessment\\nLast day of the basis\\nperiod for the\\nimmediately\\npreceding year of\\nassessment\\n4. The trustee elects under\\nsection 35(12B) for section 35(12) to\\napply to the trustee’s income derived\\nin only a part of the basis period for\\nany year of assessment\\nLast day of that part of\\nthe basis period\\n[37/2014; 2/2016]\\n(20C) Subsection (20B) does not apply if the corresponding date is\\nbefore 1 June 2015.\\n[37/2014]\\n(20D) Subsection (20B) applies to the following persons:\\n(a) a unit holder who is not an individual and not a foreign\\ninvestor;\\n(b) a unit holder who is an individual and not a foreign\\ninvestor, and who holds the units for the purposes of a\\ntrade, profession or business;\\n(c) a partner who is not an individual and not a foreign\\ninvestor, of a partnership which is a unit holder;\\n(d) a partner who is an individual and not a foreign investor, of\\na partnership in Singapore which is a unit holder.\\n[37/2014]\\nIncome Tax Act 1947\\n2020 Ed.\\n54\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(20E) For the purposes of subsection (20B) —\\n(a) the income referred to in paragraph (a) of that subsection\\nincludes the income of the trustee that did not form part of\\nthe trustee’s statutory income for one or more years of\\nassessment by reason of section 35(12) or (12A) in force\\nimmediately before 1 September 2014;\\n(b) the prescribed amount of the income referred to in\\nparagraph (a) of that subsection which is treated as the\\nincome of a person referred to in subsection (20D)(a) or\\n(b), is —\\n(i) the amount of that income that would have been\\ndistributed to the person in accordance with the terms\\nof the trust deed of the unit trust, had the income been\\ndistributed to unit holders on the corresponding date;\\nor\\n(ii) if it is not possible to ascertain that amount under the\\nterms of the trust deed, such part of that income as\\nthe total number of units held by the person bears to\\nthe total number of units of the unit trust as of the\\ncorresponding date;\\n(c) the prescribed amount of the income referred to in\\nparagraph (a) of that subsection which is treated as the\\nincome of a person referred to in subsection (20D)(c) or\\n(d), is the share of the following amount that the person\\nwould have been entitled to as a partner of the partnership:\\n(i) the amount of that income that would have been\\ndistributed in accordance with the terms of the trust\\ndeed of the unit trust to the partnership, had the\\nincome been distributed to unit holders on the\\ncorresponding date; or\\n(ii) if it is not possible to ascertain that amount under the\\nterms of the trust deed, such part of that income as\\nthe total number of units held by the partnership\\nbears to the total number of units of the trust as of the\\ncorresponding date; and\\nIncome Tax Act 1947\\n55\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(d) where the person referred to in subsection (20D) is an\\nindividual resident in Singapore, the prescribed amount of\\nthe income referred to in subsection (20B)(a) does not\\ninclude the amount of any gains or profits referred to in\\nsubsection (20)(a).\\n[37/2014]\\n(20F) The trustee of the unit trust to which subsection (20B) applies\\nmust, within such reasonable time after the occurrence of the event\\nmentioned in that subsection as the Comptroller may specify and in\\nsuch form and manner as the Comptroller may specify, give notice of\\nthe occurrence to —\\n(a) the Comptroller; and\\n(b) every person referred to in subsection (20D).\\n[37/2014]\\n(20G) Where subsection (20B) has applied in relation to a unit\\ntrust —\\n(a) the\\namount\\nof\\nthe\\nincome\\nreferred\\nto\\nin\\nsubsection (20B)(a) that has yet to be distributed to the\\nunit holders of the unit trust by the corresponding date in\\nquestion is treated, for the purposes of any subsequent\\napplication of subsection (20B) in relation to that unit trust,\\nas having been distributed by the unit trust to its unit\\nholders immediately after that corresponding date; and\\n(b) subsections (20) and (20A) do not apply to any subsequent\\ndistribution by the unit trust to its unit holders of any\\nincome referred to in paragraph (a).\\n[2/2016]\\n(20H) Where —\\n(a) by reason of the application of subsection (20B) in relation\\nto a unit trust, a person is treated as having derived on the\\ncorresponding date in question an amount of income that is\\nequal to the prescribed amount of income referred to in\\nsubsection (20B)(a); and\\n(b) at any time after that corresponding date, the person\\ndisposes of units in the unit trust,\\nIncome Tax Act 1947\\n2020 Ed.\\n56\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthen the amount of any gains or profits derived from that disposal that\\nis chargeable with tax under subsection (1)(a) is to be reduced by the\\namount of the income referred to in subsection (20E)(b)(i) or (ii) or\\n(c)(i) or (ii) (whichever is applicable), that corresponds to the units\\ndisposed of.\\n[2/2016]\\n(21) Where any distribution made out of gains or profits referred to\\nin subsection (20)(a) is made to a unit holder who is an individual\\nresident in Singapore, the distribution, if made on or after 28 February\\n1998, is not deemed to be income of that unit holder.\\n(22) Where a designated unit trust had also been approved under\\nsection 10A, any distribution made by the designated unit trust out of\\nany income (including gains or profits from the disposal of securities)\\nderived by it during the period the designated unit trust was approved\\nunder section 10A is treated as income of a unit holder in accordance\\nwith subsection (19) and section 35(11) and (15).\\n(23) In subsections (20), (20A), (20B), (20D), (21) and (22) —\\n[Deleted by Act 30 of 2023 wef 15/02/2023]\\n“compensatory\\npayment”\\nhas\\nthe\\nmeaning\\ngiven\\nby\\nsection 10H(12);\\n“designated unit trust”, in relation to any year of assessment, has\\nthe meaning given by section 35(14);\\n“early redemption fee” and “redemption premium” have the\\nmeanings given by section 13(16);\\n[Act 30 of 2023 wef 15/02/2023]\\n“financial index” includes any currency, interest rate, share,\\nstock or bond index;\\n“foreign investor” —\\n(a) in relation to an individual, means an individual who\\nis not resident in Singapore;\\n(b) in relation to a company, means a company which is\\nneither resident in Singapore nor carrying on\\nbusiness through a permanent establishment in\\nSingapore, and not less than 80% of the total\\nIncome Tax Act 1947\\n57\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nnumber of the issued shares of which are beneficially\\nowned, directly or indirectly, by persons who are not\\ncitizens of Singapore and not resident in Singapore;\\nand\\n(c) in relation to a trust fund, means a trust fund where at\\nleast 80% of the value of the fund is beneficially held,\\ndirectly or indirectly, by foreign investors referred to\\nin paragraph (a) or (b) and, unless waived by the\\nMinister or an authorised body, where —\\n(i) the fund is created outside Singapore; and\\n(ii) the trustees of the fund are neither citizens of\\nSingapore nor resident in Singapore, nor do\\nthey carry out duties as such trustees through a\\npermanent establishment in Singapore;\\n[Act 41 of 2020 wef 06/12/2022]\\n“qualifying\\ndebt\\nsecurities”\\nhas\\nthe\\nmeaning\\ngiven\\nby\\nsection 13(16);\\n“securities” means —\\n(a) debentures, stocks, shares, bonds or notes issued by a\\ngovernment or company;\\n(b) any right or option in respect of any such debentures,\\nstocks, shares, bonds or notes; or\\n(c) units in any unit trust within the meaning of\\nsection 10A;\\n“securities lending or repurchase arrangement” has the meaning\\ngiven by section 10H(12).\\n[37/2014; 32/2019]\\n(24) For the purposes of subsection (2)(d), the sum standing to the\\naccount of any individual in any pension or provident fund or society,\\nother than a pension or provident fund to which section 10B applies,\\nis deemed to accrue to the individual on the date he or she is entitled\\nto the sum upon retirement or on the date he or she withdraws any\\nsum before his or her retirement (as the case may be) except that\\nwhere upon his or her retirement an individual is entitled to elect\\nIncome Tax Act 1947\\n2020 Ed.\\n58\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nunder the rules or constitution of the pension or provident fund or\\nsociety as to the manner and amount of the sum to be withdrawn, only\\nthe amount so withdrawn is deemed to be income of the individual\\naccruing on the date of withdrawal.\\n(25) To avoid doubt, it is declared that the amounts described in the\\nfollowing paragraphs are income received in Singapore from outside\\nSingapore whether or not the source from which the income is\\nderived has ceased:\\n(a) any amount from any income derived from outside\\nSingapore which is remitted to, transmitted or brought\\ninto, Singapore;\\n(b) any amount from any income derived from outside\\nSingapore which is applied in or towards satisfaction of\\nany debt incurred in respect of a trade or business carried\\non in Singapore; and\\n(c) any amount from any income derived from outside\\nSingapore which is applied to purchase any movable\\nproperty which is brought into Singapore.\\n(26) Any payment accrued to a self‑employed individual under\\nsection 9, 12A, 12AB, 12B, 12E, 12H or 12HA of the Child\\nDevelopment Co‑Savings Act 2001 is deemed to be income from his\\nor her trade, business, profession or vocation chargeable to tax under\\nsubsection (1)(a).\\n[Act 30 of 2023 wef 01/05/2013]\\n[Act 30 of 2023 wef 01/11/2021]\\n(27) Where any income is derived by a special purpose vehicle\\nunder any approved Islamic debt securities arrangement entered into\\non or after 17 February 2006, the income is deemed to have been\\nderived at the end of the arrangement by the originator of the\\narrangement.\\n(28) In subsection (27) —\\n“approved” means approved by the Minister or an authorised\\nbody, subject to such conditions as the Minister or authorised\\nbody may impose;\\n[Act 41 of 2020 wef 06/12/2022]\\nIncome Tax Act 1947\\n59\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“Islamic\\ndebt\\nsecurities”\\nhas\\nthe\\nmeaning\\ngiven\\nby\\nsection 43H(4);\\n“Islamic debt securities arrangement” means an arrangement\\nunder which —\\n(a) immovable properties in Singapore are acquired by a\\nspecial purpose vehicle from a person (called in this\\nsubsection and subsection (27) the originator) where\\nthe acquisition is funded through the issuance of\\nIslamic debt securities by the special purpose vehicle;\\n(b) the immovable properties are leased by the special\\npurpose vehicle to the originator; and\\n(c) the immovable properties are reacquired by the\\noriginator upon the maturity of the Islamic debt\\nsecurities;\\n“special purpose vehicle” means a company whose only\\nbusiness is to acquire the originator’s immovable properties\\nin Singapore, lease them back to the originator and transfer\\nsuch properties to the originator upon the maturity of the\\nIslamic debt securities.\\nProfits of unit trusts\\n10A.—(1) Despite any other provisions of this Act, the Minister\\nmay by regulations —\\n(a) provide that tax on gains or profits derived on or after\\n1 July 1989 from the disposal of securities by an approved\\nunit trust is to be levied and paid for each year of\\nassessment by the trustees upon such percentage of the\\ngains or profits and in such manner as may be prescribed;\\n(b) provide for the deduction of such percentage of the losses\\narising from the disposal of securities in such manner as\\nmay be prescribed;\\n(c) provide for the deduction of expenses allowable under this\\nAct to be granted in such manner as may be prescribed;\\nIncome Tax Act 1947\\n2020 Ed.\\n60\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(d) provide for the deduction of tax by the trustees of the unit\\ntrust on any distribution received by a unit holder which is\\ndeemed to be income under section 10(19).\\n(1A) No unit trust may be approved as an approved unit trust under\\nthis section after 18 February 2019.\\n[32/2019]\\n(2) In this section —\\n“approved” means approved by the Minister or such person as\\nthe Minister may appoint;\\n“securities” has the meaning given by section 10(23);\\n“unit” means a right or an interest (whether described as a unit, a\\nsub‑unit or otherwise) which may be acquired under a unit\\ntrust;\\n“unit trust” means any trust established for the purpose, or\\nhaving the effect, of providing facilities for the participation\\nby persons as beneficiaries under a trust, in profits or income\\narising from the acquisition, holding, management or\\ndisposal of securities or any other property.\\n[10B\\n[32/2019]\\nExcess provident fund contributions, etc., deemed to be income\\n10B.—(1) Despite\\nsection\\n13(1)(j),\\nwhere\\nin\\nany\\nyear,\\ncontributions have been made by an employer in respect of an\\nemployee under section 7 of the Central Provident Fund Act 1953 —\\n(a) any part of the employer’s contributions, in respect of\\nordinary or additional wages paid to the employee in that\\nyear, which is not obligatory under that Act; or\\n(b) the employer’s contributions in respect of that part of the\\nadditional wages which exceeds the specified amount paid\\nto the employee in that year,\\nare deemed to be income accruing to the employee for the year in\\nwhich the wages are paid.\\nIncome Tax Act 1947\\n61\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(2) Despite subsection (1)(a), where in any year, contributions\\nobligatory by reason of a contract of employment are made by any\\nrelevant employer to the Central Provident Fund in respect of\\noverseas ordinary wages or overseas additional wages paid to an\\nemployee in that year, that part of such contributions up to the\\nrelevant amount is not deemed to be income accruing to the\\nemployee.\\n(3) Subsection (2) does not apply to contributions made by an\\nemployer in any year from 1 January 1999 to the Central Provident\\nFund in respect of an employee who holds a professional visit pass or\\na work pass in that year.\\n(4) [Deleted by Act 32 of 2019]\\n(5) [Deleted by Act 32 of 2019]\\n(5A) Despite subsection (1)(a) but subject to subsection (6), where\\na contribution is made by an employer in 2013 or any subsequent year\\nto the medisave account of the employer’s employee maintained\\nunder the Central Provident Fund Act 1953, the contribution up to the\\nmaximum amount mentioned in subsection (5B) is not deemed to be\\nincome accruing to the employee.\\n(5B) The maximum amount is —\\n(a) $1,500 per year (for contributions made before 2018); or\\n(b) $2,730 per year (for contributions made in 2018 and in\\neach subsequent year),\\nless any previous contribution that is made to the medisave account in\\nthat year by the employer in the employer’s capacity as a person of a\\nprescribed description in section 13(1)(jd) (if applicable), and that is\\nexempt from tax under that provision.\\n[39/2017]\\n(6) Subsection (5A) does not apply to contributions made by an\\nemployer in any year from 1 January 1999 to the Central Provident\\nFund in respect of an employee who holds a professional visit pass or\\na work pass in that year.\\n[32/2019]\\n(7) [Deleted by Act 7 of 2007]\\nIncome Tax Act 1947\\n2020 Ed.\\n62\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(8) Where in any year contributions under section 7 of the Central\\nProvident Fund Act 1953 have been made in respect of an employee\\nemployed by 2 or more employers and the employers are related to\\neach other, subsection (1)(b) applies as if all the ordinary and\\nadditional wages from those related employers and the contributions\\non those wages were paid by one employer.\\n(9) For the purposes of subsection (8), one employer is deemed to\\nbe related to another where one of them, directly or indirectly, has the\\nability to control the other or where both of them, directly or\\nindirectly, are under the control of a common person.\\n(10) Subsections (1) to (9) apply, with the necessary modifications,\\nto contributions made by an employer to a designated pension or\\nprovident fund as if those contributions were the employer’s\\ncontributions to the Central Provident Fund.\\n(11) Where in any year contributions have been made by an\\nemployer in respect of an employee to any pension or provident fund\\nconstituted outside Singapore, the whole of the contributions made to\\nthat pension or provident fund is deemed to be income accruing to the\\nemployee for the year in which the contributions are paid.\\n(12) In this section —\\n“additional wages” has the meaning given by the Central\\nProvident Fund Act 1953;\\n“designated pension or provident fund” means an approved\\npension or provident fund designated by the Minister under\\nsection 39(8);\\n“employer’s contributions” means the contributions made by\\nany employer under section 7(1) of the Central Provident\\nFund Act 1953 less the amount of contributions recoverable\\nby the employer from the wages of an employee under\\nsection 7(2) of that Act;\\n“ordinary wages” has the same meaning as “ordinary wages for\\nthe month” in the Central Provident Fund Act 1953;\\nIncome Tax Act 1947\\n63\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“overseas additional wages” means additional wages paid in\\nrespect of the performance of any duty for any period outside\\nSingapore;\\n“overseas ordinary wages” means ordinary wages paid in\\nrespect of the performance of any duty for any period\\noutside Singapore;\\n“overseas total wages”, in relation to any year, means the total of\\nthe overseas ordinary wages and overseas additional wages in\\nthat year received by an employee;\\n“relevant amount” means the amount of contributions which\\nwould have been required to be made by the relevant\\nemployer had such contributions been obligatory under the\\nCentral Provident Fund Act 1953 in respect of —\\n(a) the overseas total wages paid to an employee in any\\nyear less the aggregate in that year of such part of the\\noverseas ordinary wages that are paid to the\\nemployee in every month in that year which\\nexceeds —\\n(i) for a month before September 2011 — $4,500;\\n(ii) for the month of September 2011 or any\\nsubsequent month before January 2016 —\\n$5,000;\\n(iii) for\\nthe\\nmonth\\nof\\nJanuary\\n2016 or\\nany\\nsubsequent month before September 2023 —\\n$6,000;\\n(iv) for the month of September 2023 or any\\nsubsequent month before January 2024 —\\n$6,300;\\n(v) for\\nthe\\nmonth\\nof\\nJanuary\\n2024 or\\nany\\nsubsequent month before January 2025 —\\n$6,800;\\n(vi) for\\nthe\\nmonth\\nof\\nJanuary\\n2025 or\\nany\\nsubsequent month before January 2026 —\\n$7,400; or\\nIncome Tax Act 1947\\n2020 Ed.\\n64\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(vii) for\\nthe\\nmonth\\nof\\nJanuary\\n2026 or\\nany\\nsubsequent month — $8,000; or\\n[Act 30 of 2023 wef 01/09/2023]\\n(b) $79,333 (in relation to the year 2011), $85,000 (in\\nrelation to the years 2012, 2013, 2014 and 2015) or\\n$102,000 (in relation to the year 2016 and every\\nsubsequent year),\\nwhichever is less;\\n“relevant employer” means any company incorporated or\\nregistered under the Companies Act 1967 or any person\\nregistered under the Business Names Registration Act 2014;\\n“specified amount” means —\\n(a) [Deleted by Act 2 of 2016]\\n(b) [Deleted by Act 33 of 2022 wef 04/11/2022]\\n(c) in relation to the year 2011, the difference between\\n$79,333 and the total ordinary wages paid to the\\nemployee in that year; and for this purpose, any\\namount of ordinary wages paid to the employee for\\nany month in the year in excess of $4,500 (being a\\nmonth before September 2011) or $5,000 (being the\\nmonth of September 2011 or any subsequent month)\\nis disregarded;\\n(d) in relation to the year 2012, 2013, 2014 or 2015, the\\ndifference between $85,000 and the total ordinary\\nwages paid to the employee in that year; and for this\\npurpose, any amount of ordinary wages paid to the\\nemployee for any month in the year in excess of\\n$5,000 is disregarded; and\\n(e) in relation to the year 2016 and every subsequent\\nyear, the difference between $102,000 and the total\\nordinary wages paid to the employee in that year; and\\nfor this purpose, the amount of ordinary wages\\nmentioned in each of the following sub‑paragraphs\\nthat is paid to the employee for every month specified\\nin that sub‑paragraph is disregarded:\\nIncome Tax Act 1947\\n65\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(i) for\\nthe\\nmonth\\nof\\nJanuary\\n2016 or\\nany\\nsubsequent month before September 2023 —\\nany amount in excess of $6,000;\\n(ii) for the month of September 2023 or any\\nsubsequent month before January 2024 —\\nany amount in excess of $6,300;\\n(iii) for\\nthe\\nmonth\\nof\\nJanuary\\n2024 or\\nany\\nsubsequent month before January 2025 —\\nany amount in excess of $6,800;\\n(iv) for\\nthe\\nmonth\\nof\\nJanuary\\n2025 or\\nany\\nsubsequent month before January 2026 —\\nany amount in excess of $7,400;\\n(v) for\\nthe\\nmonth\\nof\\nJanuary\\n2026 or\\nany\\nsubsequent month — any amount in excess of\\n$8,000;\\n[Act 30 of 2023 wef 01/09/2023]\\n“total wages”, in relation to any year, means the total of the\\nordinary and additional wages in that year received by an\\nemployee;\\n“year” means any year from 1 January to 31 December.\\n[10C\\n[29/2014; 2/2016]\\nIncome from finance or operating lease\\n10C.—(1) Despite any other provisions of this Act, the Minister\\nmay by regulations provide for the circumstances in which the\\nComptroller may direct that allowances under section 19, 19A, 20,\\n21, 22 or 23 in respect of any machinery or plant which is leased\\nunder a finance lease entered into on or after 1 April 1990 are not to\\nbe made to the lessor but to the lessee as though the machinery or\\nplant had been sold by the lessor to the lessee.\\n(2) In determining the income of a lessor from the leasing of any\\nmachinery or plant, other than those which have been treated as\\nthough they had been sold pursuant to regulations made under\\nsubsection (1), the following provisions apply:\\nIncome Tax Act 1947\\n2020 Ed.\\n66\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(a) the Comptroller must determine the manner and extent to\\nwhich —\\n(i) allowances under section 19, 19A, 20, 21, 22 or 23\\nand any expenses and donations allowable under this\\nAct are to be deducted;\\n(ii) any loss may be deducted under section 37;\\n(b) where the lessor derives income from onshore leasing or\\noffshore leasing or both and such income is subject to tax\\nunder section 42(1) or 43(1), the allowances under\\nsection 19, 19A, 20, 21, 22 or 23 in respect of finance\\nleasing are only available as a deduction against the\\nincome from finance leasing, and any balance of the\\nallowances is not, subject to paragraph (d), available as a\\ndeduction against any other income or available for\\ntransfer under section 37B, 37C or 37E;\\n(c) where the lessor is a leasing company which derives\\nincome from onshore leasing as well as from offshore\\nleasing subject to the concessionary rate of tax under\\nsection 43F, any balance of the allowances under\\nsection 19, 19A, 20, 21, 22 or 23 in respect of onshore\\nfinance leasing in any year of assessment after deduction\\nagainst the income from such leasing is available as a\\ndeduction against any income from offshore finance\\nleasing for that year of assessment, and any balance of\\nthe allowances is not, subject to paragraph (d), available as\\na deduction against any other income or available for\\ntransfer under section 37B;\\n(d) where the lessor referred to in paragraph (b) or (c) ceases to\\nderive income from finance leasing in the basis period for\\nany year of assessment, any balance of the allowances after\\nthe deduction in paragraph (b) or (c) is available as a\\ndeduction against any other income for that year of\\nassessment and for any subsequent year of assessment in\\naccordance with section 23;\\n(e) where the lessor is a leasing company which derives\\nincome from onshore leasing as well as from offshore\\nIncome Tax Act 1947\\n67\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nleasing subject to the concessionary rate of tax under\\nsection 43F —\\n(i) the allowances under section 19, 19A, 20, 21, 22 or\\n23 in respect of operating leasing must firstly be\\navailable as a deduction against the income from\\nsuch leasing, and any balance of the allowances is\\navailable as a deduction against any other income;\\nand\\n(ii) any losses incurred in respect of finance leasing or\\noperating leasing are available as a deduction against\\nany other income.\\n(2A) The income of a lessor during any basis period from the\\nfinance leasing of any machinery or plant that is treated as sold by the\\nlessor to the lessee pursuant to regulations made under subsection (1),\\nis determined by the formula A – B, where —\\n(a) A is the total of all payments liable to be made during the\\nbasis period by the lessee to the lessor under the finance\\nlease; and\\n(b) B is that part of those payments that is attributable to the\\nrepayment of principal.\\n[45/2018]\\n(3) In this section —\\n“finance lease” means a lease of any machinery or plant\\n(including any arrangement or agreement in connection with\\nthe lease) which has the effect of transferring substantially\\nthe obsolescence, risks or rewards incidental to ownership of\\nsuch machinery or plant to the lessee;\\n“finance leasing” means the leasing of any machinery or plant\\nunder any finance lease;\\n“leasing company”, “offshore finance leasing” and “offshore\\nleasing” have the meanings given by section 43F(9);\\n“onshore finance leasing” means the onshore leasing of any\\nmachinery or plant under any finance lease;\\nIncome Tax Act 1947\\n2020 Ed.\\n68\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“onshore leasing” means the leasing, other than offshore leasing,\\nof any machinery or plant;\\n“operating leasing” means the leasing of any machinery or plant,\\nother than finance leasing.\\n[10D\\nAscertainment of income from business of making investments\\n10D.—(1) Despite any other provisions of this Act, in determining\\nthe income of a company or trustee of a property trust derived from\\nany business of the making of investments, the following provisions\\napply:\\n(a) any outgoings and expenses incurred by the company or\\ntrustee of a property trust in respect of investments of that\\nbusiness which do not produce any income are not allowed\\nas a deduction under section 14 for that business or other\\nincome of the company or trustee of a property trust;\\n(b) any outgoings and expenses incurred by the company or\\ntrustee of a property trust in respect of investments of that\\nbusiness which produce any income are only available as a\\ndeduction under section 14 against the income derived\\nfrom such investments and any excess of such outgoings\\nand expenses over such income in any year is disregarded;\\n(c) the allowances under sections 19, 19A, 20 and 21 relating\\nto that business are only available as a deduction against\\nthe income derived from investments of that business\\nwhich produce any income and the balance of the\\nallowances in any year is disregarded.\\n(1A) Where subsection (1) would apply to the originator of any\\napproved Islamic debt securities arrangement if that arrangement had\\nnot been entered into, that subsection continues to apply to the\\noriginator as if the arrangement had not been entered into.\\n(1B) Where the investment mentioned in subsection (1) is an\\nimmovable property, that subsection only applies if the company or\\ntrustee of the property trust —\\n(a) is the legal owner of the investment; or\\nIncome Tax Act 1947\\n69\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) otherwise has a proprietary interest in the investment\\n(including a lease or an easement) and would receive\\nconsideration if the proprietary interest is disposed of or\\ntransferred, whether in whole or in part.\\n[41/2020]\\n(2) In this section —\\n“approved Islamic debt securities arrangement” and “originator”\\nhave the meanings given by section 10(28);\\n“business of the making of investments” includes the business of\\nletting immovable properties;\\n“immovable property‑related assets” means debt securities and\\nshares issued by property companies, mortgaged‑backed\\nsecurities, other property trust funds, and assets incidental to\\nthe ownership of immovable properties;\\n“investments” means securities, immovable properties and\\nimmovable property‑related assets;\\n“property trust” means a trust which invests in immovable\\nproperties or immovable property‑related assets.\\n[10E\\nAscertainment of income from certain public‑private\\npartnership arrangements\\n10E.—(1) Where —\\n(a) a contract is entered into on or after 29 December 2009\\nbetween the Government or any approved statutory body\\nand\\nany\\nperson\\nunder\\na\\npublic‑private\\npartnership\\narrangement; and\\n(b) the contract is or contains a finance lease recognised as\\nsuch by the lessor in accordance with FRS 17 read with\\nINT FRS 104, FRS 116, SFRS(I) 1‑17 read with\\nSFRS(I) INT 4, or SFRS(I) 16, the Government or the\\napproved statutory body being the lessee and the person\\nbeing the lessor,\\nIncome Tax Act 1947\\n2020 Ed.\\n70\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthen —\\n(c) despite any provisions under Part 6, the allowances under\\nsection 16, 17, 18B, 18C, 19, 19A, 20, 21, 22 or 23 in\\nrespect of any building or structure, or any machinery or\\nplant, which is a subject of that finance lease, are not to be\\nmade to the person, but to the Government or the approved\\nstatutory body, as the case may be; and\\n(d) the person must not be assessed to tax on that part of the\\nlease payment under that finance lease that is attributable\\nto repayment of principal.\\n[45/2018]\\n(1A) Despite any other provision of this Act, where —\\n(a) a person provides any services in the basis period for the\\nyear of assessment 2012 or any subsequent year of\\nassessment\\nunder\\na\\npublic‑private\\npartnership\\narrangement —\\n(i) that is the subject of a contract entered into between\\nthe person and the Government or any approved\\nstatutory body; and\\n(ii) to which INT FRS 112 or SFRS(I) INT 12 applies;\\nand\\n(b) the person recognises in the person’s financial statements,\\nprepared\\nin\\naccordance\\nwith\\nINT\\nFRS\\n112\\nor\\nSFRS(I) INT 12 (as the case may be), that income of a\\ncertain amount has been derived from such services,\\nthen that amount is deemed as income derived by that person from\\nthose services for that basis period.\\n[45/2018]\\n(1B) Despite subsection (1A), the person mentioned in that\\nsubsection may elect in accordance with subsection (1D) for the\\nComptroller to assess to tax any deemed income mentioned in\\nsubsection (1A) from providing any FRS 11 construction or upgrade\\nservices, FRS 115 construction or upgrade services, or SFRS(I) 15\\nconstruction or upgrade services, under the public‑private partnership\\nIncome Tax Act 1947\\n71\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\narrangement, as income derived by the person in the basis period in\\nwhich those services are completed.\\n[39/2017; 32/2019]\\n(1C) Where an election has been made in accordance with\\nsubsection (1D), then, despite any other provision of this Act —\\n(a) the income referred to in subsection (1B) is deemed as\\nincome derived by the person in the basis period in which\\nthe FRS 11 construction or upgrade services, FRS 115\\nconstruction\\nor\\nupgrade\\nservices,\\nor\\nSFRS(I)\\n15\\nconstruction or upgrade services (as the case may be) are\\ncompleted; and\\n(b) any expenditure for which a deduction or an allowance\\nmay be allowed or made to the person under Parts 5 and 6\\nin respect of those services is treated as having been\\nincurred in that basis period.\\n[39/2017; 32/2019]\\n(1D) The election must be made by written notice to the\\nComptroller —\\n(a) at the time of lodgment of the return of income for the year\\nof assessment relating to the basis period in which the\\nperson first provides the FRS 11 construction or upgrade\\nservices, FRS 115 construction or upgrade services, or\\nSFRS(I) 15 construction or upgrade services (as the case\\nmay be), being the year of assessment 2012 or any\\nsubsequent year of assessment; or\\n(b) at such later time as the Comptroller may allow.\\n[39/2017; 32/2019]\\n(1E) The election made under subsection (1D) is irrevocable.\\n(2) In this section —\\n“approved” means approved by the Minister or such person as\\nthe Minister may appoint;\\n“FRS\\n11\\nconstruction\\nor\\nupgrade\\nservices”\\nmeans\\nany\\nconstruction or upgrade services (as the case may be) to\\nwhich FRS 11 applies;\\nIncome Tax Act 1947\\n2020 Ed.\\n72\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“FRS 115 construction or upgrade services” means any\\nconstruction or upgrade services (as the case may be) to\\nwhich FRS 115 applies;\\n“FRS 11”, “FRS 17”, “FRS 115”, “FRS 116”, “INT FRS 104”,\\n“INT\\nFRS\\n112”,\\n“SFRS(I)\\n1‑17”,\\n“SFRS(I)\\n15”,\\n“SFRS(I) 16”, “SFRS(I) INT 4” and “SFRS(I) INT 12”\\nmean the financial reporting standards known respectively\\nas —\\n(a) Financial\\nReporting\\nStandard\\n11\\n(Construction\\nContracts);\\n(b) Financial Reporting Standard 17 (Leases);\\n(c) Financial Reporting Standard 115 (Revenue from\\nContracts with Customers);\\n(d) Financial Reporting Standard 116 (Leases);\\n(e) Interpretation of Financial Reporting Standard 104\\n(Determining whether an Arrangement contains a\\nLease);\\n(f) Interpretation of Financial Reporting Standard 112\\n(Service Concession Arrangements);\\n(g) Singapore\\nFinancial\\nReporting\\nStandard\\n(International) 1‑17 (Leases);\\n(h) Singapore\\nFinancial\\nReporting\\nStandard\\n(International) 15 (Revenue from Contracts with\\nCustomers);\\n(i) Singapore\\nFinancial\\nReporting\\nStandard\\n(International) 16 (Leases);\\n(j) Singapore\\nFinancial\\nReporting\\nStandard\\n(International)\\nInterpretation\\n4\\n(Determining\\nwhether an Arrangement contains a Lease); and\\n(k) Singapore\\nFinancial\\nReporting\\nStandard\\n(International)\\nInterpretation\\n12\\n(Service\\nConcession Arrangements),\\nIncome Tax Act 1947\\n73\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthat are made by the Accounting Standards Committee under\\nPart 3 of the Accounting Standards Act 2007, as amended\\nfrom time to time;\\n[Act 36 of 2022 wef 01/04/2023]\\n“SFRS(I) 15 construction or upgrade services” means any\\nconstruction or upgrade services (as the case may be) to\\nwhich SFRS(I) 15 applies.\\n[10F\\n[39/2017; 45/2018; 32/2019]\\nAscertainment of income from business of hiring out motor\\ncars or providing driving instruction or chauffeur services\\n10F.—(1) Despite any other provisions of this Act, in determining\\nthe income derived by any person for any year of assessment from\\nany business of hiring out motor cars or of providing driving\\ninstruction using motor cars, the following provisions apply:\\n(a) any outgoings and expenses incurred in respect of that\\nbusiness for that year of assessment and allowable under\\nthis Act may only be deducted against the income derived\\nfrom that business and any excess of such outgoings and\\nexpenses over such income is not available as a deduction\\nagainst any other income of the person or be available for\\ntransfer under section 37B, 37C or 37E for that year of\\nassessment and any subsequent year of assessment;\\n(b) the allowances under sections 19, 19A, 20, 21 and 22\\nrelating to that business for that year of assessment are only\\navailable as a deduction against the income derived from\\nthat business and any excess of such allowances over such\\nincome is not available as a deduction against any other\\nincome of the person or be available for transfer under\\nsection 37B, 37C or 37E for that year of assessment and\\nany subsequent year of assessment.\\n[41/2020]\\n(1A) Subsection (1) applies in determining the income derived by\\nany person for the year of assessment 2021 or a subsequent year of\\nassessment from any business of providing chauffeur services using\\nIncome Tax Act 1947\\n2020 Ed.\\n74\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nmotor cars as it applies in determining the income derived by a person\\nfrom any business mentioned in that subsection.\\n[41/2020]\\n(2) In this section, “motor car” means a car which is constructed or\\nadapted for the carriage of not more than 7 passengers exclusive of\\nthe driver and the weight of which unladen does not exceed\\n3,000 kilograms.\\n[10H\\nWithdrawals from Supplementary Retirement Scheme\\n10G.—(1) Where the amount of withdrawals made by an SRS\\nmember from his or her SRS account in any year exceeds the amount\\nthe SRS member contributed to his or her SRS account in that year,\\nthe excess amount withdrawn from his or her SRS account is, subject\\nto subsections (3), (3G), (6), (7), (8) and (9), deemed to be income of\\nthe SRS member chargeable to tax under section 10(1)(g).\\n[2/2016]\\n(2) Except where a withdrawal is made by the Official Assignee or\\nthe trustee in bankruptcy of an SRS member who is a bankrupt or\\nwhere a withdrawal is made under subsection (3), (3G), (4) or (8) or\\ndeemed to be withdrawn under subsection (6), (7) or (9), a penalty of\\n5% of the amount withdrawn which is deemed to be income of an\\nSRS member under subsection (1) is payable by the SRS member and\\nmust be deducted by the SRS operator from the amount so\\nwithdrawn.\\n[2/2016]\\n(2A) The Minister may, for any good cause, remit, wholly or in part,\\nany penalty payable by any SRS member under subsection (2).\\n(3) Subject to subsection (3G), only 50% of the following\\nwithdrawals made by an SRS member from his or her SRS account\\nare deemed to be income of the SRS member chargeable to tax under\\nsection 10(1)(g):\\n(a) withdrawal of all the funds standing in his or her SRS\\naccount at the same time if the SRS member is neither a\\ncitizen of Singapore nor a Singapore permanent resident on\\nthe date of the withdrawal and for a continuous period of at\\nleast 10 years before that date, and has maintained his or\\nIncome Tax Act 1947\\n75\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nher SRS account for a period of not less than 10 years from\\nthe date of his or her first contribution to his or her SRS\\naccount;\\n(b) any withdrawal on or after the SRS member has attained\\nthe prescribed minimum retirement age prevailing at the\\ntime when the SRS member made his or her first\\ncontribution to his or her SRS account; or\\n(c) any withdrawal made on the ground that the SRS member\\nis\\nphysically\\nor\\nmentally\\nincapacitated\\nfrom\\never\\ncontinuing in any employment, is mentally disordered\\nand incapable of managing himself or herself or his or her\\naffairs or has a terminal illness or disease.\\n[2/2016]\\n[Act 30 of 2023 wef 30/10/2023]\\n(3A) Subject to subsection (3C), where an SRS member has used\\nfunds in his or her SRS account for any investment, any payment to\\nthe SRS member thereafter, being —\\n(a) any gains or profits from the investment made;\\n(b) any part of the funds the SRS member invested; or\\n(c) any proceeds from the sale or liquidation of such\\ninvestment,\\nis considered a withdrawal by the SRS member from his or her SRS\\naccount for the purposes of subsections (1), (2) and (3)(b) and (c).\\n(3B) Subsection (3A) applies even if the SRS account has been\\nclosed before the payment mentioned in that subsection, and in that\\nevent the person to whom the payment is made is treated as if the\\nperson is still an SRS member for the purposes of subsections (1), (2),\\n(2A) and (3)(b) and (c).\\n(3C) Subsection (3A) does not apply to any payment received after\\nany balance remaining or sum standing in the SRS account is deemed\\nwithdrawn under subsection (6), (7) or (9).\\n(3D) Where any funds in an SRS account have been used for\\ninvestment, then all the funds standing in the SRS account are\\nconsidered as having been withdrawn at the same time for the\\nIncome Tax Act 1947\\n2020 Ed.\\n76\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\npurposes of subsections (3)(a) and (3G) if, and only if, every\\ninvestment has either been sold or liquidated, or is one which has\\nbeen deducted from the balance in the SRS account, and —\\n(a) in the case of every investment that has been sold or\\nliquidated, amounts which the financial product provider\\ndeclared to the SRS member to be all the gains or profits\\nfrom the investment, all funds used for the investment, and\\nall the proceeds from the sale or liquidation have been\\nreturned to the account and these, together with all funds\\nstanding in the SRS account, are withdrawn at the same\\ntime; and\\n(b) in the case of every investment which has been deducted\\nfrom the balance in the SRS account, the date of the\\ndeduction is the same as the date on which the withdrawal\\nreferred to in paragraph (a) takes place.\\n[37/2014; 2/2016]\\n(3E) Where —\\n(a) an SRS member has used funds in his or her SRS account\\nfor any investment; and\\n(b) the investment is one which has been deducted from the\\nbalance in the SRS account,\\nthen an amount equal to the value of the investment as determined in\\nthe manner prescribed by regulations made under subsection (11), is\\nconsidered as having been withdrawn by the SRS member from his or\\nher SRS account on the date of the deduction for the purposes of\\nsubsections (1), (2), (3) and (3G).\\n[37/2014; 2/2016]\\n(3F) In subsections (3D) and (3E) —\\n(a) an investment is one which has been deducted from the\\nbalance in an SRS account if the SRS operator in question\\nhas, in accordance with the regulations made under\\nsubsection (11), approved the deduction of the sums\\nrepresenting the investment from the balance in the SRS\\naccount; and\\nIncome Tax Act 1947\\n77\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) the date of the deduction is the date of the approval referred\\nto in paragraph (a).\\n[37/2014]\\n(3G) Where an SRS member makes a withdrawal of all of the funds\\nstanding in the SRS account of the SRS member on the ground that\\nthe SRS member has a terminal illness or disease, then an amount\\ndetermined in the following manner (if more than zero) is treated as\\nthe SRS member’s income chargeable to tax under section 10(1)(g):\\n50% \\u0003\\nA \\u0001 B\\nð\\nÞ;\\nwhere A is the amount of the withdrawal; and\\nB is the amount determined under subsection (9A).\\n[2/2016]\\n[Act 30 of 2023 wef 30/10/2023]\\n(4) Where any contribution made by an SRS member in any year to\\nhis or her SRS account exceeds his or her SRS contribution cap for\\nthat year (called in this section excess contribution) —\\n(a) the aggregate of the excess contribution and, unless the\\nComptroller otherwise directs, an amount equal to 5% of\\nthe excess contribution, to be compounded yearly in\\naccordance with regulations made under this section; or\\n(b) the total amount standing in his or her SRS account,\\nwhichever amount is the lower, must be withdrawn by the SRS\\nmember from his or her SRS account by 31 December of the year in\\nwhich he or she has been notified by the Comptroller of the excess\\ncontribution; and that amount is deemed to be the SRS member’s\\nincome chargeable to tax under section 10(1)(g) for that year.\\n(5) Where an SRS member is eligible to make a withdrawal under\\nsubsection (3)(b), all the funds (excluding any life annuity) standing\\nin his or her SRS account must be withdrawn not later than 10 years\\nfrom the date the SRS member made his or her first withdrawal under\\nsubsection (3)(b).\\n(6) Upon the expiry of the period referred to in subsection (5), any\\nbalance (excluding any life annuity and any amount not withdrawn\\nIncome Tax Act 1947\\n2020 Ed.\\n78\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nunder subsection (4)) remaining in the SRS account is deemed to be\\nwithdrawn by the SRS member and 50% of such balance is deemed to\\nbe\\nthe\\nSRS\\nmember’s\\nincome\\nchargeable\\nto\\ntax\\nunder\\nsection 10(1)(g) for the year in which the period expires.\\n(6A) Where an SRS member —\\n(a) made his or her first withdrawal under subsection (3)(b);\\nand\\n(b) subsequently made one or more contributions to his or her\\nSRS account during the period from 1 October 2008 to\\n31 December 2008 (both dates inclusive),\\nthen —\\n(c) any withdrawal made under subsection (3)(b) prior to the\\ndate of the first of the SRS member’s contributions referred\\nto in paragraph (b) is disregarded for the purpose of\\ndetermining the period referred to in subsection (5); and\\n(d) the date of the SRS member’s first withdrawal made under\\nsubsection (3)(b) after the date of the first of his or her\\ncontributions referred to in paragraph (b) is deemed to be\\nthe date the SRS member made his or her first withdrawal\\nunder subsection (3)(b) for the purpose of determining the\\nperiod referred to in subsection (5).\\n(6B) Where an SRS member —\\n(a) had made one or more withdrawals under subsection (3)(b)\\nof all the funds standing in his or her SRS account and had\\nclosed his or her SRS account (called in this subsection the\\nfirst SRS account); and\\n(b) subsequently opened another SRS account during the\\nperiod from 1 October 2008 to 31 December 2008 (both\\ndates inclusive) (called in this subsection the second SRS\\naccount),\\nthen —\\n(c) the reference to the date the SRS member made his or her\\nfirst withdrawal under subsection (3)(b) for the purpose of\\ndetermining the period referred to in subsection (5) is a\\nIncome Tax Act 1947\\n79\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nreference to the date the SRS member makes his or her first\\nwithdrawal after he or she opened the second SRS account;\\nand\\n(d) for the purposes of subsection (1) and section 39(2)(o),\\nboth the first SRS account and the second SRS account are\\ndeemed to be the same account as if the first SRS account\\nhad never been closed.\\n(7) Where an SRS member is eligible to make a withdrawal under\\nsubsection (3)(c), he or she must withdraw all the funds (excluding\\nany life annuity) standing in his or her SRS account not later than\\n10 years from the date he or she makes the first withdrawal; and upon\\nthe expiry of that period, any balance (excluding any life annuity and\\nany amount not withdrawn under subsection (4)) remaining in his or\\nher SRS account is deemed to be withdrawn by the SRS member and\\n50% of such balance is deemed to be the SRS member’s income\\nchargeable to tax under section 10(1)(g).\\n(8) Only 50% of any annuity payment made under a life annuity\\npurchased by an SRS member under the SRS is deemed to be income\\nof the SRS member chargeable to tax under section 10(1)(g) upon —\\n(a) the expiry of the period referred to in subsection (5);\\n(b) the expiry of the period referred to in subsection (7); or\\n(c) the closure of the SRS account of the SRS member —\\n(i) on or after the date the SRS member attains the\\nprescribed minimum retirement age prevailing at the\\ntime the SRS member makes the first contribution to\\nthe SRS account; or\\n(ii) on or after the date the SRS member becomes\\nphysically or mentally incapacitated from ever\\ncontinuing in any employment, becomes mentally\\ndisordered and incapable of managing himself or\\nherself or his or her affairs, or is diagnosed to have a\\nterminal illness or disease.\\n[2/2016]\\n[Act 30 of 2023 wef 30/10/2023]\\nIncome Tax Act 1947\\n2020 Ed.\\n80\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(9) When an SRS member dies, any sum standing in the SRS\\naccount of the SRS member is treated as withdrawn on the date of\\ndeath, and an amount determined in the following manner (if more\\nthan zero) is treated as the SRS member’s income chargeable to tax\\nunder section 10(1)(g):\\n50% \\u0003\\nA \\u0001 B\\nð\\nÞ;\\nwhere A is the amount treated as withdrawn; and\\nB is the amount determined under subsection (9A).\\n[2/2016]\\n(9A) For the purposes of subsections (3G) and (9), the amount B\\nreferred to in those subsections is —\\n$40; 000 \\u0003 10 \\u0001 C\\nð\\nÞ\\n½\\n‹ \\u0001 D;\\nwhere C is —\\n(a) if the SRS member made a withdrawal under\\nsubsection (3)(b) or (c) (not being a withdrawal\\nunder subsection (3G)) in any year before the\\nrelevant year, the total number of years (a part of a\\nyear being treated as a full year) in the period —\\n(i) beginning with the year in which the SRS\\nmember made the first such withdrawal; and\\n(ii) ending with the year immediately before the\\nrelevant year,\\nor, if the first year and the last year in the period\\nare (or are part of) the same year, one; or\\n(b) if the SRS member made his or her first\\nwithdrawal under subsection (3)(b) or (c) (not\\nbeing a withdrawal under subsection (3G)) in the\\nrelevant\\nyear,\\nor\\ndid\\nnot\\nmake\\nany\\nsuch\\nwithdrawal, zero; and\\nD is the lower of —\\n(a) $40,000; and\\nIncome Tax Act 1947\\n81\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) the sum of the following withdrawals made in the\\nrelevant year (which is not a withdrawal under\\nsubsection (3G)):\\n(i) every\\nwithdrawal\\nmade\\nunder\\nsubsection (3)(b);\\n(ii) every\\nwithdrawal\\nmade\\nunder\\nsubsection (3)(c).\\n[2/2016]\\n(9B) In subsection (9A), “relevant year” means —\\n(a) the year in which the SRS member makes the withdrawal\\nunder subsection (3G); or\\n(b) the year of death of the SRS member,\\nas the case may be.\\n[2/2016]\\n(10) For the purposes of this section, the use of funds in his or her\\nSRS account by an SRS member for investment in savings or\\ninvestment products offered under the SRS and for disbursement of\\nany charges in relation to the operation of his or her SRS account is\\ndeemed not to be a withdrawal from his or her SRS account.\\n(11) The Minister may by regulations establish a Supplementary\\nRetirement Scheme to provide for voluntary cash contributions by\\nindividuals and by their employers on their behalf to accounts\\noperated by SRS operators so as to encourage individuals to save for\\ntheir old age.\\n(12) Without limiting subsection (11), regulations made under that\\nsubsection may provide for —\\n(a) the opening and the type of account for any SRS member\\ninto which contributions may be made;\\n(b) the SRS contribution cap, the mode and manner of the\\ncontributions and withdrawals that can be made by any\\nSRS member;\\nIncome Tax Act 1947\\n2020 Ed.\\n82\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) the method of valuation of investment products acquired\\nunder the SRS;\\n(d) the method of computing income deemed to accrue from\\nexcess contributions made by any SRS member;\\n(e) the suspension or closure of SRS accounts and the\\ncircumstances in which the SRS accounts may be\\nsuspended or closed;\\n(f) the terms and conditions governing the relationship\\nbetween the Government, SRS operators, SRS members\\nand the Comptroller under the SRS;\\n(g) the purposes for which the contributions made under the\\nSRS can be utilised and invested, the persons with whom\\ninvestments may be made and the terms and conditions of\\nthe investment and withdrawal under the SRS;\\n(h) the consequences for any contravention of the regulations,\\nincluding making any act or omission in contravention of\\nsuch regulations an offence and prescribing the penalties\\nfor such offence;\\n(i) the requirements and obligations to be observed by SRS\\nmembers, SRS operators and financial product providers\\nunder the SRS; and\\n(j) generally for giving full effect to or for carrying out the\\npurposes of this section.\\n(12A) Without limiting subsections (11) and (12), regulations made\\nunder subsection (11) may, for the purposes of subsections (3D), (3E)\\nand (3F) and section 45EA (which relates to collection of tax by an\\nSRS operator for payment to the Comptroller on the value of an\\ninvestment deducted from an SRS account of a non‑citizen) —\\n(a) provide for the manner and time of valuation of any\\ninvestment;\\n(b) enable an SRS operator to approve the deduction of the\\nsums representing an investment from the balance in an\\nSRS account under such circumstances as may be\\nIncome Tax Act 1947\\n83\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nspecified, and impose duties on the SRS operator before\\nand after giving the approval; and\\n(c) for the purposes of section 45EA, prescribe different\\nmethods of reckoning the value of an investment under\\ndifferent circumstances.\\n[37/2014]\\n(13) This section does not apply to any SRS member whose SRS\\naccount is opened and subsequently closed within the same year.\\n(14) In this section, unless the context otherwise requires —\\n(a) a reference to an SRS member making a contribution to his\\nor her SRS account includes the SRS member’s employer\\nmaking a contribution to that account on the SRS\\nmember’s behalf; and\\n(b) a reference to a contribution of an SRS member to his or\\nher SRS account includes a contribution by the SRS\\nmember’s employer to that account on the SRS member’s\\nbehalf.\\n[10L\\nSecurities lending or repurchase arrangement\\n10H.—(1) For the purpose of determining whether an amount,\\nother than any fee payable under a securities lending or repurchase\\narrangement, should be taken into account in ascertaining the gains or\\nprofits from any transfer of securities under the arrangement in\\nrespect of which a transferor is chargeable to tax, the transferor is to\\nbe treated as if —\\n(a) the transfer of the transferred securities had not been made;\\n(b) the transferor had held the transferred securities at all times\\nduring the borrowing period; and\\n(c) the return of the transferred securities or equivalent\\nsecurities had not been made at the end of the borrowing\\nperiod.\\n(2) Despite subsection (1), where a transferor is a person who\\ncarries on a trade or business of sale and purchase of securities, any\\ngains or profits derived by the transferor from any transfer of\\nIncome Tax Act 1947\\n2020 Ed.\\n84\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nsecurities under a securities lending or repurchase arrangement are\\nchargeable to tax under section 10(1)(a) if subsequent to the transfer\\nof the transferred securities —\\n(a) the transferred securities are redeemed;\\n(b) the transferee accepts a takeover offer for the transferred\\nsecurities upon the direction of the transferor;\\n(c) the arrangement is terminated because the transferor or\\ntransferee is unable to perform any of the obligations\\nspecified in the arrangement, unless the transferor applies\\nthe collateral held by the transferor to re‑acquire equivalent\\nsecurities under the terms of the arrangement;\\n(d) the transferee sells the transferred securities to the issuer of\\nsuch securities upon the direction of the transferor; or\\n(e) any other event occurs which, in the Comptroller’s\\nopinion,\\nresults\\nin\\nthe\\ncondition\\nspecified\\nin\\nparagraph (a)(iii) or (iv) of the definition of “securities\\nlending or repurchase arrangement” not fulfilled,\\nand the gains or profits are deemed to arise at the time any of the\\nevents referred to in paragraph (a), (b), (c), (d) or (e) occurs.\\n(3) Where a transferee is a person who carries on a trade or business\\nof sale and purchase of securities, any gains or profits derived by the\\ntransferee from any transfer of securities under a securities lending or\\nrepurchase arrangement are chargeable to tax under section 10(1)(a),\\nand the gains or profits are deemed to arise at the time any of the\\nfollowing events occurs:\\n(a) the transferee disposes of the transferred securities to a\\nperson other than the transferor;\\n(b) subsequent to\\nsuch\\ndisposal, the\\ntransferee returns\\nequivalent securities to the transferor or any of the\\nevents specified in subsection (2) occurs, whichever is\\nthe earlier.\\n(4) For the purposes of computing the gains or profits of a\\ntransferee under subsection (3), the transferee is to be treated as if the\\ntransferee had acquired the transferred securities from or returned\\nIncome Tax Act 1947\\n85\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nequivalent securities to the transferor (as the case may be) for a\\nconsideration equal to the market value of the transferred securities at\\nthe beginning of the borrowing period under the securities lending or\\nrepurchase arrangement.\\n(5) Where any distribution of dividend or interest in respect of\\ntransferred securities is made to a Singapore‑based transferee and\\nreceived by a transferor under a securities lending or repurchase\\narrangement, the distribution must be included in the statutory\\nincome of the transferor of the year in which the distribution is made\\nto the transferee, and be assessed as if the distribution had been made\\nto the transferor.\\n(6) [Deleted by Act 19 of 2013]\\n(7) A Singapore‑based transferee (other than a transferee under a\\nbuy and sell back arrangement in respect of qualifying debt securities\\nor foreign debt securities) is not entitled to any tax credit under\\nsection 50 or 50A for any distribution received by the transferee from\\noutside Singapore in respect of transferred securities under a\\nsecurities lending or repurchase arrangement.\\n(8) Where any compensatory payment derived under a securities\\nlending\\nor\\nrepurchase\\narrangement\\nby\\na\\ntransferor\\nfrom\\na\\nSingapore‑based transferee is in place of —\\n(a) any dividend which is exempt from tax or interest which is\\nderived from qualifying debt securities, the transferor is to\\nbe assessed at the tax rate that would have been applicable\\nto the dividend or interest (as the case may be) had it been\\nmade directly to the transferor; or\\n(b) [Deleted by Act 19 of 2013]\\n(c) a distribution of income derived from outside Singapore\\nand where the transferor is resident in Singapore, no tax\\ncredit under section 50 or 50A is allowed to the transferor.\\n(9) Section 45 applies in relation to —\\n(a) any distribution of interest (other than interest derived\\nfrom qualifying debt securities) in respect of transferred\\nsecurities; and\\nIncome Tax Act 1947\\n2020 Ed.\\n86\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) any compensatory payment in place of —\\n(i) any distribution of income derived from outside\\nSingapore; or\\n(ii) [Deleted by Act 19 of 2013]\\n(iii) any interest (other than interest derived from\\nqualifying debt securities),\\nmade under a securities lending or repurchase arrangement by a\\nSingapore‑based transferee to a transferor who is not resident in\\nSingapore, as that section applies to any interest paid by a person to\\nanother person not known to the firstmentioned person to be resident\\nin Singapore, and for the purpose of such application, any reference in\\nthat section to interest is a reference to such distribution of interest or\\ncompensatory payment.\\n(10) For the purposes of this section, the Comptroller may specify\\nsuch requirement and obligation to be observed, and such information\\nin respect of any transferor, transferee or transferred securities to be\\nfurnished, by the depository agent of the transferor or transferee.\\n(11) The Minister may make regulations to provide generally for\\ngiving full effect to or for carrying out the purposes of this section.\\n(12) In this section —\\n“borrowing period”, in relation to any transferred securities,\\nmeans the period commencing from the date the securities are\\ntransferred by the transferor to the transferee and ending on\\nthe date the securities or equivalent securities are returned to\\nthe transferor or are regarded as being disposed of by the\\ntransferor under subsection (2), whichever is the earlier;\\n“commercial purpose”, in relation to any securities lending or\\nrepurchase arrangement, means —\\n(a) the settling of a sale of securities, whether by the\\ntransferee or another person;\\n(b) the replacement, in whole or in part, of the transferred\\nsecurities obtained by the transferee under any earlier\\nsecurities lending or repurchase arrangement;\\nIncome Tax Act 1947\\n87\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) the on‑lending of the transferred securities to another\\nperson;\\n(d) the fulfillment by the transferee of its existing\\nobligations\\narising\\nfrom\\nan\\nuncovered\\nwritten\\noption position using transferred securities;\\n(e) the hedging and arbitrage transactions entered into or\\nto be entered into by the transferee;\\n(f) the liquidity management by the transferee;\\n(g) the holding of the transferred securities, without\\nbeing\\ndisposed\\nof,\\nas\\ncollateral\\nagainst\\nthe\\nobligations of the counterparty to the securities\\nlending or repurchase arrangement; or\\n(h) any other purpose as the Minister (or such person as\\nthe Minister may appoint) may in writing allow;\\n“compensatory\\npayment”,\\nin\\nrelation\\nto\\nany\\ntransferred\\nsecurities, means a payment made during the borrowing\\nperiod to a transferor in place of any distribution of interest,\\ndividend or right to purchase warrants, options or additional\\nsecurities in respect of the transferred securities under\\ncircumstances in which the transferee does not receive\\nsuch distribution to be passed on to the transferor, and\\nincludes any amount which is in place of interest and is\\ndeducted from the price paid by the transferor to acquire\\nequivalent securities or re‑acquire the transferred securities\\nunder a buy and sell back arrangement in respect of\\nqualifying debt securities, Singapore Government securities\\nor foreign debt securities;\\n“equivalent securities”, in relation to any transferred securities,\\nmeans securities which are identical in type, nominal value\\n(where applicable), description and amount to the transferred\\nsecurities and includes —\\n(a) the securities into which the transferred securities\\nhave been converted, subdivided or consolidated;\\nIncome Tax Act 1947\\n2020 Ed.\\n88\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) the proceeds of the redemption of the transferred\\nsecurities;\\n(c) the cash or securities representing the proceeds of the\\nacceptance\\nof\\nthe\\ntakeover\\nof\\nthe\\ntransferred\\nsecurities;\\n(d) if there is a call on partly‑paid securities and if the\\ntransferor has paid to the transferee the sum due on\\nthe call, the paid‑up securities;\\n(e) if there is a bonus issue, the transferred securities\\ntogether with the securities allotted by way of bonus;\\n(f) if there is a rights issue and if the transferor has\\ndirected the transferee to take up the issue and has\\npaid to the transferee any sum due on the issue, the\\ntransferred securities together with the securities\\nallotted under the rights issue or, if the transferor has\\ndirected the\\ntransferee to\\nsell\\nthe\\nrights, the\\ntransferred securities together with the proceeds\\nfrom the disposal of the rights;\\n(g) if any distribution is made in the form of securities or\\na certificate which may be exchanged for securities or\\nan entitlement to acquire securities, the transferred\\nsecurities together with the securities or certificate or\\nentitlement equivalent to those allotted; and\\n(h) if the transferee is unable to return the transferred\\nsecurities, such amount of money or securities\\nequivalent to the transferred securities;\\n“foreign debt securities” means securities, other than stocks and\\nshares, denominated in any foreign currency (including\\nbonds and notes) issued by foreign governments, foreign\\nbanks outside Singapore and companies not incorporated and\\nnot resident in Singapore;\\n“qualifying\\ndebt\\nsecurities”\\nhas\\nthe\\nmeaning\\ngiven\\nby\\nsection 13(16);\\nIncome Tax Act 1947\\n89\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“securities” includes any collateral that is provided in the form\\nof securities but does not include stocks and shares of any\\ncompany resident in Singapore which are not listed on any\\nstock exchange in Singapore or elsewhere;\\n“securities lending or repurchase arrangement” means any\\nwritten arrangement made on or after 23 November 2001 —\\n(a) under which —\\n(i) a person (called in this section the transferor)\\ntransfers the legal interest in any securities\\n(called in this section the transferred securities)\\nto another person (called in this section the\\ntransferee) for any commercial purpose;\\n(ii) the\\ntransferor\\nre‑acquires\\nthe\\ntransferred\\nsecurities or acquires equivalent securities\\nfrom the transferee at a later time;\\n(iii) the transferor retains the risk of loss or\\nopportunity\\nfor\\ngain\\nin\\nrespect\\nof\\nthe\\ntransferred securities;\\n(iv) the transferor does not dispose of (by transfer,\\ndeclaration of trust or otherwise) the right to\\nreceive any part of the total consideration\\npayable or to be given by the transferee under\\nthe arrangement; and\\n(v) if any distribution is made in respect of the\\ntransferred securities during the borrowing\\nperiod,\\nthe\\ntransferor\\nreceives\\nfrom\\nthe\\ntransferee the distribution or compensatory\\npayment\\nequal\\nto\\nthe\\nvalue\\nof\\nthe\\ndistribution; and\\n(b) where —\\n(i) the transferor and transferee are dealing with\\neach other at arm’s length; and\\n(ii) the transferor or transferee or both of them do\\nnot enter into the arrangement with the\\nIncome Tax Act 1947\\n2020 Ed.\\n90\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\npurpose,\\nor\\nmain\\npurpose,\\nof\\navoiding,\\nreducing or deferring any tax chargeable\\nunder this Act;\\n“Singapore‑based transferee” means a transferee who is resident\\nin Singapore (except in respect of any business carried on\\noutside Singapore through a permanent establishment outside\\nSingapore) or which is a permanent establishment in\\nSingapore;\\n“Singapore Government securities” and “debt securities” have\\nthe meanings given by section 43H.\\n(13) This section has effect despite anything to the contrary in this\\nAct, except that this section does not affect the chargeability to tax of\\nany income of a transferor or transferee under section 10 unless\\notherwise provided in this section.\\n[10N\\nAdditional Tier 1 capital instruments\\n10I.—(1) Any distribution that is liable to be made in respect of an\\nAT1 instrument in the basis period for the year of assessment 2015 or\\na subsequent year of assessment is deemed for the purposes of this\\nAct, and for that year of assessment, as interest derived from a debt\\nsecurity.\\n[37/2014]\\n(2) In this section —\\n“AT1\\ninstrument”\\nmeans\\na\\nsecurity\\n(not\\nbeing\\nshares)\\ncommonly known as Additional Tier 1 capital instrument\\nwhich —\\n(a) is issued in Singapore but not through a branch\\nsituated outside Singapore; and\\n(b) satisfies any of the following:\\n(i) according to MAS Notice 637, may be used to\\nsatisfy the capital adequacy requirement of a\\nbank incorporated in Singapore with a full\\nIncome Tax Act 1947\\n91\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nbanking licence, under section 10(2) of the\\nBanking Act 1970;\\n[Act 18 of 2022 wef 30/06/2022]\\n(ii) according\\nto\\na\\ndirection\\nissued\\nunder\\nsection 28(3) of the Monetary Authority of\\nSingapore Act 1970 as in force immediately\\nbefore the date of commencement of the\\nFinancial Holding Companies Act 2013 and\\nto MAS Notice 637, may be used to satisfy the\\ncapital adequacy requirement of any other\\nfinancial institution within the meaning of\\nsection 27A(6) of the Monetary Authority of\\nSingapore Act 1970 as in force immediately\\nbefore the date of commencement of the\\nFinancial Holding Companies Act 2013;\\n[Act 18 of 2022 wef 30/06/2022]\\n(iii) according to MAS Notice FHC-N637, may be\\nused\\nto\\nsatisfy\\nthe\\ncapital\\nadequacy\\nrequirement of a financial holding company\\ndesignated under section 4 of the Financial\\nHolding Companies Act 2013;\\n[Act 18 of 2022 wef 30/06/2022]\\n[Act 18 of 2022 wef 30/06/2022]\\n“full banking licence” has the meaning given by the Banking\\n(Fees) Notification;\\n“MAS Notice FHC-N637” means the notice commonly known\\nas MAS Notice FHC-N637 that is issued by the Monetary\\nAuthority of Singapore under section 36(1) of the Financial\\nHolding Companies Act 2013, and includes any notice that\\nreplaces it;\\n[Act 18 of 2022 wef 30/06/2022]\\n“MAS Notice 637” means the notice commonly known as MAS\\nNotice 637 that is issued by the Monetary Authority of\\nSingapore pursuant to sections 10(2), 10A(1), 10B(1) and\\nIncome Tax Act 1947\\n2020 Ed.\\n92\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n65(2) of the Banking Act 1970, and includes any notice that\\nreplaces it.\\n[10O\\n[37/2014; 5/2016; 41/2020]\\nTax treatment for trading stock appropriated for non‑trade or\\ncapital purpose\\n10J.—(1) This section applies where, at any time on or after\\n16 November 2021, a person carrying on a trade or business\\nappropriates any trading stock of that trade or business for a purpose\\nother than for sale or disposal in the ordinary course of any of the\\nperson’s trades or businesses in circumstances that give rise to a\\nreasonable inference that the appropriation is permanent.\\n[27/2021]\\n(2) Without limiting the generality of the expression, a person\\nappropriates trading stock for a purpose other than for sale or disposal\\nin the ordinary course of any of the person’s trades or businesses if the\\nperson —\\n(a) holds or uses the trading stock as a capital asset; or\\n(b) donates the trading stock.\\n[27/2021]\\n(3) The following is treated for the purposes of this Act as the\\nperson’s income for the firstmentioned trade or business in\\nsubsection (1) for the year of assessment relating to the basis\\nperiod in which the date of appropriation of the trading stock falls:\\n(a) where the appropriation is by way of a donation of the\\ntrading stock\\nthat qualifies for\\na\\ndeduction\\nunder\\nsection 37(3)(b), (e) or (f) for any year of assessment —\\nan amount equal to the person’s cost of acquiring, making\\nor constructing the trading stock;\\n(b) in any other case — an amount equal to the open market\\nvalue of the trading stock as at the date of the\\nappropriation.\\n[27/2021]\\n(4) Section 14 applies for the purpose of ascertaining such part of\\nthe income mentioned in subsection (3) that is chargeable with tax\\nIncome Tax Act 1947\\n93\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nunder this Act, as if the trading stock were sold on the date of the\\nappropriation.\\n[27/2021]\\n(5) Where this section applies, then the person must, at the time of\\nlodgment of the person’s return of income for the year of assessment\\nrelating to the basis period in which the trading stock is appropriated,\\nor such later time as the Comptroller may allow, give notice of the\\nappropriation and specify the particulars of the appropriation in the\\nform and manner specified by the Comptroller.\\n[27/2021]\\n(6) The Minister may by rules made under section 7, and subject to\\nany condition specified in the rules —\\n(a) exempt any person or class of persons from subsection (5);\\nor\\n(b) provide that subsection (5) does not apply in a particular\\ncase or class of cases.\\n[27/2021]\\n(7) Rules made for the purposes of subsection (6) may be made to\\ntake effect from (and including) 16 November 2021.\\n[27/2021]\\n(8) Where subsection (3) applies to a person for a year of\\nassessment and that person has not been assessed accordingly in\\nthat year of assessment, any income arising because of that\\nsubsection is treated as the person’s income for the year of\\nassessment in which the Comptroller discovers sufficient facts on\\nwhich the Comptroller may reasonably conclude that there has been\\nsuch appropriation.\\n[27/2021]\\n(9) In this section —\\n“open market value”, in relation to any trading stock, means —\\n(a) the amount that would be realised if the trading stock\\nhad been sold on the open market on the date of\\nappropriation of the trading stock; or\\n(b) where the Comptroller is satisfied by reason of the\\nspecial nature of the trading stock that it is not\\npracticable to determine the amount mentioned in\\nIncome Tax Act 1947\\n2020 Ed.\\n94\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nparagraph (a), such other value as appears to the\\nComptroller to be reasonable in the circumstances;\\n“trading stock”, in relation to a trade or business —\\n(a) means property of any description (whether movable\\nor immovable) —\\n(i) that is sold in the ordinary course of trade or\\nbusiness; or\\n(ii) that would be so sold if it were mature or if its\\nmanufacture, preparation or construction were\\ncomplete; but\\n(b) does\\nnot\\ninclude\\nany\\nmaterial\\nused\\nin\\nthe\\nmanufacture, preparation or construction of any\\nproperty mentioned in paragraph (a).\\n[10P\\n[27/2021]\\nTax treatment for covered bond transactions\\n10K.—(1) This section applies where —\\n(a) an approved covered bond company derives income from\\nany cover pool for covered bonds issued by a bank\\nincorporated in Singapore (directly or through its overseas\\nbranch), being covered bonds that are issued in compliance\\nwith the MAS Notice during the period from 15 February\\n2023 to 31 December 2028 (both dates inclusive); and\\n(b) the bank had transferred the cover pool to the approved\\ncovered bond company under a covered bond transaction\\nentered into during that period, for the purpose of securing\\nthe bank’s liabilities under the covered bonds.\\n(2) Despite any provision in this Act, if (and only if) the conditions\\nprescribed by rules made under section 7 for the purposes of this\\nsection are complied with, then any income derived by the approved\\ncovered bond company from the cover pool is treated for the purposes\\nof this Act as income of the bank (and not that of the approved\\ncovered bond company) for the year of assessment relating to the\\nbasis period in which the income is derived.\\nIncome Tax Act 1947\\n95\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(3) Rules made under section 7 for the purposes of this section may\\nprovide for the deduction of expenses, allowances and losses\\notherwise than in accordance with this Act.\\n(4) In this section —\\n“approved\\ncovered\\nbond\\ncompany”\\nmeans\\na\\ncompany\\nincorporated and resident in Singapore, that is —\\n(a) incorporated principally to enter into a covered bond\\ntransaction with a bank incorporated in Singapore\\nthat issues (directly or through its overseas branch)\\ncovered bonds; and\\n(b) approved by the Minister or an authorised body for\\nthe purposes of this section;\\n“cover pool”, in relation to any covered bonds, means the pool of\\nassets against which the covered bonds are collateralised;\\n“covered bond” means any bond, note or other debenture, where\\npayment of the liabilities to the holder thereof and any\\nliabilities arising from the enforcement of the rights of the\\nholder, is —\\n(a) secured by a cover pool; and\\n(b) recoverable from the issuer of the bond, note or\\ndebenture, regardless of whether the cover pool is\\nsufficient to pay off such liabilities;\\n“covered bond transaction” means —\\n(a) the issue of any covered bonds; and\\n(b) the transfer, by the issuer of the covered bonds, of the\\ncover pool for those covered bonds to another entity\\nfor the purpose of securing the liabilities of the issuer\\nunder those covered bonds;\\n“MAS Notice” means the applicable notice of the Monetary\\nAuthority of Singapore relating to the issuance of covered\\nbonds given under section 55 of the Banking Act 1970;\\nIncome Tax Act 1947\\n2020 Ed.\\n96\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“overseas branch”, in relation to a bank incorporated in\\nSingapore, means a branch of the bank situated outside\\nSingapore.\\n[Act 30 of 2023 wef 15/02/2023]\\nGains from the sale of foreign assets\\n10L.—(1) Despite anything in this Act, gains from the sale or\\ndisposal by an entity (called in this section the seller entity) of a\\nrelevant group of any movable or immovable property situated\\noutside Singapore at the time of such sale or disposal or any rights or\\ninterest thereof (called in this section a foreign asset), that are\\nreceived in Singapore from outside Singapore, are treated as income\\nchargeable to tax under section 10(1)(g) for the year of assessment\\nrelating to the basis period in which the gains are received in\\nSingapore.\\n(2) Subsection (1) only applies if —\\n(a) the gains would not otherwise be chargeable to tax as\\nincome under section 10(1); or\\n(b) the gains would otherwise be exempt from tax under this\\nAct.\\n(3) Subsection (1) applies only to gains from a sale or disposal of a\\nforeign asset that occurs on or after 1 January 2024.\\n(4) In this section, unless the circumstances require otherwise, the\\ntime when the foreign asset vests in the buyer or transferee under the\\nlaw governing the sale or disposal, is treated as the time of the sale or\\ndisposal of the foreign asset.\\n(5) In this section —\\n(a) an entity is a member of a group if its assets, liabilities,\\nincome, expenses and cash flows —\\n(i) are included in the consolidated financial statements\\nof the parent entity of the group; or\\n(ii) are\\nexcluded\\nfrom\\nthe\\nconsolidated\\nfinancial\\nstatements of the parent entity of the group solely\\nIncome Tax Act 1947\\n97\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\non size or materiality grounds or on the grounds that\\nthe entity is held for sale; and\\n(b) a group is a relevant group if —\\n(i) the entities of the group are not all incorporated,\\nregistered or established in a single jurisdiction; or\\n(ii) any entity of the group has a place of business in\\nmore than one jurisdiction.\\n(6) Subsection (1) does not apply to the prescribed percentage of\\ngains from the sale or disposal of any qualifying intellectual property\\nright as defined in section 43X(13) that are received in Singapore\\nfrom outside Singapore.\\n(7) In subsection (6), the prescribed percentage is the percentage of\\nthe\\nqualifying\\nintellectual\\nproperty\\nincome\\n(as\\ndefined\\nin\\nsection 43X(13)) mentioned in paragraph (c), that would have\\nqualified for the concessionary rate of tax under section 43X —\\n(a) had the seller entity been approved as an approved\\ncompany under that section on 1 January 2024 and its\\ntax relief period under that section had included the basis\\nperiod in which the sale or disposal occurred;\\n(b) had the seller entity made an election in respect of the\\nqualifying intellectual property right under section 43X(7)\\nfor the year of assessment for that basis period; and\\n(c) had qualifying intellectual property income been derived\\nfrom that qualifying intellectual property right in that basis\\nperiod.\\n(8) Subsection (1) does not apply to the gains from a sale or\\ndisposal of a foreign asset (not being an intellectual property right)\\nthat is —\\n(a) carried out as part of, or incidental to, the business\\nactivities of a prescribed financial institution;\\n(b) carried out as part of, or incidental to, the business\\nactivities or operations of an entity, being activities or\\noperations from which the entity derives income that is\\nexempt from tax, or that is taxed at a concessionary rate of\\nIncome Tax Act 1947\\n2020 Ed.\\n98\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\ntax, under section 13A, 13E, 13P, 43C, 43E, 43I, 43J, 43L,\\n43N, 43P, 43Q, 43R or 43U for the year of assessment for\\nthe basis period in which the sale or disposal occurred;\\n(c) carried out as part of, or incidental to, the business\\nactivities or operations of an entity, being activities or\\noperations from which the entity derives income that is\\nexempt from tax, or that is taxed at a concessionary rate of\\ntax, under Part 2, 3 or 4 of the Economic Expansion\\nIncentives (Relief from Income Tax) Act 1967 for the year\\nof assessment for the basis period in which the sale or\\ndisposal occurred; or\\n(d) carried out by an entity that is an excluded entity in the\\nbasis period in which the sale or disposal occurred.\\n(9) For the purpose of subsection (1), the following amounts of\\ngains from the sale or disposal of any foreign asset are treated as\\nreceived in Singapore from outside Singapore:\\n(a) any amount from such gains that is remitted to, or\\ntransmitted or brought into, Singapore;\\n(b) any amount from such gains that is applied in or towards\\nsatisfaction of any debt incurred in respect of a trade or\\nbusiness carried on in Singapore;\\n(c) any amount from such gains that is applied to the purchase\\nof any movable property which is brought into Singapore.\\n(10) For the purpose of subsection (1), where the sale or disposal of\\na foreign asset by the seller entity was at a price less than the\\nopen‑market price for the foreign asset, the Comptroller may treat the\\nfollowing amount as the amount of the gains received in Singapore\\nfrom outside Singapore:\\nA þ B \\u0001 C;\\nwhere —\\n(a) A is the amount of the gains actually received in Singapore\\nfrom outside Singapore;\\n(b) B is the open-market price for the foreign asset; and\\nIncome Tax Act 1947\\n99\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) C is the actual price for the sale or disposal of the foreign\\nasset.\\n(11) In subsection (10), the open-market price for a foreign asset is\\neither —\\n(a) the price which the foreign asset could have been sold for\\nin the open market on the date of its sale or disposal; or\\n(b) where the Comptroller is satisfied by reason of the special\\nnature of the foreign asset that it is not practicable to\\ndetermine the price mentioned in paragraph (a), such other\\nvalue as appears to the Comptroller to be reasonable in the\\ncircumstances.\\n(12) Subject to subsection (13), in ascertaining the amount of any\\ngains chargeable to tax under subsection (1), there is to be\\ndeducted —\\n(a) any expenditure incurred by the seller entity to acquire,\\ncreate or improve the foreign asset (including any\\nexpenditure\\nthat\\nwould\\nbe\\ndeductible\\nunder\\nsection\\n14(1)(a)\\nif\\nthe\\nforeign\\nasset\\nwere\\ncapital\\nemployed in acquiring income), to protect or preserve\\nthe value of the foreign asset, or to sell or dispose of the\\nforeign asset; and\\n(b) any loss incurred by the seller entity from the sale or\\ndisposal of any other foreign asset —\\n(i) where, had the sale or disposal resulted in gains (after\\ndeducting any expenditure under paragraph (a)) and\\nall of those gains had been received in Singapore,\\nthey would have been chargeable to tax under\\nsubsection (1); and\\n(ii) to the extent it has not already been deducted against\\nany gains chargeable to tax under subsection (1).\\n(13) The following are not deductible under subsection (12):\\n(a) any expenditure deducted under this Act against any other\\nincome (whether or not chargeable to or exempt from tax);\\n(b) capital expenditure computed by the following formula:\\nIncome Tax Act 1947\\n2020 Ed.\\n100\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nD \\u0001 E;\\n(b) where —\\n(i) D is the amount of capital expenditure for which any\\nallowance (including any balancing allowance) is\\nmade under this Act against any other income\\n(whether or not chargeable to or exempt from tax);\\nand\\n(ii) E is the amount of any balancing charge (or similar\\ncharge) made under this Act on the sale or disposal of\\nthe foreign asset.\\n(14) Where not all the gains from the sale or disposal of a foreign\\nasset are received in Singapore in the same basis period, a portion of\\nthe amount deductible under subsection (12)(a) as the Comptroller\\nconsiders reasonable is deductible for each basis period in which any\\nsuch gains are received in Singapore.\\n(15) In this section, the situation of property, and any right or\\ninterest therein, is determined in accordance with the following\\nprovisions:\\n(a) any immovable property, or any right or interest in\\nimmovable property, is situated where the immovable\\nproperty is physically located;\\n(b) any tangible movable property, or any right or interest in\\nsuch property, that is not the subject of any other paragraph\\nin this subsection, is situated where the tangible movable\\nproperty is physically located;\\n(c) a ship or aircraft, or any right or interest in a ship or\\naircraft, is situated where the owner, or the person entitled\\nto the right or interest, is resident;\\n(d) a secured or unsecured debt (other than a judgment debt or\\nsecurities), or any right or interest in such secured or\\nunsecured debt, is situated where the creditor is resident;\\n(e) a judgment debt, or any right or interest in a judgment debt,\\nis situated where the judgment is recorded;\\nIncome Tax Act 1947\\n101\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(f) any shares, equity interests or securities issued by any\\nmunicipal or governmental authority, or by any body\\ncreated by such authority, or any right or interest in such\\nshares, equity interests or securities, are situated where that\\nauthority is established;\\n(g) subject to paragraph (f), any shares in or securities issued\\nby a company, or any right or interest in such shares or\\nsecurities, are situated where the company is incorporated;\\n(h) subject to paragraph (f), any equity interests in any entity\\nwhich is not a company, or any right or interest in such\\nequity interests, are situated where the operations of the\\nentity are principally carried out;\\n(i) subject to paragraph (f) (and despite paragraphs (g) and\\n(h)), any registered shares, equity interests or securities, or\\nany right or interest in any registered shares, equity\\ninterests or securities, are situated where the shares,\\nequity\\ninterests\\nor\\nsecurities\\nare\\nregistered\\nor,\\nif\\nregistered in more than one register, where the principal\\nregister is situated;\\n(j) goodwill relating to a trade, business or profession is\\nsituated where the trade, business or profession is\\nprincipally carried on;\\n(k) any intellectual property right, or any licence or other right\\nin respect of any intellectual property right, is situated\\nwhere the owner of the intellectual property right, licence\\nor right is resident;\\n(l) any intangible movable property, or any right or interest in\\nany intangible movable property, that is not the subject of\\nany paragraph in this subsection, is situated where the\\nownership rights in respect of the property, right or interest\\nwould be primarily enforceable.\\n(16) In this section —\\n“consolidated financial statements” means financial statements\\nprepared by an entity in accordance with generally accepted\\naccounting standards, in which the assets, liabilities, income,\\nIncome Tax Act 1947\\n2020 Ed.\\n102\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nexpenses and cash flows of the entity, and the entities in\\nwhich it has a controlling interest, are presented as those of a\\nsingle economic unit;\\n“controlling interest”, in relation to an entity, means an equity\\ninterest in the entity such that the holder of the interest is\\nrequired by the law or a regulatory body of the jurisdiction it\\nis resident in, to consolidate in its financial statements the\\nassets, liabilities, income, expenses and cash flows of the\\nentity on a line-by-line basis in accordance with generally\\naccepted accounting standards;\\n“debt securities” has the meaning given by section 43H(4);\\n“entity” means —\\n(a) any legal person (including a limited liability\\npartnership) but not an individual;\\n(b) a general partnership or limited partnership; or\\n(c) a trust;\\n“equity interest”, in relation to an entity, means an interest that\\ncarries rights to the profits, capital or reserves of the entity\\nand is accounted for as equity under generally accepted\\naccounting standards;\\n“excluded entity”, in relation to a basis period, means —\\n(a) a pure equity-holding entity that satisfies all of the\\nfollowing conditions in that basis period:\\n(i) the entity submits to a public authority any\\nreturn, statement or account required under the\\nwritten law under which it is incorporated or\\nregistered, being a return, statement or account\\nwhich it is required by that law to submit to that\\nauthority on a regular basis;\\n(ii) the operations of the entity are managed and\\nperformed\\nin\\nSingapore\\n(whether\\nby\\nits\\nemployees or by other persons where the\\nactivities performed by such other persons for\\nIncome Tax Act 1947\\n103\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthe entity are subject to the direct and effective\\ncontrol of the entity);\\n(iii) the entity has adequate human resources and\\npremises\\nin\\nSingapore\\nto\\ncarry\\nout\\nthe\\noperations of the entity; or\\n(b) an entity that is not a pure equity-holding entity and\\nthat satisfies all of the following conditions in that\\nbasis period:\\n(i) the operations of the entity are managed and\\nperformed\\nin\\nSingapore\\n(whether\\nby\\nits\\nemployees or by other persons where the\\nactivities performed by such other persons for\\nthe entity are subject to the direct and effective\\ncontrol of the entity);\\n(ii) the entity has adequate economic substance in\\nSingapore, taking into account the following\\nconsiderations:\\n(A) the number of full-time employees of the\\nentity (or other persons managing or\\nperforming the entity’s operations) in\\nSingapore;\\n(B) the qualifications and experience of such\\nemployees or other persons;\\n(C) the\\namount\\nof\\nbusiness\\nexpenditure\\nincurred by the entity in respect of its\\noperations in Singapore;\\n(D) whether the key business decisions of the\\nentity are made by persons in Singapore;\\n“parent entity”, in relation to a group, means an entity that has a\\ncontrolling interest in all the other members of the group;\\n“prescribed financial institution” means —\\n(a) a bank licensed under the Banking Act 1970;\\nIncome Tax Act 1947\\n2020 Ed.\\n104\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) a\\nmerchant\\nbank\\nlicensed\\nunder\\nthe\\nBanking\\nAct 1970;\\n(c) a finance company licensed under the Finance\\nCompanies Act 1967;\\n(d) an insurer licensed or regulated under the Insurance\\nAct 1966; or\\n(e) a holder of a capital markets services licence under\\nthe Securities and Futures Act 2001;\\n“pure equity-holding entity” means an entity —\\n(a) whose function is to hold shares or equity interests in\\nany other entity; and\\n(b) that has no income other than —\\n(i) dividends or similar payments from the shares\\nor equity interests;\\n(ii) gains on the sale or disposal of the shares or\\nequity interests; or\\n(iii) income incidental to its activities of holding\\nshares or equity interests in any other entity;\\n“securities” means debentures and debt securities;\\n“shares” includes stocks.\\n(17) In this section, where an entity is a trust —\\n(a) references to anything done by, to or in relation to the\\nentity are to that thing done by, to or in relation to the\\ntrustee of the trust; and\\n(b) references to gains, income or property (or any right or\\ninterest thereof) of the entity are to those gains, income or\\nproperty (or any right or interest thereof) of the trustee of\\nthe trust derived or held by it in its capacity as the trustee of\\nthe trust.\\n[Act 30 of 2023 wef 01/01/2024]\\nIncome Tax Act 1947\\n105\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nAscertainment of income of clubs, trade associations, etc.\\n11.—(1) A body of persons, whether corporate or unincorporate,\\nthat carries on a club or similar institution and receives from its\\nmembers not less than half of its gross receipts on revenue account\\n(including entrance fees and subscriptions) is not deemed to carry on\\na business; but where less than half of such gross receipts are received\\nfrom members, the whole of the income from transactions both with\\nmembers and others (including entrance fees and subscriptions) is\\ndeemed to be receipts from a business, and the body of persons is\\nchargeable in respect of the profits therefrom.\\n(2) Where a body of persons, whether corporate or unincorporate,\\ncarries on a trade or professional association in such circumstances\\nthat more than half of its receipts by way of entrance fees and\\nsubscriptions from Singapore members are claimed or claimable as\\nallowable deductions for the purposes of section 14 —\\n(a) the body of persons is deemed to carry on a business;\\n(b) the whole of its income from transactions with Singapore\\nmembers and persons who are not members (including\\nentrance fees and subscriptions) is deemed to be receipts\\nfrom a business; and\\n(c) the body of persons is chargeable in respect of the profits\\nfrom the business.\\n(3) For the purposes of subsection (2), “body of persons” includes a\\ncompany limited by guarantee approved by the Minister or such\\nperson as the Minister may appoint, subject to such conditions as the\\nMinister or appointed person may impose.\\n(4) In this section —\\n“members”, in relation to a body of persons, means those\\npersons who are entitled to vote at a general meeting of the\\nbody at which effective control is exercised over its affairs;\\n“Singapore members” means members that are —\\n(a) persons, other than companies, resident in Singapore;\\n(b) companies incorporated in Singapore (excluding\\nbranches or offices located outside Singapore); or\\nIncome Tax Act 1947\\n2020 Ed.\\n106\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) in the case of companies incorporated outside\\nSingapore, the branches or offices of the companies\\nlocated within Singapore.\\nSources of income\\nTrading operations carried on partly in Singapore\\n12.—(1) Where a non‑resident person carries on a trade or business\\nof which only part of the operations is carried on in Singapore, the\\ngains or profits of the trade or business are deemed to be derived from\\nSingapore to the extent to which such gains or profits are not directly\\nattributable to that part of the operations carried on outside\\nSingapore.\\nNon‑resident shipping and air transport\\n(2) Where a non‑resident person carries on —\\n(a) the business of shipowner or charterer; or\\n(b) the business of air transport,\\nand any ship or aircraft owned or chartered by the non‑resident person\\ncalls at a port, an aerodrome or an airport in Singapore, the\\nnon‑resident person’s full profits arising from the carriage of\\npassengers, mail, livestock or goods shipped, or loaded into an\\naircraft, in Singapore are deemed to accrue in Singapore.\\n(2A) Subsection (2) does not apply to passengers, mail, livestock or\\ngoods which are brought to Singapore solely for transhipment, or for\\ntransfer from one aircraft to another or from an aircraft to a ship or\\nfrom a ship to an aircraft.\\n(2B) In subsections (2) and (2A), “ship” has the meaning given by\\nsection 2(1) of the Merchant Shipping Act 1995.\\n[2/2016]\\nCable or wireless undertakings\\n(3) Where a non‑resident person carries on in Singapore the\\nbusiness of transmitting messages by cable or by any form of\\nwireless apparatus, the non‑resident person’s full profits arising from\\nthe transmission in Singapore of any such messages, whether\\nIncome Tax Act 1947\\n107\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\noriginating in Singapore or elsewhere, to places outside Singapore are\\ndeemed to accrue in Singapore.\\nEmployment exercised in Singapore\\n(4) The gains or profits from any employment exercised in\\nSingapore are deemed to be derived from Singapore whether the\\ngains or profits from such employment are received in Singapore or\\nnot.\\nEmployment exercised outside Singapore on behalf of\\nGovernment\\n(5) The gains or profits from any employment exercised outside\\nSingapore on behalf of the Government by any individual in the\\ndischarge of governmental functions are deemed to be derived from\\nSingapore except where such individual is not a citizen or a resident\\nof Singapore.\\nInterest, etc.\\n(6) There is deemed to be derived from Singapore —\\n(a) any interest, commission, fee or any other payment in\\nconnection with any loan or indebtedness or with any\\narrangement, management, guarantee, or service relating\\nto any loan or indebtedness which is —\\n(i) borne, directly or indirectly, by a person resident in\\nSingapore\\nor\\na\\npermanent\\nestablishment\\nin\\nSingapore except in respect of any business carried\\non\\noutside\\nSingapore\\nthrough\\na\\npermanent\\nestablishment outside Singapore or any immovable\\nproperty situated outside Singapore; or\\n(ii) deductible against any income accruing in or derived\\nfrom Singapore; or\\n(b) any income derived from loans where the funds provided\\nby such loans are brought into or used in Singapore.\\n(6AA) To avoid doubt, the reference to interest in subsection (6) is,\\nin the case of an arrangement that is a finance lease of any machinery\\nIncome Tax Act 1947\\n2020 Ed.\\n108\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nor plant that is treated as sold by the lessor to the lessee pursuant to\\nregulations made under section 10C(1), a reference to the part of any\\npayment by the lessee that is income of the lessor under\\nsection 10C(2A).\\n[45/2018]\\n(6A) Subsection (6) does not apply to any payment for —\\n(a) any arrangement, management or service relating to any\\nloan\\nor\\nindebtedness,\\nwhere\\nsuch\\narrangement,\\nmanagement or service is performed outside Singapore\\nfor or on behalf of a person resident in Singapore or a\\npermanent establishment in Singapore by a non‑resident\\nperson who —\\n(i) in the event the non‑resident person is not an\\nindividual,\\nis\\nnot\\nincorporated,\\nformed\\nor\\nregistered in Singapore; and\\n(ii) in any event —\\n(A) does not by himself, herself or itself or in\\nassociation with others, carry on a business in\\nSingapore and does not have a permanent\\nestablishment in Singapore; or\\n(B) carries on a business in Singapore (by himself,\\nherself or itself or in association with others) or\\nhas a permanent establishment in Singapore,\\nbut the arrangement, management or service is\\nnot performed through that business carried on\\nin Singapore or that permanent establishment;\\nand\\n(b) any guarantee relating to any loan or indebtedness, where\\nthe guarantee is provided for or on behalf of a person\\nresident in Singapore or a permanent establishment in\\nSingapore by a guarantor who is a non‑resident person\\nwho —\\n(i) in the event the non‑resident person is not an\\nindividual,\\nis\\nnot\\nincorporated,\\nformed\\nor\\nregistered in Singapore; and\\nIncome Tax Act 1947\\n109\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(ii) in any event —\\n(A) does not by himself, herself or itself or in\\nassociation with others, carry on a business in\\nSingapore and does not have a permanent\\nestablishment in Singapore; or\\n(B) carries on a business in Singapore (by himself,\\nherself or itself or in association with others) or\\nhas a permanent establishment in Singapore,\\nbut\\nthe\\ngiving\\nof\\nthe\\nguarantee\\nis\\nnot\\neffectively\\nconnected\\nwith\\nthat\\nbusiness\\ncarried on in Singapore or that permanent\\nestablishment.\\nRoyalties, etc.\\n(7) There is deemed to be derived from Singapore —\\n(a) royalty or other payment in one lump sum or otherwise for\\nthe use of or the right to use any movable property;\\n(b) any payment for the use of or the right to use scientific,\\ntechnical,\\nindustrial\\nor\\ncommercial\\nknowledge\\nor\\ninformation or for the rendering of assistance or service\\nin connection with the application or use of such\\nknowledge or information;\\n(c) any payment for the management or assistance in the\\nmanagement of any trade, business or profession; or\\n(d) rent or other payment under any agreement or arrangement\\nfor the use of any movable property,\\nwhich is borne, directly or indirectly, by a person resident in\\nSingapore or a permanent establishment in Singapore (except in\\nrespect of any business carried on outside Singapore through a\\npermanent establishment outside Singapore) or which is deductible\\nagainst any income accruing in or derived from Singapore.\\n(7AA) Any payment by the lessee to the lessor under a finance lease\\nof any machinery or plant that is not treated as sold by the lessor to the\\nlessee pursuant to regulations made under section 10C(1), is treated\\nIncome Tax Act 1947\\n2020 Ed.\\n110\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nas a payment under an agreement or arrangement for the use of\\nmovable property under subsection (7)(d).\\n[45/2018]\\n(7AB) Subsection (7)(d) excludes any rent or other payments under\\nany agreement or arrangement for the use outside Singapore of any\\ntangible movable property, where —\\n(a) such use is for or incidental to the purpose of a trip to a\\ncountry outside Singapore that is made for the purpose of a\\ntrade, business, profession or vocation carried on —\\n(i) in Singapore by a person resident in Singapore; or\\n(ii) through a permanent establishment in Singapore; or\\n(b) such use is for or incidental to the purpose of maintaining a\\nrepresentative office outside Singapore that is maintained\\nfor the purpose of a trade, business, profession or vocation\\ncarried on in Singapore.\\n[32/2019]\\n(7A) Subsection (7) does not apply to any payment for —\\n(a) the rendering of assistance or service in connection with\\nthe application or use of scientific, technical, industrial or\\ncommercial\\nknowledge\\nor\\ninformation,\\nwhere\\nsuch\\nrendering of assistance or service is performed outside\\nSingapore for or on behalf of a person resident in\\nSingapore or a permanent establishment in Singapore by\\na non‑resident person who —\\n(i) in the event the non‑resident person is not an\\nindividual,\\nis\\nnot\\nincorporated,\\nformed\\nor\\nregistered in Singapore; and\\n(ii) in any event —\\n(A) does not by himself, herself or itself or in\\nassociation with others, carry on a business in\\nSingapore and does not have a permanent\\nestablishment in Singapore; or\\n(B) carries on a business in Singapore (by himself,\\nherself or itself or in association with others) or\\nIncome Tax Act 1947\\n111\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nhas a permanent establishment in Singapore,\\nbut the rendering of assistance or service is not\\nperformed through that business carried on in\\nSingapore or that permanent establishment;\\n(b) the management or assistance in the management of any\\ntrade, business or profession, where such management or\\nassistance is performed outside Singapore for or on behalf\\nof a person resident in Singapore or a permanent\\nestablishment in Singapore by a non‑resident person\\nwho —\\n(i) in the event the non‑resident person is not an\\nindividual,\\nis\\nnot\\nincorporated,\\nformed\\nor\\nregistered in Singapore; and\\n(ii) in any event —\\n(A) does not by himself, herself or itself or in\\nassociation with others, carry on a business in\\nSingapore and does not have a permanent\\nestablishment in Singapore; or\\n(B) carries on a business in Singapore (by himself,\\nherself or itself or in association with others) or\\nhas a permanent establishment in Singapore,\\nbut the management or assistance is not\\nperformed through that business carried on in\\nSingapore or that permanent establishment;\\nand\\n(c) the use of or the right to use software, information or\\ndigitised goods, not being a right to commercially exploit\\nin one form or another the copyright in such software,\\ninformation or digitised goods such as the right to —\\n(i) reproduce, modify or adapt, and distribute the\\nsoftware, information or digitised goods; or\\n(ii) prepare a derivative work based on the software,\\ninformation or digitised goods for distribution.\\n[37/2014]\\nIncome Tax Act 1947\\n2020 Ed.\\n112\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(7B) In subsection (7A)(c) —\\n“digitised goods” means text, images or sounds that are\\ntransferred through a handphone, fixed‑line phone, cable\\nnetwork, satellite, the Internet or other forms of electronic\\ntransmission, but does not include software;\\n“information” means —\\n(a) any information in any newspaper or magazine\\narticle or report, including financial and business\\ndata (such as foreign exchange, stock and property\\ndata), and other proprietary data; and\\n(b) any\\ninformation\\nobtained\\nsolely\\nfor\\nresearch\\npurposes.\\n[37/2014]\\nCommission or other payment of licensed international market\\nagent\\n(8) There is deemed to be derived from Singapore any commission\\nor other payment paid to a licensed international market agent for\\norganising or conducting a casino marketing arrangement with a\\ncasino operator in Singapore which is —\\n(a) borne, directly or indirectly, by a person resident in\\nSingapore or a permanent establishment in Singapore\\nexcept in respect of any business carried on outside\\nSingapore through a permanent establishment outside\\nSingapore; or\\n(b) deductible against any income accruing in or derived from\\nSingapore.\\n(9) In this section, “casino marketing arrangement”, “casino\\noperator” and “international market agent” have the meanings\\ngiven by the Casino Control Act 2006.\\n(10) In this section, “finance lease” has the meaning given by\\nsection 10C.\\n[45/2018]\\nIncome Tax Act 1947\\n113\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nPART 4\\nEXEMPTION FROM INCOME TAX\\nExempt income\\n13.—(1) There is exempt from tax —\\n(a) subject to subsection (2) and such conditions as may be\\nprescribed by regulations, the interest derived from —\\n(i) any qualifying debt securities issued during the\\nperiod from 28 February 1998 to 31 December 2028\\n(both dates inclusive) by any person who is not\\nresident in Singapore and who does not have any\\npermanent establishment in Singapore; and\\n[Act 30 of 2023 wef 30/10/2023]\\n(ii) any qualifying debt securities issued during the\\nperiod from 27 February 1999 to 31 December 2028\\n(both dates inclusive) by any person who is not\\nresident in Singapore and who carries on any\\noperation\\nin\\nSingapore\\nthrough\\na\\npermanent\\nestablishment in Singapore where the funds used\\nby that person to acquire the qualifying debt\\nsecurities are not obtained from the operation;\\n[Act 30 of 2023 wef 30/10/2023]\\n(aa) subject to subsection (2A) and such conditions as may be\\nprescribed by regulations, the discount from any qualifying\\ndebt securities issued during the period from 17 February\\n2006 to 31 December 2028 (both dates inclusive), by —\\n(i) any person who is not resident in Singapore and who\\ndoes not have any permanent establishment in\\nSingapore; or\\n(ii) any person who is not resident in Singapore and who\\ncarries on any operation in Singapore through a\\npermanent establishment in Singapore where the\\nfunds used by that person to acquire the qualifying\\ndebt securities are not obtained from the operation;\\n[Act 30 of 2023 wef 30/10/2023]\\nIncome Tax Act 1947\\n2020 Ed.\\n114\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(ab) subject to subsection (2B) and such conditions as may be\\nprescribed by regulations, any amount payable from any\\nIslamic debt securities which are qualifying debt securities,\\nand issued during the period from 1 January 2005 to\\n31 December 2028 (both dates inclusive), to any person —\\n(i) who is not resident in Singapore and who does not\\nhave any permanent establishment in Singapore; and\\n(ii) who is not resident in Singapore and who carries on\\nany operation in Singapore through a permanent\\nestablishment in Singapore where the funds used by\\nthat person to acquire the qualifying debt securities\\nare not obtained from the operation;\\n[Act 30 of 2023 wef 30/10/2023]\\n(b) subject to subsections (2C) and (2D) and such conditions\\nas may be prescribed by regulations —\\n(i) the interest derived by any person from any\\nqualifying project debt securities issued during the\\nperiod from 1 November 2006 to 31 December 2025\\n(both dates inclusive);\\n[Act 33 of 2022 wef 04/11/2022]\\n(ii) the discount, early redemption fee and redemption\\npremium derived by any person from any qualifying\\nproject debt securities issued during the period from\\n15 February 2007 to 31 December 2025 (both dates\\ninclusive); and\\n[Act 33 of 2022 wef 04/11/2022]\\n[Act 30 of 2023 wef 15/02/2023]\\n(iii) such other income derived by any person that is\\ndirectly attributable to qualifying project debt\\nsecurities issued on or after a prescribed date, as\\nmay be prescribed by regulations;\\n(ba) subject to subsection (2F) and such conditions as may be\\nprescribed by regulations, the early redemption fee and\\nredemption premium from any qualifying debt securities\\nissued during the period from 15 February 2007 to\\nIncome Tax Act 1947\\n115\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n31 December 2028 (both dates inclusive) that are derived\\nby any person —\\n(i) who is not resident in Singapore and who does not\\nhave any permanent establishment in Singapore; and\\n(ii) who is not resident in Singapore and who carries on\\nany operation in Singapore through a permanent\\nestablishment in Singapore where the funds used by\\nthat person to acquire the qualifying debt securities\\nare not obtained from the operation;\\n[Act 30 of 2023 wef 15/02/2023]\\n[Act 30 of 2023 wef 30/10/2023]\\n(bb) subject to subsection (2G) and such conditions as may be\\nprescribed by regulations, such other income directly\\nattributable to qualifying debt securities issued on or after a\\nprescribed date as may be prescribed by regulations, that is\\nderived by any person —\\n(i) who is not resident in Singapore and who does not\\nhave any permanent establishment in Singapore; and\\n(ii) who is not resident in Singapore and who carries on\\nany operation in Singapore through a permanent\\nestablishment in Singapore where the funds used by\\nthat person to acquire the qualifying debt securities\\nare not obtained from the operation;\\n(bc) subject to subsections (2H) and (2HA) and such conditions\\nas may be prescribed by regulations —\\n(i) the interest, discount, early redemption fee and\\nredemption premium derived by any person from\\nany qualifying debt securities (excluding Singapore\\nGovernment Securities) which —\\n(A) are issued during the period from 16 February\\n2008 to 31 December 2018 (both dates\\ninclusive);\\n(B) have an original maturity of not less than\\n10 years;\\nIncome Tax Act 1947\\n2020 Ed.\\n116\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(C) either —\\n(CA) if they are issued before 28 June 2013,\\ncannot be redeemed, called, exchanged\\nor converted within 10 years from the\\ndate of their issue; or\\n(CB) if they are issued on or after 28 June\\n2013,\\ncannot\\nhave\\ntheir\\ntenure\\nshortened to less than 10 years from\\nthe date of their issue, except under\\nsuch\\ncircumstances\\nas\\nmay\\nbe\\nprescribed by regulations; and\\n(D) cannot be re‑opened with a resulting tenure of\\nless than 10 years to the original maturity date;\\nand\\n[Act 30 of 2023 wef 15/02/2023]\\n(ii) such other income, as may be prescribed by\\nregulations, derived by any person that is directly\\nattributable to qualifying debt securities (excluding\\nSingapore Government Securities) which —\\n(A) are issued on or after such date as may be\\nprescribed by regulations;\\n(B) have an original maturity of not less than\\n10 years;\\n(C) cannot have their tenure shortened to less than\\n10 years from the date of their issue, except\\nunder such circumstances as may be prescribed\\nby regulations; and\\n(D) cannot be re‑opened with a resulting tenure of\\nless than 10 years to the original maturity date;\\n(bd) subject to subsection (2I) and such conditions as may be\\nprescribed by regulations, any amount payable to any\\nperson from any Islamic debt securities —\\nIncome Tax Act 1947\\n117\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(i) which are qualifying debt securities and issued\\nduring the period from 16 February 2008 to\\n31 December 2018 (both dates inclusive); and\\n(ii) the amount payable from which is not deductible\\nagainst any income of the issuer of those securities\\naccruing in or derived from Singapore;\\n(c) the official emoluments payable from Commonwealth\\nfunds to members of Commonwealth forces, and to\\npersons in the service of a Commonwealth government,\\nin Singapore, in respect of their offices under such\\nCommonwealth government, if such emoluments are\\nsubject to income tax in such Commonwealth country;\\n(d) any gains or profits arising from sums standing in the SRS\\naccount of any SRS member except where section 10G(13)\\napplies;\\n(e) the income of any institution, authority, person or fund\\nspecified in the First Schedule;\\n(f) the income of —\\n(i) any bona fide friendly society approved by the\\nComptroller;\\n(ii) any\\nco‑operative\\nsociety\\nregistered\\nunder\\nthe\\nCo‑operative Societies Act 1979;\\n(g) [Deleted by Act 29 of 2012]\\n(h) any sum received by way of commutation of pensions\\ngranted under any written law relating to pensions in\\nSingapore or, in the case of any other pension scheme, any\\nsum received by way of commutation of pensions by an\\nindividual under such a scheme to the extent of such sum as\\nthe Comptroller may determine relating to the period of\\nemployment of that individual with the employer before\\n1 January 1993;\\n(i) sums received by way of death gratuities or as consolidated\\ncompensation for death or injuries;\\nIncome Tax Act 1947\\n2020 Ed.\\n118\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(j) sums standing to the account of an individual in the Central\\nProvident Fund or any approved pension or provident fund\\ndesignated by the Minister under section 39(8) or\\nwithdrawn therefrom;\\n(ja) sums standing to the account of an individual in an\\napproved pension or provident fund (other than the Central\\nProvident Fund or any approved pension or provident fund\\ndesignated by the Minister under section 39(8)) to the\\nextent of the sum standing to his or her account as at\\n31 December 1992 and of such interest on that sum as the\\nComptroller may determine for the period 1 January 1993\\nto the date of his or her retirement (both dates inclusive)\\nand which are withdrawn only upon or after his or her\\nretirement in accordance with the rules or constitution of\\nthe fund;\\n(jb) any retiring gratuity received by an individual from an\\napproved pension or provident fund (other than the Central\\nProvident Fund or any approved pension or provident fund\\ndesignated by the Minister under section 39(8)) to the\\nextent of such amount of the gratuity as the Comptroller\\nmay determine relating to the period of employment of that\\nindividual with the employer before 1 January 1993;\\n(jc) [Deleted by Act 32 of 2019]\\n(jd) any voluntary contribution in cash made in 2013 or any\\nsubsequent year by a person of a description prescribed by\\nthe Minister, to the medisave account maintained under the\\nCentral Provident Fund Act 1953 of a self‑employed\\nindividual, up to —\\n(i) $1,500 per year (for contributions made before\\n2018); or\\n(ii) $2,730 per year (for contributions made in 2018 and\\nin each subsequent year),\\n(jd) less any previous contribution that is made to the same\\nmedisave account in the same year by the person of the\\nprescribed description in the person’s capacity as an\\nIncome Tax Act 1947\\n119\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nemployer (if applicable), and that is not treated as income\\nunder section 10B(5A);\\n(k) sums derived from, or received in, Singapore as pensions,\\nbeing —\\n(i) wound or disability pensions granted to members or\\nformer members of a Commonwealth force;\\n(ii) pensions granted to dependent relatives of any such\\nmember killed on war service or who died as a result\\nof war service injuries; or\\n(iii) wound or disability pensions granted to members or\\nformer members of civil defence organisations;\\n(l) pensions granted to any person under the provisions of the\\nWidows’ and Orphans’ Pension Act 1904 or under any\\napproved scheme within the meaning of that Act and\\npensions paid, by or out of any approved pension or\\nprovident fund or society, to or for the benefit of the widow\\nor children of a deceased contributor to such fund or\\nsociety;\\n(m) the income of any trade union registered under the Trade\\nUnions Act 1940 insofar as such income is not derived\\nfrom a trade or business carried on by such trade union;\\n(n) any income derived in the basis period for any year of\\nassessment before the year of assessment 2018 by any\\nperson who is not resident in Singapore from trading in\\nSingapore through consignees in any of the following\\ncommodities produced outside Singapore:\\n(i) rubber;\\n(ii) copra;\\n(iii) pepper;\\n(iv) tin;\\n(v) tin‑ore;\\n(vi) gambia;\\nIncome Tax Act 1947\\n2020 Ed.\\n120\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(vii) sago flour;\\n(viii) cloves;\\n(o) [Deleted by Act 32 of 2019]\\n(oa) payments liable to be made on or after 17 February 2012 to\\na person not resident in Singapore (excluding any\\npermanent establishment in Singapore) for the charter of\\nany ship (as defined in section 2(1) of the Merchant\\nShipping Act 1995) under any agreement or arrangement;\\n(p) [Deleted by Act 34 of 2016]\\n(q) the investment income of any approved pension or\\nprovident fund or society;\\n(r) the income derived during the period from 3 May 2002 to\\n31 March 2023 (both dates inclusive) by an individual not\\nresident in Singapore from acting as an arbitrator, and for\\nthis purpose, “arbitrator” means an individual appointed\\nfor any arbitration which is governed by the Arbitration\\nAct 2001 or the International Arbitration Act 1994 or\\nwould have been governed by either of those Acts had the\\nplace of arbitration been Singapore;\\n[Act 33 of 2022 wef 04/11/2022]\\n(ra) the income derived during the period from 1 April 2015 to\\n31 March 2023 (both dates inclusive) by a qualifying\\nmediator who is not resident in Singapore, for providing\\nthe services of a mediator for a mediation —\\n(i) that takes place in Singapore; or\\n(ii) that would have taken place in Singapore but for the\\nsettlement of the dispute or withdrawal of the claim\\nin question;\\n[Act 33 of 2022 wef 04/11/2022]\\n(rb) the income derived during the period from 1 April 2015 to\\n31 March 2023 (both dates inclusive) by an individual who\\nis not resident in Singapore, for providing the services of a\\nmediator for a qualifying mediation —\\n(i) that takes place in Singapore; or\\nIncome Tax Act 1947\\n121\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(ii) that would have taken place in Singapore but for the\\nsettlement of the dispute or withdrawal of the claim\\nin question;\\n[Act 33 of 2022 wef 04/11/2022]\\n(s) [Deleted by Act 39 of 2017]\\n(t) the income derived on or after 20 August 1968 from\\ninterest on moneys held on deposit in an approved bank in\\nSingapore by —\\n(i) a non‑resident individual; and\\n(ii) a person, other than an individual, if that person does\\nnot, by itself or in association with others, carry on a\\nbusiness in Singapore and does not have a permanent\\nestablishment in Singapore;\\n(ta) the income derived from interest on moneys held on\\ndeposit in an approved bank in Singapore by a non‑resident\\nperson\\n(not\\nbeing\\nan\\nindividual\\nnor\\na\\npermanent\\nestablishment\\nin\\nSingapore)\\nwho\\ncarries\\non\\nany\\noperation\\nin\\nSingapore\\nthrough\\na\\npermanent\\nestablishment in Singapore if the funds used by that\\nperson to make the deposit are not obtained from the\\noperation;\\n(u) [Deleted by Act 34 of 2016]\\n(ua) [Deleted by Act 34 of 2016]\\n(v) the interest received from such Asian Dollar Bonds issued\\non or before 31 December 2018 as may be approved in\\nwriting by the Minister or such person as the Minister may\\nappoint if the interest is received by —\\n(i) a non‑resident individual; and\\n(ii) a person, other than an individual, if that person does\\nnot, by itself or in association with others, carry on a\\nbusiness in Singapore and does not have a permanent\\nestablishment in Singapore;\\n(w) the income derived from an employment exercised on\\nboard a Singapore ship, as defined in the Merchant\\nIncome Tax Act 1947\\n2020 Ed.\\n122\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nShipping Act 1995, if the employment is exercised\\nsubstantially outside Singapore;\\n(x) the income derived by a person resident in Singapore from\\nany pension granted under any written law relating to\\npensions in Singapore, or from any pension paid under\\nsuch other pensions scheme as may be approved by the\\nMinister by notification in the Gazette to the extent of such\\namount of the pension as the Comptroller may determine\\nrelating to the period of employment of that person with\\nthe employer before 1 January 1993;\\n(y) such income as may be prescribed by regulations under\\nsection 43A, 43C, 43D or 43H;\\n(z) [Deleted by Act 29 of 2012]\\n(za) any dividends paid on or after 1 January 2008 by any\\ncompany resident in Singapore;\\n(zb) any subsidy, allowance or benefit provided by an employer\\nto an employee for the attendance by any child of the\\nemployee at an early childhood development centre\\nlicensed\\nunder\\nthe\\nEarly\\nChildhood\\nDevelopment\\nCentres Act 2017;\\n(zc) [Deleted by Act 34 of 2016]\\n(zd) the interest derived on or after 1 January 2005 by any\\nindividual from a deposit of moneys held in Singapore with\\nan approved bank or a finance company licensed under the\\nFinance Companies Act 1967;\\n(ze) the following income derived from Singapore on or after\\n1 January 2004 by any individual:\\n(i) any interest from debt securities;\\n(ii) any discount from debt securities which mature\\nwithin one year from the date of issue of those\\nsecurities;\\nIncome Tax Act 1947\\n123\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(iii) any income from an annuity, except income from —\\n(A) any annuity purchased by the employer of an\\nindividual in lieu of any pension or other\\nbenefit\\npayable\\nduring\\nthe\\nindividual’s\\nemployment\\nor\\nupon\\nthe\\nindividual’s\\nretirement; and\\n(B) any annuity purchased under SRS;\\n(iv) any income from any life insurance policy, except\\nincome referred to in section 10(3);\\n(v) any distribution made by the trustee of any collective\\ninvestment scheme constituted as a unit trust\\n(excluding any real estate investment trust and\\napproved REIT exchange‑traded fund) authorised\\nunder section 286 of the Securities and Futures\\nAct 2001 and the units of which are offered to the\\npublic for subscription, that is income or deemed to\\nbe income of the individual;\\n(va) any distribution made by the trustee of a collective\\ninvestment scheme constituted as a unit trust and\\nauthorised under section 286 of the Securities and\\nFutures Act 2001, that is an approved REIT\\nexchange‑traded fund and the units of which are\\noffered to the public for subscription, where the\\ndistribution —\\n(A) is not made out of a distribution that is in turn\\nmade out of income of the kinds mentioned in\\nsection 43(2A)(a)(i), (ii), (iii), (iv) and (v); and\\n(B) is\\nincome\\nor\\ntreated\\nas\\nincome\\nof\\nthe\\nindividual;\\n(vi) any fee or compensatory payment from securities\\nlending or repurchase arrangements,\\n(ze) except where such income is derived through a partnership\\nin Singapore or is derived from the carrying on of a trade,\\nbusiness or profession;\\nIncome Tax Act 1947\\n2020 Ed.\\n124\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(zf) any amount payable from Islamic debt securities on or after\\n1 January 2005 to any individual, except where such\\namount is derived by the individual through a partnership\\nin Singapore or from the carrying on of a trade, business or\\nprofession;\\n(zg) any distribution made by any trustee‑manager of a\\nregistered business trust;\\n(zh) any distribution made by any trustee of a real estate\\ninvestment trust of any income of the kinds mentioned in\\nsection 43(2A)(a)(i), (ii), (iii), (iv) and (v) to an individual,\\nexcept where such distribution is derived by the individual\\nthrough a partnership in Singapore or is derived from the\\ncarrying on of a trade, business or profession;\\n(zi) the following income derived from Singapore on or after\\n17 February 2006 by any individual:\\n(i) any discount from debt securities;\\n(ii) any distribution made by any restricted Singapore\\nscheme out of income derived from Singapore or\\nreceived in Singapore on or after 17 February 2006,\\nthat is income or deemed to be income of the\\nindividual,\\n(zi) except where such income is derived through a partnership\\nin Singapore or is derived from the carrying on of a trade,\\nbusiness or profession;\\n(zj) any income from any structured product offered by a\\nfinancial institution derived from Singapore —\\n(i) by an individual, in the basis period relating to the\\nyear of assessment 2008 and any subsequent year of\\nassessment, except where such income is derived\\nthrough a partnership in Singapore or is derived from\\nthe carrying on of a trade, business or profession;\\n(ii) by a non‑resident person (not being an individual)\\nif —\\nIncome Tax Act 1947\\n125\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(A) it does not, by itself or in association with\\nothers, carry on a business in Singapore, and\\ndoes not have a permanent establishment in\\nSingapore; and\\n(B) the contract in respect of the structured product\\nbetween it and the financial institution takes\\neffect during the period from 1 January 2007 to\\n31 December 2026 (both dates inclusive)\\nand —\\n(BA) if such contract is renewed or extended,\\nthe period for which the contract is\\nrenewed\\nor\\nextended\\ncommences\\nbefore 1 January 2027; or\\n[Act 33 of 2022 wef 04/11/2022]\\n(BB) if such contract is varied, the effective\\ndate of the variation is before 1 January\\n2027; or\\n[Act 33 of 2022 wef 04/11/2022]\\n(iii) by a non‑resident person (not being an individual)\\nwho carries on any operation in Singapore through a\\npermanent establishment in Singapore if —\\n(A) the funds used by that person to invest in the\\nstructured product are not obtained from the\\noperation; and\\n(B) the contract in respect of the structured product\\nbetween\\nthat\\nperson\\nand\\nthe\\nfinancial\\ninstitution takes effect during the period from\\n1 January 2007 to 31 December 2026 (both\\ndates inclusive) and —\\n(BA) if such contract is renewed or extended,\\nthe period for which the contract is\\nrenewed\\nor\\nextended\\ncommences\\nbefore 1 January 2027; or\\n[Act 33 of 2022 wef 04/11/2022]\\nIncome Tax Act 1947\\n2020 Ed.\\n126\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(BB) if such contract is varied, the effective\\ndate of the variation is before 1 January\\n2027;\\n[Act 33 of 2022 wef 04/11/2022]\\n(zk) any early redemption fee or redemption premium from\\ndebt securities derived from Singapore on or after\\n15 February 2007 by any individual, except where such\\nincome is derived through a partnership in Singapore or is\\nderived from the carrying on of a trade, business or\\nprofession;\\n[Act 30 of 2023 wef 15/02/2023]\\n(zl) such other income directly attributable to debt securities as\\nmay be prescribed by regulations derived from Singapore\\non or after a prescribed date by any individual, except\\nwhere such income is derived through a partnership in\\nSingapore or is derived from the carrying on of a trade,\\nbusiness or profession;\\n(zm) the income of any charity registered or exempt from\\nregistration under the Charities Act 1994;\\n(zn) [Deleted by Act 32 of 2019]\\n(zo) any sum accrued to a woman on or after 1 January 2011 by\\nway of maintenance in accordance with an order of court or\\na deed of separation;\\n(zp) any contribution to the Central Provident Fund in respect\\nof an individual, and any cash payment to an individual,\\nmade by the Government under the Workfare Bonus\\nScheme, the Workfare Special Payment scheme, the\\nWorkfare Special Bonus scheme or such other similar\\nscheme involving similar contributions or payments by the\\nGovernment as the Minister may, by notification in the\\nGazette, approve;\\n(zq) any contribution to the Central Provident Fund in respect\\nof an individual, and any cash payment to an individual,\\nmade by the Government under the Workfare Income\\nSupplement Scheme established under Part 6A of the\\nCentral Provident Fund Act 1953;\\nIncome Tax Act 1947\\n127\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(zr) any contribution by the Government to the PSE account, or\\nan account in the Central Provident Fund, of an individual\\nwho is or was a national serviceman, as part of the National\\nService Housing, Medical and Education Awards;\\n(zs) any distribution made to an individual by a trustee of an\\napproved REIT exchange‑traded fund, out of a distribution\\nfrom a real estate investment trust that is in turn made out\\nof income of the kinds mentioned in section 43(2A)(a)(i),\\n(ii), (iii), (iv) and (v), but not where the firstmentioned\\ndistribution is derived by the individual as a partner in a\\npartnership which is in Singapore or is derived from the\\ncarrying on of a trade, business or profession;\\n[Act 30 of 2023 wef 01/01/2024]\\n(zt) subject to subsection (2J), income of an entity (called in\\nthis section a sovereign risk pooling entity) that is\\nestablished and operated for the sole object of insuring\\nagainst risks faced by one or more governments (called in\\nthis section the insured governments) that arise directly or\\nindirectly from a disaster (whether natural or man‑made),\\nsubject to the following conditions:\\n(i) the sovereign risk pooling entity is not established or\\noperated for the object of deriving a profit and its\\nincome and capital may only be applied towards its\\nsole object;\\n(ii) its capital is provided only by governments, entities\\nwholly‑owned by governments, and organisations\\nthat are not established or operated for the object of\\nderiving a profit;\\n(iii) a government (not being an insured government) or\\nan\\nentity\\nor\\norganisation\\nmentioned\\nin\\nsub‑paragraph (ii) does not enjoy any risk coverage\\nor receive any benefit in any form (including\\ndividends) from the sovereign risk pooling entity;\\n(iv) benefits of any insurance provided by the sovereign\\nrisk pooling entity, as well as any distribution of the\\nIncome Tax Act 1947\\n2020 Ed.\\n128\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nentity’s property if it ceases operation, accrue only to\\nthe insured governments; and\\n[Act 30 of 2023 wef 01/01/2024]\\n(zu) any gains from the sale or disposal of an asset that are\\ntreated as income under section 10L and are assessable as\\nthe income of an individual under the provisions of this\\nAct.\\n[37/2014; 2/2016; 34/2016; 19/2017; 39/2017; 45/2018;\\n32/2019; 41/2020; 27/2021]\\n[Act 30 of 2023 wef 01/01/2024]\\n(1A) To avoid doubt, the reference to a charter of a ship in\\nsubsection (1)(oa) excludes a finance lease of the ship.\\n[41/2020]\\n(2) Subsection (1)(a) does not, unless otherwise approved by the\\nMinister or an authorised body, apply to any interest derived from any\\nqualifying debt securities issued during the period from 10 May 1999\\nto 31 December 2028 (both dates inclusive) where 50% or more of\\nthose securities which are outstanding at any time during the life of\\nthe issue are beneficially held or funded, directly or indirectly, by\\nrelated parties of the issuer of those securities and where such interest\\nis derived by —\\n(a) any related party of the issuer of those securities; or\\n(b) any other person where the funds used by such person to\\nacquire those securities are obtained, directly or indirectly,\\nfrom any related party of the issuer of those securities.\\n[37/2014; 45/2018]\\n[Act 41 of 2020 wef 06/12/2022]\\n[Act 30 of 2023 wef 30/10/2023]\\n(2A) Subsection (1)(aa) does not, unless otherwise approved by the\\nMinister or an authorised body, apply to any discount derived from\\nany qualifying debt securities where 50% or more of those securities\\nwhich are outstanding at any time during the life of the issue are\\nbeneficially held or funded, directly or indirectly, by related parties of\\nthe issuer of those securities and where such discount is derived by —\\n(a) any related party of the issuer of those securities; or\\nIncome Tax Act 1947\\n129\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) any other person where the funds used by such person to\\nacquire those securities are obtained, directly or indirectly,\\nfrom any related party of the issuer of those securities.\\n[37/2014]\\n[Act 41 of 2020 wef 06/12/2022]\\n(2B) Subsection (1)(ab) does not, unless otherwise approved by the\\nMinister or an authorised body, apply to any amount payable from\\nany Islamic debt securities which are qualifying debt securities where\\n50% or more of those securities which are outstanding at any time\\nduring the life of the issue are beneficially held or funded, directly or\\nindirectly, by related parties of the issuer of those securities and\\nwhere the amount is payable to —\\n(a) any related party of the issuer of those securities; or\\n(b) any other person where the funds used by such person to\\nacquire those securities are obtained, directly or indirectly,\\nfrom any related party of the issuer of those securities.\\n[37/2014]\\n[Act 41 of 2020 wef 06/12/2022]\\n(2C) Subsection (1)(b) does not, unless otherwise approved by the\\nMinister or an authorised body, apply to —\\n(a) any interest derived from any qualifying project debt\\nsecurities issued during the period from 1 November 2006\\nto 31 December 2025 (both dates inclusive);\\n[Act 33 of 2022 wef 04/11/2022]\\n(b) any discount, early redemption fee or redemption premium\\nderived from any qualifying project debt securities issued\\nduring the period from 15 February 2007 to 31 December\\n2025 (both dates inclusive); or\\n[Act 33 of 2022 wef 04/11/2022]\\n[Act 30 of 2023 wef 15/02/2023]\\n(c) such other income directly attributable to qualifying\\nproject debt securities issued on or after a prescribed\\ndate, as may be prescribed by regulations,\\nIncome Tax Act 1947\\n2020 Ed.\\n130\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nif 50% or more of those securities which are outstanding at any time\\nduring the life of the issue are beneficially held or funded, directly or\\nindirectly, by related parties of the issuer of those securities.\\n[37/2014; 39/2017]\\n[Act 41 of 2020 wef 06/12/2022]\\n(2D) Subsection (1)(b) does not apply to —\\n(a) any interest derived from any qualifying project debt\\nsecurities issued during the period from 1 November 2006\\nto 31 December 2025 (both dates inclusive);\\n[Act 33 of 2022 wef 04/11/2022]\\n(b) any discount, early redemption fee or redemption premium\\nderived from any qualifying project debt securities issued\\nduring the period from 15 February 2007 to 31 December\\n2025 (both dates inclusive); or\\n[Act 33 of 2022 wef 04/11/2022]\\n[Act 30 of 2023 wef 15/02/2023]\\n(c) such other income directly attributable to qualifying\\nproject debt securities issued on or after a prescribed\\ndate, as may be prescribed by regulations,\\nif the securities are held by less than 4 persons at any time during the\\nlife of the issue, unless —\\n(d) approval has been granted by the Minister or an authorised\\nbody to such application;\\n[Act 41 of 2020 wef 06/12/2022]\\n(e) each person holding the securities is either —\\n(i) a company resident in Singapore; or\\n(ii) a trustee of a real estate investment trust (REIT),\\nbeing a trustee that is resident in Singapore and that\\nholds the securities for the benefit of the unitholders\\nof the REIT;\\n[Act 33 of 2022 wef 04/11/2022]\\n(f) the company or REIT is listed on the Singapore Exchange\\neither on the date of issue of the securities or within\\n6 months from that date; and\\n[Act 33 of 2022 wef 04/11/2022]\\nIncome Tax Act 1947\\n131\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(g) the income from the securities received by the company or\\ntrustee is declared to be distributable to the shareholders of\\nthe company or unitholders of the REIT (as the case may\\nbe) within 6 months from the end of the basis period in\\nwhich it is received.\\n[37/2014; 39/2017]\\n[Act 33 of 2022 wef 04/11/2022]\\n(2E) Regulations made under subsection (1)(b), (bc) and (bd) may\\nprovide for the determination of the amount of income of the person\\nto be exempted and for the deduction of expenses, allowances and\\nlosses of the person otherwise than in accordance with this Act.\\n(2F) Subsection (1)(ba) does not, unless otherwise approved by the\\nMinister or an authorised body, apply to any early redemption fee or\\nredemption premium derived from any qualifying debt securities\\nwhere —\\n(a) 50% or more of those securities which are outstanding at\\nany time during the life of the issue are beneficially held or\\nfunded, directly or indirectly, by related parties of the\\nissuer of those securities; and\\n(b) such fee, premium or cost is derived by —\\n(i) any related party of the issuer of those securities; or\\n(ii) any other person where the funds used by such\\nperson to acquire those securities are obtained,\\ndirectly or indirectly, from any related party of the\\nissuer of those securities.\\n[37/2014]\\n[Act 41 of 2020 wef 06/12/2022]\\n[Act 30 of 2023 wef 15/02/2023]\\n(2G) Subsection (1)(bb) does not, unless otherwise approved by the\\nMinister or an authorised body, apply to such other income directly\\nattributable to qualifying debt securities as may be prescribed by\\nregulations under that provision where —\\n(a) 50% or more of those securities which are outstanding at\\nany time during the life of the issue are beneficially held or\\nIncome Tax Act 1947\\n2020 Ed.\\n132\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nfunded, directly or indirectly, by related parties of the\\nissuer of those securities; and\\n(b) such income is derived by —\\n(i) any related party of the issuer of those securities; or\\n(ii) any other person where the funds used by such\\nperson to acquire those securities are obtained,\\ndirectly or indirectly, from any related party of the\\nissuer of those securities.\\n[37/2014]\\n[Act 41 of 2020 wef 06/12/2022]\\n(2H) Subsection (1)(bc) does not, unless otherwise approved by the\\nMinister or an authorised body, apply to any interest, discount, early\\nredemption fee or redemption premium derived from any qualifying\\ndebt securities or such other income directly attributable to qualifying\\ndebt securities as may be prescribed by regulations under that\\nprovision where —\\n(a) 50% or more of those securities which are outstanding at\\nany time during the life of the issue are beneficially held or\\nfunded, directly or indirectly, by related parties of the\\nissuer of those securities; and\\n(b) such income is derived by —\\n(i) any related party of the issuer of those securities; or\\n(ii) any other person where the funds used by such\\nperson to acquire those securities are obtained,\\ndirectly or indirectly, from any related party of the\\nissuer of those securities.\\n[37/2014]\\n[Act 41 of 2020 wef 06/12/2022]\\n[Act 30 of 2023 wef 15/02/2023]\\n(2HA) Subsection (1)(bc) does not apply to —\\n(a) any interest, discount, early redemption fee or redemption\\npremium from qualifying debt securities issued on or after\\n28 June 2013; or\\n[Act 30 of 2023 wef 15/02/2023]\\nIncome Tax Act 1947\\n133\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) such other income, directly attributable to qualifying debt\\nsecurities as may be prescribed by regulations under that\\nprovision,\\nthat is derived on or after the date on which the tenure of any portion\\nof those qualifying debt securities is shortened to less than 10 years\\nfrom the date of their issue, where the shortening of the tenure occurs\\nunder such circumstances as may be prescribed by regulations made\\nunder that provision.\\n(2I) Subsection (1)(bd) does not, unless otherwise approved by the\\nMinister or an authorised body, apply to any amount payable from\\nany Islamic debt securities which are qualifying debt securities where\\n50% or more of those securities which are outstanding at any time\\nduring the life of the issue are beneficially held or funded, directly or\\nindirectly, by related parties of the issuer of those securities and\\nwhere the amount is payable to —\\n(a) any related party of the issuer of those securities; or\\n(b) any other person where the funds used by such person to\\nacquire those securities are obtained, directly or indirectly,\\nfrom any related party of the issuer of those securities.\\n[37/2014]\\n[Act 41 of 2020 wef 06/12/2022]\\n(2J) Despite any other provisions of this Act, in determining for any\\nyear of assessment the income of a sovereign risk pooling entity\\nwhose income is exempt under subsection (1)(zt) —\\n(a) any outgoings and expenses incurred by the entity in the\\nproduction of its income for any year of assessment, and\\nallowable under this Act, may only be deducted against its\\nincome for that year of assessment, and any excess of such\\noutgoings and expenses over the income must be\\ndisregarded; and\\n(b) the allowances under sections 19, 19A, 20, 21 and 22\\nrelating to the production of its income for a year of\\nassessment may only be deducted against that income, and\\nany excess of such allowances over the income must be\\ndisregarded.\\n[45/2018]\\nIncome Tax Act 1947\\n2020 Ed.\\n134\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(3) Nothing in subsection (1) is to be construed to exempt in the\\nhands of the recipients any dividends, interest, bonuses, salaries or\\nwages paid wholly or in part out of income so exempted.\\nIncome made for purpose which will promote or enhance\\neconomic or technological development\\n(4) Where the Minister is of the opinion that any payment in the\\nnature of any income referred to in section 12(6) or (7) is made for\\nany purpose which will promote or enhance the economic or\\ntechnological development of Singapore, the Minister may, by\\nnotification in the Gazette, provide that the income is, subject to\\nsuch conditions as the Minister may impose, exempt from tax wholly\\nor in part and either generally or in respect of certain classes of\\npersons; and such income is as from the date and to the extent\\nspecified by the notification exempt from tax.\\n(5) [Deleted by Act 49 of 2004]\\nIncome derived by short‑term visiting employees\\n(6) There is exempt from tax any income accruing in or derived\\nfrom Singapore in respect of gains or profits from any employment\\nexercised in Singapore for not more than 60 days in the year\\npreceding any year of assessment by a person who is not resident in\\nSingapore in that year of assessment.\\n(7) Subsection (6) does not apply to —\\n(a) the emoluments received by a director of a company; or\\n(b) the gains or profits of public entertainers, as defined in\\nsection 40A, whose visits are not substantially supported\\nfrom public funds of the government of another country.\\nIncome received from outside Singapore\\n(7A) There is exempt from tax any income arising from sources\\noutside Singapore and received in Singapore —\\n(a) by any individual who is not resident in Singapore; and\\n(b) on or after 1 January 2004 by any individual who is\\nresident in Singapore if the Comptroller is satisfied that the\\nIncome Tax Act 1947\\n135\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\ntax exemption would be beneficial to the individual, but\\nexcludes such income received by the individual through a\\npartnership in Singapore.\\n(8) Where the conditions specified in subsection (9) are satisfied,\\nthere is exempt from tax —\\n(a) any dividend derived from any territory outside Singapore;\\n(b) any profit derived from any trade or business carried on by\\na branch in any territory outside Singapore of a company\\nresident in Singapore; and\\n(c) any income derived from any professional, consultancy\\nand other services rendered in any territory outside\\nSingapore only if the Comptroller is satisfied that the\\nincome is derived, for the purposes of this Act, from\\noutside Singapore,\\nand received in Singapore —\\n(d) on or after 1 June 2003 by any person, not being an\\nindividual, resident in Singapore;\\n(e) during 1 June 2003 to 31 December 2003 (both dates\\ninclusive) by any individual resident in Singapore; and\\n(f) on or after 1 January 2004 by any individual resident in\\nSingapore through a partnership in Singapore.\\n[37/2014]\\n(8A) [Deleted by Act 39 of 2017]\\n(8B) [Deleted by Act 39 of 2017]\\n(8C) [Deleted by Act 39 of 2017]\\n(8D) [Deleted by Act 39 of 2017]\\n(9) The conditions referred to in subsection (8) are —\\n(a) the income is subject to tax of a similar character to income\\ntax (by whatever name called) under the law of the territory\\nfrom which the income is received;\\n(b) at the time the income is received in Singapore by the\\nperson resident in Singapore, the highest rate of tax of a\\nIncome Tax Act 1947\\n2020 Ed.\\n136\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nsimilar character to income tax (by whatever name called)\\nlevied under the law of the territory from which the income\\nis received on any gains or profits from any trade or\\nbusiness carried on by any company in that territory at that\\ntime is not less than 15%; and\\n(c) the Comptroller is satisfied that the tax exemption would\\nbe beneficial to the person resident in Singapore.\\n(9A) To avoid doubt, in subsection (9)(a), income is subject to tax if\\ntax has been paid, or tax (not being deferred tax) is to be paid on that\\nincome.\\n(9B) The Minister or such person as the Minister may appoint may\\nin\\nany\\nparticular\\ncase\\nwaive\\nthe\\ncondition\\nreferred\\nto\\nin\\nsubsection (9)(a), subject to such conditions as the Minister or\\nappointed person may impose.\\n(10) Where the income referred to in subsection (8) consists of\\ndividends paid by a company, the tax referred to in subsection (9)(a)\\nis —\\n(a) where the company is resident in the territory from which\\nthe dividends are received, the tax paid in that territory by\\nthe company in respect of its income out of which the\\ndividends are paid; and\\n(b) the tax paid on the dividends in the territory from which the\\ndividends are received.\\n(11) The Minister may make regulations generally to give full\\neffect to or for carrying out the purposes of subsection (8).\\n(12) The Minister may by order —\\n(a) exempt from tax wholly or in part; or\\n(b) provide that tax at such concessionary rate of tax be levied\\nand paid on,\\nthe income received by a person resident in Singapore from such\\nsource in any country outside Singapore as may be specified in the\\norder.\\nIncome Tax Act 1947\\n137\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(12A) Every order made under subsection (12) still in force on\\n1 January 2026, that exempts from tax any of the following, applies\\non or after that date (and despite anything in the order) only to income\\ndescribed in subsection (12B):\\n(a) any income received in Singapore by the trustee of a real\\nestate investment trust;\\n(b) any income received in Singapore by the trustee of a\\nsub‑trust of a real estate investment trust where all rights or\\ninterests in the property of the sub‑trust are held for the\\nbenefit of the beneficiaries of the real estate investment\\ntrust;\\n(c) any income\\nreceived in\\nSingapore\\nby\\na company\\nincorporated in Singapore the share capital of which is\\n100% owned (whether directly or indirectly) by the trustee\\nof a real estate investment trust.\\n[34/2016; 32/2019]\\n[Act 33 of 2022 wef 04/11/2022]\\n(12B) Subsection (12A) applies to income received in Singapore by\\nthe trustee or the company and exempt from tax by the order, that is\\npaid out of income or gains —\\n(a) relating to any immovable property situated outside\\nSingapore that is acquired (directly or indirectly) by the\\ntrustee or the company before 1 January 2026; and\\n(b) derived, either at a time the trustee or the company owns\\n(directly or indirectly) the property, or from the disposal by\\nthe trustee or the company of its interest in that property.\\n[34/2016; 32/2019]\\n[Act 33 of 2022 wef 04/11/2022]\\n(12C) To avoid doubt, any exemption on or after 1 January 2026\\nreferred to in subsection (12A) is subject to the conditions and\\nrestrictions of the exemption as prescribed in the order, insofar as\\nthose conditions and restrictions remain applicable.\\n[37/2014; 2/2016; 32/2019]\\n(13) An order made under subsection (12) may —\\n(a) be either general or specific;\\nIncome Tax Act 1947\\n2020 Ed.\\n138\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) prescribe the conditions subject to which the income will\\nbe exempt from tax or be taxed at a concessionary rate of\\ntax;\\n(c) provide that the Minister may require all or any of the\\nconditions referred to in paragraph (b) to be complied with\\nto the Comptroller’s satisfaction;\\n(d) prescribe a condition requiring the person to satisfy the\\nComptroller that all or any of the conditions referred to in\\nparagraph (b) have been complied with before the income\\nis received in Singapore.\\n(13A) The conditions referred to in subsection (13) need not be\\nincluded in the order for the purpose of publication in the Gazette.\\n(14) [Deleted by Act 19 of 2013]\\n(15) The Minister may, at any time, by rules made under section 7,\\nadd to, vary or amend the list of commodities mentioned in\\nsubsection (1)(n).\\n(16) In this section —\\n“approved bank” means a bank or merchant bank licensed under\\nthe Banking Act 1970;\\n“approved bond intermediary” means a financial institution\\napproved as such by the Minister or such person as the\\nMinister may appoint;\\n“approved REIT exchange‑traded fund” has the meaning given\\nby section 43(10);\\n[Deleted by Act 30 of 2023 wef 15/02/2023]\\n“child”, in relation to an employee, means any legitimate child,\\nillegitimate child, stepchild, child adopted in accordance with\\nany written law relating to the adoption of children and any\\nchild whom the employee is the legal guardian;\\n“debt securities” has the meaning given by section 43H;\\n“deposit”, in relation to any deposit of moneys referred to in\\nsubsection (1)(t), (ta) or (zd) which is made on or after\\n7 October 2004 and which matures on or after 2 June 2005,\\nIncome Tax Act 1947\\n139\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nmeans a deposit which falls within the meaning of deposit in\\nsection 4B of the Banking Act 1970 and is treated as such by\\nthe Monetary Authority of Singapore for the purposes of that\\nsection;\\n“early redemption fee”, in relation to debt securities, qualifying\\ndebt securities or qualifying project debt securities, means\\nany fee payable by the issuer of the securities on the early\\nredemption of the securities;\\n[Act 30 of 2023 wef 15/02/2023]\\n“finance lease”, in relation to a ship, means a lease of the ship\\n(including any arrangement or agreement made in connection\\nwith the lease) that has the effect of transferring substantially\\nthe obsolescence, risks or rewards incidental to ownership of\\nthe ship to the lessee;\\n“financial derivative” means a derivative the payoffs of which\\nare linked, whether in whole or in part, to the payoffs or\\nperformance of any financial assets, securities, financial\\ninstruments or indices, but does not include a derivative the\\npayoffs of which are wholly linked to the payoffs or\\nperformance of commodities;\\n“financial institution” means an institution licensed or approved\\nby the Monetary Authority of Singapore, and includes an\\ninstitution approved as a Finance and Treasury Centre under\\nsection 43E;\\n“financial sector incentive (bond market) company” means a\\ncompany approved as such by the Minister or such person as\\nhe may appoint;\\n“financial sector incentive (capital market) company” means a\\ncompany approved as such by the Minister or an authorised\\nbody;\\n[S 759/2022]\\n[Act 41 of 2020 wef 06/12/2022]\\n“financial sector incentive (project finance) company” means a\\ncompany approved as such by the Minister or such person as\\nthe Minister may appoint;\\nIncome Tax Act 1947\\n2020 Ed.\\n140\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“financial sector incentive (standard tier) company” has the\\nmeaning given by section 43H(4);\\n“Islamic\\ndebt\\nsecurities”\\nhas\\nthe\\nmeaning\\ngiven\\nby\\nsection 43H(4);\\n“medisave contribution ceiling” has the meaning given by\\nsection 39(13);\\n“national serviceman” has the meaning given by the Enlistment\\nAct 1970;\\n[Deleted by Act 30 of 2023 wef 15/02/2023]\\n“PSE account” has the meaning given by the Education\\nEndowment and Savings Schemes Act 1992;\\n“qualifying debt securities” means —\\n(a) Singapore Government securities issued during the\\nperiod from 28 February 1998 to 31 December 2028\\n(both dates inclusive);\\n[Act 30 of 2023 wef 30/10/2023]\\n(b) bonds, notes, commercial papers, certificates of\\ndeposits and AT1 instruments within the meaning\\nof section 10I(2), which are arranged in accordance\\nwith regulations made for this purpose —\\n(i) by any financial institution in Singapore and\\nissued during the period from 28 February 1998\\nto 31 December 2013 (both dates inclusive);\\n(ii) by\\nany\\napproved\\nbond\\nintermediary\\nand\\nissued —\\n(A) during the period from 27 February 1999\\nto\\n31\\nDecember\\n2028\\n(both\\ndates\\ninclusive)\\nunder\\nany\\nprescribed\\nprogramme the arrangement of which is\\ncompleted on or before 31 December\\n2003; or\\n[Act 30 of 2023 wef 30/10/2023]\\nIncome Tax Act 1947\\n141\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(B) during the period from 27 February 1999\\nto\\n31\\nDecember\\n2003\\n(both\\ndates\\ninclusive) in any other case;\\n(iii) by any financial sector incentive (bond market)\\ncompany and issued during the period from\\n1 January 2004 to 31 December 2018 (both\\ndates inclusive);\\n[Act 30 of 2023 wef 15/02/2023]\\n(iv) by any financial sector incentive (standard tier)\\ncompany or financial sector incentive (capital\\nmarket) company and issued during the period\\nfrom 1 January 2014 to 31 December 2023\\n(both dates inclusive); or\\n[Act 30 of 2023 wef 15/02/2023]\\n(v) by any of the following persons and issued\\nduring the period from 15 February 2023 to\\n31 December 2028 (both dates inclusive):\\n(A) a bank or merchant bank licensed under\\nthe Banking Act 1970;\\n(B) a finance company licensed under the\\nFinance Companies Act 1967;\\n(C) a person who holds a capital markets\\nservices licence under the Securities and\\nFutures Act 2001 to carry on a business in\\nany of the following regulated activities:\\n(CA) advising on corporate finance;\\n(CB) dealing\\nin\\ncapital\\nmarkets\\nproducts;\\n(D) such other person as may be prescribed\\nby rules made under section 7;\\n[Act 30 of 2023 wef 15/02/2023]\\n(c) Islamic debt securities which are arranged in\\naccordance with regulations made for this purpose —\\nIncome Tax Act 1947\\n2020 Ed.\\n142\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(i) by any financial institution in Singapore and\\nissued during the period from 1 January 2005 to\\n31 December 2013 (both dates inclusive);\\n(ii) by any financial sector incentive (bond market)\\ncompany and issued during the period from\\n1 January 2005 to 31 December 2018 (both\\ndates inclusive);\\n[Act 30 of 2023 wef 15/02/2023]\\n(iii) by any financial sector incentive (standard tier)\\ncompany or financial sector incentive (capital\\nmarket) company and issued during the period\\nfrom 1 January 2014 to 31 December 2023\\n(both dates inclusive); or\\n(iv) by any of the following persons and issued\\nduring the period from 15 February 2023 to\\n31 December 2028 (both dates inclusive):\\n(A) a bank or merchant bank licensed under\\nthe Banking Act 1970;\\n(B) a finance company licensed under the\\nFinance Companies Act 1967;\\n(C) a person who holds a capital markets\\nservices licence under the Securities and\\nFutures Act 2001 to carry on a business in\\nany of the following regulated activities:\\n(CA) advising on corporate finance;\\n(CB) dealing\\nin\\ncapital\\nmarkets\\nproducts;\\n(D) such other person as may be prescribed\\nby rules made under section 7; or\\n[Act 30 of 2023 wef 15/02/2023]\\n(d) debt securities whose values are derived from insured\\nloss events underlying them, that are issued by a\\nSpecial Purpose Reinsurance Vehicle during the\\nperiod\\nbetween\\n20\\nDecember\\n2018\\nand\\n31 December 2028 (both dates inclusive), where —\\nIncome Tax Act 1947\\n143\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(i) if the date of issue is between 20 December\\n2018 and 31 December 2023 (both dates\\ninclusive) — at least 20% of the issue costs\\nfor the issue are required to be paid to persons\\nor partnerships carrying on any trade, business\\nor profession in Singapore; or\\n(ii) if the date of issue is between 1 January 2024\\nand 31 December 2028 (both dates inclusive)\\n— at least 30% of the issue costs for the issue\\nare\\nrequired\\nto\\nbe\\npaid\\nto\\npersons\\nor\\npartnerships carrying on any trade, business\\nor profession in Singapore,\\n[Act 30 of 2023 wef 30/10/2023]\\nbut, unless otherwise approved by the Minister or an\\nauthorised body, excludes any debt securities issued on or\\nafter 10 May 1999 and any Islamic debt securities issued on\\nor after 1 January 2005 which, during its primary launch —\\n(e) are issued to less than 4 persons; and\\n(f) 50% or more of the issue of debt securities or Islamic\\ndebt securities is beneficially held or funded, directly\\nor indirectly, by related parties of the issuer of those\\ndebt securities or Islamic debt securities;\\n[S 759/2022]\\n[Act 41 of 2020 wef 06/12/2022]\\n“qualifying mediation” means a mediation that is administered\\nby a body or an organisation that provides services for the\\nconduct of mediation (called in this section a mediation\\nservice provider), and that is prescribed under section 7;\\n“qualifying mediator” means an individual who is certified or\\naccredited under a mediator certification or accreditation\\nscheme prescribed under section 7;\\n“qualifying project debt securities” means debt securities —\\n(a) which are arranged in accordance with regulations\\nmade for this purpose —\\nIncome Tax Act 1947\\n2020 Ed.\\n144\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(i) by any financial institution in Singapore and\\nissued during the period from 1 November\\n2006 to 31 December 2013 (both dates\\ninclusive);\\n(ii) by any financial sector incentive (bond market)\\ncompany or financial sector incentive (project\\nfinance) company and issued during the period\\nfrom 1 November 2006 to 31 December 2023\\n(both dates inclusive);\\n[Act 33 of 2022 wef 04/11/2022]\\n[Act 30 of 2023 wef 15/02/2023]\\n(iii) by any financial sector incentive (standard tier)\\ncompany or financial sector incentive (capital\\nmarket) company and issued during the period\\nfrom 1 January 2014 to 31 December 2023\\n(both dates inclusive); or\\n[Act 33 of 2022 wef 04/11/2022]\\n[Act 30 of 2023 wef 15/02/2023]\\n(iv) by any of the following persons and issued\\nduring the period from 15 February 2023 to\\n31 December 2025 (both dates inclusive):\\n(A) a bank or merchant bank licensed under\\nthe Banking Act 1970;\\n(B) a finance company licensed under the\\nFinance Companies Act 1967;\\n(C) a person who holds a capital markets\\nservices licence under the Securities and\\nFutures Act 2001 to carry on a business in\\nany of the following regulated activities:\\n(CA) advising on corporate finance;\\n(CB) dealing\\nin\\ncapital\\nmarkets\\nproducts;\\n(D) such other person as may be prescribed\\nby rules made under section 7;\\n[Act 30 of 2023 wef 15/02/2023]\\nIncome Tax Act 1947\\n145\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) the interest and other income directly attributable to\\nwhich are funded primarily by cash flows from an\\ninfrastructure\\nasset\\nor\\nproject\\nprescribed\\nby\\nregulations (called in this definition a prescribed\\nasset or project); and\\n(c) the proceeds from the issue of which are only used to\\nacquire, develop or invest in a prescribed asset or\\nproject, or to refinance a previous borrowing which\\nwas only used for that purpose; where the gearing\\nratio of such prescribed asset or project is approved\\nby the Minister or an authorised body in a case where\\nthe debt securities are issued by a person in Singapore\\nor the prescribed asset or project is in Singapore,\\n[S 759/2022]\\n[Act 41 of 2020 wef 06/12/2022]\\nbut does not include, except with the approval of the Minister\\nor an authorised body (which approval may be subject to such\\nconditions\\nas\\nthe\\nMinister\\nmay\\nimpose),\\nany\\ndebt\\nsecurities —\\n(d) which are issued to less than 4 persons; or\\n(e) 50% or more of the issue of which is beneficially held\\nor funded, directly or indirectly, by related parties of\\nthe issuer of those debt securities;\\n[Act 41 of 2020 wef 06/12/2022]\\n“real estate investment trust” has the meaning given by\\nsection 43(10);\\n“redemption premium”, in relation to debt securities, qualifying\\ndebt securities or qualifying project debt securities, means\\nany premium payable by the issuer of the securities on the\\nredemption of the securities upon their maturity or on the\\nearly redemption of the securities;\\n[Act 30 of 2023 wef 15/02/2023]\\n“registered business trust” and “trustee‑manager” have the\\nmeanings given by the Business Trusts Act 2004;\\n[Deleted by Act 33 of 2022 wef 04/11/2022]\\nIncome Tax Act 1947\\n2020 Ed.\\n146\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“restricted Singapore scheme” means a collective investment\\nscheme constituted as a unit trust that is a restricted\\nSingapore scheme within the meaning of the regulations\\nmade under the Securities and Futures Act 2001 for the\\npurpose of section 305 of that Act;\\n“securities lending or repurchase arrangement” has the meaning\\ngiven by section 10H(12);\\n“Singapore Government securities” has the meaning given by\\nsection 43H;\\n“structured product” means a sum of money paid on terms under\\nwhich —\\n(a) it may not be repaid in full and the return from which\\nis, partly or wholly, determined by the performance\\nof any embedded derivative instrument; and\\n(b) its repayment may be in money or money’s worth,\\nbut does not include any sum paid in respect of any debt\\nsecurities, units of a real estate investment trust, units of a\\nunit trust, loan, stand‑alone financial derivative or such other\\nfinancial product as the Minister may by regulations\\nprescribe;\\n“unit trust” has the meaning given by section 10A.\\n[37/2014; 2/2016; 39/2017; 45/2018; 32/2019; 1/2020;\\n41/2020; 27/2021]\\n(16A) In paragraph (d) of the definition of “qualifying debt\\nsecurities” in subsection (16) —\\n“issue costs”, in relation to an issue of debt securities, means\\nlegal fees, modelling fees, arranger or underwriting fees,\\nrating agency fees, audit fees, claim review fees, indenture\\ntrustee fees, listing or trustee fees, loss reserve specialist and\\nadministrator fees, and other fees that are connected with or\\nincidental to the issue;\\n“Special Purpose Reinsurance Vehicle” has the meaning given\\nby regulation 2 of the Insurance (General Provisions and\\nIncome Tax Act 1947\\n147\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nExemptions for Special Purpose Reinsurance Vehicles)\\nRegulations 2018.\\n[32/2019]\\n(16B) In paragraphs (b)(v) and (c)(iv) of the definition of\\n“qualifying debt securities” and paragraph (a)(iv) of the definition\\nof “qualifying project debt securities” in subsection (16), “advising\\non corporate finance” and “dealing in capital markets products” have\\nthe meanings given by the Second Schedule to the Securities and\\nFutures Act 2001.\\n[Act 30 of 2023 wef 15/02/2023]\\n(17) For the purposes of the definitions of “qualifying mediation”\\nand “qualifying mediator” in subsection (16), the Minister may\\nprescribe a description of mediation service providers and a\\ndescription of mediator certification or accreditation schemes that\\nare set out on a specified website of the Ministry of Law, as amended\\nfrom time to time.\\n[2/2016]\\n(18) In subsection (2D) —\\n(a) an umbrella VCC that holds securities for one sub‑fund is\\ntreated as a different person from the same umbrella VCC\\nthat holds securities for another sub‑fund;\\n(b) an umbrella VCC that holds securities for one sub‑fund is\\nconsidered a company that satisfies subsection (2D)(e) and\\n(f) if —\\n(i) the umbrella VCC is resident in Singapore; and\\n(ii) the sub‑fund is listed on the Singapore Exchange on\\nthe date of issue of the securities or within 6 months\\nfrom that date;\\n(c) income that is received by an umbrella VCC from\\nsecurities\\nheld\\nby\\nit\\nfor\\none\\nsub‑fund\\nsatisfies\\nsubsection (2D)(g) if the income is declared to be\\ndistributable to holders of its shares in respect of that\\nsub‑fund within 6 months from the end of the basis period\\nin which the income is received.\\n[28/2019]\\nIncome Tax Act 1947\\n2020 Ed.\\n148\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(19) In paragraph (e) of the definition of “qualifying debt\\nsecurities” and paragraph (d) of the definition of “qualifying\\nproject debt securities” in subsection (16), an umbrella VCC to\\nwhich securities are issued during their primary launch for the\\npurpose of one sub‑fund, is treated as a different person from the\\nsame umbrella VCC to which securities are issued during their\\nprimary launch for the purpose of another sub‑fund.\\n[28/2019]\\n(20) A reference in this section to a related party of the issuer of\\nqualifying debt securities or qualifying project debt securities is, if\\nthe securities are issued by or to an umbrella VCC in relation to any of\\nits sub‑funds, a reference to a person that is related to the sub‑fund in\\nsuch manner as may be prescribed by rules made under section 7, and\\nrules made for this purpose may make different provisions for\\ndifferent circumstances.\\n[28/2019]\\nExemption of shipping profits\\n13A.—(1) There is exempt from tax the income of a shipping\\nenterprise derived or deemed to be derived from the operation of\\nSingapore ships or foreign ships as hereinafter provided.\\n(1A) For income derived before 19 February 2020, such exemption\\nin respect of Singapore ships is backdated to the date of provisional\\nregistration if the owner has subsequently obtained a permanent\\ncertificate of registry in respect of the ship.\\n[41/2020]\\n(1B) For the year of assessment 2009 and subsequent years of\\nassessment, the income of a shipping enterprise mentioned in this\\nsection includes income derived from foreign exchange and risk\\nmanagement activities which are carried out in connection with and\\nincidental to the operation by the shipping enterprise of Singapore\\nships.\\n(1C) The income of a shipping enterprise mentioned in this section\\nincludes income derived at any time in the period between\\n22 February 2010 and 23 February 2015 (both dates inclusive) by\\nthe shipping enterprise from the provision of ship management\\nIncome Tax Act 1947\\n149\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nservices to any qualifying company in respect of Singapore ships\\nowned or operated by the qualifying company.\\n[2/2016]\\n(1CA) The income of a shipping enterprise mentioned in this\\nsection includes income derived on or after 1 June 2011 by the\\nshipping enterprise from —\\n(a) the sale of a Singapore ship or a provisionally registered\\nship;\\n(b) the assignment to another of all its rights as the buyer under\\na contract for the construction of a ship that, at the time of\\nthe assignment, is intended to be registered or is\\nprovisionally registered under the Merchant Shipping\\nAct 1995; or\\n(c) the sale of all of the issued ordinary shares in a special\\npurpose company of the shipping enterprise where, at the\\ntime of the sale of the shares, the special purpose\\ncompany —\\n(i) owns a Singapore ship or a provisionally registered\\nship; or\\n(ii) is the buyer under a contract for the construction of a\\nship that, at that time, is intended to be registered or\\nis provisionally registered under the Merchant\\nShipping Act 1995,\\n(c) and the special purpose company does not at that time own\\nany foreign ship.\\n[2/2016; 41/2020]\\n(1CB) The income referred to in subsection (1CA) does not\\ninclude —\\n(a) income\\nof\\nthe\\nshipping\\nenterprise\\nderived\\nbefore\\n12 December 2018 as a lessor of a ship under a finance\\nlease that is treated as a sale under section 10C; or\\n(b) income of the shipping enterprise that is derived as part of a\\nbusiness of trading in ships or of constructing ships for\\nsale.\\n[41/2020]\\nIncome Tax Act 1947\\n2020 Ed.\\n150\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(1CC) [Deleted by Act 41 of 2020]\\n(1CD) The income of a shipping enterprise mentioned in this\\nsection includes income derived on or after 24 February 2015 by the\\nshipping enterprise from providing prescribed ship management\\nservices to a qualifying company in respect of Singapore ships owned\\nor operated by the qualifying company.\\n[2/2016]\\n(1CE) The income of a shipping enterprise mentioned in this\\nsection includes income derived on or after 24 February 2015 by the\\nshipping enterprise from —\\n(a) any mobilisation or holding of any ship used or to be used\\nfor offshore oil or gas activity outside the limits of the port\\nof Singapore; or\\n(b) the demobilisation of any ship after it has been so used,\\nwhere the mobilisation, holding or demobilisation is undertaken by\\nthe shipping enterprise itself using a Singapore ship.\\n[2/2016]\\n(1CF) The income of a shipping enterprise mentioned in this\\nsection includes income derived on or after 24 February 2015 by the\\nshipping enterprise from —\\n(a) any mobilisation or holding of a Singapore ship owned or\\noperated by the shipping enterprise and used or to be used\\nfor offshore oil or gas activity outside the limits of the port\\nof Singapore; or\\n(b) the demobilisation of a Singapore ship owned or operated\\nby the shipping enterprise after it has been so used.\\n[2/2016]\\n(1CG) The income of a shipping enterprise mentioned in this\\nsection includes income derived on or after 24 February 2015 by the\\nshipping enterprise from the leasing of any container (other than\\nfinance leasing) carried out in connection with its operation of\\nSingapore ships and that is incidental to such operation.\\n[2/2016]\\nIncome Tax Act 1947\\n151\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(1CH) The income of a shipping enterprise mentioned in this\\nsection includes income derived on or after 25 March 2016 by the\\nshipping enterprise from —\\n(a) any mobilisation or holding of any ship used or to be used\\nfor offshore renewable energy activity, or offshore mineral\\nactivity, outside the limits of the port of Singapore; or\\n(b) the demobilisation of any ship after it has been so used,\\nwhere the mobilisation, holding or demobilisation is undertaken by\\nthe shipping enterprise itself using a Singapore ship.\\n[34/2016]\\n(1CI) The income of a shipping enterprise mentioned in this section\\nincludes income derived on or after 25 March 2016 by the shipping\\nenterprise from —\\n(a) any mobilisation or holding of a Singapore ship owned or\\noperated by the shipping enterprise and used or to be used\\nfor offshore renewable energy activity, or offshore mineral\\nactivity, outside the limits of the port of Singapore; or\\n(b) the demobilisation of a Singapore ship owned or operated\\nby the shipping enterprise after it has been so used.\\n[34/2016]\\n(1CJ) The income of a shipping enterprise mentioned in this section\\nincludes income derived on or after 25 March 2016 from foreign\\nexchange and risk management activities that are carried out in\\nconnection with and incidental to any activity mentioned in\\nsubsection (1CH) or (1CI).\\n[34/2016]\\n(1CK) The income of a shipping enterprise mentioned in this\\nsection includes income derived on or after 29 December 2016, from\\nforeign exchange and risk management activities that are carried out\\nin connection with and incidental to any activity mentioned in\\nsubsection (1CD), (1CE) or (1CF).\\n[34/2016]\\n(1CL) The income of a shipping enterprise mentioned in this\\nsection includes income derived on or after 12 December 2018 by the\\nshipping enterprise from foreign exchange and risk management\\nactivities that are carried out in connection with or incidental to the\\nIncome Tax Act 1947\\n2020 Ed.\\n152\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nfinance leasing of a Singapore ship for use outside the limits of the\\nport of Singapore.\\n[32/2019]\\n(1CM) A reference to a Singapore ship in subsection (1), (1B),\\n(1CD), (1CE), (1CF), (1CG), (1CH), (1CI) or (1CL) includes a\\nprovisionally registered ship.\\n[41/2020]\\n(1CN) Subsection (1CM) only applies to income derived in relation\\nto the provisionally registered ship on or after 19 February 2020.\\n[41/2020]\\n(1D) This section does not apply to income of a shipping enterprise,\\nbeing\\nan\\ninternational\\nshipping\\nenterprise\\napproved\\nunder\\nsection 13E, derived in the basis period for the year of assessment\\n2012 or any subsequent year of assessment from the operation of\\nforeign ships.\\n(2) A shipping enterprise must maintain separate accounts for the\\nincome derived or deemed to be derived from the operation of each\\nship.\\n[41/2020]\\n(2A) Where expenses have been incurred by a shipping enterprise\\nwhich are not directly attributable to a ship, the Comptroller may\\nallocate as expenses such amounts as might reasonably and properly\\nhave been incurred in the normal course of its business in respect of\\nsuch ship.\\n[41/2020]\\n(3) In determining the income of a shipping enterprise from the\\noperation of ships —\\n(a) the capital allowances provided under sections 16, 17, 18,\\n18B, 18C, 19, 19A, 20, 21 and 22 may only be made\\nagainst the income exempt under this section, and the\\nbalance of such allowances is not available as a deduction\\nagainst any other income; and\\n(b) a loss incurred by a shipping enterprise in respect of any\\nactivity referred to in subsection (1), (1B), (1C), (1CD),\\n(1CE), (1CF), (1CG), (1CH), (1CI), (1CJ) or (1CK) for any\\nbasis period may only be deducted against the income from\\nIncome Tax Act 1947\\n153\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nany activity referred to in any of those subsections, and the\\nbalance of such loss is not available as a deduction against\\nany other income.\\n[2/2016; 34/2016; 41/2020]\\n(3A) Where a shipping enterprise incurs a loss on any sale or\\nassignment mentioned in subsection (1CA) in any basis period, that\\nloss may only be deducted against the gains derived from another sale\\nor assignment mentioned in subsection (1CA) in that same basis\\nperiod, and the balance of the loss is not available as a deduction\\nagainst any other income.\\n(4) The Comptroller must for each year of assessment issue to a\\nshipping enterprise a statement (to be included in a notice of any\\nassessment served on the shipping enterprise under section 76)\\nshowing the amount of income derived from the operation of ships by\\nthe shipping enterprise; and Parts 17 and 18 (relating to assessments,\\nobjections and appeals) and any rules made under this Act apply, with\\nthe necessary modifications, as if such statement were a notice of\\nassessment.\\n[41/2020]\\n(5) Subject to subsection (8) where any statement issued under\\nsubsection (4) has become final and conclusive, the amount of\\nincome shown in the statement does not form part of the statutory\\nincome of a shipping enterprise for the year of assessment to which\\nthe statement relates and is exempt from tax.\\n(5A) [Deleted by Act 19 of 2013]\\n(6) [Deleted by Act 19 of 2013]\\n(7) A shipping enterprise must deliver to the Comptroller a copy of\\nthe accounts mentioned in subsection (2) made up to any date\\nspecified by the Comptroller whenever called upon to do so by\\nwritten notice.\\n(8) Despite subsections (1) to (7), where it appears to the\\nComptroller that any income of a shipping enterprise which has\\nbeen exempted from tax ought not to have been so exempted for any\\nyear of assessment, the Comptroller may, at any time within 4 years\\nafter the expiry of that year of assessment, make such assessment or\\nIncome Tax Act 1947\\n2020 Ed.\\n154\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nadditional assessment upon the shipping enterprise as may appear to\\nbe necessary in order to make good any loss of tax.\\n(9) Parts 17 and 18 (relating to assessments, objections and appeals)\\nand any rules made under this Act apply, with the necessary\\nmodifications, as if an assessment under subsection (8) were a\\nnotice of assessment.\\n(10) This section does not affect the operation of section 27 in\\nascertaining the income of a non‑resident person owning or operating\\nships.\\n[41/2020]\\n(11) Where —\\n(a) income derived in the basis period for a year of assessment\\nfrom the operation of a ship is exempt from tax under this\\nsection; and\\n(b) in that or a subsequent basis period, the registry of the ship\\nunder the Merchant Shipping Act 1995 is closed, deemed\\nclosed or suspended,\\nthen the capital allowances in respect of that ship for the year of\\nassessment of the basis period mentioned in paragraph (b) and\\nsubsequent years of assessment are to be calculated on the residue of\\nexpenditure or reducing value of the assets after taking into account\\nthe capital allowances provided for in sections 16, 17, 18, 18B, 18C,\\n19, 19A, 20, 21 and 22 for those years of assessment during which\\nincome derived from the operation of the ship was exempt from tax\\nunder this section, even if no claim for such allowances was made.\\n[41/2020]\\n(12) Subsections (3) and (11) have effect despite any other\\nprovisions of this Act.\\n(13) Despite anything in this section, a shipping enterprise may at\\nany time elect that its income derived or deemed to be derived from\\nthe operation of all its Singapore ships and provisionally registered\\nships be taxed at the rate prescribed by section 43(1)(a).\\n[41/2020]\\n(14) An election under subsection (13) must be made by a shipping\\nenterprise by written notice to the Comptroller and is irrevocable.\\nIncome Tax Act 1947\\n155\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(15) Where a shipping enterprise has made an election under\\nsubsection (13) —\\n(a) subsections (1) to (10) do not apply to the income derived\\nor deemed to be derived from the operation of Singapore\\nships and provisionally registered ships by the shipping\\nenterprise\\nfor\\nthe\\nyear\\nof\\nassessment\\nimmediately\\nfollowing the year in which the election is made and for\\nsubsequent years of assessment;\\n(b) any capital allowances or the balance thereof which were\\nnot made against the income of the shipping enterprise\\nexempt under this section for any year of assessment\\nduring which its income was exempt from tax are not\\navailable to be made under section 23 against its income\\n(other than income exempt under this section) for the year\\nof assessment immediately following the year in which the\\nelection is made and for subsequent years of assessment;\\n(c) any loss or the balance thereof incurred by the shipping\\nenterprise in respect of the operation of a Singapore ship or\\na provisionally registered ship for any year of assessment\\nwhich was not deducted against its income exempt under\\nthis section for any year of assessment during which its\\nincome was exempt from tax is not available as a deduction\\nunder section 37(3)(a) against its income (other than\\nincome exempt under this section) for the year of\\nassessment immediately following the year in which the\\nelection is made and for subsequent years of assessment;\\nand\\n(d) any capital allowances in respect of a Singapore ship or a\\nprovisionally registered ship of the shipping enterprise for\\nthe year of assessment immediately following the year in\\nwhich the election is made and for subsequent years of\\nassessment, are to be calculated in accordance with\\nsubsection (11) as if the registry of the ship under the\\nMerchant Shipping Act 1995 is closed, deemed closed or\\nsuspended.\\n[41/2020]\\nIncome Tax Act 1947\\n2020 Ed.\\n156\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(16) In this section —\\n“container” has the meaning given by section 43P(7);\\n“demobilisation”, in relation to a ship, means the standing down\\nand restoration of the ship to the state it was in before\\nmobilisation;\\n“finance leasing” means —\\n(a) in relation to a container, a lease of the container\\n(including any arrangement or agreement made in\\nconnection with the lease) that has the effect of\\ntransferring substantially the obsolescence, risks or\\nrewards incidental to ownership of the container to\\nthe lessee; and\\n(b) in relation to a ship, a lease of the ship (including any\\narrangement or agreement made in connection with\\nthe\\nlease)\\nthat\\nhas\\nthe\\neffect\\nof\\ntransferring\\nsubstantially the obsolescence, risks or rewards\\nincidental to ownership of the ship to the lessee;\\n“foreign ship” means a seagoing ship other than a Singapore\\nship or provisionally registered ship;\\n“holding”, in relation to a ship, means keeping the ship on a\\nstandby mode for use in offshore oil or gas activity, offshore\\nrenewable energy activity or offshore mineral activity;\\n“mobilisation”, in relation to a ship, means bringing the ship to a\\nstate of readiness for use in offshore oil or gas activity,\\noffshore renewable energy activity or offshore mineral\\nactivity, and includes moving the ship to the deployment\\nsite, and outfitting and re‑engineering the ship to bring it to a\\nstate of readiness for use in such activity;\\n“operation” means —\\n(a) in relation to a Singapore ship or provisionally\\nregistered ship —\\n(i) the carriage of passengers, mail, livestock or\\ngoods outside the limits of the port of\\nSingapore;\\nIncome Tax Act 1947\\n157\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(ii) towing or salvage operations outside the limits\\nof the port of Singapore;\\n(iii) the charter of the ship for use outside the limits\\nof the port of Singapore;\\n(iv) for the year of assessment 2007 and subsequent\\nyears of assessment, the use outside the limits\\nof the port of Singapore of the ship as a dredger,\\nseismic ship or ship used for offshore oil or gas\\nactivity;\\n(v) the use, on or after 25 March 2016, outside the\\nlimits of the port of Singapore of the ship for\\noffshore renewable energy activity or offshore\\nmineral activity; or\\n(vi) the finance leasing of the ship for use outside\\nthe limits of the port of Singapore, but only\\nwhere the income in question —\\n(A) is derived from the finance leasing on or\\nafter 12 December 2018; and\\n(B) is not derived by the shipping enterprise\\nas part of a business of trading in ships or\\nconstructing ships for sale; and\\n(b) in relation to a foreign ship, the carriage of\\npassengers, mail, livestock or goods shipped in\\nSingapore, except where such carriage arises solely\\nfrom transhipment from Singapore, or is only within\\nthe limits of the port of Singapore;\\n“prescribed ship management services” means activities that\\nsupport or are incidental to owning or operating a ship, and\\nwhich are prescribed as prescribed ship management services\\nunder section 7;\\n“provisionally registered ship” means a ship that is provisionally\\nregistered under the Merchant Shipping Act 1995, but\\nexcludes one whose registry is closed, deemed closed or\\nsuspended;\\nIncome Tax Act 1947\\n2020 Ed.\\n158\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“qualifying company”, in relation to a shipping enterprise,\\nmeans a company at least 50% of the total number of the\\nissued ordinary shares of which are beneficially and directly\\nowned by the enterprise;\\n“ship” has the meaning given by section 2(1) of the Merchant\\nShipping Act 1995;\\n“ship management services” means any of the following\\nactivities in respect of a ship:\\n(a) making a purchase or sale of it, or a decision\\nregarding its ownership;\\n(b) deciding on its flag and registry;\\n(c) sourcing for and deciding on financing for its\\nacquisition;\\n(d) awarding\\ncontracts,\\nentering\\ninto\\nalliances,\\nor\\ndeciding on pooling, in respect of it;\\n(e) securing its employment or its cargo;\\n(f) planning its route and tonnage, including the issuance\\nof voyage instructions;\\n(g) appointing a ship manager, ship agent or stevedore\\nfor it;\\n(h) collecting or arranging for the collection of freight,\\ncharter hire, or other payment in exchange for its use;\\n(i) arranging insurance for it;\\n(j) undertaking crew‑related matters for it, including the\\nprovision of qualified crew, the appointment of a\\ncrew manager, the provision of crew training or the\\narrangement of crew insurance;\\n(k) arranging\\nor\\nsupervising\\ndry‑docking,\\nrepair,\\noverhaul, alteration, maintenance or lay‑up of it;\\n(l) ensuring that it is adequately equipped with supplies,\\nprovisions, spares, stores and lubricating oil;\\nIncome Tax Act 1947\\n159\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(m) supervising\\nits\\nconstruction,\\nconversion\\nor\\nregistration;\\n(n) liaising with the relevant competent authorities or\\nbodies on safety and manning requirements for it and\\nany other similar matters;\\n“shipping enterprise” means any company owning or operating\\nSingapore ships, provisionally registered ships or foreign\\nships;\\n“Singapore ship” means a ship in respect of which a certificate\\nof registry (other than a provisional certificate of registry) has\\nbeen issued under the Merchant Shipping Act 1995 and its\\nregistry is not closed or deemed to be closed or suspended;\\n“special purpose company”, in relation to a shipping enterprise,\\nmeans a company that is wholly‑owned by the shipping\\nenterprise and whose only business or intended business is\\nthe operation of Singapore ships.\\n[2/2016; 34/2016; 39/2017; 32/2019; 41/2020]\\nAssessment of income not entitled to exemption under\\nsection 43A, 43C, 43D or 43H\\n13B.—(1) Despite section 13(1)(y), where it appears to the\\nComptroller that any income of a person which has been exempted\\nfrom tax under regulations made under section 43A, 43C, 43D or\\n43H, ought not to have been so exempted for any year of assessment,\\nthe Comptroller may, at any time within 4 years after the expiry of\\nthat year of assessment, make such assessment or additional\\nassessment upon the person as may appear to be necessary in order\\nto make good any loss of tax.\\n(2) Parts 17 and 18 (relating to assessments, objections and appeals)\\nand any rules made under this Act apply, with the necessary\\nmodifications, as if an assessment under subsection (1) were a\\nnotice of assessment.\\nIncome Tax Act 1947\\n2020 Ed.\\n160\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nExemption of income of trustee of trust fund arising from\\nfunds managed by fund manager in Singapore\\n13C.—(1) There is exempt from tax such income as the Minister\\nmay by regulations prescribe of the trustee of any prescribed trust\\nfund arising from funds managed in Singapore by any fund manager.\\n(2) The Minister may by regulations —\\n(a) make such transitional and saving provisions as the\\nMinister may consider necessary or expedient in relation\\nto the repeal of section 13C in force immediately before\\n1 September 2007;\\n(b) provide for the determination of the amount of income of\\nthe trustee of any prescribed trust fund to be exempt from\\ntax; and\\n(c) make provision generally for giving full effect to or for\\ncarrying out the purposes of this section.\\n(3) This section does not apply to —\\n(a) a trustee of a trust fund that is constituted on or after 1 April\\n2014; or\\n(b) a trustee of a trust fund that —\\n(i) is constituted before 1 April 2014; and\\n(ii) is not a prescribed trust fund at any time before that\\ndate.\\n(4) This section does not apply to any income derived on or after\\n1 April 2014 except to the extent allowed by subsection (5).\\n[37/2014]\\n(5) This section continues to apply to income mentioned in\\nsubsection (1) of a trustee of a trust fund that is derived on or after\\n1 April 2014 and before the end of the basis period of that trustee in\\nwhich that date falls, if —\\n(a) the trustee has a basis period that ends on a date other than\\n31 March; and\\n(b) the trustee makes an election, at the time of lodgment of the\\nreturn of income for the year of assessment 2015 or 2016\\nIncome Tax Act 1947\\n161\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(as the case may be), or such later time as the Comptroller\\nmay allow, to apply this section to such income.\\n[37/2014]\\nExemption of income of prescribed persons arising from funds\\nmanaged by fund manager in Singapore\\n13D.—(1) There is exempt from tax such income as the Minister\\nmay by regulations prescribe of any prescribed person arising from\\nfunds managed in Singapore by any fund manager.\\n(1A) Subsection (1) does not apply to any income of a prescribed\\nperson that is —\\n(a) derived in the prescribed person’s capacity as a trustee of a\\npension or provident fund approved under section 5;\\n(b) derived in the prescribed person’s capacity as a trustee of a\\ndesignated unit trust referred to in section 35(14) in a basis\\nperiod or part of a basis period for a year of assessment,\\nwhere the person has elected under section 35(12) for that\\nprovision to apply to any of the person’s income in that\\nbasis period or that part of the basis period;\\n(c) derived in the prescribed person’s capacity as a trustee of a\\nreal estate investment trust within the meaning of\\nsection 43(10); or\\n(d) exempt from tax under section 13U.\\n[2/2016]\\n(2) Where —\\n(a) income of any prescribed person, being a company, has\\nbeen exempt from tax under subsection (1) in any year of\\nassessment; and\\n(b) a person (called in this section the relevant owner), either\\nalone or together with the relevant owner’s associates,\\nbeneficially owns on the relevant day issued securities of\\nthe prescribed person the value of which is more than the\\nprescribed percentage of the total value of all issued\\nsecurities of the prescribed person on the relevant day,\\nIncome Tax Act 1947\\n2020 Ed.\\n162\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthen the relevant owner is liable to pay to the Comptroller, in such\\nmanner and within such reasonable time as may be determined by the\\nComptroller, a penalty to be computed in accordance with the\\nformula\\nA \\u0003 B \\u0003 C;\\nwhere A is the percentage which the value of the issued\\nsecurities\\nof\\nthe\\nprescribed\\nperson\\nbeneficially\\nowned on the relevant day by the relevant owner\\nbears to the total value of all issued securities of the\\nprescribed person on the relevant day;\\nB is the amount of income of the prescribed person as\\nreflected in the audited account of the prescribed\\nperson for the basis period relating to that year of\\nassessment; and\\nC is the tax rate specified in section 43(1)(a) applicable\\nto that year of assessment.\\n(3) Subsection (2) does not apply to a relevant owner if —\\n(a) the Comptroller permits the relevant owner to take steps to\\nreduce the ownership of the issued securities by the\\nrelevant owner or the relevant owner’s associates within\\nsuch period as the Comptroller may specify, being a period\\nof no more than 3 months from the relevant day; and\\n(b) by the end of the specified period, the value of the issued\\nsecurities beneficially owned by the relevant owner\\ntogether with the relevant owner’s associates is no more\\nthan the prescribed percentage of the total value of all\\nissued securities of the prescribed person on the relevant\\nday.\\n(4) Where —\\n(a) income of any prescribed person, being the trustee of a\\ntrust fund, has been exempt from tax under subsection (1)\\nin any year of assessment; and\\nIncome Tax Act 1947\\n163\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) a person (called in this section the relevant beneficiary),\\neither alone or together with the relevant beneficiary’s\\nassociates, beneficially owns on the relevant day any part\\nof the trust fund the value of which is more than the\\nprescribed percentage of the total value of the trust fund on\\nthe relevant day,\\nthen the relevant beneficiary is liable to pay to the Comptroller, in\\nsuch manner and within such reasonable time as may be determined\\nby the Comptroller, a penalty to be computed in accordance with the\\nformula\\nA \\u0003 B \\u0003 C;\\nwhere A is the percentage which the value of the part of the\\ntrust fund beneficially owned on the relevant day by\\nthe relevant beneficiary bears to the total value of the\\ntrust fund on the relevant day;\\nB is the amount of income of the prescribed person as\\nreflected in the audited account of the prescribed\\nperson for the basis period relating to that year of\\nassessment; and\\nC is the tax rate specified in section 43(1)(c) applicable\\nto that year of assessment.\\n(5) Subsection (4) does not apply to a relevant beneficiary if —\\n(a) the Comptroller permits the relevant beneficiary to take\\nsteps to reduce the ownership of the trust fund by the\\nrelevant beneficiary or the relevant beneficiary’s associates\\nwithin such period as the Comptroller may specify, being a\\nperiod of no more than 3 months from the relevant day; and\\n(b) by the end of the specified period, the value of the part of\\nthe\\ntrust\\nfund\\nbeneficially\\nowned\\nby\\nthe\\nrelevant\\nbeneficiary\\ntogether\\nwith\\nthe\\nrelevant\\nbeneficiary’s\\nassociates is no more than the prescribed percentage of\\nthe total value of the trust fund on the relevant day.\\nIncome Tax Act 1947\\n2020 Ed.\\n164\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(6) Despite subsections (2) and (4), where —\\n(a) income of any prescribed person, being a company or the\\ntrustee of a trust fund, has been exempt from tax under\\nsubsection (1) in any year of assessment;\\n(b) a person, either alone or together with the person’s\\nassociates, beneficially owns on the relevant day —\\n(i) if the prescribed person is a company, any issued\\nsecurities of the prescribed person; or\\n(ii) if the prescribed person is the trustee of a trust fund,\\nany part of the trust fund; and\\n(c) the person mentioned in paragraph (b) is a non‑bona fide\\nentity,\\nthen the person mentioned in paragraph (b) is not liable to pay the\\npenalty mentioned in subsection (2) or (4); but a person (called in this\\nsection the liable person) who —\\n(d) beneficially owns on the relevant day equity interests of the\\nperson mentioned in paragraph (b); and\\n(e) is not himself, herself or itself a non‑bona fide entity,\\nis liable to pay to the Comptroller, in such manner and within such\\nreasonable time as may be determined by the Comptroller, a penalty\\nto be computed in accordance with the formula specified in\\nsubsection (6A) if, and only if, the total of —\\n(f) the value of the equity interests of the prescribed person or\\nof the trust fund for which the prescribed person is the\\ntrustee (as the case may be) that are beneficially owned by\\nthe liable person on the relevant day; and\\n(g) the value of the equity interests of the prescribed person or\\nof the trust fund for which the prescribed person is the\\ntrustee (as the case may be) that are beneficially owned by\\nthe associates of the liable person on the relevant day,\\nexceeds the prescribed percentage of the total value of all the equity\\ninterests of the prescribed person or of the trust fund (as the case may\\nbe) on that day.\\nIncome Tax Act 1947\\n165\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(6A) The formula for the penalty referred to in subsection (6) is as\\nfollows:\\nA \\u0003 B \\u0003 C;\\nwhere A is the percentage which the value of the equity\\ninterests of the prescribed person or of the trust\\nfund for which the prescribed person is the trustee\\n(as the case may be) beneficially owned on the\\nrelevant day by the liable person bears to the total\\nvalue of all equity interests of the prescribed person\\nor of the trust fund on the relevant day;\\nB is the amount of income of the prescribed person as\\nreflected in the audited account of the prescribed\\nperson for the basis period relating to that year of\\nassessment; and\\nC is the tax rate applicable to that year of assessment\\nas specified in section 43(1)(a) (if the prescribed\\nperson is a company) or 43(1)(c) (if the prescribed\\nperson is a trustee of a trust fund).\\n(6B) Subsection (3) or (5) (whichever is applicable) applies, with\\nthe necessary modifications, to the liable person as it applies to a\\nrelevant owner or relevant beneficiary as if the reference to\\nsubsection (2) or (4) (as the case may be) is a reference to\\nsubsection (6).\\n(7) For the purposes of subsections (6)(d), (f) and (g) and (6A), if —\\n(a) a person beneficially owns (including by virtue of one or\\nmore applications of this subsection) equity interests of a\\nperson (called in this subsection a first level entity); and\\n(b) the first level entity beneficially owns equity interests of\\nanother person (called in this subsection a second level\\nentity),\\nthen the firstmentioned person is taken to beneficially own equity\\ninterests of the second level entity; and the percentage which the\\nvalue of those equity interests bears to the total value of all equity\\nIncome Tax Act 1947\\n2020 Ed.\\n166\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\ninterests of the second level entity is computed in accordance with the\\nformula\\nA \\u0003 B;\\nwhere A is the percentage which the value of equity interests of\\nthe first level entity beneficially owned by the\\nfirstmentioned person bears to the total value of all\\nequity interests of the first level entity; and\\nB is the percentage which the value of equity interests of\\nthe second level entity beneficially owned by the first\\nlevel entity bears to the total value of all equity\\ninterests of the second level entity.\\n(7A) Subsection (7) also has effect for the purpose of determining,\\nunder subsections (6)(f) and (g) and (6A), the beneficial ownership of\\na person in the equity interests of a trust fund for which a prescribed\\nperson is a trustee, with the following modifications:\\n(a) the reference in subsection (7)(b) to the equity interests of\\nanother person (when applied to that trust fund) is to be\\nread as the equity interests in that fund;\\n(b) the reference in the definition of B under subsection (7) to\\nthe value of equity interests of the second level entity\\nbeneficially owned by the first level entity (when applied\\nto that trust fund) is to be read as the value of the part of the\\ntrust fund beneficially owned by the first level entity;\\n(c) the reference in the definition of B under subsection (7) to\\nthe total value of all equity interests of the second level\\nentity (when applied to that trust fund) is to be read as the\\ntotal value of the trust fund.\\n(7B) The Minister or an authorised body may at any time, in the\\ndiscretion of the Minister or authorised body and subject to such\\nconditions as the Minister or authorised body may impose, remit or\\nrefund, wholly or in part, the penalty that is payable or paid by a\\nperson under subsection (2), (4) or (6); and section 92(2B) to (2E)\\napplies, with the necessary modifications, to any non‑compliance\\nIncome Tax Act 1947\\n167\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nwith any such condition as it applies to the non‑compliance with a\\ncondition imposed under section 92(2).\\n[37/2014]\\n[Act 41 of 2020 wef 06/12/2022]\\n(8) Regulations made under this section may —\\n(a) provide for the determination of the amount of income of\\nany prescribed person to be exempt from tax;\\n(b) provide for the circumstances under which a person would\\nbe considered to be an associate for the purposes of this\\nsection;\\n(c) exempt any person or class of persons from subsection (2),\\n(4) or (6); and\\n(d) make provision generally for giving full effect to or for\\ncarrying out the purposes of this section.\\n(9) In this section —\\n“equity interest” means —\\n(a) in relation to a company, any issued security of that\\ncompany;\\n(aa) in relation to a trust fund for which a prescribed\\nperson is a trustee, any part of the trust fund; or\\n(b) in relation to a person other than a company, such\\nright or interest as may be prescribed;\\n“issued securities”, in relation to a company, means —\\n(a) issued debentures of, or issued stocks or shares in, the\\ncompany;\\n(b) any right, option or derivative in respect of any such\\ndebentures, stocks or shares;\\n(ba) any other instrument that confers or represents a legal\\nor beneficial ownership interest in the company; or\\n(c) such other securities of the company as may be\\nprescribed;\\nIncome Tax Act 1947\\n2020 Ed.\\n168\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“non‑bona fide entity” means a person not resident in Singapore\\n(excluding a permanent establishment in Singapore) who —\\n(a) is set up solely for the purpose of avoiding or\\nreducing payment of tax or penalty under this Act; or\\n(b) does not carry out any substantial business activity\\nfor a genuine commercial reason;\\n“relevant day” means —\\n(a) the last day of the basis period of the prescribed\\nperson for the year of assessment referred to in\\nsubsection (2), (4) or (6), as the case may be;\\n(b) if on a day within that basis period the prescribed\\nperson\\nbecomes\\nan\\napproved\\nperson\\nunder\\nsection 13U(1)(a) the day immediately before the\\nfirstmentioned day; or\\n(c) if on a day within that basis period the prescribed\\nperson\\nbecomes\\nan\\napproved\\nmaster\\nfund\\nor\\napproved feeder fund of —\\n(i) an approved master‑feeder fund structure under\\nsection 13U(1)(b);\\n(ii) an approved master‑feeder fund‑SPV structure\\nunder section 13U(1)(c); or\\n(iii) an approved master fund‑SPV structure under\\nsection 13U(1)(d),\\n(c) the day immediately before the firstmentioned day;\\n“value” —\\n(a) in relation to issued securities of a company other\\nthan those prescribed under paragraph (c) of the\\ndefinition of “issued securities”, means —\\n(i) where the relevant day is before 1 April 2014,\\nthe value of those securities at the time of their\\nissue by the company; and\\nIncome Tax Act 1947\\n169\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(ii) where the relevant day falls on or after 1 April\\n2014, the net asset value of those securities as\\nat the relevant day; or\\n(b) in relation to issued securities of a company\\nprescribed under paragraph (c) of the definition of\\n“issued securities”, means —\\n(i) where the relevant day is before 1 April 2014,\\nthe value of those securities at the prescribed\\ntime; and\\n(ii) where the relevant day falls on or after 1 April\\n2014, the net asset value of those securities as\\nat the relevant day.\\n[37/2014; 2/2016; 45/2018]\\n(10) This section does not apply to —\\n(a) a company or trustee of a trust fund (as the case may be)\\nthat is incorporated or constituted on or after 1 January\\n2025; or\\n(b) a company or trustee of a trust fund (as the case may be)\\nthat —\\n(i) is incorporated or constituted before 1 January 2025;\\nand\\n(ii) is not a prescribed person at any time before that\\ndate.\\n[13CA\\n[37/2014; 32/2019]\\nExemption of international shipping profits\\n13E.—(1) Subject to subsections (1A) and (2), there is exempt\\nfrom tax the income of an approved international shipping enterprise\\nderived —\\n(a) on or after 1 April 1991 from —\\n(i) the carriage of passengers, mail, livestock or goods\\nfrom outside the limits of the port of Singapore by\\nany foreign ship;\\nIncome Tax Act 1947\\n2020 Ed.\\n170\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(ii) the charter of any foreign ship to any person where\\nsuch ship is used by the person for the carriage of\\npassengers, mail, livestock or goods outside the\\nlimits of the port of Singapore; and\\n(iii) the carriage of passengers, mail, livestock or goods\\nby any foreign ship to Singapore solely for the\\npurpose of transhipment;\\n(b) for the year of assessment 2005 and subsequent years of\\nassessment from —\\n(i) the operation outside the limits of the port of\\nSingapore of any dredger, seismic ship or any ship\\nused for offshore oil or gas activity; and\\n(ii) the charter of any foreign dredger, foreign seismic\\nship, or any foreign ship used for offshore oil or gas\\nactivity to any person where such dredger, seismic\\nship or ship is used by the person for the person’s\\noperation outside the limits of the port of Singapore;\\n(c) for the year of assessment 2003 and subsequent years of\\nassessment from —\\n(i) towing or salvage operations carried out from\\noutside the limits of the port of Singapore by any\\nforeign ship; and\\n(ii) the charter of any foreign ship to any person where\\nsuch ship is used by the person for towage and\\nsalvage operations carried out outside the limits of\\nthe port of Singapore;\\n(d) for the year of assessment 2009 and subsequent years of\\nassessment, from foreign exchange and risk management\\nactivities which are carried out in connection with and\\nincidental to the operations described in paragraphs (a), (b)\\nand (c);\\n(e) at any time in the period between 22 February 2010 and\\n23 February 2015 (both dates inclusive) from the provision\\nof ship management services to any qualifying special\\nIncome Tax Act 1947\\n171\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\npurpose vehicle in respect of ships owned or operated by\\nthe\\nqualifying\\nspecial\\npurpose\\nvehicle,\\nunless\\nthe\\nconditions of its approval otherwise provide;\\n(f) for the year of assessment 2012 and subsequent years of\\nassessment, from the carriage by any foreign ship of\\npassengers, mail, livestock or goods which are shipped in\\nSingapore, except where such carriage is only within the\\nlimits of the port of Singapore;\\n(g) on or after 1 June 2011 from —\\n(i) the sale of a foreign ship used for a prescribed\\npurpose;\\n(ii) the assignment to another of all its rights as the buyer\\nunder a contract for the construction of a ship for a\\nprescribed purpose that, at the time of assignment, is\\nintended to be a foreign ship to be used for that or any\\nother prescribed purpose; or\\n(iii) the sale of all of the issued ordinary shares in a\\nspecial\\npurpose\\ncompany\\nof\\nthe\\napproved\\ninternational shipping enterprise where, at the time\\nof the sale of the shares, the special purpose\\ncompany —\\n(A) owns any foreign ship that is used for a\\nprescribed purpose;\\n(B) is\\nthe\\nbuyer\\nunder\\na\\ncontract\\nfor\\nthe\\nconstruction of a foreign ship for a prescribed\\npurpose that is intended to be used for that or\\nany other prescribed purpose;\\n(C) owns a Singapore ship or a provisionally\\nregistered\\nship\\nwithin\\nthe\\nmeaning\\nof\\nsection 13A(16); or\\n[Act 33 of 2022 wef 04/11/2022]\\n(D) is\\nthe\\nbuyer\\nunder\\na\\ncontract\\nfor\\nthe\\nconstruction of a ship that, at the time of the\\nsale, is intended to\\nbe registered\\nor is\\nIncome Tax Act 1947\\n2020 Ed.\\n172\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nprovisionally registered under the Merchant\\nShipping Act 1995;\\n(h) at any time during the period from 24 February 2015 to\\n18 February 2020 (both dates inclusive) from providing\\nprescribed ship management services to any qualifying\\nspecial purpose vehicle in respect of ships owned or\\noperated by the qualifying special purpose vehicle, unless\\nthe conditions of its approval otherwise provide;\\n(i) on or after 24 February 2015 from —\\n(i) any mobilisation or holding of any ship used or to be\\nused for offshore oil or gas activity outside the limits\\nof the port of Singapore; or\\n(ii) the demobilisation of any ship after it has been so\\nused,\\n(i) where the mobilisation, holding or demobilisation is\\nundertaken\\nby\\nthe\\napproved\\ninternational\\nshipping\\nenterprise itself using a foreign ship;\\n(j) on or after 24 February 2015 from —\\n(i) any mobilisation or holding of a foreign ship owned\\nor operated by the approved international shipping\\nenterprise and used or to be used for offshore oil or\\ngas activity outside the limits of the port of\\nSingapore; or\\n(ii) the demobilisation of a foreign ship owned or\\noperated by the approved international shipping\\nenterprise after it has been so used;\\n(k) on or after 24 February 2015 from the leasing of any\\ncontainer (other than finance leasing) carried out in\\nconnection with its operation of foreign ships and that is\\nincidental to such operation;\\n(l) on or after 25 March 2016 from —\\n(i) the operation outside the limits of the port of\\nSingapore\\nof\\nany\\nforeign\\nship\\nfor\\noffshore\\nIncome Tax Act 1947\\n173\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nrenewable energy activity or offshore mineral\\nactivity; and\\n(ii) the charter of any foreign ship for offshore renewable\\nenergy activity or offshore mineral activity to any\\nperson, where such ship is used by the person for the\\nperson’s operation outside the limits of the port of\\nSingapore;\\n(m) on or after 25 March 2016 from —\\n(i) the sale of a foreign ship used for offshore renewable\\nenergy activity or offshore mineral activity;\\n(ii) the assignment to another of all its rights as the buyer\\nunder a contract for the construction of a ship for\\noffshore renewable energy activity or offshore\\nmineral activity that, at the time of assignment, is\\nintended to be a foreign ship to be used for that\\nactivity or any prescribed purpose; or\\n(iii) the sale of all of the issued ordinary shares in a\\nspecial\\npurpose\\ncompany\\nof\\nthe\\napproved\\ninternational shipping enterprise where, at the time\\nof the sale of the shares, the special purpose\\ncompany —\\n(A) owns any foreign ship that is used for offshore\\nrenewable energy activity or offshore mineral\\nactivity; or\\n(B) is\\nthe\\nbuyer\\nunder\\na\\ncontract\\nfor\\nthe\\nconstruction of a foreign ship for that activity\\nand that is intended to be used for that activity\\nor any prescribed purpose;\\n(n) on or after 25 March 2016 from —\\n(i) any mobilisation or holding of any ship used or to be\\nused for offshore renewable energy activity, or\\noffshore mineral activity, outside the limits of the\\nport of Singapore; or\\nIncome Tax Act 1947\\n2020 Ed.\\n174\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(ii) the demobilisation of any ship after it has been so\\nused,\\n(n) where the mobilisation, holding or demobilisation is\\nundertaken\\nby\\nthe\\napproved\\ninternational\\nshipping\\nenterprise itself using a foreign ship;\\n(o) on or after 25 March 2016 from —\\n(i) any mobilisation or holding of a foreign ship owned\\nor operated by the approved international shipping\\nenterprise and used or to be used for offshore\\nrenewable energy activity, or offshore mineral\\nactivity, outside the limits of the port of Singapore; or\\n(ii) the demobilisation of a foreign ship owned or\\noperated by the approved international shipping\\nenterprise after it has been so used;\\n(p) on or after 25 March 2016 from foreign exchange and risk\\nmanagement activities which are carried out in connection\\nwith\\nand\\nincidental\\nto\\nan\\nactivity\\ndescribed\\nin\\nparagraph (l), (n) or (o);\\n(q) on or after 29 December 2016 from foreign exchange and\\nrisk management activities that are carried out in\\nconnection with and incidental to an activity mentioned\\nin subsection (1)(f), (h), (i) or (j);\\n(r) on or after 12 December 2018 from —\\n(i) the finance leasing of any foreign ship to any person\\nwhere the ship is used by the person for the carriage\\nof passengers, mail, livestock or goods outside the\\nlimits of the port of Singapore;\\n(ii) the finance leasing of any foreign dredger, foreign\\nseismic ship, or any foreign ship used for offshore oil\\nor gas activity to any person where the dredger,\\nseismic ship or ship is used by the person for the\\nperson’s operation outside the limits of the port of\\nSingapore;\\nIncome Tax Act 1947\\n175\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(iii) the finance leasing of any foreign ship to any person\\nwhere the ship is used by the person for towage and\\nsalvage operations carried out outside the limits of\\nthe port of Singapore; and\\n(iv) the finance leasing of any foreign ship for offshore\\nrenewable energy activity or offshore mineral\\nactivity to any person, where the ship is used by\\nthe person for the person’s operation outside the\\nlimits of the port of Singapore;\\n(s) on or after 12 December 2018 from foreign exchange and\\nrisk management activities which are carried out in\\nconnection with and incidental to an activity mentioned\\nin paragraph (r); and\\n(t) on or after 19 February 2020 from providing prescribed\\nship management services to —\\n(i) any qualifying special purpose vehicle of the\\napproved\\ninternational\\nshipping\\nenterprise\\nor\\nanother approved international shipping enterprise;\\nor\\n(ii) any\\nqualifying\\nshareholder\\nof\\nthe\\napproved\\ninternational shipping enterprise,\\n(t) in respect of ships owned or operated by the qualifying\\nspecial purpose vehicle or qualifying shareholder (as the\\ncase may be), unless the conditions of its approval\\notherwise provide.\\n[2/2016; 34/2016; 32/2019; 41/2020]\\n(1A) Unless the Minister or such person as the Minister may\\nappoint permits in a particular case, subsection (1)(e) does not apply\\nto the provision by an approved international shipping enterprise of\\nship management services to a qualifying special purpose vehicle if at\\nleast 50% of the total number of the issued ordinary shares of the\\nenterprise are beneficially owned, whether directly or indirectly, by\\nanother approved international shipping enterprise.\\nIncome Tax Act 1947\\n2020 Ed.\\n176\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(1AA) Subsection (1)(g) does not apply to —\\n(a) any\\nincome\\nof\\nan\\napproved\\ninternational\\nshipping\\nenterprise derived before 12 December 2018 as a lessor\\nof a foreign ship used for a prescribed purpose, under a\\nfinance lease that is treated as a sale under section 10C; or\\n(b) any\\nincome\\nof\\nan\\napproved\\ninternational\\nshipping\\nenterprise that is derived as part of a business of trading\\nin foreign ships used for a prescribed purpose, or of\\nconstructing for sale foreign ships for a prescribed purpose.\\n[2/2016; 41/2020]\\n(1AB) Unless the Minister or such person as the Minister may\\nappoint permits in a particular case, subsection (1)(h) does not apply\\nto the provision by an approved international shipping enterprise of\\nprescribed ship management services to a qualifying special purpose\\nvehicle, if at least 50% of the total number of the issued ordinary\\nshares of the enterprise are beneficially owned, whether directly or\\nindirectly, by another approved international shipping enterprise.\\n[2/2016]\\n(1AC) Subsection (1)(m) does not apply to —\\n(a) any\\nincome\\nof\\nan\\napproved\\ninternational\\nshipping\\nenterprise derived before 12 December 2018 as a lessor\\nof a foreign ship used for offshore renewable energy\\nactivity or offshore mineral activity, under a finance lease\\nthat is treated as a sale under section 10C; or\\n(b) any\\nincome\\nof\\nan\\napproved\\ninternational\\nshipping\\nenterprise that is derived as part of a business of trading\\nin foreign ships used for either of those activities, or of\\nconstructing for sale foreign ships for either of those\\nactivities.\\n[34/2016; 41/2020]\\n(1AD) Subsection (1)(r) does not apply to any income derived by\\nan approved international shipping enterprise as part of a business of\\ntrading in foreign ships or constructing for sale foreign ships for any\\noperation or activity mentioned in that provision.\\n[41/2020]\\nIncome Tax Act 1947\\n177\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(1B) An application may be made to the Minister or authorised\\nbody for a company —\\n(a) which is an international shipping enterprise; or\\n(b) which is not but intends to become an international\\nshipping enterprise,\\nto be approved as an approved international shipping enterprise, and\\nthe company is deemed upon approval to be an approved\\ninternational shipping enterprise.\\n[Act 41 of 2020 wef 12/04/2024]\\n(2) The exemption for each approved international shipping\\nenterprise —\\n(a) is for such period not exceeding 10 years after the date of\\nits approval as the Minister or authorised body may\\nspecify, except that the Minister or authorised body may\\nextend the period so specified for any further periods, not\\nexceeding 10 years at a time, as the Minister or authorised\\nbody thinks fit; or\\n[Act 41 of 2020 wef 12/04/2024]\\n(b) if, at the time of its approval, the company does not, in the\\nopinion of the Minister or authorised body, satisfy such\\nqualifying conditions as the Minister or authorised body\\nmay determine for the purposes of paragraph (a), is for\\nsuch period not exceeding 5 years from the date of its\\napproval as the Minister or authorised body may specify.\\n[Act 41 of 2020 wef 12/04/2024]\\n(2A) The approval of an approved international shipping enterprise\\nfor a period of exemption referred to in subsection (2)(b) may only be\\ngranted at any time between 1 June 2011 and 31 December 2026\\n(both dates inclusive).\\n[2/2016; 41/2020]\\n(3) In determining the amount of the income of an approved\\ninternational shipping enterprise which is exempted under this\\nsection, the allowances provided for in sections 16, 17, 18, 18B,\\n18C, 19, 19A, 20, 21, 22 and 23 —\\n(a) must be taken into account even if no claim for those\\nallowances has been made; and\\nIncome Tax Act 1947\\n2020 Ed.\\n178\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) may only be deducted against the income referred to in\\nsubsection (1), and the balance of those allowances is not\\navailable as a deduction against any other income, except\\nthat any balance remaining unabsorbed at the end of the tax\\nexempt period is available as a deduction against any other\\nincome for the year of assessment which relates to the basis\\nperiod in which the tax exemption ceases and for any\\nsubsequent\\nyear\\nof\\nassessment\\nin\\naccordance\\nwith\\nsection 23.\\n(4) Where an approved international shipping enterprise incurs a\\nloss during the tax exempt period in respect of any operation, activity\\nor service referred to in paragraphs (a) to (f), (h) to (l) and (n) to (s) of\\nsubsection (1), that loss —\\n(a) must be deducted in accordance with section 37; and\\n(b) may only be deducted against the income referred to in any\\nof those paragraphs, and the balance of such loss is not\\navailable as a deduction against any other income, except\\nthat any balance remaining unabsorbed at the end of the tax\\nexempt period is available as a deduction against any other\\nincome for the year of assessment which relates to the basis\\nperiod in which the tax exemption ceases and for any\\nsubsequent\\nyear\\nof\\nassessment\\nin\\naccordance\\nwith\\nsection 37.\\n[2/2016; 34/2016; 32/2019]\\n(4A) Where an approved international shipping enterprise incurs a\\nloss on any sale or assignment referred to in subsection (1)(g) or (m)\\nin any basis period falling, in whole or in part, within the tax exempt\\nperiod, that loss may only be deducted against the gains derived from\\nanother sale or assignment referred to in either subsection (1)(g) or\\n(m) in that same basis period, and the balance of the loss is not\\navailable as a deduction against any other income.\\n[34/2016]\\n(5) Section 13A(2), (2A), (4), (5), (7), (8) and (9) applies to an\\napproved international shipping enterprise, except that any reference\\nto a shipping enterprise is a reference to an approved international\\nshipping enterprise.\\nIncome Tax Act 1947\\n179\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(6) In this section —\\n“approved” means approved by the Minister or an authorised\\nbody, subject to such conditions as the Minister or authorised\\nbody may impose;\\n[Act 41 of 2020 wef 12/04/2024]\\n“container” has the meaning given by section 43P(7);\\n“demobilisation”, “finance leasing”, “holding”, “mobilisation”\\nand “prescribed ship management services” have the\\nmeanings given by section 13A(16);\\n“foreign ship” means a seagoing ship other than a Singapore\\nship, or (on or after the date on which the Income Tax\\n(Amendment) Act 2022 is published in the Gazette) a\\nprovisionally\\nregistered\\nship,\\nwithin\\nthe\\nmeaning\\nof\\nsection 13A(16);\\n[Act 33 of 2022 wef 04/11/2022]\\n“international shipping enterprise” means a company resident in\\nSingapore —\\n(a) owning or operating ships; or\\n(b) which has a qualifying special purpose vehicle which\\nowns or operates ships;\\n“prescribed purpose”, in relation to a ship, means use for —\\n(a) the carriage of passengers, mail, livestock or goods;\\n(b) dredging, seismic, or offshore oil or gas activity;\\n(c) a towing or salvage operation; or\\n(d) the mobilisation, holding or demobilisation of\\nanother ship;\\n“ship” has the meaning given by section 2(1) of the Merchant\\nShipping Act 1995;\\n“ship management services” has the meaning given by\\nsection 13A(16);\\n“special purpose company”, in relation to an approved\\ninternational shipping enterprise, means a company that is\\nIncome Tax Act 1947\\n2020 Ed.\\n180\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nwholly‑owned by the shipping enterprise and whose only\\nbusiness or intended business is —\\n(a) any operation mentioned in subsection (1)(a), (b),\\n(c), (f), (i) and (j);\\n(b) any operation of a Singapore ship, or (on or after the\\ndate on which the Income Tax (Amendment) Act\\n2022 is published in the Gazette) a provisionally\\nregistered ship, as defined in section 13A(16);\\n[Act 33 of 2022 wef 04/11/2022]\\n(c) any\\noperation\\nor\\nactivity\\nmentioned\\nin\\nsubsection (1)(l), (n) or (o) that takes place on or\\nafter 25 March 2016; or\\n(d) any\\noperation\\nor\\nactivity\\nmentioned\\nin\\nsubsection (1)(r) that takes place on or after\\n12 December 2018.\\n[2/2016; 34/2016; 41/2020]\\n(7) In this section, “qualifying special purpose vehicle”, in relation\\nto a company referred to in paragraph (b) of the definition of\\n“international shipping enterprise” in subsection (6) or an approved\\ninternational shipping enterprise (called in this subsection the entity),\\nmeans —\\n(a) an approved company —\\n(i) which is incorporated and resident in Singapore; and\\n(ii) at least 50% of the total number of the issued\\nordinary shares of which are beneficially owned,\\nwhether directly or indirectly, by —\\n(A) the entity; or\\n(B) a company which beneficially owns (whether\\ndirectly or indirectly) at least 50% of the total\\nnumber of the issued ordinary shares of the\\nentity;\\n(b) an approved company —\\n(i) which is incorporated outside Singapore; and\\nIncome Tax Act 1947\\n181\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(ii) at least 25% of the total number of the issued\\nordinary shares of which are beneficially owned,\\nwhether directly or indirectly, by the entity;\\n(c) an approved partnership —\\n(i) which is registered or formed outside Singapore; and\\n(ii) of which the entity is entitled, whether directly or\\nindirectly, to at least 25% of its income;\\n(d) an approved company —\\n(i) which is incorporated and resident in Singapore, and\\nat least 50% of the total number of the issued\\nordinary shares of which are beneficially owned\\ndirectly by another company which is a qualifying\\nspecial\\npurpose\\nvehicle\\nby\\nvirtue\\nof\\nparagraph (a)(ii)(B); or\\n(ii) which is incorporated outside Singapore, and at least\\n25% of the total number of the issued ordinary shares\\nof which are beneficially owned directly by another\\ncompany which is a qualifying special purpose\\nvehicle by virtue of paragraph (a)(ii)(B);\\n(e) an approved partnership which is registered or formed\\noutside Singapore and one of the partners of which is a\\ncompany which is a qualifying special purpose vehicle by\\nvirtue of paragraph (a)(ii)(B), and is entitled to at least 25%\\nof its income; or\\n(f) any other partnership or company that is approved under\\nsubsection (8) as a qualifying special purpose vehicle of\\nthe entity, so long as it satisfies the conditions imposed\\nunder that subsection.\\n[2/2016]\\n(7A) In subsection (1)(t), “qualifying shareholder”, in relation to an\\napproved international shipping enterprise, means an approved\\ncompany —\\n(a) that is incorporated and resident in Singapore; and\\nIncome Tax Act 1947\\n2020 Ed.\\n182\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) that beneficially owns (whether directly or indirectly) at\\nleast 50% of the total number of issued ordinary shares of\\nthe approved international shipping enterprise.\\n[41/2020]\\n(8) The Minister or an authorised body may, in a particular case,\\nand subject to such conditions as the Minister or authorised body\\nconsiders fit to impose, approve any partnership or company not\\nspecified in paragraphs (a) to (e) of subsection (7), as a qualifying\\nspecial purpose vehicle of the entity mentioned in that subsection.\\n[13F\\n[2/2016]\\n[Act 41 of 2020 wef 12/04/2024]\\nExemption of income of foreign trust\\n13F.—(1) There is exempt from tax such income as the Minister\\nmay by regulations prescribe of such foreign trust or eligible holding\\ncompany established for the purposes of such foreign trust as\\nspecified in those regulations, or as approved by the Minister or\\nauthorised body, and administered by a trustee company in\\nSingapore.\\n[Act 33 of 2022 wef 04/11/2022]\\n(2) Where any income of a foreign trust is exempt from tax under\\nregulations made under subsection (1) in any year of assessment, the\\nshare of such income to which any beneficiary under the trust is\\nentitled to receive for that year of assessment is also exempt from tax\\nif the beneficiary —\\n(a) being an individual, is neither a citizen of Singapore nor\\nresident in Singapore;\\n(b) being a company, is neither incorporated nor resident in\\nSingapore and where such a company —\\n(i) has not more than 50 shareholders, all of its issued\\nshares are beneficially owned, directly or indirectly,\\nby persons who are neither citizens of Singapore nor\\nresident in Singapore; or\\n(ii) has more than 50 shareholders, not less than 95% of\\nthe total number of its issued shares are beneficially\\nIncome Tax Act 1947\\n183\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nowned, directly or indirectly, by persons who are\\nneither\\ncitizens\\nof\\nSingapore\\nnor\\nresident\\nin\\nSingapore;\\n(c) being any other person, is neither resident in Singapore nor\\nconstituted or registered under any written law in\\nSingapore; or\\n(d) is a trustee of another foreign trust specified under\\nsubsection (1).\\n(3) Where any income of a foreign trust is exempt from tax under\\nregulations made under subsection (1) in any year of assessment, the\\nshare of such income that a foreign account of a philanthropic\\npurpose trust is entitled to receive for that year of assessment is also\\nexempt from tax.\\n(4) Despite subsections (1) and (2), where it appears to the\\nComptroller that any income of a foreign trust or eligible holding\\ncompany ought not to have been exempted under regulations made\\nunder subsection (1), the Comptroller may, subject to section 74,\\nmake such assessment or additional assessment upon the foreign trust\\nor eligible holding company (as the case may be) as may appear to be\\nnecessary.\\n(5) In this section —\\n“foreign account” and “philanthropic purpose trust” have the\\nmeanings given by section 13L;\\n“trustee company” has the meaning given by section 43G(2).\\n(6) This section does not apply to —\\n(a) a trust that is constituted on or after 1 January 2025;\\n(b) a company that is incorporated on or after 1 January 2025;\\n(c) a trust that —\\n(i) is constituted before 1 January 2025; and\\n(ii) in the basis period in which 31 December 2024 falls,\\nis not a foreign trust specified in the regulations\\nunder subsection (1) (called in this subsection and\\nsubsection (8) a specified trust) that is administered\\nIncome Tax Act 1947\\n2020 Ed.\\n184\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nby a trustee company in Singapore within the\\nmeaning of those regulations; or\\n(d) a company that —\\n(i) is incorporated before 1 January 2025; and\\n(ii) in the basis period in which 31 December 2024\\nfalls —\\n(A) is not an eligible holding company established\\nfor the purposes of a specified trust, and\\nspecified\\nin\\nthe\\nregulations\\nunder\\nsubsection (1); or\\n(B) is not administered by a trustee company in\\nSingapore\\nwithin\\nthe\\nmeaning\\nof\\nthose\\nregulations.\\n[37/2014; 32/2019]\\n(7) Where, in any basis period beginning on or after 1 January\\n2025 —\\n(a) a trust or company does not satisfy the requirements\\nreferred to in subsection (8); or\\n(b) the trustee company which administers a foreign trust or an\\neligible holding company established for the purposes of a\\nforeign trust fails to comply with any of the regulations\\nunder subsection (1),\\nthen this section does not apply to the trust or company in\\nparagraph (a), or the foreign trust or eligible holding company in\\nparagraph (b), for the year of assessment to which that basis period\\nrelates, and for every subsequent year of assessment even if the\\nrequirements are satisfied and the regulations are complied with in\\nthe basis period for that subsequent year of assessment.\\n[37/2014; 32/2019]\\n(8) In subsection (7), the requirements are —\\n(a) in the case of the trust, that it is a specified trust and is\\nadministered by a trustee company in Singapore within the\\nmeaning of those regulations; or\\nIncome Tax Act 1947\\n185\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) in the case of the company —\\n(i) that it is an eligible holding company established for\\nthe purposes of a specified trust, and specified in\\nthose regulations; and\\n(ii) that it is administered by a trustee company in\\nSingapore within the meaning of those regulations.\\n[13G\\n[37/2014]\\nExemption of income of venture company\\n13G.—(1) The Minister may make regulations to provide that such\\nincome as the Minister may specify of an approved venture company\\nderived by it from making authorised investments is exempt from tax.\\n[34/2016; 41/2020]\\n(2) Regulations made under subsection (1) may provide for the\\ndetermination of the amount of the income of an approved venture\\ncompany to be exempted and for the deduction of losses otherwise\\nthan in accordance with section 37.\\n[34/2016]\\n(2A) For a venture company that is approved before 1 April 2020,\\nthe exemption from tax of the income of the company under\\nregulations made under subsection (1) —\\n(a) is for such period, not exceeding 10 years, as the Minister,\\nor such person as the Minister may appoint, may specify;\\nand\\n(b) in any particular case after the period referred to in\\nparagraph (a), is for such further period or periods, not\\nexceeding 5 years at any one time for each period, as the\\nMinister or an authorised body may specify.\\n[34/2016; 41/2020]\\n[Act 41 of 2020 wef 12/04/2024]\\n(2B) The total period under subsection (2A)(a) and the further\\nperiod or periods under subsection (2A)(b) must not in the aggregate\\nexceed 15 years.\\nIncome Tax Act 1947\\n2020 Ed.\\n186\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(2BA) For a venture company that is approved on or after 1 April\\n2020, the exemption from tax of the income of the company under\\nregulations made under subsection (1) is for —\\n(a) a period not exceeding 15 years as specified to the venture\\ncompany by the Minister or an authorised body; and\\n[Act 41 of 2020 wef 12/04/2024]\\n(b) where the period mentioned in paragraph (a) is less than\\n15 years — any additional period or periods specified to\\nthe venture company by the Minister or an authorised\\nbody.\\n[41/2020]\\n[Act 41 of 2020 wef 12/04/2024]\\n(2BB) The total period of exemption from tax of income of an\\napproved venture company mentioned in subsection (2BA) must not\\nexceed 15 years.\\n[41/2020]\\n(2C) The Minister or authorised body may, subject to such\\nconditions as the Minister or authorised body may impose, approve\\na venture company as an approved venture company for the purposes\\nof this section.\\n[32/2019]\\n[Act 41 of 2020 wef 12/04/2024]\\n(2D) No approval may be granted to a venture company on or after\\n1 January 2026.\\n[32/2019; 41/2020]\\n(3) The Comptroller must determine the manner and extent to\\nwhich allowances under section 19, 19A, 20, 21 or 22 and any\\nexpenses, losses and donations allowable under this Act which are\\nattributable to the income referred to in subsection (1) are to be\\ndeducted.\\n(4) In determining the income of an approved venture company\\nwhich\\nis\\nexempt\\nfrom\\ntax\\nunder\\nregulations\\nmade\\nunder\\nsubsection (1) for any year of assessment, there are to be deducted\\ntherefrom —\\n(a) expenses allowable under this Act for that year of\\nassessment which are attributable to that income;\\nIncome Tax Act 1947\\n187\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(aa) [Deleted by Act 34 of 2016]\\n(b) any loss for that year of assessment arising from the\\ndisposal of any authorised investments in Singapore or\\nelsewhere;\\n(c) any allowances for that year of assessment under\\nsection 19, 19A, 20, 21 or 22 attributable to that income\\neven if no claim for those allowances has been made; and\\n(d) any balance of the expenses, losses and allowances\\nreferred to in paragraphs (a), (b) and (c) which have not\\nbeen deducted in determining that income for any previous\\nyear of assessment.\\n[34/2016; 41/2020]\\n(5) Any expenses, losses or allowances referred to in subsection (4)\\nmay only be deducted against the income of an approved venture\\ncompany\\nexempt\\nfrom\\ntax\\nunder\\nregulations\\nmade\\nunder\\nsubsection (1) and are not available as a deduction against any\\nother income of the company, except that any balance of the\\nexpenses, losses or allowances remaining unabsorbed at the end of\\nthe tax exempt period of the company is available as a deduction\\nagainst any other income of the company for the year of assessment\\nwhich relates to the basis period in which the tax exemption ceases\\nand for any subsequent year of assessment in accordance with\\nsection 23 or 37, as the case may be.\\n(5A) [Deleted by Act 34 of 2016]\\n(6) The Comptroller must, for each year of assessment for which\\nthe income of an approved venture company is exempt from tax under\\nregulations made under subsection (1), issue to the approved venture\\ncompany a statement (to be included in a notice of any assessment\\nserved on the approved venture company under section 76) showing\\nthe amount of income exempt from tax under regulations made under\\nsubsection (1) and Parts 17 and 18 (relating to assessments,\\nobjections and appeals) and any rules made under this Act apply,\\nwith the necessary modifications, as if such statement were a notice\\nof assessment.\\n(7) Where any statement issued to an approved venture company\\nunder subsection (6) has become final and conclusive, the amount of\\nIncome Tax Act 1947\\n2020 Ed.\\n188\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nincome shown in the statement does not form part of the statutory\\nincome of the company for the year of assessment to which the\\nstatement relates and is exempt from tax.\\n(8) [Deleted by Act 19 of 2013]\\n(9) [Deleted by Act 19 of 2013]\\n(10) [Deleted by Act 19 of 2013]\\n(11) [Deleted by Act 19 of 2013]\\n(11A) [Deleted by Act 19 of 2013]\\n(12) [Deleted by Act 19 of 2013]\\n(13) [Deleted by Act 19 of 2013]\\n(14) [Deleted by Act 19 of 2013]\\n(15) An approved venture company must deliver to the Comptroller\\na copy of the account made up to any date specified by the\\nComptroller whenever called upon to do so by written notice.\\n(16) Despite anything in this section, where it appears to the\\nComptroller that any income of an approved venture company which\\nhas been exempted from tax under regulations made under\\nsubsection (1) ought not to have been so exempted for any year of\\nassessment, the Comptroller may, at any time within 4 years after the\\nexpiry of that year of assessment, make such assessment or additional\\nassessment upon the company as may appear to be necessary in order\\nto make good any loss of tax.\\n[34/2016]\\n(17) Parts 17 and 18 (relating to assessments, objections and\\nappeals) and any rules made under this Act apply, with the necessary\\nmodifications, as if an assessment under subsection (16) were a\\nnotice of assessment.\\n(18) In this section —\\n“authorised investments” —\\n(a) in relation to income derived by an approved venture\\ncompany before 1 April 2020, means —\\nIncome Tax Act 1947\\n189\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(i) debentures, stocks, shares, bonds, notes or\\nwarrants issued by a government or company;\\n(ii) any right or option in respect of any debentures,\\nstocks, shares, bonds, notes or warrants; or\\n(iii) units in any unit trust within the meaning of\\nsection 10A; or\\n(b) in relation to income derived by an approved venture\\ncompany on or after 1 April 2020, means investments\\nprescribed by the Minister for the purpose of\\nsubsection (1);\\n“tax exempt period” means the period during which any income\\nof an approved venture company is exempt from tax under\\nregulations made under subsection (1);\\n“venture company” means any company whose business\\nconsists wholly or mainly in the making of authorised\\ninvestments and the principal part of whose income is derived\\ntherefrom.\\n[13H\\n[32/2019; 41/2020]\\nExemption of tax on gains or profits from equity remuneration\\nincentive scheme (SMEs)\\n13H.—(1) Where a qualifying employee derives any gains or\\nprofits in any year of assessment, after the expiry of the minimum\\nholding period, from any stock option granted during the period from\\n1 June 2000 to 31 December 2013 (both dates inclusive), or any right\\nor benefit under any share acquisition scheme (other than a stock\\noption scheme) granted during the period from 1 January 2002 to\\n31 December 2013 (both dates inclusive), to acquire shares in any\\nqualifying company or in its holding company, there is, subject to this\\nsection, exempt from tax 50% of an amount of such gains or profits as\\ndetermined under subsection (2).\\n(2) The amount of gains or profits referred to in subsection (1) is —\\n(a) where the price to be paid for the shares under the right or\\nbenefit is equal to or exceeds the market value or, if it is not\\nIncome Tax Act 1947\\n2020 Ed.\\n190\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\npossible to determine such value, the net asset value of the\\nshares at the time of the grant of the right or benefit, the\\namount as determined under section 10(6); or\\n(b) where the price to be paid for the shares under the right or\\nbenefit is at a discount to the market value or, if it is not\\npossible to determine such value, the net asset value of the\\nshares at the time of the grant of the right or benefit, the\\namount as determined under section 10(6) less the amount\\nof the discount.\\n(3) The exemption under this section does not apply to any amount\\nof gains or profits to which section 10(6) applies —\\n(a) to the extent that the amount, when aggregated with the\\namount of such gains or profits previously derived by the\\nqualifying employee and which qualifies for exemption\\nunder this section, exceeds $10 million;\\n(b) which is derived by the qualifying employee on or after\\n1 January of the 10th year following the year in which he or\\nshe first derived such gains or profits which qualified for\\nexemption under this section; or\\n(c) which is derived by the qualifying employee for the release\\nof his or her right or benefit to acquire shares in any\\nqualifying company or in its holding company by reason of\\nhis or her resignation or termination of his or her\\nemployment with the qualifying company due to his or\\nher misconduct.\\n(4) The exemption under this section applies to gains or profits\\nderived by an employee from any right or benefit to acquire shares in\\na holding company of the company in which the employee is\\nemployed only if the following conditions are satisfied:\\n(a) both\\nthe\\ncompany\\nand\\nthe\\nholding\\ncompany\\nare\\nincorporated in Singapore;\\n(b) the holding company grants the right or benefit to acquire\\nits shares to its employees or the employees of companies\\nwithin its group of companies; and\\nIncome Tax Act 1947\\n191\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) at the time of the grant by the holding company of the right\\nor benefit to acquire its shares —\\n(i) both the company and the holding company are\\ncarrying on business in Singapore;\\n(ii) the market value of the gross assets of the company\\ndoes not exceed $100 million;\\n(iii) the market value of the gross assets of the holding\\ncompany\\nand\\ncompanies\\nwithin\\nits\\ngroup\\nof\\ncompanies\\ndoes\\nnot\\nexceed\\nin\\nthe\\naggregate\\n$100 million; and\\n(iv) the company in which the employee is employed has\\nnot granted any right or benefit to any of its\\nemployees to acquire its shares.\\n(5) The Minister may make regulations to provide generally for\\ngiving full effect to or for carrying out the purposes of this section.\\n(6) For the purposes of this section and section 13I, where a\\ncompany grants —\\n(a) any stock option during the period from 1 April 2001 to\\n31 December 2013 (both dates inclusive); or\\n(b) any right or benefit under any share acquisition scheme\\n(other than a stock option scheme) during the period from\\n1 January 2002 to 31 December 2013 (both dates\\ninclusive),\\nto acquire shares under a tranche of the share acquisition scheme and\\nany gains or profits derived by a qualifying employee from any right\\nor benefit granted under that tranche qualifies for tax exemption\\nunder this section as well as section 13I, the company must opt for the\\ntax exemption under this section or section 13I to apply in respect of\\nthe gains or profits relating to that tranche but not under both sections.\\n(7) Where a company has opted under subsection (6) for tax\\nexemption under this section to apply to the gains or profits in respect\\nof a tranche of a share acquisition scheme, tax exemption under\\nsection 13I —\\nIncome Tax Act 1947\\n2020 Ed.\\n192\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(a) is, subject to paragraph (b), not available in respect of any\\nright or benefit to acquire shares granted by the company\\nunder any tranche subsequent to that tranche under the\\nshare acquisition scheme; and\\n(b) is available in respect of any right or benefit to acquire\\nshares granted subsequent to the option by the company\\nunder any tranche under the share acquisition scheme only\\nwhere the conditions for tax exemption under this section\\nare not satisfied in respect of any such subsequent tranche\\ngranted.\\n(8) Where a company has opted under subsection (6) for tax\\nexemption under section 13I to apply to the gains or profits in respect\\nof a tranche of a share acquisition scheme, tax exemption under this\\nsection is not available in respect of any right or benefit to acquire\\nshares granted by the company under any tranche subsequent to that\\ntranche under the share acquisition scheme.\\n(9) Any option by a company under subsection (6) is irrevocable.\\n(9A) Despite anything in this section, the exemption under this\\nsection does not apply to any gains or profits derived by a qualifying\\nemployee on or after 1 January 2024.\\n(10) In this section, unless the context otherwise requires —\\n[Deleted by Act 33 of 2022 wef 04/11/2022]\\n“minimum holding period” —\\n(a) in relation to a right or benefit to acquire shares in a\\nqualifying company or holding company under any\\nstock option scheme, means the period prescribed by\\nthe Singapore Exchange during which no option may\\nbe\\nexercised\\nunder\\na\\nstock\\noption\\nscheme\\nimplemented\\nby\\nany\\ncompany\\nlisted\\non\\nthat\\nExchange, which would have been applicable to the\\nstock option granted by the qualifying company or\\nholding company (as the case may be) if it were a\\ncompany listed on that Exchange; and\\nIncome Tax Act 1947\\n193\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) in relation to a right or benefit to acquire shares in a\\nqualifying company or holding company under any\\nshare acquisition scheme (other than a stock option\\nscheme), means —\\n(i) a period of at least one year after the grant of\\nthe right or benefit, during which the shares so\\nacquired may not be sold, if the price to be paid\\nfor the shares under the right or benefit is at a\\ndiscount to the market value or, if it is not\\npossible to determine such value, the net asset\\nvalue of the shares at the time of the grant of the\\nright or benefit; or\\n(ii) a period of at least 6 months after the grant of\\nthe right or benefit, during which the shares so\\nacquired may not be sold, if the price to be paid\\nfor the shares under the right or benefit is equal\\nto or exceeds the market value or, if it is not\\npossible to determine such value, the net asset\\nvalue of the shares at the time of the grant of the\\nright or benefit;\\n“qualifying company” means a company incorporated in\\nSingapore which at the time of the grant to its employees\\nof any right or benefit to acquire its shares —\\n(a) carries on business in Singapore; and\\n(b) has gross assets the market value of which does not\\nexceed $100 million;\\n“qualifying employee” means an employee (other than any\\nnon‑executive director) of a company who, at the time of the\\ngrant to him or her of any right or benefit to acquire the shares\\nof the company or the shares of its holding company, as the\\ncase may be —\\n(a) is committed to work —\\n(i) where the time of the grant is before 1 January\\n2010 —\\nIncome Tax Act 1947\\n2020 Ed.\\n194\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(A) at least 30 hours per week for the\\ncompany; or\\n(B) where the employee is committed to work\\nless than that number of hours, at least\\n75% of his or her total working time per\\nweek for the company; and\\n(ii) where the time of the grant is on or after\\n1 January 2010 —\\n(A) at least the number of hours per week\\nreferred to in section 66A(1) of the\\nEmployment Act 1968 for the company;\\nor\\n(B) where the employee is committed to work\\nless than that number of hours, at least\\n75% of his or her total working time per\\nweek for the company; and\\n(b) does not beneficially own, directly or indirectly,\\nvoting shares that confer the right to exercise or\\ncontrol the exercise of not less than 25% of the voting\\npower in the company which grants the right or\\nbenefit to acquire its shares;\\n“share acquisition scheme” means a scheme which imposes a\\nminimum\\nholding\\nperiod\\nrequirement\\nand\\nallows\\nan\\nemployee of a company to own or purchase shares in a\\nqualifying company or that of its holding company, including\\nstock options, share awards and other similar forms of\\nemployee share purchase plans but excluding phantom shares\\nrights, share appreciation rights and any other similar rights;\\n“shares” includes stocks but does not include redeemable or\\nconvertible shares or shares of a preferential nature;\\n“total working time”, in relation to a qualifying employee,\\nmeans the total period of time spent by him or her as an\\nemployee for all his or her employers plus, if applicable, the\\ntotal period of time, which is deemed to be 10 hours per week,\\nIncome Tax Act 1947\\n195\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nspent by him or her on remunerative work as a self‑employed\\nperson.\\n[13J\\nExemption of tax on gains or profits from equity remuneration\\nincentive scheme\\n13I.—(1) Where a qualifying employee derives any gains or profits\\nin any year of assessment, after the expiry of the minimum holding\\nperiod, from any stock option granted during the period from 1 April\\n2001 to 31 December 2013 (both dates inclusive), or any right or\\nbenefit under any share acquisition scheme (other than a stock option\\nscheme) granted during the period from 1 January 2002 to\\n31 December 2013 (both dates inclusive), to acquire shares in any\\nqualifying company or in its holding company under a share\\nacquisition\\nscheme\\nwhich\\nsatisfies\\nthe\\nrelevant\\npercentage\\nrequirement, there is, subject to this section and section 13H(6) to\\n(9), exempt from tax —\\n(a) the first $2,000 of such gains or profits in that year of\\nassessment as determined under subsection (2); and\\n(b) 25% of any amount of such gains or profits in that year of\\nassessment\\nexceeding\\n$2,000\\nas\\ndetermined\\nunder\\nsubsection (2).\\n(2) The amount of gains or profits referred to in subsection (1) is —\\n(a) where the price to be paid for the shares under the right or\\nbenefit is equal to or exceeds the market value or, if it is not\\npossible to determine such value, the net asset value of the\\nshares at the time of the grant of the right or benefit, the\\namount as determined under section 10(6); or\\n(b) where the price to be paid for the shares under the right or\\nbenefit is at a discount to the market value or, if it is not\\npossible to determine such value, the net asset value of the\\nshares at the time of the grant of the right or benefit, the\\namount as determined under section 10(6) less the amount\\nof the discount.\\nIncome Tax Act 1947\\n2020 Ed.\\n196\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(3) The exemption under this section does not apply to any amount\\nof gains or profits to which section 10(6) applies —\\n(a) to the extent that the amount, when aggregated with the\\namount of such gains or profits previously derived by the\\nqualifying employee and which qualifies for exemption\\nunder this section, exceeds $1 million;\\n(b) which is derived by the qualifying employee on or after\\n1 January of the 10th year following the year in which he or\\nshe first derived such gains or profits which qualified for\\nexemption under this section; or\\n(c) which is derived by the qualifying employee for the release\\nof his or her right or benefit to acquire shares in any\\nqualifying company or in its holding company by reason of\\nhis or her resignation or termination of his or her\\nemployment with the qualifying company due to his or\\nher misconduct.\\n(3A) Despite anything in this section, the exemption under this\\nsection does not apply to any gains or profits derived by a qualifying\\nemployee on or after 1 January 2024.\\n(4) The Minister may make regulations to provide generally for\\ngiving full effect to or for carrying out the purposes of this section.\\n(5) In this section, unless the context otherwise requires —\\n[Deleted by Act 33 of 2022 wef 04/11/2022]\\n“minimum\\nholding\\nperiod”\\nhas\\nthe\\nmeaning\\ngiven\\nby\\nsection 13H;\\n“part‑time employee” means an employee of a company who is\\ncommitted to work —\\n(a) where the time of grant is before 1 January 2010, for\\nnot more than 30 hours per week (including any time\\nthe employee would be required to work but for\\ninjury, any official leave or such other similar events)\\nfor the company; or\\n(b) where the time of grant is on or after 1 January 2010,\\nfor not more than the number of hours per week\\nIncome Tax Act 1947\\n197\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nreferred to in section 66A(1) of the Employment\\nAct 1968 (including any time the employee would be\\nrequired to work but for injury, any official leave or\\nsuch other similar events) for the company;\\n“qualifying company” means a company incorporated or\\nregistered under the Companies Act 1967 which, at the\\ntime of the grant to its employees of any right or benefit to\\nacquire its shares or that of its holding company, carries on\\nbusiness in Singapore;\\n“qualifying employee” means an employee of a qualifying\\ncompany who, at the time of the grant to him or her of any\\nright or benefit to acquire the shares of the company or the\\nshares of its holding company (as the case may be) does not\\nbeneficially own, directly or indirectly, voting shares that\\nconfer the right to exercise or control the exercise of not less\\nthan 25% of the voting power in the qualifying company\\nwhich grants the right or benefit to acquire its shares;\\n“relevant percentage requirement” —\\n(a) in relation to any right or benefit under a share\\nacquisition scheme to acquire the shares of a\\nqualifying company or its holding company granted\\nbefore 16 February 2008, means in the aggregate at\\nleast 50% of the employees of the qualifying\\ncompany are offered during any calendar year any\\nrights or benefits to acquire shares in the qualifying\\ncompany or in its holding company under that\\nscheme, as ascertained in accordance with the\\nspecified formula; or\\n(b) in relation to any right or benefit under a share\\nacquisition scheme to acquire the shares of a\\nqualifying company or its holding company granted\\non or after 16 February 2008, means in the aggregate\\nat least 25% of the employees of the qualifying\\ncompany are offered during any calendar year any\\nrights or benefits to acquire shares in the qualifying\\ncompany or in its holding company under that\\nIncome Tax Act 1947\\n2020 Ed.\\n198\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nscheme, as ascertained in accordance with the\\nspecified formula;\\n“share\\nacquisition\\nscheme”\\nhas\\nthe\\nmeaning\\ngiven\\nby\\nsection 13H;\\n“shares” includes stocks but does not include redeemable or\\nconvertible shares or shares of a preferential nature;\\n“specified formula” means the formula\\nA\\nB \\u0001 C \\u0001 D \\u0001 E \\u0003 100%;\\nwhere A is the aggregate number of employees of the\\nqualifying company who are offered during a\\ncalendar year any right or benefit to acquire\\nshares in the qualifying company or in its holding\\ncompany under any share acquisition scheme in\\nrespect of which the qualifying company has opted\\nunder section 13H(6) for tax exemption under this\\nsection instead of section 13H to apply, and who are\\nemployees of that qualifying company at the time\\nof such offer;\\nB is the number of employees of the qualifying\\ncompany on the last day of that calendar year;\\nC is the number of part‑time employees (other than\\nnon‑executive directors) on the last day of that\\ncalendar year where any right or benefit to acquire\\nshares in that qualifying company or in its holding\\ncompany is not offered to any such employee for\\nthe whole of that calendar year, or nil where any\\nright or benefit to acquire shares in that qualifying\\ncompany or in its holding company is offered to\\nany such employee during that calendar year;\\nD is the number of full‑time employees with less than\\none year’s service (other than non‑executive\\ndirectors) on the last day of that calendar year\\nwhere any right or benefit to acquire shares in that\\nIncome Tax Act 1947\\n199\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nqualifying company or in its holding company is\\nnot offered to any such employee for the whole of\\nthat calendar year, or nil where any right or benefit\\nto acquire shares in that qualifying company or in\\nits holding company is offered to any such\\nemployee during that calendar year; and\\nE is the number of employees engaged on contracts\\nnot exceeding 2 years (other than non‑executive\\ndirectors) on the last day of that calendar year\\nwhere any right or benefit to acquire shares in that\\nqualifying company or in its holding company is\\nnot offered to any such employee for the whole of\\nthat calendar year, or nil where any right or benefit\\nto acquire shares in that qualifying company or in\\nits holding company is offered to any such\\nemployee during that calendar year.\\n[13L\\nExemption of tax on gains or profits from equity remuneration\\nincentive scheme (start‑ups)\\n13J.—(1) Where a qualifying employee derives any gains or profits\\nin any year of assessment, after the expiry of the minimum holding\\nperiod, from any right or benefit under any share acquisition scheme\\ngranted during the period from 16 February 2008 to 15 February 2013\\n(both dates inclusive) to acquire shares in any qualifying company,\\nthere is, subject to this section, exempt from tax 75% of an amount of\\nsuch gains or profits in that year of assessment as determined under\\nsubsection (2).\\n(2) The amount of gains or profits referred to in subsection (1) is —\\n(a) where the price to be paid for the shares under the right or\\nbenefit is equal to or exceeds the market value or (if it is not\\npossible to determine such value) the net asset value of the\\nshares at the time of the grant of the right or benefit, the\\namount as determined under section 10(6); or\\nIncome Tax Act 1947\\n2020 Ed.\\n200\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) where the price to be paid for the shares under the right or\\nbenefit is at a discount to the market value or (if it is not\\npossible to determine such value) the net asset value of the\\nshares at the time of the grant of the right or benefit, the\\namount as determined under section 10(6) less the amount\\nof the discount.\\n(3) The exemption under this section does not apply to any amount\\nof gains or profits to which section 10(6) applies —\\n(a) to the extent that the amount, when aggregated with the\\namount of such gains or profits previously derived by the\\nqualifying employee and which qualifies for exemption\\nunder this section, exceeds $10 million;\\n(b) which is derived by the qualifying employee on or after\\n16 February of the 10th year following the year in which he\\nor she first derived such gains or profits which qualified for\\nexemption under this section; or\\n(c) which is derived by the qualifying employee for the release\\nof his or her right or benefit to acquire shares in any\\nqualifying company by reason of his or her resignation or\\nthe termination of his or her employment with the\\nqualifying company due to his or her misconduct.\\n(4) For the purposes of this section and section 13H, where ––\\n(a) a company grants any right or benefit under any share\\nacquisition scheme during the period from 16 February\\n2008 to 15 February 2013 (both dates inclusive) to acquire\\nshares under a tranche of the share acquisition scheme; and\\n(b) any gains or profits derived by a qualifying employee from\\nany right or benefit granted under that tranche qualifies for\\ntax exemption under this section as well as section 13H,\\nthe company must opt for the tax exemption under this section or\\nsection 13H to apply in respect of the gains or profits relating to that\\ntranche but not under both sections.\\n(5) Where a company has opted under subsection (4) for tax\\nexemption under this section to apply to the gains or profits in respect\\nIncome Tax Act 1947\\n201\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nof a tranche of a share acquisition scheme, tax exemption under\\nsection 13H or 13I —\\n(a) is, subject to paragraph (b), not available in respect of any\\nright or benefit to acquire shares granted by the company\\nunder any tranche subsequent to that tranche under the\\nshare acquisition scheme; and\\n(b) is available in respect of any right or benefit to acquire\\nshares granted subsequent to the option by the company\\nunder any tranche under the share acquisition scheme only\\nwhere the conditions for tax exemption under this section\\nare not satisfied in respect of any such subsequent tranche\\ngranted.\\n(5A) Despite anything in this section, the exemption under this\\nsection does not apply to any gains or profits derived by a qualifying\\nemployee on or after 1 January 2024.\\n(6) The Minister may make regulations to provide generally for\\ngiving full effect to or for carrying out the purposes of this section.\\n(7) In this section —\\n“minimum holding period” —\\n(a) in relation to a right or benefit to acquire shares in a\\nqualifying company under any stock option scheme,\\nmeans the period prescribed by the Singapore\\nExchange during which no option may be exercised\\nunder a stock option scheme implemented by any\\ncompany listed on that Exchange, which would have\\nbeen applicable to the stock option granted by the\\nqualifying company if it were a company listed on\\nthat Exchange; and\\n(b) in relation to a right or benefit to acquire shares in a\\nqualifying company under any share acquisition\\nscheme (other than a stock option scheme), means —\\n(i) a period of at least one year after the grant of\\nthe right or benefit, during which the shares so\\nacquired may not be sold, if the price to be paid\\nIncome Tax Act 1947\\n2020 Ed.\\n202\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nfor the shares under the right or benefit is at a\\ndiscount to the market value or, if it is not\\npossible to determine such value, the net asset\\nvalue of the shares at the time of the grant of the\\nright or benefit; or\\n(ii) a period of at least 6 months after the grant of\\nthe right or benefit, during which the shares so\\nacquired may not be sold, if the price to be paid\\nfor the shares under the right or benefit is equal\\nto or exceeds the market value or, if it is not\\npossible to determine such value, the net asset\\nvalue of the shares at the time of the grant of the\\nright or benefit;\\n“qualifying company” means a company incorporated in\\nSingapore which, at the time of the grant to its employees\\nof any right or benefit to acquire its shares —\\n(a) carries on business in Singapore;\\n(b) has been incorporated for 3 years or less;\\n(c) has its total share capital beneficially held directly by\\nno more than 20 shareholders —\\n(i) all of whom are individuals; or\\n(ii) at least one of whom is an individual holding at\\nleast 10% of the total number of issued\\nordinary shares of the qualifying company; and\\n(d) has gross assets the market value of which does not\\nexceed $100 million;\\n“qualifying employee” means an employee (other than any\\nnon‑executive director) of a company, who at the time of the\\ngrant to him or her of any right or benefit to acquire the shares\\nof the company —\\n(a) is committed to work —\\n(i) where the time of the grant is before 1 January\\n2010 —\\nIncome Tax Act 1947\\n203\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(A) at least 30 hours per week for the\\ncompany; or\\n(B) where the employee is committed to work\\nless than that number of hours, at least\\n75% of his or her total working time per\\nweek for the company; and\\n(ii) where the time of the grant is on or after\\n1 January 2010 —\\n(A) at least the number of hours per week\\nreferred to in section 66A(1) of the\\nEmployment Act 1968 for the company;\\nor\\n(B) where the employee is committed to work\\nless than that number of hours, at least\\n75% of his or her total working time per\\nweek for the company; and\\n(b) does not beneficially own, directly or indirectly,\\nvoting shares that confer the right to exercise or\\ncontrol the exercise of not less than 25% of the voting\\npower in the company which grants the right or\\nbenefit to acquire its shares;\\n“share acquisition scheme” means a scheme which imposes a\\nminimum\\nholding\\nperiod\\nrequirement\\nand\\nallows\\nan\\nemployee of a company to own or purchase shares in a\\nqualifying company, including stock options, share awards\\nand other similar forms of employee share purchase plans but\\nexcluding phantom shares rights, share appreciation rights\\nand any other similar rights;\\n“shares” includes stocks but does not include redeemable or\\nconvertible shares or shares of a preferential nature;\\n“total working time”, in relation to a qualifying employee,\\nmeans the total period of time spent by him or her as an\\nemployee for all his or her employers plus, if applicable, the\\ntotal period of time, which is deemed to be 10 hours per week,\\nIncome Tax Act 1947\\n2020 Ed.\\n204\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nspent by him or her on remunerative work as a self‑employed\\nperson.\\n[13M\\nExemption of tax on income derived by non‑ordinarily resident\\nindividual\\n13K.—(1) Where an NOR individual is resident in Singapore in\\nany year of assessment within the period he or she is an NOR\\nindividual, he or she may, within such time in that year of assessment\\nand in such manner as may be specified by the Comptroller, elect for\\nall or any of the following income of the NOR individual to be\\nexempt from tax for that year of assessment:\\n(a) any relevant employment income for the year preceding\\nthat year of assessment, if the NOR individual —\\n(i) is not physically present in Singapore for at least\\n90 days in the year preceding that year of assessment\\nby reason of the exercise of any employment in\\nSingapore; and\\n(ii) derives gains or profits of at least $160,000 from the\\nexercise of any employment in Singapore for the\\nyear preceding that year of assessment;\\n(b) despite section 10B(11), any contribution up to the relevant\\namount made by the NOR individual’s employer to any\\nnon‑obligatory pension or provident fund constituted\\noutside Singapore in the year preceding that year of\\nassessment, if —\\n(i) the NOR individual is neither a citizen nor a\\npermanent resident of Singapore at the time such\\ncontribution is made;\\n(ii) the NOR individual derives gains or profits of at least\\n$160,000 from the exercise of any employment in\\nSingapore for the year preceding that year of\\nassessment; and\\nIncome Tax Act 1947\\n205\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(iii) a deduction with respect to such contribution has not\\nbeen allowed to the NOR individual’s employer\\nunder section 14(1)(e).\\n(2) Where the notional tax payable on the apportioned employment\\nincome by an NOR individual who has elected for tax exemption\\nunder subsection (1) is less than 10% of the gains or profits from the\\nexercise of any employment in Singapore by him or her —\\n(a) the apportioned employment income is readjusted such\\nthat the notional tax payable on the readjusted apportioned\\nemployment income is 10% of the gains or profits from the\\nexercise of any employment in Singapore by the NOR\\nindividual; and\\n(b) the relevant employment income is reduced by the\\ndifference\\nbetween\\nthe\\nreadjusted\\napportioned\\nemployment income and the apportioned employment\\nincome.\\n(3) Any individual who satisfies any of the following criteria may\\napply to the Comptroller in such manner as the Comptroller may\\ndetermine to be approved as an NOR individual for the specified\\nperiod:\\n(a) if the individual is not resident in Singapore for any year of\\nassessment before 1 January 2003, but is resident in\\nSingapore for every succeeding year of assessment up to\\nand including year of assessment 2003, for a period of\\n5 consecutive years from the first year of assessment in\\nwhich he or she is resident in Singapore;\\n(b) if the individual is resident in Singapore in year of\\nassessment 2004, but is not resident in Singapore in year\\nof assessment 2003, for a period of 5 consecutive years\\nfrom year of assessment 2004;\\n(c) if the individual is resident in Singapore in year of\\nassessment 2005, but is not resident in Singapore in\\nyears of assessment 2003 and 2004, for a period of\\n5 consecutive years from year of assessment 2005;\\nIncome Tax Act 1947\\n2020 Ed.\\n206\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(d) if the individual is resident in Singapore in any year of\\nassessment between the years of assessment 2006 and\\n2020 (both years inclusive), but is not resident in\\nSingapore for all the 3 years of assessment immediately\\npreceding that year of assessment, for a period of\\n5 consecutive years commencing from that year of\\nassessment in which he or she is resident in Singapore.\\n[32/2019]\\n(4) The Comptroller may, subject to subsection (4A) and such terms\\nand conditions as the Comptroller may impose, approve the\\napplication of an individual to be an NOR individual.\\n[32/2019]\\n(4A) No approval under subsection (4) may be granted for any\\napplication made on or after 1 January 2025.\\n[32/2019]\\n(5) Where an individual has been approved as an NOR individual,\\napproval must not be given under subsection (4) before the expiry of\\nthe period he or she is an NOR individual.\\n(5A) Where —\\n(a) an individual has been approved as an NOR individual\\nbefore the year of assessment 2009;\\n(b) the period of the individual’s approval has not expired at\\nthe beginning of that year of assessment; and\\n(c) the individual has had income exempted from tax under\\nthis section in force immediately before 16 December 2008\\nfor\\nany\\nyear\\nof\\nassessment\\nbetween\\nthe\\nyear\\nof\\nassessment 2005 and the year of assessment 2008 (both\\nyears inclusive),\\nthen the individual may, at any time at or before filing with the\\nComptroller a return of his or her income for the year of\\nassessment 2009, elect to continue to be subject to subsections (1)\\nand (7) in force immediately before 16 December 2008; and in that\\nevent subsections (1) and (7) in force immediately before that date\\ncontinue to apply to the individual for so long as he or she remains an\\nNOR individual.\\nIncome Tax Act 1947\\n207\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(6) Any election made under subsections (1) and (5A) and any\\napproval granted under subsection (4) are irrevocable.\\n(7) In this section —\\n“apportioned employment income”, in relation to an NOR\\nindividual, means total gains or profits from the exercise of\\nany employment in Singapore by the NOR individual after\\ndeducting relevant employment income;\\n“NOR individual” means any individual who is for the time\\nbeing approved as an NOR individual under subsection (4);\\n“notional tax payable”, in relation to gains or profits from the\\nexercise of any employment in Singapore by an individual,\\napportioned employment income or readjusted apportioned\\nemployment income (as the case may be) means the amount\\nof tax computed in accordance with the rates specified in\\nPart A of the Second Schedule in respect of gains or profits\\nfrom the exercise of any employment in Singapore by the\\nindividual, apportioned employment income or readjusted\\napportioned employment income (as the case may be) before\\nany deduction under sections 37 and 39;\\n“obligatory” means required under any foreign written law;\\n“relevant amount”, in relation to an NOR individual, means —\\n(a) nil if A ≥B; or\\n(b) B ‑ A if A < B,\\nwhere A is the total amount of contributions made by the\\nemployer in respect of the NOR individual to any\\nobligatory pension or provident fund constituted\\noutside Singapore and for which the amount is not\\ndeemed as income accruing to the NOR individual\\nunder section 10B(11); and\\nB is the amount of contribution which would have\\nbeen required to be made by the employer under\\nsection 7 of the Central Provident Fund Act 1953\\nif the NOR individual were an employee and a\\ncitizen of Singapore;\\nIncome Tax Act 1947\\n2020 Ed.\\n208\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“relevant employment income”, in relation to an NOR\\nindividual, means —\\nC\\nD \\u0003 E;\\nwhere C is the number of days in the year preceding that\\nyear of assessment for which the NOR individual\\nis not physically present in Singapore by reason of\\nthe exercise of any employment in Singapore;\\nD is the number of days in the year preceding that\\nyear of assessment for which the NOR individual\\nexercises any employment in Singapore; and\\nE is the gains or profits from the exercise of any\\nemployment in Singapore by the NOR individual\\nreferred to in section 10(2)(a), (6) and (7), but\\nexcluding —\\n(a) director’s fee; and\\n(b) where any amount of tax of the NOR\\nindividual payable in Singapore is borne,\\ndirectly or indirectly, by his or her employer,\\nthe amount of tax that is so borne.\\n[13N\\nExemption of income of foreign account of philanthropic\\npurpose trust\\n13L.—(1) There is exempt from tax such income derived from —\\n(a) any funds or assets in any foreign account of a\\nphilanthropic\\npurpose\\ntrust\\nconstituted\\non\\nor\\nafter\\n18\\nFebruary\\n2005\\nand\\nadministered\\nby\\na\\ntrustee\\ncompany in Singapore; and\\n(b) any funds or assets of an eligible holding company\\nestablished for the purposes of that philanthropic purpose\\ntrust which are held for the foreign account of that trust,\\nas the Minister may by regulations prescribe.\\nIncome Tax Act 1947\\n209\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(2) Regulations made under subsection (1) may provide for the\\ndeduction of expenses, allowances and losses relating to a foreign\\naccount of a philanthropic purpose trust or an eligible holding\\ncompany established for the purposes of a philanthropic purpose\\ntrust, otherwise than in accordance with this Act.\\n(3) In this section —\\n“eligible holding company” means a company —\\n(a) which is incorporated outside Singapore;\\n(b) which is set up to hold assets of a philanthropic\\npurpose trust administered by a trustee company;\\n(c) whose operations consist solely of trading or making\\ninvestments for the purpose of the philanthropic\\npurpose trust;\\n(d) which\\ndoes\\nnot\\nclaim\\nany\\nrelief\\nunder\\nany\\narrangement made under section 49 or any tax\\ncredit under section 50A; and\\n(e) all the shares of which are held by the trustees of the\\nphilanthropic purpose trust or by their nominee;\\n“foreign account”, in relation to a philanthropic purpose trust,\\nmeans an account into which funds or assets are injected\\nsolely by settlors who or which are —\\n(a) individuals that are neither citizens of Singapore nor\\nresident in Singapore, unless the Minister otherwise\\nby regulations prescribes;\\n(b) companies each of which —\\n(i) is\\nneither\\nincorporated\\nnor\\nresident\\nin\\nSingapore;\\n(ii) does not have a permanent establishment in\\nSingapore\\nother\\nthan\\na\\ntrustee\\ncompany\\nreferred to in subsection (1)(a);\\nIncome Tax Act 1947\\n2020 Ed.\\n210\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(iii) does not in the basis period —\\n(A) in the case of any year of assessment\\nbefore 2021, carry on a business in\\nSingapore; or\\n(B) in the case of the year of assessment 2021\\nor a subsequent year of assessment, carry\\non a business in Singapore or outside\\nSingapore;\\n(iv) does not beneficially own more than 20% of the\\ntotal number of the issued shares of any\\ncompany incorporated in Singapore;\\n(v) does not have 20% or more of the total number\\nof its issued shares beneficially owned, directly\\nor indirectly, by a company which —\\n(A) has\\na\\npermanent\\nestablishment\\nin\\nSingapore other than a trustee company\\nreferred to in subsection (1)(a);\\n(B) carries on in the basis period —\\n(BA) in\\nthe\\ncase\\nof\\nany\\nyear\\nof\\nassessment\\nbefore\\n2021,\\na\\nbusiness in Singapore; or\\n(BB) in\\nthe\\ncase\\nof\\nthe\\nyear\\nof\\nassessment 2021 or a subsequent\\nyear of assessment, a business in\\nSingapore or outside Singapore;\\nor\\n(C) beneficially owns more than 20% of the\\ntotal number of the issued shares of any\\ncompany incorporated in Singapore; and\\n(vi) has —\\n(A) if it has no more than 50 shareholders, all\\nof its issued shares beneficially owned,\\ndirectly or indirectly, by persons who are\\nIncome Tax Act 1947\\n211\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nneither citizens of Singapore nor resident\\nin Singapore; or\\n(B) if it has more than 50 shareholders, not\\nless than 95% of the total number of its\\nissued shares beneficially owned, directly\\nor indirectly, by persons who are neither\\ncitizens of Singapore nor resident in\\nSingapore;\\n(c) foreign trusts;\\n(d) other philanthropic purpose trusts that inject funds or\\nassets from their foreign accounts; or\\n(e) any other persons that are neither —\\n(i) resident in Singapore; nor\\n(ii) constituted or registered under any written law\\nin Singapore;\\n“foreign trust” has the meaning given by section 13F;\\n“philanthropic purpose trust” means a trust established in\\nwriting under any law for a purpose which is for the public\\nbenefit and which falls within any of the following\\ndescriptions of purposes:\\n(a) the prevention or relief of poverty;\\n(b) the advancement of education;\\n(c) the advancement of religion;\\n(d) the advancement of health;\\n(e) the\\nadvancement\\nof\\ncitizenship\\nor\\ncommunity\\ndevelopment;\\n(f) the advancement of the arts, heritage or science;\\n(g) the advancement of environmental protection or\\nimprovement;\\n(h) the relief of those in need by reason of youth, age, ill\\nhealth,\\ndisability,\\nfinancial\\nhardship\\nor\\nother\\ndisadvantage;\\nIncome Tax Act 1947\\n2020 Ed.\\n212\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(i) the advancement of animal welfare;\\n(j) the advancement of any sport which involves\\nphysical skill and exertion;\\n(k) any other purpose beneficial to the community;\\n“trustee company” has the meaning given by section 43G(2).\\n[32/2019]\\n(4) The Minister or an authorised body may in any particular case\\nwaive any requirement referred to in paragraph (b)(ii) to (v) of the\\ndefinition of “foreign account” in subsection (3).\\n[Act 41 of 2020 wef 06/12/2022]\\n(5) This section does not apply to —\\n(a) a trust that is constituted on or after 1 January 2025;\\n(b) a company that is incorporated on or after 1 January 2025;\\n(c) a trust that —\\n(i) is constituted before 1 January 2025; and\\n(ii) in the basis period in which 31 December 2024 falls,\\nis not a philanthropic purpose trust that —\\n(A) has a foreign account; and\\n(B) is administered by a trustee company in\\nSingapore; or\\n(d) a company —\\n(i) is incorporated before 1 January 2025; and\\n(ii) in the basis period in which 31 December 2024 falls,\\nis not an eligible holding company established for the\\npurposes of a philanthropic purpose trust which\\nsatisfies the requirements in paragraph (c)(ii)(A)\\nand (B).\\n[37/2014; 32/2019]\\n(6) Where, in any basis period beginning on or after 1 January 2025,\\na trust or company does not satisfy the applicable requirement\\nreferred to in subsection (7), then this section does not apply to the\\ntrust or company for the year of assessment to which that basis period\\nIncome Tax Act 1947\\n213\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nrelates, and for every subsequent year of assessment even if that\\nrequirement is satisfied in the basis period for the subsequent year of\\nassessment.\\n[37/2014; 32/2019]\\n(7) In subsection (6), the requirement is —\\n(a) in the case of the trust, that it is a philanthropic purpose\\ntrust that has a foreign account and is administered by a\\ntrustee company in Singapore; or\\n(b) in the case of the company, that it is an eligible holding\\ncompany established for the purposes of a philanthropic\\npurpose trust which satisfies all of the requirements in\\nparagraph (a).\\n[37/2014]\\n(8) Where, in any basis period beginning on or after 1 January 2025,\\nthe trustee company which administers a philanthropic purpose trust\\nfails to comply with any of the regulations under subsection (1), then\\nthis section does not apply to the trust or the eligible holding company\\nestablished for the purposes of the trust for the year of assessment to\\nwhich that basis period relates, and for every subsequent year of\\nassessment even if those regulations are satisfied in the basis period\\nfor the subsequent year of assessment.\\n[13O\\n[37/2014; 32/2019]\\nExemption of income derived from asset securitisation\\ntransaction\\n13M.—(1) There is exempt from tax, subject to such conditions as\\nmay be prescribed by regulations, income derived by an approved\\nsecuritisation\\ncompany\\nresident\\nin\\nSingapore\\nfrom\\nasset\\nsecuritisation transaction entered into during the period from\\n27 February 2004 to 31 December 2028 (both dates inclusive).\\n[45/2018]\\n[Act 30 of 2023 wef 30/10/2023]\\n(2) Regulations made under subsection (1) may provide for the\\ndeduction of expenses, allowances and losses of an approved\\nsecuritisation company otherwise than in accordance with this Act.\\nIncome Tax Act 1947\\n2020 Ed.\\n214\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(3) Despite anything in this section, where it appears to the\\nComptroller that any income of an approved securitisation company\\nwhich has been exempted from tax under subsection (1) ought not to\\nhave been so exempted for any year of assessment, the Comptroller\\nmay, at any time within 4 years after the expiry of that year of\\nassessment, make such assessment or additional assessment upon the\\ncompany as may appear to be necessary in order to make good any\\nloss of tax.\\n(3A) Parts 17 and 18 (relating to assessments, objections and\\nappeals) and any rules made under this Act apply, with the necessary\\nmodifications, as if an assessment under subsection (3) were a notice\\nof assessment.\\n(4) In this section —\\n“approved\\nsecuritisation\\ncompany”\\nmeans\\na\\ncompany\\nincorporated in Singapore principally to conduct asset\\nsecuritisation transaction and is approved by the Minister\\nor an authorised body;\\n[Act 41 of 2020 wef 06/12/2022]\\n“asset securitisation transaction” means the acquisition of assets\\n(other than immovable property in Singapore) or risks by an\\napproved securitisation company where the acquisition of\\nsuch assets or risks is funded through the issuance of\\nasset‑backed securities by the company.\\n[13P\\nExemption of relevant income of prescribed\\nlocally‑administered trust\\n13N.—(1) There is exempt from tax all relevant income of —\\n(a) such locally‑administered trust as the Minister may by\\nregulations prescribe; and\\n(b) a holding company established for the purposes of such\\ntrust, as the Minister may by regulations prescribe.\\n(2) Where any relevant income of a prescribed locally‑administered\\ntrust is exempt from tax under subsection (1) in any year of\\nassessment, the share of such income to which any beneficiary of the\\nIncome Tax Act 1947\\n215\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nlocally‑administered trust is entitled to receive for that year of\\nassessment is also exempt from tax.\\n(3) In this section —\\n“locally‑administered trust” means a trust administered by a\\ntrustee company in Singapore —\\n(a) every settlor of which is an individual;\\n(b) every beneficiary of which is an individual or a\\ncharitable institution, trust or body of persons\\nestablished for charitable purposes only; and\\n(c) at least one of the beneficiaries of which is not a\\nsettlor of the trust;\\n“relevant income” means —\\n(a) any\\nincome\\nof\\nthe\\nkinds\\nreferred\\nto\\nin\\nsection 13(1)(zd), (ze), (zf), (zh), (zi), (zj), (zk) or\\n(zl) accrued in or derived from Singapore on or after\\n17 February 2006; or\\n(b) any income of the kinds referred to in section 13(7A)\\nreceived in Singapore on or after 17 February 2006\\nexcluding,\\nin\\nrespect\\nof\\na\\nprescribed\\nlocally‑administered trust, any dividend received by\\nthe trust from a prescribed holding company not\\nresident in Singapore, if the dividend is paid out of\\nincome that is not the relevant income of the holding\\ncompany;\\n“trustee company” has the meaning given by section 43G(2).\\n(4) This section does not apply to —\\n(a) a trust that is constituted on or after 1 January 2025;\\n(b) a company that is incorporated on or after 1 January 2025;\\n(c) a trust that —\\n(i) is constituted before 1 January 2025; and\\n(ii) in the basis period in which 31 December 2024 falls,\\nis not a locally‑administered trust prescribed under\\nIncome Tax Act 1947\\n2020 Ed.\\n216\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nsubsection\\n(1)\\n(called\\nin\\nthis\\nsubsection\\nand\\nsubsection (6) a prescribed trust); or\\n(d) a company that —\\n(i) is incorporated before 1 January 2025; and\\n(ii) in the basis period in which 31 December 2024 falls,\\nis not a holding company established for the\\npurposes of a prescribed trust, and prescribed\\nunder subsection (1).\\n[37/2014; 32/2019]\\n(5) Where, in any basis period beginning on or after 1 January 2025,\\na trust or company does not satisfy the requirement referred to in\\nsubsection (6), then this section does not apply to the trust or\\ncompany for the year of assessment to which that basis period relates,\\nand for every subsequent year of assessment even if the requirement\\nis satisfied in the basis period for the subsequent year of assessment.\\n[37/2014; 32/2019]\\n(6) In subsection (5), the requirement is —\\n(a) in the case of the trust, that it is a prescribed trust; or\\n(b) in the case of the company, that it is a holding company\\nestablished for the purposes of a prescribed trust, and\\nprescribed under subsection (1).\\n[37/2014]\\n(7) Where, in any basis period beginning on or after 1 January 2025,\\nthe trustee company which administers a locally‑administered trust\\nfails to comply with any of the regulations made under subsection (1),\\nthen this section does not apply to the trust or the holding company\\nestablished for the purposes of the trust for the year of assessment to\\nwhich that basis period relates, and for every subsequent year of\\nassessment even if those regulations are satisfied in the basis period\\nfor the subsequent year of assessment.\\n[13Q\\n[37/2014; 32/2019]\\nIncome Tax Act 1947\\n217\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nExemption of income of company incorporated and resident in\\nSingapore arising from funds managed by fund manager in\\nSingapore\\n13O.—(1) Subject to such conditions as may be prescribed by\\nregulations or specified in the letter of approval of the company, there\\nis exempt from tax such income as the Minister may by regulations\\nprescribe of a company incorporated and resident in Singapore and\\napproved by the Minister or an authorised body (called in this section\\nan approved company) arising from funds managed —\\n(a) in Singapore by a fund manager; or\\n(b) by a person approved by the Minister or authorised body.\\n[Act 41 of 2020 wef 06/12/2022]\\n(1A) The approval of a person under subsection (1) is subject to\\nsuch conditions as the Minister may impose.\\n(2) No approval may be granted under subsection (1) after\\n31 December 2024.\\n[37/2014; 32/2019]\\n(3) Where —\\n(a) income of any approved company has been exempt from\\ntax under subsection (1) in any year of assessment; and\\n(b) a person (called in this section the relevant owner), either\\nalone or together with the relevant owner’s associates,\\nbeneficially owns on the relevant day issued securities of\\nthe approved company the value of which is more than the\\nprescribed percentage of the total value of all issued\\nsecurities of the approved company on the relevant day,\\nthen the relevant owner is liable to pay to the Comptroller, in such\\nmanner and within such reasonable time as may be determined by the\\nComptroller, a penalty to be computed in accordance with the\\nformula\\nA \\u0003 B \\u0003 C;\\nwhere A is the percentage which the value of the issued\\nsecurities of the approved company beneficially\\nowned on the relevant day by the relevant owner\\nIncome Tax Act 1947\\n2020 Ed.\\n218\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nbears to the total value of all issued securities of the\\napproved company on the relevant day;\\nB is the amount of income of the approved company as\\nreflected in the audited account of the approved\\ncompany for the basis period relating to that year of\\nassessment; and\\nC is the tax rate specified in section 43(1)(a) applicable\\nto that year of assessment.\\n(4) Subsection (3) does not apply to a relevant owner if —\\n(a) the Comptroller permits the relevant owner to take steps to\\nreduce the ownership of the issued securities by the\\nrelevant owner or the relevant owner’s associates within\\nsuch period as the Comptroller may specify, being a period\\nof no more than 3 months from the relevant day; and\\n(b) by the end of the specified period, the value of the issued\\nsecurities beneficially owned by the relevant owner\\ntogether with the relevant owner’s associates is no more\\nthan the prescribed percentage of the total value of all\\nissued securities of the approved company on the relevant\\nday.\\n(5) Despite subsection (3), where —\\n(a) income of any approved company has been exempt from\\ntax under subsection (1) in any year of assessment;\\n(b) a person, either alone or together with the person’s\\nassociates, beneficially owns on the relevant day any\\nissued securities of the approved company; and\\n(c) the person mentioned in paragraph (b) is a non‑bona fide\\nentity,\\nthen the person mentioned in paragraph (b) is not liable to pay the\\npenalty referred to in subsection (3); but a person (called in this\\nsection the liable person) who —\\n(d) beneficially owns on the relevant day equity interests of the\\nperson mentioned in paragraph (b); and\\nIncome Tax Act 1947\\n219\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(e) is not himself, herself or itself a non‑bona fide entity,\\nis liable to pay to the Comptroller, in such manner and within such\\nreasonable time as may be determined by the Comptroller, a penalty\\nto be computed in accordance with the formula specified in\\nsubsection (5A), if, and only if, the total of —\\n(f) the value of the equity interests of the approved company\\nbeneficially owned by the liable person on the relevant\\nday; and\\n(g) the value of the equity interests of the approved company\\nbeneficially owned by the associates of the liable person on\\nthe relevant day,\\nexceeds the prescribed percentage of the total value of all the equity\\ninterests of the approved company on that day.\\n(5A) The formula for the penalty referred to in subsection (5) is as\\nfollows:\\nA \\u0003 B \\u0003 C;\\nwhere A is the percentage which the value of the equity\\ninterests\\nof\\nthe\\napproved\\ncompany\\nbeneficially\\nowned on the relevant day by the liable person bears\\nto the total value of all equity interests of the approved\\ncompany on the relevant day;\\nB is the amount of income of the approved company as\\nreflected in the audited account of the approved\\ncompany for the basis period relating to that year of\\nassessment; and\\nC is the tax rate applicable to that year of assessment as\\nspecified in section 43(1)(a).\\n(5B) Subsection (4) applies, with the necessary modifications, to\\nthe liable person as it applies to a relevant owner as if the reference to\\nsubsection (3) is a reference to subsection (5).\\nIncome Tax Act 1947\\n2020 Ed.\\n220\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(6) For the purposes of subsections (5)(d), (f) and (g) and (5A), if —\\n(a) a person beneficially owns (including by virtue of one or\\nmore applications of this subsection) equity interests of a\\nperson (called in this subsection a first level entity); and\\n(b) the first level entity beneficially owns equity interests of\\nanother person (called in this subsection a second level\\nentity),\\nthen the firstmentioned person is taken to beneficially own equity\\ninterests of the second level entity; and the percentage which the\\nvalue of those equity interests bears to the total value of all equity\\ninterests of the second level entity is computed in accordance with the\\nformula\\nA \\u0003 B;\\nwhere A is the percentage which the value of equity interests\\nof the first level entity beneficially owned by the\\nfirstmentioned person bears to the total value of all\\nequity interests of the first level entity; and\\nB is the percentage which the value of equity interests\\nof the second level entity beneficially owned by the\\nfirst level entity bears to the total value of all equity\\ninterests of the second level entity.\\n(6A) The Minister an authorised body may at any time, in the\\ndiscretion of the Minister or authorised body and subject to such\\nconditions as the Minister or authorised body may impose, remit or\\nrefund, wholly or in part, the penalty that is payable or paid by a\\nperson under subsection (3) or (5); and section 92(2B) to (2E) applies,\\nwith the necessary modifications, to any non‑compliance with any\\nsuch condition as it applies to the non‑compliance with a condition\\nimposed under section 92(2).\\n[37/2014]\\n[Act 41 of 2020 wef 06/12/2022]\\n(7) Regulations made under this section may —\\n(a) provide for the determination of the amount of income of\\nany approved company to be exempt from tax;\\nIncome Tax Act 1947\\n221\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) provide for the circumstances under which a person would\\nbe considered to be an associate for the purposes of this\\nsection;\\n(c) exempt any person or class of persons from subsection (3)\\nor (5); and\\n(d) make provision generally for giving full effect to or for\\ncarrying out the purposes of this section.\\n(8) In this section —\\n“equity interest” means —\\n(a) in relation to a company, any issued security of that\\ncompany; or\\n(b) in relation to a person other than a company, such\\nright or interest as may be prescribed;\\n“issued securities”, in relation to a company, means —\\n(a) issued debentures of, or issued stocks or shares in, the\\ncompany;\\n(b) any right, option or derivative in respect of any such\\ndebentures, stocks or shares; or\\n(c) such other securities of the company as may be\\nprescribed;\\n“non‑bona fide entity” means a person not resident in Singapore\\n(excluding a permanent establishment in Singapore) who —\\n(a) is set up solely for the purpose of avoiding or\\nreducing payment of tax or penalty under this Act; or\\n(b) does not carry out any substantial business activity\\nfor a genuine commercial reason;\\n“relevant day” means —\\n(a) the last day of the basis period of the approved\\ncompany for the year of assessment referred to in\\nsubsection (3) or (5), as the case may be; or\\nIncome Tax Act 1947\\n2020 Ed.\\n222\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) if within that basis period the approved company\\nceases to be so approved, the last day it was so\\napproved;\\n“value” —\\n(a) in relation to issued securities of a company other\\nthan those prescribed under paragraph (c) of the\\ndefinition of “issued securities”, means —\\n(i) where the relevant day is before 1 April 2014,\\nthe value of those securities at the time of their\\nissue by the company; and\\n(ii) where the relevant day falls on or after 1 April\\n2014, the net asset value of those securities as\\nat the relevant day; or\\n(b) in relation to issued securities of a company\\nprescribed under paragraph (c) of the definition of\\n“issued securities”, means —\\n(i) where the relevant day is before 1 April 2014,\\nthe value of those securities at the prescribed\\ntime; and\\n(ii) where the relevant day falls on or after 1 April\\n2014, the net asset value of those securities as\\nat the relevant day.\\n[37/2014; 2/2016]\\n(9) The Minister may by regulations make such transitional and\\nsaving provisions as the Minister may consider necessary or\\nexpedient in relation to the repeal of section 13R of this Act as in\\nforce immediately before 1 September 2007.\\n[13R\\nExemption of income of shipping investment enterprise\\n13P.—(1) Subject to subsections (1G) and (4), there is exempt from\\ntax the income derived by an approved shipping investment\\nenterprise —\\n(a) before 25 March 2016 from the chartering or finance\\nleasing of any seagoing ship, acquired by the approved\\nIncome Tax Act 1947\\n223\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nshipping investment enterprise before or during the period\\nof its approval referred to in subsection (3), to —\\n(i) a person who is neither resident in Singapore nor a\\npermanent establishment in Singapore; or\\n(ii) an approved international shipping enterprise,\\n(a) for use outside the limits of the port of Singapore;\\n(b) before 25 March 2016 from the chartering or finance\\nleasing of any seagoing Singapore ship, acquired by the\\napproved shipping investment enterprise before or during\\nthe period of its approval referred to in subsection (3), to a\\nshipping enterprise within the meaning of section 13A for\\nuse outside the limits of the port of Singapore;\\n(c) before 25 March 2016, for the year of assessment 2009 and\\nsubsequent years of assessment, from foreign exchange\\nand risk management activities which are carried out in\\nconnection with and incidental to the activities referred to\\nin paragraphs (a) and (b);\\n(ca) on or after 25 March 2016 from the chartering or finance\\nleasing of any seagoing ship acquired by the approved\\nshipping investment enterprise before or during the period\\nof its approval mentioned in subsection (3), for use outside\\nthe limits of the port of Singapore;\\n(cb) on or after 25 March 2016 from foreign exchange and risk\\nmanagement activities which are carried out in connection\\nwith\\nand\\nincidental\\nto\\nany\\nactivity\\nmentioned\\nin\\nparagraph (ca);\\n(cc) on or after 12 December 2018 from the chartering or\\nfinance leasing by the approved shipping investment\\nenterprise of any seagoing ship, for use by the lessee\\noutside the limits of the port of Singapore, if the ship\\nwas —\\n(i) acquired by an approved related party before or\\nduring\\nthe\\nperiod\\nof\\nits\\napproval\\nunder\\nsubsection (3); and\\nIncome Tax Act 1947\\n2020 Ed.\\n224\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(ii) chartered, or leased under a finance lease, by the\\napproved related party to the approved shipping\\ninvestment enterprise;\\n(cd) on or after 12 December 2018 from foreign exchange and\\nrisk management activities that are carried out in\\nconnection with and incidental to an activity mentioned\\nin paragraph (cc); and\\n(d) on or after 1 June 2011 from —\\n(i) the sale of a seagoing ship;\\n(ii) the assignment to another of all its rights as the buyer\\nunder a contract for the construction of a seagoing\\nship; or\\n(iii) the sale of all of the issued ordinary shares in a\\nspecial purpose company of the approved shipping\\ninvestment enterprise where, at the time of the sale of\\nthe shares, the special purpose company owns any\\nseagoing ship or is the buyer under a contract for the\\nconstruction of any seagoing ship.\\n[34/2016; 32/2019]\\n(1A) Subsection\\n(1),\\nin\\nrelation\\nto\\nincome\\nreferred\\nto\\nin\\nparagraph (a), (b), (c), (ca) or (cb) of that subsection, continues to\\napply to a shipping investment enterprise the approval of which has\\nexpired or been withdrawn, but which continues to derive such\\nincome in relation to a seagoing ship acquired before or during the\\nperiod of the approval, provided that the enterprise has by the date of\\nthe expiry or before the withdrawal, fulfilled all the conditions\\nreferred to in subsection (3); and any reference in this section to an\\napproved\\nshipping\\ninvestment\\nenterprise\\nis\\nto\\nbe\\nconstrued\\naccordingly.\\n[34/2016]\\n(1B) In relation to income mentioned in subsection (1)(cc) or (cd),\\nsubsection (1) continues to apply to a shipping investment enterprise\\nthe approval of which has expired or been withdrawn, but that\\ncontinues to derive such income, if both the shipping investment\\nenterprise and the related party mentioned in subsection (1)(cc) have,\\nIncome Tax Act 1947\\n225\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nby the date of the expiry or before the withdrawal, fulfilled all the\\nconditions of their respective approvals under subsection (3).\\n[32/2019]\\n(1C) For the purpose of subsection (1B), the shipping investment\\nenterprise is treated under this section as an approved shipping\\ninvestment enterprise.\\n[32/2019]\\n(1D) Subsection (1)(ca) and (cc) does not apply to income derived\\non or after 12 December 2018 from the chartering or finance leasing\\nof a seagoing ship that is acquired by the approved shipping\\ninvestment enterprise or the approved related party by way of a\\nfinance lease entered into with an entity that was not an approved\\nrelated party.\\n[32/2019]\\n(1DA) Subsection (1)(ca) and (cc) also does not apply to any\\nincome derived by an approved shipping investment enterprise as\\npart of a business of trading in seagoing ships or constructing\\nseagoing ships for sale.\\n[41/2020]\\n(1E) Subsections (1)(cc) and (cd) and (1B) apply to income derived\\nby an approved shipping investment enterprise in relation to a ship\\nacquired by the related party before the period of the approval of the\\nrelated party, if and only if the approved shipping investment\\nenterprise is approved on or after 1 April 2008.\\n[32/2019]\\n(1F) Subsection (1)(d) does not apply to —\\n(a) any income of an approved shipping investment enterprise\\nderived before 12 December 2018 as a lessor of a seagoing\\nship under a finance lease that is treated as a sale under\\nsection 10C; or\\n(b) any income of an approved shipping investment enterprise\\nthat is derived as part of a business of trading in seagoing\\nships or of constructing seagoing ships for sale.\\n[32/2019; 41/2020]\\n(1G) Subsections (1) and (1A) apply to income derived by an\\napproved shipping investment enterprise in relation to a seagoing\\nIncome Tax Act 1947\\n2020 Ed.\\n226\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nship acquired before the period of its approval, if and only if the\\nenterprise is approved on or after 1 April 2008.\\n[32/2019]\\n(2) The Minister or an authorised body may, at any time between\\n1 March 2006 and 31 December 2026 (both dates inclusive), approve\\na shipping investment enterprise or a related party of an approved\\nshipping investment enterprise for the purposes of subsection (1).\\n[37/2014; 2/2016; 32/2019; 41/2020]\\n[Act 41 of 2020 wef 12/04/2024]\\n(3) The approval under subsection (2) is subject to such conditions\\nas the Minister may specify, and is —\\n(a) where the approval is granted during the period between\\n1 March 2006 and 28 February 2011 (both dates inclusive),\\nfor such period not exceeding 10 years, as the Minister may\\nspecify; and\\n(b) where the approval is granted during the period between\\n1 March 2011 and 31 December 2026 (both dates\\ninclusive), for such period not exceeding 5 years, as the\\nMinister may specify,\\nexcept that the Minister may extend the period so specified for such\\nfurther periods as the Minister thinks fit.\\n[37/2014; 2/2016; 41/2020]\\n(3A) A reference to the Minister in subsection (3), in the case of an\\napproval granted on or after the date of commencement of\\nsection 5(1)(a) of the Income Tax (Amendment) Act 2021,\\nincludes the authorised body.\\n[Act 27 of 2021 wef 12/04/2024]\\n(4) The Minister or an authorised body may, in respect of any\\nseagoing ship or class of seagoing ships, specify the period during\\nwhich the income of the seagoing ship or class of seagoing ships may\\nbe exempted from tax under subsection (1) not exceeding —\\n(a) in the case of any ship used for the carriage of goods or\\npassengers, towage or salvage, a period of 30 years; or\\nIncome Tax Act 1947\\n227\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) in the case of any dredger, seismic ship or any ship used for\\noffshore oil or gas activity, offshore renewable energy\\nactivity or offshore mineral activity, a period of 40 years.\\n[34/2016]\\n[Act 41 of 2020 wef 12/04/2024]\\n(5) In determining the amount of the income of an approved\\nshipping\\ninvestment\\nenterprise\\nwhich\\nis\\nexempted\\nunder\\nsubsection (1), the allowances provided for in sections 16, 17, 18,\\n18B, 18C, 19, 19A, 20, 21, 22 and 23, other than allowances made to\\na lessee of a seagoing ship under regulations made under\\nsection 10C —\\n(a) must be taken into account even if no claim for those\\nallowances has been made; and\\n(b) may only be deducted against the income referred to in\\nsubsection (1), and the balance of those allowances is not\\navailable as a deduction against any other income, except\\nthat any balance remaining unabsorbed at the end of the tax\\nexempt period of the enterprise is available as a deduction\\nagainst any other income for the year of assessment which\\nrelates to the basis period in which the tax exemption\\nceases and for any subsequent year of assessment in\\naccordance with section 23.\\n(6) Where an approved shipping investment enterprise incurs a loss\\nduring the tax exempt period in respect of any activity referred to in\\nparagraphs (a), (b), (c), (ca), (cb), (cc) and (cd) of subsection (1), that\\nloss —\\n(a) must be deducted in accordance with section 37; and\\n(b) may only be deducted against the income referred to in any\\nof those paragraphs, and the balance of such loss is not\\navailable as a deduction against any other income, except\\nthat any balance remaining unabsorbed at the end of the tax\\nexempt period is available as a deduction against any other\\nincome for the year of assessment which relates to the basis\\nperiod in which the tax exemption ceases and for any\\nIncome Tax Act 1947\\n2020 Ed.\\n228\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nsubsequent\\nyear\\nof\\nassessment\\nin\\naccordance\\nwith\\nsection 37.\\n[34/2016; 32/2019]\\n(6A) Where an approved shipping investment enterprise incurs a\\nloss on any sale or assignment mentioned in subsection (1)(d) in any\\nbasis period falling, in whole or in part, within the tax exempt period,\\nthat loss may only be deducted against the gains derived from another\\nsale or assignment mentioned in subsection (1)(d) in that same basis\\nperiod, and the balance of the loss is not available as a deduction\\nagainst any other income.\\n(7) The Comptroller must for each year of assessment for which the\\nincome of an approved shipping investment enterprise is exempt\\nfrom tax under subsection (1) issue to the enterprise a statement (to be\\nincluded in a notice of any assessment served on the enterprise under\\nsection 76) showing the amount of income exempt from tax under\\nsubsection (1); and Parts 17 and 18 (relating to assessments,\\nobjections and appeals) and any rules made under this Act apply,\\nwith the necessary modifications, as if such statement were a notice\\nof assessment.\\n(8) Where any statement issued to an approved shipping investment\\nenterprise under subsection (7) has become final and conclusive, the\\namount of income shown in the statement does not form part of the\\nstatutory income of the enterprise for the year of assessment to which\\nthe statement relates and is exempt from tax.\\n(9) [Deleted by Act 19 of 2013]\\n(10) [Deleted by Act 19 of 2013]\\n(11) [Deleted by Act 19 of 2013]\\n(12) [Deleted by Act 19 of 2013]\\n(13) [Deleted by Act 19 of 2013]\\n(14) [Deleted by Act 19 of 2013]\\n(15) [Deleted by Act 19 of 2013]\\n(16) [Deleted by Act 19 of 2013]\\n(17) An approved shipping investment enterprise must deliver to\\nthe Comptroller a statement of the account made up to any date\\nIncome Tax Act 1947\\n229\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nspecified by the Comptroller whenever called upon to do so by\\nwritten notice.\\n(18) Despite anything in this section, where it appears to the\\nComptroller that any income of an approved shipping investment\\nenterprise which has been exempted from tax under subsection (1)\\nought not to have been so exempted for any year of assessment, the\\nComptroller may, at any time within 4 years after the expiry of that\\nyear of assessment, make such assessment or additional assessment\\nupon the enterprise as may appear to be necessary in order to make\\ngood any loss of tax.\\n(19) Parts 17 and 18 (relating to assessments, objections and\\nappeals) and any rules made under this Act apply, with the necessary\\nmodifications, as if an assessment under subsection (18) were a\\nnotice of assessment.\\n(19A) [Deleted by Act 2 of 2016]\\n(20) In this section —\\n“approved\\ninternational\\nshipping\\nenterprise”\\nmeans\\nan\\ninternational shipping enterprise approved by the Minister\\nor an authorised body, subject to such conditions as the\\nMinister or authorised body may impose;\\n[Act 41 of 2020 wef 12/04/2024]\\n“finance leasing” means the leasing of any seagoing ship\\n(including any arrangement or agreement in connection with\\nsuch\\nleasing)\\nwhich\\nhas\\nthe\\neffect\\nof\\ntransferring\\nsubstantially the obsolescence, risks or rewards incidental\\nto ownership of the seagoing ship to the lessee;\\n“international shipping enterprise” has the meaning given by\\nsection 13E(6);\\n“registered business trust” has the meaning given by the\\nBusiness Trusts Act 2004;\\n“related party”, in relation to an approved shipping investment\\nenterprise, means —\\nIncome Tax Act 1947\\n2020 Ed.\\n230\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(a) any entity that is related to the approved shipping\\ninvestment enterprise in such manner as may be\\nprescribed by rules made under section 7; or\\n(b) any other entity that is approved by the Minister or\\nauthorised body in any particular case to be a related\\nparty of the approved shipping investment enterprise;\\n[Act 27 of 2021 wef 12/04/2024]\\n“ship” has the meaning given by section 2(1) of the Merchant\\nShipping Act 1995;\\n“shipping investment enterprise” means —\\n(a) a company incorporated and resident in Singapore; or\\n(b) a registered business trust;\\n“Singapore ship” has the meaning given by section 13A(16);\\n“special purpose company”, in relation to an approved shipping\\ninvestment\\nenterprise,\\nmeans\\na\\ncompany\\nthat\\nis\\nwholly‑owned by the enterprise and whose only business\\nor intended business is the chartering or finance leasing of\\nseagoing ships;\\n“tax exempt period”, in relation to an approved shipping\\ninvestment enterprise, means —\\n(a) in a case where the enterprise is approved on or after\\n1 April 2008 and —\\n(i) acquired; or\\n(ii) chartered, or leased under a finance lease, from\\na related party,\\n(a) a seagoing ship for use outside the limits of the port\\nof Singapore before the date of approval of the\\nenterprise — the period from the date of that approval\\nto the date where no income of any seagoing ship of\\nthat enterprise is eligible for exemption from tax\\nunder subsection (1) (both dates inclusive); or\\n(b) in any other case — the period from the date the\\nenterprise —\\nIncome Tax Act 1947\\n231\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(i) first acquired; or\\n(ii) first chartered, or leased under a finance lease,\\nfrom a related party,\\n(b) during the period of approval of the enterprise, a\\nseagoing ship for use outside the limits of the port of\\nSingapore, to the date where no income of any\\nseagoing ship of that enterprise is eligible for\\nexemption from tax under subsection (1) (both\\ndates inclusive).\\n[2/2016; 32/2019; 27/2021]\\n(21) Rules made for the purpose of the definition of “related party”\\nin subsection (20) may be made to take effect from (and including)\\n12 December 2018.\\n[13S\\n[32/2019]\\nExemption of trust income to which beneficiary is entitled\\n13Q.—(1) Where any beneficiary of a trust who is resident in\\nSingapore is entitled to any share of the statutory income of the trust,\\nthat share is exempt from tax in the beneficiary’s hands if it would\\nhave been exempt from tax under any provision of this Part had it\\nbeen derived or received directly by the beneficiary rather than the\\ntrustee.\\n(2) This section does not apply to —\\n(a) any income of a real estate investment trust within the\\nmeaning of section 43(10);\\n(b) any income of a designated unit trust within the meaning of\\nsection 35(14);\\n(c) [Deleted by Act 37 of 2014]\\n(d) any income of a trust fund prescribed under section 13C;\\n(e) any income of a foreign trust specified under section 13F;\\n(f) any income of a locally‑administered trust prescribed\\nunder section 13N;\\nIncome Tax Act 1947\\n2020 Ed.\\n232\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(g) any income of a trust the trustee of which is a prescribed\\nperson under section 13D; or\\n(h) any income of an approved trust fund referred to in the\\ndefinition of “approved person” under section 13U(5), or\\nof a trust fund that is a feeder fund or master fund approved\\nunder section 13U.\\n[13T\\n[37/2014]\\nExemption of estate income received by beneficiary, etc.\\n13QA. Where a person resident in Singapore is a beneficiary of an\\nestate administered in Singapore, and any share of the statutory\\nincome of the estate is received by, distributed to or applied to the\\nbenefit of that person, that share is exempt from tax in the person’s\\nhands if it would have been exempt from tax under any provision of\\nthis Part had it been derived or received directly by that person\\ninstead of the executor of the estate.\\n[Act 30 of 2023 wef 30/10/2023]\\nExemption of income of not‑for‑profit organisation\\n13R.—(1) There is exempt from tax any income of an approved\\nnot‑for‑profit organisation.\\n(2) The Minister or an authorised body may, during the period from\\n15 February 2007 to 31 December 2027 (both dates inclusive),\\napprove\\nany\\nnot‑for‑profit\\norganisation\\nfor\\nthe\\npurposes\\nof\\nsubsection (1).\\n[37/2014; 34/2016; 27/2021]\\n[Act 41 of 2020 wef 12/04/2024]\\n(3) The approval under subsection (2) is subject to such conditions\\nas the Minister or an authorised body may impose and is for such\\nperiod not exceeding 10 years as the Minister or authorised body may\\nspecify.\\n[Act 41 of 2020 wef 12/04/2024]\\n(4) Despite subsection (2), the period specified under subsection (3)\\nmay be extended on expiry by the Minister or an authorised body for\\nsuch further period or periods, not exceeding 10 years at any one\\ntime, as the Minister or authorised body thinks fit.\\n[Act 41 of 2020 wef 12/04/2024]\\nIncome Tax Act 1947\\n233\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(5) The Minister may make regulations to provide for the deduction\\nof expenses, allowances and losses of an approved not‑for‑profit\\norganisation otherwise than in accordance with this Act.\\n(6) Despite subsection (1), where it appears to the Comptroller that\\nany income of an approved not‑for‑profit organisation which has\\nbeen exempted from tax under subsection (1) ought not to have been\\nso exempted for any year of assessment, the Comptroller may at any\\ntime, subject to section 74, make such assessment or additional\\nassessment on the approved not‑for‑profit organisation as may appear\\nto be necessary in order to make good any loss of tax.\\n(6A) Any expenses, losses or allowances incurred or claimed by an\\napproved not‑for‑profit organisation during the period of its approval\\nunder subsection (3) or (4) that remain unabsorbed at the end of that\\nperiod, are not available as a deduction against any of its income for\\nthe year of assessment which relates to the basis period in which the\\napproval of the approved not‑for‑profit organisation expires or is\\nwithdrawn, or any subsequent year of assessment.\\n[27/2021]\\n(7) In this section, “not‑for‑profit organisation” means any person,\\nnot being a person registered or exempt from registration under the\\nCharities Act 1994 —\\n(a) who is not established or operated for the object of deriving\\na profit;\\n(b) whose income and property —\\n(i) may only be applied for the furtherance of its objects;\\nand\\n(ii) are not distributable to any shareholder, member,\\ntrustee or officer of the person except as reasonable\\ncompensation for services rendered; and\\n(c) whose property may only be distributed to persons\\nestablished for a similar object as that person’s upon that\\nperson’s dissolution.\\n[13U\\nIncome Tax Act 1947\\n2020 Ed.\\n234\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nExemption of income derived by law practice from\\ninternational arbitration held in Singapore\\n13S.—(1) Any law practice intending to provide legal services in\\nconnection with any international arbitration may, from 1 July 2007\\nto 30 June 2017 (both dates inclusive), apply to the Minister, or such\\nperson as the Minister may appoint, for approval as an approved law\\npractice.\\n(2) Where the Minister, or such person as the Minister may appoint,\\nconsiders it expedient in the public interest to do so, the Minister or\\nappointed person may approve the application and issue a letter to the\\nlaw practice subject to such conditions as the Minister or appointed\\nperson thinks fit.\\n(2A) No approval under this section may be granted to any law\\npractice which is approved on or after 1 April 2010 as a development\\nand expansion company under Part 4 of the Economic Expansion\\nIncentives (Relief from Income Tax) Act 1967 in respect of\\ninternational\\nservices\\nthat\\nqualify\\nfor\\nzero‑rating\\nunder\\nsection 21(3) of the Goods and Services Tax Act 1993, and such\\napproval remains in force.\\n(3) Every letter issued under subsection (2) must specify a date as\\nthe commencement day from which the approved law practice is\\nentitled to tax relief under this section.\\n(4) The tax relief period of an approved law practice commences on\\nits commencement day and continues for such period, not exceeding\\n5 years, as is specified in the letter issued to it under subsection (2).\\n(5) The amount of the income of an approved law practice which\\nwill qualify for the relief for any year of assessment is the excess of\\nthe total amount of the qualifying income of the approved law\\npractice for the basis period for that year of assessment over its base\\nincome.\\n(6) Where an approved law practice has satisfied the conditions\\nspecified in the letter issued to it under subsection (2), one‑half of the\\namount of the income of the approved law practice for any year of\\nassessment for a basis period that falls within the tax relief period\\nwhich qualifies for the relief as ascertained under subsection (5) does\\nIncome Tax Act 1947\\n235\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nnot form part of the statutory income of the approved law practice for\\nthat year of assessment and is exempt from tax.\\n(6A) For the purpose of satisfying the Comptroller that its income\\nqualifies for relief under this section, the approved law practice must\\nprovide, not later than 5 years after the end of its tax relief period,\\nevidence of the place of hearing or intended place of hearing (as the\\ncase may be) of the international arbitration.\\n(7) Where an approved law practice is a law corporation, the\\nexemption under section 43(6) or (6C) (as the case may be) does not\\napply to the balance of the qualifying income exceeding the base\\nincome of the approved law practice that is not exempt under\\nsubsection (6).\\n[45/2018]\\n(8) The base income mentioned in subsection (5) is —\\n(a) where an approved law practice had in the period of 3 years\\nimmediately preceding the commencement day provided\\nlegal\\nservices\\nin\\nconnection\\nwith\\nany\\nqualifying\\ninternational arbitration —\\n(i) the amount ascertained by dividing the total income\\nderived from providing those legal services in the\\nperiod by the actual number of years in the period in\\nwhich those legal services were provided; or\\n(ii) if the amount ascertained under sub‑paragraph (i) is\\nless than zero, deemed to be zero; or\\n(b) such amount as the Minister may specify.\\n(9) The Comptroller must determine the manner and extent to\\nwhich allowances under section 19, 19A, 20, 21, 22 or 23 and any\\nexpenses and losses allowable under this Act which are attributable to\\nthe qualifying income of an approved law practice are to be deducted.\\n(10) In determining the qualifying income of an approved law\\npractice for the basis period for any year of assessment, there are to be\\ndeducted from the income —\\n(a) expenses allowable under this Act for that year of\\nassessment which are attributable to that income; and\\nIncome Tax Act 1947\\n2020 Ed.\\n236\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) any allowances for that year of assessment under\\nsection 19, 19A, 20, 21 or 22 attributable to that income\\neven if no claim for those allowances has been made.\\n(11) The Comptroller may require an auditor to certify the income\\nderived by an approved law practice from legal services in connection\\nwith any qualifying international arbitration and any direct costs and\\nexpenses incurred therefor.\\n(12) Where an approved law practice has in any year of assessment\\nduring the tax relief period incurred any loss from providing legal\\nservices in connection with any qualifying international arbitration or\\nany allowances attributable to the qualifying income remaining\\nunabsorbed, 50% of the loss or allowances, in each case, is to be\\ndeducted as provided for in section 23 or 37 (as the case may be) and\\nthe balance is disregarded.\\n(13) [Deleted by Act 19 of 2013]\\n(14) [Deleted by Act 19 of 2013]\\n(15) In this section —\\n“arbitral tribunal”, “award”, “international arbitration” and\\n“party” have the meanings given by the International\\nArbitration Act 1994;\\n“client”, “foreign law practice”, “Formal Law Alliance”, “Joint\\nLaw Venture”, “law corporation” and “Singapore law\\npractice” have the meanings given by the Legal Profession\\nAct 1966;\\n“hearing” means a hearing by the arbitral tribunal on the\\nsubstance of the dispute;\\n“law practice” means a Singapore law practice, foreign law\\npractice, Formal Law Alliance or Joint Law Venture;\\n“legal services in connection with any qualifying international\\narbitration” —\\n(a) in relation to an approved law practice whose\\napplication for approval is made at any time\\nbetween 1 July 2007 and 30 June 2012 (both dates\\ninclusive), means any professional work of a legal\\nIncome Tax Act 1947\\n237\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nnature provided for the purposes of an international\\narbitration during the eligible period by any lawyer of\\nthe law practice for its client who is a party to the\\narbitration the hearing of which is held in Singapore\\nduring its tax relief period or the period referred to in\\nsubsection (8)(a), as the case may be; or\\n(b) in relation to an approved law practice whose\\napplication for approval is made at any time\\nbetween 1 July 2012 and 30 June 2017 (both dates\\ninclusive), means any professional work of a legal\\nnature provided for the purposes of an international\\narbitration during the eligible period by any lawyer of\\nthe law practice for its client who is a party to the\\narbitration the hearing of which is held or would (if\\nthere had been a hearing) have been held in\\nSingapore;\\n“qualifying income” means the income derived by an approved\\nlaw practice from the provision of legal services in\\nconnection with any qualifying international arbitration.\\n[37/2014]\\n(16) For the purposes of the definition of “legal services in\\nconnection\\nwith\\nany\\nqualifying\\ninternational\\narbitration”\\nin\\nsubsection (15), “eligible period” means —\\n(a) in relation to an approved law practice whose application\\nfor approval is made at any time between 1 July 2007 and\\n30 June 2012 (both dates inclusive), the period beginning\\non the initial date specified in sub‑paragraph (i) or (ii),\\nwhichever is applicable, and ending on the terminal date\\nspecified in sub‑paragraph (iii) or (iv), whichever is\\napplicable:\\n(i) where the client in question is the claimant serving\\nthe request for arbitration, the initial date is the date\\nof issue of the request;\\n(ii) where the client in question is the respondent being\\nserved the request for arbitration, the initial date is\\nIncome Tax Act 1947\\n2020 Ed.\\n238\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthe date of receipt of the request for arbitration by the\\nclient or law practice;\\n(iii) a terminal date which is the date on which the final\\naward is made by the arbitral tribunal;\\n(iv) a terminal date which is the date on which the\\narbitration\\nproceeding\\nhas\\notherwise\\nfinally\\nterminated; or\\n(b) in relation to an approved law practice whose application\\nfor approval is made at any time between 1 July 2012 and\\n30 June 2017 (both dates inclusive), the period beginning\\non the initial date specified in sub‑paragraph (i) or (ii),\\nwhichever is applicable, and ending on the terminal date\\nspecified in sub‑paragraph (iii) or (iv), whichever is\\napplicable:\\n(i) where the client in question is the claimant serving\\nthe request for arbitration, the initial date is the date\\nof issue of the request;\\n(ii) where the client in question is the respondent being\\nserved the request for arbitration, the initial date is\\nthe date of receipt of the request for arbitration by the\\nclient or law practice;\\n(iii) a terminal date which is the date on which the final\\naward is made by the arbitral tribunal;\\n(iv) a terminal date which is the date on which the\\narbitration\\nproceeding\\nhas\\notherwise\\nfinally\\nterminated, whether or not there was a hearing.\\n[13V\\nExemption of relevant income of eligible family‑owned\\ninvestment holding company\\n13T.—(1) There is exempt from tax all relevant income of an\\neligible family‑owned investment holding company.\\n(2) For the purposes of subsection (1), the Minister may make\\nregulations to provide for the deduction of expenses, allowances and\\nIncome Tax Act 1947\\n239\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nlosses of an eligible family‑owned investment holding company\\notherwise than in accordance with this Act.\\n(3) In this section —\\n“eligible family‑owned investment holding company” means\\nany company incorporated before 1 April 2013 —\\n(a) whose shareholders are related to each other in the\\nmanner prescribed by regulations;\\n(b) whose operation consists wholly or mainly of the\\nholding or making of investments; and\\n(c) which satisfies such other conditions as may be\\nprescribed by regulations;\\n“relevant income” means —\\n(a) any\\nincome\\nof\\nthe\\nkinds\\nreferred\\nto\\nin\\nsection 13(1)(zd), (ze), (zf), (zh), (zi), (zj), (zk) or\\n(zl) accrued in or derived from Singapore on or after\\n1 April 2008; or\\n(b) any income of the kinds referred to in section 13(7A)\\nreceived in Singapore on or after 1 April 2008.\\n(4) Where a company fails to satisfy the definition of “eligible\\nfamily‑owned investment holding company” in any basis period\\nbeginning on or after 1 April 2013, then this section does not apply to\\nthe company in any subsequent basis period, even if it satisfies the\\ndefinition in that subsequent basis period.\\n(5) Subsection (1) ceases to apply with effect from the year of\\nassessment 2024.\\n[13W\\n[39/2017]\\nExemption of income arising from funds managed by fund\\nmanager in Singapore\\n13U.—(1) Subject to such conditions as may be prescribed by\\nregulations or specified in the letter of approval of the person, master\\nfund, feeder fund, SPV, master‑feeder fund structure, master‑feeder\\nfund‑SPV structure or master fund‑SPV structure, there is exempt\\nIncome Tax Act 1947\\n2020 Ed.\\n240\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nfrom tax such income as the Minister may by regulations prescribe\\nof —\\n(a) an approved person arising from funds managed in\\nSingapore by a fund manager;\\n(b) in relation to an approved master‑feeder fund structure —\\n(i) a person (not being an individual, a body of persons\\nor a Hindu joint family) that is an approved master\\nfund or an approved feeder fund of the structure;\\n(ii) a partner of a partnership (including a limited\\npartnership and a limited liability partnership),\\nwhere the partnership is the approved master fund\\nor an approved feeder fund of the structure;\\n(iii) a trustee of a trust fund where the trust fund is the\\napproved master fund or an approved feeder fund of\\nthe structure; and\\n(iv) a taxable entity in relation to the approved master\\nfund or an approved feeder fund of the structure,\\nwhere the master fund or feeder fund is not a legal\\nentity,\\n(b) arising from funds of the master fund or any feeder fund of\\nthat structure, that are managed in Singapore by a fund\\nmanager;\\n(c) in relation to an approved master‑feeder fund‑SPV\\nstructure —\\n(i) a company, a trustee of a trust fund or a partner of a\\nlimited partnership, where the company, trust fund or\\nlimited partnership is the approved master fund or an\\napproved feeder fund of the structure;\\n(ia) a person (not being a company, an individual or a\\nHindu joint family) that is an approved feeder fund\\nof the structure;\\n(ib) a partner of a partnership (excluding a limited\\npartnership\\nbut\\nincluding\\na\\nlimited\\nliability\\nIncome Tax Act 1947\\n241\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\npartnership), where the partnership is an approved\\nfeeder fund of the structure;\\n(ic) a taxable entity in relation to an approved feeder fund\\nof the structure, where the feeder fund is not a legal\\nentity;\\n(ii) an approved 1st tier SPV of the structure;\\n(iii) an approved 2nd tier SPV of the structure;\\n(iv) an approved eligible SPVof the structure, where the\\neligible\\nSPV\\nis\\nnot\\none\\nmentioned\\nin\\nsub‑paragraphs (v), (vi) and (vii);\\n(v) a partner of an approved eligible SPV of the\\nstructure, where the eligible SPV is a partnership\\n(including a limited partnership and a limited\\nliability partnership);\\n(vi) the trustee of an approved eligible SPV of the\\nstructure, where the eligible SPV is a trust fund; and\\n(vii) the taxable entity of an approved eligible SPVof the\\nstructure, where the eligible SPV is not a legal entity,\\n(c) arising from funds of —\\n(viii) the master fund;\\n(ix) any feeder fund; or\\n(x) any approved eligible SPV,\\n(c) of that structure, that are managed in Singapore by a fund\\nmanager; or\\n[Act 33 of 2022 wef 19/02/2019]\\n(d) in relation to an approved master fund‑SPV structure —\\n(i) a company, a trustee of a trust fund or a partner of a\\nlimited partnership, where the company, trust fund or\\nlimited partnership is the approved master fund of\\nthe structure;\\n(ii) an approved 1st tier SPV of the structure;\\n(iii) an approved 2nd tier SPV of the structure;\\nIncome Tax Act 1947\\n2020 Ed.\\n242\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(iv) an approved eligible SPVof the structure, where the\\neligible\\nSPV\\nis\\nnot\\none\\nmentioned\\nin\\nsub‑paragraphs (v), (vi) and (vii);\\n(v) a partner of an approved eligible SPV of the\\nstructure, where the eligible SPV is a partnership\\n(including a limited partnership and a limited\\nliability partnership);\\n(vi) the trustee of an approved eligible SPV of the\\nstructure, where the eligible SPV is a trust fund; and\\n(vii) the taxable entity of an approved eligible SPVof the\\nstructure, where the eligible SPV is not a legal entity,\\n(d) arising from funds of the master fund or of any approved\\neligible SPV of that structure, that are managed in\\nSingapore by a fund manager.\\n[2/2016; 45/2018; 32/2019]\\n[Act 33 of 2022 wef 19/02/2019]\\n(2) Approval under subsection (1)(a) may be granted during the\\nperiod from 1 April 2009 to 31 December 2024 (both dates inclusive).\\n[37/2014; 32/2019]\\n(2A) Approval under subsection (1)(b) may be granted during the\\nperiod from 7 July 2010 to 31 December 2024 (both dates inclusive).\\n[37/2014; 32/2019]\\n(2B) Approval under subsection (1)(c)(i) and (d)(i) may be granted\\nduring the period from 1 April 2015 to 31 December 2024 (both dates\\ninclusive).\\n[32/2019]\\n(2C) Approval under subsection (1)(c)(ia), (ib) and (ic) may be\\ngranted during the period from 20 February 2018 to 31 December\\n2024 (both dates inclusive).\\n[32/2019]\\n(2D) Approval under subsection (1)(c)(ii) and (iii) and (d)(ii) and\\n(iii) may be granted during the period from 1 April 2015 to\\n18 February 2019 (both dates inclusive).\\n[32/2019]\\nIncome Tax Act 1947\\n243\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(2E) Approval under subsection (1)(c)(iv), (v), (vi) and (vii) and\\n(d)(iv), (v), (vi) and (vii) may be granted during the period from\\n19 February 2019 to 31 December 2024 (both dates inclusive).\\n[32/2019]\\n(3) Where the income of any approved person or person (including\\na company), trustee, partner, taxable entity, 1st tier SPV, 2nd tier SPV\\nor eligible SPV referred to in subsection (1)(b), (c) or (d) is not\\nexempt from tax under this section, sections 13C, 13D and 13O do\\nnot apply to that income despite anything in those provisions.\\n[2/2016; 45/2018; 32/2019]\\n(4) Regulations made under subsection (1) may —\\n(a) provide for the determination of the amount of income of\\nany approved person or person (including a company),\\ntrustee, partner, taxable entity, 1st tier SPV, 2nd tier SPVor\\neligible SPVreferred to in subsection (1)(b), (c) or (d) to be\\nexempt from tax;\\n(b) provide for the deduction of expenses, allowances and\\nlosses of any approved person or person (including a\\ncompany), trustee, partner, taxable entity, 1st tier SPV,\\n2nd\\ntier\\nSPV\\nor\\neligible\\nSPV\\nreferred\\nto\\nin\\nsubsection (1)(b), (c) or (d) otherwise than in accordance\\nwith this Act;\\n(c) where the approved person is a partner of an approved\\npartnership (including a limited partnership and a limited\\nliability partnership), provide for the recovery of tax from\\nthe partner in a case where the exemption ought not to have\\nbeen allowed to the partner due to non‑compliance with\\nany condition imposed on the partnership, including the\\ndeeming of a specified amount as income of the partner for\\nthe year of assessment in which the Comptroller discovers\\nthe non‑compliance of the condition;\\n(ca) provide for the recovery of tax from a person (including a\\ncompany), trustee, taxable entity, 1st tier SPV, 2nd tier\\nSPVor eligible SPV referred to in subsection (1)(b), (c) or\\n(d) in a case where the exemption ought not to have been\\nallowed to the person due to non‑compliance with any\\nIncome Tax Act 1947\\n2020 Ed.\\n244\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\ncondition imposed on the approved master‑feeder fund\\nstructure, approved master‑feeder fund‑SPV structure or\\napproved master fund‑SPV structure, as the case may be;\\n(cb) provide for the recovery of tax from a partner of a\\npartnership (including a limited partnership and a limited\\nliability partnership) referred to in subsection (1)(b), (c) or\\n(d) in a case where the exemption ought not to have been\\nallowed to that partner due to non‑compliance with any\\ncondition imposed on the approved master‑feeder fund\\nstructure, approved master‑feeder fund‑SPV structure or\\napproved master fund‑SPV structure (as the case may be),\\nincluding the deeming of a specified amount as income of\\nthe partner for the year of assessment in which the\\nComptroller discovers the non‑compliance\\nwith the\\ncondition; and\\n(d) make provision generally for giving full effect to or for\\ncarrying out the purposes of this section.\\n[2/2016; 45/2018; 32/2019]\\n(5) In this section —\\n“1st tier SPV”, in relation to a master‑feeder fund‑SPV structure\\nor a master fund‑SPV structure, means a special purpose\\nvehicle wholly‑owned by the master fund of the structure;\\n“2nd tier SPV”, in relation to a master‑feeder fund‑SPV\\nstructure or a master fund‑SPV structure, means a special\\npurpose vehicle wholly‑owned by a 1st tier SPV of the\\nstructure;\\n“approved” means approved by the Minister or an authorised\\nbody;\\n[Act 41 of 2020 wef 06/12/2022]\\n“approved person” means —\\n(a) any approved person (not being an individual, a body\\nof persons or a Hindu joint family);\\n(b) any partner of an approved partnership (including a\\nlimited\\npartnership\\nand\\na\\nlimited\\nliability\\npartnership);\\nIncome Tax Act 1947\\n245\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) any trustee of an approved trust fund; or\\n(d) the taxable entity of an approved investment vehicle\\nthat is not a legal entity;\\n“designated unit trust” means any designated unit trust within\\nthe meaning of section 35(14) and whose income does not\\nform part of the statutory income of its trustee by reason of\\nsection 35(12);\\n“eligible SPV”, in relation to a master‑feeder fund‑SPV\\nstructure or a master fund‑SPV structure, means a special\\npurpose vehicle where the net gains, profits or other benefits\\nof all investments held by the vehicle are to go (whether\\ndirectly or indirectly) to the master fund of the structure, or\\nthe master fund and one or more of the following:\\n(a) a prescribed person under section 13D;\\n(b) an approved company under section 13O;\\n(c) an approved person, or an approved master fund, an\\napproved feeder fund, an approved 1st tier SPV, an\\napproved 2nd tier SPVor an approved eligible SPVof\\nany structure mentioned in subsection (1);\\n(d) a prescribed sovereign fund entity or an approved\\nforeign government‑owned entity under section 13V;\\n(e) a person (excluding an individual and a Hindu joint\\nfamily) —\\n(i) that is not resident in Singapore;\\n(ii) that does not have a permanent establishment in\\nSingapore (other than a fund manager);\\n(iii) that does not carry on a business in Singapore;\\n(iv) that is not set up solely for the purpose of\\navoiding or reducing the payment of any tax or\\npenalty under this Act; and\\n(v) that carries on outside Singapore substantial\\nbusiness activity for a genuine commercial\\nreason;\\nIncome Tax Act 1947\\n2020 Ed.\\n246\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(f) a trust fund —\\n(i) the trustee of which is not resident in Singapore\\nor a citizen of Singapore;\\n(ii) the trustee of which does not (in its capacity as\\nsuch trustee) have a permanent establishment\\nin Singapore other than a fund manager for that\\ntrust fund;\\n(iii) the trustee of which does not carry on any\\nbusiness in Singapore other than acting as such\\ntrustee;\\n(iv) the trustee of which (in its capacity as such\\ntrustee)\\ncarries\\non\\noutside\\nSingapore\\nsubstantial business activity for a genuine\\ncommercial reason; and\\n(v) that is not set up solely for the purpose of\\navoiding or reducing the payment of any tax or\\npenalty under this Act;\\n(g) a partnership (including a limited partnership and a\\nlimited liability partnership) —\\n(i) none of the partners of which is resident in\\nSingapore;\\n(ii) that does not have a permanent establishment in\\nSingapore (other than a fund manager);\\n(iii) that does not carry on a business in Singapore;\\n(iv) that is not set up solely for the purpose of\\navoiding or reducing the payment of any tax or\\npenalty under this Act; and\\n(v) that carries on outside Singapore substantial\\nbusiness activity for a genuine commercial\\nreason;\\n(h) an investment vehicle that is not a legal person —\\n(i) the taxable entity of which is the custodian of\\ninvestments held by it;\\nIncome Tax Act 1947\\n247\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(ii) the taxable entity of which is not a resident in\\nSingapore or a citizen of Singapore;\\n(iii) the taxable entity of which (in its capacity as\\ncustodian\\nof\\ninvestments\\nheld\\nby\\nthe\\ninvestment\\nvehicle)\\ndoes\\nnot\\nhave\\na\\npermanent establishment in Singapore other\\nthan a fund manager for that investment\\nvehicle;\\n(iv) the taxable entity of which does not carry on\\nany business in Singapore other than acting as\\nsuch custodian;\\n(v) the taxable entity of which carries on outside\\nSingapore substantial business activity for a\\ngenuine commercial reason; and\\n(vi) that is not set up solely for the purpose of\\navoiding or reducing the payment of any tax or\\npenalty under this Act;\\n“feeder fund” means an investment vehicle (whether or not a\\nlegal entity) that invests its funds, or whose funds are\\ninvested, substantially and directly through a single master\\nfund;\\n“master‑feeder\\nfund\\nstructure”\\nmeans\\nan\\narrangement\\ncomprising one or more feeder funds and the master fund\\nthrough which the funds of the feeder fund or funds are\\nsubstantially and directly invested;\\n“master‑feeder fund‑SPV structure” means an arrangement\\ncomprising —\\n(a) one or more feeder funds;\\n(b) the master fund through which the funds of the feeder\\nfund or funds are substantially and directly invested;\\nand\\n(c) one or more SPVs;\\n“master\\nfund‑SPV\\nstructure”\\nmeans\\nan\\narrangement\\ncomprising —\\nIncome Tax Act 1947\\n2020 Ed.\\n248\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(a) a master fund; and\\n(b) one or more SPVs;\\n“master fund” —\\n(a) in relation to a master fund‑SPV structure or\\nmaster‑feeder\\nfund‑SPV\\nstructure,\\nmeans\\na\\ncompany, a trust fund or a limited partnership; or\\n(b) in relation to a master‑feeder fund structure, means\\nan investment vehicle (whether or not a legal entity),\\nthat enables investors to invest funds in one or more\\nunderlying investments that are managed by a fund manager;\\n“real estate investment trust” has the meaning given by\\nsection 43(10);\\n“special purpose vehicle” or “SPV” —\\n(a) in relation to a master‑feeder fund‑SPV structure,\\nmeans an investment vehicle whose only activity is\\nthe holding of investments for other investment\\nvehicles or persons which must include the master\\nand feeder funds of the structure; or\\n(b) in relation to a master fund‑SPV structure, means an\\ninvestment vehicle whose only activity is the holding\\nof investments for other investment vehicles or\\npersons which must include the master fund of the\\nstructure;\\n“taxable entity”, in relation to an investment vehicle (including a\\nmaster fund, a feeder fund and an SPV) that is not a legal\\nentity, means the person to whom income from the\\ninvestment vehicle accrues;\\n“trust fund” does not include any trust that is a pension or\\nprovident fund approved by the Comptroller under section 5,\\ndesignated unit trust and real estate investment trust.\\n[37/2014; 2/2016; 45/2018; 32/2019]\\n(6) The following approvals may only be granted on or after\\n20 February 2018:\\nIncome Tax Act 1947\\n249\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(a) the approval, for the purposes of the definition of\\n“approved person” in subsection (5), of —\\n(i) a person other than a company;\\n(ii) a\\npartnership,\\nincluding\\na\\nlimited\\nliability\\npartnership but excluding a limited partnership; or\\n(iii) an investment vehicle that is not a legal entity (other\\nthan a trust fund);\\n(b) the approval, for the purpose of subsection (1)(b), of any of\\nthe following as a master fund or feeder fund:\\n(i) a person that is not a company;\\n(ii) a\\npartnership,\\nincluding\\na\\nlimited\\nliability\\npartnership but excluding a limited partnership;\\n(iii) an investment vehicle that is not a legal entity (other\\nthan a trust fund).\\n[13X\\n[45/2018; 32/2019]\\nExemption of certain income of prescribed sovereign fund\\nentity and approved foreign government‑owned entity\\n13V.—(1) There is exempt from tax such income as the Minister\\nmay by regulations prescribe of —\\n(a) a prescribed sovereign fund entity arising from its funds\\nthat are managed in Singapore by an approved foreign\\ngovernment‑owned entity; and\\n(b) an approved foreign government‑owned entity arising\\nfrom its funds that are managed in Singapore, and from\\nmanaging in Singapore the funds of, or providing in\\nSingapore any investment advisory service to, a prescribed\\nsovereign fund entity.\\n(2) The Minister or an authorised body may, at any time between\\n1 April 2010 and 31 December 2024 (both dates inclusive), approve a\\nforeign government‑owned entity for the purpose of subsection (1).\\n[37/2014; 32/2019]\\n[Act 41 of 2020 wef 06/12/2022]\\nIncome Tax Act 1947\\n2020 Ed.\\n250\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(3) Regulations made under subsection (1) may —\\n(a) provide for the period of each approval, and that the\\nconditions to which any approval is subject may be stated\\nin\\nthe\\nletter\\nof\\napproval\\nissued\\nto\\nthe\\nforeign\\ngovernment‑owned entity;\\n(aa) provide for renewal of an approval;\\n(b) provide for the determination of the amount of income of a\\nprescribed sovereign fund entity or an approved foreign\\ngovernment‑owned entity that is exempt from tax;\\n(c) provide for the deduction of expenses, allowances and\\nlosses of a prescribed sovereign fund entity or an approved\\nforeign government‑owned entity\\notherwise\\nthan in\\naccordance with this Act; and\\n(d) make provision generally for giving full effect to or for\\ncarrying out the purposes of this section.\\n[37/2014]\\n(4) In this section —\\n“foreign government‑owned entity” means —\\n(a) an entity wholly and beneficially owned (whether\\ndirectly or indirectly) by the government or other\\npublic authority of a foreign country;\\n(b) an entity that is incorporated, formed or established\\nby the government or other public authority of a\\nforeign country either directly or indirectly through\\none or more intermediate entities;\\n(c) an entity that is incorporated, formed or established\\nby the law of a foreign country and that is not a public\\nauthority of that foreign country; or\\n(d) an entity that is incorporated, formed or established\\nby an entity mentioned in paragraph (c) either\\ndirectly\\nor\\nindirectly\\nthrough\\none\\nor\\nmore\\nintermediate entities,\\nand whose principal activity is to manage the entity’s own\\nfunds or the funds of a prescribed sovereign fund entity;\\nIncome Tax Act 1947\\n251\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“prescribed sovereign fund entity” means a sovereign fund\\nentity that satisfies such conditions as may be prescribed;\\n“sovereign fund entity” means —\\n(a) the government or other public authority of a foreign\\ncountry;\\n(b) an entity wholly and beneficially owned by the\\ngovernment or other public authority of a foreign\\ncountry;\\n(c) an entity that is incorporated, formed or established\\nby the government or other public authority of a\\nforeign country either directly or indirectly through\\none or more intermediate entities;\\n(d) an entity that is incorporated, formed or established\\nby the law of a foreign country and that is not a public\\nauthority of that foreign country; or\\n(e) an entity that is incorporated, formed or established\\nby an entity mentioned in paragraph (d) either\\ndirectly\\nor\\nindirectly\\nthrough\\none\\nor\\nmore\\nintermediate entities,\\nand whose funds (which may include the reserves of the\\ngovernment and any pension or provident fund of that\\ncountry)\\nare\\nmanaged\\nby\\nan\\napproved\\nforeign\\ngovernment‑owned entity.\\n[13Y\\n[41/2020]\\nExemption of gains or profits from disposal of ordinary shares\\n13W.—(1) There is exempt from tax any gains or profits derived by\\na company (called in this section the divesting company) from the\\ndisposal of ordinary shares in another company (called in this section\\nthe investee company) which are legally and beneficially owned by\\nthe divesting company immediately before the disposal, being a\\ndisposal —\\n(a) during the period between 1 June 2012 to 31 December\\n2027 (both dates inclusive); and\\nIncome Tax Act 1947\\n2020 Ed.\\n252\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) after the divesting company has, at all times during a\\ncontinuous period of at least 24 months ending on the date\\nimmediately prior to the date of disposal of such shares,\\nlegally and beneficially owned at least 20% of the ordinary\\nshares in that investee company.\\n[34/2016; 41/2020]\\n(2) Subsection (1) only applies if the divesting company provides,\\nat the time of lodgment of its return of income for the year of\\nassessment relating to the basis period in which the disposal occurs,\\nor within such further time as the Comptroller may allow, such\\ninformation and supporting documents as may be specified by the\\nComptroller.\\n(3) In determining the amount of gains or profits which are exempt\\nfrom tax under subsection (1) for any year of assessment, there are to\\nbe deducted all outgoings and expenses wholly and exclusively\\nincurred by the divesting company in the production of such gains or\\nprofits, including —\\n(a) the price paid in acquiring those shares;\\n(b) any sum payable by way of interest upon any money\\nborrowed\\nby\\nthe\\ndivesting\\ncompany,\\nwhere\\nthe\\nComptroller is satisfied that the interest was payable on\\ncapital employed to acquire the shares;\\n(c) any sum payable in the basis period for the year of\\nassessment 2008 or a subsequent year of assessment in lieu\\nof interest or for the reduction thereof, upon any money\\nborrowed by the divesting company, being a sum of a type\\nprescribed\\nunder\\nsection\\n14(1)(a)(ii),\\nwhere\\nthe\\nComptroller is satisfied that it was payable on capital\\nemployed to acquire the shares;\\n(d) any legal costs incurred for the acquisition or disposal of\\nthe shares;\\n(e) any amount paid in respect of stamp duty for the\\nacquisition or disposal of the shares; and\\n(f) any other expenses allowable under this Act which are\\ndirectly attributable to those gains or profits.\\nIncome Tax Act 1947\\n253\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(4) In determining for the purposes of subsection (1) whether the\\ndivesting company legally and beneficially owns at any time at least\\n20% of the ordinary shares in the investee company, the divesting\\ncompany is treated as the legal and beneficial owner of any ordinary\\nshares in that investee company during the borrowing period when\\nthe legal interest in such shares had been transferred by the divesting\\ncompany to another under a securities lending or repurchase\\narrangement.\\n(5) Where —\\n(a) gains or profits derived from the disposal of ordinary\\nshares by the divesting company is exempt from tax under\\nsubsection (1); and\\n(b) one or more of the amounts referred to in subsection (6)\\nwhich are attributable to any of the shares disposed of,\\nhave been allowed as a deduction to the divesting company\\nfor any year of assessment prior to the year of assessment\\nrelating to the basis period in which the shares are disposed\\nof,\\nthen the amounts in paragraph (b) are regarded as income of the\\ndivesting company that is chargeable to tax for the second‑mentioned\\nyear of assessment.\\n(6) Subsection (5) applies to the following amounts:\\n(a) any amount provided for a diminution in the value of the\\nshares;\\n(b) any amount written off against the value of the shares;\\n(c) any impairment loss for the shares;\\n(d) any loss recognised in accordance with FRS 39, SFRS for\\nSmall Entities, FRS 109 or SFRS(I) 9 (as the case may be),\\nin determining the profit or loss or expense in respect of the\\nshares.\\n[39/2017; 32/2019]\\nIncome Tax Act 1947\\n2020 Ed.\\n254\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(7) Where —\\n(a) gains or profits derived from the disposal of ordinary\\nshares by the divesting company is exempt from tax under\\nsubsection (1); and\\n(b) any write‑back for a diminution in the value of the shares,\\nor profit recognised in accordance with FRS 39, SFRS for\\nSmall Entities, FRS 109 or SFRS(I) 9 (as the case may be),\\nwhich is attributable to any of the shares, has been charged\\nto tax as income of the divesting company for any year of\\nassessment prior to the year of assessment relating to the\\nbasis period in which the shares are disposed of,\\nthen the write‑back or profit referred to in paragraph (b) is regarded as\\nan expense allowable under this Act to the divesting company for the\\nsecond‑mentioned year of assessment.\\n[39/2017; 32/2019]\\n(8) This section does not apply to —\\n(a) the disposal of shares the gains or profits of which are\\nincluded as part of the income of a company referred to in\\nsection 26;\\n(b) the disposal of shares before 1 June 2022 in a company\\nthat —\\n(i) is in the business of trading Singapore immovable\\nproperties; or\\n(ii) principally\\ncarries\\non\\nthe\\nactivity\\nof\\nholding\\nSingapore immovable properties,\\n(b) other than property development, where the shares are not\\nlisted on a stock exchange in Singapore or elsewhere;\\n(ba) the disposal of shares on or after 1 June 2022 not listed on a\\nstock exchange in Singapore or elsewhere, being shares in\\na company that the Comptroller is satisfied —\\n(i) is in the business of trading immovable properties\\nsituated whether in Singapore or elsewhere;\\nIncome Tax Act 1947\\n255\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(ii) principally\\ncarries\\non\\nthe\\nactivity\\nof\\nholding\\nimmovable\\nproperties\\nsituated\\nwhether\\nin\\nSingapore or elsewhere; or\\n(iii) has undertaken property development in Singapore\\nor elsewhere, except where —\\n(A) the immovable property developed is used by\\nthe company to carry on its trade or business\\n(including the business of letting immovable\\nproperties), not being a business mentioned in\\nsub‑paragraph (i); and\\n(B) the company did not undertake any property\\ndevelopment in Singapore or elsewhere for a\\nperiod of at least 60 consecutive months before\\nthe disposal of shares; or\\n(c) the disposal of shares by a partnership, limited partnership\\nor limited liability partnership one or more of the partners\\nof which is a company or are companies.\\n[41/2020]\\n(9) In this section —\\n“activity of holding immovable properties” excludes the holding\\nof immovable properties where such properties are used to\\ncarry on a trade or business, including the business of letting\\nimmovable properties;\\n“borrowing period” and “securities lending or repurchase\\narrangement” have the meanings given by section 10H(12);\\n“disposal”, in relation to shares, means the transfer of both the\\nlegal and beneficial interests in the shares to another;\\n“FRS 39” and “SFRS for Small Entities” have the meanings\\ngiven by section 34A(10);\\n“FRS 109” and “SFRS(I) 9” have the meanings given by\\nsection 34AA(15);\\n“property development” means construction or causing the\\nconstruction of any building or part of a building, and\\nIncome Tax Act 1947\\n2020 Ed.\\n256\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nacquisition of land or building for such construction, and for\\nthis purpose “construction” means —\\n(a) any building operations, or demolition and rebuilding\\noperations, in, on, over or under any land for the\\npurpose of erecting a building or part of a building;\\nand\\n(b) any alteration or addition to, or partial demolition and\\nrebuilding of, any building or part of a building,\\nthat requires the approval of the Commissioner of Building\\nControl under the Building Control Act 1989 or (if carried\\nout in a country outside of Singapore) would have required\\nsuch approval if it had been carried out in Singapore.\\n[13Z\\n[39/2017; 32/2019; 41/2020]\\nExemption of certain payments received in connection with\\nCOVID‑19 events\\n13X.—(1) The following are exempt from tax:\\n(a) a cash payment made on behalf of the Government to a\\nperson\\nunder\\nthe\\npublic\\nscheme\\nknown\\nas\\nthe\\nSelf‑Employed Person Income Relief Scheme (SIRS),\\nthat is part of the Budget Statements of the Government\\ndated 26 March 2020 and 6 April 2020;\\n(b) a cash payment made on behalf of the Government to a\\nperson under the public scheme known as the Jobs Support\\nScheme (JSS);\\n(c) a cash payment made by the Government to a person under\\nany of the following public schemes:\\n(i) Quarantine Order Allowance (QOA) Scheme;\\n(ii) Leave‑of‑Absence (LOA) Programme;\\n(iii) the Stay‑Home Notice (SHN) Support Programme;\\n(d) a cash payment made on behalf of the Government to an\\nindividual under the public scheme known as the\\nCOVID‑19 Support Grant (CSG), that is part of the\\nIncome Tax Act 1947\\n257\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nBudget Statement of the Government dated 26 March\\n2020, and the ministerial statement of the Minister dated\\n17 August 2020;\\n(e) a cash payment made by the Singapore Tourism Board\\nbetween (and including) the months of April and July 2020\\nto the holder of a tourist guide licence as defined in\\nsection 20(1) of the Singapore Tourism Board Act 1963, to\\nmitigate any loss of income from a COVID‑19 event;\\n(f) a cash payment made by the Maritime and Port Authority\\nof Singapore under the public scheme known as the\\nSeafarers Relief Package in the year 2020 to a seafarer as\\ndefined in section 2(1) of the Merchant Shipping\\n(Maritime Labour Convention) Act 2014, that is funded\\nby the Maritime and Port Authority of Singapore;\\n(g) a benefit received by a self‑employed individual who\\ndrives a chauffeured private hire car or taxi, from —\\n(i) the Land Transport Authority of Singapore (called in\\nthis paragraph and paragraph (ga) LTA); or\\n(ii) an entity in the Tenth Schedule,\\n(g) that is given in connection with an amount received by\\nLTA or the entity out of a payment made by the\\nGovernment to the Special Relief Fund under the public\\nscheme known as the Point‑to‑Point Support Package;\\n(ga) a benefit received by an individual who drives a\\nchauffeured private hire car or taxi, from —\\n(i) the LTA; or\\n(ii) an entity in the Tenth Schedule,\\n(ga) that is given on or after 1 January 2021 in connection with\\nan amount received by the LTA or the entity out of a\\npayment made by the Government from a fund established\\nby the Government known as the COVID‑19 Driver Relief\\nFund;\\nIncome Tax Act 1947\\n2020 Ed.\\n258\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(h) any other prescribed benefit given in connection with a\\nprescribed public scheme, up to such amount or value as\\nmay be prescribed.\\n[41/2020; 27/2021]\\n(2) Where a public authority makes a payment under a public\\nscheme on behalf of the Government to a person that is then paid to\\nanother person, the firstmentioned person does not, for the purposes\\nof subsection (1), make the second‑mentioned payment on behalf of\\nthe Government.\\nExample\\nThe Inland Revenue Authority of Singapore makes a cash payment under the Jobs\\nSupport Scheme on behalf of the Government to a central hirer of a central hiring\\narrangement of a group of related parties, which the central hirer disburses to the\\nrelated parties. The central hirer does not make the disbursement on behalf of the\\nGovernment under subsection (1)(b).\\n[41/2020]\\n[Act 33 of 2022 wef 04/11/2022]\\n(3) The following are also exempt from tax, but only if the\\nComptroller is satisfied that conditions prescribed for the exemption\\nare satisfied:\\n(a) the rent or value of any place of residence in Singapore\\n(including any furniture or fittings in that place), or an\\nallowance for accommodation in Singapore, for the use by\\nan individual in the year 2020, that is provided to the\\nindividual in the year 2020 by the individual’s employer,\\nup to the prescribed amount per day;\\n(b) the value of any food, transport and other necessities\\n(called in this paragraph basic necessities), or an allowance\\nfor basic necessities, for consumption or use by an\\nindividual in Singapore in the year 2020, that is provided\\nto the individual in the year 2020 by the individual’s\\nemployer, up to the prescribed amount per day for all basic\\nnecessities.\\n[41/2020]\\n(4) An amount described in subsection (5) received or receivable in\\nthe year 2020 by a person who is a lessee or licensee of any\\nIncome Tax Act 1947\\n259\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nimmovable property in relation to which a remission of property tax is\\ngiven by the Property Tax (Non‑Residential Properties) (Remission)\\nOrder 2020, is exempt from tax.\\n[41/2020]\\n(5) The amount mentioned in subsection (4) is any of the following,\\nas applicable:\\n(a) the amount in the form of monetary payments of any\\nbenefit\\n(as\\ndefined\\nin\\nthe\\nCOVID‑19\\n(Temporary\\nMeasures)\\n(Transfer\\nof\\nBenefit\\nof\\nProperty\\nTax\\nRemission)\\nRegulations\\n2020)\\nof\\nthe\\nreduction\\nin\\nproperty tax as a result of the remission that the owner\\nof the immovable property is required under section 29(2)\\nof the COVID‑19 (Temporary Measures) Act 2020 to pass\\non to the person in the year 2020;\\n(b) the amount in the form of monetary payments that the\\nowner of the immovable property has passed on or has\\nagreed to pass on to the person in the year 2020, and by\\nreason of which the owner is exempt from section 29(2) of\\nthe COVID‑19 (Temporary Measures) Act 2020 under\\nregulation 13(2) of the COVID‑19 (Temporary Measures)\\n(Transfer\\nof\\nBenefit\\nof\\nProperty\\nTax\\nRemission)\\nRegulations 2020;\\n(c) the amount of any other monetary payments received or\\nreceivable by the person from the person’s lessor or\\nlicensor in the year 2020, but only if the Comptroller is\\nsatisfied that the payments are intended by the lessor or\\nlicensor to provide relief to the person from any economic\\nhardship arising from a COVID‑19 event;\\n(d) the total of the amounts in paragraphs (a), (b) and (c).\\n[41/2020]\\n(5A) The amount of any monetary payment received or receivable\\nby a person who is a lessee or licensee of any prescribed property\\nfrom the person’s lessor or licensor in the year 2021 is exempt from\\ntax, if —\\n(a) the payment is made pursuant to an undertaking given by\\nthe lessor or licensor to his, her or its lessor or licensor, to\\nIncome Tax Act 1947\\n2020 Ed.\\n260\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nprovide relief to the person from any economic hardship\\narising from a COVID‑19 event; or\\n(b) the Comptroller is satisfied that the monetary payment is\\nintended by the lessor or licensor to provide relief to the\\nperson from any economic hardship arising from a\\nCOVID‑19 event.\\n[27/2021]\\n(5B) Rules made for the purposes of subsection (5A) may be made\\nto take effect from (and including) 16 November 2021.\\n[27/2021]\\n(6) In this section —\\n“chauffeured private hire car” has the meaning given to that term\\nby section 14ZA(8);\\n“COVID‑19”\\nmeans\\nthe\\ninfectious\\ndisease\\nknown\\nas\\nCoronavirus Disease 2019;\\n“COVID‑19 event” means —\\n(a) the COVID‑19 epidemic or pandemic; or\\n(b) the operation of or compliance with any law of\\nSingapore,\\nor\\nan\\norder\\nor\\ndirection\\nof\\nthe\\nGovernment or any statutory body, being any law,\\norder or direction that is made by reason of or in\\nconnection with COVID‑19;\\n“monetary payment” includes payment by e‑money as defined\\nin section 2(1) of the Payment Services Act 2019;\\n“owner”, in relation to immovable property, has the meaning\\ngiven by section 2(1) of the Property Tax Act 1960 and\\nincludes a person that is deemed to be an owner of the\\nproperty under any provision of that Act;\\n“prescribed” means prescribed by rules made under section 7;\\n“prescribed property” means any non‑residential property, or\\nany property belonging to a class of non‑residential\\nproperties, that is prescribed as a prescribed property for\\nIncome Tax Act 1947\\n261\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthe purposes of subsection (5A), and includes any part of\\nsuch property.\\n[13ZA\\n[41/2020; 27/2021]\\nPART 5\\nDEDUCTIONS AGAINST INCOME\\nDeductions allowed\\n14.—(1) For the purpose of ascertaining the income of any person\\nfor any period from any source chargeable with tax under this Act\\n(called in this Part the income), there are to be deducted all outgoings\\nand expenses wholly and exclusively incurred during that period by\\nthat person in the production of the income, including —\\n(a) except as provided in this section —\\n(i) any sum payable by way of interest; and\\n(ii) any sum payable in lieu of interest or for the\\nreduction\\nthereof,\\nas\\nmay\\nbe\\nprescribed\\nby\\nregulations\\n(including\\nthe\\nrestriction\\nof\\nthe\\ndeduction\\nof\\nthe\\nsum\\nin\\nrespect\\nof\\nmoney\\nborrowed before the basis period relating to the\\nyear of assessment 2008),\\n(a) upon any money borrowed by that person where the\\nComptroller is satisfied that such sum is payable on capital\\nemployed in acquiring the income;\\n(b) rent payable by any person in respect of any land or\\nbuilding or part thereof occupied by the person for the\\npurpose of acquiring the income;\\n(c) any expenses incurred for repair of premises, plant,\\nmachinery or fixtures employed in acquiring the income\\nor for the renewal, repair or alteration of any implement,\\nutensil or article so employed:\\nProvided that no deduction may be made for the cost of\\nrenewal of any plant, machinery or fixture, which is the\\nIncome Tax Act 1947\\n2020 Ed.\\n262\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nsubject of an allowance under section 19 or 19A; or for the\\ncost of reconstruction or rebuilding of any premises,\\nbuildings, structures or works of a permanent nature;\\n(d) bad debts incurred in any trade, business, profession or\\nvocation, which have become bad during the period for\\nwhich the income is being ascertained, and doubtful debts\\nto the extent that they are respectively estimated, to the\\nComptroller’s satisfaction, to have become bad during that\\nperiod, even if those bad or doubtful debts were due and\\npayable before the commencement of that period:\\nProvided that —\\n(i) all sums recovered during that period on account of\\namounts previously written off or allowed in respect\\nof bad or doubtful debts, other than debts incurred\\nbefore the commencement of the basis period for the\\nfirst year of assessment under this Act, are for the\\npurposes of this Act treated as receipts of the trade,\\nbusiness, profession or vocation for that period;\\n(ii) the debts in respect of which a deduction is claimed\\nwere included as a trading receipt in the income of\\nthe year within which they were incurred;\\n(e) any sum contributed by an employer to an approved\\npension or provident fund or society or any pension or\\nprovident fund constituted outside Singapore in respect of\\nany of the employer’s employees engaged in activities\\nrelating to the production of the income of the employer,\\nthe contribution of which sum by the employer was\\nobligatory by reason of any contract of employment or of\\nany provision in the rules or constitution of the fund or\\nsociety:\\nProvided that in the case of any contribution to the\\nCentral Provident Fund or any approved pension or\\nprovident\\nfund\\ndesignated\\nby\\nthe\\nMinister\\nunder\\nsection 39(8) —\\nIncome Tax Act 1947\\n263\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(i) a deduction in respect of any such contribution by an\\nemployer in respect of an employee for any period —\\n(A) commencing on or after 1 September 2010\\nmust not exceed 15%;\\n(B) commencing on or after 1 March 2011 must not\\nexceed 15½%;\\n(C) commencing on or after 1 September 2011\\nmust not exceed 16%;\\n(D) commencing on or after 1 January 2015 must\\nnot exceed 17%,\\n(i) of the remuneration paid by the employer to the\\nemployee for that period, and “remuneration” in this\\nproviso\\nmeans\\nthat\\npart\\nof\\nan\\nemployee’s\\nemoluments by reference to which his or her\\nemployer’s contributions are calculated;\\n(ii) where any such fund or society is first established\\nand a special contribution is made thereto by the\\nemployer\\nwhereby\\npersons\\nin\\nthe\\nemployer’s\\nemployment whose employment commenced prior\\nto the establishment of the fund or society may\\nqualify for the benefits thereunder in respect of such\\nprior employment, the Comptroller may, when\\napproving the fund or society, authorise such\\ndeductions in respect of that special contribution as\\nthe Comptroller thinks fit;\\n(iii) no deduction is allowed in respect of any sum\\ncontributed by an employer for the period on or after\\n1 January 1999 to the Central Provident Fund in\\nrespect of an employee who holds a professional visit\\npass or a work pass or who would be required to\\nobtain such a pass if the employee were to work in\\nSingapore:\\nAnd provided that no deduction is allowed in respect of\\nany contribution or part thereof to a pension or provident\\nfund constituted outside Singapore made in respect of an\\nIncome Tax Act 1947\\n2020 Ed.\\n264\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nemployee, if the employee has been exempted from tax on\\nsuch contribution or part thereof under section 13K;\\n(f) [Deleted by Act 32 of 2019]\\n(fa) [Deleted by Act 32 of 2019]\\n(fb) any sum contributed by an employer in 2013 or any\\nsubsequent year to the medisave account maintained under\\nthe Central Provident Fund Act 1953 in respect of any of\\nthe employer’s employees engaged in activities relating to\\nthe production of the income of the employer, up to a\\nmaximum deduction for\\neach employee’s medisave\\naccount, of —\\n(i) $1,500 per year (for contributions made before\\n2018); or\\n(ii) $2,730 per year (for contributions made in 2018 and\\nin each subsequent year),\\n(fb) less any previous contribution that is made to the same\\nmedisave account in the same year by the employer in the\\nemployer’s capacity as a person of a prescribed description\\nunder paragraph (fc) (if applicable), and that is deductible\\nunder that provision:\\nProvided that no deduction is allowed in respect of any\\nsum contributed by an employer to the medisave account\\nmaintained under the Central Provident Fund Act 1953 in\\nrespect of an employee who holds a professional visit pass\\nor a work pass or who would be required to obtain such a\\npass if the employee were to work in Singapore;\\n(fc) any voluntary contribution in cash made in 2013 or any\\nsubsequent year by a person of a description prescribed by\\nthe Minister for the purposes of this paragraph, to the\\nmedisave\\naccount\\nof\\na\\nself‑employed\\nindividual\\nmaintained under the Central Provident Fund Act 1953,\\nup to a maximum deduction for each individual’s medisave\\naccount, of —\\nIncome Tax Act 1947\\n265\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(i) $1,500 per year (for contributions made before\\n2018); or\\n(ii) $2,730 per year (for contributions made in 2018 and\\nin each subsequent year),\\n(fc) less any previous contribution that is made to the same\\nmedisave account in the same year by the person of the\\nprescribed description in the person’s capacity as an\\nemployer under paragraph (fb) (if applicable), and that is\\ndeductible under that provision;\\n(g) zakat, fitrah or any religious dues, payment of which is\\nmade under any written law; and\\n(h) where the income is derived from the working of a mine or\\nother source of mineral deposits of a wasting nature, such\\ndeductions in respect of capital expenditure as may be\\nprescribed in rules made under section 7.\\n[37/2014; 39/2017; 32/2019]\\n(1A) [Deleted by Act 32 of 2019]\\n(2) Despite subsection (1), payments made by way of compensation\\nfor injuries or death, salaries, wages or similar emoluments or death\\ngratuities to an employee (or his or her legal representative) who is\\nthe husband, wife or child of —\\n(a) any employer;\\n(b) any partner of the firm in which that employee is\\nemployed;\\n(c) any individual who by himself or herself or with his or her\\nspouse or child or all of them have the ability to control,\\ndirectly or indirectly, the company in which that employee\\nis employed; or\\n(d) any individual whose spouse or child or all of them have\\nthe ability to control, directly or indirectly, the company in\\nwhich that employee is employed,\\nare allowed as deductions only to the extent to which, in the\\nComptroller’s opinion, they are reasonable in amount having regard\\nto the services performed by that employee.\\nIncome Tax Act 1947\\n2020 Ed.\\n266\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(3) Despite subsection (1), where outgoings and expenses falling\\nwithin that subsection are incurred, whether directly or in the form of\\nreimbursements, in respect of a motor car (whether or not owned by\\nthe person incurring the outgoings and expenses) to which this\\nsubsection applies, the sum to be allowed as a deduction is limited to\\nthe amount which bears to such outgoings and expenses the same\\nproportion as $35,000 bears to the capital expenditure incurred by the\\nowner in respect of the motor car, where such capital expenditure\\nexceeds $35,000.\\n(3A) Any deduction for the cost of renewal of a motor car to which\\nsubsection (3) applies must not exceed $35,000.\\n(4) Subsections (3) and (3A) apply to a motor car which is\\nconstructed or adapted for the carriage of not more than 7 passengers\\nexclusive of the driver and the weight of which unladen does not\\nexceed 3,000 kilograms, and which was registered before 1 April\\n1998 as a business service passenger vehicle for the purposes of the\\nRoad Traffic Act 1961, but excludes such a motor car which is —\\n(a) used principally for instructional purposes; and\\n(b) acquired by a person who carries on the business of\\nproviding driving instruction and who holds a driving\\nschool licence or driving instructor’s licence issued under\\nthat Act.\\n(5) Despite subsection (1), where, in the basis period for any year of\\nassessment, any employer (other than an employer who derives any\\nincome from any trade, business, profession or vocation which is\\nwholly or partly exempt from tax or subject to tax at a concessionary\\nrate of tax under this Act or the Economic Expansion Incentives\\n(Relief from Income Tax) Act 1967) incurs medical expenses falling\\nwithin that subsection in excess of the maximum allowable amount in\\nthat basis period, the amount of the excess medical expenses is not\\nallowed as deductions.\\n(6) Where, in the basis period for any year of assessment, any\\nemployer derives any income from any trade, business, profession or\\nvocation which is wholly or partly exempt from tax or subject to tax at\\na concessionary rate of tax under this Act or the Economic Expansion\\nIncentives (Relief from Income Tax) Act 1967 and incurs medical\\nIncome Tax Act 1947\\n267\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nexpenses in excess of the maximum allowable amount in that basis\\nperiod, an amount equal to the excess medical expenses is deemed to\\nbe income of the employer chargeable to tax at the rate of tax under\\nsection 42(1) or 43(1) (as the case may be) for that year of\\nassessment.\\n(6A) For the purpose of subsections (5) and (6), the maximum\\nallowable amount in the basis period for any year of assessment is —\\n(a) 2% of the total remuneration of the employer’s employees\\nin that basis period in a case where the employer has —\\n(i) contributed the specified amount into the medisave\\naccounts maintained under the Central Provident\\nFund of —\\n(A) at least 20% of the number of local employees\\nwho are employed by the employer as at the\\nfirst day of the basis period for that year of\\nassessment, for every calendar month in that\\nbasis\\nperiod\\nthey\\nare\\nemployed\\nby\\nthe\\nemployer; and\\n(B) every local employee who commences his or\\nher employment with the employer during the\\nbasis period for that year of assessment, for the\\ncalendar month the employee commences his\\nor her employment and every subsequent\\ncalendar month in that basis period he or she\\nis employed by the employer; or\\n(ii) incurred expenses in or in connection with the\\nprovision of a specified insurance plan to cover,\\nfor every calendar month in the basis period for that\\nyear of assessment, the cost of medical treatment of\\nat least 50% of the number of local employees who\\nare employed by the employer as at the first day of\\nthat basis period; and\\n(b) in any other case, the amount determined in accordance\\nwith the formula in subsection (6B).\\nIncome Tax Act 1947\\n2020 Ed.\\n268\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(6B) For the purpose of subsection (6A)(b), the maximum\\nallowable amount in any basis period is to be ascertained —\\n(a) where the total amount of expenses incurred by the\\nemployer in providing qualifying insurance in that basis\\nperiod is nil, in accordance with the formula\\nA þ B;\\nwhere A is the lower of —\\n(i) the total amount of medical expenses incurred by\\nthe employer for the employer’s employees in\\nthat basis period (excluding the total amount of\\ngeneral contributions made by the employer); and\\n(ii) 1% of the total remuneration of the employer’s\\nemployees in that basis period; and\\nB is the lower of —\\n(i) the total amount of general contributions made by\\nthe employer in that basis period; and\\n(ii) the\\ndifference\\nbetween\\n2%\\nof\\nthe\\ntotal\\nremuneration of the employer’s employees in\\nthat basis period and A; and\\n(b) where the total amount of expenses incurred by the\\nemployer in providing qualifying insurance in that basis\\nperiod is not nil, in accordance with the formula\\nC þ D;\\nwhere C is the lower of —\\n(i) the total amount of expenses incurred by the\\nemployer in providing riders for the employer’s\\nemployees in that basis period; and\\n(ii) 1% of the total remuneration of the employer’s\\nemployees in that basis period; and\\nD is the lower of —\\nIncome Tax Act 1947\\n269\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(i) the total amount of medical expenses incurred by\\nthe employer for the employer’s employees in\\nthat basis period (excluding the total amount of\\nexpenses incurred by the employer in providing\\nriders for the employer’s employees); and\\n(ii) the\\ndifference\\nbetween\\n2%\\nof\\nthe\\ntotal\\nremuneration of the employer’s employees in\\nthat basis period and C.\\n(6C) For the purpose of subsection (6B), a reference to expenses\\nincurred by an employer in providing qualifying insurance excludes\\nany reimbursement in cash by the employer of the employee for\\npayment by the employee of premiums on such qualifying insurance.\\n(7) The references to medical expenses in subsections (5), (6) and\\n(6B) are references to medical expenses which would, but for\\nsubsection (5), be allowable as deductions under this Act.\\n(8) In this section —\\n“co‑payment” means the part of the amount of any claim, after\\ndeducting the deductible, which a person insured under the\\nMediShield Life Scheme or an integrated medical insurance\\nplan has to bear under the Scheme or plan;\\n“deductible” means the amount of any claim which a person\\ninsured under the MediShield Life Scheme or an integrated\\nmedical insurance plan has to bear before the insurer\\nbecomes liable to make payment under the Scheme or plan;\\n“general contribution” means any contribution falling within\\nsubsection (1)(fb) which is not —\\n(a) a contribution falling within subsection (6A)(a)(i); or\\n(b) a sum paid by an employer to the medisave account\\nmaintained\\nunder\\nthe\\nCentral\\nProvident\\nFund\\nAct 1953 in respect of any of the employer’s\\nemployees as reimbursement of the employee for\\npremiums paid or payable by the employee on a\\nqualifying insurance;\\nIncome Tax Act 1947\\n2020 Ed.\\n270\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“gross rate of pay” has the meaning given by section 2 of the\\nEmployment Act 1968;\\n“integrated medical insurance plan” has the same meaning as in\\nthe\\nregulations\\nmade\\nunder\\nsection\\n34(2)(j)\\nof\\nthe\\nMediShield Life Scheme Act 2015 or section 77(1)(k) of\\nthe Central Provident Fund Act 1953;\\n“local employee” means a full‑time or part‑time employee who\\nis a citizen or permanent resident of Singapore;\\n“medical expenses” means expenses incurred in or in connection\\nwith the provision of medical treatment and includes —\\n(a) expenses incurred in or in connection with the\\nprovision of maternity health care, natal care, and\\npreventive and therapeutic treatment;\\n(b) expenses incurred in or in connection with the\\nprovision of a medical clinic by the employer;\\n(c) cash allowance in lieu of medical expenses;\\n(d) expenses incurred in or in connection with the\\nprovision of insurance against the cost of medical\\ntreatment; and\\n(e) contributions\\nwhich\\nare\\ndeductible\\nunder\\nsubsection (1)(fb);\\n“medical treatment” includes all forms of treatment for, and\\nprocedures for diagnosing, any physical or mental ailment,\\ninfirmity or defect;\\n“MediShield Life Scheme” means the MediShield Life Scheme\\nreferred to in section 3 of the MediShield Life Scheme\\nAct 2015 and includes the MediShield Scheme established\\nand maintained under section 53 of the Central Provident\\nFund Act 1953 as in force immediately before 1 November\\n2015;\\n“part‑time employee” has the meaning given by section 66A of\\nthe Employment Act 1968;\\nIncome Tax Act 1947\\n271\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“qualifying insurance”, in relation to any basis period of an\\nemployer, means medical insurance under the MediShield\\nLife Scheme or an integrated medical insurance plan that is\\nprovided by an employer to employees to cover the cost of\\nmedical treatment of —\\n(a) at least 20% of the number of local employees who\\nare employed by the employer as at the first day of\\nthe basis period; and\\n(b) every local employee who commences his or her\\nemployment with the employer during the basis\\nperiod,\\nfor every calendar month or part thereof in the basis period\\nthat the employees are employed by the employer;\\n“remuneration” means any wage, salary, leave pay, fee,\\ncommission, bonus, gratuity, allowance, other emoluments\\npaid in cash by or on behalf of an employer and contributions\\nto any approved pension or provident fund by any employer\\nwhich are allowable as deductions under this Act, but does\\nnot include any director’s fee, medical expense, cash\\nallowance in lieu of medical expenses and benefit‑in‑kind;\\n“rider” means any insurance under which the insurer of the rider\\nis liable to pay in full or in part the deductible or co‑payment\\nrelating to the MediShield Life Scheme or an integrated\\nmedical insurance plan;\\n“specified amount”, in relation to any calendar month, means —\\n(a) in the case of a full‑time employee who falls under\\nsubsection (6A)(a)(i), an amount equal to at least 1%\\nof the employee’s gross rate of pay for the calendar\\nmonth, subject to a minimum contribution of $16 per\\ncalendar month;\\n(b) in the case of a part‑time employee who falls under\\nsubsection (6A)(a)(i), an amount equal to at least\\n1% of the employee’s gross rate of pay for the\\ncalendar month;\\nIncome Tax Act 1947\\n2020 Ed.\\n272\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“specified insurance plan” means a medical insurance plan\\nsponsored by an employer that —\\n(a) confers hospitalisation benefits during the period of\\nemployment of an employee and up to a period of\\n12 months immediately after the employee leaves his\\nor her employment for any reason; and\\n(b) treats the employee as being continuously insured\\nwhen he or she is employed by another employer who\\nprovides him or her with an insurance plan that\\nconfers the hospitalisation benefits described in\\nparagraph (a).\\n[4/2015; 34/2016; 32/2019]\\nDeduction for costs for protecting intellectual property\\n14A.—(1) Subject to this section, where a person carrying on a\\ntrade or business has incurred —\\n(a) patenting costs during the period from 1 June 2003 to the\\nlast day of the basis period for the year of assessment 2010\\n(both dates inclusive); or\\n(b) qualifying intellectual property registration costs during\\nthe basis period for any year of assessment between the\\nyear of assessment 2011 and the year of assessment 2028\\n(both years inclusive),\\nfor the purposes of that trade or business, there is allowed to the\\nperson a deduction of the amount of such costs.\\n[37/2014; 45/2018]\\n[Act 30 of 2023 wef 30/10/2023]\\n(1A) Subject to this section, for the purpose of ascertaining the\\nincome of a person carrying on a trade or business during the basis\\nperiod\\nfor\\nthe\\nyear\\nof\\nassessment\\n2011\\nor\\nthe\\nyear\\nof\\nassessment 2012, there is allowed in respect of all of the person’s\\ntrades and businesses, in addition to the deduction allowed under\\nsubsection (1), a deduction for qualifying intellectual property\\nregistration costs incurred for the purposes of those trades and\\nbusinesses, computed in accordance with the formula\\nIncome Tax Act 1947\\n273\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nA \\u0003 300%;\\nwhere A is —\\n(a) for the year of assessment 2011, the lower of the following:\\n(i) such costs incurred during the basis period for that\\nyear of assessment;\\n(ii) $800,000; and\\n(b) for the year of assessment 2012, the lower of the following:\\n(i) such costs incurred during the basis period for that\\nyear of assessment;\\n(ii) the balance after deducting from $800,000 the lower\\nof the amounts specified in paragraph (a)(i) and (ii).\\n(1B) Subject to this section and section 37J, for the purpose of\\nascertaining the income of a person carrying on a trade or business\\nduring the basis period for the year of assessment 2013, the year of\\nassessment 2014 or the year of assessment 2015, there is allowed in\\nrespect of all of the person’s trades and businesses, in addition to the\\ndeduction allowed under subsection (1), a deduction for qualifying\\nintellectual property registration costs incurred for the purposes of\\nthose trades and businesses, computed in accordance with the\\nformula\\nA \\u0003 300%;\\nwhere A is —\\n(a) for the year of assessment 2013, the lower of the following:\\n(i) such costs incurred during the basis period for that\\nyear of assessment;\\n(ii) $1,200,000;\\n(b) for the year of assessment 2014, the lower of the following:\\n(i) such costs incurred during the basis period for that\\nyear of assessment;\\nIncome Tax Act 1947\\n2020 Ed.\\n274\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(ii) the balance after deducting from $1,200,000 the\\nlower of the amounts specified in paragraph (a)(i)\\nand (ii); and\\n(c) for the year of assessment 2015, the lower of the following:\\n(i) such costs incurred during the basis period for that\\nyear of assessment;\\n(ii) the balance after deducting from $1,200,000 the\\nlower of the amounts specified in paragraph (a)(i)\\nand (ii), and the lower of the amounts specified in\\nparagraph (b)(i) and (ii).\\n[37/2014]\\n(1BA) Subject to this section and section 37J, for the purpose of\\nascertaining the income of a person carrying on a trade or business\\nduring the basis period for the year of assessment 2016, 2017 or 2018,\\nthere is allowed in respect of all of the person’s trades and businesses,\\nin addition to the deduction allowed under subsection (1), a deduction\\nfor qualifying intellectual property registration costs incurred for the\\npurposes of those trades and businesses, computed in accordance\\nwith the formula\\nA  \\u0003  300%;\\nwhere A is —\\n(a) for the year of assessment 2016, the lower of the following:\\n(i) such costs incurred during the basis period for that\\nyear of assessment;\\n(ii) $1,200,000;\\n(b) for the year of assessment 2017, the lower of the following:\\n(i) such costs incurred during the basis period for that\\nyear of assessment;\\n(ii) the balance after deducting from $1,200,000 the\\nlower of the amounts specified in paragraph (a)(i)\\nand (ii); and\\nIncome Tax Act 1947\\n275\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) for the year of assessment 2018, the lower of the following:\\n(i) such costs incurred during the basis period for that\\nyear of assessment;\\n(ii) the balance after deducting from $1,200,000 the\\nlower of the amounts specified in paragraph (a)(i)\\nand (ii), and the lower of the amounts specified in\\nparagraph (b)(i) and (ii).\\n[37/2014]\\n(1BB) Subject to this section, for the purpose of ascertaining the\\nincome of a person carrying on a trade or business during the basis\\nperiod\\nfor\\nany\\nyear\\nof\\nassessment\\nbetween\\nthe\\nyears\\nof\\nassessment 2019 and 2023 (both years inclusive), there is to be\\nallowed in respect of all of the person’s trades and businesses, in\\naddition to the deduction allowed under subsection (1), a deduction of\\nthe amount of qualifying intellectual property registration costs\\nincurred during the basis period for the purposes of those trades and\\nbusinesses, up to $100,000.\\n[45/2018]\\n[Act 30 of 2023 wef 30/10/2023]\\n(1BC) Subject to this section, for the purpose of ascertaining the\\nincome of a person carrying on a trade or business during the basis\\nperiod for any year of assessment between the years of assessment\\n2024 and 2028 (both years inclusive), there is allowed in respect of all\\nof the person’s trades and businesses, in addition to the deduction\\nallowed under subsection (1), a deduction for qualifying intellectual\\nproperty registration costs incurred during that basis period for the\\npurposes of those trades and businesses, computed in accordance\\nwith the formula\\nA \\u0003 300%;\\nwhere A is the lower of the following:\\n(a) the qualifying intellectual property registration costs\\nincurred during that basis period;\\n(b) $400,000.\\n[Act 30 of 2023 wef 30/10/2023]\\nIncome Tax Act 1947\\n2020 Ed.\\n276\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(1C) In subsection (1A), the amount under paragraph (a)(ii) is\\nsubstituted with “$400,000” if the person does not carry on any trade\\nor business during the basis period for the year of assessment 2012,\\nand the balance under paragraph (b)(ii) is substituted with\\n“$400,000” if the person does not carry on any trade or business\\nduring the basis period for the year of assessment 2011.\\n(1D) In subsection (1B) —\\n(a) if the person does not carry on any trade or business during\\nthe basis period for any one year of assessment between the\\nyear of assessment 2013 and the year of assessment 2015\\n(both years inclusive), the references to “$1,200,000” in\\nthe paragraphs of that subsection applicable to the other\\n2\\nyears\\nof\\nassessment\\nare\\neach\\nsubstituted\\nwith\\n“$800,000”;\\n(b) if the person does not carry on any trade or business during\\nthe basis periods for any 2 years of assessment between the\\nyear of assessment 2013 and the year of assessment 2015\\n(both years inclusive), the reference to “$1,200,000” in the\\nparagraph of that subsection applicable to the remaining\\nyear of assessment is substituted with “$400,000”; and\\n(c) to avoid doubt, no deduction may be made from the\\nsubstituted amount in subsection (1B)(b)(ii) or (c)(ii) of the\\nlower of the amounts specified in subsection (1B)(a)(i) and\\n(ii) if the person does not carry on any trade or business\\nduring the basis period for the year of assessment 2013,\\nand no deduction may be made from the substituted\\namount in subsection (1B)(c)(ii) of the lower of the\\namounts specified in subsection (1B)(b)(i) and (ii) if the\\nperson does not carry on any trade or business during the\\nbasis period for the year of assessment 2014.\\n(1DA) In subsection (1BA) —\\n(a) if the person does not carry on any trade or business during\\nthe basis period for any one year of assessment between the\\nyears of assessment 2016 and 2018 (both years inclusive),\\nthe references to “$1,200,000” in the paragraphs of that\\nIncome Tax Act 1947\\n277\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nsubsection applicable to the other 2 years of assessment are\\neach substituted with “$800,000”;\\n(b) if the person does not carry on any trade or business during\\nthe basis periods for any 2 years of assessment between the\\nyears of assessment 2016 and 2018 (both years inclusive),\\nthe reference to “$1,200,000” in the paragraph of that\\nsubsection applicable to the remaining year of assessment\\nis substituted with “$400,000”; and\\n(c) to avoid doubt, no deduction may be made from the\\nsubstituted amount in subsection (1BA)(b)(ii) or (c)(ii) of\\nthe\\nlower\\nof\\nthe\\namounts\\nspecified\\nin\\nsubsection (1BA)(a)(i) and (ii) if the person does not\\ncarry on any trade or business during the basis period for\\nthe year of assessment 2016, and no deduction may be\\nmade\\nfrom\\nthe\\nsubstituted\\namount\\nin\\nsubsection (1BA)(c)(ii) of the lower of the amounts\\nspecified in subsection (1BA)(b)(i) and (ii) if the person\\ndoes not carry on any trade or business during the basis\\nperiod for the year of assessment 2017.\\n[37/2014]\\n(1E) For the purposes of subsections (1A), (1B), (1BA), (1BB) and\\n(1BC), where an individual carrying on a trade or business\\nthrough 2 or more firms (excluding partnerships) has, during the\\nbasis period for any year of assessment between the years of\\nassessment 2011 and 2028 (both years inclusive), incurred qualifying\\nintellectual property registration costs in respect of such firms for the\\npurposes of the individual’s trade or business, the deduction that may\\nbe allowed to the individual for those costs in respect of all of the\\nindividual’s trades and businesses must not exceed the amount\\ncomputed in accordance with subsection (1A), (1B), (1BA), (1BB) or\\n(1BC) (as the case may be) for that year of assessment.\\n[45/2018]\\n[Act 30 of 2023 wef 30/10/2023]\\n(1F) For the purposes of subsections (1A), (1B), (1BA), (1BB) and\\n(1BC), where a partnership carrying on a trade or business has, during\\nthe basis period for any year of assessment between the years of\\nassessment 2011 and 2028 (both years inclusive), incurred qualifying\\nIncome Tax Act 1947\\n2020 Ed.\\n278\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nintellectual property registration costs for the purposes of the\\npartnership’s trade or business, the aggregate of the deductions that\\nmay be allowed to all the partners of the partnership for those costs in\\nrespect of all of the trades and businesses of the partnership must not\\nexceed the amount computed in accordance with subsection (1A),\\n(1B), (1BA), (1BB) or (1BC) (as the case may be) for that year of\\nassessment.\\n[45/2018]\\n[Act 30 of 2023 wef 30/10/2023]\\n(2) The claim for deduction under subsection (1), (1A), (1B),\\n(1BA), (1BB) or (1BC) is allowed to a person only if —\\n(a) there is an undertaking by the person that the person would\\nbe the proprietor of the patent or registered trade mark, the\\nregistered owner of the registered design or the grantee of\\nthe plant variety (as the case may be) when the patent is\\ngranted, the trade mark or design is registered or the plant\\nvariety is granted protection; and\\n(b) the claim is made by the person in such manner and subject\\nto such conditions as the Comptroller may require.\\n[37/2014; 45/2018]\\n[Act 30 of 2023 wef 30/10/2023]\\n(3) For the purposes of this section, any patenting costs or\\nqualifying intellectual property registration costs (as the case may\\nbe) incurred by a person prior to the commencement of that person’s\\ntrade or business are deemed to have been incurred by that person on\\nthe first day that person carries on that trade or business but a\\ndeduction for these is subject to section 14X.\\n[34/2016]\\n(4) Where a person to whom a deduction for patenting costs or\\nqualifying intellectual property registration costs (as the case may be)\\nhas been allowed under subsection (1) sells, transfers or assigns in the\\nbasis period for any year of assessment all or any part of the rights for\\nwhich such patenting costs or qualifying intellectual property\\nregistration costs (as the case may be) were incurred, the person is\\ndeemed to have derived an amount of income for that year of\\nassessment equal to the price at which the rights were sold,\\nIncome Tax Act 1947\\n279\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\ntransferred or assigned or the deduction which has been allowed\\nunder subsection (1), whichever is less.\\n(5) For the purposes of subsection (4), where there is more than one\\nsale, transfer or assignment of any part of the rights for which such\\npatenting costs or qualifying intellectual property registration costs\\n(as the case may be) were incurred, the total amount deemed as\\nincome must not exceed the total amount of deduction previously\\nallowed under subsection (1).\\n(5A) Where —\\n(a) a deduction\\nhas been made to any person\\nunder\\nsubsection (1A), (1B), (1BA), (1BB) or (1BC) in respect\\nof any qualifying intellectual property registration costs;\\nand\\n[Act 30 of 2023 wef 30/10/2023]\\n(b) the person sells, transfers or assigns all or any part of the\\nqualifying intellectual property rights or the application for\\nthe registration or grant of the qualifying intellectual\\nproperty rights for which such costs were incurred, within\\na period of one year from the date of filing of the\\napplication,\\nthe deduction allowed under subsection (1A), (1B), (1BA), (1BB) or\\n(1BC) (as the case may be) is deemed as income of the person for the\\nyear of assessment relating to the basis period in which the sale,\\ntransfer or assignment occurs.\\n[37/2014; 45/2018]\\n[Act 30 of 2023 wef 30/10/2023]\\n(6) In this section —\\n“patenting costs” means the fees paid to —\\n(a) the Registry of Patents in Singapore or an equivalent\\nregistry outside Singapore for the —\\n(i) filing of a patent;\\n(ii) search\\nand\\nexamination\\nreport\\non\\nthe\\napplication for a patent; or\\n(iii) grant of a patent; and\\nIncome Tax Act 1947\\n2020 Ed.\\n280\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) any registered patent agent for —\\n(i) applying for any patent in Singapore or\\nelsewhere;\\n(ii) preparing specifications or other documents for\\nthe purposes of the Patents Act 1994 or the\\npatents law of any other country; or\\n(iii) giving advice on the validity or infringement of\\nthe patent;\\n“qualifying intellectual property registration costs” means the\\nfees paid to —\\n(a) the Registry of Patents, Registry of Trade Marks,\\nRegistry of Designs or Registry of Plant Varieties in\\nSingapore\\nor\\nan\\nequivalent\\nregistry\\noutside\\nSingapore for the —\\n(i) filing of an application for a patent, for the\\nregistration of a trade mark or design, or for the\\ngrant of protection of a plant variety;\\n(ii) search\\nand\\nexamination\\nreport\\non\\nthe\\napplication for a patent;\\n(iii) examination report on the application for grant\\nof protection of a plant variety; or\\n(iv) grant of a patent; and\\n(b) any person acting as an agent for —\\n(i) applying for any patent, for the registration of a\\ntrade mark or design, or for the grant of\\nprotection of a plant variety, in Singapore or\\nelsewhere;\\n(ii) preparing specifications or other documents for\\nthe purposes of the Patents Act 1994, the Trade\\nMarks Act 1998, the Registered Designs\\nAct\\n2000,\\nthe\\nPlant\\nVarieties\\nProtection\\nAct 2004 or the intellectual property law of\\nIncome Tax Act 1947\\n281\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nany other country relating to patents, trade\\nmarks, designs or plant varieties; or\\n(iii) giving advice on the validity or infringement of\\nany patent, registered trade mark, registered\\ndesign or grant of protection of a plant variety;\\n“qualifying intellectual property right” means the right to do or\\nauthorise the doing of anything which would, but for that\\nright, be an infringement of any patent, registered trade mark\\nor design, or grant of protection of a plant variety;\\n“registered patent agent” has the meaning given by the Patents\\nAct 1994.\\n(7) In this section, “patenting costs” and “qualifying intellectual\\nproperty registration costs” exclude any expenditure to the extent that\\nit is or is to be subsidised by grants or subsidies from the Government\\nor a statutory board.\\nFurther deduction for expenses relating to approved trade\\nfairs, exhibitions or trade missions, maintenance of overseas\\ntrade office, or electronic commerce\\n14B.—(1) Subject to this section, where the Comptroller is satisfied\\nthat the expenses specified in subsection (2) have been incurred by an\\napproved firm or company resident in or having a permanent\\nestablishment in Singapore for the primary purpose of —\\n(a) promoting the trading of goods or the provision of services;\\nor\\n(b) the provision of services in connection with the use of any\\nright under a master franchise or master intellectual\\nproperty licence where the firm or company is the holder\\nof the franchise or licence,\\nthere is allowed a further deduction of the amount of such expenses in\\naddition to the amount allowed under section 14.\\n(2) The expenses referred to in subsection (1) are —\\n(a) expenses\\nin\\nestablishing,\\nmaintaining\\nor\\notherwise\\nparticipating in —\\nIncome Tax Act 1947\\n2020 Ed.\\n282\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(i) a trade fair, trade exhibition, trade mission or trade\\npromotion\\nactivity\\nheld\\nor\\nconducted\\noutside\\nSingapore; or\\n(ii) an approved trade fair or trade exhibition held in\\nSingapore;\\n(aa) any of the following expenses incurred on or after 1 April\\n2020 that are approved for the firm or company:\\n(i) expenses to secure a spot to speak at a trade mission\\nor\\ntrade\\npromotion\\nactivity\\nmentioned\\nin\\nparagraph (a)(i);\\n(ii) expenses for the transportation of any sample for use\\nat a trade mission or trade promotion activity\\nmentioned in paragraph (a)(i);\\n(iii) expenses to engage a consultant (not being a related\\nparty of the approved firm or company or an officer\\nor employee of such related party) to organise a\\nbusiness networking event during a trade mission or\\ntrade\\npromotion\\nactivity\\nmentioned\\nin\\nparagraph (a)(i);\\n(ab) expenses incurred on or after 17 February 2021 —\\n(i) in\\nestablishing,\\nmaintaining\\nor\\notherwise\\nparticipating in an approved trade fair or trade\\nexhibition held or conducted (whether wholly or\\npartly)\\nby\\nmeans\\nof\\nteleconference,\\nvideoconferencing or any other electronic means of\\ncommunications; or\\n(ii) for the transportation of any sample to any potential\\nclient outside of Singapore, following the potential\\nclient’s attendance at or participation in the approved\\ntrade fair or trade exhibition;\\n(ac) any of the following expenses incurred on or after\\n15 February 2023 that are approved for the firm or\\ncompany for the purposes of enabling the firm or company\\nIncome Tax Act 1947\\n283\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nto trade goods, or provide services to persons, in a foreign\\ncountry using an electronic marketplace:\\n(i) expenses incurred on the creation and maintenance\\nof an account with the electronic marketplace;\\n(ii) expenses incurred on the listing of the goods to be\\ntraded or services to be provided on the electronic\\nmarketplace;\\n(iii) expenses incurred for any promotion campaign using\\nthe electronic marketplace, including the design and\\ncreation\\nof\\nthe\\nmaterials\\nfor\\nthe\\npromotion\\ncampaign;\\n(iv) expenses incurred to engage a person (not being an\\nofficer or employee or a related party of the approved\\nfirm or company, or an officer or employee of such\\nrelated party) to provide advisory service to the firm\\nor company in connection with the use of the\\nelectronic marketplace;\\n[Act 30 of 2023 wef 15/02/2023]\\n(b) expenses in maintaining an approved overseas trade office;\\nor\\n(c) market development expenditure for the carrying out of\\nany approved marketing project.\\n[41/2020; 27/2021]\\n(2A) For\\nthe\\npurposes\\nof\\nsubsection\\n(1)\\nand\\nsubject\\nto\\nsubsection (2B), the firm or company need not be an approved\\nfirm or approved company to be allowed a deduction under\\nsubsection\\n(1)\\nin\\nrespect\\nof\\nexpenses\\nmentioned\\nin\\nsubsection (2)(a) that are incurred at any time between 1 April\\n2012 and 16 February 2021 (both dates inclusive) for the primary\\npurpose of promoting the trading of goods or the provision of\\nservices.\\n[45/2018; 41/2020; 27/2021]\\n(2AA) For\\nthe\\npurposes\\nof\\nsubsection\\n(1)\\nand\\nsubject\\nto\\nsubsection (2B), the firm or company need not be an approved\\nfirm or approved company to be allowed a deduction under\\nsubsection (1) in respect of any of the following expenses incurred\\nIncome Tax Act 1947\\n2020 Ed.\\n284\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nduring the period between 17 February 2021 and 31 December 2025\\n(both dates inclusive) for the primary purpose of promoting the\\ntrading of goods or the provision of services:\\n(a) such expenses in subsection (2)(a) as are prescribed by\\nrules made under section 7;\\n(b) such expenses in subsection (2)(ab) as are prescribed by\\nrules made under section 7.\\n[27/2021]\\n(2AB) Despite subsection (1) but subject to subsection (2B), where\\nthe Comptroller is satisfied that any expenses mentioned in\\nsubsection (2AC) have been incurred by a firm or company\\nresident in or having a permanent establishment in Singapore\\nduring the period between 17 February 2021 and 31 December\\n2025 (both dates inclusive) for the primary purpose of promoting the\\ntrading of goods or the provision of services, there is to be allowed a\\nfurther deduction of the amount of such expenses in addition to the\\namount allowed under section 14.\\n[27/2021]\\n(2AC) The expenses mentioned in subsection (2AB) are the\\nfollowing types of expenses that fall within descriptions prescribed\\nby rules made under section 7, to the extent that such expenses do not\\nfall within subsection (1):\\n(a) expenses incurred in the design of packaging;\\n(b) expenses incurred in obtaining any approved certification\\nof goods and services;\\n(c) expenses incurred in any advertisement placed in any\\nmedia or on any promotion campaign carried out overseas.\\n[27/2021]\\n(2AD) Rules made for the purposes of subsections (2AA) and\\n(2AC) may be made to take effect from (and including) 17 February\\n2021.\\n[27/2021]\\n(2B) The amount of the expenses for which the deduction may be\\nallowed under subsections (2A), (2AA) and (2AB) (whichever is\\napplicable), after adding the expenditure for which a deduction is\\nIncome Tax Act 1947\\n285\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nallowed to the firm or company under section 14H(1A), must not\\nexceed —\\n(a) for a year of assessment before the year of assessment\\n2019 — $100,000; or\\n(b) for the year of assessment 2019 or a subsequent year of\\nassessment — $150,000.\\n[45/2018; 27/2021]\\n(3) The Minister or an authorised body may specify the maximum\\namount of expenditure (or any item thereof) to be allowed under\\nsubsection (1), other than expenses that are the subject of a claim for\\ndeduction under subsections (2A), (2AA) and (2AB) (whichever is\\napplicable).\\n[27/2021]\\n[Act 41 of 2020 wef 12/04/2024]\\n(4) No deduction is allowed under this section in respect of —\\n(a) any expenses which are not allowed as deductions under\\nsection 14;\\n(b) travelling, accommodation and subsistence expenses or\\nallowances for —\\n(i) more than 2 employees taking part in the trade fair,\\ntrade exhibition, trade mission or trade promotion\\nactivity, being one held or conducted overseas; or\\n(ii) more than the approved number of employees taking\\npart in the approved marketing project;\\n(c) any expenses relating to an approved overseas trade\\noffice —\\n(i) which are incurred in the establishment of the\\napproved overseas trade office;\\n(ii) by way of remuneration, travelling, accommodation\\nand subsistence expenses or allowances for more\\nthan the approved number of employees of the\\napproved overseas trade office;\\nIncome Tax Act 1947\\n2020 Ed.\\n286\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(iii) which are specifically excluded as a condition for the\\napproval of the overseas trade office under this\\nsection;\\n(iv) which are incurred after the end of the approved\\nnumber of years from the date of establishment of the\\napproved overseas trade office; or\\n(v) which are incurred by a firm or company having a\\npermanent establishment subject to tax in the country\\nin which the approved trade office is established;\\n(d) any expenses incurred during the basis period for a year of\\nassessment by a firm or company if —\\n(i) any part of its income for that year of assessment is\\nexempt or partly exempt from tax under section 13A,\\n13E, 13P or 13S;\\n(ii) any part of its income for that year of assessment is\\nsubject to tax at a concessionary rate of tax under\\nsection 43C, 43D, 43E, 43G, 43I, 43J, 43L, 43P,\\n43Q, 43R, 43U, 43Vor 43X, or the regulations made\\nunder any of those sections; or\\n(iii) it is given tax relief under Part 2, 3 or 4 of the\\nEconomic\\nExpansion\\nIncentives\\n(Relief\\nfrom\\nIncome Tax) Act 1967 for that year of assessment,\\nor is given an investment allowance under Part 8 of\\nthat Act for that year of assessment; or\\n(e) any expenses to the extent they are or are to be subsidised\\nby a grant or subsidy from the Government or a statutory\\nboard.\\n[2/2016; 45/2018]\\n(4A) Despite subsection (4), the Minister or an authorised body\\nmay, in any particular case, subject to such conditions precedent and\\nconditions subsequent as the Minister or authorised body may\\nimpose, allow a deduction of any expenses referred to in\\nIncome Tax Act 1947\\n287\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nsubsection (4)(c)(v) provided that they are not also expenses referred\\nto in subsection (4)(c)(i), (ii), (iii) or (iv).\\n[2/2016]\\n[Act 41 of 2020 wef 12/04/2024]\\n(5) Despite subsection (4), the Minister or an authorised body may,\\nin any particular case, and subject to such conditions precedent and\\nconditions subsequent as the Minister or authorised body may\\nimpose, allow a deduction of any expenses referred to in\\nsubsection (4)(d).\\n[2/2016]\\n[Act 41 of 2020 wef 12/04/2024]\\n(6) If the firm or company fails to comply with a condition\\nsubsequent imposed under subsection (4A) or (5), the deduction\\nallowed to the firm or company under that subsection is treated as the\\nfirm’s or company’s income for the year of assessment in which the\\nComptroller discovers the non‑compliance.\\n[2/2016]\\n(7) In relation to a deduction under this section, a condition is a\\ncondition subsequent if or to the extent that it can only be satisfied\\nafter the deduction is allowed, and a condition is a condition\\nprecedent if or to the extent that it is not a condition subsequent; and\\naccordingly a condition may, depending on the circumstances, be\\neither a condition precedent or a condition subsequent.\\n[2/2016]\\n(8) [Deleted by Act 19 of 2013]\\n(9) [Deleted by Act 19 of 2013]\\n(10) Despite anything in this section, where it appears to the\\nComptroller that in any year of assessment any further deduction\\nwhich has been allowed under this section or section 14E ought not to\\nhave been so allowed, the Comptroller may, within the year of\\nassessment or within 4 years after the expiry of that year of\\nassessment, make such assessment or additional assessment upon the\\nfirm or company as may be necessary in order to make good any loss\\nof tax.\\n[41/2020]\\nIncome Tax Act 1947\\n2020 Ed.\\n288\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(11) In this section —\\n“approved” means approved by the Minister or an authorised\\nbody;\\n[Act 41 of 2020 wef 12/04/2024]\\n“electronic marketplace” means a medium that —\\n(a) allows a person to trade goods or provide services to\\nany other person by electronic means; and\\n(b) is operated by electronic means,\\nbut not any medium that is solely for processing any payment\\nfor any trading of goods or provision of services;\\n[Act 30 of 2023 wef 15/02/2023]\\n“foreign country” means any country outside Singapore;\\n[Act 30 of 2023 wef 15/02/2023]\\n“market development expenditure” means —\\n(a) approved\\nexpenses\\ndirectly\\nattributable\\nto\\nthe\\ncarrying out of market research or obtaining of\\nmarket information, including any feasibility study;\\n(b) expenses in respect of advertisements placed in\\napproved media;\\n(c) expenses\\nincurred\\non\\napproved\\npromotion\\ncampaigns;\\n(d) approved\\nexpenses\\nincurred\\nin\\nthe\\ndesign\\nof\\npackaging, or in the certification of goods or\\nservices where such certification is carried out by\\nan approved person; or\\n(e) approved expenses incurred on or after 1 April 2020\\nfor the engagement of a consultant (not being a\\nrelated party of the approved firm or company or an\\nofficer or employee of such related party) —\\n(i) to identify a suitable person to promote the\\ntrading of any goods, or the provision of any\\nservices, in a country outside Singapore; or\\nIncome Tax Act 1947\\n289\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(ii) to build up a business network in a country\\noutside Singapore;\\n“master franchise” means any agreement under which the\\nfranchisor authorises or permits the franchisee to use in\\nSingapore or overseas a business system owned or controlled\\nby the franchisor, including the sub‑franchising of the\\nbusiness system;\\n“master intellectual property licence” means any licence under\\nwhich the licensor authorises or permits the licensee to use in\\nSingapore or overseas the rights under a patent, copyright,\\ntrade mark, design or know‑how, including the sub‑licensing\\nof the same.\\n[Act 33 of 2022 wef 04/11/2022]\\n[Deleted by Act 33 of 2022 wef 04/11/2022]\\n[41/2020]\\n(12) No approval may be granted under this section after\\n31 December 2025.\\n[34/2016; 41/2020]\\n[Act 30 of 2023 wef 15/02/2023]\\nExpenditure on research and development\\n14C.—(1) For the purpose of ascertaining the income of any person\\ncarrying on any trade or business and subject to subsection (4), the\\nfollowing expenditure incurred (other than any amount which is\\nallowable as a deduction under section 14) by that person is allowed\\nas a deduction:\\n(a) expenditure\\nincurred\\non\\nresearch\\nand\\ndevelopment\\nundertaken directly by that person and related to that\\ntrade or business (except to the extent that it is capital\\nexpenditure on plant, machinery, land or buildings or on\\nalterations, additions or extensions to buildings or in the\\nacquisition of rights in or arising out of research and\\ndevelopment);\\n(aa) expenditure incurred during the basis period for any year of\\nassessment between the year of assessment 2009 and the\\nyear of assessment 2028 (both years inclusive) on research\\nIncome Tax Act 1947\\n2020 Ed.\\n290\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nand development undertaken in Singapore directly by that\\nperson and not related to that trade or business (except to\\nthe extent that it is capital expenditure on plant, machinery,\\nland or buildings or on alterations, additions or extensions\\nto buildings or in the acquisition of rights in or arising out\\nof research and development);\\n[Act 30 of 2023 wef 30/10/2023]\\n(b) payments made by that person to a research and\\ndevelopment\\norganisation\\nfor\\nundertaking\\non\\nthat\\nperson’s behalf in Singapore research and development\\nrelated to that trade or business;\\n(ba) payments made by that person to a research and\\ndevelopment\\norganisation\\nfor\\nundertaking\\non\\nthat\\nperson’s behalf, partly in Singapore and partly outside\\nSingapore, research and development related to that trade\\nor business;\\n(c) payments made during the basis period for any year of\\nassessment between the year of assessment 2009 and the\\nyear of assessment 2028 (both years inclusive) by that\\nperson to a research and development organisation for\\nundertaking on that person’s behalf in Singapore research\\nand development not related to that trade or business;\\n[Act 30 of 2023 wef 30/10/2023]\\n(d) payments made by that person to a research and\\ndevelopment\\norganisation\\nfor\\nundertaking\\non\\nthat\\nperson’s\\nbehalf\\noutside\\nSingapore\\nresearch\\nand\\ndevelopment related to that trade or business;\\n(e) payments made by that person under any cost-sharing\\nagreement during the basis period for a year of assessment\\nbetween the years of assessment 2012 and 2017 (both years\\ninclusive), in respect of research and development that is\\nrelated to that trade or business, regardless of who\\nundertakes the research and development so long as it is\\nundertaken wholly or partly for that person or on that\\nperson’s behalf;\\nIncome Tax Act 1947\\n291\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(f) payments made by that person during the basis period for\\nany\\nyear\\nof\\nassessment\\nbetween\\nthe\\nyear\\nof\\nassessment 2012 and the year of assessment 2017 (both\\nyears inclusive), under any cost‑sharing agreement in\\nrespect of research and development that is undertaken in\\nSingapore and is not related to that trade or business,\\nregardless\\nof\\nwho\\nundertakes\\nthe\\nresearch\\nand\\ndevelopment so long as it is undertaken wholly or partly\\nfor that person or on that person’s behalf;\\n(g) payments made by that person under any cost‑sharing\\nagreement during the basis period for the year of\\nassessment 2018 or a subsequent year of assessment in\\nrespect of any research and development, regardless of\\nwho undertakes the research and development so long as it\\nis undertaken wholly or partly for the person or on the\\nperson’s behalf.\\n[37/2014; 39/2017]\\n(1A) The expenditure or payment referred to in subsection (1) does\\nnot include any such expenditure or payment to the extent that it is or\\nis to be subsidised by grants or subsidies from the Government or a\\nstatutory board.\\n(2) For the purposes of this section, any expenditure incurred by a\\nperson prior to the commencement of that person’s trade or business\\nis deemed to have been incurred by that person on the first day on\\nwhich that person carries on that trade or business but a deduction for\\nthis is subject to section 14X.\\n[34/2016]\\n(2A) Subsection (2) does not apply to any expenditure if a\\ndeduction has already been allowed for that expenditure under\\nsubsection (1) in a previous year of assessment.\\n[45/2018]\\n(3) For the purposes of subsection (1)(ba) or (d), a claim for\\ndeduction is allowed to a person only if —\\n(a) there is an undertaking by the person that any benefit\\nwhich may arise from the conduct of the research and\\ndevelopment must accrue to the person; and\\nIncome Tax Act 1947\\n2020 Ed.\\n292\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) the claim is made by the person in such manner and subject\\nto such conditions as the Comptroller may require.\\n(3A) For the purposes of subsection (1)(e) or (g) in respect of\\nresearch and development that is undertaken wholly or partly outside\\nSingapore, a claim for deduction is allowed to a person only if —\\n(a) there is an undertaking by the person that any benefit\\nwhich may arise from the conduct of the research and\\ndevelopment must accrue, wholly or partly, to the person;\\nand\\n(b) the claim is made by the person in such manner and subject\\nto such conditions as the Comptroller may require.\\n[39/2017]\\n(4) The deduction of the expenditure and payments referred to in\\nsubsection (1)(aa), (c) and (f) must be made in accordance with the\\nfollowing provisions:\\n(a) if the person derives from the trade or business carried on\\nby the person both normal income and concessionary\\nincome, the amount of the expenditure or payments (after\\ndeducting any amount in respect of which an election for a\\ncash payout has been made under section 37G or 37R)\\nmust so far as possible be deducted against the normal\\nincome, and any remaining balance of the amount is\\ntreated as part of the unabsorbed losses in respect of the\\nnormal income to be deducted against the concessionary\\nincome in accordance with section 37A;\\n[Act 30 of 2023 wef 30/10/2023]\\n(b) if the concessionary income referred to in paragraph (a) is\\nsubject to tax at 2 or more concessionary rates of tax, the\\ndeduction under section 37A of the remaining balance\\nreferred to in that paragraph must so far as possible be\\nmade against the part of the concessionary income that is\\nsubject to tax at the higher or highest concessionary rate of\\ntax, and the deduction under section 37A of any remaining\\nbalance must so far as possible be made against the part of\\nthe concessionary income that is subject to tax at the lower\\nor next lowest concessionary rate of tax, and so on;\\nIncome Tax Act 1947\\n293\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) if the person derives from the trade or business only\\nconcessionary income which is subject to tax at a single\\nconcessionary rate of tax, a specified amount of the\\nexpenditure or payments must be deducted against the\\nconcessionary income;\\n(d) if the person derives from the trade or business only\\nconcessionary income which is subject to tax at 2 or more\\nconcessionary rates of tax, a specified amount of the\\nexpenditure or payments must so far as possible be\\ndeducted against the part of the concessionary income\\nthat is subject to the higher or highest concessionary rate of\\ntax, and any remaining balance of the specified amount is\\ntreated as part of the unabsorbed losses in respect of that\\npart of the concessionary income that is subject to the\\nhigher or highest concessionary rate of tax, to be deducted\\nin accordance with section 37A against the rest of the\\nconcessionary income;\\n(e) if the rest of the concessionary income referred to in\\nparagraph (d) is subject to tax at 2 or more concessionary\\nrates of tax, then paragraph (b) applies, with the necessary\\nmodifications,\\nto\\nthe\\nlast\\nmentioned\\ndeduction\\nin\\nparagraph (d).\\n(4A) Where a person to whom deductions have been allowed for\\npayments referred to in subsection (1)(e), (f) or (g) becomes entitled\\nto any royalty or other payments (in one lump sum or otherwise) for\\nthe use of or right to use any technology or know‑how developed\\nfrom the research and development activities conducted under the\\ncost‑sharing agreement, such royalty or payments are deemed to be\\nincome of that person that is derived from Singapore for the year of\\nassessment which relates to the basis period in which that person\\nbecomes entitled to the royalty or payments.\\n[39/2017]\\n(5) In this section —\\n“concessionary income” means income that is subject to tax at a\\nconcessionary rate of tax;\\nIncome Tax Act 1947\\n2020 Ed.\\n294\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“concessionary rate of tax” means the rate of tax in accordance\\nwith —\\n(a) any order made under section 13(12);\\n(b) section 43C, 43D, 43E, 43F, 43G, 43H, 43I, 43J,\\n43K, 43L, 43M, 43N, 43O, 43P, 43Q, 43R, 43S, 43T,\\n43U, 43V, 43W or 43X, or the regulations made\\nunder any of those sections, as the case may be; or\\n(c) section 21(9) or (13) or 23(1)(b) (as the case may be)\\nof the Economic Expansion Incentives (Relief from\\nIncome Tax) Act 1967;\\n“cost‑sharing agreement” means any agreement or arrangement\\nmade by 2 or more persons to share the expenditure of\\nresearch and development activities to be carried out under\\nthe agreement or arrangement;\\n“normal income” means income that is subject to tax at the rate\\nof tax specified in section 43(1)(a);\\n“specified amount”, in relation to any expenditure or payments,\\nmeans an amount computed in accordance with the formula\\nA \\u0003 B\\nC ;\\nwhere A is the amount of the expenditure or payments\\n(after deducting any amount in respect of which an\\nelection for a cash payout has been made under\\nsection 37G or 37R);\\nB is the rate of tax specified in section 43(1)(a); and\\nC is —\\n(a) in a case where the concessionary income\\nderived by the person from the trade or\\nbusiness carried on by the person is subject\\nto tax at a single concessionary rate of tax,\\nthat rate; or\\n(b) in a case where the concessionary income\\nderived by the person from the trade or\\nIncome Tax Act 1947\\n295\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nbusiness carried on by the person is subject to\\ntax at 2 or more concessionary rates of tax, the\\nhigher or highest of those rates.\\n[34/2016; 39/2017; 45/2018; 27/2021]\\n[Act 30 of 2023 wef 30/10/2023]\\n(6) In this section —\\n(a) a reference to a payment made by a person under a\\ncost‑sharing agreement is a reference to the expenditure\\nthat is allocated to the person for the person to bear under\\nthe cost‑sharing agreement, and the time the payment for\\nany part of the expenditure becomes payable by the person\\nor (if no such payment is needed) the time of the allocation,\\nis treated as the time the payment is made; and\\n(b) a reference to a payment made by a person under a\\ncost‑sharing agreement excludes any payment for the right\\nto be a party to the cost‑sharing agreement.\\n[39/2017]\\n(7) Subsection (6) is deemed to have effect for the year of\\nassessment 2012 and every subsequent year of assessment.\\n[14D\\n[39/2017]\\nEnhanced deduction for qualifying expenditure on research\\nand development\\n14D.—(1) Subject to this section, for the purpose of ascertaining\\nthe income of a person carrying on any trade or business during the\\nbasis period for any year of assessment between the year of\\nassessment 2009 and the year of assessment 2028 (both years\\ninclusive), there is allowed in respect of all of the person’s trades and\\nbusinesses, in addition to the deductions allowed under section 14C, a\\ndeduction for expenditure or payments for research and development\\nundertaken by the person, of an amount computed in accordance with\\nthe formula\\nU þ V\\nð\\nÞ \\u0003 A%;\\nIncome Tax Act 1947\\n2020 Ed.\\n296\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nwhere U is the amount of qualifying expenditure incurred during\\nthe basis period on any local research and development\\nundertaken directly by the person, including on that part\\nundertaken in Singapore of any mixed research and\\ndevelopment undertaken directly by that person, but\\nexcluding any capital expenditure on plant, machinery,\\nland or buildings or on alterations, additions or\\nextensions to buildings or in the acquisition of rights\\nin or arising out of research and development;\\nV is the aggregate of the following:\\n(a) the amount referred to in subsection (2A) of\\npayments made during the basis period by the\\nperson to a research and development organisation\\nfor undertaking local research and development on\\nthe\\nperson’s\\nbehalf,\\nincluding\\nfor\\nthat\\npart\\nundertaken in Singapore of any mixed research\\nand development that is undertaken by a research\\nand development organisation on the person’s\\nbehalf;\\n(b) the amount in one of the following sub‑paragraphs,\\nwhichever is applicable:\\n(i) in the case of a year of assessment between the\\nyears of assessment 2012 and 2017 (both years\\ninclusive), the amount in subsection (2A) of\\npayments made during the basis period by the\\nperson under a cost‑sharing agreement —\\n(A) for any local research and development;\\nor\\n(B) for such part of any mixed research and\\ndevelopment\\nthat\\nis\\nundertaken\\nin\\nSingapore,\\nregardless of who undertakes the research and\\ndevelopment so long as it is undertaken\\nwholly or partly for the person or on the\\nperson’s behalf;\\nIncome Tax Act 1947\\n297\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(ii) in the case of a year of assessment between the\\nyears of assessment 2018 and 2028 (both years\\ninclusive), if the person makes any payment\\nduring the basis period under a cost‑sharing\\nagreement, the sum of certain expenditure and\\npayments\\n(up\\nto\\nthe\\namount\\nin\\nsubsection\\n(2AA))\\nthat\\na\\nparty\\nto\\nthe\\nagreement (whether or not that person) has\\nagreed to bear, and for which a deduction has\\nnot\\npreviously\\nbeen\\nallowed\\nto\\nthe\\nfirstmentioned\\nperson\\nunder\\nthis\\nsub‑paragraph, namely —\\n(A) qualifying expenditure incurred by that\\nperson in undertaking a local research\\nand development, or such part of a mixed\\nresearch\\nand\\ndevelopment\\nthat\\nis\\nundertaken in Singapore; and\\n(B) the\\namount\\nmentioned\\nin\\nsubsection (2AB) of payments made by\\nthat\\nperson\\nto\\na\\nresearch\\nand\\ndevelopment\\norganisation\\nfor\\nundertaking\\na\\nlocal\\nresearch\\nand\\ndevelopment, or a part of a mixed\\nresearch and development in Singapore,\\non that person’s behalf; and\\nA is —\\n(a) for a year of assessment between the years of\\nassessment\\n2009\\nand\\n2018\\n(both\\nyears\\ninclusive) — 50%; or\\n(b) for a year of assessment between the years of\\nassessment\\n2019\\nand\\n2028\\n(both\\nyears\\ninclusive) — 150%.\\n[37/2014; 39/2017; 45/2018]\\n[Act 30 of 2023 wef 30/10/2023]\\nIncome Tax Act 1947\\n2020 Ed.\\n298\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(1A) Subject to this section and section 37R, for the purpose of\\nascertaining the income of a person carrying on any trade or business\\nduring the basis period for any year of assessment between the years\\nof assessment 2024 and 2028 (both years inclusive), there is allowed\\nin respect of all of the person’s trades and businesses, in addition to\\nthe deductions allowed under subsection (1) and section 14C, a\\ndeduction for expenditure or payments for research and development\\nundertaken by the person, of an amount computed in accordance with\\nthe formula\\nT \\u0003 150%;\\nwhere —\\n(a) T is the lower of the following:\\n(i) the aggregate of U and V;\\n(ii) $400,000; and\\n(b) U and V have the meanings given by subsection (1).\\n[Act 30 of 2023 wef 30/10/2023]\\n(2) Subject to this section and section 37J, for the purpose of\\nascertaining the income of a person carrying on any trade or business\\nduring the basis period for any year of assessment between the year of\\nassessment 2011 and the year of assessment 2018 (both years\\ninclusive), there is allowed in respect of all of the person’s trades and\\nbusinesses, in addition to the deductions allowed under subsection (1)\\nand section 14C, a deduction for expenditure or payments for\\nresearch and development undertaken by the person, of —\\n(a) an amount computed in accordance with the formula\\nU þ V\\nð\\nÞ \\u0003 250%\\n½\\n‹ þ\\nW þ X\\nð\\nÞ \\u0003 300%\\n½\\n‹; or\\n(b) if the aggregate of U, V, W and X exceeds the specified\\namount for the year of assessment, an amount computed in\\naccordance with the formula\\nY \\u0003 250%\\nð\\nÞ þ Z \\u0003 300%\\nð\\nÞ;\\nwhere U and V have the meanings given by subsection (1);\\nIncome Tax Act 1947\\n299\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nW is the amount of qualifying expenditure incurred\\nduring the basis period on any foreign research\\nand development undertaken directly by the\\nperson,\\nincluding\\non\\nthat\\npart\\nundertaken\\noutside Singapore of any mixed research and\\ndevelopment undertaken directly by that person,\\nbut excluding any capital expenditure on plant,\\nmachinery, land or buildings or on alterations,\\nadditions or extensions to buildings or in the\\nacquisition of rights in or arising out of research\\nand development;\\nX is the aggregate of the following:\\n(a) the amount referred to in subsection (2A) of\\npayments made during the basis period by\\nthe person to a research and development\\norganisation for undertaking any foreign\\nresearch and development on the person’s\\nbehalf, including for that part undertaken\\noutside Singapore of any mixed research\\nand development that is undertaken by a\\nresearch and development organisation on\\nthe person’s behalf;\\n(b) subject to subsection (2AD), the amount\\nreferred to in subsection (2A) of payments\\nmade during the basis period (being the\\nbasis period for any year of assessment\\nbetween the year of assessment 2012 and the\\nyear\\nof\\nassessment\\n2018\\n(both\\nyears\\ninclusive))\\nby\\nthe\\nperson\\nunder\\na\\ncost‑sharing agreement —\\n(i) for\\nany\\nforeign\\nresearch\\nand\\ndevelopment; or\\n(ii) for that part of any mixed research and\\ndevelopment that is undertaken outside\\nSingapore,\\nIncome Tax Act 1947\\n2020 Ed.\\n300\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nregardless of who undertakes the research\\nand development so long as it is undertaken\\nwholly or partly for the person or on the\\nperson’s behalf;\\nY is the whole or any part of the sum of U and V\\nwhich the person has elected for inclusion in the\\ncomputation\\nof\\nthe\\ndeduction\\nunder\\nthis\\nparagraph, which when aggregated with Z does\\nnot exceed the specified amount; and\\nZ is the whole or any part of the sum of W and X\\nwhich the person has elected for inclusion in the\\ncomputation\\nof\\nthe\\ndeduction\\nunder\\nthis\\nparagraph, which when aggregated with Y\\ndoes not exceed the specified amount.\\n[37/2014; 39/2017]\\n(2A) The amount of any of the payments in paragraphs (a) and\\n(b)(i) of the definition of V in subsection (1), and paragraphs (a) and\\n(b) of the definition of X in subsection (2) is —\\n(a) if more than 60% of all the payments made during the basis\\nperiod to the research and development organisation or\\nunder the cost‑sharing agreement to which the definition\\napplies are qualifying expenditure, the actual amount of the\\nqualifying expenditure; or\\n(b) in all other cases, 60% of all such payments,\\nand where there is more than one research and development\\norganisation or cost‑sharing agreement, the aggregate of all the\\namounts computed in this manner of the payments to every\\norganisation or under every agreement.\\n[39/2017]\\n(2AA) The amount mentioned in paragraph (b)(ii) of the definition\\nof V in subsection (1) is the amount of the payments made during the\\nbasis period by the person under the cost‑sharing agreement.\\n[39/2017]\\nIncome Tax Act 1947\\n301\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(2AB) In\\nparagraph\\n(b)(ii)(B)\\nof\\nthe\\ndefinition\\nof\\nV\\nin\\nsubsection (1), the amount is the higher of the following:\\n(a) the part of those payments made to the research and\\ndevelopment organisation that are qualifying expenditure;\\n(b) 60% (or such other percentage as may be prescribed by\\nrules made under section 7) of the sum of all of the\\npayments\\nmade\\nto\\nthe\\nresearch\\nand\\ndevelopment\\norganisation.\\n[39/2017]\\n(2AC) For the purposes of paragraph (b)(ii) of the definition of V in\\nsubsection (1) (read with subsections (2AA) and (2AB)), where there\\nis more than one cost‑sharing agreement or research and development\\norganisation —\\n(a) first, calculate each amount in those provisions relating to a\\ncost‑sharing agreement or research and development\\norganisation for every agreement or organisation; and\\n(b) then, add up all amounts calculated under paragraph (a).\\n[39/2017]\\n(2AD) The amount mentioned in paragraph (b) of the definition of\\nX in subsection (2)(b) is, in the case of the year of assessment 2018,\\nsubject to a maximum amount computed in accordance with the\\nformula A – B, where —\\n(a) A is the amount of the payments made during the basis\\nperiod by the person under the cost‑sharing agreement; and\\n(b) B is the amount computed under paragraph (b)(ii) of the\\ndefinition of V in subsection (1) in relation to the same\\ncost‑sharing agreement that qualifies for the deduction\\nunder subsection (1).\\n[39/2017]\\n(2B) In subsections (1) and (2) —\\n“foreign research and development” means research and\\ndevelopment that is undertaken outside Singapore, and that\\nis related to the trade or business of the firstmentioned person\\nin subsection (1);\\nIncome Tax Act 1947\\n2020 Ed.\\n302\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“local\\nresearch\\nand\\ndevelopment”\\nmeans\\nresearch\\nand\\ndevelopment that is undertaken in Singapore;\\n“mixed\\nresearch and\\ndevelopment”\\nmeans\\nresearch\\nand\\ndevelopment that is undertaken partly in Singapore and\\npartly outside Singapore, and that is related to the trade or\\nbusiness of the firstmentioned person in subsection (1), (1A)\\nor (2), as the case may be.\\n[Act 30 of 2023 wef 30/10/2023]\\n(3) The election under subsection (2)(b) must be made at the time of\\nlodgment of the return of income for the year of assessment or within\\nsuch further time as the Comptroller may allow.\\n(4) The specified amount referred to in subsection (2)(b) is —\\n(a) for the year of assessment 2011, $800,000;\\n(b) for the year of assessment 2012, the balance after\\ndeducting from $800,000 the subsection (2) amount for\\nthe year of assessment 2011;\\n(c) for the year of assessment 2013, $1,200,000;\\n(d) for the year of assessment 2014, the balance after\\ndeducting from $1,200,000 the subsection (2) amount for\\nthe year of assessment 2013;\\n(e) for the year of assessment 2015, the balance after\\ndeducting from $1,200,000 the subsection (2) amount for\\nthe year of assessment 2013 and the subsection (2) amount\\nfor the year of assessment 2014;\\n(f) for the year of assessment 2016, $1,200,000;\\n(g) for the year of assessment 2017, the balance after\\ndeducting from $1,200,000 the subsection (2) amount for\\nthe year of assessment 2016; or\\n(h) for the year of assessment 2018, the balance after\\ndeducting from $1,200,000 the subsection (2) amount for\\nthe year of assessment 2016 and the subsection (2) amount\\nfor the year of assessment 2017.\\n[37/2014]\\nIncome Tax Act 1947\\n303\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(5) In subsection (4) —\\n(a) the amount under paragraph (a) of that subsection is\\nsubstituted with “$400,000” if the person does not carry on\\nany trade or business during the basis period for the year of\\nassessment 2012;\\n(b) the balance under paragraph (b) of that subsection is\\nsubstituted with “$400,000” if the person does not carry on\\nany trade or business during the basis period for the year of\\nassessment 2011;\\n(c) if the person does not carry on any trade or business during\\nthe basis period for any one year of assessment between the\\nyear of assessment 2013 and the year of assessment 2015\\n(both years inclusive), the references to “$1,200,000” in\\nthe paragraphs of that subsection applicable to the other\\n2\\nyears\\nof\\nassessment\\nare\\neach\\nsubstituted\\nwith\\n“$800,000”;\\n(d) if the person does not carry on any trade or business during\\nthe basis periods for any 2 years of assessment between the\\nyear of assessment 2013 and the year of assessment 2015\\n(both years inclusive), the reference to “$1,200,000” in the\\nparagraph of that subsection applicable to the remaining\\nyear of assessment is substituted with “$400,000”;\\n(da) if the person does not carry on any trade or business during\\nthe basis period for any one year of assessment between the\\nyears of assessment 2016 and 2018 (both years inclusive),\\nthe references to “$1,200,000” in the paragraphs of that\\nsubsection applicable to the other 2 years of assessment are\\neach substituted with “$800,000”;\\n(db) if the person does not carry on any trade or business during\\nthe basis periods for any 2 years of assessment between the\\nyears of assessment 2016 and 2018 (both years inclusive),\\nthe reference to “$1,200,000” in the paragraph of that\\nsubsection applicable to the remaining year of assessment\\nis substituted with “$400,000”;\\nIncome Tax Act 1947\\n2020 Ed.\\n304\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(e) to avoid doubt, no deduction may be made from the\\nsubstituted amount in subsection (4)(d) or (e) of the\\nsubsection (2) amount for the year of assessment 2013 if\\nthe person does not carry on any trade or business during\\nthe basis period for that year of assessment, and no\\ndeduction may be made from the substituted amount in\\nsubsection (4)(e) of the subsection (2) amount for the year\\nof assessment 2014 if the person does not carry on any\\ntrade or business during the basis period for that year of\\nassessment; and\\n(f) to avoid doubt, no deduction may be made from the\\nsubstituted amount in subsection (4)(g) or (h) of the\\nsubsection (2) amount for the year of assessment 2016 if\\nthe person does not carry on any trade or business during\\nthe basis period for that year of assessment, and no\\ndeduction may be made from the substituted amount in\\nsubsection (4)(h) of the subsection (2) amount for the year\\nof assessment 2017 if the person does not carry on any\\ntrade or business during the basis period for that year of\\nassessment.\\n[37/2014]\\n(6) For the purposes of subsections (4) and (5), “subsection (2)\\namount”, in relation to a year of assessment, means —\\n(a) if the deduction allowed under subsection (2) for that year\\nof\\nassessment\\nis\\nthe\\namount\\nreferred\\nto\\nin\\nsubsection (2)(a), the aggregate of U, V, W and X\\nreferred to in that subsection; or\\n(b) if the deduction allowed under subsection (2) for that year\\nof\\nassessment\\nis\\nthe\\namount\\nreferred\\nto\\nin\\nsubsection (2)(b), the aggregate of Y and Z referred to in\\nthat subsection.\\n(6A) For the purpose of subsection (1A), where an individual\\ncarrying on a trade or business through 2 or more firms (excluding\\npartnerships) has, during the basis period for any year of assessment\\nbetween the years of assessment 2024 and 2028 (both years\\ninclusive), incurred qualifying expenditure or made payments in\\nIncome Tax Act 1947\\n305\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nrespect of such firms entitling the individual to a deduction under\\nsubsection (1A), the deduction that may be allowed to the individual\\nfor those expenditure or payments in respect of all of the individual’s\\ntrades and businesses must not exceed the amount computed in\\naccordance with subsection (1A) for that year of assessment.\\n[Act 30 of 2023 wef 30/10/2023]\\n(6B) For the purpose of subsection (1A), where a partnership\\ncarrying on a trade or business has, during the basis period for any\\nyear of assessment between the years of assessment 2024 and 2028\\n(both years inclusive), incurred qualifying expenditure or made\\npayments entitling the partners of the partnership to a deduction\\nunder subsection (1A), the aggregate of the deductions that may be\\nallowed to all the partners of the partnership for those expenditure or\\npayments in respect of all of the trades and businesses of the\\npartnership must not exceed the amount computed in accordance with\\nsubsection (1A) for that year of assessment.\\n[Act 30 of 2023 wef 30/10/2023]\\n(7) For the purpose of subsection (2)(b), where an individual\\ncarrying on a trade or business through 2 or more firms (excluding\\npartnerships) has, during the basis period for any year of assessment\\nbetween the year of assessment 2011 and the year of assessment 2018\\n(both years inclusive), incurred qualifying expenditure or made\\npayments in respect of such firms entitling him or her to a deduction\\nunder subsection (2), the deduction that may be allowed to him or her\\nfor those expenditure or payments in respect of all of his or her trades\\nand businesses must not exceed the amount computed in accordance\\nwith subsection (2)(b) for that year of assessment.\\n[37/2014]\\n(8) For the purpose of subsection (2)(b), where a partnership\\ncarrying on a trade or business has, during the basis period for any\\nyear of assessment between the year of assessment 2011 and the year\\nof assessment 2018 (both years inclusive), incurred qualifying\\nexpenditure or made payments entitling the partners of the\\npartnership to a deduction under subsection (2), the aggregate of\\nthe deductions that may be allowed to all the partners of the\\npartnership for the expenditure or payments in respect of all of the\\ntrades and businesses of the partnership must not exceed the amount\\nIncome Tax Act 1947\\n2020 Ed.\\n306\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\ncomputed in accordance with subsection (2)(b) for that year of\\nassessment.\\n[37/2014]\\n(9) Section 14C(4) and (5) applies in relation to the deduction for\\nexpenditure and payments for which a deduction is allowed under\\nsubsection (1), (1A) or (2) for research and development that is not\\nrelated to the trade or business carried on by the person, as it applies\\nin relation to the deduction for the expenditure and payments referred\\nto in section 14C(1)(aa), (c) and (f), subject to the following\\nmodifications:\\n(a) a reference to the amount of the expenditure or payments\\n(after deducting any amount in respect of which an election\\nfor a cash payout has been made under section 37G or 37R)\\nin section 14C(4) is a reference to the remaining amount of\\nthe deduction under subsection (1), (1A) or (2) (as the case\\nmay be) after deducting the amount of the deduction under\\nthat\\nsubsection\\nthat\\ncorresponds\\nto\\nthe\\nqualifying\\nexpenditure or payments in respect of which an election\\nfor a cash payout has been made under section 37G or 37R;\\n[Act 30 of 2023 wef 30/10/2023]\\n(b) a reference to the specified amount of the expenditure or\\npayments is a reference to an amount computed in\\naccordance with the formula\\nA \\u0003 B\\nC ;\\nwhere A is the remaining amount of the deduction under\\nsubsection (1), (1A) or (2) (as the case may be)\\nafter deducting the amount of the deduction under\\nthat subsection that corresponds to the qualifying\\nexpenditure or payments in respect of which an\\nelection for a cash payout has been made under\\nsection 37G or 37R;\\nB is the rate of tax specified in section 43(1)(a); and\\nC is —\\nIncome Tax Act 1947\\n307\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(i) in a case where the concessionary income\\nderived by the person from the trade or\\nbusiness carried on by the person is subject to\\ntax at a single concessionary rate of tax, that\\nrate; or\\n(ii) in a case where the concessionary income\\nderived by the person from the trade or\\nbusiness carried on by the person is subject to\\ntax at 2 or more concessionary rates of tax,\\nthe higher or highest of those rates.\\n[Act 30 of 2023 wef 30/10/2023]\\n(10) No deduction is allowed to a company under subsection (2) for\\nany year of assessment if a deduction for any expenditure has been\\nallowed under section 37F for that year of assessment.\\n(11) In this section —\\n“consumables” means any materials or items used in the\\nresearch and development which, upon such use, are\\nconsumed or transformed in such a manner that they are no\\nlonger useable in their original form, but does not include\\nutilities;\\n“cost‑sharing agreement” means any agreement or arrangement\\nmade by 2 or more persons to share the expenditure of\\nresearch and development activities to be carried out under\\nthe agreement or arrangement;\\n“qualifying expenditure” means any expenditure attributable to\\nthe research and development that is incurred on —\\n(a) staff costs;\\n(b) consumables; or\\n(c) such other matter as the Minister may prescribe by\\nregulations;\\n“staff costs” means any salary, wages and other benefits paid or\\ngranted in respect of employment (excluding director’s fees),\\nIncome Tax Act 1947\\n2020 Ed.\\n308\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nwhether in money or otherwise, to any employee for carrying\\nout the research and development, and includes —\\n(a) expenses incurred for training or certifying the\\nemployee for the purpose of carrying out the\\nresearch and development; and\\n(b) such other expenses as may be prescribed.\\n(12) In this section —\\n(a) a\\nreference\\nto\\na\\nperson\\nundertaking\\nresearch\\nand\\ndevelopment includes —\\n(i) a\\nreference\\nto\\na\\nresearch\\nand\\ndevelopment\\norganisation undertaking research and development\\non the person’s behalf; and\\n(ii) for any year of assessment between the year of\\nassessment 2012 and the year of assessment 2028\\n(both years inclusive), a reference to any person\\nundertaking research and development under a\\ncost‑sharing agreement of which the firstmentioned\\nperson is a party, so long as the research and\\ndevelopment is undertaken wholly or partly for the\\nfirstmentioned person or on the firstmentioned\\nperson’s behalf; and\\n[Act 30 of 2023 wef 30/10/2023]\\n(b) a reference to any expenditure or payment excludes any\\nsuch expenditure or payment to the extent that it is or is to\\nbe subsidised by grants or subsidies from the Government\\nor a statutory board.\\n[37/2014]\\n(13) In this section —\\n(a) a reference to a payment made by a person under a\\ncost‑sharing agreement is a reference to the expenditure\\nthat is allocated to the person for the person to bear under\\nthe cost‑sharing agreement, and the time the payment for\\nany part of the expenditure becomes payable or (if no such\\npayment is needed) the time of the allocation, is treated as\\nthe time the payment is made; and\\nIncome Tax Act 1947\\n309\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) a reference to a payment made by a person under a\\ncost‑sharing agreement excludes any payment for the right\\nto be a party to the cost‑sharing agreement.\\n[39/2017]\\n(14) Subsection (13) is deemed to have effect for every year of\\nassessment to which each provision of this section containing the\\nreference mentioned in subsection (13) applies.\\n[14DA\\n[39/2017]\\nFurther deduction for expenditure on research and\\ndevelopment project\\n14E.—(1) Subject to this section, where the Comptroller is satisfied\\nthat —\\n(a) a person carrying on any trade or business has incurred\\nexpenditure in undertaking directly by the person, or in\\npaying a research and development organisation to\\nundertake on the person’s behalf, an approved research\\nand development project in Singapore which is related to\\nthat trade or business;\\n(aa) a person carrying on any trade or business has incurred\\nduring the basis period for any year of assessment between\\nthe\\nyear\\nof\\nassessment\\n2009\\nand\\nthe\\nyear\\nof\\nassessment 2020 (both years inclusive) expenditure in\\nundertaking directly by the person, or in paying a research\\nand development organisation to undertake on the person’s\\nbehalf, an approved research and development project in\\nSingapore which is not related to that trade or business; or\\n(b) a research and development organisation has incurred\\nexpenditure in undertaking an approved research and\\ndevelopment project in Singapore and no deduction\\nunder this section has been allowed to another person in\\nrespect of any expenditure for that project or for another\\nproject of which that project forms a part,\\nthere is allowed to that person or research and development\\norganisation a further deduction of the amount of such expenditure\\nIncome Tax Act 1947\\n2020 Ed.\\n310\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nin addition to the deduction allowed under section 14, 14C or 14D, as\\nthe case may be.\\n[37/2014]\\n(2) The Minister or such person as the Minister may appoint may —\\n(a) specify the maximum amount of the expenditure (or any\\nitem thereof) incurred to be allowed under subsection (1);\\n(b) impose such conditions as the Minister or appointed person\\nthinks fit when approving the research and development\\nproject; and\\n(c) specify the period or periods for which deduction is to be\\nallowed under this section.\\n(3) No deduction is allowed under this section in respect of any\\nexpenditure which is not allowed under section 14 or 14C.\\n(3A) The total amount of deduction allowed under this section for\\nany expenditure incurred by a person for an approved research and\\ndevelopment project in Singapore must not, after adding the total\\namount of deductions allowed under sections 14, 14C and 14D for the\\nsame expenditure, result in the total amount of deductions for that\\nexpenditure exceeding 200% of that expenditure; and if it so exceeds\\nthen no deduction is allowed under this section for that expenditure.\\n[45/2018]\\n(3AA) No deduction is allowed to any person under this section in\\nrespect of any expenditure for which a deduction has been allowed\\nunder section 14D(2).\\n(3B) Section 14C(4) and (5) applies in relation to the deduction of\\nthe expenditure and payments referred to in subsection (1)(aa), as it\\napplies in relation to the deduction of the expenditure and payments\\nreferred to in section 14C(1)(aa), (c) and (f), subject to the following\\nmodifications:\\n(a) a reference to the amount of the expenditure or payments is\\na reference to the amount of deduction that would have\\nbeen allowed under this section for the expenditure or\\npayments referred to in subsection (1)(aa) but for this\\nsubsection;\\nIncome Tax Act 1947\\n311\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) a reference to a specified amount of the expenditure or\\npayments is a reference to an amount computed in\\naccordance with the formula\\nA \\u0003 B\\nC ;\\nwhere A is the amount of the deduction referred to in\\nparagraph (a);\\nB is the rate of tax specified in section 43(1)(a); and\\nC is —\\n(i) in a case where the concessionary income (as\\ndefined in section 14C(5)) derived by the person\\nfrom the trade or business carried on by the\\nperson is subject to tax at a single concessionary\\nrate of tax, that rate; or\\n(ii) in a case where the concessionary income\\nderived by the person from the trade or\\nbusiness carried on by the person is subject to\\ntax at 2 or more concessionary rates of tax, the\\nhigher or highest of those rates.\\n(3C) No research and development project may be approved under\\nthis section after 31 March 2020.\\n[37/2014]\\n(4) In this section, “approved” means approved by the Minister or\\nsuch person as the Minister may appoint.\\nDeduction for expenditure incurred on qualifying innovation\\nprojects\\n14EA.—(1) Subject to this section, for the purpose of ascertaining\\nthe income of a person carrying on a trade or business during the basis\\nperiod for any year of assessment between the years of assessment\\n2024 and 2028 (both years inclusive), there is allowed in respect of all\\nof the person’s trades and businesses, a deduction for qualifying\\nexpenditure incurred for a qualifying innovation project undertaken\\nIncome Tax Act 1947\\n2020 Ed.\\n312\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nfor the purpose of any of those trades and businesses, computed in\\naccordance with the formula\\nA \\u0003 400%;\\nwhere A is the lower of the following:\\n(a) the qualifying expenditure incurred during the basis period\\nfor that year of assessment;\\n(b) $50,000.\\n(2) Subsection (1) does not apply if —\\n(a) a trade or business of the person involves the carrying out\\nof one or more relevant activities on behalf of another\\nperson; and\\n(b) the qualifying innovation project is undertaken in the\\ncourse of carrying on that trade or business.\\n(3) No deduction is allowed to a person under this section in respect\\nof any expenditure for which a deduction or an allowance is given or\\nmade under section 14, 14A, 14C, 14D, 14U or 19B, as the case may\\nbe.\\n(4) Where the qualifying expenditure incurred by a person is also\\neligible for a deduction under section 14C or 14D and that person\\nmakes a claim for a deduction under this section, no deduction under\\nsection 14C or 14D is allowed to that person in respect of the whole or\\nany part of the qualifying expenditure.\\n(5) For the purpose of subsection (1), a claim for deduction is\\nallowed to a person only if —\\n(a) there is an undertaking by the person that the expenditure is\\nnot\\nincurred\\nin\\nthe\\ncircumstances\\nmentioned\\nin\\nsubsection (2)(a) and (b); and\\n(b) the claim is made in such manner and subject to such\\nconditions as the Comptroller may require.\\n(6) For the purpose of subsection (1), where an individual carrying\\non a trade or business through 2 or more firms (excluding\\npartnerships) has, during the basis period for any year of\\nIncome Tax Act 1947\\n313\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nassessment between the years of assessment 2024 and 2028 (both\\nyears inclusive), incurred qualifying expenditure in respect of those\\nfirms for the purposes of the individual’s trade or business, the\\ndeduction that may be allowed to the individual for that expenditure\\nin respect of all of the individual’s trades and businesses must not\\nexceed the amount computed in accordance with subsection (1) for\\nthat year of assessment.\\n(7) For the purposes of subsection (1), where a partnership carrying\\non a trade or business has, during the basis period for any year of\\nassessment between the years of assessment 2024 and 2028 (both\\nyears inclusive), incurred qualifying expenditure for the purposes of\\nthe partnership’s trade or business, the aggregate of the deductions\\nthat may be allowed to all the partners of the partnership for that\\nexpenditure in respect of all of the trades and businesses of the\\npartnership must not exceed the amount computed in accordance with\\nsubsection (1) for that year of assessment.\\n(8) For the purposes of this section, any qualifying expenditure\\nincurred by a person prior to the commencement of that person’s trade\\nor business is treated as having been incurred by that person on the\\nfirst day that the person carries on that trade or business, but a\\ndeduction for such expenditure is subject to section 14X.\\n(9) In this section —\\n“approved educational or research institution” means any\\ninstitution approved by the Minister for the purpose of this\\nsection, that provides education or carries out research and\\ndevelopment;\\n“qualifying expenditure” means any payment made by a person\\nto an approved educational or research institution for the\\npurpose of undertaking a qualifying innovation project with\\nthe person;\\n“qualifying innovation project” means a project that —\\n(a) is undertaken by a person with an approved\\neducational or research institution;\\n(b) predominantly involves the carrying out of one or\\nmore relevant activities; and\\nIncome Tax Act 1947\\n2020 Ed.\\n314\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) is certified by the approved educational or research\\ninstitution as a project that predominantly involves\\nthe carrying out of one or more relevant activities;\\n“relevant activity” means an activity falling within any of the\\nfollowing categories of activities, being categories specified\\nin the document “Oslo Manual 2018 — Guidelines for\\nCollecting, Reporting and Using Data on Innovation”\\npublished by the Organisation for Economic Co-operation\\nand Development on 22 October 2018:\\n(a) research and experimental development activities;\\n(b) engineering,\\ndesign\\nand\\nother\\ncreative\\nwork\\nactivities;\\n(c) intellectual property-related activities;\\n(d) software development and database activities.\\n(10) A reference in this section to qualifying expenditure excludes\\nany expenditure to the extent that it is or is to be subsidised by any\\ngrant or subsidy from the Government or a statutory board.\\n[Act 30 of 2023 wef 30/10/2023]\\nExpenditure on building modifications for benefit of disabled\\nemployees\\n14F.—(1) Subject to subsections (2) and (3), where any person\\nbeing the owner or lessee of any premises and carrying on a trade,\\nbusiness or profession at those premises has incurred approved\\nexpenditure on any addition or alteration to those premises for the\\npurpose of facilitating the mobility or work of any disabled employee,\\nthere is, in ascertaining the income of that person for the basis period\\nduring which the expenditure was incurred, allowed as a deduction an\\namount equal to that expenditure.\\n(2) Where any person has been allowed a deduction under\\nsubsection (1), no deduction is allowed under any other provision\\nof this Act in respect of the expenditure for which the deduction was\\nallowed.\\n(3) Where a person has been allowed a deduction or deductions\\nunder this section amounting to $100,000, whether for one or more\\nIncome Tax Act 1947\\n315\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nyears of assessment, no further deduction is allowed to that person\\nunder this section.\\n(4) In this section, “approved” means approved by the Minister or\\nsuch person as the Minister may appoint.\\n(5) No approval may be granted under this section after 14 February\\n2023.\\n[Act 30 of 2023 wef 15/02/2023]\\n[14H\\nProvisions by banks and qualifying finance companies for\\ndoubtful debts and diminution in value of investments\\n14G.—(1) Subject to this section, for the purpose of ascertaining\\nthe income for the basis period for any year of assessment of a bank or\\nqualifying finance company, there is allowed as a deduction an\\namount in respect of the provision for doubtful debts arising from its\\nloans and the provision for diminution in the value of its investments\\nin securities, made in that basis period.\\n(2) Where in the basis period for any year of assessment —\\n(a) any amount of the provisions is written back, that amount\\nis treated as having been allowed as a deduction under this\\nsection and is deemed to be a trading receipt of the bank or\\nqualifying finance company for that basis period except as\\nprovided in subsection (2CA);\\n[Act 30 of 2023 wef 30/10/2023]\\n(b) the bank or qualifying finance company permanently\\nceases to carry on business in Singapore, any provisions\\nin the account of the bank or qualifying finance company\\nas at the date of the cessation are deemed to be a trading\\nreceipt of the bank or qualifying finance company for that\\nbasis period.\\n(2A) If, for a basis period beginning on or after 1 January 2018, the\\nrelevant amount for the bank or qualifying finance company is a\\nnegative amount, then, for the purpose of subsection (1), the bank or\\nqualifying finance company is treated as having made in that basis\\nperiod provisions for doubtful debts arising from its loans and for the\\nIncome Tax Act 1947\\n2020 Ed.\\n316\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\ndiminution in the value of its investments in securities, of an amount\\nequal to that amount expressed as a positive amount.\\n[45/2018]\\n(2B) If, for a basis period beginning on or after 1 January 2018, the\\nrelevant amount for the bank or qualifying finance company is a\\npositive amount, then, for the purpose of subsection (2)(a), the bank\\nor qualifying finance company is treated as having written back in\\nthat basis period an amount of its provisions that is equal to that\\namount.\\n[45/2018]\\n(2C) The relevant amount for the bank or qualifying finance\\ncompany in subsections (2A) and (2B) is an amount computed using\\nthe formula A + B + C, where —\\n(a) A is —\\n(i) if a loss is recognised, in accordance with FRS 109 or\\nSFRS(I) 9 (as the case may be), in the profit and loss\\naccount of the bank or qualifying finance company\\nfor that basis period in respect of its loans that are not\\ncredit‑impaired, owing to any provisions made for\\nexpected credit losses arising from those loans, the\\namount of that loss expressed as a negative amount;\\nor\\n(ii) if a gain is recognised, in accordance with FRS 109\\nor SFRS(I) 9 (as the case may be), in the profit and\\nloss account of the bank or qualifying finance\\ncompany for that basis period in respect of its\\nloans that are not credit‑impaired, owing to a\\nwrite‑back of any provisions made for expected\\ncredit losses arising from those loans, the amount of\\nthat gain expressed as a positive amount;\\n(b) B is —\\n(i) if a loss is recognised, in accordance with FRS 109 or\\nSFRS(I) 9 (as the case may be), in the profit and loss\\naccount of the bank or qualifying finance company\\nfor that basis period in respect of its investments in\\nsecurities that are not credit‑impaired, owing to any\\nIncome Tax Act 1947\\n317\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nprovisions made for expected credit losses arising\\nfrom those securities, the amount of that loss\\nexpressed as a negative amount; or\\n(ii) if a gain is recognised, in accordance with FRS 109\\nor SFRS(I) 9 (as the case may be), in the profit and\\nloss account of the bank or qualifying finance\\ncompany for that basis period in respect of its\\ninvestments in securities that are not credit‑impaired,\\nowing to a write‑back of any provisions made for\\nexpected credit losses arising from those securities,\\nthe amount of that gain expressed as a positive\\namount; and\\n(c) C is —\\n(i) if an MAS notice mentioned in subsection (6A)\\nrequires the bank or qualifying finance company to\\nmake for that basis period an amount of allowance\\nfor loans or investments in securities that are not\\ncredit‑impaired, and that amount is recognised in the\\nretained earnings account of the bank or qualifying\\nfinance company as required by that MAS notice,\\nthat amount expressed as a negative amount; or\\n(ii) if an MAS notice mentioned in subsection (6A)\\nrequires the bank or qualifying finance company to\\nreverse an amount of any allowance mentioned in\\nsub‑paragraph (i) for a basis period, and that amount\\nis recognised in the retained earnings account of the\\nbank or qualifying finance company as required by\\nthat MAS notice, that amount expressed as a positive\\namount.\\n[45/2018]\\n(2CA) Subject to subsection (2CB), subsection (2)(a) does not\\napply to the following provisions and allowance written back by a\\nbank or qualifying finance company in the basis period for the year of\\nassessment 2022 or any subsequent year of assessment:\\n(a) a provision made for expected credit losses of any of the\\nfollowing loans that are not credit-impaired, being losses\\nIncome Tax Act 1947\\n2020 Ed.\\n318\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthat were recognised in accordance with FRS 109 or\\nSFRS(I) 9 (as the case may be) in the basis period for the\\nyear of assessment 2021 or any preceding year of\\nassessment:\\n(i) a loan to and placement with any financial institution\\nin Singapore or any other country;\\n(ii) a loan to the Government or the government of any\\nother country;\\n(iii) a loan to and placement with the Monetary Authority\\nof Singapore or the central bank or other monetary\\nauthority of any other country;\\n(iv) a\\nloan\\nto\\nany\\nstatutory\\nbody\\nor\\ncorporation\\nguaranteed by the Government or the government\\nof any other country;\\n(v) such other loan or advance as may be prescribed by\\nrules made under section 7;\\n(b) a provision made for expected credit losses of securities\\nissued or guaranteed by the Government or the government\\nof any country that are not credit-impaired, being losses\\nthat were recognised in accordance with FRS 109 or\\nSFRS(I) 9 (as the case may be) in the basis period for the\\nyear of assessment 2021 or any preceding year of\\nassessment;\\n(c) an allowance for any loan mentioned in paragraph (a)(i) to\\n(v)\\nor\\nany\\ninvestment\\nin\\nsecurities\\nmentioned\\nin\\nparagraph (b) where the loan or securities are not credit-\\nimpaired, being allowances that were recognised in the\\nretained earnings account of the bank or qualifying finance\\ncompany as required by an MAS notice in the basis period\\nfor the year of assessment 2021 or any preceding year of\\nassessment.\\n[Act 30 of 2023 wef 30/10/2023]\\n(2CB) Subsection (2CA) applies only if the bank or qualifying\\nfinance company is able to directly identify, to the satisfaction of the\\nComptroller, the amount of the provision or allowance mentioned in\\nIncome Tax Act 1947\\n319\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nparagraph (a), (b) or (c) of that subsection that was written back in the\\nbasis period for the year of assessment concerned.\\n[Act 30 of 2023 wef 30/10/2023]\\n(2D) For the purpose of subsection (2)(b), if the bank or qualifying\\nfinance company permanently ceases to carry on business in\\nSingapore in a basis period beginning on or after 1 January 2018,\\nthen the amount that is deemed as its trading receipts for that basis\\nperiod is the sum of —\\n(a) any provisions in its expected credit loss allowance\\naccount in respect of loans and securities that are not\\ncredit‑impaired at the date of the cessation; and\\n(b) any provisions at that date in the reserve account that it is\\nrequired to maintain by an MAS notice.\\n[45/2018]\\n(2E) Where, in any basis period that begins on a day before\\n1 January 2018 —\\n(a) the bank or qualifying finance company prepares or\\nmaintains financial accounts in accordance with FRS 109\\nor SFRS(I) 9 (as the case may be), even though it is only\\nrequired to do so in a later basis period; and\\n(b) the relevant amount for it is a negative amount,\\nthen, for the purpose of subsection (1), the bank or qualifying finance\\ncompany is treated as having made in that basis period provisions for\\ndoubtful debts arising from its loans and for the diminution in the\\nvalue of its investments in securities, of an amount equal to that\\namount expressed as a positive amount.\\n[45/2018]\\n(2F) Where, in any basis period that begins on a day before\\n1 January 2018 —\\n(a) the bank or qualifying finance company prepares or\\nmaintains financial accounts in accordance with FRS 109\\nor SFRS(I) 9 (as the case may be), even though it is only\\nrequired to do so in a later basis period; and\\n(b) the relevant amount for it is a positive amount,\\nIncome Tax Act 1947\\n2020 Ed.\\n320\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthen, for the purpose of subsection (2)(a), the bank or qualifying\\nfinance company is treated as having written back in that basis period\\nan amount of its provisions that is equal to that amount.\\n[45/2018]\\n(2G) The relevant amount for the bank or qualifying finance\\ncompany in subsections (2E) and (2F) is an amount computed using\\nthe formula A + B, where A and B have the meanings given by\\nsubsection (2C).\\n[45/2018]\\n(2H) The Minister may make regulations to provide for any\\ntransitional\\nmatter\\nin\\nconnection\\nwith\\nthe\\napplication\\nof\\nsubsections (2A) to (2G) to a bank or qualifying finance company\\nfor the year in which it first becomes a qualifying person within the\\nmeaning of section 34AA, including substituting a provision in place\\nof subsection (5).\\n[45/2018]\\n(3) The\\ntotal\\namount\\ndeemed\\nas\\ntrading\\nreceipts\\nunder\\nsubsection (2), (2B), (2D), (2F) or (4A)(f) must not exceed the\\ntotal amount of all deductions previously allowed under this section.\\n[45/2018]\\n(4) Where in a scheme of amalgamation involving 2 or more banks\\nor finance companies whereby the whole or substantially the whole of\\nthe undertaking of any bank or finance company is transferred to\\nanother bank or finance company, the Minister may, if he or she\\nthinks fit and on such conditions as he or she may impose, by order\\ndeclare that any provisions in the account of the transferor bank or\\ntransferor finance company which have been transferred to the\\ntransferee bank or transferee finance company are not deemed under\\nsubsection (2)(b) to be a trading receipt of the transferor bank or\\ntransferor finance company; and the provisions so declared are for the\\npurposes of this section treated as having been allowed to the\\ntransferee bank or transferee finance company as a deduction under\\nthis section.\\n(4A) Where —\\n(a) loans or securities are transferred by a bank or qualifying\\nfinance company (called in this subsection the transferor)\\nto another person (called in this subsection the transferee);\\nIncome Tax Act 1947\\n321\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) the transfer is not pursuant to a scheme of amalgamation;\\n(c) provision for doubtful debts arising from those loans, or\\nprovision for diminution in the value of investments in\\nthose securities, is also transferred by the transferor to the\\ntransferee; and\\n(d) a deduction of an amount in respect of that provision was\\npreviously allowed under this section to the transferor,\\nthen —\\n(e) in a case where both the transferor and the transferee are in\\nthe business of lending money on the date of the transfer,\\nthe deduction previously allowed to the transferor is\\ntreated, for the purposes of this section, as having been\\nallowed to the transferee under this section; and\\n(f) in any other case, the provision is treated as a trading\\nreceipt of the transferor for the basis period in which the\\ndate of transfer falls.\\n[39/2017; 45/2018]\\n(5) Subject to subsection (6), the total amount of the provisions to\\nbe allowed as a deduction under this section for any year of\\nassessment must not exceed the lowest of —\\n(a) 25% of the qualifying profits for the basis period for that\\nyear of assessment;\\n(b) 1/2% of the prescribed value of the loans and investments in\\nsecurities in the basis period for that year of assessment;\\nand\\n(c) 3% of the prescribed value of the loans and investments in\\nsecurities in the basis period for that year of assessment,\\nless the total amount of all deductions previously allowed\\nunder this section which have not been deemed to be\\ntrading receipts under subsections (2), (2B), (2D), (2F) and\\n(4A)(f).\\n[45/2018]\\nIncome Tax Act 1947\\n2020 Ed.\\n322\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(6) No deduction is allowed for any year of assessment —\\n(a) where there are no qualifying profits in the basis period for\\nthat year of assessment; or\\n(b) where the total amount of all deductions previously\\nallowed under this section, which have not been deemed\\nto be trading receipts under subsections (2), (2B), (2D),\\n(2F) and (4A)(f), is in excess of 3% of the prescribed value\\nof the loans and investments in securities for the relevant\\nbasis period for that year of assessment.\\n[45/2018]\\n(6AA) Subsections (5) and (6) do not apply to any bank or\\nqualifying finance company for the years of assessment 2021 and\\n2022.\\n[41/2020]\\n(6AB) For the purposes of subsections (5) and (6) —\\n(a) a reference to a loan is to a loan that has been disbursed by\\nthe bank or qualifying finance company, but does not\\ninclude —\\n(i) a loan to and placement with any financial institution\\nin Singapore or any other country;\\n(ii) a loan to the Government or the government of any\\nother country;\\n(iii) a loan to and placement with the Monetary Authority\\nof Singapore or the central bank or other monetary\\nauthority of any other country;\\n(iv) a\\nloan\\nto\\nany\\nstatutory\\nbody\\nor\\ncorporation\\nguaranteed by the Government or the government\\nof any other country; or\\n(v) such other loan or advance as may be prescribed by\\nrules made under section 7; and\\n(b) a reference to securities does not include securities issued\\nor guaranteed by the Government or the government of any\\nother country.\\n[27/2021]\\nIncome Tax Act 1947\\n323\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(6A) The provisions in this section apply to any allowance made by\\na bank or qualifying finance company for loans or securities as\\nrequired by an MAS notice, as they apply in relation to a provision for\\ndoubtful debts arising from loans, or for diminution in the value of\\ninvestments in securities, of the bank or qualifying finance company.\\n[45/2018]\\n(6B) No deduction is allowed under subsection (1) starting from the\\nyear of assessment for a basis period that begins on or after 1 January\\n2029.\\n[45/2018]\\n[Act 30 of 2023 wef 30/10/2023]\\n(7) In this section —\\n“bank” means a bank or merchant bank licensed under the\\nBanking Act 1970;\\n[Deleted by Act 30 of 2023 wef 30/10/2023]\\n“credit‑impaired” and “expected credit loss” have the same\\nmeanings as in FRS 109 or SFRS(I) 9, as the case may be;\\n“FRS 109” and “SFRS(I) 9” have the meanings given by\\nsection 34AA(15);\\n“loan” means any loan, advance or credit facility made or\\ngranted by a bank or qualifying finance company, including\\nan overdraft;\\n“MAS notice” means a notice or direction of the Monetary\\nAuthority of Singapore given under —\\n(a) section 55 of the Banking Act 1970;\\n(b) section 55 of the Banking Act 1970 as applied by\\nsection 55ZJ of that Act; or\\n(c) section 30 of the Finance Companies Act 1967;\\n“Monetary Authority of Singapore” means the Monetary\\nAuthority of Singapore established under section 3 of the\\nMonetary Authority of Singapore Act 1970;\\n“prescribed value of loans and investments in securities”, in\\nrelation to the basis period for any year of assessment, means\\nIncome Tax Act 1947\\n2020 Ed.\\n324\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthe value (ascertained in such manner as the Comptroller may\\ndetermine) of the loans and investments in securities\\n(excluding any loan or investment in respect of which any\\ndeduction has been allowed under any other section of this\\nAct) as at the last day of each month in that basis period\\nadded together and divided by the number of months in that\\nbasis period;\\n“provisions” means the provision for doubtful debts arising from\\nthe loans of a bank or qualifying finance company and the\\nprovision for diminution in the value of its investments in\\nsecurities;\\n“qualifying finance company” means a company licensed under\\nthe Finance Companies Act 1967 to carry on financing\\nbusiness;\\n“qualifying profit” means the net profit (excluding any\\nextraordinary gain which is not subject to tax) as shown in\\nthe audited accounts of the bank or qualifying finance\\ncompany before deducting provision for taxation, tax paid,\\nany extraordinary loss not allowed as a deduction, provision\\nfor doubtful debts arising from loans and provision for\\ndiminution in value of investments in securities;\\n“securities” means debentures, bonds or notes.\\n[14I\\n[39/2017; 45/2018; 1/2020; 27/2021]\\nFurther or double deduction for overseas investment\\ndevelopment expenditure\\n14H.—(1) Where the Comptroller is satisfied that any investment\\ndevelopment expenditure for the carrying out of an approved\\ninvestment project overseas has been incurred by an approved firm\\nor company resident in Singapore and carrying on business in\\nSingapore, there is to be allowed —\\n(a) where such expenditure is allowable as a deduction under\\nsection 14, a further deduction of the amount of such\\nexpenditure in addition to the deduction allowed under that\\nsection; or\\nIncome Tax Act 1947\\n325\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) where such expenditure is not allowable as a deduction\\nunder section 14, a deduction equal to twice the amount of\\nsuch expenditure.\\n(1A) For\\nthe\\npurposes\\nof\\nsubsection\\n(1)\\nand\\nsubject\\nto\\nsubsection (1B), the firm or company —\\n(a) need not be an approved firm or approved company to be\\nallowed a deduction under subsection (1) in respect of the\\nfollowing expenditure that is directly attributable to the\\ncarrying out of any study to identify investment overseas:\\n(i) where the expenditure is incurred during the period\\nbetween 1 April 2012 and 16 February 2021 (both\\ndates inclusive) — any investment development\\nexpenditure;\\n(ii) where the expenditure is incurred during the period\\nbetween 17 February 2021 and 31 December 2025\\n(both\\ndates\\ninclusive)\\n—\\nsuch\\ninvestment\\ndevelopment expenditure as is prescribed by rules\\nmade under section 7; and\\n(b) need not seek approval for the investment project to which\\nthe expenditure relates.\\n[45/2018; 41/2020; 27/2021]\\n(1AA) Rules made for the purposes of subsection (1A)(a)(ii) may\\nbe made to take effect from (and including) 17 February 2021.\\n[27/2021]\\n(1B) The amount of the expenditure for which the deduction may\\nbe allowed under subsection (1A), after adding the expenditure for\\nwhich a deduction is allowed to the firm or company under\\nsection 14B(2A), must not exceed —\\n(a) for a year of assessment before the year of assessment\\n2019 — $100,000; or\\n(b) for the year of assessment 2019 or a subsequent year of\\nassessment — $150,000.\\n[45/2018]\\nIncome Tax Act 1947\\n2020 Ed.\\n326\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(2) The Minister or an authorised body may —\\n(a) specify the maximum amount of investment development\\nexpenditure for the carrying out of an approved investment\\nproject overseas (or any item thereof) to be allowed under\\nsubsection (1), other than expenditure that is the subject of\\na claim for deduction under subsection (1A); and\\n(b) impose such conditions as the Minister or authorised body\\nthinks fit when approving the investment project for which\\nthe deduction is to be allowed under this section.\\n[Act 41 of 2020 wef 12/04/2024]\\n(2A) The sum of —\\n(a) the amount of expenditure allowed as a deduction or a\\nfurther\\ndeduction\\nto\\na\\nfirm\\nor\\ncompany\\nunder\\nsubsection (1); and\\n(b) any amount of expenditure allowed as a deduction or a\\nfurther\\ndeduction\\nto\\nthe\\nfirm\\nor\\ncompany\\nunder\\nsection 14I(1),\\nmust not exceed $1 million for each year of assessment.\\n[2/2016]\\n(3) No deduction is allowed under this section in respect of —\\n(a) travelling, accommodation and subsistence expenses or\\nallowances for —\\n(i) more than 2 employees taking part in any study to\\nidentify investment overseas; or\\n(ii) more than the approved number of employees taking\\npart in any feasibility or due diligence study on any\\napproved investment overseas;\\n(b) any expenditure incurred during the basis period for a year\\nof assessment by a firm or company if —\\n(i) any part of its income for that year of assessment is\\nexempt or partly exempt from tax under section 13A,\\n13E, 13P or 13S;\\nIncome Tax Act 1947\\n327\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(ii) any part of its income for that year of assessment is\\nsubject to tax at a concessionary rate of tax under\\nsection 43C, 43D, 43E, 43G, 43I, 43J, 43L, 43P,\\n43Q, 43R, 43U, 43Vor 43X, or the regulations made\\nunder any of those sections; or\\n(iii) it is given tax relief under Part 2, 3 or 4 of the\\nEconomic\\nExpansion\\nIncentives\\n(Relief\\nfrom\\nIncome Tax) Act 1967 for that year of assessment,\\nor is given an investment allowance under Part 8 of\\nthat Act for that year of assessment; or\\n(c) any expenditure to the extent it is or is to be subsidised by a\\ngrant or subsidy from the Government or a statutory board.\\n[2/2016; 45/2018]\\n(4) Despite subsection (3), the Minister or an authorised body may,\\nin any particular case, and subject to such conditions precedent and\\nconditions subsequent as the Minister or authorised body may\\nimpose, allow a deduction of any expenditure referred to in\\nsubsection (3)(b).\\n[2/2016]\\n[Act 41 of 2020 wef 12/04/2024]\\n(5) If the firm or company fails to comply with a condition\\nsubsequent imposed under subsection (4), the deduction allowed to\\nthe firm or company under that subsection is treated as the firm’s or\\ncompany’s income for the year of assessment in which the\\nComptroller discovers the non‑compliance.\\n[2/2016]\\n(5A) In relation to a deduction under this section, a condition is a\\ncondition subsequent if or to the extent that it can only be satisfied\\nafter the deduction is allowed, and a condition is a condition\\nprecedent if or to the extent that it is not a condition subsequent; and\\naccordingly a condition may, depending on the circumstances, be\\neither a condition precedent or a condition subsequent.\\n[2/2016]\\n(6) Section 14B(10) applies, with the necessary modifications, to\\nany firm or company to which a deduction is allowed under\\nsubsection (1).\\nIncome Tax Act 1947\\n2020 Ed.\\n328\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(7) In this section —\\n“approved” means approved by the Minister or an authorised\\nbody;\\n[Act 41 of 2020 wef 12/04/2024]\\n“investment development expenditure” means —\\n(a) expenses directly attributable to the carrying out\\nof —\\n(i) any study to identify investment overseas; and\\n(ii) any feasibility or due diligence study on any\\napproved investment overseas; and\\n(b) expenses incurred on or after 17 February 2021 for\\nthe transportation of any sample for use in any study\\ncarried out overseas to identify investment overseas.\\n[27/2021]\\n(8) No\\napproval\\nmay\\nbe\\ngranted\\nunder\\nthis\\nsection\\nafter\\n31 December 2025.\\n[14K\\n[34/2016; 41/2020]\\nFurther or double deduction for salary expenditure for\\nemployees posted overseas\\n14I.—(1) Where the Comptroller is satisfied that —\\n(a) an approved firm or company resident and carrying on\\nbusiness in Singapore has incurred, at any time between\\n1 July 2015 and 31 December 2025 (both dates inclusive),\\nsalary expenditure specified for it under subsection (7) for\\nits employees posted to an overseas establishment of the\\nfirm or company; and\\n(b) the firm or company has satisfied the conditions precedent\\nimposed under subsection (6) for a deduction under this\\nsection,\\nthen there is to be allowed to the firm or company —\\n(c) where such expenditure is allowable as a deduction under\\nsection 14, a further deduction of the amount of such\\nIncome Tax Act 1947\\n329\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nexpenditure in addition to the deduction allowed under that\\nsection; or\\n(d) where such expenditure is not allowable as a deduction\\nunder section 14, a deduction equal to twice the amount of\\nsuch expenditure.\\n[2/2016; 41/2020]\\n(2) No deduction is to be allowed under subsection (1) for salary\\nexpenditure that is incurred more than 3 years after either of the\\nfollowing dates:\\n(a) the date the overseas establishment is incorporated,\\nestablished or formed;\\n(b) if the overseas establishment (being a company) is an\\noverseas establishment of the approved firm or company as\\na result of any shareholding of the approved firm or\\ncompany in the establishment, but the firm or company did\\nnot hold any shares in the overseas establishment on the\\ndate of the establishment’s incorporation, the earliest date\\non which the firm or company acquires any shares in the\\noverseas establishment.\\n[2/2016]\\n(3) Subject to subsection (4), the amount of salary expenditure\\nallowed as a deduction for a year of assessment under subsection (1)\\nmust not exceed the amount specified for the firm or company under\\nsubsection (8).\\n[2/2016]\\n(4) The sum of —\\n(a) the amount of expenditure allowed as a deduction or a\\nfurther\\ndeduction\\nto\\na\\nfirm\\nor\\ncompany\\nunder\\nsubsection (1); and\\n(b) any amount of expenditure allowed as a deduction or a\\nfurther\\ndeduction\\nto\\nthe\\nfirm\\nor\\ncompany\\nunder\\nsection 14H(1),\\nmust not exceed $1 million for each year of assessment.\\n[2/2016]\\nIncome Tax Act 1947\\n2020 Ed.\\n330\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(5) The Minister or an authorised body may approve a firm or\\ncompany\\nfor\\nthe\\npurposes\\nof\\nclaiming\\na\\ndeduction\\nunder\\nsubsection (1).\\n[2/2016]\\n[Act 41 of 2020 wef 12/04/2024]\\n(6) When approving a firm or company under subsection (5), the\\nMinister or authorised body may impose conditions precedent and\\nconditions subsequent for a deduction under this section.\\n[2/2016]\\n[Act 41 of 2020 wef 12/04/2024]\\n(7) When approving a firm or company under subsection (5), the\\nMinister or authorised body must specify the salary expenditure for\\nwhich the firm or company may be allowed the deduction by\\nreference to —\\n(a) the employees for whom the expenditure is incurred;\\n(b) the overseas establishment in which they work;\\n(c) the\\nwork\\nwhich\\nthey\\ncarry\\nout\\nin\\nthe\\noverseas\\nestablishment; and\\n(d) the period in which the expenditure is incurred.\\n[2/2016]\\n[Act 41 of 2020 wef 12/04/2024]\\n(8) When approving a firm or company under subsection (5), the\\nMinister or authorised body may also specify the maximum amount\\nof expenditure for which the deduction is allowed.\\n[2/2016]\\n[Act 41 of 2020 wef 12/04/2024]\\n(9) No approval may be granted under subsection (5) after\\n31 December 2025.\\n[2/2016; 41/2020]\\n(10) No deduction may be allowed under subsection (1) in respect\\nof —\\n(a) any expenditure incurred during the basis period for a year\\nof assessment by a firm or company if —\\nIncome Tax Act 1947\\n331\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(i) any part of its income for that year of assessment is\\nexempt or partly exempt from tax under section 13A,\\n13E, 13P or 13S;\\n(ii) any part of its income for that year of assessment is\\nsubject to tax at a concessionary rate of tax under\\nsection 43C, 43D, 43E, 43G, 43I, 43J, 43L, 43P,\\n43Q, 43R, 43U, 43Vor 43X, or the regulations made\\nunder any of those sections; or\\n(iii) it is given tax relief under Part 2, 3 or 4 of the\\nEconomic\\nExpansion\\nIncentives\\n(Relief\\nfrom\\nIncome Tax) Act 1967 for that year of assessment,\\nor is given an investment allowance under Part 8 of\\nthat Act for that year of assessment; or\\n(b) any expenditure to the extent it is or is to be subsidised by a\\ngrant or subsidy from the Government or a statutory board.\\n[2/2016; 45/2018]\\n(11) Despite subsection (10), the Minister or an authorised body\\nmay, in any particular case, subject to such conditions precedent and\\nconditions subsequent as the Minister or authorised body may\\nimpose, allow a deduction of any expenditure referred to in\\nsubsection (10)(a).\\n[2/2016]\\n[Act 41 of 2020 wef 12/04/2024]\\n(12) A firm or company is not entitled to a deduction under\\nsubsection (1) for any salary expenditure if and to the extent that an\\noverseas establishment of the firm or company has been allowed at\\nany time a deduction for it under any law relating to income tax or tax\\nof a similar character of a country outside Singapore.\\n[2/2016]\\n(13) Despite anything in this section, where it appears to the\\nComptroller that in any year of assessment any deduction which has\\nbeen allowed under this section ought not to have been allowed, the\\nComptroller may, within the year of assessment or within 4 years\\nafter the expiry of that year of assessment, make such assessment or\\nadditional assessment upon the firm or company as may be necessary\\nto make good any loss of tax.\\n[2/2016]\\nIncome Tax Act 1947\\n2020 Ed.\\n332\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(14) If a condition subsequent imposed under subsection (6) is not\\ncomplied with in respect of any deduction allowed to a firm or\\ncompany under subsection (1) or part of such deduction, the\\ndeduction or part of the deduction is treated as the firm’s or\\ncompany’s income for the year of assessment in which the\\nComptroller discovers the non‑compliance.\\n[2/2016]\\n(15) If a condition subsequent imposed under subsection (11) is not\\ncomplied with, the deduction allowed to the firm or company under\\nthat subsection is treated as the firm’s or company’s income for the\\nyear of assessment in which the Comptroller discovers the\\nnon‑compliance.\\n[2/2016]\\n(16) Where a firm or company has been allowed a deduction under\\nsubsection (1) even though it is not entitled to it or a part of it by\\nreason of subsection (12), the deduction or part of the deduction is\\ntreated as the firm’s or company’s income for the year of assessment\\nin which the Comptroller discovers the facts by reason of which the\\nfirm or company is not entitled to the deduction or part of it.\\n[2/2016]\\n(17) If, at any time after a firm or company has been allowed a\\ndeduction under subsection (1) for any salary expenditure, the firm or\\ncompany is reimbursed for any amount of the expenditure, the\\namount of the deduction that corresponds to the expenditure\\nreimbursed is treated as the firm’s or company’s income for the\\nyear of assessment in which the Comptroller discovers the\\nreimbursement.\\n[2/2016]\\n(18) In this section —\\n“overseas establishment”, in relation to an approved firm or\\ncompany, means any of the following:\\n(a) a branch, representative office, or subsidiary of the\\nfirm or company that is established, formed or\\nincorporated in a country outside Singapore;\\n(b) a partnership of which the firm or company is a\\npartner, that is established or formed in a country\\noutside Singapore;\\nIncome Tax Act 1947\\n333\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) such other entity as the Minister or authorised body\\napproves as an overseas establishment of the firm or\\ncompany at the time of the approval of the firm or\\ncompany under subsection (5);\\n[Act 41 of 2020 wef 12/04/2024]\\n“salary expenditure”, in relation to an employee of a firm or\\ncompany, means expenditure comprising wages and salary\\nfor the employee, but excludes any bonus, commission,\\ngratuity, leave pay, perquisite, allowance, or any other\\npayment (whether in cash or kind) prescribed under section 7.\\n[2/2016]\\n(19) In this section, a firm or company is treated as having incurred\\nsalary expenditure for its employees posted to an overseas\\nestablishment of the firm or company, if —\\n(a) it directly incurs that amount of expenditure for which it is\\nnot reimbursed; or\\n(b) the overseas establishment directly incurs that amount of\\nexpenditure and the firm or company is liable to reimburse\\nthe overseas establishment for it, and the incurring of the\\nexpenditure and of the liability both occur —\\n(i) when the firm or company is an approved firm or\\ncompany resident and carrying on business in\\nSingapore; and\\n(ii) in the period between 1 July 2015 and 31 December\\n2025 (both dates inclusive).\\n[2/2016; 41/2020]\\n(20) In a case referred to in subsection (19)(b), the date on which\\nsalary expenditure is treated as incurred for the purposes of\\nsubsection (2) is the later of the date it is incurred by the overseas\\nestablishment and the date the firm or company incurs the liability to\\nreimburse the overseas establishment.\\n[2/2016]\\n(21) In relation to a deduction under this section, a condition is a\\ncondition subsequent if or to the extent that it can only be satisfied\\nafter the deduction is allowed, and a condition is a condition\\nprecedent if or to the extent that it is not a condition subsequent; and\\nIncome Tax Act 1947\\n2020 Ed.\\n334\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\naccordingly a condition may, depending on the circumstances, be\\neither a condition precedent or a condition subsequent.\\n[14KA\\n[2/2016]\\nDeduction for upfront land premium\\n14J.—(1) Where the Comptroller is satisfied that an upfront land\\npremium has been paid by a lessee to a relevant body in respect of a\\ndesignated lease for the construction or use of a building or structure\\nfor the purposes of carrying on any qualifying activity in that building\\nor structure, there is, subject to this section, allowed to the lessee, for\\neach year of assessment in the basis period for which the qualifying\\nactivity is carried on, a deduction of an amount of such expenditure\\nascertained by the formula\\nA\\nB ;\\nwhere A is the amount of upfront land premium paid; and\\nB is the number of years of the term of the designated\\nlease for which the upfront land premium was paid.\\n(2) Where an assignee has incurred any expenditure in acquiring\\nthe remaining term of a designated lease for the construction or use of\\na building or structure for the purposes of carrying on any qualifying\\nactivity, there is, subject to this section, allowed to the assignee, for\\neach year of assessment in the basis period for which the qualifying\\nactivity is carried on, a deduction of an amount of such expenditure\\nascertained by the formula\\nC\\nD ;\\nwhere C is —\\n(a) the residual expenditure immediately after the\\nassignment; or\\nIncome Tax Act 1947\\n335\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) the upfront land premium at the time of the\\nassignment as determined by the relevant body\\nfor the remaining term of the designated lease,\\nwhichever is the lower; and\\nD is the remaining number of years (excluding any part\\nof a year) of the term of the designated lease for which\\nthe upfront land premium was paid.\\n(3) Subsection (2) applies, with the necessary modifications, to any\\nsubsequent assignment of the remaining term of the designated lease.\\n(4) The total amount of deductions to be allowed —\\n(a) to a lessee under subsection (1), must not exceed the\\namount of the upfront land premium paid by the lessee to\\nthe relevant body in respect of the designated lease; and\\n(b) to an assignee under subsection (2) or (3) (as the case may\\nbe) must not exceed the amount of C as ascertained in the\\nformula in subsection (2).\\n(5) Where more than one‑tenth of the total built‑up area of a\\nbuilding or structure constructed on any industrial land under a\\ndesignated lease is not in use for any qualifying activity, no deduction\\nunder subsection (1), (2) or (3) is allowed in respect of such part of the\\nbuilding or structure which is not in use for any qualifying activity.\\n(6) No deduction is allowed under this section to any person for any\\nyear of assessment if the building or structure constructed on any\\nindustrial land under a designated lease is not in use for any\\nqualifying activity at the end of the basis period for that year of\\nassessment.\\n(7) The following provisions apply where a designated lease is\\nassigned:\\n(a) where the consideration received by the assignor for the\\nremaining term of the designated lease is less than the\\nresidual expenditure immediately before the assignment,\\nthe difference is allowed as a deduction to the assignor for\\nthe year of assessment in the basis period in which the\\nIncome Tax Act 1947\\n2020 Ed.\\n336\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nassignor assigns the remaining term of the designated\\nlease;\\n(b) where the consideration received by the assignor for the\\nremaining term of the designated lease is more than the\\nresidual expenditure immediately before the assignment,\\nthe difference is deemed to be income subject to tax under\\nsection 10(1)(g) and is included as income of the assignor\\nfor the year of assessment in the basis period in which the\\nassignor assigns the remaining term of the designated\\nlease.\\n(8) The amount deemed to be income of an assignor for the\\npurposes of subsection (7)(b) must not exceed the total amount of\\ndeduction allowed to the assignor under subsection (1), (2) or (3), as\\nthe case may be.\\n(9) In this section —\\n“designated lease” means any lease in respect of any industrial\\nland granted to a lessee by a relevant body —\\n(a) for a period of 30 years or less during the period from\\n1 January 1998 to the last day of the basis period for\\nthe year of assessment 2003 of the lessee (both dates\\ninclusive); or\\n(b) for a period of 60 years or less on or after the first day\\nof the basis period for the year of assessment 2004 of\\nthe lessee and before 28 February 2013,\\nand includes an assignment of such a lease;\\n“industrial land” means any land permitted to be used for\\nindustrial purposes under the Planning Act 1998;\\n“qualifying activity” means —\\n(a) any activity in respect of any of the purposes referred\\nto in section 18(1) other than the activities for\\npurposes referred to in section 18(1)(h) and (i);\\n(b) any activity in respect of any prescribed purposes\\nunder section 18(1)(j) other than any activity relating\\nIncome Tax Act 1947\\n337\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nto\\npostal\\nservices\\nor\\nto\\nthe\\norganisation\\nor\\nmanagement of exhibitions and conferences; and\\n(c) any activity relating to the examination of motor\\nvehicles for the purposes of section 90 of the Road\\nTraffic Act 1961 and the rules made under that Act;\\n“relevant body” means —\\n(a) the Housing and Development Board constituted\\nunder the Housing and Development Act 1959; or\\n(b) the Jurong Town Corporation constituted under the\\nJurong Town Corporation Act 1968;\\n“residual expenditure”, in relation to an assignment of a\\ndesignated lease, is the amount of expenditure available for\\ndeduction to the assignor reduced by —\\n(a) the amount of any deduction allowed to the assignor\\nunder this section; and\\n(b) the amount of any deduction not allowed to the\\nassignor under subsection (5) or (6),\\nand increased by any amount deemed to be income of the\\nassignor under subsection (7)(b);\\n“upfront land premium”, in relation to a designated lease, means\\nthe lump sum payment paid by a lessee to a relevant body at\\nthe commencement of the term of the designated lease.\\n[14N\\n[37/2014]\\nDeduction for special reserve of approved general insurer\\n14K.—(1) The Minister may by regulations provide that, for the\\npurpose of ascertaining the income of a general insurer approved by\\nthe Minister or such person as the Minister may appoint from carrying\\non the business of insuring and reinsuring offshore risks, there is to be\\nallowed for a period of 10 years a deduction for the prescribed\\namount of special reserves set aside by the approved general insurer\\nfor prescribed offshore risks.\\nIncome Tax Act 1947\\n2020 Ed.\\n338\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(2) Regulations made under subsection (1) may provide for —\\n(a) any amount transferred to the special reserve on an earlier\\ndate to be deemed to have been transferred out of the\\nspecial reserve first;\\n(b) the circumstances in which any amount which has been\\nallowed as deduction under this section may be deemed as\\ntrading receipt for any basis period;\\n(c) the adjustment of any amount deemed as trading receipt for\\nany basis period in respect of any amount which has been\\nallowed as deduction under this section; and\\n(d) generally for giving full effect to or for carrying out the\\npurposes of this section.\\n(3) In this section —\\n“insurer” has the meaning given by section 43C;\\n“offshore risk” has the meaning given by section 26.\\n[14O\\nDeduction for treasury shares transferred under employee\\nequity‑based remuneration scheme\\n14L.—(1) Where a company transfers, in the basis period for the\\nyear of assessment 2007 or any subsequent year of assessment,\\ntreasury shares held by it to any person under a stock option scheme\\nor a share award scheme by reason of any office or employment held\\nin Singapore by that person, there is allowed a deduction to that\\ncompany for that year of assessment.\\n(2) Subject to subsection (8), the amount of deduction to be allowed\\nto a company under subsection (1) is the cost to the company of\\nacquiring the treasury shares transferred to the person less any\\namount payable by that person for the treasury shares.\\n(3) For the purpose of subsection (2), the cost to the company of\\nacquiring the treasury shares is determined by any of the methods\\nreferred to in subsection (4), being (if the company has previously\\nbeen allowed a deduction under this section) the method consistently\\nIncome Tax Act 1947\\n339\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nadopted by it when ascertaining its cost of acquiring shares under this\\nsection.\\n(4) The methods referred to in subsection (3) are as follows:\\n(a) on the basis that the treasury shares acquired by the\\ncompany at an earlier point in time are deemed to be\\ntransferred first;\\n(b) on the basis of the formula\\nA\\nB \\u0003 C;\\nwhere A is the number of the treasury shares transferred;\\nB is the total number of treasury shares held by the\\ncompany immediately before the transfer; and\\nC is the total cost to the company of acquiring the\\ntreasury shares held by it immediately before the\\ntransfer;\\n(c) on the basis of the aggregate cost of all treasury shares\\ntransferred under subsection (1) within every regular\\ninterval in the basis period during which the transfer in\\nquestion occurred, where the cost of all treasury shares so\\ntransferred within a regular interval is ascertained by the\\nformula\\nD\\nE þ F\\nð\\nÞ \\u0003 G þ H\\nð\\nÞ;\\nwhere D is the total number of treasury shares transferred\\nunder subsection (1) within that interval;\\nE is the total number of treasury shares held by the\\ncompany at the end of the period equal in length to\\nthe regular interval immediately preceding that\\ninterval;\\nF is the total number of treasury shares acquired by\\nthe company within that interval;\\nIncome Tax Act 1947\\n2020 Ed.\\n340\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nG is the total cost to the company of acquiring the\\ntreasury shares held by it at the end of the period\\nequal in length to the regular interval immediately\\npreceding that interval; and\\nH is the total cost to the company of acquiring\\ntreasury shares within that interval.\\n(5) Where any amount payable by a person for any treasury shares\\ntransferred to the person exceeds the cost to the company of acquiring\\nthe treasury shares transferred as determined under subsection (3), the\\namount of the excess must be credited to an account to be kept by the\\ncompany for the purpose of this section.\\n(6) Where there is any balance in the account kept by the company\\nunder subsection (5) and any treasury shares are subsequently\\ntransferred by the company to any person under subsection (1), the\\ncost to the company of acquiring the treasury shares as determined\\nunder subsection (3) is reduced —\\n(a) where the amount of the balance is equal to or exceeds the\\namount of the cost, to zero; or\\n(b) where the amount of the balance is less than the amount of\\nthe cost, by the amount of the balance,\\nand the amount of the reduction must be debited to the account.\\n(7) For the purpose of this section, a company transfers treasury\\nshares held by it to a person when the person acquires the legal and\\nbeneficial interest in the treasury shares.\\n(8) Where a holding company transfers treasury shares held by it to\\nany person employed at any time by a subsidiary of the holding\\ncompany under a stock option scheme or a share award scheme —\\n(a) no deduction is allowed to the holding company under\\nsubsection (1);\\n(b) if any amount is paid or payable by the subsidiary to the\\nholding company for the transfer of the treasury shares,\\nthere is allowed to the subsidiary for the year of assessment\\nwhich relates to the basis period in which the shares are\\nIncome Tax Act 1947\\n341\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\ntransferred or in which the payment to the holding\\ncompany for the shares becomes due and payable\\n(whichever is the later), a deduction under subsection (1)\\nof the lower of —\\n(i) the amount, less any amount paid or payable by the\\nperson for the treasury shares, to the extent the\\namount so paid or payable has not been deducted\\nfrom the firstmentioned amount; and\\n(ii) an amount equal to the cost to the holding company\\nof acquiring the treasury shares transferred to that\\nperson as determined under subsection (8A) less any\\namount paid or payable by the person for the treasury\\nshares; and\\n[Act 33 of 2022 wef 04/11/2022]\\n(c) subsections (5) and (6) do not apply to a company to which\\nthis subsection applies.\\n[Act 33 of 2022 wef 04/11/2022]\\n(8A) For the purpose of subsection (8)(b), the amount equal to the\\ncost to the holding company of acquiring the treasury shares\\ntransferred to a person is determined —\\n(a) in accordance with subsection (3); or\\n(b) where the holding company is incorporated outside\\nSingapore and the following conditions are satisfied, on\\nthe basis that the treasury shares acquired by the holding\\ncompany at the latest point in time are deemed to be\\ntransferred first:\\n(i) the basis is in accordance with the accounting policy\\nof the group of companies of which the holding\\ncompany is a member;\\n(ii) if there are applicable accounting principles which\\nare generally accepted in the country in which the\\nholding company is incorporated, the basis is in\\naccordance with those principles;\\nIncome Tax Act 1947\\n2020 Ed.\\n342\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(iii) the basis is consistently adopted by the holding\\ncompany\\nunless\\notherwise\\nallowed\\nby\\nthe\\nComptroller; and\\n(iv) the Comptroller is satisfied that the basis is not\\nadopted for the purposes of deriving any tax benefit\\nor obtaining any tax advantage.\\n(9) In this section —\\n[Deleted by Act 33 of 2022 wef 04/11/2022]\\n“regular interval”, in relation to a basis period, means one of a\\nnumber of equal periods within the basis period —\\n(a) where the aggregate of all of those equal periods is\\nequal to the basis period; and\\n(b) where the duration of each equal period —\\n(i) in a case where the company has previously\\nbeen allowed a deduction under this section, is\\nthe one previously adopted by the company for\\nthe purpose of this section; or\\n(ii) in any other case, is any duration adopted by\\nthe company for the purpose of this section.\\n[14P\\nDeduction for shares transferred by special purpose vehicle\\nunder employee equity‑based remuneration scheme\\n14M.—(1) Where —\\n(a) a special purpose vehicle has acquired treasury shares or\\npreviously issued shares in a company and, in the basis\\nperiod for the year of assessment 2012 or any subsequent\\nyear of assessment, transfers those shares to any person\\nunder a stock option scheme or a share award scheme by\\nreason of any office or employment held in Singapore by\\nthat person in the company; and\\n(b) payment by the company for the shares transferred to the\\nperson has become due and payable,\\nIncome Tax Act 1947\\n343\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthen the company is allowed a deduction for the relevant year of\\nassessment of an amount referred to in subsection (2).\\n(2) The amount of deduction under subsection (1) is —\\n(a) where the transferred shares are previously issued shares,\\nthe lower of the following:\\n(i) the amount paid or payable by the company for the\\nshares, less any amount paid or payable by the person\\nfor the shares, to the extent the amount so paid or\\npayable\\nhas\\nnot\\nbeen\\ndeducted\\nfrom\\nthe\\nfirstmentioned amount;\\n(ii) the cost to the special purpose vehicle of acquiring\\nthe shares, less any amount paid or payable by the\\nperson for the shares; or\\n(b) where the transferred shares are treasury shares, either —\\n(i) the lowest of the following:\\n(A) the amount paid or payable by the company to\\nthe special purpose vehicle for the shares, less\\nany amount paid or payable by the person for\\nthe shares, to the extent the amount so paid or\\npayable has not been deducted from the\\nfirstmentioned amount;\\n(B) the cost to the special purpose vehicle of\\nacquiring the shares, less any amount paid or\\npayable by the person for the shares to the\\nextent the amount so paid or payable has not\\nbeen deducted from the amount paid or payable\\nby the special purpose vehicle to the company\\nfor those shares;\\n(C) the cost to the company of acquiring the shares,\\nless any amount paid or payable by the person\\nfor the shares; or\\n(ii) where\\nthe\\namounts\\nreferred\\nto\\nin\\nsub‑paragraph (i)(A) and (B) are both nil, the cost\\nIncome Tax Act 1947\\n2020 Ed.\\n344\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nto the company of acquiring the shares less any\\namount paid or payable by the person for the shares.\\n(3) For the purposes of subsection (2)(a)(ii) and (b)(i)(B), the cost\\nto the special purpose vehicle of acquiring the transferred shares is\\ndetermined by any of the methods referred to in subsection (4), being\\n(if the company has previously been allowed a deduction under this\\nsection for a transfer of shares by the special purpose vehicle) the\\nmethod that is consistently adopted by the special purpose vehicle\\nwhen ascertaining its cost of acquiring transferred shares under this\\nsection.\\n(4) The methods referred to in subsection (3) are as follows:\\n(a) on the basis that the company’s shares acquired by the\\nspecial purpose vehicle at an earlier point in time are\\ndeemed to be transferred first;\\n(b) on the basis of the formula\\nA\\nB \\u0003 C;\\nwhere A is the number of the transferred shares;\\nB is the total number of the company’s shares held\\nby the special purpose vehicle immediately\\nbefore the transfer; and\\nC is the total cost to the special purpose vehicle of\\nacquiring the company’s shares held by it\\nimmediately before the transfer;\\n(c) on the basis of the aggregate cost of all of the company’s\\nshares transferred by the special purpose vehicle under\\nsubsection (1) within every regular interval in the basis\\nperiod during which the transfer in question occurred,\\nwhere the cost of all shares so transferred within a regular\\ninterval is ascertained by the formula\\nD\\nE þ F\\nð\\nÞ \\u0003 G þ H\\nð\\nÞ;\\nIncome Tax Act 1947\\n345\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nwhere D is the total number of the company’s shares\\ntransferred by the special purpose vehicle under\\nsubsection (1) within that interval;\\nE is the total number of the company’s shares held\\nby the special purpose vehicle at the end of the\\nperiod equal in length to the regular interval\\nimmediately preceding that interval;\\nF is the total number of the company’s shares\\nacquired by the special purpose vehicle within\\nthat interval;\\nG is the total cost to the special purpose vehicle of\\nacquiring the company’s shares held by it at the\\nend of the period equal in length to the regular\\ninterval immediately preceding that interval; and\\nH is the total cost to the special purpose vehicle of\\nacquiring the company’s shares within that\\ninterval.\\n(5) For the purpose of subsection (2)(b)(i)(C) and (ii), the cost to the\\ncompany of acquiring the transferred shares is determined by any of\\nthe methods referred to in section 14L(4) as modified in accordance\\nwith subsection (6), being (if the company has previously been\\nallowed a deduction under this section) the method that is\\nconsistently adopted by the company when ascertaining its cost of\\nacquiring transferred shares under this section.\\n(6) The methods referred to in section 14L(4) apply for the\\npurposes of subsection (5) as if a reference to the transfer under\\nsection 14L were a reference to the transfer of the treasury shares by\\nthe company to the special purpose vehicle.\\n(7) Where —\\n(a) a special purpose vehicle has acquired treasury shares or\\npreviously issued shares in the holding company of another\\ncompany (called in this section the subsidiary company)\\nand, in the basis period for the year of assessment 2012 or\\nany subsequent year of assessment, transfers those shares\\nIncome Tax Act 1947\\n2020 Ed.\\n346\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nto a person under a stock option scheme or a share award\\nscheme by reason of any office or employment held in\\nSingapore by that person in the subsidiary company; and\\n(b) payment by the subsidiary company for the shares\\ntransferred to the person has become due and payable,\\nthen the subsidiary company is allowed a deduction for the relevant\\nyear of assessment of an amount referred to in subsection (8).\\n(8) The amount of deduction under subsection (7) is —\\n(a) where the transferred shares are previously issued shares,\\nthe lower of the following:\\n(i) the amount paid or payable by the subsidiary\\ncompany for the shares, less any amount paid or\\npayable by the person for the shares, to the extent the\\namount so paid or payable has not been deducted\\nfrom the firstmentioned amount;\\n(ii) the cost to the special purpose vehicle of acquiring\\nthe shares, less any amount paid or payable by the\\nperson for the shares; or\\n(b) where the transferred shares are treasury shares, either —\\n(i) the lowest of the following:\\n(A) the amount paid or payable by the subsidiary\\ncompany for the shares, less any amount paid\\nor payable by the person for the shares, to the\\nextent the amount so paid or payable has not\\nbeen\\ndeducted\\nfrom\\nthe\\nfirstmentioned\\namount;\\n(B) the cost to the special purpose vehicle of\\nacquiring the shares, less any amount paid or\\npayable by the person for the shares to the\\nextent the amount so paid or payable has not\\nbeen deducted from the amount paid or payable\\nby the special purpose vehicle to the holding\\ncompany for those shares;\\nIncome Tax Act 1947\\n347\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(C) the cost to the holding company of acquiring\\nthe shares, as determined in accordance with\\nsection 14L(8A), less any amount paid or\\npayable by the person for the shares; or\\n(ii) where the amount referred to in sub‑paragraph (i)(B)\\nis nil, the lower of the amounts referred to in\\nsub‑paragraph (i)(A) and (C).\\n(9) For the purpose of subsection (8), the cost to the special purpose\\nvehicle of acquiring the transferred shares is determined by any of the\\nmethods referred to in subsection (4) as modified in accordance with\\nsubsection (10), being (if the subsidiary company has previously been\\nallowed a deduction under this section for a transfer of shares by the\\nspecial purpose vehicle) the method that is consistently adopted by\\nthe special purpose vehicle when ascertaining its cost of acquiring\\nshares under this section.\\n(10) The methods referred to in subsection (4) apply for the\\npurposes of subsection (9) as if —\\n(a) a reference to the company is a reference to the holding\\ncompany; and\\n(b) a\\nreference\\nto\\nsubsection\\n(1)\\nis\\na\\nreference\\nto\\nsubsection (7).\\n(11) For the purposes of this section, shares are transferred to a\\nperson when both the legal and beneficial interests in the shares are so\\ntransferred.\\n(12) No deduction is allowed to a company under this section if a\\ndeduction has already been allowed to the company under any other\\nprovision of this Act in respect of the transferred shares.\\n(13) In this section —\\n“group of companies” means 2 or more companies each of\\nwhich is either a holding company or subsidiary of the other\\nor any of the others;\\n[Deleted by Act 33 of 2022 wef 04/11/2022]\\nIncome Tax Act 1947\\n2020 Ed.\\n348\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“previously issued shares”, in relation to a company, means\\nshares previously issued by the company and acquired by the\\nspecial purpose vehicle —\\n(a) on a stock exchange in Singapore or elsewhere; or\\n(b) from a person other than the company which issued\\nthe shares;\\n“regular interval”, in relation to a basis period, means one of a\\nnumber of equal periods within the basis period —\\n(a) where the aggregate of all of those equal periods is\\nequal to the basis period; and\\n(b) where the duration of each equal period —\\n(i) in a case where the company or subsidiary\\ncompany\\nhas\\npreviously\\nbeen\\nallowed\\na\\ndeduction under this section for a transfer of\\nshares by the special purpose vehicle, is the one\\npreviously adopted by the special purpose\\nvehicle for the purpose of this section; or\\n(ii) in any other case, is any duration adopted by\\nthe special purpose vehicle for the purpose of\\nthis section;\\n“relevant year of assessment” means the year of assessment\\nwhich relates to the basis period in which the later of the\\nfollowing occurs:\\n(a) the transfer of the shares under subsection (1) or (7)\\n(as the case may be) to the person under a stock\\noption scheme or a share award scheme by reason of\\nany office or employment held in Singapore by that\\nperson in the company or subsidiary company, as the\\ncase may be;\\n(b) the payment by the company or subsidiary company\\n(as the case may be) for the shares so transferred\\nbecomes due and payable;\\nIncome Tax Act 1947\\n349\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“special purpose vehicle” means a trustee of a trust (when acting\\nin such capacity) that is set up solely for the administration of\\na stock option scheme or share award scheme under which —\\n(a) in the case of subsection (1), either —\\n(i) shares in the company referred to in that\\nsubsection\\nare\\nto\\nbe\\nused\\nfor\\nthe\\nremuneration of a person by reason of any\\noffice or employment held by that person in the\\ncompany; or\\n(ii) shares in one company within a group of\\ncompanies to which the company referred to\\nin that subsection belongs, are to be used for the\\nremuneration of a person by reason of any\\noffice or employment held by that person in a\\ncompany within the same group of companies;\\nor\\n(b) in the case of subsection (7), shares in one company\\nwithin a group of companies to which both the\\nholding company and subsidiary company referred to\\nin that subsection belong, are to be used for the\\nremuneration of a person by reason of any office or\\nemployment held by that person in a company within\\nthe same group of companies.\\n[14PA\\nDeduction for renovation or refurbishment expenditure\\n14N.—(1) Subject to this section, where any person carrying on a\\ntrade, profession or business has incurred on or after 16 February\\n2008 expenditure on any renovation or refurbishment works for the\\npurposes of that trade, profession or business (called in this section\\nrenovation or refurbishment expenditure), the person may claim a\\ndeduction in respect of the renovation or refurbishment expenditure\\nin accordance with this section.\\n(2) Any claim for renovation or refurbishment expenditure under\\nthis section must be made at the time of lodgment of the return of\\nincome for the year of assessment relating to the basis period in which\\nIncome Tax Act 1947\\n2020 Ed.\\n350\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthe expenditure is incurred or within such further time as the\\nComptroller may allow.\\n(3) For\\nthe\\npurposes\\nof\\nsubsection\\n(1)\\nand\\nsubject\\nto\\nsubsections (7), (8), (8A) and (9), a deduction is allowed for\\none‑third of the renovation or refurbishment expenditure for the basis\\nperiod in which the expenditure was incurred and the balance is to be\\nallowed by 2 equal deductions, one for each of the basis periods for\\nthe next 2 succeeding years of assessment.\\n(3A) Despite subsection (3), for the purposes of subsection (1) and\\nsubject to subsections (7), (8), (8A) and (9), where the renovation or\\nrefurbishment expenditure is incurred during the basis period relating\\nto the year of assessment 2021, 2022 or 2024, a deduction is allowed\\nfor that year of assessment for the full amount of the renovation or\\nrefurbishment expenditure so incurred, unless a person elects for the\\ndeduction to be allowed in accordance with subsection (3).\\n[41/2020; 27/2021]\\n[Act 30 of 2023 wef 30/10/2023]\\n(3B) An election made by a person under subsection (3A) is\\nirrevocable.\\n(4) For\\nthe\\npurposes\\nof\\nthis\\nsection,\\nany\\nrenovation\\nor\\nrefurbishment expenditure incurred by any person prior to the\\ncommencement of that person’s trade, profession or business is\\ndeemed to have been incurred by that person on the first day that\\nperson carries on that trade, profession or business but the deduction\\nfor this is subject to section 14X.\\n[34/2016]\\n(5) Where it appears to the Comptroller that a deduction under this\\nsection which has been allowed to any person in any year of\\nassessment\\nought\\nnot\\nto\\nhave\\nbeen\\nallowed\\nby\\nvirtue\\nof\\nsubsection (9)(a), there is deemed to be income of the person\\nchargeable to tax, for the year of assessment in which the Comptroller\\ndiscovers the incorrect claim, an amount equal to such deduction.\\n(6) [Deleted by Act 32 of 2019]\\nIncome Tax Act 1947\\n351\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(7) A person is not entitled to —\\n(a) a deduction for renovation or refurbishment expenditure\\nunder this section where a deduction or an allowance for\\nthat expenditure is allowed under any other provision of\\nthis Act;\\n(b) a deduction for renovation or refurbishment expenditure\\nunder this section in any basis period subsequent to the\\nbasis period in which the person permanently ceases the\\ntrade, profession or business for which purpose the\\nexpenditure was incurred; or\\n(c) [Deleted by Act 32 of 2019]\\n(d) [Deleted by Act 32 of 2019]\\n(e) [Deleted by Act 32 of 2019]\\n(f) a deduction for any amount of renovation or refurbishment\\nexpenditure incurred by a person during a specified period\\nthat begins with the basis period for the year of\\nassessment 2013 or any subsequent year of assessment\\nthat is in excess of $300,000 of such expenditure.\\n[32/2019]\\n(8) In subsection (7)(f), “specified period” means a period of\\n3 consecutive basis periods beginning with the basis period for the\\nyear of assessment in which a deduction is first allowed to the person\\nunder this section, or any successive period of 3 consecutive basis\\nperiods.\\n[32/2019]\\n(8A) Subsection (7)(f) applies for the purpose of determining the\\ntotal amount of the deductions to be allowed to all the partners of a\\npartnership carrying on a trade, profession or business, for the\\nrenovation or refurbishment expenditure incurred by the partnership,\\nas if —\\n(a) references in those provisions to an amount of renovation\\nor refurbishment expenditure incurred by a person were\\nreferences to an amount of such expenditure incurred by\\nthe partnership; and\\nIncome Tax Act 1947\\n2020 Ed.\\n352\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) references in those provisions to a specified period were\\nreferences to a period of 3 consecutive basis periods\\nbeginning with the basis period for the year of assessment\\nin which a deduction is first allowed to any partner of the\\npartnership under this section for the renovation or\\nrefurbishment expenditure incurred by the partnership, or\\nany successive period of 3 consecutive basis periods.\\n[32/2019]\\n(9) No deduction is allowed to a person under this section for any\\nrenovation or refurbishment expenditure relating to —\\n(a) unless otherwise approved by the Minister or such person\\nas\\nthe\\nMinister\\nmay\\nappoint,\\nany\\nrenovation\\nor\\nrefurbishment works, the plans of which require the\\napproval of the Commissioner of Building Control under\\nthe Building Control Act 1989;\\n(b) any designer or professional fees;\\n(c) any antique;\\n(d) any type of fine art, including any painting, drawing, print,\\ncalligraphy, mosaic, sculpture, pottery or art installation;\\n(da) any works carried out in relation to a place of residence\\nprovided or to be provided by the person to the person’s\\nemployees, where the expenditure is incurred on or after\\n18 December 2012; or\\n(e) such other item as may be prescribed by the Minister by\\nregulations.\\n[14Q\\nDeduction for qualifying training expenditure for years of\\nassessment 2011 to 2018\\n14O.—(1) Subject to this section, for the purpose of ascertaining\\nthe income of a person carrying on a trade or business during the basis\\nperiod\\nfor\\nthe\\nyear\\nof\\nassessment\\n2011\\nor\\nthe\\nyear\\nof\\nassessment 2012, there is allowed in respect of all of the person’s\\ntrades and businesses, in addition to the deduction under section 14, a\\ndeduction for qualifying training expenditure incurred for the\\nIncome Tax Act 1947\\n353\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\npurposes of those trades and businesses computed in accordance with\\nthe formula\\nA \\u0003 300%;\\nwhere A is —\\n(a) for the year of assessment 2011, the lower of the following:\\n(i) such expenditure incurred during the basis period for\\nthat year of assessment;\\n(ii) $800,000; and\\n(b) for the year of assessment 2012, the lower of the following:\\n(i) such expenditure incurred during the basis period for\\nthat year of assessment;\\n(ii) the balance after deducting from $800,000 the lower\\nof the amounts specified in paragraph (a)(i) and (ii).\\n(2) Subject to this section and section 37J, for the purpose of\\nascertaining the income of a person carrying on a trade or business\\nduring the basis period for the year of assessment 2013, the year of\\nassessment 2014 or the year of assessment 2015, there is allowed in\\nrespect of all of the person’s trades and businesses, in addition to the\\ndeduction allowed under section 14, a deduction for qualifying\\ntraining expenditure incurred for the purposes of those trades and\\nbusinesses computed in accordance with the formula\\nA \\u0003 300%;\\nwhere A is —\\n(a) for the year of assessment 2013, the lower of the following:\\n(i) such expenditure incurred during the basis period for\\nthat year of assessment;\\n(ii) $1,200,000;\\n(b) for the year of assessment 2014, the lower of the following:\\n(i) such expenditure incurred during the basis period for\\nthat year of assessment;\\nIncome Tax Act 1947\\n2020 Ed.\\n354\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(ii) the balance after deducting from $1,200,000 the\\nlower of the amounts specified in paragraph (a)(i)\\nand (ii); and\\n(c) for the year of assessment 2015, the lower of the following:\\n(i) such expenditure incurred during the basis period for\\nthat year of assessment;\\n(ii) the balance after deducting from $1,200,000 the\\nlower of the amounts specified in paragraph (a)(i)\\nand (ii), and the lower of the amounts specified in\\nparagraph (b)(i) and (ii).\\n[37/2014]\\n(2A) Subject to this section and section 37J, for the purpose of\\nascertaining the income of a person carrying on a trade or business\\nduring the basis period for the year of assessment 2016, 2017 or 2018,\\nthere is allowed in respect of all of the person’s trades and businesses,\\nin addition to the deduction allowed under section 14, a deduction for\\nqualifying training expenditure incurred for the purposes of those\\ntrades and businesses computed in accordance with the formula\\nA \\u0003 300%;\\nwhere A is —\\n(a) for the year of assessment 2016, the lower of the following:\\n(i) such expenditure incurred during the basis period for\\nthat year of assessment;\\n(ii) $1,200,000;\\n(b) for the year of assessment 2017, the lower of the following:\\n(i) such expenditure incurred during the basis period for\\nthat year of assessment;\\n(ii) the balance after deducting from $1,200,000 the\\nlower of the amounts specified in paragraph (a)(i)\\nand (ii); and\\nIncome Tax Act 1947\\n355\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) for the year of assessment 2018, the lower of the following:\\n(i) such expenditure incurred during the basis period for\\nthat year of assessment;\\n(ii) the balance after deducting from $1,200,000 the\\nlower of the amounts specified in paragraph (a)(i)\\nand (ii), and the lower of the amounts specified in\\nparagraph (b)(i) and (ii).\\n[37/2014]\\n(3) No deduction is allowed to a person under this section in respect\\nof any expenditure which is not allowed as a deduction under\\nsection 14.\\n(4) In subsection (1), the amount under paragraph (a)(ii) is\\nsubstituted with “$400,000” if the person does not carry on any\\ntrade or business during the basis period for the year of\\nassessment 2012, and the balance under paragraph (b)(ii) is\\nsubstituted with “$400,000” if the person does not carry on any\\ntrade or business during the basis period for the year of\\nassessment 2011.\\n(5) In subsection (2) —\\n(a) if the person does not carry on any trade or business during\\nthe basis period for any one year of assessment between the\\nyear of assessment 2013 and the year of assessment 2015\\n(both years inclusive), the references to “$1,200,000” in\\nthe paragraphs of that subsection applicable to the other\\n2\\nyears\\nof\\nassessment\\nare\\neach\\nsubstituted\\nwith\\n“$800,000”;\\n(b) if the person does not carry on any trade or business during\\nthe basis periods for any 2 years of assessment between the\\nyear of assessment 2013 and the year of assessment 2015\\n(both years inclusive), the reference to “$1,200,000” in the\\nparagraph of that subsection applicable to the remaining\\nyear of assessment is substituted with “$400,000”; and\\n(c) to avoid doubt, no deduction may be made from the\\nsubstituted amount in subsection (2)(b)(ii) or (c)(ii) of the\\nlower of the amounts specified in subsection (2)(a)(i) and\\nIncome Tax Act 1947\\n2020 Ed.\\n356\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(ii) if the person does not carry on any trade or business\\nduring the basis period for the year of assessment 2013,\\nand no deduction may be made from the substituted\\namount in subsection (2)(c)(ii) of the lower of the amounts\\nspecified in subsection (2)(b)(i) and (ii) if the person does\\nnot carry on any trade or business during the basis period\\nfor the year of assessment 2014.\\n(5AA) In subsection (2A) —\\n(a) if the person does not carry on any trade or business during\\nthe basis period for any one year of assessment between the\\nyears of assessment 2016 and 2018 (both years inclusive),\\nthe references to “$1,200,000” in the paragraphs of that\\nsubsection applicable to the other 2 years of assessment are\\neach substituted with “$800,000”;\\n(b) if the person does not carry on any trade or business during\\nthe basis periods for any 2 years of assessment between the\\nyears of assessment 2016 and 2018 (both years inclusive),\\nthe reference to “$1,200,000” in the paragraphs of that\\nsubsection applicable to the remaining year of assessment\\nis substituted with “$400,000”; and\\n(c) to avoid doubt, no deduction may be made from the\\nsubstituted amount in subsection (2A)(b)(ii) or (c)(ii) of\\nthe lower of the amounts specified in subsection (2A)(a)(i)\\nand (ii) if the person does not carry on any trade or business\\nduring the basis period for the year of assessment 2016,\\nand no deduction may be made from the substituted\\namount in subsection (2A)(c)(ii) of the lower of the\\namounts specified in subsection (2A)(b)(i) and (ii) if the\\nperson does not carry on any trade or business during the\\nbasis period for the year of assessment 2017.\\n[37/2014]\\n(5A) For the purposes of subsections (1), (2) and (2A), where an\\nindividual carrying on a trade or business through 2 or more firms\\n(excluding partnerships) has, during the basis period for any year of\\nassessment between the year of assessment 2011 and the year of\\nassessment 2018 (both years inclusive), incurred qualifying training\\nIncome Tax Act 1947\\n357\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nexpenditure in respect of such firms for the purposes of his or her\\ntrade or business, the deduction that may be allowed to him or her for\\nthat expenditure in respect of all of his or her trades and businesses\\nmust not exceed the amount computed in accordance with\\nsubsection (1), (2) or (2A) (as the case may be) for that year of\\nassessment.\\n[37/2014]\\n(5B) For the purposes of subsections (1), (2) and (2A), where a\\npartnership carrying on a trade or business has, during the basis\\nperiod\\nfor\\nany\\nyear\\nof\\nassessment\\nbetween\\nthe\\nyear\\nof\\nassessment 2011 and the year of assessment 2018 (both years\\ninclusive), incurred qualifying training expenditure for the purposes\\nof its trade or business, the aggregate of the deductions that may be\\nallowed to all the partners of the partnership for that expenditure in\\nrespect of all of the trades and businesses of the partnership must not\\nexceed the amount computed in accordance with subsection (1), (2)\\nor (2A) (as the case may be) for that year of assessment.\\n[37/2014]\\n(6) In this section —\\n“accredited”, in relation to a course, means accredited —\\n(a) by the Singapore Workforce Development Agency\\nbefore 4 October 2016; or\\n(b) by the SkillsFuture Singapore Agency on or after that\\ndate;\\n“central hirer”, in relation to a central hiring arrangement for a\\ngroup of related parties, means the person who carries out\\nhiring functions for those parties under the arrangement;\\n“central hiring arrangement” means an arrangement for a group\\nof related parties entered into for a bona fide commercial\\nreason, where the hiring functions of the parties in the group\\nare carried out by a single person;\\n“employee”, for the purposes of the year of assessment 2012 and\\nsubsequent years of assessment, and in relation to a person\\ncarrying on a trade or business (called in this definition the\\nIncome Tax Act 1947\\n2020 Ed.\\n358\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nfirst person), includes an individual within such class of\\nindividuals as may be prescribed —\\n(a) who is either —\\n(i) engaged by the first person (whether as agent,\\nindependent contractor or otherwise) to carry\\non that trade or business; or\\n(ii) engaged by another person (whether as agent,\\nindependent contractor or otherwise) to carry\\non that trade or business, where that other\\nperson also engages the first person (whether as\\nagent, independent contractor or otherwise)\\nboth to carry on that trade or business and to\\noversee the individual in carrying on that trade\\nor business; or\\n(b) to whom the first person leases property, in the course\\nof such trade or business, to enable the individual to\\nprovide a service to any person;\\n“employee”, for the purposes of the year of assessment 2014 and\\nsubsequent years of assessment, and in relation to a person\\ncarrying on a trade or business (called in this definition the\\nfirst person), includes —\\n(a) an individual —\\n(i) who is engaged by the central hirer of a central\\nhiring arrangement for a group of related\\nparties which includes the first person, and\\nwho is deployed to work solely for the first\\nperson; and\\n(ii) whose\\nsalary\\nand\\nother\\nremuneration\\n(including training expenditure incurred in\\nrespect of the individual) is borne, directly or\\nindirectly, by the first person and not claimed\\nby the central hirer as a deduction against the\\ncentral hirer’s own income; and\\nIncome Tax Act 1947\\n359\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) an individual —\\n(i) being an employee of another person, who is\\nseconded to the first person under a bona fide\\ncommercial arrangement to work solely for the\\nfirst person; and\\n(ii) whose\\nsalary\\nand\\nother\\nremuneration\\n(including training expenditure in respect of\\nthe individual) is borne, directly or indirectly,\\nby the first person and not claimed by the other\\nperson as a deduction against the other person’s\\nown income;\\n“qualifying training expenditure” means —\\n(a) any\\ntraining\\nexpenditure\\nincurred\\ndirectly\\nin\\nproviding for employees —\\n(i) a\\nWorkforce\\nSkills\\nQualification\\n(WSQ)\\ntraining\\ncourse\\nwhich\\nis\\naccredited\\nand\\nconducted\\nby\\na\\nWSQ\\nin‑house\\ntraining\\nprovider;\\n(ii) a course approved by the Institute of Technical\\nEducation (ITE) under the ITE Approved\\nTraining Centre scheme;\\n(iii) on‑the‑job training by an on‑the‑job training\\ncentre which is certified by the ITE; or\\n(iv) for the purposes of the year of assessment 2012\\nand subsequent years of assessment, any other\\nin‑house training course,\\n(a) and includes any salary and other remuneration paid\\nto in‑house trainers for conducting such courses and\\ntraining (based on the hours spent in conducting the\\ncourses and training), but excludes salaries and other\\nremuneration or payments of any employee attending\\nor providing administrative support for the courses\\nand imputed overheads like rental and the cost of\\nutilities;\\nIncome Tax Act 1947\\n2020 Ed.\\n360\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) course fees for employees paid (whether directly or in\\nthe form of reimbursement) to an external training\\nprovider, including —\\n(i) registration or enrolment fees;\\n(ii) examination fees;\\n(iii) tuition fees; and\\n(iv) aptitude test fees; and\\n(c) rental of training facilities for any course or training\\nreferred to in paragraph (a) or (b), expenditure for\\nmeals and refreshments provided during any such\\ncourse or training, and expenditure for training\\nmaterials and stationery used for any such course\\nor training,\\nbut excludes any accommodation, travelling or transportation\\nexpenditure incurred in respect of employees attending or\\nconducting the course or training, or, for the purposes of the\\nyear of assessment 2012 and subsequent years of assessment,\\nany expenditure to the extent that it is recovered or\\nrecoverable from the employee.\\n[Act 33 of 2022 wef 04/11/2022]\\n[Deleted by Act 33 of 2022 wef 04/11/2022]\\n[37/2014; 24/2016]\\n(7) Any expenditure incurred during any basis period for a training\\ncourse referred to in paragraph (a)(iv) of the definition of “qualifying\\ntraining expenditure” in subsection (6), including the rental of\\ntraining facilities for the course, expenditure for meals and\\nrefreshments provided during the course, and expenditure for\\ntraining materials and stationery used for the course, that is in\\nexcess of $10,000 must be disregarded for the purposes of the\\ncomputation of a deduction under subsection (1), (2) or (2A).\\n[37/2014]\\n(8) For the purposes of the year of assessment 2011 and subsequent\\nyears of assessment, a reference in this section to qualifying training\\nexpenditure excludes any expenditure to the extent that it is or is to be\\nIncome Tax Act 1947\\n361\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nsubsidised by grants or subsidies from the Government or a statutory\\nboard.\\n[14R\\n[Act 30 of 2023 wef 30/10/2023]\\nDeduction for qualifying design expenditure\\n14P.—(1) Subject to this section, for the purpose of ascertaining\\nthe income of a person carrying on a trade or business during the basis\\nperiod\\nfor\\nthe\\nyear\\nof\\nassessment\\n2011\\nor\\nthe\\nyear\\nof\\nassessment 2012, there are allowed, in respect of all of the person’s\\ntrades and businesses, the following deductions for qualifying design\\nexpenditure incurred for the purposes of those trades and businesses\\nduring each basis period:\\n(a) where such expenditure is allowable as a deduction under\\nsection 14, a deduction of 300% of A, in addition to the\\ndeduction allowed under that section; and\\n(b) where such expenditure is not allowable as a deduction\\nunder section 14, a deduction of 400% of A,\\nwhere A is —\\n(c) for the year of assessment 2011, the lower of the following:\\n(i) such expenditure incurred during the basis period for\\nthat year of assessment;\\n(ii) $800,000; and\\n(d) for the year of assessment 2012, the lower of the following:\\n(i) such expenditure incurred during the basis period for\\nthat year of assessment;\\n(ii) the balance after deducting from $800,000 the lower\\nof the amounts specified in paragraph (c)(i) and (ii).\\n(2) Subject to this section and section 37J, for the purpose of\\nascertaining the income of a person carrying on a trade or business\\nduring the basis period for the year of assessment 2013, the year of\\nassessment 2014 or the year of assessment 2015, there are allowed, in\\nrespect of all of the person’s trades and businesses, the following\\nIncome Tax Act 1947\\n2020 Ed.\\n362\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\ndeductions for qualifying design expenditure incurred for the\\npurposes of those trades and businesses during the basis period:\\n(a) where such expenditure is allowable as a deduction under\\nsection 14, a deduction of 300% of A, in addition to the\\ndeduction allowed under that section; and\\n(b) where such expenditure is not allowable as a deduction\\nunder section 14, a deduction of 400% of A,\\nwhere A is —\\n(c) for the year of assessment 2013, the lower of the following:\\n(i) such expenditure incurred during the basis period for\\nthat year of assessment;\\n(ii) $1,200,000;\\n(d) for the year of assessment 2014, the lower of the following:\\n(i) such expenditure incurred during the basis period for\\nthat year of assessment;\\n(ii) the balance after deducting from $1,200,000 the\\nlower of the amounts specified in paragraph (c)(i)\\nand (ii); and\\n(e) for the year of assessment 2015, the lower of the following:\\n(i) such expenditure incurred during the basis period for\\nthat year of assessment;\\n(ii) the balance after deducting from $1,200,000 the\\nlower of the amounts specified in paragraph (c)(i)\\nand (ii), and the lower of the amounts specified in\\nparagraph (d)(i) and (ii).\\n[37/2014]\\n(2AA) Subject to this section and section 37J, for the purpose of\\nascertaining the income of a person carrying on a trade or business\\nduring the basis period for the year of assessment 2016, 2017 or 2018,\\nthere are allowed, in respect of all of the person’s trades and\\nbusinesses,\\nthe\\nfollowing\\ndeductions\\nfor\\nqualifying\\ndesign\\nexpenditure\\nincurred\\nfor\\nthe\\npurposes\\nof\\nthose\\ntrades\\nand\\nbusinesses during the basis period:\\nIncome Tax Act 1947\\n363\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(a) where such expenditure is allowable as a deduction under\\nsection 14, a deduction of 300% of A, in addition to the\\ndeduction allowed under that section; and\\n(b) where such expenditure is not allowable as a deduction\\nunder section 14, a deduction of 400% of A,\\nwhere A is —\\n(c) for the year of assessment 2016, the lower of the following:\\n(i) such expenditure incurred during the basis period for\\nthat year of assessment;\\n(ii) $1,200,000;\\n(d) for the year of assessment 2017, the lower of the following:\\n(i) such expenditure incurred during the basis period for\\nthat year of assessment;\\n(ii) the balance after deducting from $1,200,000 the\\nlower of the amounts specified in paragraph (c)(i)\\nand (ii); and\\n(e) for the year of assessment 2018, the lower of the following:\\n(i) such expenditure incurred during the basis period for\\nthat year of assessment;\\n(ii) the balance after deducting from $1,200,000 the\\nlower of the amounts specified in paragraph (c)(i)\\nand (ii), and the lower of the amounts specified in\\nparagraph (d)(i) and (ii).\\n[37/2014]\\n(2A) In subsection (1), the amount under paragraph (c)(ii) is\\nsubstituted with “$400,000” if the person does not carry on any trade\\nor business during the basis period for the year of assessment 2012,\\nand the balance under paragraph (d)(ii) is substituted with\\n“$400,000” if the person does not carry on any trade or business\\nduring the basis period for the year of assessment 2011.\\n(2B) In subsection (2) —\\n(a) if the person does not carry on any trade or business during\\nthe basis period for any one year of assessment between the\\nIncome Tax Act 1947\\n2020 Ed.\\n364\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nyear of assessment 2013 and the year of assessment 2015\\n(both years inclusive), the references to “$1,200,000” in\\nthe paragraphs of that subsection applicable to the other\\n2\\nyears\\nof\\nassessment\\nare\\neach\\nsubstituted\\nwith\\n“$800,000”;\\n(b) if the person does not carry on any trade or business during\\nthe basis periods for any 2 years of assessment between the\\nyear of assessment 2013 and the year of assessment 2015\\n(both years inclusive), the reference to “$1,200,000” in the\\nparagraph of that subsection applicable to the remaining\\nyear of assessment is substituted with “$400,000”; and\\n(c) to avoid doubt, no deduction may be made from the\\nsubstituted amount in subsection (2)(d)(ii) or (e)(ii) of the\\nlower of the amounts specified in subsection (2)(c)(i) and\\n(ii) if the person does not carry on any trade or business\\nduring the basis period for the year of assessment 2013,\\nand no deduction may be made from the substituted\\namount in subsection (2)(e)(ii) of the lower of the amounts\\nspecified in subsection (2)(d)(i) and (ii) if the person does\\nnot carry on any trade or business during the basis period\\nfor the year of assessment 2014.\\n(2C) In subsection (2AA) —\\n(a) if the person does not carry on any trade or business during\\nthe basis period for any one year of assessment between the\\nyears of assessment 2016 and 2018 (both years inclusive),\\nthe references to “$1,200,000” in the paragraphs of that\\nsubsection applicable to the other 2 years of assessment are\\neach substituted with “$800,000”;\\n(b) if the person does not carry on any trade or business during\\nthe basis periods for any 2 years of assessment between the\\nyears of assessment 2016 and 2018 (both years inclusive),\\nthe reference to “$1,200,000” in the paragraphs of that\\nsubsection applicable to the remaining year of assessment\\nis substituted with “$400,000”; and\\n(c) to avoid doubt, no deduction may be made from the\\nsubstituted amount in subsection (2AA)(d)(ii) and (e)(ii) of\\nIncome Tax Act 1947\\n365\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthe\\nlower\\nof\\nthe\\namounts\\nspecified\\nin\\nsubsection (2AA)(c)(i) and (ii) if the person does not\\ncarry on any trade or business during the basis period for\\nthe year of assessment 2016, and no deduction may be\\nmade\\nfrom\\nthe\\nsubstituted\\namount\\nin\\nsubsection (2AA)(e)(ii) of the lower of the amounts\\nspecified in subsection (2AA)(d)(i) and (ii) if the person\\ndoes not carry on any trade or business during the basis\\nperiod for the year of assessment 2017.\\n[37/2014]\\n(3) For the purposes of subsections (1), (2) and (2AA), where an\\nindividual carrying on a trade or business through 2 or more firms\\n(excluding partnerships) has incurred qualifying design expenditure\\nduring the basis period for any year of assessment between the year of\\nassessment 2011 and the year of assessment 2018 (both years\\ninclusive) in respect of such firms for the purposes of his or her trade\\nor business, the deduction that may be allowed to him or her for that\\nexpenditure in respect of all of his or her trades and businesses must\\nnot exceed the amount computed in accordance with subsection (1),\\n(2) or (2AA) (as the case may be) for that year of assessment.\\n[37/2014]\\n(4) For the purposes of subsections (1), (2) and (2AA), where a\\npartnership carrying on a trade or business has incurred qualifying\\ndesign expenditure during the basis period for any year of assessment\\nbetween the year of assessment 2011 and the year of assessment 2018\\n(both years inclusive) for the purposes of its trade or business, the\\naggregate of the deductions that may be allowed to all the partners of\\nthe partnership for that expenditure in respect of all of the trades and\\nbusinesses of the partnership must not exceed the amount computed\\nin accordance with subsection (1), (2) or (2AA) (as the case may be)\\nfor that year of assessment.\\n[37/2014]\\n(5) For the purpose of this section, any expenditure incurred by a\\nperson prior to the commencement of that person’s trade or business\\nis deemed to have been incurred by that person on the first day on\\nwhich that person carries on that trade or business but a deduction for\\nthis is subject to section 14X.\\n[34/2016]\\nIncome Tax Act 1947\\n2020 Ed.\\n366\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(6) In this section —\\n“approved design service provider” means any person who\\nprovides design consultancy services for any trade or\\nbusiness, and who is approved by the Minister or such\\nperson as the Minister may appoint;\\n“industrial\\nor\\nproduct\\ndesign”\\nmeans\\nthe\\nprofessional\\nspecifications of creating and developing concepts or\\nspecifications that improve or enhance the functions, value\\nor appearance of physical products, taking into account users’\\nneeds, marketability and production;\\n“qualified designer” means an individual with a design‑related\\ntertiary academic qualification of at least a diploma that is\\napproved by such person as the Minister may appoint;\\n“qualifying design expenditure” means —\\n(a) expenditure incurred by the person on the staff costs\\nof in‑house qualified designers which are attributable\\nto an industrial or product design project approved\\nunder subsection (7) and undertaken primarily in\\nSingapore and directly by that person; and\\n(b) where an approved design service provider has been\\nengaged by the person to undertake primarily in\\nSingapore for the trade or business in question an\\nindustrial or product design project approved under\\nsubsection (7) —\\n(i) where more than 60% of all payments made by\\nthe person to the approved design service\\nprovider for the project are staff costs, the\\nactual amount of staff costs; or\\n(ii) in all other cases, 60% of those payments,\\nbut does not include any expenditure or payment to the extent\\nthat it is or is to be subsidised by grants or subsidies from the\\nGovernment or a statutory board;\\n“staff costs” means any salary, wages and other benefits whether\\nin the form of money or otherwise (but excluding directors’\\nIncome Tax Act 1947\\n367\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nfees), paid or granted in respect of the employment of any\\nqualified designer which are attributable to the industrial or\\nproduct design project.\\n(7) The Minister or such person as the Minister may appoint may\\napprove an industrial or product design project for the purposes of the\\ndefinition of “qualifying design expenditure” under subsection (6),\\nand may in granting the approval impose such conditions as the\\nMinister or appointed person thinks fit.\\n(7A) For the purpose of the definition of “qualifying design\\nexpenditure” in subsection (6), an industrial or product design\\nproject is undertaken primarily in Singapore if at least 3 of the\\nfollowing 5 design phases of the project are carried out wholly in\\nSingapore:\\n(a) design research;\\n(b) idea generation;\\n(c) concept development;\\n(d) technical development;\\n(e) communication.\\n(8) Where a person fails to comply with any condition imposed\\nunder subsection (7), the aggregate of deductions allowed to the\\nperson under this section is deemed to be the person’s income for the\\nyear of assessment in which the Comptroller discovers such\\nnon‑compliance.\\n[14S\\nDeduction for expenditure on leasing of PIC automation\\nequipment under qualifying lease\\n14Q.—(1) Subject to this section, for the purpose of ascertaining\\nthe income of a person carrying on a trade or business during the basis\\nperiod for the year of assessment 2011 or the year of assessment\\n2012, there is allowed in respect of all of the person’s trades and\\nbusinesses, in addition to the deduction under section 14, a deduction\\nfor the expenditure incurred for the purposes of those trades and\\nbusinesses on the leasing of one or more PIC automation equipment\\nIncome Tax Act 1947\\n2020 Ed.\\n368\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nunder a qualifying lease or leases, computed in accordance with the\\nformula\\nA \\u0003 300%;\\nwhere A is —\\n(a) for the year of assessment 2011, the lower of the following:\\n(i) such expenditure incurred during the basis period for\\nthat year of assessment;\\n(ii) $800,000; and\\n(b) for the year of assessment 2012, the lower of the following:\\n(i) such expenditure incurred during the basis period for\\nthat year of assessment;\\n(ii) the balance after deducting from $800,000 the lower\\nof the amounts specified in paragraph (a)(i) and (ii).\\n(2) Subject to this section and section 37J, for the purpose of\\nascertaining the income of a person carrying on a trade or business\\nduring the basis period for the year of assessment 2013, the year of\\nassessment 2014 or the year of assessment 2015, there is allowed in\\nrespect of all of the person’s trades and businesses, in addition to the\\ndeduction allowed under section 14, a deduction for the expenditure\\nincurred for the purposes of those trades and businesses on the leasing\\nof one or more PIC automation equipment under a qualifying lease or\\nleases, computed in accordance with the formula\\nA \\u0003 300%;\\nwhere A is —\\n(a) for the year of assessment 2013, the lower of the following:\\n(i) such expenditure incurred during the basis period for\\nthat year of assessment;\\n(ii) $1,200,000;\\n(b) for the year of assessment 2014, the lower of the following:\\n(i) such expenditure incurred during the basis period for\\nthat year of assessment;\\nIncome Tax Act 1947\\n369\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(ii) the balance after deducting from $1,200,000 the\\nlower of the amounts specified in paragraph (a)(i)\\nand (ii); and\\n(c) for the year of assessment 2015, the lower of the following:\\n(i) such expenditure incurred during the basis period for\\nthat year of assessment;\\n(ii) the balance after deducting from $1,200,000 the\\nlower of the amounts specified in paragraph (a)(i)\\nand (ii), and the lower of the amounts specified in\\nparagraph (b)(i) and (ii).\\n[37/2014]\\n(2A) Subject to this section and section 37J, for the purpose of\\nascertaining the income of a person carrying on a trade or business\\nduring the basis period for the year of assessment 2016, 2017 or 2018,\\nthere is allowed in respect of all of the person’s trades and businesses,\\nin addition to the deduction allowed under section 14, a deduction for\\nthe expenditure incurred for the purposes of those trades or\\nbusinesses on the leasing of one or more PIC automation\\nequipment under a qualifying lease or leases, computed in\\naccordance with the formula\\nA \\u0003 300%;\\nwhere A is —\\n(a) for the year of assessment 2016, the lower of the following:\\n(i) such expenditure incurred during the basis period for\\nthat year of assessment;\\n(ii) $1,200,000;\\n(b) for the year of assessment 2017, the lower of the following:\\n(i) such expenditure incurred during the basis period for\\nthat year of assessment;\\n(ii) the balance after deducting from $1,200,000 the\\nlower of the amounts specified in paragraph (a)(i)\\nand (ii); and\\nIncome Tax Act 1947\\n2020 Ed.\\n370\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) for the year of assessment 2018, the lower of the following:\\n(i) such expenditure incurred during the basis period for\\nthat year of assessment;\\n(ii) the balance after deducting from $1,200,000 the\\nlower of the amounts specified in paragraph (a)(i)\\nand (ii), and the lower of the amounts specified in\\nparagraph (b)(i) and (ii).\\n[37/2014]\\n(3) No deduction is allowed to a person under this section in respect\\nof —\\n(a) any expenditure which is not allowed as a deduction under\\nsection 14; or\\n(b) any expenditure incurred during the basis period for a year\\nof assessment on the leasing of any PIC automation\\nequipment under a qualifying lease where —\\n(i) the equipment is sub‑leased to another person during\\nthat basis period; or\\n(ii) an allowance has been previously made to that\\nperson under section 19 or 19A in respect of the\\nequipment.\\n(4) Where a person has incurred expenditure on both the leasing\\nunder a qualifying lease and the provision of one or more PIC\\nautomation equipment during the basis period for any year of\\nassessment between the year of assessment 2011 and the year of\\nassessment 2015 (both years inclusive), the aggregate of the\\ndeduction under subsection (1) or (2) and the allowance under\\nsection 19A(2A) or (2B) in respect of all such expenditure must not\\nexceed —\\n(a) in the case of the year of assessment 2011, 300% of the\\nlower of the following:\\n(i) the aggregate of all such expenditure;\\n(ii) $800,000;\\n(b) in the case of the year of assessment 2012, 300% of the\\nlower of the following:\\nIncome Tax Act 1947\\n371\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(i) the aggregate of all such expenditure;\\n(ii) the balance after deducting from $800,000 the lower\\nof the amounts specified in paragraph (a)(i) and (ii);\\n(c) in the case of the year of assessment 2013, 300% of the\\nlower of the following:\\n(i) the aggregate of all such expenditure;\\n(ii) $1,200,000;\\n(d) in the case of the year of assessment 2014, 300% of the\\nlower of the following:\\n(i) the aggregate of all such expenditure;\\n(ii) the balance after deducting from $1,200,000 the\\nlower of the amounts specified in paragraph (c)(i)\\nand (ii); and\\n(e) in the case of the year of assessment 2015, 300% of the\\nlower of the following:\\n(i) the aggregate of all such expenditure;\\n(ii) the balance after deducting from $1,200,000 the\\nlower of the amounts specified in paragraph (c)(i)\\nand (ii), and the lower of the amounts specified in\\nparagraph (d)(i) and (ii).\\n(4A) Where a person has incurred expenditure on both the leasing\\nunder a qualifying lease and the provision of one or more PIC\\nautomation equipment during the basis period for any year of\\nassessment between the years of assessment 2016 and 2018 (both\\nyears\\ninclusive),\\nthe\\naggregate\\nof\\nthe\\ndeduction\\nunder\\nsubsection (2A) and the allowance under section 19A(2BAA) in\\nrespect of all such expenditure must not exceed —\\n(a) in the case of the year of assessment 2016, 300% of the\\nlower of the following:\\n(i) the aggregate of all such expenditure;\\n(ii) $1,200,000;\\nIncome Tax Act 1947\\n2020 Ed.\\n372\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) in the case of the year of assessment 2017, 300% of the\\nlower of the following:\\n(i) the aggregate of all such expenditure;\\n(ii) the balance after deducting from $1,200,000 the\\nlower of the amounts specified in paragraph (a)(i)\\nand (ii); and\\n(c) in the case of the year of assessment 2018, 300% of the\\nlower of the following:\\n(i) the aggregate of all such expenditure;\\n(ii) the balance after deducting from $1,200,000 the\\nlower of the amounts specified in paragraph (a)(i)\\nand (ii), and the lower of the amounts specified in\\nparagraph (b)(i) and (ii).\\n[37/2014]\\n(5) In\\nsubsections\\n(1)\\nand\\n(4),\\nthe\\namounts\\nunder\\nsubsections (1)(a)(ii) and (4)(a)(ii) are each substituted with\\n“$400,000” if the person does not carry on any trade or business\\nduring the basis period for the year of assessment 2012, and the\\nbalances under subsections (1)(b)(ii) and (4)(b)(ii) are each\\nsubstituted with “$400,000” if the person does not carry on any\\ntrade or business during the basis period for the year of\\nassessment 2011.\\n(6) In subsections (2) and (4) —\\n(a) if the person does not carry on any trade or business during\\nthe basis period for any one year of assessment between the\\nyear of assessment 2013 and the year of assessment 2015\\n(both years inclusive), the references to “$1,200,000” in\\nthe paragraphs of those subsections applicable to the other\\n2\\nyears\\nof\\nassessment\\nare\\neach\\nsubstituted\\nwith\\n“$800,000”;\\n(b) if the person does not carry on any trade or business during\\nthe basis periods for any 2 years of assessment between the\\nyear of assessment 2013 and the year of assessment 2015\\n(both years inclusive), the references to “$1,200,000” in\\nthe paragraphs of those subsections applicable to the\\nIncome Tax Act 1947\\n373\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nremaining year of assessment are each substituted with\\n“$400,000”; and\\n(c) to avoid doubt —\\n(i) if the person does not carry on any trade or business\\nduring\\nthe\\nbasis\\nperiod\\nfor\\nthe\\nyear\\nof\\nassessment 2013, no deduction may be made from\\nthe substituted amount in subsection (2)(b)(ii) or\\n(c)(ii) of the lower of the amounts specified in\\nsubsection (2)(a)(i) and (ii), or from the substituted\\namount in subsection (4)(d)(ii) or (e)(ii) of the lower\\nof the amounts specified in subsection (4)(c)(i) and\\n(ii); and\\n(ii) if the person does not carry on any trade or business\\nduring\\nthe\\nbasis\\nperiod\\nfor\\nthe\\nyear\\nof\\nassessment 2014, no deduction may be made from\\nthe substituted amount in subsection (2)(c)(ii) of the\\nlower of the amounts specified in subsection (2)(b)(i)\\nand\\n(ii),\\nor\\nfrom\\nthe\\nsubstituted\\namount\\nin\\nsubsection (4)(e)(ii) of the lower of the amounts\\nspecified in subsection (4)(d)(i) and (ii).\\n(6AA) In subsections (2A) and (4A) —\\n(a) if the person does not carry on any trade or business during\\nthe basis period for any one year of assessment between the\\nyears of assessment 2016 and 2018 (both years inclusive),\\nthe references to “$1,200,000” in the paragraphs of those\\nsubsections applicable to the other 2 years of assessment\\nare each substituted with “$800,000”;\\n(b) if the person does not carry on any trade or business during\\nthe basis periods for any 2 years of assessment between the\\nyears of assessment 2016 and 2018 (both years inclusive),\\nthe references to “$1,200,000” in the paragraphs of those\\nsubsections applicable to the remaining year of assessment\\nare each substituted with “$400,000”; and\\nIncome Tax Act 1947\\n2020 Ed.\\n374\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) to avoid doubt —\\n(i) if the person does not carry on any trade or business\\nduring\\nthe\\nbasis\\nperiod\\nfor\\nthe\\nyear\\nof\\nassessment 2016, no deduction may be made from\\nthe substituted amount in subsection (2A)(b)(ii) or\\n(c)(ii) of the lower of the amounts specified in\\nsubsection (2A)(a)(i) and (ii), or from the substituted\\namount in subsection (4A)(b)(ii) or (c)(ii) of the\\nlower\\nof\\nthe\\namounts\\nspecified\\nin\\nsubsection (4A)(a)(i) and (ii); and\\n(ii) if the person does not carry on any trade or business\\nduring\\nthe\\nbasis\\nperiod\\nfor\\nthe\\nyear\\nof\\nassessment 2017, no deduction may be made from\\nthe substituted amount in subsection (2A)(c)(ii) of\\nthe\\nlower\\nof\\nthe\\namounts\\nspecified\\nin\\nsubsection\\n(2A)(b)(i)\\nand\\n(ii),\\nor\\nfrom\\nthe\\nsubstituted amount in subsection (4A)(c)(ii) of the\\nlower\\nof\\nthe\\namounts\\nspecified\\nin\\nsubsection (4A)(b)(i) and (ii).\\n[37/2014]\\n(6A) For the purposes of subsections (1), (2), (2A), (4) and (4A),\\nwhere an individual carrying on a trade or business through 2 or more\\nfirms (excluding partnerships) has, during the basis period for any\\nyear of assessment between the year of assessment 2011 and the year\\nof assessment 2018 (both years inclusive), incurred expenditure on\\nthe leasing of one or more PIC automation equipment under a\\nqualifying lease or leases and (if applicable) the provision of one or\\nmore PIC automation equipment, in respect of such firms for the\\npurposes of his or her trade or business, the deductions and\\nallowances that may be allowed to him or her for that expenditure\\nin respect of all of his or her trades and businesses must not exceed\\nthe amount computed in accordance with subsection (1), (2), (2A),\\n(4) or (4A) (as the case may be) for that year of assessment.\\n[37/2014]\\n(6B) For the purposes of subsections (1), (2), (2A), (4) and (4A),\\nwhere a partnership carrying on a trade or business has, during the\\nbasis period for any year of assessment between the year of\\nIncome Tax Act 1947\\n375\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nassessment 2011 and the year of assessment 2018 (both years\\ninclusive), incurred expenditure on the leasing of one or more PIC\\nautomation equipment under a qualifying lease or leases and (if\\napplicable) the provision of one or more PIC automation equipment,\\nfor the purposes of its trade or business, the aggregate of the\\ndeductions and allowances that may be allowed to all the partners of\\nthe partnership for that expenditure in respect of all of the trades and\\nbusinesses of the partnership must not exceed the amount computed\\nin accordance with subsection (1), (2), (2A), (4) or (4A) (as the case\\nmay be) for that year of assessment.\\n[37/2014]\\n(6C) This section applies to expenditure incurred on procuring\\ncloud computing services as it applies to expenditure incurred on the\\nleasing of PIC automation equipment under a qualifying lease and,\\naccordingly, a reference in this section (other than subsection (3)(b))\\nto the leasing of any PIC automation equipment under a qualifying\\nlease includes a reference to procuring cloud computing services.\\n(7) In this section —\\n“cloud computing” means a model for delivering information\\ntechnology services under which shared resources or\\nsoftware, or both, are provided to computers and other\\ndevices over a network such as the Internet;\\n“cloud computing service” means any information technology\\nservice delivered by means of cloud computing;\\n“finance lease” has the meaning given by section 10C;\\n“operating lease” means a lease of any machinery or plant, other\\nthan a finance lease;\\n“PIC automation equipment” has the meaning given by\\nsection 19A(15);\\n“qualifying lease” means —\\n(a) any operating lease; or\\n(b) any finance lease other than a lease of PIC\\nautomation equipment which has been treated as\\nIncome Tax Act 1947\\n2020 Ed.\\n376\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthough it had been sold pursuant to regulations made\\nunder section 10C(1).\\n[37/2014]\\n(8) In this section, a reference to expenditure incurred on the leasing\\nof PIC automation equipment under a qualifying lease or the\\nprovision\\nof\\nPIC\\nautomation\\nequipment\\nexcludes\\nany\\nsuch\\nexpenditure to the extent that it is or is to be subsidised by grants\\nor subsidies from the Government or a statutory board.\\n[14T\\nDeduction for expenses incurred before first dollar of income\\nfrom trade, business, profession or vocation\\n14R.—(1) Subject to section 14X, a person who —\\n(a) derives the first dollar of income from a trade, business,\\nprofession or vocation in an applicable basis period; and\\n(b) incurs a previous expense for which the person would have\\nbeen allowed a deduction or further deduction under a\\nprovision of this Part if the person had commenced the\\ntrade, business, profession or vocation by the time it is\\nincurred,\\nis allowed the deduction or further deduction for the previous expense\\nunder and in accordance with that provision.\\n[34/2016]\\n(2) For the purposes of subsection (1) —\\n(a) a previous expense is any outgoing or expense incurred for\\nthe purpose of that trade, business, profession or vocation\\nat any time before the date the person derives that first\\ndollar of income, but no earlier than 12 months before the\\nfirst day of the applicable basis period (called in this\\nsection the first day);\\n(b) the person is deemed to have commenced the person’s\\ntrade, business, profession or vocation on the first day; and\\n(c) any previous expense incurred by the person before the\\nfirst day but no earlier than 12 months before that day is\\ndeemed to have been incurred by the person on that day.\\nIncome Tax Act 1947\\n377\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(3) To avoid doubt —\\n(a) subsection (1) is subject to any other requirement to be\\nsatisfied under the relevant provision of this Part before the\\ndeduction or further deduction may be allowed; and\\n(b) a deduction or further deduction that may be or has been\\nallowed by virtue of subsection (1) is considered for the\\npurposes of this Act as one that may be or has been allowed\\nunder the relevant provision of this Part.\\n(4) Subsection (1) does not apply to the business of making\\ninvestments carried out by a company or trustee of a property trust, to\\nwhich section 10D applies.\\n(5) Subsection (1) is without prejudice to any provision of this Part\\nallowing the deduction or further deduction of any expense or\\noutgoing incurred at an earlier point in time.\\n(6) In this section —\\n(a) a reference to an applicable basis period is a reference to\\nthe basis period for the year of assessment 2012 or a\\nsubsequent year of assessment; and\\n(b) a reference to a provision of this Part includes a reference\\nto regulations made under a provision of this Part, but\\nexcludes this section.\\n[14U\\nDeduction for amortisation of intangible asset created under\\npublic‑private partnership arrangement\\n14S.—(1) Where —\\n(a) a\\nperson\\nprovides\\nservices\\nunder\\na\\npublic‑private\\npartnership arrangement —\\n(i) that is the subject of a contract entered into between\\nthe Government or any approved statutory body and\\nany person; and\\n(ii) to which INT FRS 112 or SFRS(I) INT 12 applies;\\nIncome Tax Act 1947\\n2020 Ed.\\n378\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) section 10E(1A) or (1C) applies to the person in respect of\\nthose services;\\n(c) the person recognises in the person’s financial statements,\\nprepared\\nin\\naccordance\\nwith\\nINT\\nFRS\\n112\\nor\\nSFRS(I) INT 12 (as the case may be), an intangible asset\\nas having been created in the course of providing the\\nservices; and\\n(d) in accordance with FRS 38 or SFRS(I) 1‑38 (as the case\\nmay be), amortisation of the asset is recognised in the\\nperson’s financial statements for the basis period for the\\nyear of assessment 2012 or any subsequent year of\\nassessment,\\nthen the amount of the amortisation that is recognised in the person’s\\nfinancial statements as an expense in accordance with FRS 38 or\\nSFRS(I) 1‑38 (as the case may be), is allowed to the person as a\\ndeduction against an amount that is deemed as income derived by that\\nperson for that basis period under section 10E(1A) or (1C).\\n[32/2019]\\n(2) In this section —\\n“FRS 38” and “SFRS(I) 1‑38” mean the financial reporting\\nstandards known respectively as —\\n(a) Financial Reporting Standard 38 (Intangible Assets);\\nand\\n(b) Singapore\\nFinancial\\nReporting\\nStandard\\n(International) 1‑38 (Intangible Assets),\\nthat are made by the Accounting Standards Committee under\\nPart 3 of the Accounting Standards Act 2007, as amended\\nfrom time to time;\\n[Act 36 of 2022 wef 01/04/2023]\\n“INT FRS 112” and “SFRS(I) INT 12” have the meanings given\\nby section 10E(2).\\n[14V\\n[32/2019]\\nIncome Tax Act 1947\\n379\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nDeduction for expenditure on licensing intellectual property\\nrights\\n14T.—(1) Subject to this section and section 37J, for the purpose of\\nascertaining the income of a person carrying on a trade or business\\nduring the basis period for the year of assessment 2013, 2014 or 2015,\\nthere is allowed, in respect of all of the person’s trades and businesses\\nand in addition to the deduction allowed under section 14 or 14C (as\\nthe case may be), a deduction for expenditure incurred during the\\nbasis period for the purposes of those trades and businesses on the\\nlicensing from another person of any qualifying intellectual property\\nrights that is computed in accordance with the formula\\nA  \\u0003  300%;\\nwhere A is —\\n(a) for the year of assessment 2013, the lower of the following:\\n(i) such expenditure incurred during the basis period for\\nthat year of assessment;\\n(ii) $1,200,000;\\n(b) for the year of assessment 2014, the lower of the following:\\n(i) such expenditure incurred during the basis period for\\nthat year of assessment;\\n(ii) the balance after deducting from $1,200,000 the\\nlower of the amounts specified in paragraph (a)(i)\\nand (ii); and\\n(c) for the year of assessment 2015, the lower of the following:\\n(i) such expenditure incurred during the basis period for\\nthat year of assessment;\\n(ii) the balance after deducting from $1,200,000 the\\nlower of the amounts specified in paragraph (a)(i)\\nand (ii), and the lower of the amounts specified in\\nparagraph (b)(i) and (ii).\\n[37/2014]\\n(2) Despite anything in this section or section 19B, where a person\\nhas, during the basis period for any year of assessment between the\\nIncome Tax Act 1947\\n2020 Ed.\\n380\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nyears of assessment 2013 and 2015 (both years inclusive), incurred\\nboth expenditure on the licensing from another person of any\\nqualifying intellectual property rights and expenditure on the\\nacquisition of any intellectual property rights, the aggregate of the\\nexpenditure which may be given a deduction under subsection (1) and\\nthe\\nexpenditure\\nwhich\\nmay\\nbe\\ngiven\\nan\\nallowance\\nunder\\nsection 19B(1B) must not exceed —\\n(a) in the case of the year of assessment 2013, the lower of the\\nfollowing:\\n(i) the aggregate of all such expenditure;\\n(ii) $1,200,000;\\n(b) in the case of the year of assessment 2014, the lower of the\\nfollowing:\\n(i) the aggregate of all such expenditure;\\n(ii) the balance after deducting from $1,200,000 the\\nlower of the amounts specified in paragraph (a)(i)\\nand (ii); and\\n(c) in the case of the year of assessment 2015, the lower of the\\nfollowing:\\n(i) the aggregate of all such expenditure;\\n(ii) the balance after deducting from $1,200,000 the\\nlower of the amounts specified in paragraph (a)(i)\\nand (ii), and the lower of the amounts specified in\\nparagraph (b)(i) and (ii).\\n(3) In subsections (1) and (2) —\\n(a) if the person does not carry on any trade or business during\\nthe basis period for any one year of assessment between the\\nyears of assessment 2013 and 2015 (both years inclusive),\\nthe references to “$1,200,000” in the paragraphs of those\\nsubsections applicable to the other 2 years of assessment\\nare each substituted with “$800,000”;\\n(b) if the person does not carry on any trade or business during\\nthe basis periods for any 2 years of assessment between the\\nIncome Tax Act 1947\\n381\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nyears of assessment 2013 and 2015 (both years inclusive),\\nthe references to “$1,200,000” in the paragraphs of those\\nsubsections applicable to the remaining year of assessment\\nare each substituted with “$400,000”; and\\n(c) to avoid doubt —\\n(i) if the person does not carry on any trade or business\\nduring\\nthe\\nbasis\\nperiod\\nfor\\nthe\\nyear\\nof\\nassessment 2013, no deduction may be made from\\nthe substituted amount in subsection (1)(b)(ii) or\\n(c)(ii) of the lower of the amounts specified in\\nsubsection (1)(a)(i) and (ii), or from the substituted\\namount in subsection (2)(b)(ii) or (c)(ii) of the lower\\nof the amounts specified in subsection (2)(a)(i) and\\n(ii); and\\n(ii) if the person does not carry on any trade or business\\nduring\\nthe\\nbasis\\nperiod\\nfor\\nthe\\nyear\\nof\\nassessment 2014, no deduction may be made from\\nthe substituted amount in subsection (1)(c)(ii) of the\\nlower of the amounts specified in subsection (1)(b)(i)\\nand\\n(ii),\\nor\\nfrom\\nthe\\nsubstituted\\namount\\nin\\nsubsection (2)(c)(ii) of the lower of the amounts\\nspecified in subsection (2)(b)(i) and (ii).\\n(4) Subject to this section and section 37J, for the purpose of\\nascertaining the income of a person carrying on a trade or business\\nduring the basis period for the year of assessment 2016, 2017 or 2018,\\nthere is allowed in respect of all of the person’s trades and businesses,\\nin addition to the deduction allowed under section 14 or 14C (as the\\ncase may be), a deduction for expenditure incurred during the basis\\nperiod for the purposes of those trades and businesses on the licensing\\nfrom another person of any qualifying intellectual property rights that\\nis computed in accordance with the formula\\nA \\u0003 300%;\\nIncome Tax Act 1947\\n2020 Ed.\\n382\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nwhere A is —\\n(a) for the year of assessment 2016, the lower of the following:\\n(i) such expenditure incurred during the basis period for\\nthat year of assessment;\\n(ii) $1,200,000;\\n(b) for the year of assessment 2017, the lower of the following:\\n(i) such expenditure incurred during the basis period for\\nthat year of assessment;\\n(ii) the balance after deducting from $1,200,000 the\\nlower of the amounts specified in paragraph (a)(i)\\nand (ii); and\\n(c) for the year of assessment 2018, the lower of the following:\\n(i) such expenditure incurred during the basis period for\\nthat year of assessment;\\n(ii) the balance after deducting from $1,200,000 the\\nlower of the amounts specified in paragraph (a)(i)\\nand (ii), and the lower of the amounts specified in\\nparagraph (b)(i) and (ii).\\n[37/2014]\\n(4A) Despite anything in this section or section 19B, where a\\nperson has, during the basis period for any year of assessment\\nbetween the years of assessment 2016 and 2018 (both years\\ninclusive), incurred both expenditure on the licensing from another\\nperson of any qualifying intellectual property rights and expenditure\\non the acquisition of any intellectual property rights, the aggregate of\\nthe expenditure which may be given a deduction under subsection (4)\\nand the expenditure which may be given an allowance under\\nsection 19B(1BAA) must not exceed —\\n(a) in the case of the year of assessment 2016, the lower of the\\nfollowing:\\n(i) the aggregate of all such expenditure;\\n(ii) $1,200,000;\\nIncome Tax Act 1947\\n383\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) in the case of the year of assessment 2017, the lower of the\\nfollowing:\\n(i) the aggregate of all such expenditure;\\n(ii) the balance after deducting from $1,200,000 the\\nlower of the amounts specified in paragraph (a)(i)\\nand (ii); and\\n(c) in the case of the year of assessment 2018, the lower of the\\nfollowing:\\n(i) the aggregate of all such expenditure;\\n(ii) the balance after deducting from $1,200,000 the\\nlower of the amounts specified in paragraph (a)(i)\\nand (ii), and the lower of the amounts specified in\\nparagraph (b)(i) and (ii).\\n[37/2014]\\n(4B) In subsections (4) and (4A) —\\n(a) if the person does not carry on any trade or business during\\nthe basis period for any one year of assessment between the\\nyears of assessment 2016 and 2018 (both years inclusive),\\nthe references to “$1,200,000” in the paragraphs of those\\nsubsections applicable to the other 2 years of assessment\\nare each substituted with “$800,000”;\\n(b) if the person does not carry on any trade or business during\\nthe basis periods for any 2 years of assessment between the\\nyears of assessment 2016 and 2018 (both years inclusive),\\nthe references to “$1,200,000” in the paragraphs of those\\nsubsections applicable to the remaining year of assessment\\nare each substituted with “$400,000”; and\\n(c) to avoid doubt —\\n(i) if the person does not carry on any trade or business\\nduring\\nthe\\nbasis\\nperiod\\nfor\\nthe\\nyear\\nof\\nassessment 2016, no deduction may be made from\\nthe substituted amount in subsection (4)(b)(ii) or\\n(c)(ii) of the lower of the amounts specified in\\nsubsection (4)(a)(i) and (ii), or from the substituted\\nIncome Tax Act 1947\\n2020 Ed.\\n384\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\namount in subsection (4A)(b)(ii) or (c)(ii) of the\\nlower\\nof\\nthe\\namounts\\nspecified\\nin\\nsubsection (4A)(a)(i) and (ii); and\\n(ii) if the person does not carry on any trade or business\\nduring\\nthe\\nbasis\\nperiod\\nfor\\nthe\\nyear\\nof\\nassessment 2017, no deduction may be made from\\nthe substituted amount in subsection (4)(c)(ii) of the\\nlower of the amounts specified in subsection (4)(b)(i)\\nand\\n(ii),\\nor\\nfrom\\nthe\\nsubstituted\\namount\\nin\\nsubsection (4A)(c)(ii) of the lower of the amounts\\nspecified in subsection (4A)(b)(i) and (ii).\\n[37/2014]\\n(4C) For the purposes of subsections (1) and (4), where an\\nindividual carrying on a trade or business through 2 or more firms\\n(excluding partnerships) has, during the basis period for any year of\\nassessment between the years of assessment 2013 and 2018 (both\\nyears inclusive), incurred expenditure on the licensing from another\\nperson of any qualifying intellectual property rights in respect of such\\nfirms for the purposes of his or her trade or business, the deductions\\nthat may be allowed to him or her for that expenditure in respect of all\\nof his or her trades and businesses must not exceed the amount\\ncomputed in accordance with subsection (1) or (4) (as the case may\\nbe) for that year of assessment.\\n[37/2014]\\n(5) For the purposes of subsections (1), (2), (4) and (4A), where a\\npartnership carrying on a trade or business has, during the basis\\nperiod\\nfor\\nany\\nyear\\nof\\nassessment\\nbetween\\nthe\\nyears\\nof\\nassessment\\n2013\\nand\\n2018\\n(both\\nyears\\ninclusive),\\nincurred\\nexpenditure on the licensing from another person of any qualifying\\nintellectual property rights and (if applicable) the acquisition of any\\nintellectual property rights, for the purposes of its trade or business,\\nthe aggregate of the deductions and allowances that may be allowed\\nto all the partners of the partnership for that expenditure in respect of\\nall of the trades and businesses of the partnership must not exceed the\\namount computed in accordance with subsection (1), (2), (4) or (4A)\\n(as the case may be) for that year of assessment.\\n[37/2014]\\nIncome Tax Act 1947\\n385\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(6) No deduction is allowed under this section in respect of —\\n(a) any expenditure which is not allowed as a deduction under\\nsection 14 or 14C, as the case may be;\\n(b) any expenditure incurred by a person on licensing from its\\nrelated party carrying on any trade or business in\\nSingapore, of any qualifying intellectual property rights,\\nwhere such rights were acquired or developed (in whole or\\nin part) by the related party during the basis period relating\\nto the year of assessment 2011 or any subsequent year of\\nassessment; or\\n(c) any qualifying intellectual property rights for which a\\nwriting‑down allowance has been previously made to that\\nperson under section 19B.\\n(7) The\\nMinister\\nmay\\nby\\norder\\nexempt\\na\\nperson\\nfrom\\nsubsection (6)(b) in respect of such transaction as may be specified\\nin the order.\\n(8) In this section —\\n“intellectual property rights” has the meaning given by\\nsection 19B(11);\\n“qualifying intellectual property rights” means intellectual\\nproperty rights but excludes the right to do or authorise the\\ndoing of anything which would, but for that right, be an\\ninfringement of —\\n(a) any trade mark; or\\n(b) any rights to the use of software.\\n[Act 33 of 2022 wef 04/11/2022]\\n[Deleted by Act 33 of 2022 wef 04/11/2022]\\n(9) In this section, a reference to expenditure incurred on the\\nlicensing from another person of qualifying intellectual property\\nrights or the acquisition of intellectual property rights excludes any\\nsuch expenditure to the extent that it is or is to be subsidised by grants\\nor subsidies from the Government or a statutory board.\\nIncome Tax Act 1947\\n2020 Ed.\\n386\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(10) In this section, a reference to expenditure incurred on the\\nlicensing from another person of qualifying intellectual property\\nrights means the licence fees and excludes —\\n(a) expenditure for the transfer of ownership of any of those\\nrights; and\\n(b) legal fees and other costs related to the licensing of such\\nrights.\\n[14W\\nEnhanced deduction for expenditure on licensing intellectual\\nproperty rights\\n14U.—(1) Subject to this section, for the purpose of ascertaining\\nthe income of a person carrying on a trade or business during the basis\\nperiod\\nfor\\nany\\nyear\\nof\\nassessment\\nbetween\\nthe\\nyears\\nof\\nassessment 2019 and 2028 (both years inclusive), there is to be\\nallowed in respect of all of the person’s trades and businesses, in\\naddition to the deduction allowed under section 14 or 14C (as the case\\nmay be), a deduction of the amount of the expenditure incurred\\nduring the basis period for the purposes of those trades and businesses\\non the licensing from another person of any qualifying intellectual\\nproperty rights, up to $100,000.\\n[45/2018]\\n[Act 30 of 2023 wef 30/10/2023]\\n(1A) For the purpose of ascertaining the income of a person —\\n(a) who is a qualifying person for any year of assessment\\nbetween the years of assessment 2024 and 2028 (both years\\ninclusive); and\\n(b) who carries on a trade or business during the basis period\\nfor that year of assessment,\\nthere is allowed in respect of all of the person’s trades and businesses,\\nin addition to the deduction allowed under section 14 or 14C (as the\\ncase may be) and in lieu of subsection (1), a deduction for expenditure\\nincurred during that basis period for the purposes of those trades and\\nbusinesses on the licensing from another person of any qualifying\\nintellectual property rights, computed in accordance with the formula\\nIncome Tax Act 1947\\n387\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nA \\u0003 300%;\\nwhere A is the lower of the following:\\n(a) the expenditure incurred during that basis period;\\n(b) $400,000.\\n[Act 30 of 2023 wef 30/10/2023]\\n(1B) Despite\\nsubsection\\n(1A)\\nand\\nsection\\n19B, where\\nthe\\nqualifying person has, during the basis period for any year of\\nassessment between the years of assessment 2024 and 2028 (both\\nyears inclusive), incurred both —\\n(a) expenditure on the licensing from another person of any\\nqualifying intellectual property rights; and\\n(b) expenditure on the acquisition of any intellectual property\\nrights,\\nthe total of the expenditure which may be given a deduction under\\nsubsection (1A) and the expenditure which may be given an\\nallowance under section 19B(1AD), must not exceed $400,000 for\\nthat year of assessment.\\n[Act 30 of 2023 wef 30/10/2023]\\n(1C) In this section, a person is a qualifying person for a year of\\nassessment if —\\n(a) where the person is a company that is not part of a group —\\nthe person derives less than $500 million in gross revenue\\nfrom all of its trades and businesses in the basis period for\\nthat year of assessment;\\n(b) where the person is a company that is part of a group — all\\nthe entities in the group derive a total of less than $500\\nmillion in gross revenue from all of the entities’ trades and\\nbusinesses in that basis period;\\n(c) where the person is an individual proprietor — the person\\nderives less than $500 million in gross revenue in that basis\\nperiod from all of the person’s trades and businesses that\\nare\\ncarried\\non\\nthrough\\none\\nor\\nmore\\nindividual\\nproprietorships;\\nIncome Tax Act 1947\\n2020 Ed.\\n388\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(d) where the person is a partner of a partnership, and either\\nthe partnership is under the control of a single partner who\\nis an individual or no single partner has control over the\\npartnership — the partnership derives less than $500\\nmillion in gross revenue from all of the partnership’s trades\\nand businesses in that basis period; or\\n(e) where the person is a partner of a partnership, and the\\npartnership is under the control of a single partner that is a\\ncompany — the partnership, the company and all other\\nentities in the group of which the partnership and the\\ncompany are parts derive a total of less than $500 million\\nin gross revenue from all of their trades and businesses in\\nthat basis period.\\n[Act 30 of 2023 wef 30/10/2023]\\n(1D) In subsection (1C)(d) and (e), whether or not a partnership is\\nunder the control of a partner is determined in accordance with FRS\\n110.\\n[Act 30 of 2023 wef 30/10/2023]\\n(1E) In subsections (1C) and (1D) —\\n“FRS 110” means the financial reporting standard known as\\nFinancial Reporting Standard 110 (Consolidated Financial\\nStatements) that is treated as made by the Accounting\\nStandards Committee under Part 3 of the Accounting\\nStandards Act 2007, as amended from time to time;\\n“group” means a group of entities (whether incorporated or\\nregistered in Singapore or elsewhere) comprising a parent\\nand its subsidiaries within the meaning of FRS 110.\\n[Act 30 of 2023 wef 30/10/2023]\\n(2) For the purposes of subsections (1) and (1A), where an\\nindividual carrying on a trade or business through 2 or more firms\\n(excluding partnerships) has, during the basis period for any year of\\nassessment between the years of assessment 2019 and 2028 (both\\nyears inclusive), incurred expenditure on the licensing from another\\nperson of any qualifying intellectual property rights in respect of such\\nfirms for the purposes of the individual’s trade or business, the\\ndeductions that may be allowed to the individual for that expenditure\\nIncome Tax Act 1947\\n389\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nin respect of all of the individual’s trades and businesses must not\\nexceed the maximum amount mentioned in subsection (1), or the\\namount computed in accordance with subsection (1A) as qualified by\\nsubsection (1B), as the case may be.\\n[45/2018]\\n[Act 30 of 2023 wef 30/10/2023]\\n(3) For the purposes of subsections (1) and (1A), where a\\npartnership carrying on a trade or business has, during the basis\\nperiod\\nfor\\nany\\nyear\\nof\\nassessment\\nbetween\\nthe\\nyears\\nof\\nassessment\\n2019\\nand\\n2028\\n(both\\nyears\\ninclusive),\\nincurred\\nexpenditure on the licensing from another person of any qualifying\\nintellectual property rights for the purposes of the partnership’s trade\\nor business, the deductions that may be allowed to all the partners of\\nthe partnership for that expenditure in respect of all of the trades and\\nbusinesses of the partnership must not exceed the maximum amount\\nmentioned in subsection (1), or the amount computed in accordance\\nwith subsection (1A) as qualified by subsection (1B), as the case may\\nbe.\\n[45/2018]\\n[Act 30 of 2023 wef 30/10/2023]\\n(4) No deduction may be allowed to a person under this section in\\nrespect of —\\n(a) any expenditure that is not allowed as a deduction under\\nsection 14 or 14C, as the case may be;\\n(b) any expenditure incurred by that person on licensing from\\nits related party, of any qualifying intellectual property\\nrights, where such rights were acquired or developed\\n(in whole or in part) by the related party; or\\n(c) any qualifying intellectual property rights for which a\\nwriting‑down allowance has been previously made to that\\nperson under section 19B.\\n[45/2018]\\n(5) The\\nMinister\\nmay\\nby\\norder\\nexempt\\na\\nperson\\nfrom\\nsubsection (4)(b) in respect of such transaction as may be specified\\nin the order.\\n[45/2018]\\nIncome Tax Act 1947\\n2020 Ed.\\n390\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(6) In this section, “qualifying intellectual property rights” has the\\nmeaning given by section 14T(8).\\n[45/2018]\\n[Act 33 of 2022 wef 04/11/2022]\\n(7) In this section, a reference to expenditure incurred on the\\nlicensing from another person of qualifying intellectual property\\nrights excludes any such expenditure to the extent that it is or is to be\\nsubsidised by grants or subsidies from the Government or a statutory\\nboard.\\n[45/2018]\\n(8) In this section —\\n“expenditure incurred on the licensing from another person of\\nqualifying intellectual property rights” means the licence fees\\nbut excludes —\\n(a) expenditure for the transfer of ownership of any of\\nthose rights; and\\n(b) legal fees and other costs related to the licensing of\\nsuch rights;\\n“individual proprietor” has the meaning given by section 2(1) of\\nthe Business Names Registration Act 2014.\\n[Act 30 of 2023 wef 30/10/2023]\\n[14WA\\n[45/2018]\\nDeduction for expenditure incurred to comply with statutory\\nand regulatory requirements\\n14V.—(1) For the purpose of ascertaining the income of any person\\nfor the basis period for the year of assessment 2014 or any subsequent\\nyear of assessment, the following expenditure, not being capital\\nexpenditure, incurred during the basis period by that person is\\nallowed as a deduction for that year of assessment, if the Comptroller\\nis satisfied that the expenditure is incurred for the purpose of the\\nbusiness that is carried on in the production of the income:\\nIncome Tax Act 1947\\n391\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(a) expenditure incurred for the purpose of compliance by that\\nperson with any written law of Singapore or another\\ncountry;\\n(b) expenditure incurred for the purpose of compliance by that\\nperson with any code, standard, rule, requirement or other\\ndocument issued by the Government, a public authority\\nestablished by or under any public Act, or by the\\ngovernment or a public authority of another country, or\\nby a securities exchange;\\n(c) expenditure incurred —\\n(i) to study the impact of any proposed law referred to in\\nparagraph (a) or proposed document referred to in\\nparagraph (b);\\n(ii) to prevent or to detect any non‑compliance with any\\nlaw referred to in paragraph (a) or document referred\\nto in paragraph (b);\\n(iii) to voluntarily comply with a requirement of any law\\nreferred to in paragraph (a) or document referred to\\nin paragraph (b), even though the person does not\\nneed to comply with the requirement.\\n[37/2014]\\n(2) No deduction is allowed under this section for —\\n(a) any expenditure which is deductible under any other\\nprovision of this Act; or\\n(b) any fine or penalty imposed or security deposit forfeited\\nfor a breach of a requirement of any law referred to in\\nsubsection\\n(1)(a)\\nor\\ndocument\\nreferred\\nto\\nin\\nsubsection (1)(b), including any sum paid to compound\\nany offence.\\n[14X\\n[37/2014]\\nIncome Tax Act 1947\\n2020 Ed.\\n392\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nDeduction for expenditure incurred by individual in deriving\\npassive rental income in Singapore\\n14W.—(1) This section applies for the purpose of ascertaining an\\nindividual’s\\nincome\\nfor\\nthe\\nbasis\\nperiod\\nfor\\nthe\\nyear\\nof\\nassessment 2016 or a subsequent year of assessment from the\\nletting of a residential property or a part of a residential property in\\nSingapore (not being an excluded property for that basis period), that\\nis chargeable to tax under section 10(1)(f) (called in this section rental\\nincome).\\n[2/2016]\\n(2) Despite any other provisions in this Part, if there are any\\noutgoings or expenses deductible against the rental income under any\\nprovision of this Part apart from section 14(1)(a), then there is to be\\ndeducted, in lieu of those outgoings or expenses, an amount of\\nexpenses computed in accordance with the formula\\nA \\u0003 B;\\nwhere A is 15% or such other percentage as may be prescribed\\nunder section 7; and\\nB is the gross amount of the rental income from the\\nresidential property derived in the basis period for that\\nyear of assessment.\\n[2/2016]\\n(3) This section does not apply to —\\n(a) an\\nindividual\\nwho\\nhas\\nmade\\nan\\nelection\\nunder\\nsubsection (4) for this section not to apply to the\\nindividual’s rental income derived in the basis period for\\nthe year of assessment in question;\\n(b) any rental income derived by an individual through a\\npartnership; and\\n(c) any rental income derived by an individual acting in the\\ncapacity of a trustee of a trust.\\n[2/2016]\\nIncome Tax Act 1947\\n393\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(4) An individual may, in such form and manner and within such\\ntime as the Comptroller may determine, make an election to the\\nComptroller for this section not to apply to all of the individual’s\\nrental income derived in the basis period for a particular year of\\nassessment.\\n[2/2016]\\n(5) If an individual derives rental income, other than income\\nreferred to in subsection (3)(b) or (c), from more than one residential\\nproperty (not being excluded properties for the basis period) in a basis\\nperiod, the individual may not make an election under subsection (4)\\nin respect of only one or some of those properties.\\n[2/2016]\\n(6) In this section —\\n“excluded property”, in relation to a basis period, means a\\nresidential property which, at any time during the period\\nrental income is derived from the property by the individual\\nin question, is permitted under the Planning Act 1998 to be\\nused whether wholly or in part for any purpose that is not a\\nresidential purpose;\\n“residential property” means —\\n(a) any detached house, semi‑detached house or terrace\\nhouse; or\\n(b) any part of a building (such as a flat or a\\ncondominium unit) constructed or adapted for\\nhuman habitation,\\nthat has a single annual value ascribed to it in the Valuation\\nList prepared under section 10 of the Property Tax Act 1960,\\nand is permitted under the Planning Act 1998 to be used for a\\nresidential purpose, and includes such other premises as may\\nbe prescribed as residential property, but (to avoid doubt)\\nexcludes premises that are so permitted for use as a\\ndormitory.\\n[2/2016]\\n(7) In this section, a property or part of a property is permitted under\\nthe Planning Act 1998 to be used for a particular purpose if —\\nIncome Tax Act 1947\\n2020 Ed.\\n394\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(a) it is permitted by a written permission granted under\\nsection 14 of that Act to be used for that purpose;\\n(b) it is authorised by a notification under section 21(6) of that\\nAct to be used for that purpose; or\\n(c) such use (being an existing use of the property or part and\\nnot being the subject of a written permission granted under\\nsection 14 of that Act or a notification under section 21(6)\\nof that Act) was a use to which the building or part was put\\non 1 February 1960, and the building or part has not been\\nput to any other use since that date.\\n[14Y\\n[2/2016]\\nAttribution of deductible expenses incurred before\\ncommencement of trade, etc.\\n14X.—(1) This section applies where —\\n(a) a person derives the first dollar of income from a trade,\\nbusiness, profession or vocation in a basis period;\\n(b) the person incurs an expense —\\n(i) before the date the person derives the first dollar of\\nincome mentioned in paragraph (a); but\\n(ii) on or after 25 March 2016; and\\n(c) for the purpose of ascertaining the person’s income from\\nthat trade, business, profession or vocation in that basis\\nperiod, a deduction may be allowed under a provision of\\nthis Part for that expense by reason of section 14R.\\n[34/2016]\\n(2) This section also applies where —\\n(a) a person commences a trade, business or profession in a\\nbasis period;\\n(b) the person incurs an expense —\\n(i) before the date the person commences the trade,\\nbusiness or profession; but\\n(ii) on or after 25 March 2016; and\\nIncome Tax Act 1947\\n395\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) for the purpose of ascertaining the person’s income from\\nthat trade, business or profession in that basis period, a\\ndeduction may be allowed under section 14A, 14C, 14EA,\\n14N or 14P by reason of section 14A(3), 14C(2), 14EA(8),\\n14N(4) or 14P(5), as the case may be.\\n[34/2016]\\n[Act 30 of 2023 wef 30/10/2023]\\n(3) Where the person’s income from that trade, business, profession\\nor vocation (as the case may be) in that basis period comprises\\nany 2 or all of the following:\\n(a) normal income;\\n(b) concessionary income;\\n(c) exempt income,\\nthe deduction for the expense is to be allowed in the following\\nmanner:\\n(d) where the Comptroller is of the opinion that —\\n(i) where\\nthe\\nexpense\\nis\\none\\nmentioned\\nin\\nsubsection (1) — it is incurred in the production of\\nthe normal income only; or\\n(ii) where the expense is one mentioned in subsection (1)\\nor (2) and is incurred before the commencement of\\nthe trade, business, profession or vocation — it\\nwould have been incurred in the production of the\\nnormal income had it been incurred after such\\ncommencement,\\n(d) the expense is to be deducted against the normal income;\\n(e) where the Comptroller is of the opinion that —\\n(i) where\\nthe\\nexpense\\nis\\none\\nmentioned\\nin\\nsubsection (1) — it is incurred in the production of\\nthe concessionary income only; or\\n(ii) where the expense is one mentioned in subsection (1)\\nor (2) and is incurred before the commencement of\\nthe trade, business, profession or vocation — it\\nIncome Tax Act 1947\\n2020 Ed.\\n396\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nwould have been incurred in the production of the\\nconcessionary income had it been incurred after such\\ncommencement,\\n(e) the expense is to be deducted against the concessionary\\nincome;\\n(f) where the Comptroller is of the opinion that —\\n(i) where\\nthe\\nexpense\\nis\\none\\nmentioned\\nin\\nsubsection (1) — it is incurred in the production of\\nthe exempt income only; or\\n(ii) where the expense is one mentioned in subsection (1)\\nor (2) and is incurred before the commencement of\\nthe trade, business, profession or vocation — it\\nwould have been incurred in the production of the\\nexempt income had it been incurred after such\\ncommencement,\\n(f) the expense is to be deducted against the exempt income;\\n(g) in any other case, the expense is to be deducted against the\\nnormal income, concessionary income and exempt income\\n(whichever is applicable), in the respective proportions\\nthat such part of the normal income, concessionary income\\nand exempt income bear to such part of the total income\\nfrom that trade, business, profession or vocation in the\\nsame\\nbasis\\nperiod,\\nas\\nthe\\nComptroller\\nconsiders\\nreasonable.\\n[34/2016]\\n(4) Where the person’s income from that trade, business, profession\\nor vocation in that basis period comprises only concessionary income\\nor only exempt income, the expense is to be deducted against that\\nincome.\\n[34/2016]\\n(5) In this section —\\n“concessionary income” means income that is subject to a\\nconcessionary rate of tax as defined in section 14C(5);\\nIncome Tax Act 1947\\n397\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“exempt income” means income that is exempt from tax under\\nthis Act or the Economic Expansion Incentives (Relief from\\nIncome Tax) Act 1967;\\n“normal income” means income that is subject to tax at the rate\\nof tax in section 42(1) or 43(1), as the case may be.\\n[14Z\\n[34/2016]\\nFurther or double deduction for qualifying expenditure on\\nissue of debentures and making available debentures for\\nsecondary trading\\n14Y.—(1) Where the Comptroller is satisfied that qualifying\\nexpenditure in connection with —\\n(a) an issue of post‑seasoning debentures offered in reliance\\non an exemption under the Post‑seasoning Debentures\\nRegulations within 5 years starting from the date of issue\\nof the corresponding seasoned debentures, being a date\\nfalling within the period between 19 May 2016 and 18 May\\n2021 (both dates inclusive);\\n(aa) an\\nissue\\nof\\nqualifying\\ndebentures\\n(other\\nthan\\npost‑seasoning debentures mentioned in paragraph (a))\\nduring the period between 19 May 2016 and 18 May 2021\\n(both dates inclusive); or\\n(b) making\\navailable\\npotential\\nseasoned\\ndebentures\\nfor\\nsecondary trading within 5 years starting from the date\\nof their issue (being a date falling within the period\\nbetween 19 May 2016 and 18 May 2021 (both dates\\ninclusive)),\\nhas been incurred on or after 19 May 2016 by a person carrying on a\\ntrade or business in Singapore, that person is to be allowed —\\n(c) where the expenditure is allowable as a deduction under\\nsection 14, a further deduction of the amount of such\\nexpenditure; or\\nIncome Tax Act 1947\\n2020 Ed.\\n398\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(d) where the expenditure is not allowable as a deduction\\nunder section 14, a deduction equal to twice the amount of\\nsuch expenditure.\\n[34/2016; 27/2021]\\n(1A) Where the Comptroller is satisfied that qualifying expenditure\\nhas been incurred on or after 19 May 2021 by a person carrying on a\\ntrade or business in Singapore in connection with —\\n(a) an issue of post‑seasoning debentures offered in reliance\\non an exemption under the Post‑seasoning Debentures\\nRegulations within 5 years starting from the date of issue\\nof the corresponding seasoned debentures that is a date\\nfalling within the period between 19 May 2021 and\\n31\\nDecember\\n2026\\n(both\\ndates\\ninclusive),\\nbeing\\npost‑seasoning debentures that are credit‑rated as at the\\ndate they are issued;\\n(b) an\\nissue\\nof\\nqualifying\\ndebentures\\n(other\\nthan\\npost‑seasoning debentures mentioned in paragraph (a))\\nduring the period between 19 May 2021 and 31 December\\n2026 (both dates inclusive), being debentures that are\\ncredit‑rated as at the date they are issued; or\\n(c) making\\navailable\\npotential\\nseasoned\\ndebentures\\nfor\\nsecondary trading within 5 years starting from the date\\nof their issue that is a date falling within the period between\\n19 May 2021 and 31 December 2026 (both dates\\ninclusive), being debentures that are credit‑rated as at the\\ndate they are so made available,\\nthat person is to be allowed —\\n(d) where the expenditure is allowable as a deduction under\\nsection 14 — a further deduction of the amount of the\\nexpenditure; or\\n(e) where the expenditure is not allowable as a deduction\\nunder section 14 — a deduction equal to twice the amount\\nof the expenditure.\\n[27/2021]\\nIncome Tax Act 1947\\n399\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(2) The maximum amount of qualifying expenditure that may be\\nallowed a deduction under this section is —\\n(a) subject to paragraphs (b) and (c), $500,000 for each issue\\nof qualifying debentures or making available of potential\\nseasoned debentures for secondary trading;\\n(b) subject to paragraph (c), $500,000 for both the issue of\\npotential seasoned debentures and the making available of\\nthe same debentures for secondary trading; and\\n(c) $1,000,000 per person, irrespective of the number of times\\nthe person issues qualifying debentures or makes available\\npotential seasoned debentures for secondary trading.\\n[34/2016]\\n(3) It is a condition for allowing a deduction to a person under this\\nsection in respect of an issue of potential seasoned debentures, that\\nthey are made available for secondary trading within a period of one\\nyear starting from the date of their issue (called in this section the\\nwindow period).\\n[34/2016]\\n(4) If the condition in subsection (3) is not satisfied, the total\\ndeductions under this section already allowed to the person in respect\\nof that issue are treated as the person’s income for the year of\\nassessment relating to the basis period in which the first day after the\\nend of the window period falls.\\n[34/2016]\\n(5) Subsections (3) and (4) do not affect the right of the person to be\\nallowed a deduction under this section in relation to making available\\nthe potential seasoned debentures for secondary trading after the\\nwindow period, except that the deduction may only be allowed in the\\nyear of assessment relating to the basis period in which those\\ndebentures are so made available.\\n[34/2016]\\n(6) In this section —\\n“credit‑rated”, in relation to qualifying debentures, means\\nqualifying debentures that are given at least one credit\\nrating by Fitch Ratings, Moody’s, or Standard & Poor (S&P)\\nGlobal;\\nIncome Tax Act 1947\\n2020 Ed.\\n400\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“offering document” means a prospectus, an offer circular, an\\ninformation memorandum, a pricing supplement or any other\\ndocument issued to investors in connection with an offer of\\ndebentures;\\n“post‑seasoning debenture”, “retail investor” and “seasoned\\ndebenture” have the meanings given to those expressions in\\nthe Post‑seasoning Debentures Regulations;\\n“Post‑seasoning Debentures Regulations” means the Securities\\nand Futures (Offers of Investments) (Exemption for Offers of\\nPost‑seasoning Debentures) Regulations 2016;\\n“potential seasoned debentures” means debentures the offering\\ndocuments for the offer of which include a statement to the\\neffect that the debentures are intended to be made available\\non a securities exchange for trading by retail investors;\\n“product highlights sheet” —\\n(a) in relation to an offer of straight debentures, has the\\nmeaning given to it in the Straight Debentures\\nRegulations; or\\n(b) in relation to an offer of post‑seasoning debentures,\\nhas the meaning given to it in the Post‑seasoning\\nDebentures Regulations;\\n“qualifying debentures” means —\\n(a) potential seasoned debentures;\\n(b) post‑seasoning debentures offered in reliance on an\\nexemption under the Post‑seasoning Debentures\\nRegulations; or\\n(c) straight\\ndebentures\\noffered\\nin\\nreliance\\non\\nan\\nexemption\\nunder\\nthe\\nStraight\\nDebentures\\nRegulations;\\n“qualifying expenditure” means —\\n(a) in\\nrelation\\nto\\nan\\nissue\\nof\\npotential\\nseasoned\\ndebentures, any of the following that are incurred\\nin connection with the issue, and for the purpose of\\nIncome Tax Act 1947\\n401\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nallowing the debentures to be made available for\\nsecondary trading, or for the purpose of the\\nsubsequent issue of post‑seasoning debentures:\\n(i) professional fees for conducting due diligence;\\n(ii) origination, underwriting and distribution fees;\\n(iii) advertising and marketing expenses;\\n(b) in relation to the making available of potential\\nseasoned debentures for secondary trading, any of\\nthe expenditure mentioned in paragraph (a)(i), (ii)\\nand (iii) that are incurred in connection with making\\navailable the debentures for secondary trading; or\\n(c) in relation to an issue of post‑seasoning debentures or\\nstraight debentures, any of the following that are\\nincurred in connection with the issue:\\n(i) professional fees for conducting due diligence;\\n(ii) professional\\nfees\\nfor\\nthe\\ndrafting\\nand\\npreparation of, and the printing costs of —\\n(A) the product highlights sheet for the offer\\npertaining to the issue, in the case of an\\nissue of post‑seasoning debentures; or\\n(B) the\\nproduct\\nhighlights\\nsheet\\nand\\nsimplified disclosure document for the\\noffer pertaining to the issue, in the case of\\nan issue of straight debentures;\\n(iii) origination, underwriting and distribution fees;\\n(iv) advertising and marketing expenses,\\nbut excludes trustee fees, agency fees and Central Depository\\nfees;\\n“securities exchange” has the meaning given by section 2(1) of\\nthe Securities and Futures Act 2001;\\nIncome Tax Act 1947\\n2020 Ed.\\n402\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“simplified disclosure document” and “straight debenture” have\\nthe meanings given to those expressions in the Straight\\nDebentures Regulations;\\n“Straight Debentures Regulations” means the Securities and\\nFutures (Offers of Investments) (Exemption for Offers of\\nStraight Debentures) Regulations 2016.\\n[34/2016; 27/2021]\\n(7) In this section, a person makes available potential seasoned\\ndebentures for secondary trading if the person makes them available\\non a securities exchange for trading by retail investors.\\n[14ZA\\n[34/2016]\\nDeduction for expenditure for services or secondment to\\ninstitutions of a public character\\n14Z.—(1) Subject to this section, where the Comptroller is satisfied\\nthat a qualifying person has incurred, during the period between\\n1 July 2016 and 31 December 2026 (both dates inclusive), qualifying\\nexpenditure in respect of —\\n(a) the provision during that period by a qualifying employee\\nof the qualifying person, of services for the purpose of\\nmeeting needs in Singapore and that satisfy subsection (2)\\nto an IPC; or\\n[Act 30 of 2023 wef 30/10/2023]\\n(b) the secondment during that period of a qualifying\\nemployee of the qualifying person to an IPC to provide\\nservices for the purpose of meeting needs in Singapore,\\nthen there is to be allowed to the qualifying person a deduction in\\naccordance with subsection (1A) or (1B), as the case may be.\\n[32/2019; 27/2021]\\n[Act 30 of 2023 wef 30/10/2023]\\n(1A) Where the qualifying expenditure is salary expenditure, the\\ndeduction that the qualifying person is to be allowed is as follows:\\nIncome Tax Act 1947\\n403\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(a) where —\\n(i) the expenditure is allowable as a deduction under\\nsection 14; and\\n(ii) the qualifying person did not opt in the declaration\\nunder subsection (6) to compute the expenditure at\\nthe prescribed hourly rate,\\n(a) a further deduction equal to 150% of the endorsed amount\\nof the expenditure in addition to the deduction allowed\\nunder section 14;\\n(b) where —\\n(i) the expenditure is allowable as a deduction under\\nsection 14; and\\n(ii) the qualifying person opted in the declaration under\\nsubsection (6) to compute the expenditure at the\\nprescribed hourly rate,\\n(b) a further deduction equal to 150% of the computed salary\\namount in addition to the deduction allowed under\\nsection 14;\\n(c) where —\\n(i) the expenditure is not allowable as a deduction under\\nsection 14; and\\n(ii) the qualifying person did not opt in the declaration\\nunder subsection (6) to compute the expenditure at\\nthe prescribed hourly rate,\\n(c) a deduction equal to 250% of the endorsed amount of the\\nexpenditure;\\n(d) where —\\n(i) the expenditure is not allowable as a deduction under\\nsection 14; and\\n(ii) the qualifying person opted in the declaration under\\nsubsection (6) to compute the expenditure at the\\nprescribed hourly rate,\\nIncome Tax Act 1947\\n2020 Ed.\\n404\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(d) a deduction equal to 250% of the computed salary amount.\\n[32/2019]\\n(1B) Where the qualifying expenditure is not salary expenditure,\\nthe deduction that the qualifying person is to be allowed is as follows:\\n(a) where the expenditure is allowable as a deduction under\\nsection 14 — a further deduction equal to 150% of the\\nendorsed amount of the expenditure in addition to the\\ndeduction allowed under that section;\\n(b) where the expenditure is not allowable as a deduction\\nunder section 14 — a deduction equal to 250% of the\\nendorsed amount of the expenditure.\\n[32/2019]\\n(2) The services mentioned in subsection (1)(a) must be —\\n(a) the subject of an arrangement between the qualifying\\nperson and the IPC; and\\n(b) provided on the instruction or request of the qualifying\\nperson.\\n[34/2016]\\n(3) The maximum amount of qualifying expenditure for which a\\nqualifying person may be allowed the deduction under subsection (1)\\nis $250,000 for each year of assessment.\\n[34/2016]\\n(4) The maximum amount of qualifying expenditure for which\\ndeductions may be allowed under subsection (1) in relation to each\\nIPC is —\\n(a) $25,000 for the period between 1 July 2016 and\\n31 December 2016 (both dates inclusive);\\n(b) $50,000 for each of the calendar years between 2017 and\\n2023 (both years inclusive); and\\n(c) $100,000 for each of the calendar years between 2024 and\\n2026 (both years inclusive),\\nand this is irrespective of the number of qualifying persons claiming\\nthe deduction.\\n[Act 30 of 2023 wef 30/10/2023]\\nIncome Tax Act 1947\\n405\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(5) Where 2 or more qualifying persons —\\n(a) incur qualifying expenditure in relation to one IPC in a\\nperiod or calendar year which in total exceeds the\\nmaximum amount for that period or calendar year under\\nsubsection (4); and\\n(b) claim\\na\\ndeduction\\nunder\\nsubsection\\n(1)\\nfor\\nsuch\\nexpenditure,\\nthe deduction is to be allowed for such part or parts of the expenditure\\nincurred by such person or persons that the IPC specifies to the\\nComptroller.\\n[34/2016]\\n(5A) Where a qualifying person opted in a declaration under\\nsubsection (6) to compute any salary expenditure at the prescribed\\nhourly rate, then the computed salary amount —\\n(a) is treated as the amount of that expenditure incurred by the\\nqualifying person for the purposes of subsections (3) and\\n(5); and\\n(b) is to be used in computing the maximum amount of\\nqualifying expenditure for which deductions may be\\nallowed in relation to the IPC in question for the\\npurposes of subsection (4).\\n[32/2019]\\n(6) A deduction under subsection (1) may only be allowed for any\\nqualifying expenditure if —\\n(a) before the date the services are first provided to the IPC in\\nthe basis period or the date of commencement of the\\nsecondment (as the case may be), the qualifying person\\nmakes a declaration, duly endorsed by the IPC and in a\\nform determined by the Minister, regarding —\\n(i) the nature of the services which the person has\\narranged with the IPC to be provided to the IPC, or\\nthe nature of the secondment, as the case may be; and\\n(ii) the expected expenditure;\\nIncome Tax Act 1947\\n2020 Ed.\\n406\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) within such time as the Comptroller may specify, the IPC\\nsubmits to the Comptroller a declaration by the qualifying\\nperson, in a form determined by the Minister, regarding —\\n(i) the services provided to the IPC or the secondment to\\nthe IPC, as the case may be; and\\n(ii) the relevant details specified in subsection (6A); and\\n(c) the claim for the deduction is made in the manner\\ndetermined by the Comptroller.\\n[34/2016; 32/2019]\\n(6A) In subsection (6)(b)(ii), the relevant details are —\\n(a) where —\\n(i) the qualifying expenditure is salary expenditure; and\\n(ii) the qualifying person opted in the declaration under\\nsubsection (6) to compute the expenditure at the\\nprescribed hourly rate,\\n(a) the actual number of hours for which the services were\\nprovided, as well as the number of those hours (which may\\nbe the same number or a smaller number of hours)\\nendorsed\\nby\\nthe\\nIPC\\nfor\\nthe\\ndeduction\\nunder\\nsubsection (1); or\\n(b) in all other cases, the amount of the actual qualifying\\nexpenditure incurred, as well as the part of that amount\\n(which may be the full amount or a part of it) endorsed by\\nthe IPC for the deduction under subsection (1).\\n[32/2019]\\n(7) A deduction is not allowed under subsection (1) for any\\nexpenditure to the extent that it is or is to be subsidised by a grant or\\nsubsidy from the Government or a statutory board.\\n[34/2016]\\n(8) A deduction is not allowed under subsection (1) in relation to\\nthe provision of any service or any secondment if there is any\\nagreement or understanding (whether oral or in writing and whether\\nexpress or implied) that the IPC will confer a benefit of any kind on\\nIncome Tax Act 1947\\n407\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthe qualifying person in return for the provision of the service or the\\nsecondment.\\n[34/2016]\\n(9) A deduction is not allowed under subsection (1) for any\\nexpenditure incurred on any activity that is or is to be subsidised, fully\\nor partially, by a matching grant under the Share as One Programme\\nadministered by the National Council of Social Services.\\n[34/2016]\\n(10) The Comptroller may disallow in whole or in part a claim for a\\ndeduction under subsection (1) if the Comptroller is not satisfied that\\nthe endorsed amount of the expenditure or the endorsed number of\\nhours (as the case may be) is reasonable having regard to the period\\nand nature of the services provided or the period and nature of the\\nsecondment (as the case may be), and other relevant circumstances.\\n[34/2016; 32/2019]\\n(11) If, at any time after a qualifying person has been allowed a\\ndeduction under subsection (1) for any qualifying expenditure, the\\nperson is reimbursed for any amount of the expenditure, the amount\\nof the deduction that corresponds to the expenditure reimbursed is\\ntreated as the person’s income for the year of assessment in which the\\nComptroller discovers the reimbursement.\\n[34/2016]\\n(11A) Where —\\n(a) the qualifying expenditure mentioned in subsection (11) is\\nsalary expenditure; and\\n(b) the computed salary amount of that expenditure was used\\nto compute the amount of deduction allowed to the\\nqualifying person,\\nthen, for the purpose of that subsection, the amount of the deduction\\nthat corresponds to the expenditure reimbursed is to be computed\\nusing the formula\\nA þ\\nA\\nB \\u0003 150% \\u0003 C \\u0003 D\\n\\u0013\\n\\u0014\\n;\\nwhere —\\n(c) A is the amount of the reimbursement;\\nIncome Tax Act 1947\\n2020 Ed.\\n408\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(d) B is the amount of the actual salary expenditure;\\n(e) C is the prescribed hourly rate used in computing the\\ncomputed salary amount; and\\n(f) D is the endorsed number of hours used in computing the\\ncomputed salary amount.\\n[32/2019]\\n(12) In this section —\\n“central hirer”, in relation to a central hiring arrangement for a\\ngroup of related parties, means the person who carries out\\nhiring functions for those parties under the arrangement;\\n“central hiring arrangement” means an arrangement for a group\\nof related parties entered into for a bona fide commercial\\nreason, where the hiring functions of the parties in the group\\nare carried out by a single person;\\n“computed salary amount”, in relation to any salary expenditure\\nfor the provision of any services by a qualifying employee,\\nmeans an amount computed using the formula A × B,\\nwhere —\\n(a) A is the endorsed number of hours for those services;\\nand\\n(b) B is the prescribed hourly rate for those services;\\n“employee”, in relation to a qualifying person, includes an\\nindividual —\\n(a) who is engaged by the central hirer of a central hiring\\narrangement for a group of related parties which\\nincludes the qualifying person, and who is deployed\\nto work solely for the qualifying person; and\\n(b) whose salary and other remuneration is borne,\\ndirectly or indirectly, by the qualifying person and\\nnot claimed by the central hirer as a deduction against\\nthe central hirer’s own income;\\n“endorsed amount”, in relation to any expenditure, means the\\namount of the expenditure endorsed by an IPC under\\nsubsection (6A)(b);\\nIncome Tax Act 1947\\n409\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“endorsed number of hours”, in relation to any services, means\\nthe number of hours for which those services are provided, as\\nendorsed by an IPC under subsection (6A)(a);\\n“IPC” means an institution of a public character as defined in\\nsection 2(1);\\n“prescribed hourly rate”, in relation to the provision of any\\nservices by a qualifying employee, means the rate prescribed\\nby rules made under section 7 for those services;\\n“qualifying employee”, in relation to a qualifying person, means\\nan employee who, at the time of provision of the services or\\nduring the secondment (as the case may be), is under a\\ncontract of service with the qualifying person or (if the\\nemployee is engaged under a central hiring arrangement) the\\ncentral hirer, but excludes —\\n(a) where the qualifying person is a partnership, a partner\\nof the partnership; and\\n(b) where the qualifying person is a company, a\\nshareholder of the company who is also a director\\nof the company;\\n“qualifying expenditure” —\\n(a) in relation to the provision of services by a qualifying\\nemployee of a qualifying person to an IPC, means the\\nsum of —\\n(i) the amount of the salary expenditure incurred\\nby the qualifying person for —\\n(A) the period during which the employee\\nprovided those services that falls within\\nthe employee’s working hours; or\\n(B) if the period during which the employee\\nprovided those services does not fall\\nwithin the employee’s working hours,\\nthe period of the time off in lieu given to\\nthe employee; and\\nIncome Tax Act 1947\\n2020 Ed.\\n410\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(ii) the amount of the expenditure (not being\\ncapital\\nexpenditure)\\nincurred\\nby\\nthe\\nqualifying person that was necessary for the\\nprovision of the services, excluding any private\\nor domestic expense; and\\n(b) in relation to the secondment of a qualifying\\nemployee of the qualifying person to an IPC,\\nmeans the sum of —\\n(i) the amount of the salary expenditure incurred\\nby the qualifying person for the period of the\\nsecondment; and\\n(ii) the amount of the expenditure (not being\\ncapital\\nexpenditure)\\nincurred\\nby\\nthe\\nqualifying person that was necessary for the\\nprovision\\nof\\nservices\\nby\\nthe\\nqualifying\\nemployee to the IPC during the period of the\\nsecondment, excluding any private or domestic\\nexpense;\\n“qualifying person” means —\\n(a) any company or firm (including a partnership) that\\ncarries\\non a\\ntrade, profession or\\nbusiness in\\nSingapore;\\n(b) a\\nbody\\nof\\npersons\\n(whether\\ncorporate\\nor\\nunincorporate) that carries on a club or a similar\\ninstitution and receives from its members (within the\\nmeaning of section 11) less than half of its gross\\nreceipts on revenue account (including entrance fees\\nand subscriptions); or\\n(c) a\\nbody\\nof\\npersons\\n(whether\\ncorporate\\nor\\nunincorporate)\\nthat\\ncarries\\non\\na\\ntrade\\nor\\nprofessional association in such circumstances that\\nmore than half its receipts by way of entrance fees\\nand subscriptions are from Singapore members\\n(within the meaning of section 11) who claim or\\nIncome Tax Act 1947\\n411\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nwould be entitled to claim such sums as allowable\\ndeductions for the purposes of section 14;\\n[Deleted by Act 33 of 2022 wef 04/11/2022]\\n“salary expenditure”, in relation to an employee, means\\nexpenditure comprising wages and salary for the employee,\\nbut excludes any sum contributed to the Central Provident\\nFund in respect of the employee, or any bonus, commission,\\ngratuity, leave pay, perquisite, allowance, or any other\\npayment (whether in cash or kind) prescribed by rules\\nmade under section 7.\\n[34/2016; 32/2019]\\n(13) In this section, a qualifying person is treated as having incurred\\nany expenditure, if —\\n(a) it directly incurs that expenditure for which it is not\\nreimbursed; or\\n(b) another person directly incurs that expenditure and the\\nqualifying person is liable to reimburse the other person for\\nit, and the incurring of the expenditure and of the liability\\nboth occur in the period between 1 July 2016 and\\n31 December 2026 (both dates inclusive).\\n[14ZB\\n[34/2016; 32/2019; 27/2021]\\n[Act 30 of 2023 wef 30/10/2023]\\nDeduction for expenditure incurred in deriving income from\\ndriving chauffeured private hire car or taxi\\n14ZA.—(1) Subsection (2) applies for the purpose of ascertaining\\nan individual’s income from driving a chauffeured private hire car or\\ntaxi for an authorised purpose that is chargeable to tax under\\nsection 10(1)(a) (called in this section specified income), for the basis\\nperiod for the year of assessment 2019 or a subsequent year of\\nassessment.\\n[45/2018]\\n(2) Despite any other provisions in this Part, if there are any\\noutgoings or expenses that are deductible against the specified\\nincome derived in the basis period, then there is to be deducted, in lieu\\nIncome Tax Act 1947\\n2020 Ed.\\n412\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nof those outgoings or expenses, an amount computed in accordance\\nwith the formula A × B, where —\\n(a) A is 60% or such other percentage as may be prescribed by\\nrules made under section 7; and\\n(b) B is the gross amount of the specified income derived in\\nthe basis period.\\n[45/2018]\\n(3) However, subsection (2) —\\n(a) only applies if, at the time the specified income is derived,\\nthe individual —\\n(i) holds a vocational licence granted under section 110\\nof the Road Traffic Act 1961 authorising the\\nindividual to drive; or\\n(ii) is otherwise permitted under that Act to drive,\\n(a) a chauffeured private hire car or taxi, as the case may be;\\nand\\n(b) does not apply if the individual has made an election under\\nsubsection (5) to disapply subsection (2) to the individual’s\\nspecified income derived in the basis period.\\n[45/2018]\\n(4) Subsection (2) also does not apply to any specified income\\nderived by an individual as a partner in a partnership.\\n[45/2018]\\n(5) An individual may, in such form and manner and within such\\ntime as the Comptroller may determine, make an election to the\\nComptroller to disapply subsection (2) to all of the individual’s\\nspecified income derived in the basis period for a particular year of\\nassessment.\\n[45/2018]\\n(6) If an individual derives specified income (other than income\\nmentioned in subsection (4)) from driving more than one vehicle in a\\nbasis period, the individual may not make an election under\\nsubsection (5) in respect of only one or some of those vehicles.\\n[45/2018]\\nIncome Tax Act 1947\\n413\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(7) Where an individual makes an election under subsection (5) to\\ndisapply subsection (2) to all of the individual’s specified income\\nderived in the basis period for a particular year of assessment, then\\n(despite anything in this Act) —\\n(a) any outgoings or expenses incurred in that basis period and\\ndeductible\\nagainst\\nthe\\nspecified\\nincome\\nunder\\nany\\nprovision of this Part, that is in excess of the specified\\nincome, is not available as a deduction against any other\\nincome of the individual for that year of assessment; and\\n(b) section 37 or 37D applies with the necessary modifications\\nto such excess, except that the excess may only be\\ndeducted against the individual’s specified income that is\\nderived in the basis period for a subsequent or preceding\\nyear of assessment, as the case may be.\\n[45/2018]\\n(8) In this section —\\n“authorised purpose” means —\\n(a) the carriage of passengers; or\\n(b) the collection, conveyance and delivery, for reward,\\nof any cargo not incidental to the carriage of any\\npassenger in a motor vehicle, and any goods, article,\\nfood or baggage which is unaccompanied by any\\npassenger travelling in the motor vehicle must be\\ntreated as cargo, but only if such collection,\\nconveyance\\nand\\ndelivery\\nis\\napproved\\nby\\nthe\\nRegistrar pursuant to rules made under the Road\\nTraffic Act 1961;\\n“chauffeured private hire car” means a motor car that —\\n(a) does not ply for hire on any road;\\n(b) is hired, or made available for hire, under a contract\\n(express or implied) for use as a whole with a driver\\nfor the purpose of conveying the hirer, and one or\\nmore passengers (if any), in that car; and\\nIncome Tax Act 1947\\n2020 Ed.\\n414\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) in respect of which a licence is issued under Part 5 of\\nthe Road Traffic Act 1961 for its use as a chauffeured\\nprivate hire car;\\n“Registrar” has the meaning given by section 2(1) of the Road\\nTraffic Act 1961.\\n[14ZC\\n[45/2018]\\nDeduction for expenditure incurred by individual in deriving\\ncommission\\n14ZB.—(1) This section applies for the purpose of ascertaining, for\\nthe basis period for the year of assessment 2020 or a subsequent year\\nof assessment, a qualifying individual’s income by way of\\ncommission that is derived from carrying on one or more trades,\\nbusinesses, professions or vocations that are prescribed by rules made\\nunder section 7 (called in this section a prescribed activity or\\nactivities), in respect of which there are outgoings or expenses that\\nare deductible under this Part.\\n[32/2019]\\n(2) Despite any other provision in this Part, there is to be deducted,\\nin lieu of those outgoings or expenses, an amount computed in\\naccordance with the formula A × B, where —\\n(a) A is 25% or such other percentage as may be prescribed by\\nrules made under section 7; and\\n(b) B is the gross amount of the individual’s commission\\nderived from carrying on a prescribed activity or (if the\\nindividual carries on more than one prescribed activity in\\nthe basis period) all of those prescribed activities in the\\nbasis period, being commission in respect of which there\\nare outgoings or expenses that are deductible under this\\nPart.\\n[32/2019]\\n(3) However, subsection (2) does not apply to an individual who\\nhas made an election under subsection (4) to disapply subsection (2)\\nto the individual’s commission derived from carrying on a prescribed\\nactivity or prescribed activities in the basis period.\\n[32/2019]\\nIncome Tax Act 1947\\n415\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(4) An individual may, in such form and manner and within such\\ntime as the Comptroller may determine, make an election to the\\nComptroller\\nto\\ndisapply\\nsubsection\\n(2)\\nto\\nthe\\nindividual’s\\ncommission derived from carrying on a prescribed activity or\\nprescribed activities in the basis period for a particular year of\\nassessment.\\n[32/2019]\\n(5) If the individual derived commission from carrying on more\\nthan one prescribed activity in the basis period in respect of which\\nthere are outgoings or expenses that are deductible under this Part, the\\nindividual may not make an election under subsection (4) in respect\\nof only one or some of those prescribed activities.\\n[32/2019]\\n(6) In this section —\\n“commission” means commission that is chargeable to tax under\\nsection 10(1)(a), and includes such other payment as may be\\nprescribed by rules made under section 7, but excludes any\\ncommission —\\n(a) that is derived by the individual concerned as a\\npartner of a partnership; or\\n(b) that is prescribed by rules made under section 7 as not\\ncommission;\\n“qualifying individual”, in relation to any basis period, means an\\nindividual who satisfies all of the following conditions:\\n(a) the individual is resident in Singapore in the year of\\nassessment relating to the basis period;\\n(b) the individual derived commission from a prescribed\\nactivity or prescribed activities in the basis period,\\nbeing commission in respect of which there are\\noutgoings or expenses that are deductible under this\\nPart, and the total amount of such commission does\\nnot exceed $50,000 or such amount as may be\\nprescribed by rules made under section 7;\\nIncome Tax Act 1947\\n2020 Ed.\\n416\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) such other conditions as may be prescribed by rules\\nmade under section 7.\\n[14ZD\\n[32/2019]\\nDeduction for payments made to drivers of chauffeured\\nprivate hire cars and taxis\\n14ZC.—(1) Each provision in the first column of the following\\ntable applies for the purpose of ascertaining the income of a\\nTenth Schedule entity for the basis period for each year of\\nassessment set out opposite that provision in the second column of\\nthe table:\\nProvision\\nYear of assessment\\nSubsection (2)\\n2021 or 2022\\nSubsection (2A)(a)\\n2022 or 2023\\nSubsection (2A)(b) and (c)\\n2022 or a subsequent year of\\nassessment\\nSubsection (2A)(d)\\n2023 or a subsequent year of\\nassessment\\n[27/2021]\\n[Act 30 of 2023 wef 30/10/2023]\\n(2) Despite any other provision in this Part, the following\\nexpenditure incurred by a Tenth Schedule entity during the period\\nbetween 1 January 2020 and 31 December 2020 (both dates\\ninclusive) is allowed as a deduction for the relevant year of\\nassessment:\\n(a) the value of any benefit given to a self‑employed\\nindividual who drives a chauffeured private hire car or\\ntaxi, that is given in connection with an amount received by\\nthe Tenth Schedule entity out of a payment made by the\\nGovernment to the Special Relief Fund under the public\\nscheme known as the Point‑to‑Point Support Package;\\n(b) any monetary payment given by a Tenth Schedule entity to\\nan individual who drives a chauffeured private hire car or\\nIncome Tax Act 1947\\n417\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\ntaxi, that the Comptroller is satisfied is given to mitigate\\nthe individual’s loss of income arising from a COVID‑19\\nevent.\\n[41/2020]\\n(2A) Despite any other provision in this Part, the following\\nexpenditure incurred by a Tenth Schedule entity is allowed as a\\ndeduction for the relevant year of assessment:\\n(a) any monetary payment given during the period between\\n1 January 2021 and 31 December 2021 (both dates\\ninclusive) by the Tenth Schedule entity to an individual\\nwho drives a chauffeured private hire car or taxi, that the\\nComptroller is satisfied is given to mitigate the individual’s\\nloss of income arising from a COVID‑19 event;\\n(b) the value of any benefit given on or after 1 January 2021 to\\nan individual who drives a chauffeured private hire car or\\ntaxi, that is given in connection with an amount received by\\nthe Tenth Schedule entity out of a payment made by the\\nGovernment from a fund established by the Government\\nknown as the COVID‑19 Driver Relief Fund;\\n(c) any monetary payment given on or after 1 January 2021 by\\nthe Tenth Schedule entity to an individual who drives a\\nchauffeured private hire car or taxi that is a petrol car or\\npetrol‑electric car, that is given in connection with an\\namount received by the Tenth Schedule entity out of a\\npayment made on behalf of the Government (known as the\\nAdditional Petrol Duty Rebate), that is part of the Budget\\nStatement of the Government dated 16 February 2021;\\n[Act 30 of 2023 wef 30/10/2023]\\n(d) the value of any benefit given on or after 1 August 2022 by\\nthe Tenth Schedule entity to an individual who drives a\\nchauffeured private hire car or taxi, that is given in\\nconnection with an amount received by the Tenth Schedule\\nentity out of a payment made by or on behalf of the\\nGovernment, pursuant to any other public scheme, or out\\nof any fund, established by or on behalf of the Government\\nfor the benefit (whether exclusively or otherwise) of\\nIncome Tax Act 1947\\n2020 Ed.\\n418\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nindividuals who drive chauffeured private hire cars or\\ntaxis.\\n[27/2021]\\n[Act 30 of 2023 wef 30/10/2023]\\n(2B) Despite any other provision in this Part, any monetary\\npayment given by a person (other than an individual) who paid a\\ntax under section 11 of the Road Traffic Act 1961 for a vehicle that is\\na petrol car or petrol‑electric car, to an individual who drives that\\nvehicle as a chauffeured private hire car or taxi, in connection with an\\namount given to the person as a rebate against that tax on or after\\n1 August 2021, is allowed as a deduction against the income of the\\nperson for the basis period for the year of assessment 2022 or a\\nsubsequent year of assessment.\\n[27/2021]\\n(3) In this section —\\n“chauffeured private hire car” has the meaning given to that term\\nby section 14ZA(8);\\n“COVID‑19 event” and “monetary payment” have the meanings\\ngiven by section 13X(6);\\n“petrol car” means a motor car which uses petrol as its source of\\npower;\\n“petrol‑electric car” means a motor car which uses either or both\\npetrol and electricity as its source of power;\\n“Tenth Schedule entity” means an entity set out in the\\nTenth Schedule.\\n[14ZE\\n[41/2020; 27/2021]\\nDeduction for payments made to lessees or licensees to mitigate\\nimpact of COVID‑19 event\\n14ZD.—(1) Each provision in the first column of the following\\ntable applies for the purpose of ascertaining the income of a person\\nset out opposite that provision in the second column of the table, for\\nthe basis period for each year of assessment set out opposite that\\nincome in the third column of the table:\\nIncome Tax Act 1947\\n419\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nProvision\\n.\\nIncome\\n.\\nYear of\\nassessment\\nSubsection (2)\\n.\\nIncome derived by a person in\\nthe period between 1 January\\n2020 and 31 December 2020\\n(both dates inclusive) from the\\nleasing or licensing of any\\nimmovable\\nproperty\\nin\\nrelation to which a remission\\nof property tax is given by the\\nProperty Tax (Non‑Residential\\nProperties)\\n(Remission)\\nOrder 2020\\n.\\n2021 or\\n2022\\nSubsection (2A)\\nIncome derived by a person\\n(being the lessor or licensor of\\na prescribed property) in the\\nperiod between 1 January 2021\\nand 31 December 2021 (both\\ndates\\ninclusive)\\nfrom\\nthe\\nleasing or licensing of the\\nprescribed property\\n2022 or\\n2023\\n[27/2021]\\n(2) Despite any other provision in this Part, the following\\n(whichever is applicable) is allowed as a deduction against that\\nincome for the relevant year of assessment:\\n(a) the amount in the form of monetary payments of any\\nbenefit\\n(as\\ndefined\\nin\\nthe\\nCOVID‑19\\n(Temporary\\nMeasures)\\n(Transfer\\nof\\nBenefit\\nof\\nProperty\\nTax\\nRemission)\\nRegulations\\n2020)\\nof\\nthe\\nreduction\\nin\\nproperty tax as a result of the remission that the person\\n(being the owner of the property) is required under\\nsection 29(2) of the COVID‑19 (Temporary Measures)\\nAct 2020 to pass on to a lessee or licensee of the property in\\n2020;\\nIncome Tax Act 1947\\n2020 Ed.\\n420\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) the amount in the form of monetary payments that the\\nperson mentioned in paragraph (a) has passed on or has\\nagreed to pass on to the lessee or licensee of the property in\\nthe year 2020, and by reason of which the person is exempt\\nfrom\\nsection\\n29(2)\\nof\\nthe\\nCOVID‑19\\n(Temporary\\nMeasures) Act 2020 under regulation 13(2) of the\\nCOVID‑19 (Temporary Measures) (Transfer of Benefit\\nof Property Tax Remission) Regulations 2020;\\n(c) the amount of any other monetary payments that the person\\nmakes in the year 2020 to the person’s lessee or licensee of\\nthat property, but only if the Comptroller is satisfied that\\nthe payments are intended to provide relief to the lessee or\\nlicensee from any economic hardship arising from a\\nCOVID‑19 event;\\n(d) the total of the amounts in paragraphs (a), (b) and (c).\\n[41/2020]\\n(2A) Despite any other provision in this Part, the amount of any\\nmonetary payment made by the person in the year 2021 to the\\nperson’s lessee or licensee of the prescribed property, is allowed as a\\ndeduction against that income for the relevant year of assessment,\\nif —\\n(a) the payment is made pursuant to an undertaking given by\\nthe person to his, her or its lessor or licensor, to provide\\nrelief to the lessee or licensee from any economic hardship\\narising from a COVID‑19 event; or\\n(b) the Comptroller is satisfied that the payment is intended to\\nprovide relief to the lessee or licensee from any economic\\nhardship arising from a COVID‑19 event.\\n[27/2021]\\n(3) The total amount of deduction allowable under this section in\\nrelation to each lessee or licensee for each year of assessment must\\nnot exceed the total amount of rent or licence fee payable under the\\nrelevant lease agreement or licence agreement between the person\\nand the lessee or licensee for the period between 1 January and\\n31 December (both dates inclusive) of the year 2020 or 2021\\n(whichever is applicable), or a part of that period, and falling within\\nIncome Tax Act 1947\\n421\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthe basis period for that year of assessment, after taking into account\\nany waiver or reduction of the rent or licence fee for that period.\\n[41/2020; 27/2021]\\n(4) In this section, “COVID‑19 event”, “monetary payment”,\\n“owner” and “prescribed property”, in relation to immovable\\nproperty, have the meanings given by section 13X(6).\\n[14ZF\\n[41/2020; 27/2021]\\nDeduction for expenditure incurred in obtaining or granting,\\netc., leases of immovable properties\\n14ZE.—(1) Subject to subsections (3), (4) and (5), for the purpose\\nof ascertaining the income of a person from the carrying on of a trade\\nor business during the basis period for the year of assessment 2022 or\\nany subsequent year of assessment, there is to be allowed a deduction\\nfor any expenditure incurred by the person during that basis period for\\nthe purpose of obtaining a lease, or renewing or extending a lease, of\\nan immovable property that is used by the person for the purpose of\\nthe person’s trade or business.\\n[27/2021]\\n(2) Subject to subsections (4) and (5), for the purpose of\\nascertaining the rental income derived by a person from an\\nimmovable property that is chargeable to tax under section 10(1)(f)\\nduring the basis period for the year of assessment 2022 or any\\nsubsequent year of assessment, there is to be allowed a deduction for\\nany expenditure incurred by the person during that basis period for\\nthe purpose of granting the lease, or renewing or extending the lease,\\nof the immovable property.\\n[27/2021]\\n(3) No deduction may be allowed under subsection (1) to a\\ncompany or trustee of a property trust in the business of letting\\nimmovable properties in which the company or trustee has a\\nproprietary interest (other than as a legal owner) and would receive\\nconsideration if the proprietary interest is disposed of or transferred,\\nwhether in whole or in part.\\n[27/2021]\\n(4) In subsections (1) and (2), expenditure incurred to obtain, grant,\\nrenew or extend a lease —\\nIncome Tax Act 1947\\n2020 Ed.\\n422\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(a) means any commission, legal fees, stamp duty, advertising\\nexpenses and such other expenditure as may be prescribed\\nby rules made under section 7; but\\n(b) excludes any outgoing or expense that is allowed as a\\ndeduction under section 14.\\n[27/2021]\\n(5) No deduction may be allowed under subsection (1) or (2) to a\\nperson in respect of —\\n(a) any lease, or any renewal or extension of a lease, for a term\\nthat (excluding any option for the renewal or extension of\\nthe lease) exceeds 3 years;\\n(b) any acquisition, grant, novation, transfer or assignment\\n(however described) of a lease because of any acquisition,\\nsale, transfer or restructuring of any business; or\\n(c) a lease under an arrangement where the immovable\\nproperty is sold by, and leased back to, the seller of the\\nimmovable property.\\n[14ZG\\n[27/2021]\\nDeduction for expenditure incurred on immovable property\\nwhile vacant\\n14ZF.—(1) This section applies where an immovable property\\nused by a person to derive rental income chargeable to tax under\\nsection 10(1)(f), in the basis period for the year of assessment 2022 or\\na subsequent year of assessment, is vacant during any part of the basis\\nperiod.\\n[27/2021]\\n(2) Subject to subsection (3), for the purpose of ascertaining the\\nrental income derived during the basis period by the person from the\\nimmovable property that is chargeable to tax under section 10(1)(f),\\nthere is to be allowed a deduction for —\\n(a) any expenditure incurred by the person for the repair,\\ninsurance, maintenance or upkeep of the immovable\\nproperty while it is vacant during that basis period; and\\nIncome Tax Act 1947\\n423\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) any amount paid during that basis period in respect of\\nproperty tax charged on that immovable property.\\n[27/2021]\\n(3) A deduction under subsection (2) is allowed to a person only if\\nthe Comptroller is satisfied that the person has made reasonable\\nefforts in the circumstances to procure a lessee for the immovable\\nproperty while it is vacant during the basis period.\\n[14ZH\\n[27/2021]\\nDeduction for qualifying training expenditure for years of\\nassessment 2024 to 2028\\n14ZG.—(1) Subject to this section, for the purpose of ascertaining\\nthe income of a person carrying on a trade or business during the basis\\nperiod for any year of assessment between the years of assessment\\n2024 and 2028 (both years inclusive), there is allowed in respect of all\\nof the person’s trades and businesses, in addition to the deduction\\nunder section 14, a deduction for qualifying training expenditure\\nincurred for the purposes of those trades and businesses computed in\\naccordance with the formula\\nA \\u0003 300%;\\nwhere A is the lower of the following:\\n(a) the qualifying training expenditure incurred during the\\nbasis period for that year of assessment;\\n(b) $400,000.\\n(2) No deduction is allowed to a person under this section in respect\\nof any expenditure that is not allowed a deduction under section 14.\\n(3) For the purposes of subsection (1), where an individual carrying\\non a trade or business through 2 or more firms (excluding\\npartnerships) has, during the basis period for any year of\\nassessment between the years of assessment 2024 and 2028 (both\\nyears inclusive), incurred qualifying training expenditure in respect\\nof such firms for the purposes of the individual’s trade or business, the\\ndeduction that may be allowed to the individual for that expenditure\\nin respect of all of the individual’s trades and businesses must not\\nIncome Tax Act 1947\\n2020 Ed.\\n424\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nexceed the amount computed in accordance with subsection (1) for\\nthat year of assessment.\\n(4) For the purposes of subsection (1), where a partnership carrying\\non a trade or business has, during the basis period for any year of\\nassessment between the years of assessment 2024 and 2028 (both\\nyears inclusive), incurred qualifying training expenditure for the\\npurposes of the partnership’s trade or business, the aggregate of the\\ndeductions that may be allowed to all the partners of the partnership\\nfor that expenditure in respect of all of the trades and businesses of the\\npartnership must not exceed the amount computed in accordance with\\nsubsection (1) for that year of assessment.\\n(5) In this section —\\n“central hirer”, in relation to a central hiring arrangement for a\\ngroup of related parties, means the person that carries out the\\nhiring functions for those parties under the arrangement;\\n“central hiring arrangement” means an arrangement for a group\\nof related parties entered into for a bona fide commercial\\nreason, where the hiring functions of the parties in the group\\nare carried out by a single person;\\n“eligible course” means a course that is attended by an employee\\nof a person carrying on a trade or business and that is —\\n(a) eligible for funding by the SkillsFuture Singapore\\nAgency; and\\n(b) specified on a prescribed Internet website on the date\\nof commencement of the course;\\n“employee”, in relation to a person carrying on a trade or\\nbusiness\\n(called\\nin\\nthis\\ndefinition\\nthe\\nfirst\\nperson),\\nincludes —\\n(a) an individual —\\n(i) who is engaged by the central hirer of a central\\nhiring arrangement for a group of related\\nparties which includes the first person, and\\nwho is deployed to work solely for the first\\nperson; and\\nIncome Tax Act 1947\\n425\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(ii) whose\\nsalary\\nand\\nother\\nremuneration\\n(including training expenditure incurred in\\nrespect of the individual) is borne, directly or\\nindirectly, by the first person and not claimed\\nby the central hirer as a deduction against the\\ncentral hirer’s own income; and\\n(b) an individual, being an employee of another person\\nthat is a related party of the first person —\\n(i) who is seconded to a position of the first person\\nunder a bona fide commercial arrangement to\\nwork solely for the first person; and\\n(ii) whose\\nsalary\\nand\\nother\\nremuneration\\n(including training expenditure in respect of\\nthe individual) is borne, directly or indirectly,\\nby the first person and not claimed by the other\\nperson as a deduction against the other person’s\\nown income;\\n“qualifying training expenditure”, in relation to a person\\ncarrying on a trade or business, means any course fee,\\ncertification fee and assessment fee approved by the\\nSkillsFuture Singapore Agency for an eligible course for\\nthe purpose of this section, and that is paid (whether directly\\nor in the form of a reimbursement of the employee for any\\npayment made) by the person to a provider of the eligible\\ncourse;\\n“SkillsFuture Singapore Agency” means the SkillsFuture\\nSingapore\\nAgency\\nestablished\\nby\\nsection\\n3\\nof\\nthe\\nSkillsFuture Singapore Agency Act 2016.\\n(6) A reference in this section to qualifying training expenditure\\nexcludes any expenditure to the extent that it is or is to be subsidised\\nby any grant or subsidy from the Government or a statutory board\\n(including the SkillsFuture Singapore Agency).\\n[Act 30 of 2023 wef 30/10/2023]\\nIncome Tax Act 1947\\n2020 Ed.\\n426\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nDeduction for expenditure incurred in deriving income from\\nproviding delivery services\\n14ZH.—(1) This section applies for the purpose of ascertaining, for\\nthe basis period for the year of assessment 2024 or a subsequent year\\nof assessment, a qualifying individual’s income from performing\\ndelivery services by prescribed means, that is chargeable to tax under\\nsection 10(1)(a) and in respect of which there are outgoings or\\nexpenses that are deductible under this Part.\\n(2) In\\nthis\\nsection,\\na\\nqualifying\\nindividual’s\\nincome\\nfrom\\nperforming delivery services does not include —\\n(a) any\\nincome\\nfrom\\ndelivery\\nservices\\nnot\\nperformed\\npersonally by the qualifying individual; and\\n(b) any income from delivery services performed by the\\nqualifying individual as an employee of another person.\\n(3) Despite any other provision in this Part, there is to be deducted\\nfrom a qualifying individual’s income for a basis period from\\nperforming delivery services by one or more prescribed means, in lieu\\nof the outgoings or expenses that are deductible under this Part, the\\ntotal of each sum computed by the formula A × B in relation to each\\nof those prescribed means (or a combination thereof), where —\\n(a) A is the prescribed percentage for the prescribed means or\\ncombination of prescribed means; and\\n(b) B is the individual’s gross income for the basis period from\\nperforming delivery services by the prescribed means or\\ncombination of prescribed means.\\n(4) Subsection (3) does not apply if the qualifying individual’s\\ngross income from performing delivery services by prescribed means\\nexceeds $50,000 for the basis period.\\n(5) Subsection (3) does not apply to a qualifying individual who has\\nmade an election under subsection (6) to disapply subsection (3) for\\nthe basis period.\\n(6) A qualifying individual may, in such form and manner and\\nwithin such time as the Comptroller may determine, make an election\\nto the Comptroller to disapply subsection (3) to the individual’s\\nIncome Tax Act 1947\\n427\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nincome from performing delivery services by prescribed means that\\nis derived in the basis period for a particular year of assessment.\\n(7) In this section —\\n“delivery services” means the collection, conveyance and\\ndelivery, for reward, of any cargo not incidental to the\\ncarriage of any passenger;\\n“prescribed means”, in relation to the performance of delivery\\nservices, means such performance —\\n(a) on foot;\\n(b) by public transport;\\n(c) by the use of a bicycle (whether power-assisted or\\nnot);\\n(d) by the use of a motorised personal mobility device;\\n(e) by the use of a motor cycle; or\\n(f) by the use of a van;\\n“prescribed percentage”, in relation to a prescribed means or\\ncombination of prescribed means, means the percentage\\nprescribed in rules made under section 7 that applies to the\\nprescribed means or combination of prescribed means;\\n“qualifying individual”, in relation to any basis period, means an\\nindividual who performs delivery services by prescribed\\nmeans only.\\n[Act 30 of 2023 wef 30/10/2023]\\nDeductions not allowed\\n15.—(1) Despite the provisions of this Act, for the purpose of\\nascertaining the income of any person, no deduction is allowed in\\nrespect of —\\n(a) domestic or private expenses except as provided in\\nsection 14(1)(g);\\n(b) any disbursements or expenses not being money wholly\\nand exclusively laid out or expended for the purpose of\\nacquiring the income;\\nIncome Tax Act 1947\\n2020 Ed.\\n428\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) any capital withdrawn or any sum employed or intended to\\nbe\\nemployed\\nas\\ncapital\\nexcept\\nas\\nprovided\\nin\\nsection 14(1)(h);\\n(d) any\\ncapital\\nemployed\\nin\\nimprovements\\nother\\nthan\\nimprovements effected in the replanting of a plantation;\\n(e) any sum recoverable under an insurance or contract of\\nindemnity;\\n(f) rent or cost of repairs to any premises or part of premises\\nnot paid or incurred for the purpose of producing the\\nincome;\\n(g) any amount paid or payable in respect of income tax in\\nSingapore, or in respect of any tax on income (by whatever\\nname called) in any country outside Singapore;\\n(h) any amount paid or payable in respect of goods and\\nservices tax by the person if the person, being required to\\nbe registered under the Goods and Services Tax Act 1993,\\nhas failed to do so, or if the person is entitled under that Act\\nto credit that amount of tax as an input tax;\\n(i) any payment to any provident, savings, widows’ and\\norphans’\\nor\\nother\\nsociety\\nor\\nfund,\\nincluding\\nthe\\nSupplementary Retirement Scheme, except —\\n(i) such payment made by an employer on behalf of the\\nemployer’s employee to the Central Provident Fund\\nthat is obligatory under the Central Provident Fund\\nAct 1953;\\n(ii) such payment made by an employer on behalf of the\\nemployer’s employee to the retirement account or\\nspecial account of that employee in accordance with\\nsection 18 of the Central Provident Fund Act 1953;\\n(iii) such payment made by an employer on behalf of the\\nemployer’s employee to the SRS account of that\\nemployee up to the amount of the SRS contribution\\ncap applicable to that employee as determined in\\nIncome Tax Act 1947\\n429\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\naccordance\\nwith\\nregulations\\nmade\\nunder\\nsection 10G(11); and\\n(iv) such payments as are allowed under section 14(1)(e),\\n(fb) and (fc);\\n(j) any sum referred to in section 12(6) payable by any person\\noutside Singapore to another person outside Singapore\\nexcept where the sum is exempt from tax, or tax has been\\ndeducted and accounted for under section 45;\\n(k) any outgoings and expenses, whether directly or in the\\nform of reimbursements, and any claim for the cost of\\nrenewal incurred on or after 1 April 1998 in respect of a\\nmotor car (whether owned by the person or any other\\nperson) which is constructed or adapted for the carriage of\\nnot more than 7 passengers (exclusive of the driver) and\\nthe\\nweight\\nof\\nwhich\\nunladen\\ndoes\\nnot\\nexceed\\n3,000 kilograms except —\\n(i) a taxi, but subject to subsection (2D);\\n(ii) a motor car registered outside Singapore and used\\nexclusively outside Singapore;\\n(iii) a private hire car if the person is carrying on the\\nbusiness of hiring out cars and the private hire car is\\nused by the person principally for hiring;\\n(iv) a motor car which was registered before 1 April 1998\\nas a business service passenger vehicle for the\\npurposes of the Road Traffic Act 1961;\\n(v) a motor car registered on or after 1 April 1998 which\\nis used principally for instructional purposes if the\\nperson is carrying on the business of providing\\ndriving instruction and holds a driving school licence\\nor driving instructor’s licence issued under the Road\\nTraffic Act 1961;\\n(vi) a chauffeured private hire car used by the person\\n(being an individual who holds a vocational licence\\ngranted under section 110 of the Road Traffic\\nIncome Tax Act 1947\\n2020 Ed.\\n430\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nAct 1961 authorising the individual to drive, or who\\nis otherwise permitted under that Act to drive, a\\nchauffeured private hire car) other than as an\\nemployee\\nof\\nanother,\\nbut\\nsubject\\nto\\nsubsection (2E); and\\n(vii) a chauffeured private hire car used principally by the\\nperson (not being an individual mentioned in\\nsub‑paragraph (vi)) to carry on the business of\\nproviding\\nchauffeur\\nservices,\\nbut\\nsubject\\nto\\nsubsection (2F);\\n(l) any outgoings and expenses incurred in respect of any\\ndesignated unit trust within the meaning of section 35(14)\\nif the person is a unit holder of such trust;\\n(m) any amount of output tax paid or payable under the Goods\\nand Services Tax Act 1993 which is borne by the person if\\nthe person is registered as a taxable person under that Act,\\nbut not any amount of output tax paid or payable on a\\nreverse charge supply under section 14(2) of that Act, to\\nthe extent that credit of such amount as input tax is not\\nallowed under that Act;\\n(n) [Deleted by Act 37 of 2014]\\n(o) [Deleted by Act 19 of 2013]\\n(p) any outgoings and expenses, whether directly or in the\\nform of reimbursements, incurred in respect of any right or\\nbenefit granted to any person to acquire shares on or after\\n1 January 2002 in any company, if the right or benefit is not\\ngranted by reason of any office or employment held in\\nSingapore by the person; or\\n(q) any outgoings and expenses, whether directly or in the\\nform of reimbursements, incurred by any company in\\nrespect of any right or benefit granted to any person, by\\nreason of any office or employment held in Singapore by\\nthat person, to acquire shares (other than treasury shares, or\\nshares in respect of which the company is allowed a\\nIncome Tax Act 1947\\n431\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\ndeduction under section 14M(7)) of a holding company of\\nthat company.\\n[37/2014; 45/2018; 52/2018; 32/2019; 41/2020]\\n(2) Subsection (1)(b) and (d) does not apply to any expenditure\\nwhich qualifies for deduction under section 14A, 14C, 14D, 14E,\\n14EA, 14F, 14G, 14H, 14I, 14J, 14K, 14L, 14M, 14N, 14P, 14S, 14T\\nor 14U.\\n[2/2016; 39/2017; 41/2020]\\n[Act 30 of 2023 wef 30/10/2023]\\n(2A) Subsection (1)(b) does not apply to any expenditure which\\nqualifies for deduction under section 14V or 14Z.\\n[37/2014; 34/2016]\\n(2B) Subsection (1)(b) and (c) does not apply to any expenditure\\nwhich qualifies for deduction under section 14Y.\\n[34/2016]\\n(2C) Besides subsection (1)(b) and (d) (which is disapplied under\\nsubsection (2)), the other paragraphs of subsection (1) also do not\\napply\\nto\\nexpenditure\\nwhich\\nqualifies\\nfor\\ndeduction\\nunder\\nsection 14C(1)(g).\\n[39/2017]\\n(2D) For the purposes of subsection (1)(k)(i) —\\n(a) outgoings and expenses incurred on or after 12 November\\n2018 are only deductible if they are attributable to the use\\nof the taxi for an authorised purpose; and\\n(b) the cost of renewal in respect of the taxi incurred on or after\\nthat date is only deductible if the person is one to whom an\\nallowance under section 19 may be made in respect of the\\ntaxi by reason of that person being one mentioned in\\nsection 19(5)(a)(i), (ii) or (iii).\\n[45/2018]\\n(2E) Subsection (1)(k)(vi) —\\n(a) only applies to outgoings and expenses incurred in the\\nbasis period for the year of assessment 2019 or a\\nsubsequent year of assessment and that are attributable\\nto the use of the chauffeured private hire car for an\\nauthorised purpose; and\\nIncome Tax Act 1947\\n2020 Ed.\\n432\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) does not apply to the cost of renewal in respect of the car.\\n[45/2018]\\n(2F) Subsection (1)(k)(vii) only applies to outgoings and expenses,\\nand the cost of renewal in respect of the chauffeured private hire car,\\nincurred in the basis period for the year of assessment 2021 or a\\nsubsequent year of assessment.\\n[41/2020]\\n(2G) Subsection (1)(b) and (c) does not apply to any expenditure\\nthat qualifies for deduction under section 14ZE.\\n[27/2021]\\n(2H) Subsection (1)(b) and (f) does not apply to any expenditure\\nthat qualifies for deduction under section 14ZF.\\n[27/2021]\\n(3) [Deleted by Act 33 of 2022 wef 04/11/2022]\\n(4) In this section, “authorised purpose” and “chauffeured private\\nhire car” have the meanings given by section 14ZA(8).\\n[45/2018]\\nLimit on deduction allowed for leasing or licensing expenditure\\nin 2020\\n15A.—(1) No deduction is allowed in respect of expenditure\\nincurred in the year 2020 by a person on leasing or licensing any\\nimmovable property in relation to which a remission of property tax is\\ngiven by the Property Tax (Non‑Residential Properties) (Remission)\\nOrder 2020, of an amount described in subsection (2).\\n[41/2020]\\n(2) The amount mentioned in subsection (1) is any of the following,\\nas applicable:\\n(a) the amount in the form of monetary payments of any\\nbenefit\\n(as\\ndefined\\nin\\nthe\\nCOVID‑19\\n(Temporary\\nMeasures)\\n(Transfer\\nof\\nBenefit\\nof\\nProperty\\nTax\\nRemission)\\nRegulations\\n2020)\\nof\\nthe\\nreduction\\nin\\nproperty tax as a result of the remission that the owner\\nof the immovable property is required under section 29(2)\\nof the COVID‑19 (Temporary Measures) Act 2020 to pass\\non to the person in the year 2020;\\nIncome Tax Act 1947\\n433\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) the amount in the form of monetary payments that the\\nowner of the immovable property has passed on or has\\nagreed to pass on to the person in the year 2020, and by\\nreason of which the owner is exempt from section 29(2) of\\nthe COVID‑19 (Temporary Measures) Act 2020 under\\nregulation 13(2) of the COVID‑19 (Temporary Measures)\\n(Transfer\\nof\\nBenefit\\nof\\nProperty\\nTax\\nRemission)\\nRegulations 2020;\\n(c) the amount of any other monetary payments received or\\nreceivable by the person from the person’s lessor or\\nlicensor in the year 2020, but only if the Comptroller is\\nsatisfied that the payments are intended by the lessor or\\nlicensor to provide relief to the person from any economic\\nhardship arising from a COVID‑19 event;\\n(d) the total of the amounts in paragraphs (a), (b) and (c).\\n[41/2020]\\n(3) In this section, “COVID‑19 event”, “monetary payment” and\\n“owner”, in relation to immovable property, have the meanings given\\nby section 13X(6).\\n[41/2020]\\nLimit on deduction allowed for leasing or licensing expenditure\\nin 2021\\n15B.—(1) No deduction is allowed in respect of any expenditure\\nincurred in the year 2021 by a person who is a lessee or licensee of\\nany prescribed property on the leasing or licensing of that property, of\\nan amount described in subsection (2).\\n[27/2021]\\n(2) The amount mentioned in subsection (1) is the amount of any\\nmonetary payment received or receivable by the person from the\\nperson’s lessor or licensor in the year 2021, which —\\n(a) is made by the lessor or licensor pursuant to an undertaking\\ngiven by the lessor or licensor to his, her or its lessor or\\nlicensor, to provide relief to the person from any economic\\nhardship arising from a COVID‑19 event; or\\nIncome Tax Act 1947\\n2020 Ed.\\n434\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) the Comptroller is satisfied is intended by the lessor or\\nlicensor to provide relief to the person from any economic\\nhardship arising from a COVID‑19 event.\\n[27/2021]\\n(3) In this section, “COVID‑19 event”, “monetary payment” and\\n“prescribed property” have the meanings given by section 13X(6).\\n[27/2021]\\nPART 6\\nCAPITAL ALLOWANCES\\nInitial and annual allowances for industrial buildings and\\nstructures\\n16.—(1) Where, in or after the basis period for the first year of\\nassessment under this Act, a person incurs capital expenditure on the\\nconstruction of a building or structure which is to be an industrial\\nbuilding or structure occupied for the purposes of a trade, there is to\\nbe made to the person who incurred the expenditure for the year of\\nassessment in the basis period for which the expenditure was incurred\\nan allowance to be known as an “initial allowance” equal to\\n25% thereof.\\n(2) For the purposes of subsection (1) —\\n(a) where 2 basis periods overlap, the period common to both\\nis deemed to fall in the first basis period only;\\n(b) where there is an interval between the end of the basis\\nperiod for a year of assessment and the commencement of\\na basis period for the next succeeding year of assessment,\\nthen, unless the second‑mentioned year of assessment is\\nthe year of the permanent discontinuance of the trade, the\\ninterval is deemed to be part of the second basis period; and\\n(c) where there is an interval between the end of the basis\\nperiod for the year of assessment preceding that in which\\nthe\\ntrade\\nis\\npermanently\\ndiscontinued\\nand\\nthe\\ncommencement of the basis period for the year in which\\nit is permanently discontinued, the interval is deemed to\\nform part of the first basis period.\\nIncome Tax Act 1947\\n435\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(3) Any capital expenditure incurred for the purposes of a trade by a\\nperson about to carry on that trade is treated for the purposes of\\nsubsection (1) as if it had been incurred by that person on the first day\\non which that person does carry on that trade.\\n(4) Where any person is, at the end of the basis period for any year\\nof assessment, entitled to an interest in a building or structure which is\\nan industrial building or structure and where that interest is the\\nrelevant interest in relation to the capital expenditure incurred before\\n1 January 2006 on the construction of that building or structure, an\\nallowance, to be known as an “annual allowance”, equal to 3% of the\\ntotal capital expenditure incurred by that person on the construction\\nof that building or structure is to be made to that person for that year\\nof assessment.\\n(5) Where at any time in or after the basis period for the first year of\\nassessment under this Act and before 1 January 2006, the interest in a\\nbuilding or structure which is the relevant interest in relation to any\\ncapital expenditure incurred before that date on the construction of\\nthat building or structure is sold while the building or structure is an\\nindustrial building or structure or after it has ceased to be one, the\\nannual allowance, in the years of assessment the basis periods for\\nwhich end after the time of that sale, is to be computed by reference to\\nthe residue of that expenditure immediately after the sale and is —\\n(a) the fraction of that residue the numerator of which is one\\nand the denominator of which is the number of years of\\nassessment comprised in the period which begins with the\\nfirst year of assessment for which the buyer is entitled to an\\nannual allowance or would be so entitled if the building or\\nstructure had at all material times continued to be an\\nindustrial building or structure, and ends with the fiftieth\\nyear after that in which the building or structure was first\\nused; or\\n(b) 3% of that residue,\\nwhichever is the greater, and so on for any subsequent sales.\\n(6) In the case referred to in subsection (4), no annual allowance\\nmay be made to any person for any year of assessment after the end of\\nIncome Tax Act 1947\\n2020 Ed.\\n436\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthe fiftieth year after that in which the building or structure was first\\nused.\\n(6A) Where any person is, at the end of the basis period for any year\\nof assessment, entitled to an interest in a building or structure which is\\nan industrial building or structure, and that interest is the relevant\\ninterest in relation to —\\n(a) any capital expenditure incurred by the person on or after\\n1 January 2006 on the construction of that building or\\nstructure; or\\n(b) a sale or purchase agreement entered into for that building\\nor structure on or after that date, whether or not the\\nbuilding or structure was previously used as an industrial\\nbuilding or structure,\\nan annual allowance determined under subsection (6B) is to be made\\nto the person for that year of assessment.\\n(6B) The annual allowance under subsection (6A) is equal to —\\n(a) in the case referred to in subsection (6A)(a), 3% of the total\\ncapital expenditure incurred by the person on the\\nconstruction of the building or structure; or\\n(b) in the case referred to in subsection (6A)(b), 3% of the\\ncapital expenditure incurred by the person on the purchase\\nof the building or structure.\\n(7) For the purposes of application to any industrial building or\\nstructure occupied for the purposes of a trade in intensive poultry\\nproduction and approved by the Minister or such person as the\\nMinister may appoint under section 18(1), the reference to 3% in\\nsubsections (4), (5) and (6B) and in sections 17(3)(a) and 18(9) is a\\nreference to 5%.\\n(8) For the purposes of application to any industrial building or\\nstructure occupied for the purposes of a hotel on the island of Sentosa\\nand approved by the Minister or such person as the Minister may\\nappoint under section 18(1) —\\n(a) the reference to 25% in subsection (1) is a reference to\\n20%;\\nIncome Tax Act 1947\\n437\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) the reference to 3% in subsections (4), (5) and (6B) and in\\nsections 17(3)(a) and 18(9) is a reference to 2%; and\\n(c) the reference to capital expenditure in subsections (1) and\\n(4) does not include any capital expenditure incurred\\nbefore 1 January 1982.\\n(9) For the purposes of application to any industrial building or\\nstructure used for the purposes of a project for the promotion of the\\ntourist industry (other than a hotel) in Singapore and approved by the\\nMinister or such person as the Minister may appoint under\\nsection 18(1)(i) —\\n(a) the reference to 25% in subsection (1) is a reference to\\n20%;\\n(b) the reference to 3% in subsections (4), (5) and (6B) and in\\nsections 17(3)(a) and 18(9) is a reference to 2%; and\\n(c) the reference to capital expenditure in subsections (1), (3)\\nand (4) does not include any capital expenditure incurred\\nbefore 1 January 1986.\\n(10) Despite anything in this section and section 17, where a person\\ncarrying out a project for the promotion of the tourist industry\\napproved by the Minister or such person as the Minister may appoint\\nunder section 18(1)(i) fails to comply with any condition imposed by\\nthe Minister, the Minister may revoke the approval and thereupon the\\nComptroller may at any time within 6 years (if the year of assessment\\nrelating to the basis period in which the approval is revoked is 2007 or\\na preceding year of assessment) or 4 years (if the year of assessment\\nrelating to the basis period in which the approval is revoked is 2008 or\\na subsequent year of assessment) from the date of the revocation\\nmake such assessment or additional assessment upon the person as\\nmay appear necessary in order to recover any tax which ought to have\\nbeen paid by that person if any allowances under those sections had\\nnot been made to that person.\\n(11) Despite anything in this section, the amount of an annual\\nallowance made to a person for any year of assessment in respect of\\nany expenditure must not in any case exceed what, apart from the\\nwriting off falling to be made by reason of the making of that\\nIncome Tax Act 1947\\n2020 Ed.\\n438\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nallowance, would be the residue of that expenditure at the end of the\\nperson’s basis period for that year of assessment.\\n(12) For the purposes of subsection (1), where a person has incurred\\ncapital expenditure before 1 January 2006 on the purchase of an\\nindustrial building or structure (including the purchase of a leasehold\\ninterest therein of not less than 25 years) which has not previously\\nbeen used by any person, the person is deemed to have incurred\\nexpenditure on the construction of that industrial building or structure\\nequal to the cost of construction of that industrial building or structure\\nor to the net price paid by the person for that industrial building or\\nstructure or the interest therein, whichever is less, if —\\n(a) the person claiming the initial allowance by virtue of this\\nsubsection purchased the industrial building or structure or\\nacquired the leasehold interest therein from the person who\\nconstructed that building or structure; and\\n(b) no initial allowance has been granted under subsection (1)\\nin respect of that industrial building or structure to the\\nperson who constructed that building or structure.\\n(13) For the purposes of subsection (1), where a person has incurred\\ncapital expenditure on or after 1 January 2006 on the purchase of an\\nindustrial building or structure which has not previously been used by\\nany person, the person is deemed to have incurred expenditure on the\\nconstruction of that industrial building or structure equal to the capital\\nexpenditure incurred by the person on the purchase of that industrial\\nbuilding or structure if —\\n(a) the person claiming the initial allowance by virtue of this\\nsubsection purchased the industrial building or structure\\nfrom the person who constructed that building or structure;\\nand\\n(b) no initial allowance has been granted under subsection (1)\\nin respect of that industrial building or structure to the\\nperson who constructed that building or structure.\\n(14) Unless otherwise provided in this Act or the Economic\\nExpansion Incentives (Relief from Income Tax) Act 1967, where,\\nin the basis period for any year of assessment, the trade, for which\\nIncome Tax Act 1947\\n439\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\npurpose the industrial building is used, produces income that is\\nexempt from tax as well as income chargeable with tax, the\\nallowances for that year of assessment must be made against each\\nincome for that year of assessment in such proportion as appears\\nreasonable to the Comptroller in the circumstances.\\n(15) Subject to section 18B, this section does not apply to any\\ncapital expenditure incurred on or after 23 February 2010 on the\\nconstruction or purchase of an industrial building or structure.\\n(16) Subject to subsection (18) and section 18B, no annual\\nallowance may be made under subsections (4), (5) and (6A) to a\\nperson who incurs capital expenditure on or before 22 February 2010\\non the construction or purchase of a building or structure which is not\\nan industrial building or structure on 22 February 2010 but is an\\nindustrial building or structure on or after 23 February 2010.\\n(17) Section 18(2) and (3) applies for the purpose of determining\\nunder subsection (16) whether a building or structure is an industrial\\nbuilding or structure on 22 February 2010.\\n(18) Despite\\nsubsection\\n(16),\\nannual\\nallowances\\nunder\\nsubsection (6A)(a) are to be made to a person who incurs capital\\nexpenditure on or before 22 February 2010 on a building or structure\\nwhich is still under construction on 22 February 2010 and which is to\\nbe an industrial building or structure upon completion of that\\nconstruction, if the person —\\n(a) on or before 22 February 2010 —\\n(i) has been granted the option to purchase the land or\\nhas entered into a sale and purchase agreement for\\nthe land on which the industrial building or structure\\nis to be constructed;\\n(ii) has entered into a lease agreement to lease the land\\non which the industrial building or structure is to be\\nconstructed; or\\n(iii) has submitted an application to the Government or\\nany statutory board —\\nIncome Tax Act 1947\\n2020 Ed.\\n440\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(A) to bid for the purchase therefrom of the land on\\nwhich the industrial building or structure is to\\nbe constructed; or\\n(B) to lease therefrom the land on which the\\nindustrial\\nbuilding\\nor\\nstructure\\nis\\nto\\nbe\\nconstructed; and\\n(b) on or before 31 December 2010, has made an application\\nfor planning permission or conservation permission to the\\ncompetent authority in accordance with the Planning\\nAct 1998 for the development of the land comprising the\\nconstruction work.\\nBalancing allowances and charges for industrial buildings and\\nstructures\\n17.—(1) Where any of the events referred to in subsection (1A)\\noccurs while a building or structure is an industrial building or\\nstructure or after it has ceased to be one and —\\n(a) any\\ncapital\\nexpenditure\\nhas\\nbeen\\nincurred\\non\\nthe\\nconstruction of the building or structure before 1 January\\n2006; or\\n(b) either —\\n(i) any capital expenditure has been incurred on the\\nconstruction of the building or structure on or after\\n1 January 2006; or\\n(ii) a sale and purchase agreement for the building or\\nstructure was entered into on or after that date,\\nthen an allowance or a charge, to be known as a “balancing\\nallowance” or a “balancing charge” is, in the circumstances\\nmentioned in this section, to be made to or (as the case may be) on\\nthe person entitled to the relevant interest immediately before that\\nevent occurs for the year of assessment in the basis period for which\\nthat event occurs.\\n(1A) The events referred to in subsection (1) are —\\n(a) the relevant interest in the building or structure is sold;\\nIncome Tax Act 1947\\n441\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) that interest, being a leasehold interest, comes to an end\\notherwise than on the person entitled thereto acquiring the\\ninterest which is reversionary thereon;\\n(c) the building or structure is demolished or destroyed or,\\nwithout being demolished or destroyed, ceases altogether\\nto be used.\\n(2) In the case referred to in subsection (1)(a), no balancing\\nallowance or balancing charge may be made to or on any person for\\nany year of assessment by reason of any event occurring after the end\\nof the fiftieth year after that in which the building or structure was\\nfirst used.\\n(3) No balancing allowance may be made to any person —\\n(a) on the sale of the relevant interest in the building or\\nstructure unless the person proves to the Comptroller’s\\nsatisfaction that the value of the building or structure to the\\nperson is less than —\\n(i) in the case referred to in subsection (1)(a), the\\namount of the capital expenditure incurred on the\\nconstruction of the building or structure reduced by\\nthe amount of any initial and annual allowances\\nmade (including an amount of 3% of the capital\\nexpenditure for each year in which no initial or\\nannual allowance was made); or\\n(ii) in the case referred to in subsection (1)(b), the\\namount of the capital expenditure incurred by the\\nperson on the construction or purchase of the\\nbuilding or structure (as the case may be) reduced\\nby the amount of any initial and annual allowances\\nmade (including an amount of 3% of the capital\\nexpenditure for each year in which no initial or\\nannual allowance was made); or\\n(b) where the relevant interest in the building or structure is\\nnot sold but the building or structure is or would be\\nredeveloped for any use other than as an industrial building\\nor structure.\\nIncome Tax Act 1947\\n2020 Ed.\\n442\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(4) Where there are no sale, insurance, salvage or compensation\\nmoneys, or where the residue of the expenditure immediately before\\nthe event exceeds those moneys, a balancing allowance is to be made\\nand the amount thereof is the amount of the residue or (as the case\\nmay be) of the excess thereof over the moneys.\\n(5) If the sale, insurance, salvage or compensation moneys exceed\\nthe residue (if any) of the expenditure immediately before the event, a\\nbalancing charge is to be made and the amount on which it is made is\\nan amount equal to the excess or, where the residue is nil, to the\\nmoneys.\\n(6) Despite anything in subsection (5) but subject to subsection (7),\\nthe amount on which a balancing charge is made on a person must not\\nin any case exceed the aggregate of the following amounts:\\n(a) the amount of the initial allowance (if any) made to the\\nperson in respect of the expenditure in question;\\n(b) the amount of the annual allowances (if any) made to the\\nperson in respect of the expenditure in question.\\n(7) Unless otherwise provided in this Act or the Economic\\nExpansion Incentives (Relief from Income Tax) Act 1967, where,\\nin the basis period for any year of assessment, the trade, for which\\npurpose the industrial building is used, produces income that is\\nexempt from tax as well as income chargeable with tax, and any\\nbalancing allowance or balancing charge arises to be made —\\n(a) the balancing allowance must be made against each\\nincome for that year of assessment in such proportion as\\nappears\\nreasonable\\nto\\nthe\\nComptroller\\nin\\nthe\\ncircumstances; and\\n(b) such proportion of the balancing charge is exempt from tax\\nas\\nappears\\nreasonable\\nto\\nthe\\nComptroller\\nin\\nthe\\ncircumstances.\\n(8) Where allowances have been made under both sections 16 and\\n18C in respect of any industrial building or structure, then, for the\\npurposes of subsections (4) and (5), the sale, insurance, salvage or\\ncompensation moneys in respect of that building or structure is such\\nIncome Tax Act 1947\\n443\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\namount of those moneys as the Comptroller determines to be\\nreasonable in the circumstances.\\n(9) Where the relevant interest in a building or structure in respect\\nof which allowances have been made under section 16 is transferred\\nat less than the open‑market price, then for the purpose of\\ndetermining\\nthe\\namount\\nof\\nany\\nbalancing\\ncharge\\nunder\\nsubsection (5), the relevant interest in the building or structure is\\ntreated as if it had been sold for an amount equal to the open‑market\\nprice of the building or structure as at the date of transfer.\\nDefinitions for sections 16, 17 and 18B\\n18.—(1) Subject to this section, in sections 16, 17 and 18B,\\n“industrial building or structure” means a building or structure in\\nuse —\\n(a) for the purposes of a trade carried on in a mill, factory or\\nother similar premises;\\n(b) for the purposes of a transport, dock, water or electricity\\nundertaking;\\n(c) for the purposes of a trade which consists in the\\nmanufacture of goods or materials or the subjection of\\ngoods or materials to any process;\\n(d) for the purposes of a trade which consists in the storage of\\ngoods or materials which are to be used in the manufacture\\nof other goods or to be subjected, in the course of a trade, to\\nany process;\\n(e) for the purposes of a trade which consists of the storage of\\ngoods or materials on their arrival in Singapore;\\n(f) for the purposes of a trade in intensive poultry production\\nas may be approved on or before 22 May 2010 by the\\nMinister or such person as the Minister may appoint;\\n(g) by a research and development organisation in carrying out\\nresearch and development activities for any manufacturing\\ntrade or business;\\nIncome Tax Act 1947\\n2020 Ed.\\n444\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(h) for the purposes of a hotel on the island of Sentosa and\\napproved before 1 September 2007 by the Minister or such\\nperson as the Minister may appoint (called in this section a\\nSentosa hotel);\\n(i) for the purposes of a project for the promotion of the tourist\\nindustry (other than a hotel) in Singapore and approved on\\nor before 22 May 2010 by the Minister or such person as\\nthe Minister may appoint subject to such conditions as he\\nor she may impose; or\\n(j) for prescribed purposes and where such building or\\nstructure has been approved on or before 22 May 2010\\nby the Minister or such person as the Minister may appoint\\nsubject to such conditions as he or she may impose,\\nand includes any building or structure provided by the person\\ncarrying on such a trade or undertaking for the welfare of workers\\nemployed in that trade or undertaking and in use for that purpose, but\\ndoes not include a building or structure in respect of which a\\ndeduction is prescribed under section 14(1)(h).\\n(2) A building or structure is not deemed, by reason only of its\\nfalling or having fallen into temporary disuse, to have thereby ceased\\naltogether to be used for one of the purposes specified in\\nsubsection (1) if, immediately prior to falling into such temporary\\ndisuse, it was in use for such a purpose and if, during the period of\\nsuch temporary disuse, it is constantly maintained in readiness to be\\nbrought back into use for such a purpose.\\n(3) If, in the circumstances mentioned in subsection (2), the\\nbuilding or structure at any time during disuse ceases to be ready\\nfor use for any of the purposes mentioned in that subsection, or if at\\nany time, for any reason, the disuse of the building or structure can no\\nlonger be reasonably regarded as temporary, then and in any such\\ncase, the building or structure is deemed to have ceased, on the\\ncommencement of the period of disuse, to be used for any of the\\npurposes specified in subsection (1).\\n(4) Subsection (1) applies in relation to a part of a trade or\\nundertaking as it applies to a trade or undertaking.\\nIncome Tax Act 1947\\n445\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(5) Where part only of a trade or undertaking complies with the\\nconditions set out in subsection (1), a building or structure is not, by\\nvirtue of subsection (4), an industrial building or structure unless it is\\nin use for the purposes of that part of that trade or undertaking.\\n(6) Despite anything in subsection (1), (2), (3), (4) or (5),\\n“industrial building or structure” does not include any building or\\nstructure in use as, or as part of, a dwelling house, retail shop,\\nshowroom, hotel (other than a Sentosa hotel) or office or for any\\npurpose ancillary to the purposes of a dwelling house, retail shop,\\nshowroom, hotel (other than a Sentosa hotel) or office.\\n(7) Where part of a building or structure is, and part thereof is not,\\nan industrial building or structure, and —\\n(a) in a case where capital expenditure is incurred on the\\nconstruction of the building or structure before 1 January\\n2006, the capital expenditure incurred on the construction\\nof the second‑mentioned part is not more than one‑tenth of\\nthe total capital expenditure which has been incurred on the\\nconstruction of the whole building or structure; or\\n(b) in a case where —\\n(i) capital expenditure is incurred on the construction of\\nthe building or structure on or after 1 January 2006;\\nor\\n(ii) a sale and purchase agreement was entered into for\\nthe building or structure on or after that date,\\n(b) the capital expenditure incurred on the construction or\\npurchase (as the case may be) of the second‑mentioned\\npart is not more than one‑tenth of the total capital\\nexpenditure which has been incurred on the construction\\nor purchase of the whole building or structure,\\nthen the whole building or structure and every part thereof is treated\\nas an industrial building or structure.\\n(7A) Where the Comptroller is satisfied that it is not reasonably\\npracticable to determine the capital expenditure incurred on the\\nsecond‑mentioned\\npart\\nof\\nthe\\nbuilding\\nor\\nstructure\\nunder\\nIncome Tax Act 1947\\n2020 Ed.\\n446\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nsubsection (7), the whole building or structure and every part thereof\\nmay be treated as an industrial building or structure if —\\n(a) the floor area of the part of the building or structure that is\\nnot an industrial building or structure is not more than\\none‑tenth of the total floor area of the whole building or\\nstructure; or\\n(b) the Comptroller is otherwise satisfied that it is just and\\nproper to do so.\\n(8) In this section and sections 16, 17 and 18B —\\n“capital expenditure”, in relation to the purchase of a building or\\nstructure, means the net price paid for the building or\\nstructure, but does not include the cost of land as determined\\nto the Comptroller’s satisfaction;\\n“relevant interest” means —\\n(a) in relation to any capital expenditure incurred on the\\nconstruction of a building or structure, the interest in\\nthat building or structure to which the person who\\nincurred the expenditure was entitled when the\\nperson incurred it; and\\n(b) in relation to a sale and purchase agreement for a\\nbuilding or structure, the interest in that building or\\nstructure to which the purchaser was entitled when\\nthe purchaser entered into the agreement;\\n“residue of expenditure” means —\\n(a) in relation to any capital expenditure incurred on the\\nconstruction of a building or structure before\\n1\\nJanuary\\n2006,\\nthe\\namount\\nof\\nthe\\ncapital\\nexpenditure incurred on such construction reduced\\nby —\\n(i) the amount of any initial allowance made;\\n(ii) any annual allowance made; and\\n(iii) any balancing allowances granted,\\n(a) and increased by any balancing charges made; or\\nIncome Tax Act 1947\\n447\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) in relation to any capital expenditure incurred on the\\nconstruction or purchase of a building or structure on\\nor after 1 January 2006, the amount of the capital\\nexpenditure\\nincurred\\non\\nsuch\\nconstruction\\nor\\npurchase (as the case may be) reduced by —\\n(i) the amount of any initial allowance made; and\\n(ii) any annual allowance made.\\n(9) For the purpose of computing the residue of expenditure, an\\namount of 3% of the expenditure must be written off in respect of any\\nyear in which no initial or annual allowance has been made.\\n18A. [Repealed by Act 21 of 2003]\\nTransitional provisions for capital expenditure incurred on\\nindustrial buildings or structures on or after 23 February 2010\\n18B.—(1) Despite section 16(15) but subject to subsection (11),\\nwhere a person incurs on or after 23 February 2010 capital\\nexpenditure on the construction of a building or structure which is\\nto be an industrial building or structure upon the completion of the\\nconstruction works, other than one referred to in subsection (2), and\\nthe person —\\n(a) on or before 22 February 2010 —\\n(i) has been granted the option to purchase the land or\\nhas entered into a sale and purchase agreement for\\nthe land on which the industrial building or structure\\nis to be constructed;\\n(ii) has entered into a lease agreement to lease the land\\non which the industrial building or structure is to be\\nconstructed; or\\n(iii) has submitted an application to the Government or\\nany statutory board —\\n(A) to bid for the purchase therefrom of the land on\\nwhich the industrial building or structure is to\\nbe constructed; or\\nIncome Tax Act 1947\\n2020 Ed.\\n448\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(B) to lease therefrom the land on which the\\nindustrial\\nbuilding\\nor\\nstructure\\nis\\nto\\nbe\\nconstructed; and\\n(b) on or before 31 December 2010, has made an application\\nfor planning permission or conservation permission to the\\ncompetent authority in accordance with the Planning\\nAct 1998 for the development of the land comprising the\\nconstruction work,\\nthere are to be made to that person an initial allowance and annual\\nallowances in respect of that capital expenditure computed in\\naccordance with section 16.\\n(2) Despite section 16(15) but subject to subsection (11), where a\\nperson incurs on or after 23 February 2010 capital expenditure on the\\nconstruction of a building or structure which is to be an industrial\\nbuilding or structure by virtue of paragraph (f), (i) or (j) of\\nsection 18(1) upon completion of the construction works, there are\\nto be made to that person an initial allowance and annual allowances\\nin respect of that capital expenditure computed in accordance with\\nsection 16.\\n(3) Despite section 16(15), where a person —\\n(a) on or before 22 February 2010 —\\n(i) has been granted an option to purchase, or has\\nentered into a sale and purchase agreement for, a new\\nbuilding or structure which is to be an industrial\\nbuilding or structure upon the purchase other than\\none referred to in subsection (4); or\\n(ii) has been granted an option to acquire or has entered\\ninto an agreement to acquire the leasehold interest in\\nsuch a building or structure; and\\n(b) on or after 23 February 2010, incurs capital expenditure on\\nthe purchase of the building or structure or of the leasehold\\ninterest therein,\\nIncome Tax Act 1947\\n449\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthere are to be made to that person an initial allowance and annual\\nallowances in respect of that capital expenditure computed in\\naccordance with section 16.\\n(4) Despite section 16(15) but subject to subsection (12), where a\\nperson incurs on or after 23 February 2010 capital expenditure on the\\npurchase of a new building or structure (including the purchase of a\\nleasehold interest therein), and the building or structure is to be an\\nindustrial building or structure by virtue of paragraph (f), (i) or (j) of\\nsection 18(1) upon the purchase or the completion of any renovation\\nor refurbishment works carried out on the building or structure upon\\nthe purchase, there are to be made to that person an initial allowance\\nand annual allowances in respect of the capital expenditure, as well as\\nthe capital expenditure incurred on such renovation or refurbishment\\nworks, both to be computed in accordance with section 16.\\n(5) Despite section 16(15), where a person —\\n(a) on or before 22 February 2010 —\\n(i) has been granted an option to purchase, or has\\nentered into a sale and purchase agreement for, a\\nbuilding or structure (not being a new building or\\nstructure) which is to be an industrial building or\\nstructure upon the purchase other than one referred to\\nin subsection (6); or\\n(ii) has been granted an option to acquire or has entered\\ninto an agreement to acquire the leasehold interest in\\nsuch a building or structure; and\\n(b) on or after 23 February 2010, incurs capital expenditure on\\nthe purchase of the building or structure or of the leasehold\\ninterest therein,\\nthere are to be made to that person annual allowances in respect of\\nthat capital expenditure computed in accordance with section 16.\\n(6) Despite section 16(15) but subject to subsection (12), where a\\nperson incurs on or after 23 February 2010 capital expenditure on the\\npurchase of a building or structure (not being a new building or\\nstructure), or of a leasehold interest therein, and the building or\\nstructure is to be an industrial building or structure by virtue of\\nIncome Tax Act 1947\\n2020 Ed.\\n450\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nparagraph (f), (i) or (j) of section 18(1) upon the purchase or the\\ncompletion of any renovation or refurbishment works carried out on\\nthe building or structure upon the purchase, there are to be made to\\nthat person, in accordance with section 16 —\\n(a) annual allowances in respect of the capital expenditure;\\nand\\n(b) an initial allowance and annual allowances in respect of\\ncapital expenditure incurred on such renovation or\\nrefurbishment works.\\n(7) Despite section 16(15) and (16) but subject to subsection (11),\\nwhere a person —\\n(a) on or after 23 February 2010, incurs capital expenditure on\\nextension works carried out on an existing building or\\nstructure that (together with the extension thereto) is to be\\nan industrial building or structure, other than one referred\\nto in subsection (8), upon the completion of the extension\\nworks;\\n(b) on or before 22 February 2010, enters into a written\\nagreement for a qualified person to carry out the extension\\nworks; and\\n(c) on or before 31 December 2010, makes an application for\\nplanning permission or conservation permission to the\\ncompetent authority in accordance with the Planning\\nAct 1998 for the development of the land comprising the\\nextension works,\\nthere are to be made to that person, computed in accordance with\\nsection 16 —\\n(d) an initial allowance and annual allowances in respect of the\\ncapital expenditure incurred on the extension works; and\\n(e) where the existing building or structure is not an industrial\\nbuilding or structure on 22 February 2010, annual\\nallowances in respect of any capital expenditure incurred\\nbefore 23 February 2010 on the construction or purchase or\\nIncome Tax Act 1947\\n451\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthe residue of that expenditure (as the case may be) of that\\nbuilding or structure.\\n(8) Despite section 16(15) and (16) but subject to subsection (11),\\nwhere a person incurs on or after 23 February 2010 capital\\nexpenditure\\non\\nextension\\nworks\\nto\\nan\\nexisting\\nbuilding\\nor\\nstructure, not being an industrial building or structure on or at any\\ntime before 22 February 2010, that (together with the extension\\nthereto) is to be an industrial building or structure by virtue of\\nparagraph (f), (i) or (j) of section 18(1) upon the completion of the\\nextension works, there are to be made to that person, computed in\\naccordance with section 16 —\\n(a) an initial allowance and annual allowances in respect of the\\ncapital expenditure; and\\n(b) annual allowances in respect of any capital expenditure\\nincurred before 23 February 2010 on the construction or\\npurchase or the residue of that expenditure (as the case may\\nbe) of the existing building or structure.\\n(9) Despite section 16(15) and (16) but subject to subsection (12),\\nwhere a person incurs on or after 23 February 2010 capital\\nexpenditure on renovation or refurbishment works on an existing\\nbuilding or structure, and —\\n(a) the building or structure is to be an industrial building or\\nstructure, other than one referred to in subsection (10),\\nupon the completion of the renovation or refurbishment\\nworks; and\\n(b) such renovation or refurbishment works are carried out\\npursuant to a written agreement entered into with a\\nrenovation contractor on or before 22 February 2010,\\nthere are to be made to that person, computed in accordance with\\nsection 16 —\\n(c) an initial allowance and annual allowances in respect of the\\ncapital\\nexpenditure\\nincurred\\non\\nthe\\nrenovation\\nor\\nrefurbishment works; and\\nIncome Tax Act 1947\\n2020 Ed.\\n452\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(d) where the existing building or structure is not an industrial\\nbuilding or structure on 22 February 2010, annual\\nallowances in respect of the capital expenditure incurred\\nbefore 23 February 2010 on the construction or purchase or\\nthe residue of that expenditure (as the case may be) of that\\nbuilding or structure.\\n(10) Despite section 16(15) and (16) but subject to subsection (12),\\nwhere a person incurs on or after 23 February 2010 capital\\nexpenditure on renovation or refurbishment works on an existing\\nbuilding or structure, not being an industrial building or structure on\\nor at any time before 22 February 2010, that is to be an industrial\\nbuilding or structure by virtue of paragraph (f), (i) or (j) of\\nsection\\n18(1)\\nupon\\nthe\\ncompletion\\nof\\nthe\\nrenovation\\nor\\nrefurbishment works, there are to be made to that person,\\ncomputed in accordance with section 16 —\\n(a) an initial allowance and annual allowances in respect of the\\ncapital expenditure; and\\n(b) annual allowances in respect of any capital expenditure\\nincurred before 23 February 2010 on the construction or\\npurchase or the residue of that expenditure (as the case may\\nbe) of the existing building or structure.\\n(11) For the purposes of subsections (1), (2), (7) and (8), no\\nallowance may be made to a person in respect of any capital\\nexpenditure incurred on an industrial building or structure after the\\ndate of issuance of the temporary occupation permit for that building\\nor structure or the end of the basis period for the year of\\nassessment 2016, whichever is earlier.\\n(12) For the purposes of subsections (4), (6), (9) and (10), no\\nallowance may be made to a person in respect of any capital\\nexpenditure incurred after the completion of the renovation or\\nrefurbishment works referred to in those subsections or the end of the\\nbasis period for the year of assessment 2016, whichever is the earlier.\\n(13) No allowance may be made under this section in respect of any\\ncapital expenditure incurred on the construction of a building or\\nstructure for which an allowance is made under section 18C.\\nIncome Tax Act 1947\\n453\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(14) In this section —\\n“new building or structure” means a building or structure\\nwhich —\\n(a) has not previously been used by any person; and\\n(b) was purchased by a person from another person\\nwho —\\n(i) constructed that building or structure; and\\n(ii) was not granted an initial allowance in respect\\nof that building or structure under section 16;\\n“qualified person” means —\\n(a) any person who is registered as an architect under the\\nArchitects Act 1991 and who has in force a practising\\ncertificate issued under that Act; or\\n(b) any person who is registered as a professional\\nengineer\\nunder\\nthe\\nProfessional\\nEngineers\\nAct 1991 and who has in force a practising\\ncertificate issued under that Act.\\nInitial and annual allowances for certain buildings and\\nstructures\\n18C.—(1) Where any person proposes to incur or has incurred on\\nor after 23 February 2010 qualifying capital expenditure on the\\nconstruction or renovation of a building or structure on industrial land\\nfor which an application for planning permission or conservation\\npermission is made to the competent authority in accordance with the\\nPlanning Act 1998 on or after 23 February 2010, the person may\\napply to the Minister or an authorised body, on or after 1 July 2010 for\\nsuch construction or renovation to be approved for the purposes of\\nmaking an allowance under this section in respect of such expenditure\\nincurred by that person.\\n[37/2014; 41/2020]\\n[Act 41 of 2020 wef 12/04/2024]\\n(1A) Where any person proposes to incur or has incurred on or after\\n22 February 2014 qualifying capital expenditure on the construction\\nIncome Tax Act 1947\\n2020 Ed.\\n454\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nor renovation of a building or structure on port land or airport land,\\nfor which an application for planning permission or conservation\\npermission is made on or after that date to the competent authority in\\naccordance with the Planning Act 1998, the person may apply to the\\nMinister or an authorised body, on or after 22 February 2014 for such\\nconstruction or renovation to be approved for the purposes of making\\nan allowance under this section in respect of such expenditure\\nincurred by that person.\\n[37/2014; 41/2020]\\n[Act 41 of 2020 wef 12/04/2024]\\n(1B) No approval may be granted under this section after\\n31 December 2025.\\n[41/2020]\\n(2) Where the Minister or an authorised body, on an application\\nmade to the Minister or authorised body under subsection (1) or (1A)\\nthat is a pre‑25 March 2016 application, is satisfied that the\\nconstruction or renovation of the building or structure on industrial\\nland, port land or airport land (as the case may be) promotes the\\nprescribed intensified use of the land for the purposes of a prescribed\\ntrade or business, the Minister or authorised body may, by notice in\\nwriting, approve the construction or renovation for the purposes of\\nthis section, which approval is subject to such conditions as the\\nMinister or authorised body may impose, including the particular\\ntrade or business for which the building or structure is to be used upon\\ncompletion of construction or renovation.\\n[Act 41 of 2020 wef 12/04/2024]\\n(2A) The Minister or an authorised body may, on application by a\\nperson who made an application under subsection (1) or (1A)\\npursuant to which a construction or renovation of a building or\\nstructure is approved under subsection (2), vary a condition of the\\napproval as to the particular trade or business for which the building\\nor structure may be used upon completion of the construction or\\nrenovation, if the Minister or authorised body is satisfied that the\\nground mentioned in subsection (2) for approving an application\\nunder subsection (1) or (1A) continues to be met.\\n[34/2016]\\n[Act 41 of 2020 wef 12/04/2024]\\nIncome Tax Act 1947\\n455\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(2B) The Minister or an authorised body may, by written notice,\\napprove an application made under subsection (1) or (1A) that is a\\npost‑25 March 2016 application if, based on the information provided\\nby the applicant, the Minister or authorised body is satisfied that —\\n(a) on completion of the construction or renovation, at least\\n80% of the total floor area of the building or structure will\\nbe used —\\n(i) by —\\n(A) a single person who is either the applicant or a\\nperson related to the applicant; or\\n(B) 2 or more persons who satisfy the requirements\\nof relatedness; and\\n(ii) for one or more prescribed trades or businesses; and\\n(b) the construction or renovation of the building or structure\\non the land promotes the prescribed intensified use of the\\nland for the purposes of that trade or business or, if there is\\nmore than one trade or business, such of those trades or\\nbusinesses as may be designated in the regulations.\\n[34/2016]\\n[Act 41 of 2020 wef 12/04/2024]\\n(2C) An approval under subsection (2B) is subject to the condition\\nthat, upon completion of the construction or renovation, at least\\n80% of the total floor area of the building or structure will be used —\\n(a) by one or more persons specified in the notice mentioned\\nin subsection (2B) who —\\n(i) if it will be used by a single person, is either the\\napplicant\\nof\\nthe\\napplication\\nconcerned\\nunder\\nsubsection (1) or (1A), or a person related to the\\napplicant; or\\n(ii) if it will be used by 2 or more persons, satisfy the\\nrequirements of relatedness; and\\n(b) for one or more trades or businesses specified in the\\napplication.\\n[34/2016]\\nIncome Tax Act 1947\\n2020 Ed.\\n456\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(2D) An approval under subsection (2B) may be subject to such\\nother conditions as the Minister or authorised body may impose.\\n[34/2016]\\n[Act 41 of 2020 wef 12/04/2024]\\n(2E) The Minister or an authorised body may, on application by a\\nperson who made an application under subsection (1) or (1A)\\npursuant to which a construction or renovation of a building or\\nstructure is approved under subsection (2B) —\\n(a) substitute any person or trade or business mentioned in\\nsubsection (2C) with any other person or trade or business;\\nor\\n(b) add a person or trade or business to the person or trade or\\nbusiness mentioned in subsection (2C),\\nif the Minister or authorised body is satisfied that the requirements in\\nsubsection (2B)(a) and (b) continue to be met.\\n[34/2016]\\n[Act 41 of 2020 wef 12/04/2024]\\n(2F) Where a trade or business is prescribed by regulations under\\nsubsection (11A), then, unless otherwise provided in the regulations,\\nthe Minister or authorised body may only —\\n(a) approve an application under subsection (2) for a\\nrenovation or construction because it promotes the\\nprescribed intensified use of the land for that trade or\\nbusiness; or\\n(b) approve an application under subsection (2B) because at\\nleast 80% of the total floor area of the building or structure\\nwill be used, on completion of the construction or\\nrenovation,\\nby\\na\\nperson\\nor\\npersons\\nmentioned\\nin\\nsubsection (2B)(a)(i) for that trade or business or for\\ntrades or businesses which include that trade or business,\\nif —\\n(c) the application is made on or after a prescribed date; and\\nIncome Tax Act 1947\\n457\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(d) the application for planning permission or conservation\\npermission for the construction or renovation is made on or\\nafter a prescribed date.\\n[34/2016]\\n[Act 41 of 2020 wef 12/04/2024]\\n(2G) In relation to any construction or renovation that is approved\\npursuant to an application to which subsection (2F) applies, the\\nqualifying capital expenditure for which an allowance may be made\\nunder subsections (3) and (4) excludes any expenditure incurred\\nbefore\\na\\nprescribed\\ndate,\\nunless\\nthe\\nregulations\\nunder\\nsubsection (11A) provide otherwise.\\n[34/2016]\\n(2H) The prescribed date mentioned in subsection (2F)(c) or (d) or\\n(2G) is, unless otherwise specified in the regulations, the date the\\ntrade or business is prescribed by regulations under subsection (11A).\\n[34/2016]\\n(2I) To avoid doubt, a reference in subsections (2F) and (2H) to the\\nprescribing of a trade or business under subsection (11A) is, in the\\ncase of an application made under subsection (1) or (1A) before\\n25 March 2016, a reference to the prescribing of a trade or business\\nunder subsection (2) in force immediately before that date.\\n[34/2016]\\n(2J) In relation to any construction or renovation that is approved\\npursuant to a post‑25 March 2016 application (other than one with\\nonly a single specified user and a single specified trade or business),\\nthe qualifying capital expenditure for which an allowance may be\\nmade under subsections (3) and (4) excludes any expenditure\\nincurred before 25 March 2016.\\n[34/2016]\\n(3) Where in the basis period for any year of assessment the person\\nhas incurred any qualifying capital expenditure on the approved\\nconstruction or approved renovation (as the case may be), there is to\\nbe made to the person for the year of assessment in the basis period\\nfor which the expenditure was incurred an allowance to be known as\\nan “initial allowance” equal to 25% of the expenditure.\\n(4) Subject to subsections (5), (5AA) and (6), where the person is,\\nat the end of the basis period for any year of assessment, entitled to a\\nIncome Tax Act 1947\\n2020 Ed.\\n458\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nrelevant interest in the building or structure which is being used for\\nthe purposes of the specified trade or business or (as the case may be)\\ntrades or businesses, and in respect of which qualifying capital\\nexpenditure is incurred, there is to be made to the person for that year\\nof assessment an allowance to be known as an “annual allowance”\\nequal to 5% of the qualifying capital expenditure incurred by the\\nperson.\\n[34/2016]\\n(5) Where the construction or renovation is approved pursuant to a\\npre‑25 March 2016 application, no allowance is to be made under\\nsubsection (4) for any year of assessment unless —\\n(a) in a case where 2 or more temporary occupation permits\\nare to be issued for the subject of the approved construction\\nor renovation, and one or more of those temporary\\noccupation permits have been issued but not all of them,\\nat least 80% of the total floor area of the subject of each\\ntemporary occupation permit that has been issued; or\\n(b) in any other case, at least 80% of the total floor area of the\\nsubject of the approved construction or renovation,\\nis used, at the end of the basis period for that year of assessment, by\\nany one person for the purposes of the specified trade or business,\\nand, for the case in paragraph (a), that person is the same person for\\nall the subjects of the temporary occupation permits that have been\\nissued.\\n[2/2016; 34/2016]\\n(5AA) Where the construction or renovation is approved pursuant\\nto a post‑25 March 2016 application, no allowance is to be made\\nunder subsection (4) for any year of assessment unless —\\n(a) in a case where 2 or more temporary occupation permits\\nare to be issued for the subject of the approved construction\\nor renovation, but not all of those temporary occupation\\npermits have been issued, at least 80% of the total floor\\narea of the subject of each temporary occupation permit\\nthat has been issued; or\\n(b) in any other case, at least 80% of the total floor area of the\\nsubject of the approved construction or renovation,\\nIncome Tax Act 1947\\n459\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nis used, at the end of the basis period for that year of assessment —\\n(c) for the purposes of the specified trade or business or one or\\nmore of the specified trades or businesses; and\\n(d) by —\\n(i) one person who is a specified user and is either the\\napplicant of the post‑25 March 2016 application or\\nrelated to the applicant; or\\n(ii) 2 or more persons who are specified users and satisfy\\nthe requirements of relatedness.\\n[34/2016]\\n(5A) In subsections (5) and (5AA), the subject of an approved\\nconstruction or renovation, or of a temporary occupation permit, is\\nthe building or structure, all the buildings or structures, or the part or\\nall the parts of a building or structure (as the case may be) that forms\\nor form the subject matter of the approved construction or renovation,\\nor the temporary occupation permit.\\n[2/2016; 34/2016]\\n(6) Any annual allowance made to any person under subsection (4)\\nin respect of an approved construction or approved renovation for any\\nyear of assessment must not exceed the amount of qualifying capital\\nexpenditure remaining unallowed as at the beginning of the basis\\nperiod for that year of assessment.\\n(7) For the purposes of this section, qualifying capital expenditure\\nincurred by any person on the approved construction or approved\\nrenovation (as the case may be) prior to the commencement of the\\nperson’s trade or business is deemed to have been incurred by that\\nperson on the first day that person carries on that trade or business.\\n(8) Where the person fails to comply with the condition in\\nsubsection (2C), or any condition imposed under subsection (2) or\\n(2D) in respect of the approved construction or approved renovation,\\nthe Minister or an authorised body, may, by written notice, revoke the\\napproval granted under that subsection.\\n[34/2016]\\n[Act 41 of 2020 wef 12/04/2024]\\nIncome Tax Act 1947\\n2020 Ed.\\n460\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(9) Despite section 74(1) and (4), where an approval has been\\nrevoked under subsection (8), the Comptroller may, at any time, for\\nthe purpose of making good any loss of tax attributable to such\\nrevocation of approval, assess the person who has utilised the\\nallowance made under this section at such amount or additional\\namount as according to the Comptroller’s judgment ought to have\\nbeen charged; and this subsection also applies, with the necessary\\nmodifications, to any assessment which results in any unabsorbed\\nallowances or losses.\\n(10) Where, in the basis period for any year of assessment, the\\nspecified trade or business for which purpose the building or structure\\nis used, produces income that is exempt from tax as well as income\\nchargeable with tax, the allowance for that year of assessment must\\nbe made against each income for that year of assessment in such\\nproportion as appears reasonable to the Comptroller in the\\ncircumstances.\\n(11) A person who has incurred qualifying capital expenditure on\\nthe approved construction or approved renovation must maintain and\\ndeliver to the Minister or an authorised body or the Comptroller, in\\nsuch form and manner and within such reasonable time as the\\nMinister, the authorised body or the Comptroller may determine, the\\nrelevant\\nrecords\\nof\\nthe\\napproved\\nconstruction\\nor\\napproved\\nrenovation, and such other particulars as may be required for the\\npurposes of this section.\\n[Act 41 of 2020 wef 12/04/2024]\\n(11A) The Minister may make regulations prescribing matters\\nrequired or permitted by this section to be prescribed, or necessary or\\nconvenient to be prescribed for carrying out or giving effect to this\\nsection.\\n[34/2016]\\n(12) In this section —\\n“airport land” means any land zoned for use as an airport under\\nthe Master Plan;\\n“approved construction or approved renovation” means the\\nconstruction or renovation (as the case may be) of a building\\nIncome Tax Act 1947\\n461\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nor structure on industrial land, port land or airport land (as the\\ncase may be) approved under subsection (2) or (2B);\\n“industrial land” means any land zoned for the purpose of\\n“Business 1” or “Business 2” (other than “Business 1 White”\\nand “Business 2 White”) under the Master Plan, and includes\\nsuch other land as may be approved by the Minister;\\n“Master Plan” means the Master Plan as defined in the Planning\\nAct 1998 which is effective on the date of the application for\\nplanning permission or conservation permission referred to in\\nsubsection (1) or (1A), as the case may be;\\n“port land” means any land zoned for use as a port under the\\nMaster Plan;\\n“post‑25 March 2016 application” means an application under\\nsubsection (1) or (1A) —\\n(a) that is made on or after 25 March 2016; and\\n(b) that relates to the construction or renovation of a\\nbuilding or structure for which an application for\\nplanning permission or conservation permission is\\nmade on or after 25 March 2016;\\n“pre‑25 March 2016 application” means an application under\\nsubsection (1) or (1A) that is not a post‑25 March 2016\\napplication;\\n“qualifying capital expenditure” means the following types of\\ncapital expenditure:\\n(a) costs of feasibility study on the layout of the building\\nor structure;\\n(b) design fees of the building or structure;\\n(c) costs of preparing plans for obtaining approval for\\nthe building or structure;\\n(d) piling, construction and renovation costs;\\n(e) demolition costs of an existing building or structure\\nfor which an allowance was not made under\\nsection 16;\\nIncome Tax Act 1947\\n2020 Ed.\\n462\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(f) legal and other professional fees in relation to the\\napproved construction or approved renovation; and\\n(g) stamp duties payable in respect of title of the building\\nor structure;\\n“relevant interest”, in relation to any qualifying capital\\nexpenditure incurred on an approved construction or\\napproved renovation of a building or structure, means the\\ninterest in that building or structure to which the person who\\nincurred the expenditure was entitled when the person\\nincurred it;\\n“specified trade or business” means —\\n(a) the trade or business specified in a condition of\\napproval under subsection (2) as one for which the\\nbuilding or structure may be used upon completion of\\nthe approved construction or renovation, including\\none substituted for that trade or business pursuant to a\\nvariation under subsection (2A); or\\n(b) the trade or business or any of the trades or businesses\\nmentioned in subsection (2C)(b), including one\\nsubstituted for that trade or business or added under\\nsubsection (2E),\\nas the case may be;\\n“specified user” means the person or any of the persons\\nmentioned in subsection (2C), including one substituted for\\nthat person or added under subsection (2E);\\n“temporary occupation permit” means a temporary occupation\\npermit granted under section 12(3) of the Building Control\\nAct 1989.\\n[37/2014; 2/2016; 34/2016]\\n(13) In this section, capital expenditure for the renovation or\\nconstruction of a building or structure or of a part of a building or\\nstructure, that is incurred after the date a temporary occupation permit\\nis issued for the building, structure or part of the building or structure\\n(as the case may be) is not qualifying capital expenditure.\\n[2/2016]\\nIncome Tax Act 1947\\n463\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(14) In this section —\\n(a) a reference to a temporary occupation permit issued or to\\nbe issued for one or more buildings or structures or one or\\nmore parts of a building or structure (called in this\\nparagraph the subject) is, if no temporary occupation\\npermit is issued or to be issued for the subject, a reference\\nto the certificate of statutory completion issued or to be\\nissued under section 12(1) of the Building Control\\nAct 1989 for —\\n(i) the subject; or\\n(ii) a building or structure that includes the subject; and\\n(b) a reference to the date of issue of a temporary occupation\\npermit is to be construed accordingly.\\n[2/2016]\\n(15) In this section —\\n(a) 2 or more persons satisfy the requirements of relatedness\\nif —\\n(i) each of them is related to one or more of the others;\\nand\\n(ii) either —\\n(A) one of them is the applicant of the application\\nunder subsection (1) or (1A) and the other or\\nothers is or are related to the applicant; or\\n(B) all of them are related to the applicant; and\\n(b) a person is related to another person if —\\n(i) one of those persons beneficially holds, directly or\\nindirectly, at least 75% of the total number of issued\\nordinary shares of the other person (being a\\ncompany);\\n(ii) one of those persons is entitled, directly or indirectly,\\nto at least 75% of the income of the other person\\n(being a partnership);\\nIncome Tax Act 1947\\n2020 Ed.\\n464\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(iii) a\\nthird\\nperson\\nbeneficially\\nholds,\\ndirectly\\nor\\nindirectly, at least 75% of the total number of\\nissued ordinary shares of each of those persons\\n(being companies);\\n(iv) a third person is entitled, directly or indirectly, to at\\nleast 75% of the income of each of those persons\\n(being partnerships); or\\n(v) a\\nthird\\nperson\\nbeneficially\\nholds,\\ndirectly\\nor\\nindirectly, at least 75% of the total number of\\nissued ordinary shares of one of those persons\\n(being a company), and is entitled, directly or\\nindirectly, to at least 75% of the income of the\\nother person (being a partnership).\\n[34/2016]\\n(16) A reference to a person in subsections (2B)(a)(i), (2C)(a),\\n(2E)(a) and (b), (5AA)(d) and (15), and in the definition of “specified\\nuser” in subsection (12), includes a partnership.\\n[34/2016]\\nInitial and annual allowances for machinery or plant\\n19.—(1) Where a person carrying on a trade, profession or business\\nincurs capital expenditure on the provision of machinery or plant for\\nthe purposes of that trade, profession or business, there is to be made\\nto the person, on due claim for the year of assessment in the basis\\nperiod for which the expenditure is incurred an allowance, to be\\nknown as an “initial allowance”, equal to one‑fifth of that expenditure\\nor such other allowance as may be prescribed either generally or for\\nany person or class of persons in respect of any machinery or plant or\\nclass of machinery or plant.\\n(1A) For the purposes of subsection (1), in the case of any trade,\\nprofession or business —\\n(a) where 2 basis periods overlap, the period common to both\\nis deemed to fall in the first basis period only;\\n(b) where there is an interval between the end of the basis\\nperiod for a year of assessment and the commencement of\\na basis period for the next succeeding year of assessment,\\nIncome Tax Act 1947\\n465\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthen, unless the second‑mentioned year of assessment is\\nthe year of the permanent discontinuance of the trade, the\\ninterval is deemed to be part of the second basis period; and\\n(c) where there is an interval between the end of the basis\\nperiod for the year of assessment preceding that in which\\nthe\\ntrade\\nis\\npermanently\\ndiscontinued\\nand\\nthe\\ncommencement of the basis period for the year in which\\nit is permanently discontinued, the interval is deemed to\\nform part of the first basis period.\\n(1B) Any capital expenditure incurred for the purposes of a trade by\\na person about to carry on that trade is treated for the purposes of\\nsubsection (1) as if it had been incurred by that person on the first day\\non which that person does carry on that trade.\\n(2) Where at the end of the basis period for any year of assessment,\\na person has in use machinery or plant for the purpose of the person’s\\ntrade, profession or business, there is to be made to the person, on due\\nclaim, in respect of that year of assessment an allowance for\\ndepreciation by wear and tear of those assets (to be known as an\\nannual allowance) which is to be calculated in accordance with the\\nfollowing provisions:\\n(a) subject to subsection (2AA), the annual allowance in\\nrespect of any machinery or plant acquired by a person\\neither in the basis period for a year of assessment before the\\nyear of assessment 2023 or under a hire‑purchase\\nagreement signed in the basis period for a year of\\nassessment before the year of assessment 2023 is —\\n(i) in the case of an asset, other than an asset acquired\\nunder a hire‑purchase agreement — the amount\\nascertained by dividing the excess of the original cost\\nof the asset over any initial allowance granted under\\nsubsection (1) by the number of years of working life\\nof the asset as specified in the Sixth Schedule unless\\notherwise provided under paragraph (b) or (ba);\\n(ii) in the case of an asset acquired under a hire‑purchase\\nagreement — the amount ascertained by dividing the\\nexcess of the original cost of the asset over the total\\nIncome Tax Act 1947\\n2020 Ed.\\n466\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\namount of initial allowance allowable in respect of\\nthe asset under subsection (1) by the number of years\\nof working life of the asset as specified in the\\nSixth Schedule unless otherwise provided under\\nparagraph (b) or (ba);\\n(b) for the purposes of paragraph (a), the number of years of\\nworking life of any aircraft acquired between 1 March\\n1995 and 29 February 2012 (both dates inclusive) is, if it\\nhad been extended under section 19(2)(b) in force\\nimmediately before 1 March 2012, the number of years\\nof its working life as specified in the Sixth Schedule\\ntogether with the extension;\\n(ba) for the purposes of paragraph (a), the total number of years\\nof working life of an aircraft acquired on or after 1 March\\n2012 but before the basis period for the year of\\nassessment\\n2023\\nby\\nan\\napproved\\naircraft\\nleasing\\ncompany mentioned in section 43N is, if the company\\nhas made an election under subsection (2A) —\\n(i) the sum of —\\n(A) the number of years of working life of an\\naircraft as specified in the Sixth Schedule; and\\n(B) the period of extension specified by the\\ncompany under subsection (2A); or\\n(ii) 20 years,\\n(ba) whichever is less;\\n(bb) the annual allowance in respect of any machinery or plant\\nacquired by a person in the basis period for the year of\\nassessment 2023 or a subsequent year of assessment or\\nunder a hire‑purchase agreement signed in the basis period\\nfor the year of assessment 2023 or a subsequent year of\\nassessment is —\\n(i) in the case of an asset that is not acquired under a\\nhire‑purchase agreement — the amount ascertained\\nby dividing the excess of the original cost of the asset\\nIncome Tax Act 1947\\n467\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nover\\nany\\ninitial\\nallowance\\ngranted\\nunder\\nsubsection (1) by any of the following number of\\nyears as elected by the person:\\n(A) where the number of years of working life of\\nthe asset as specified in the Sixth Schedule is\\nless than 16 years and unless otherwise\\nprovided\\nunder\\nparagraph\\n(bd)\\n—\\n6\\nor\\n12 years;\\n(B) where the number of years of working life of\\nthe asset as specified in the Sixth Schedule is\\n16 years — 6, 12 or 16 years; or\\n(ii) in the case of an asset acquired under a hire‑purchase\\nagreement — the amount ascertained by dividing the\\nexcess of the original cost of the asset over the total\\namount of the initial amount allowable in respect of\\nthe asset under subsection (1) by any of the following\\nnumber of years as elected by the person:\\n(A) where the number of years of working life of\\nthe asset as specified in the Sixth Schedule is\\nless than 16 years and unless otherwise\\nprovided\\nunder\\nparagraph\\n(bd)\\n—\\n6\\nor\\n12 years;\\n(B) where the number of years of working life of\\nthe asset as specified in the Sixth Schedule is\\n16 years — 6, 12 or 16 years;\\n(bc) the election under paragraph (bb) must be made to the\\nComptroller at the time of lodgment of the person’s return\\nof income for the year of assessment relating to the basis\\nperiod in which the asset was acquired or the hire‑purchase\\nagreement was signed or within such further time as the\\nComptroller may allow, and such election is irrevocable;\\n(bd) for the purposes of paragraph (bb), the total number of\\nyears of working life of an aircraft acquired in the basis\\nperiod for the year of assessment 2023 or a subsequent year\\nof assessment by an approved aircraft leasing company\\nIncome Tax Act 1947\\n2020 Ed.\\n468\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nmentioned in section 43N is, if the company has made an\\nelection under subsection (2A) —\\n(i) the sum of —\\n(A) either 6 or 12 years as elected by the company\\nunder paragraph (bb); and\\n(B) the period of extension specified by the\\ncompany under subsection (2A); or\\n(ii) 20 years,\\n(bd) whichever is less;\\n(c) the annual allowance in respect of any asset for any year of\\nassessment must not exceed the amount of the capital\\nexpenditure of the asset still unallowed under this section\\nas at the beginning of the basis period for that year of\\nassessment;\\n(d) for the purposes of the Sixth Schedule, where any question\\narises as to the classification of an asset under any item of\\nthat Schedule, the asset is treated as falling under such item\\nas the Comptroller considers proper.\\n[41/2020]\\n(2AA) Where —\\n(a) a machinery or plant is acquired by a person either in the\\nbasis period for a year of assessment before the year of\\nassessment 2023 or under a hire‑purchase agreement\\nsigned in the basis period for a year of assessment\\nbefore the year of assessment 2023; and\\n(b) no due claim for an allowance in respect of that asset has\\nbeen made under subsection (1) or (2)(a) for any year of\\nassessment before the year of assessment 2023,\\nthen, if the person makes a claim for an annual allowance in respect of\\nthat asset for the year of assessment 2023 or a subsequent year of\\nassessment, the annual allowance in respect of that asset is\\nascertained by dividing the original cost of that asset by the\\nIncome Tax Act 1947\\n469\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nnumber of years of working life of that asset, as elected by the person\\nunder subsection (2AB).\\n[41/2020]\\n(2AB) For the purposes of subsection (2AA), the person may elect\\nfor the number of years of working life of the asset to be —\\n(a) if the number of years of its working life as specified in the\\nSixth Schedule is less than 16 years — 6 or 12 years; or\\n(b) if the number of years of its working life as specified in the\\nSixth Schedule is 16 years — 6, 12 or 16 years.\\n[41/2020]\\n(2AC) An election under subsection (2AB) must be made by the\\nperson to the Comptroller at the time of lodgment of the person’s\\nreturn of income for the year of assessment 2023 or within such\\nfurther time as the Comptroller may allow, and such election is\\nirrevocable.\\n[41/2020]\\n(2A) An approved aircraft leasing company which acquired any\\naircraft on or after 1 March 2012 may, at the time of lodgment of its\\nreturn of income for the year of assessment relating to the basis period\\nin which the aircraft was acquired, make an irrevocable election to the\\nComptroller for the number of years of the working life of the aircraft\\nas specified in the Sixth Schedule or as elected by the person under\\nsubsection (2)(bb), to be extended by a period specified by the\\ncompany.\\n[41/2020]\\n(2B) [Deleted by Act 41 of 2020]\\n(3) Despite subsection (1) or (2) or section 19A(1), (1B) or (1E), in\\nrespect of a motor car to which this subsection applies —\\n(a) the initial allowance to be made under subsection (1) is to\\nbe calculated on an amount equal to the capital expenditure\\nincurred in respect of that motor car or $35,000, whichever\\nis less;\\n(b) the annual allowance to be made under subsection (2) or\\nsection 19A(1), (1B) or (1E) is to be calculated on the basis\\nthat the original cost of that motor car is the capital\\nexpenditure incurred or $35,000, whichever is less; and\\nIncome Tax Act 1947\\n2020 Ed.\\n470\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) the aggregate of the initial and annual allowances to be\\nmade under this subsection for all relevant years of\\nassessment must not exceed $35,000.\\n[41/2020]\\n(4) Subsection (3) applies to a motor car which is constructed or\\nadapted for the carriage of not more than 7 passengers (exclusive of\\nthe driver) and the weight of which unladen does not exceed\\n3,000 kilograms and which —\\n(a) was registered before 1 April 1998 as a business service\\npassenger vehicle for the purposes of the Road Traffic\\nAct 1961 but excludes such a motor car which is —\\n(i) used principally for instructional purposes; and\\n(ii) acquired by a person who carries on the business of\\nproviding driving instruction and who holds a\\ndriving\\nschool\\nlicence\\nor\\ndriving\\ninstructor’s\\nlicence issued under that Act; or\\n(b) was acquired in the basis period for the year of\\nassessment 2013 or any preceding year of assessment,\\nand is registered outside Singapore and used exclusively\\noutside Singapore.\\n(5) No allowance under this section or section 19A may be made in\\nrespect of a motor car which is constructed or adapted for the carriage\\nof not more than 7 passengers (exclusive of the driver) and the weight\\nof which unladen does not exceed 3,000 kilograms except —\\n(a) a taxi, and then only to the following:\\n(i) a person that is not an individual and that holds a\\nstreet‑hail service licence granted (on renewal or\\notherwise)\\nor\\ndeemed\\ngranted\\nunder\\nthe\\nPoint‑to‑Point\\nPassenger\\nTransport\\nIndustry\\nAct 2019 (called in this paragraph a street‑hail\\nservice licence);\\n(ii) an individual who is a partner of the partnership that\\nacquired the taxi and holds a street‑hail service\\nlicence;\\nIncome Tax Act 1947\\n471\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(iii) an individual who —\\n(A) acquired the taxi as a replacement or a\\nsubsequent replacement of a taxi acquired by\\nhim or her any time before 1 January 1975; and\\n(B) holds a vocational licence granted under\\nsection 110 of the Road Traffic Act 1961\\nauthorising him or her to drive a taxi;\\n(b) a motor car registered outside Singapore and used\\nexclusively outside Singapore;\\n(c) a private hire car acquired by a person who carries on the\\nbusiness of hiring out cars and which is used by the person\\nprincipally for hiring;\\n(d) a motor car which was registered before 1 April 1998 as a\\nbusiness service passenger vehicle for the purposes of the\\nRoad Traffic Act 1961;\\n(e) a motor car registered on or after 1 April 1998 which is\\nused principally for instructional purposes and acquired by\\na person who carries on the business of providing driving\\ninstruction and who holds a driving school licence or\\ndriving instructor’s licence issued under the Road Traffic\\nAct 1961; and\\n(f) a\\nchauffeured\\nprivate\\nhire\\ncar\\nas\\ndefined\\nin\\nsection 14ZA(8) —\\n(i) that is acquired in the basis period for the year of\\nassessment 2021 or a subsequent year of assessment\\nby a person that carries on the business of providing\\nchauffeur\\nservices,\\nand\\nused\\nby\\nthe\\nperson\\nprincipally for such business; or\\n(ii) that was initially acquired by a person carrying on\\nthe business of hiring out cars and used by the person\\nprincipally for such business, and is then used in the\\nbasis period for the year of assessment 2021 or a\\nsubsequent year of assessment by the same person\\nIncome Tax Act 1947\\n2020 Ed.\\n472\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nprincipally for the business of providing chauffeur\\nservices carried on by the person.\\n[45/2018; 20/2019; 41/2020]\\n(5A) Unless otherwise provided in this Act or the Economic\\nExpansion Incentives (Relief from Income Tax) Act 1967, where, in\\nthe basis period for any year of assessment, the trade, profession or\\nbusiness, for which purpose the machinery or plant is provided,\\nproduces income that is exempt from tax as well as income\\nchargeable with tax, the allowances for that year of assessment\\nmust be made against each income for that year of assessment in such\\nproportion as appears reasonable to the Comptroller in the\\ncircumstances.\\n(5B) For the purposes of subsection (2), where, at the end of the\\nbasis period for the year of assessment 2009, a person has in use any\\nof the following motor vehicles within the meaning of the Road\\nTraffic Act 1961:\\n(a) a motor car;\\n(b) a motor cycle;\\n(c) a goods vehicle the maximum weight of which laden does\\nnot exceed 3,000 kilograms,\\nin respect of which allowances have been made under this section,\\nthere is to be made to the person, on due claim for that or any\\nsubsequent year of assessment and in lieu of any further annual\\nallowance under this section, an annual allowance of 331/3% in\\nrespect of the capital expenditure remaining unallowed under this\\nsection in respect of the motor vehicle as at the beginning of the basis\\nperiod for the year of assessment 2009.\\n(6) In subsection (1), “prescribed” means prescribed by an order\\nmade by the Minister.\\n(7) Every order made under this section must be presented to\\nParliament as soon as possible after publication in the Gazette.\\n(8) Subject to subsection (9), this section applies, with the\\nnecessary modifications, to a person carrying on any trade or\\nbusiness who incurs during the basis period for any year of\\nassessment between the year of assessment 2009 and the year of\\nIncome Tax Act 1947\\n473\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nassessment 2028 (both years inclusive) capital expenditure on the\\nprovision of machinery or plant for any research and development\\nundertaken by the person directly in Singapore or by a research and\\ndevelopment organisation on the person’s behalf in Singapore, even\\nthough the machinery or plant is not for the purposes of that trade or\\nbusiness.\\n[37/2014]\\n[Act 30 of 2023 wef 30/10/2023]\\n(9) Section 14C(4) and (5) applies in relation to the allowance for\\nthe capital expenditure referred to in subsection (8) as it applies in\\nrelation to the deduction of the expenditure and payments referred to\\nin section 14C(1)(aa), (c) and (f), subject to the following\\nmodifications:\\n(a) a reference to the amount of the expenditure or payments\\n(after deducting any amount in respect of which an election\\nfor a cash payout has been made under section 37G) in\\nsection 14C(4) is a reference to the remaining amount of\\nthe allowance after deducting the amount of the allowance\\nthat corresponds to the capital expenditure in respect of\\nwhich an election for a cash payout has been made under\\nsection 37G;\\n(b) a reference to the specified amount of the expenditure or\\npayments is a reference to an amount computed in\\naccordance with the formula\\nA \\u0003 B\\nC ;\\nwhere A is the remaining amount of the allowance after deducting\\nthe amount of the allowance that corresponds to the\\ncapital expenditure in respect of which an election for a\\ncash payout has been made under section 37G;\\nB is the rate of tax specified in section 43(1)(a); and\\nC is —\\n(i) in a case where the concessionary income derived by\\nthe person from the trade or business carried on by\\nIncome Tax Act 1947\\n2020 Ed.\\n474\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthe person is subject to tax at a single concessionary\\nrate of tax, that rate; or\\n(ii) in a case where the concessionary income derived by\\nthe person from the trade or business carried on by\\nthe\\nperson\\nis\\nsubject\\nto\\ntax\\nat\\n2\\nor\\nmore\\nconcessionary rates of tax, the higher or highest of\\nthose rates; and\\n(c) a reference to “unabsorbed losses” is a reference to\\n“unabsorbed allowances”.\\n(10) This section applies to a person carrying on any trade or\\nbusiness who appropriates any trading stock of that trade or business\\nfor use as machinery or plant for the purpose of any of the person’s\\ntrades, professions or businesses in circumstances that give rise to a\\nreasonable inference that the appropriation is permanent, subject to\\nthe following modifications:\\n(a) a reference to the capital expenditure incurred on the\\nprovision of machinery or plant is to the open market value\\nof the trading stock as at the date of the appropriation;\\n(b) the capital expenditure is treated as having been incurred\\non the date of the appropriation of the trading stock.\\n[27/2021]\\n(11) In subsection (10), “open market value” and “trading stock”\\nhave the meanings given by section 10J(9).\\n[27/2021]\\nAllowances of 3 years or 2 years write‑off for machinery and\\nplant, and 100% write‑off for computer, prescribed\\nautomation equipment and robot, etc.\\n19A.—(1) Despite section 19, where a person carrying on a trade,\\nprofession or business incurs capital expenditure on the provision of\\nmachinery or plant for the purposes of that trade, profession or\\nbusiness, there is to be made to the person, on due claim for any year\\nof assessment and in lieu of the allowances provided by section 19, an\\nannual allowance of 331/3% in respect of the capital expenditure\\nincurred.\\nIncome Tax Act 1947\\n475\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(1A) Any annual allowance under this section in respect of any\\nasset for any year of assessment must not exceed the amount of the\\ncapital expenditure of the asset remaining unallowed as at the\\nbeginning of the basis period for that year of assessment.\\n(1B) Despite subsection (1), where a person carrying on a trade,\\nprofession or business incurs, during the basis period relating to the\\nyear of assessment 2010 or 2011, capital expenditure on the provision\\nof machinery or plant for the purposes of that trade, profession or\\nbusiness, the person may, in lieu of the allowances provided by\\nsubsection (1) or section 19, elect to be entitled for any 2 years of\\nassessment to the following:\\n(a) for the year of assessment relating to the basis period in\\nwhich the capital expenditure was incurred or any\\nsubsequent year of assessment (called in this subsection\\nthe first year), an allowance of 75% in respect of the capital\\nexpenditure incurred;\\n(b) for any year of assessment subsequent to the first year, an\\nallowance of 25% in respect of the capital expenditure\\nincurred.\\n(1C) Where a person carrying on a trade, profession or business\\nenters into a hire‑purchase agreement during the basis period relating\\nto the year of assessment 2010 or 2011 in respect of machinery or\\nplant provided for the purposes of that trade, profession or business,\\nsubsection (1B) applies to each instalment paid by that person under\\nthat hire‑purchase agreement, whether the instalment is paid during\\nor after the basis period relating to the year of assessment 2010 or\\n2011.\\n(1D) An election made by a person under subsection (1B) is\\nirrevocable.\\n(1E) Despite subsection (1), where a person carrying on a trade,\\nprofession or business incurs, during the basis period for the year of\\nassessment 2021, 2022 or 2024, capital expenditure on the provision\\nof machinery or plant for the purposes of that trade, profession or\\nbusiness, the person may, in lieu of the allowances under\\nsubsection (1) or section 19, elect to be entitled to the following:\\nIncome Tax Act 1947\\n2020 Ed.\\n476\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(a) for the year of assessment relating to the basis period in\\nwhich the capital expenditure is incurred — an annual\\nallowance of 75% in respect of the capital expenditure\\nincurred;\\n(b) for the year of assessment immediately following the year\\nof assessment mentioned in paragraph (a) — an annual\\nallowance of 25% in respect of the capital expenditure\\nincurred.\\n[41/2020; 27/2021]\\n[Act 30 of 2023 wef 30/10/2023]\\n(1F) The election in subsection (1E) must be made at the time of\\nlodgment of the person’s return of income for the year of assessment\\nrelating to the basis period in which the capital expenditure is\\nincurred, and such election is irrevocable.\\n[41/2020; 27/2021]\\n(1G) Where a person carrying on a trade, profession or business\\nenters into a hire‑purchase agreement during the basis period for the\\nyear of assessment 2021, 2022 or 2024 in respect of machinery or\\nplant provided for the purposes of that trade, profession or business,\\nsubsection (1E) applies, with the necessary modifications, to each\\ninstalment paid by the person under the hire‑purchase agreement in a\\nbasis period for a year of assessment (whether the firstmentioned year\\nof assessment or a subsequent year of assessment), as it applies to\\ncapital expenditure incurred in the basis period for the year of\\nassessment 2021, 2022 or 2024, as the case may be.\\n[27/2021]\\n[Act 30 of 2023 wef 30/10/2023]\\n(2) Despite section 19, where a person proves to the Comptroller’s\\nsatisfaction that the person has installed a computer or other\\nprescribed automation equipment for the purposes of a trade,\\nbusiness or profession carried on by the person, the person is, in\\nlieu of the allowances provided by subsection (1), (1B) or (1E) or\\nsection 19, entitled, if the person so elects, to an allowance of 100% in\\nrespect of the capital expenditure incurred on the provision of that\\ncomputer or automation equipment.\\n[41/2020]\\nIncome Tax Act 1947\\n477\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(2A) Where a person proves to the Comptroller’s satisfaction that\\nthe person has incurred capital expenditure during the basis period for\\nthe year of assessment 2011 or the year of assessment 2012 on the\\nprovision of one or more PIC automation equipment for the purposes\\nof a trade, profession or business carried on by the person, there is\\nallowed on due claim, in respect of all of the person’s trades,\\nprofessions and businesses, and in addition to the allowance under\\nsection 19 or subsection (1), (1B) or (2) (as the case may be), an\\nallowance computed in accordance with the formula\\nA \\u0003 300%;\\nwhere A is —\\n(a) for the year of assessment 2011, the lower of the following:\\n(i) such capital expenditure incurred during the basis\\nperiod for that year of assessment;\\n(ii) $800,000; and\\n(b) for the year of assessment 2012, the lower of the following:\\n(i) such capital expenditure incurred during the basis\\nperiod for that year of assessment;\\n(ii) the balance after deducting from $800,000 the lower\\nof the amounts specified in paragraph (a)(i) and (ii).\\n(2B) Subject to section 37J, where a person proves to the\\nComptroller’s satisfaction that the person has incurred capital\\nexpenditure\\nduring\\nthe\\nbasis\\nperiod\\nfor\\nthe\\nyear\\nof\\nassessment 2013, the year of assessment 2014 or the year of\\nassessment 2015 on the provision of one or more PIC automation\\nequipment for the purposes of a trade, profession or business carried\\non by the person, there is allowed on due claim, in respect of all of the\\nperson’s trades, professions and businesses and in addition to the\\nallowance under section 19 or subsection (1), (1B) or (2) (as the case\\nmay be), an allowance computed in accordance with the formula\\nA \\u0003 300%;\\nIncome Tax Act 1947\\n2020 Ed.\\n478\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nwhere A is —\\n(a) for the year of assessment 2013, the lower of the following:\\n(i) such capital expenditure incurred during the basis\\nperiod for that year of assessment;\\n(ii) $1,200,000;\\n(b) for the year of assessment 2014, the lower of the following:\\n(i) such capital expenditure incurred during the basis\\nperiod for that year of assessment;\\n(ii) the balance after deducting from $1,200,000 the\\nlower of the amounts specified in paragraph (a)(i)\\nand (ii); and\\n(c) for the year of assessment 2015, the lower of the following:\\n(i) such capital expenditure incurred during the basis\\nperiod for that year of assessment;\\n(ii) the balance after deducting from $1,200,000 the\\nlower of the amounts specified in paragraph (a)(i)\\nand (ii), and the lower of the amounts specified in\\nparagraph (b)(i) and (ii).\\n[37/2014]\\n(2BAA) Subject to section 37J, where a person proves to the\\nComptroller’s satisfaction that the person has incurred capital\\nexpenditure\\nduring\\nthe\\nbasis\\nperiod\\nfor\\nthe\\nyear\\nof\\nassessment 2016, 2017 or 2018 on the provision of one or more\\nPIC automation equipment for the purposes of a trade, profession or\\nbusiness carried on by the person, there is allowed on due claim, in\\nrespect of all of the person’s trades, professions and businesses, and\\nin addition to the allowance under section 19 or subsection (1), (1B)\\nor (2) (as the case may be), an allowance computed in accordance\\nwith the formula\\nA \\u0003 300%;\\nIncome Tax Act 1947\\n479\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nwhere A is —\\n(a) for the year of assessment 2016, the lower of the following:\\n(i) such capital expenditure incurred during the basis\\nperiod for that year of assessment;\\n(ii) $1,200,000;\\n(b) for the year of assessment 2017, the lower of the following:\\n(i) such capital expenditure incurred during the basis\\nperiod for that year of assessment;\\n(ii) the balance after deducting from $1,200,000 the\\nlower of the amounts specified in paragraph (a)(i)\\nand (ii); and\\n(c) for the year of assessment 2018, the lower of the following:\\n(i) such capital expenditure incurred during the basis\\nperiod for that year of assessment;\\n(ii) the balance after deducting from $1,200,000 the\\nlower of the amounts specified in paragraph (a)(i)\\nand (ii), and the lower of the amounts specified in\\nparagraph (b)(i) and (ii).\\n[37/2014]\\n(2BA) In subsection (2A), the amount under paragraph (a)(ii) is\\nsubstituted with “$400,000” if the person does not carry on any trade,\\nprofession or business during the basis period for the year of\\nassessment 2012, and the balance under paragraph (b)(ii) is\\nsubstituted with “$400,000” if the person does not carry on any\\ntrade, profession or business during the basis period for the year of\\nassessment 2011.\\n(2BB) In subsection (2B) —\\n(a) if the person does not carry on any trade, profession or\\nbusiness during the basis period for any one year of\\nassessment between the year of assessment 2013 and the\\nyear of assessment 2015 (both years inclusive), the\\nreferences to “$1,200,000” in the paragraphs of that\\nsubsection applicable to the other 2 years of assessment\\nare each substituted with “$800,000”;\\nIncome Tax Act 1947\\n2020 Ed.\\n480\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) if the person does not carry on any trade, profession or\\nbusiness during the basis periods for any 2 years of\\nassessment between the year of assessment 2013 and the\\nyear of assessment 2015 (both years inclusive), the\\nreference to “$1,200,000” in the paragraph of that\\nsubsection\\napplicable\\nto\\nthe\\nremaining\\nyear\\nof\\nassessment is substituted with “$400,000”; and\\n(c) to avoid doubt, no deduction may be made from the\\nsubstituted amount in subsection (2B)(b)(ii) or (c)(ii) of the\\nlower of the amounts specified in subsection (2B)(a)(i) and\\n(ii) if the person does not carry on any trade, profession or\\nbusiness\\nduring\\nthe\\nbasis\\nperiod\\nfor\\nthe\\nyear\\nof\\nassessment 2013, and no deduction may be made from\\nthe substituted amount in subsection (2B)(c)(ii) of the\\nlower of the amounts specified in subsection (2B)(b)(i) and\\n(ii) if the person does not carry on any trade, profession or\\nbusiness\\nduring\\nthe\\nbasis\\nperiod\\nfor\\nthe\\nyear\\nof\\nassessment 2014.\\n(2BC) In subsection (2BAA) —\\n(a) if the person does not carry on any trade, profession or\\nbusiness during the basis period for any one year of\\nassessment between the years of assessment 2016 and\\n2018 (both years inclusive), the references to “$1,200,000”\\nin the paragraphs of that subsection applicable to the other\\n2\\nyears\\nof\\nassessment\\nare\\neach\\nsubstituted\\nwith\\n“$800,000”;\\n(b) if the person does not carry on any trade, profession or\\nbusiness during the basis periods for any 2 years of\\nassessment between the years of assessment 2016 and\\n2018 (both years inclusive), the reference to “$1,200,000”\\nin the paragraph of that subsection applicable to the\\nremaining\\nyear\\nof\\nassessment\\nis\\nsubstituted\\nwith\\n“$400,000”; and\\n(c) to avoid doubt, no deduction may be made from the\\nsubstituted amount in subsection (2BAA)(b)(ii) or (c)(ii)\\nof\\nthe\\nlower\\nof\\nthe\\namounts\\nspecified\\nin\\nIncome Tax Act 1947\\n481\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nsubsection (2BAA)(a)(i) and (ii) if the person does not\\ncarry on any trade, profession or business during the basis\\nperiod for the year of assessment 2016, and no deduction\\nmay\\nbe\\nmade\\nfrom\\nthe\\nsubstituted\\namount\\nin\\nsubsection (2BAA)(c)(ii) of the lower of the amounts\\nspecified in subsection (2BAA)(b)(i) and (ii) if the person\\ndoes not carry on any trade, profession or business during\\nthe basis period for the year of assessment 2017.\\n[37/2014]\\n(2C) Where a person proves to the Comptroller’s satisfaction that\\nthe person has during or after the basis period for the year of\\nassessment 2011 incurred capital expenditure by way of making one\\nor more instalment payments under a hire‑purchase agreement or\\nagreements to acquire one or more PIC automation equipment for the\\npurposes of a trade, business or profession carried on by the person,\\nthat is or are signed during the basis period for any year of assessment\\nbetween the year of assessment 2011 and the year of assessment 2018\\n(both years inclusive), and the person makes a claim for an allowance\\nunder subsection (2A), (2B) or (2BAA), those subsections apply with\\nthe following modifications:\\n(a) a reference to the capital expenditure incurred on the\\nprovision of one or more PIC automation equipment\\nduring the basis period for a year of assessment, being the\\nbasis period in which the agreement or agreements is or are\\nsigned, is a reference to the aggregate of —\\n(i) the price or prices (including capital expenditure\\nincurred on alterations to an existing building\\nincidental to the installation of the equipment but\\nexcluding any finance charges) at which the person\\nmight have purchased the equipment or all the\\nequipment that is the subject of the hire‑purchase\\nagreement or agreements for cash at the time of the\\nsigning of the agreement or agreements; and\\n(ii) the capital expenditure incurred on the provision of\\nany\\nother\\nPIC\\nautomation\\nequipment\\nfor\\nthe\\npurposes of the person’s trade, profession or\\nbusiness during that basis period;\\nIncome Tax Act 1947\\n2020 Ed.\\n482\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) a reference to the capital expenditure incurred on the\\nprovision of one or more PIC automation equipment\\nduring the basis period for a year of assessment excludes\\nthe amount of any instalment paid or deposit made by the\\nperson under that agreement or any of those agreements\\nduring the basis period;\\n(c) the allowance referred to in subsection (2A), (2B) or\\n(2BAA) in respect of each equipment that is the subject of\\na hire‑purchase agreement must be made to the person for\\nthe year of assessment in respect of each basis period\\nduring which the person paid an instalment or instalments\\nor made a deposit or deposits under the agreement, in the\\nproportion which the total amount of the instalment or\\ninstalments paid, and deposit or deposits made, during that\\nbasis period for that equipment bears to the total amount of\\nall instalments and deposits under the agreement for that\\nequipment.\\n[37/2014]\\n(2D) For the purposes of subsections (2A), (2B) and (2BAA),\\nwhere an individual carrying on a trade, profession or business\\nthrough 2 or more firms (excluding partnerships) has incurred capital\\nexpenditure during the basis period for any year of assessment\\nbetween the year of assessment 2011 and the year of assessment 2018\\n(both years inclusive) on the provision of one or more PIC automation\\nequipment in respect of such firms for the purposes of his or her trade,\\nprofession or business, the allowance that may be allowed to him or\\nher for that expenditure in respect of all of his or her trades,\\nprofessions and businesses must not exceed the amount computed in\\naccordance with subsection (2A), (2B) or (2BAA) (as the case may\\nbe) for that year of assessment.\\n[37/2014]\\n(2E) For the purposes of subsections (2A), (2B) and (2BAA),\\nwhere a partnership carrying on a trade, profession or business has\\nincurred capital expenditure during the basis period for any year of\\nassessment between the year of assessment 2011 and the year of\\nassessment 2018 (both years inclusive) on the provision of one or\\nmore PIC automation equipment for the purposes of its trade,\\nIncome Tax Act 1947\\n483\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nprofession or business, the aggregate of the allowances that may be\\nallowed to all the partners of the partnership for that expenditure in\\nrespect of all of the trades, professions and businesses of the\\npartnership must not exceed the amount computed in accordance with\\nsubsection (2A), (2B) or (2BAA) (as the case may be) for that year of\\nassessment.\\n[37/2014]\\n(2F) Despite subsections (2A), (2B) and (2BAA), where a person\\nhas incurred capital expenditure on the provision of any PIC\\nautomation equipment for the purpose of leasing such equipment,\\nno allowance under those subsections may be made to the person in\\nrespect of such expenditure.\\n[37/2014]\\n(2FA) Despite subsections (2A), (2B) and (2BAA), where the PIC\\nautomation equipment in question is not prescribed automation\\nequipment under subsection (2), then the allowances claimed under\\nsubsections (2A), (2B) and (2BAA) must be written down in the\\nfollowing manner:\\n(a) where the person claiming the allowances elects to claim\\nallowances\\nin\\nrespect\\nof\\nsuch\\nequipment\\nunder\\nsection 19 —\\n(i) one‑fifth of the allowances under subsections (2A),\\n(2B) and (2BAA) must be allowed for the year of\\nassessment for the basis period during which the\\nexpenditure is incurred; and\\n(ii) the\\nbalance\\nof\\nthe\\nallowances\\nunder\\nsubsections\\n(2A), (2B) and (2BAA)\\nmust be\\nwritten down over the number of years of working\\nlife\\nof\\nthe\\nequipment\\nas\\nspecified\\nin\\nthe\\nSixth Schedule or as elected by the person under\\nsection 19(2AB);\\n(b) where the person claiming the allowances elects to claim\\nallowances\\nin\\nrespect\\nof\\nsuch\\nequipment\\nunder\\nsubsection\\n(1)\\nor\\n(1B),\\nthe\\nallowances\\nunder\\nsubsections (2A), (2B) and (2BAA) must be written\\ndown over 3 years in the case of subsection (1), or over\\nIncome Tax Act 1947\\n2020 Ed.\\n484\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n2 years in the case of subsection (1B), in the same\\nproportions as those in which the allowances under\\nsubsection (1) or (1B) (as the case may be) may be made\\nto the person over that period of years.\\n[37/2014; 41/2020]\\n(2FB) To avoid doubt, subsection (2FA) does not apply to a website\\nprovided for the purposes of a trade, profession or business.\\n[37/2014]\\n(2G) Despite subsections (2A), (2B) and (2BAA) —\\n(a) where a person who has incurred capital expenditure on the\\nprovision of any PIC automation equipment (being also a\\nprescribed automation equipment under subsection (2))\\nelects to claim allowances in respect of such equipment\\nunder section 19 —\\n(i) one‑fifth\\nof\\nthe\\nallowances\\nclaimed\\nunder\\nsubsections\\n(2A), (2B) and (2BAA)\\nmust be\\nallowed for the year of assessment for the basis\\nperiod during which the expenditure is incurred; and\\n(ii) the balance of the allowances claimed under\\nsubsections\\n(2A), (2B) and (2BAA)\\nmust be\\nwritten down over the number of years of working\\nlife\\nof\\nthe\\nequipment\\nas\\nspecified\\nin\\nthe\\nSixth Schedule or as elected by the person under\\nsection 19(2AB);\\n(aa) where a person who has incurred capital expenditure on the\\nprovision of any PIC automation equipment (being also a\\nprescribed automation equipment under subsection (2))\\nelects to claim allowances in respect of such equipment\\nunder subsection (1) or (1B), the allowances claimed under\\nsubsections (2A), (2B) and (2BAA) must be written down\\nover 3 years in the case of subsection (1), or over 2 years in\\nthe case of subsection (1B), in the same proportions as\\nthose in which the allowances under subsection (1) or (1B)\\n(as the case may be) may be made to the person over that\\nperiod of years; and\\nIncome Tax Act 1947\\n485\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) if the person referred to in paragraph (a) or (aa) sells,\\ntransfers or assigns the PIC automation equipment after\\none year from the provision of such equipment, any\\nallowance\\nin\\nrespect\\nof\\nsuch\\nequipment\\nunder\\nsubsections (2A), (2B) and (2BAA) remaining unallowed\\nat the time of the sale, transfer or assignment must be\\nallowed to the person for the year of assessment relating to\\nthe basis period in which the sale, transfer or assignment\\noccurs.\\n[37/2014; 41/2020]\\n(2GA) The allowances referred to in subsection (2FA)(a)(i) or (b)\\nor (2G)(a)(i) or (aa) (as the case may be), in respect of any equipment\\nthat is the subject of a hire‑purchase agreement, must be made to the\\nperson for the year of assessment in respect of each basis period\\nduring which the person paid an instalment or instalments or made a\\ndeposit or deposits under the agreement, in the proportion which the\\ntotal amount of the instalment or instalments paid, and deposit or\\ndeposits made, during that basis period for the equipment bears to the\\ntotal amount of all instalments and deposits under the agreement for\\nthat equipment.\\n(2H) Where any allowance has been made to any person under\\nsubsection (2A), (2B) or (2BAA) in respect of any PIC automation\\nequipment and the person sells, transfers, assigns or leases the PIC\\nautomation equipment within the period of one year from the\\nprovision of such equipment —\\n(a) no allowance in respect of such equipment may be made to\\nthat person under subsections (2A), (2B) and (2BAA) for\\nthe year of assessment relating to the basis period in which\\nthe sale, transfer, assignment or lease occurs and for any\\nsubsequent year of assessment; and\\n(b) any allowance made under subsection (2A), (2B) or\\n(2BAA) must be brought to charge as if the allowances\\nwere not made, and is deemed as income for the year of\\nassessment relating to the basis period in which the sale,\\ntransfer, assignment or lease occurs.\\n[37/2014]\\nIncome Tax Act 1947\\n2020 Ed.\\n486\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(2HA) The Minister or such person as the Minister appoints may\\nwaive the application of subsection (2H)(b) in the following\\ncircumstances:\\n(a) the capital expenditure incurred on the provision of other\\nPIC automation equipment acquired in the basis period in\\nwhich the equipment sold, transferred, assigned or leased\\nwas acquired, is more than or equal to the amount that\\napplies to the year of assessment to which the basis period\\nrelates; or\\n(b) the Minister or person appointed by the Minister is\\nsatisfied that there is a bona fide commercial reason for\\nthe sale, transfer, assignment or lease.\\n(2HB) In subsection (2HA), the amount that applies to a year of\\nassessment is the amount set out in —\\n(a) for the year of assessment 2011, subsection (2A)(a)(ii);\\n(b) for the year of assessment 2012, subsection (2A)(b)(ii);\\n(c) for the year of assessment 2013, subsection (2B)(a)(ii);\\n(d) for the year of assessment 2014, subsection (2B)(b)(ii);\\n(e) for the year of assessment 2015, subsection (2B)(c)(ii);\\n(f) for the year of assessment 2016, subsection (2BAA)(a)(ii);\\n(g) for the year of assessment 2017, subsection (2BAA)(b)(ii);\\n(h) for the year of assessment 2018, subsection (2BAA)(c)(ii),\\nas modified by subsection (2BA), (2BB) or (2BC), as the case may\\nbe.\\n[37/2014]\\n(2I) No allowance under subsections (2A), (2B) and (2BAA) may\\nbe made to any person in respect of any amount of capital expenditure\\nincurred on the provision of PIC automation equipment for which an\\ninvestment allowance has been claimed under Part 8 of the Economic\\nExpansion Incentives (Relief from Income Tax) Act 1967.\\n[37/2014]\\n(2IA) [Deleted by Act 39 of 2023 wef 29/12/2023]\\nIncome Tax Act 1947\\n487\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(2J) No allowance under subsections (2A), (2B) and (2BAA) may\\nbe made to any person in respect of any PIC automation equipment\\nfor which an allowance under this section or section 19 has been\\npreviously made to that person.\\n[37/2014]\\n(2K) No allowance under subsections (2A), (2B) and (2BAA) may\\nbe made to any person in respect of any instalment paid by the person\\nunder any hire‑purchase agreement to acquire any PIC automation\\nequipment that is signed before the basis period for the year of\\nassessment 2011.\\n[37/2014]\\n(3) Despite section 19, where a person proves to the Comptroller’s\\nsatisfaction that the person has, for the purposes of a trade, business\\nor profession carried on by the person, installed a generator in any\\noffice or factory for the supply of electrical power to that office or\\nfactory in the event of a disruption in the normal supply of electrical\\npower, the person is, in lieu of the allowances provided by\\nsubsection (1), (1B) or (1E) or section 19, entitled, if the person so\\nelects, to an allowance of 100% in respect of the capital expenditure\\nincurred on the provision of that generator.\\n[41/2020]\\n(4) Despite section 19, where a person proves to the Comptroller’s\\nsatisfaction that the person has installed a robot for the purposes of a\\ntrade, business or profession carried on by the person, the person is, in\\nlieu of the allowances provided by subsection (1), (1B) or (1E) or\\nsection 19, entitled, if the person so elects, to an allowance of 100% in\\nrespect of the capital expenditure incurred on the provision of that\\nrobot.\\n[41/2020]\\n(5) Despite section 19, where a person proves to the Comptroller’s\\nsatisfaction that the person has installed during the period between\\n1 January 1996 and 16 February 2021 (both dates inclusive) any\\nefficient pollution control equipment or device for the purposes of a\\ntrade, business or profession carried on by the person, the person is, in\\nlieu of the allowances provided by subsection (1), (1B) or (1E) or\\nsection 19, entitled, if the person so elects, to an allowance of 100% in\\nIncome Tax Act 1947\\n2020 Ed.\\n488\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nrespect of the capital expenditure incurred on the provision of the\\nefficient pollution control equipment or device.\\n[41/2020; 27/2021]\\n(6) Despite section 19, where a person proves to the Comptroller’s\\nsatisfaction that the person has installed at any time from 1 January\\n1996 to 31 December 2017 (both dates inclusive) any certified\\nenergy‑efficient equipment as a replacement for any other equipment,\\nor any certified energy‑saving equipment, for the purposes of a trade,\\nbusiness or profession carried on by the person, the person is, in lieu\\nof the allowances provided by subsection (1) or (1B) or section 19,\\nentitled, if the person so elects, to an allowance of 100% in respect of\\nthe capital expenditure incurred on the provision of the certified\\nenergy‑efficient equipment or certified energy‑saving equipment.\\n[39/2017]\\n(7) Despite section 19, where a person proves to the Comptroller’s\\nsatisfaction that the person has, on or after 1 January 1998, installed\\nany new —\\n(a) certified low‑decibel machine, equipment or system;\\n(b) certified effective noise control device which is a distinct\\nentity or an accessory of any new or existing machine,\\nequipment or system; or\\n(c) certified effective engineering noise control measure for\\nany existing machine, equipment or process,\\nfor the purposes of a trade, business or profession carried on by the\\nperson, the person is, in lieu of the allowances provided by\\nsubsection (1), (1B) or (1E) or section 19, entitled, if the person so\\nelects, to an allowance of 100% in respect of the capital expenditure\\nincurred on the provision of the certified machine, equipment or\\nsystem, or the certified effective noise control device or measure.\\n[41/2020]\\n(8) Despite section 19, where a person proves to the Comptroller’s\\nsatisfaction that the person has, on or after 1 January 1998, installed\\nany new —\\n(a) certified machine, equipment or system which reduces or\\neliminates exposure to chemical risk;\\nIncome Tax Act 1947\\n489\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) certified effective chemical hazard control device which is\\na distinct entity or an accessory of any new or existing\\nmachine, equipment or process; or\\n(c) certified effective chemical hazard control measure for any\\nexisting machine, equipment or process,\\nfor the purposes of a trade, business or profession carried on by the\\nperson, the person is, in lieu of the allowances provided by\\nsubsection (1), (1B) or (1E) or section 19, entitled, if the person so\\nelects, to an allowance of 100% in respect of the capital expenditure\\nincurred on the provision of the certified machine, equipment or\\nsystem, or the certified effective chemical hazard control device or\\nmeasure.\\n[41/2020]\\n(9) Despite section 19, where a person proves to the Comptroller’s\\nsatisfaction that the person has, for the purposes of a trade, business\\nor profession carried on by the person, registered any new vehicle as a\\nreplacement for an existing vehicle which used diesel oil as fuel and\\nwhich was registered before 1 January 1991 and deregistered on or\\nafter 27 February 1999, the person is, in lieu of the allowances\\nprovided by subsection (1) or (1B) or section 19, entitled, if the\\nperson so elects, to an allowance of 100% in respect of the capital\\nexpenditure incurred on the provision of that new vehicle.\\n(9A) Despite\\nsection\\n19,\\nwhere\\na\\nperson\\nproves\\nto\\nthe\\nComptroller’s satisfaction that the person has, for the purposes of a\\ntrade, business or profession carried on by the person, registered\\nduring the period from 15 February 2007 to 14 February 2012 (both\\ndates inclusive) any new vehicle which uses diesel oil as fuel, as a\\nreplacement for an existing vehicle which used diesel oil as fuel and\\nwhich was registered on or after 1 January 1991 but before 1 October\\n2006, the person is, in lieu of the allowances provided by\\nsubsection (1) or (1B) or section 19, entitled, if the person so\\nelects, to an allowance of 100% in respect of the capital expenditure\\nincurred on the provision of that new vehicle.\\n[37/2014]\\n(10) Despite section 19, where a person proves to the Comptroller’s\\nsatisfaction that the person has incurred capital expenditure on the\\nprovision of a website for the purposes of a trade, business or\\nIncome Tax Act 1947\\n2020 Ed.\\n490\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nprofession carried on by the person, the person is entitled to an\\nallowance of 100% in respect of the capital expenditure incurred on\\nthe provision of that website, and for this purpose, a website is\\ndeemed to be machinery or plant.\\n(10A) Despite section 19 and subject to subsection (10B), where a\\nperson proves to the Comptroller’s satisfaction that the person has\\nincurred capital expenditure not exceeding $5,000 on the provision of\\nany item of machinery or plant for the purposes of a trade, profession\\nor business carried on by the person, the person is, in lieu of the\\nallowances provided by subsection (1), (1B) or (1E) or section 19,\\nentitled, if the person so elects, to an allowance of —\\n(a) 100% in respect of that capital expenditure; or\\n(b) where allowances have been made under subsection (1),\\n(1B) or (1E) or section 19 for any previous year of\\nassessment under subsection (10B), the amount of that\\ncapital expenditure still unallowed.\\n[41/2020]\\n(10B) The aggregate amount of allowances claimed by any person\\nunder subsection (10A) for any year of assessment must not exceed\\n$30,000; and allowances may be made under subsection (1), (1B) or\\n(1E) or section 19 in respect of any capital expenditure still\\nunallowed.\\n[41/2020]\\n(10C) No allowance may be made under subsection (10A) in\\nrespect of any item of machinery or plant which is acquired under a\\nhire‑purchase agreement and the original cost of that item of\\nmachinery or plant exceeds $5,000.\\n(11) Any claim by a person for allowances in respect of any\\nmachinery or plant under this section for any year of assessment is not\\nto be disallowed by reason only that the person has not in use the\\nmachinery or plant at the end of the basis period for that year of\\nassessment.\\n(12) Any claim for allowances under this section must be made at\\nthe time of lodgment of the return of income for the relevant years of\\nassessment or within such further time as the Comptroller may allow.\\nIncome Tax Act 1947\\n491\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(13) Where any allowance has been claimed and allowed under this\\nsection for any year of assessment, no allowances may be made in any\\nsubsequent year of assessment under section 19 in respect of such\\nexpenditure.\\n(13A) Where the tax relief period of a person to whom a certificate\\nhas been issued under Part 2 of the Economic Expansion Incentives\\n(Relief from Income Tax) Act 1967 expires in any basis period ending\\non or after 1 January 1992 and the person has —\\n(a) at the end of the basis period immediately following that\\nbasis period, in use machinery or plant in respect of which\\ncapital allowances have been made under section 19; and\\n(b) before the end of the year of assessment which relates to\\nthe basis period referred to in paragraph (a), so elected,\\nthere is to be made to the person for a period of 3 years an annual\\nallowance of 331/3% in respect of the capital expenditure remaining\\nunallowed under section 19 in respect of the machinery or plant as at\\nthe end of that basis period.\\n(13B) [Deleted by Act 32 of 2019]\\n(14) Subject to subsections (10A) and (13A), where any allowance\\nhas been claimed and allowed under section 19 in respect of any\\nexpenditure, no allowances may, except with the approval of the\\nMinister or the Comptroller and subject to such conditions as the\\nMinister or Comptroller may impose, be made in any subsequent year\\nof assessment under this section in respect of the amount of that\\nexpenditure remaining unallowed under section 19.\\n[32/2019]\\n(14A) Unless otherwise provided in this Act or the Economic\\nExpansion Incentives (Relief from Income Tax) Act 1967, where, in\\nthe basis period for any year of assessment, the trade, profession or\\nbusiness, for which purpose the machinery or plant is provided,\\nproduces income that is exempt from tax as well as income\\nchargeable with tax, the allowances for that year of assessment\\nmust be made against each income for that year of assessment in such\\nproportion as appears reasonable to the Comptroller in the\\ncircumstances.\\nIncome Tax Act 1947\\n2020 Ed.\\n492\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(14B) Subject to subsection (14C), this section applies, with the\\nnecessary modifications, to a person carrying on any trade or business\\nwho incurs during the basis period for any year of assessment\\nbetween the year of assessment 2009 and the year of assessment 2028\\n(both years inclusive) capital expenditure on the provision of\\nmachinery or plant for any research and development undertaken\\nby the person directly in Singapore or by a research and development\\norganisation on the person’s behalf in Singapore, even though the\\nmachinery or plant is not for the purpose of that trade or business.\\n[37/2014]\\n[Act 30 of 2023 wef 30/10/2023]\\n(14C) Section 14C(4) and (5) applies in relation to the allowance\\nfor the capital expenditure referred to in subsection (14B) as it applies\\nin relation to the deduction of the expenditure and payments referred\\nto in section 14C(1)(aa), (c) and (f), subject to the following\\nmodifications:\\n(a) a reference to the amount of the expenditure or payments\\n(after deducting any amount in respect of which an election\\nfor a cash payout has been made under section 37G) in\\nsection 14C(4) is a reference to the remaining amount of\\nthe allowance after deducting the amount of the allowance\\nthat corresponds to the capital expenditure in respect of\\nwhich an election for a cash payout has been made under\\nsection 37G;\\n(b) a reference to the specified amount of the expenditure or\\npayments is a reference to an amount computed in\\naccordance with the formula\\nA \\u0003 B\\nC ;\\nwhere A is the remaining amount of the allowance after deducting\\nthe amount of the allowance that corresponds to the\\ncapital expenditure in respect of which an election for a\\ncash payout has been made under section 37G;\\nB is the rate of tax specified in section 43(1)(a); and\\nC is —\\nIncome Tax Act 1947\\n493\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(i) in a case where the concessionary income derived by\\nthe person from the trade or business carried on by\\nthe person is subject to tax at a single concessionary\\nrate of tax, that rate; or\\n(ii) in a case where the concessionary income derived by\\nthe person from the trade or business carried on by\\nthe\\nperson\\nis\\nsubject\\nto\\ntax\\nat\\n2\\nor\\nmore\\nconcessionary rates of tax, the higher or highest of\\nthose rates; and\\n(c) a reference to “unabsorbed losses” is a reference to\\n“unabsorbed allowances”.\\n(14D) This section applies to a person carrying on any trade or\\nbusiness who appropriates any trading stock of that trade or business\\nfor use as machinery or plant for the purpose of any of the person’s\\ntrades, professions or businesses in circumstances that give rise to a\\nreasonable inference that the appropriation is permanent, subject to\\nthe following modifications:\\n(a) a reference to the capital expenditure incurred on the\\nprovision of machinery or plant is to the open market value\\nof the trading stock on the date of the appropriation;\\n(b) the capital expenditure is treated as having been incurred\\non the date of the appropriation of the trading stock.\\n[27/2021]\\n(14E) In subsection (14D), “open market value” and “trading\\nstock” have the meanings given by section 10J(9).\\n[27/2021]\\n(15) In this section —\\n“automation equipment”\\nmeans\\nany\\nmachinery or\\nplant\\ndesigned for the automation of functions or services;\\n“certificate of entitlement” means a permit issued or deemed to\\nbe issued under section 10A of the Road Traffic Act 1961;\\n“certified effective chemical hazard control device” means —\\n(a) any local exhaust ventilation system;\\nIncome Tax Act 1947\\n2020 Ed.\\n494\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) any fugitive emission control equipment or system;\\nor\\n(c) any dilution ventilation system,\\nwhich has been certified by any person approved by either the\\nMinister or such person as the Minister may appoint to have\\nsatisfied the prescribed criteria;\\n“certified effective chemical hazard control measure” means —\\n(a) any enclosed or automated system; or\\n(b) any modification to machine, equipment or process,\\nwhich has been certified by any person approved by either the\\nMinister or such person as the Minister may appoint to have\\nsatisfied the prescribed criteria;\\n“certified\\neffective\\nengineering\\nnoise\\ncontrol\\nmeasure”\\nmeans —\\n(a) any detachable personnel acoustic enclosure;\\n(b) any acoustic barrier or shield;\\n(c) any acoustic absorption device; or\\n(d) any modification to machine, equipment or process,\\nwhich has been certified by any person approved by either the\\nMinister or such person as the Minister may appoint to have\\nsatisfied the prescribed criteria;\\n“certified effective noise control device” means —\\n(a) any acoustic enclosure for machine, equipment or\\nprocess;\\n(b) any acoustic silencer or muffler;\\n(c) any vibration absorption, isolation or damping\\ndevice; or\\n(d) any active noise control device,\\nwhich has been certified by any person approved by either the\\nMinister or such person as the Minister may appoint to have\\nsatisfied the prescribed criteria;\\nIncome Tax Act 1947\\n495\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“certified energy‑efficient equipment” means —\\n(a) any air‑conditioning system;\\n(b) any boiler;\\n(c) any water pumping system;\\n(d) any washing or dry‑cleaning machine system;\\n(e) any refrigeration system;\\n(f) any lift or escalator; and\\n(g) any instant hot water system,\\nwhich has been certified by a professional engineer registered\\nunder the Professional Engineers Act 1991 to be more\\nenergy‑efficient than the equipment which it replaces;\\n“certified energy‑saving equipment” means —\\n(a) any solar heating or cooling system;\\n(b) any solar energy collection system;\\n(c) any heat recovery system;\\n(d) any power factor controller;\\n(e) any high efficiency electric motor;\\n(f) any variable speed drive motor control system;\\n(g) any high frequency lighting system;\\n(h) any computerised energy management system; and\\n(i) any other energy‑saving equipment or device,\\nwhich has been certified by any person approved by either the\\nMinister or such person as the Minister may appoint to be an\\nenergy‑saving equipment;\\n“certified low‑decibel machine, equipment or system” means —\\n(a) any concrete crusher or splitter;\\n(b) any plastic granulator or crusher;\\n(c) any automatic sawing machine;\\nIncome Tax Act 1947\\n2020 Ed.\\n496\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(d) any metal press or stamping machine;\\n(e) any machine with active noise control feature; or\\n(f) any other machine, equipment or system,\\nwhich has been certified by any person approved by either the\\nMinister or such person as the Minister may appoint to have\\nsatisfied the prescribed criteria;\\n“certified machine, equipment or system which reduces or\\neliminates exposure to chemical risk” means —\\n(a) any water‑based degreasing machine or system;\\n(b) any automated bagging or packing machine or\\nsystem;\\n(c) any automated degreasing machine or system; or\\n(d) any other machine, equipment or system,\\nwhich has been certified by any person approved by either the\\nMinister or such person as the Minister may appoint to have\\nsatisfied the prescribed criteria;\\n“computer” means any computer used for automatic data\\nprocessing and includes any part thereof;\\n“efficient pollution control equipment or device” means any\\nequipment or device for the purposes of preventing,\\ncontrolling or reducing air pollution or water pollution\\nwhich satisfies the prescribed criteria;\\n“existing vehicle” means any goods vehicle or bus using diesel\\noil as fuel which —\\n(a) is not a vehicle registered under the RU index marks;\\n(b) is deregistered not later than one year before the last\\nday on which a renewal of registration licence can be\\nissued under the Road Traffic Act 1961 in respect of\\nthe vehicle; and\\n(c) has, unless the vehicle has been exempted from\\nobtaining a certificate of entitlement, at the date of\\nderegistration of the vehicle —\\nIncome Tax Act 1947\\n497\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(i) at least one year remaining in its certificate of\\nentitlement; or\\n(ii) a certificate of entitlement which can be\\nrenewed after its expiry;\\n“goods vehicle” means any motor vehicle constructed or\\nadapted for use for the carriage of goods;\\n“new vehicle” means any new goods vehicle or new bus\\nwhich —\\n(a) is registered within one month before, or within\\n6 months after, the deregistration of the existing\\nvehicle which uses diesel oil as fuel; and\\n(b) bears an index mark which is the same as the index\\nmark of such existing vehicle, and for this purpose,\\nwhere the new goods vehicle and such existing\\nvehicle have a maximum laden weight exceeding\\n3.0 metric tons but not exceeding 3.5 metric tons, the\\nnew goods vehicle is deemed to bear an index mark\\nwhich is the same as that of such existing vehicle;\\n“Productivity\\nand\\nInnovation\\nCredit\\nScheme\\nautomation\\nequipment” or “PIC automation equipment”, in relation to\\nany person, means —\\n(a) any automation equipment that is prescribed by the\\nMinister for the purposes of subsections (2A), (2B)\\nand (2BAA) and section 14Q; or\\n(b) any automation equipment which the Minister or a\\nperson appointed by the Minister has approved as\\nPIC automation equipment for the firstmentioned\\nperson;\\n“website” means a collection of programmes, data and images\\nwhich is accessible over the Internet or any network using a\\nbrowser or any other form of access.\\n[37/2014]\\n(16) In subsections (2A) to (2G) and (2I), a reference to capital\\nexpenditure incurred on the provision of PIC automation equipment\\nIncome Tax Act 1947\\n2020 Ed.\\n498\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nexcludes any such expenditure to the extent that it is or is to be\\nsubsidised by grants or subsidies from the Government or a statutory\\nboard.\\n(16A) For the purposes of subsections (2B), (2BAA), (2D) and\\n(2E), each reference to capital expenditure incurred in the basis\\nperiod for the year of assessment 2014 or a subsequent year of\\nassessment, on the provision of one or more PIC automation\\nequipment for the purposes of a trade, profession or business\\nincludes a reference to any capital expenditure incurred on the\\nprovision of a website for the purposes of a trade, profession or\\nbusiness.\\n[37/2014]\\n(16B) For the purposes of subsections (2F), (2H), (2HA), (2I) and\\n(2J) —\\n(a) each reference to capital expenditure incurred on the\\nprovision of any PIC automation equipment includes a\\nreference to capital expenditure incurred on the provision\\nof a website; and\\n(b) each reference to a PIC automation equipment includes a\\nreference to a website.\\n[37/2014]\\n[Act 39 of 2023 wef 29/12/2023]\\n(17) For the purposes of paragraph (b) of the definition of “PIC\\nautomation equipment”, the Minister or the person appointed by the\\nMinister may only approve any automation equipment if the Minister\\nor appointed person is satisfied that the equipment fulfils such criteria\\nas may be prescribed by the Minister.\\n(18) Any rules made under paragraph (a) of the definition of “PIC\\nautomation equipment”, and any approval given under paragraph (b)\\nof that definition, may be made to have effect for any year of\\nassessment beginning with the year of assessment 2011.\\nWriting‑down allowances for intellectual property rights\\n19B.—(1) Subject to this section, where a company carrying on a\\ntrade or business has incurred on or after 1 November 2003 capital\\nexpenditure in acquiring any intellectual property rights for use in\\nIncome Tax Act 1947\\n499\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthat trade or business and the acquisition date of those rights is on or\\nbefore the last day of the basis period relating to the year of\\nassessment 2016, writing‑down allowances in respect of that\\nexpenditure must be made to it during a writing‑down period of\\n5 years beginning with the year of assessment relating to the basis\\nperiod in which that expenditure is incurred.\\n[34/2016]\\n(1A) Where a company carrying on a trade or business incurs\\nduring the basis period for the year of assessment 2011 or the year of\\nassessment 2012 capital expenditure in acquiring one or more\\nintellectual property rights for use in its trade or business, there is, in\\naddition to the writing‑down allowance under subsection (1), to be\\nmade in respect of all its trades and businesses a writing‑down\\nallowance computed in accordance with the formula\\nA \\u0003 300%;\\nwhere A is —\\n(a) for the year of assessment 2011, the lower of the following:\\n(i) such capital expenditure incurred during the basis\\nperiod for that year of assessment;\\n(ii) $800,000; and\\n(b) for the year of assessment 2012, the lower of the following:\\n(i) such capital expenditure incurred during the basis\\nperiod for that year of assessment;\\n(ii) the balance after deducting from $800,000 the lower\\nof the amounts specified in paragraph (a)(i) and (ii).\\n(1AA) Where —\\n(a) a company carrying on a trade or business has incurred\\ncapital expenditure in acquiring any intellectual property\\nrights for use in that trade or business; and\\n(b) the acquisition date of those rights is on or after the first\\nday\\nof\\nthe\\nbasis\\nperiod\\nrelating\\nto\\nthe\\nyear\\nof\\nassessment 2017,\\nIncome Tax Act 1947\\n2020 Ed.\\n500\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nwriting‑down allowances in respect of that expenditure must be made\\nto it during a writing‑down period of 5 years, 10 years or 15 years (as\\nelected by the company) beginning with the year of assessment\\nrelating to the basis period in which that expenditure is incurred.\\n[34/2016]\\n(1AB) The company mentioned in subsection (1AA) must make an\\nirrevocable election to the Comptroller for the writing‑down\\nallowances to be made to it over a writing‑down period of 5 years,\\n10 years or 15 years.\\n[34/2016]\\n(1AC) The election under subsection (1AB) must be made at the\\ntime of lodgment of the company’s return of income for the year of\\nassessment relating to —\\n(a) if the payment for the intellectual property rights is made\\nby instalments, the basis period in which the first of any\\ndeposit or instalment payment for those rights is made; or\\n(b) in any other case, the basis period in which the expenditure\\nis incurred.\\n[34/2016]\\n(1AD) Where a company —\\n(a) that is a qualifying company for any year of assessment\\nbetween the years of assessment 2024 and 2028 (both years\\ninclusive); and\\n(b) that carries on a trade or business during the basis period\\nfor that year of assessment,\\nincurs during the basis period capital expenditure in acquiring one or\\nmore intellectual property rights for use in its trade or business, there\\nis to be made, in addition to the writing-down allowance under\\nsubsection\\n(1AA),\\na\\nwriting-down\\nallowance\\ncomputed\\nin\\naccordance with the formula\\nA \\u0003 300%;\\nwhere A is the lower of the following:\\n(a) the capital expenditure incurred during the basis period for\\nthat year of assessment;\\nIncome Tax Act 1947\\n501\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) $400,000.\\n[Act 30 of 2023 wef 30/10/2023]\\n(1AE) The writing-down allowance under subsection (1AD) is to\\nbe made to the qualifying company during the writing-down period\\nelected under subsection (1AA) for the same expenditure.\\n[Act 30 of 2023 wef 30/10/2023]\\n(1AF) In this section, a company is a qualifying company for a year\\nof assessment if —\\n(a) where the company is not part of a group — the company\\nderives less than $500 million in gross revenue from all of\\nits trades and businesses in that basis period; or\\n(b) where the company is part of a group — all the entities in\\nthe group derive a total of less than $500 million in gross\\nrevenue from all of the entities’ trades and businesses in\\nthat basis period.\\n[Act 30 of 2023 wef 30/10/2023]\\n(1AG) For the purposes of subsection (1AF) —\\n(a) “FRS 110” means the financial reporting standard known\\nas\\nFinancial\\nReporting\\nStandard\\n110\\n(Consolidated\\nFinancial Statements) that is treated as made by the\\nAccounting Standards Committee under Part 3 of the\\nAccounting Standards Act 2007, as amended from time to\\ntime; and\\n(b) “group” means a group of entities (whether incorporated or\\nregistered in Singapore or elsewhere) comprising a parent\\nand its subsidiaries within the meaning of FRS 110.\\n[Act 30 of 2023 wef 30/10/2023]\\n(1AH) No allowance under subsection (1AD) may be made to any\\nqualifying company in respect of any instalment paid by the\\nqualifying\\ncompany\\nunder\\nany\\nagreement\\nto\\nacquire\\nany\\nintellectual property rights that is signed before the basis period for\\nthe year of assessment 2024.\\n[Act 30 of 2023 wef 30/10/2023]\\n(1B) Subject to section 37J, where a company carrying on a trade or\\nbusiness\\nincurs\\nduring\\nthe\\nbasis\\nperiod\\nfor\\nthe\\nyear\\nof\\nassessment 2013, the year of assessment 2014 or the year of\\nIncome Tax Act 1947\\n2020 Ed.\\n502\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nassessment 2015 capital expenditure in acquiring one or more\\nintellectual property rights for use in its trade or business, there is, in\\naddition to the writing‑down allowance under subsection (1), to be\\nmade in respect of all its trades and businesses a writing‑down\\nallowance computed in accordance with the formula\\nA \\u0003 300%;\\nwhere A is —\\n(a) for the year of assessment 2013, the lower of the following:\\n(i) such capital expenditure incurred during the basis\\nperiod for that year of assessment;\\n(ii) $1,200,000;\\n(b) for the year of assessment 2014, the lower of the following:\\n(i) such capital expenditure incurred during the basis\\nperiod for that year of assessment;\\n(ii) the balance after deducting from $1,200,000 the\\nlower of the amounts specified in paragraph (a)(i)\\nand (ii); and\\n(c) for the year of assessment 2015, the lower of the following:\\n(i) such capital expenditure incurred during the basis\\nperiod for that year of assessment;\\n(ii) the balance after deducting from $1,200,000 the\\nlower of the amounts specified in paragraph (a)(i)\\nand (ii), and the lower of the amounts specified in\\nparagraph (b)(i) and (ii).\\n[37/2014]\\n(1BAA) Subject to section 37J, where a company carrying on a\\ntrade or business incurs during the basis period for the year of\\nassessment 2016, 2017 or 2018 capital expenditure in acquiring one\\nor more intellectual property rights for use in its trade or business,\\nthere\\nis,\\nin\\naddition\\nto\\nthe\\nwriting‑down\\nallowance\\nunder\\nsubsection (1) or (1AA), to be made in respect of all its trades and\\nbusinesses, a writing‑down allowance computed in accordance with\\nthe formula\\nIncome Tax Act 1947\\n503\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nA \\u0003 300%;\\nwhere A is —\\n(a) for the year of assessment 2016, the lower of the following:\\n(i) such capital expenditure incurred during the basis\\nperiod for that year of assessment;\\n(ii) $1,200,000;\\n(b) for the year of assessment 2017, the lower of the following:\\n(i) such capital expenditure incurred during the basis\\nperiod for that year of assessment;\\n(ii) the balance after deducting from $1,200,000 the\\nlower of the amounts specified in paragraph (a)(i)\\nand (ii); and\\n(c) for the year of assessment 2018, the lower of the following:\\n(i) such capital expenditure incurred during the basis\\nperiod for that year of assessment;\\n(ii) the balance after deducting from $1,200,000 the\\nlower of the amounts specified in paragraph (a)(i)\\nand (ii), and the lower of the amounts specified in\\nparagraph (b)(i) and (ii).\\n[37/2014; 34/2016]\\n(1BA) In subsection (1A), the amount under paragraph (a)(ii) is\\nsubstituted with “$400,000” if the company does not carry on any\\ntrade or business during the basis period for the year of\\nassessment 2012, and the balance under paragraph (b)(ii) is\\nsubstituted with “$400,000” if the company does not carry on any\\ntrade or business during the basis period for the year of\\nassessment 2011.\\n(1BB) In subsection (1B) —\\n(a) if the company does not carry on any trade or business\\nduring the basis period for any one year of assessment\\nbetween the year of assessment 2013 and the year of\\nassessment 2015 (both years inclusive), the references to\\nIncome Tax Act 1947\\n2020 Ed.\\n504\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“$1,200,000”\\nin\\nthe\\nparagraphs\\nof\\nthat\\nsubsection\\napplicable to the other 2 years of assessment are each\\nsubstituted with “$800,000”;\\n(b) if the company does not carry on any trade or business\\nduring the basis periods for any 2 years of assessment\\nbetween the year of assessment 2013 and the year of\\nassessment 2015 (both years inclusive), the reference to\\n“$1,200,000”\\nin\\nthe\\nparagraph\\nof\\nthat\\nsubsection\\napplicable to the remaining year of assessment is\\nsubstituted with “$400,000”; and\\n(c) to avoid doubt, no deduction may be made from the\\nsubstituted amount in subsection (1B)(b)(ii) or (c)(ii) of the\\nlower of the amounts specified in subsection (1B)(a)(i) and\\n(ii) if the company does not carry on any trade or business\\nduring the basis period for the year of assessment 2013,\\nand no deduction may be made from the substituted\\namount in subsection (1B)(c)(ii) of the lower of the\\namounts specified in subsection (1B)(b)(i) and (ii) if the\\ncompany does not carry on any trade or business during the\\nbasis period for the year of assessment 2014.\\n(1BC) In subsection (1BAA) —\\n(a) if the company does not carry on any trade or business\\nduring the basis period for any one year of assessment\\nbetween the years of assessment 2016 and 2018 (both years\\ninclusive),\\nthe\\nreferences\\nto\\n“$1,200,000”\\nin\\nthe\\nparagraphs of that subsection applicable to the other\\n2\\nyears\\nof\\nassessment\\nare\\neach\\nsubstituted\\nwith\\n“$800,000”;\\n(b) if the company does not carry on any trade or business\\nduring the basis periods for any 2 years of assessment\\nbetween the years of assessment 2016 and 2018 (both years\\ninclusive), the reference to “$1,200,000” in the paragraph\\nof that subsection applicable to the remaining year of\\nassessment is substituted with “$400,000”; and\\n(c) to avoid doubt, no deduction may be made from the\\nsubstituted amount in subsection (1BAA)(b)(ii) or (c)(ii)\\nIncome Tax Act 1947\\n505\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nof\\nthe\\nlower\\nof\\nthe\\namounts\\nspecified\\nin\\nsubsection (1BAA)(a)(i) and (ii) if the company does not\\ncarry on any trade or business during the basis period for\\nthe year of assessment 2016, and no deduction may be\\nmade\\nfrom\\nthe\\nsubstituted\\namount\\nin\\nsubsection (1BAA)(c)(ii) of the lower of the amounts\\nspecified in subsection (1BAA)(b)(i) and (ii) if the\\ncompany does not carry on any trade or business during\\nthe basis period for the year of assessment 2017.\\n[37/2014]\\n(1C) Where a company proves to the Comptroller’s satisfaction that\\nit has during or after the basis period for the year of assessment 2011\\nincurred capital expenditure by way of making one or more\\ninstalment\\npayments\\nunder\\nan\\nagreement\\nor\\nagreements\\nin\\nacquiring one or more intellectual property rights for use in its\\ntrade or business, that is or are signed during the basis period for any\\nyear of assessment between the year of assessment 2011 and the year\\nof assessment 2018 (both years inclusive), or between the year of\\nassessment 2024 and the year of assessment 2028 (both years\\ninclusive), and an allowance is made under subsection (1A), (1AD),\\n(1B) or (1BAA), those subsections apply with the following\\nmodifications:\\n(a) a reference to the capital expenditure incurred on the\\nacquisition of one or more intellectual property rights\\nduring the basis period for a year of assessment, being the\\nbasis period in which the agreement or agreements is or are\\nsigned, is a reference to the aggregate of —\\n(i) the price or prices (excluding any finance charges) at\\nwhich it might have purchased the right or all the\\nrights that is or are the subject of the agreement or\\nagreements for cash at the time of the signing of the\\nagreement or agreements; and\\n(ii) the capital expenditure incurred on the acquisition of\\nany other intellectual property rights for use in its\\ntrade or business during that basis period;\\nIncome Tax Act 1947\\n2020 Ed.\\n506\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) a reference to the capital expenditure incurred on the\\nacquisition of one or more intellectual property rights\\nduring the basis period for a year of assessment excludes\\nthe amount of any instalment paid or deposit made by it\\nunder that agreement or any of those agreements during the\\nbasis period;\\n(c) the allowance referred to in subsection (1A), (1AD), (1B)\\nor (1BAA) in respect of each right that is the subject of an\\nagreement is to be made to the company for the year of\\nassessment in respect of each basis period during which it\\npaid an instalment or instalments, or made a deposit or\\ndeposits, under the agreement, in the proportion which the\\ntotal amount of the instalment or instalments paid\\n(excluding any finance charges), and deposit or deposits\\nmade, during that basis period for that right bears to the\\ntotal amount of all instalments (excluding any finance\\ncharges) and deposits under the agreement for that right.\\n[37/2014; 34/2016]\\n[Act 30 of 2023 wef 30/10/2023]\\n(1D) No writing‑down allowance under subsections (1A), (1AD),\\n(1B) and (1BAA) may be made for any capital expenditure incurred\\nin acquiring any intellectual property rights in any software which are\\nacquired for the purpose of licensing all or any of those rights to\\nanother.\\n[37/2014]\\n[Act 30 of 2023 wef 30/10/2023]\\n(1E) To\\navoid\\ndoubt,\\nthe\\nwriting‑down\\nallowance\\nunder\\nsubsection (1A), (1B) or (1BAA) is to be made to a company\\nduring the applicable writing‑down period in subsection (1) or\\n(1AA).\\n[34/2016]\\n(2) The total writing‑down allowance to be made for any year of\\nassessment to a company for capital expenditure incurred in\\nacquiring any intellectual property rights under subsection (1) or\\n(1AA), and under subsection (1A), (1AD), (1B) or (1BAA), is an\\namount computed in accordance with the formula\\nIncome Tax Act 1947\\n507\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nA \\u0003 B;\\nwhere A is —\\n(a) 20% if the writing‑down period for that allowance is\\n5 years;\\n(b) 10% if the writing‑down period for that allowance is\\n10 years; or\\n(c) 6 2\\n3 % if the writing‑down period for that allowance\\nis 15 years; and\\nB is the sum of —\\n(a) the capital expenditure; and\\n(b) the writing‑down allowance under subsection (1A),\\n(1AD), (1B) or (1BAA) for that expenditure.\\n[34/2016]\\n[Act 30 of 2023 wef 30/10/2023]\\n(2A) The writing‑down allowances to be made to a company under\\nthis section are allowed only if —\\n(a) there is an undertaking by the company that it is an\\nassignee of the intellectual property rights;\\n(b) the claim is made by the company in such manner and\\nsubject to such conditions as the Comptroller may require;\\nand\\n(c) in the case of writing‑down allowances mentioned in\\nsubsection (1AA), the company makes the election\\nmentioned in subsection (1AB).\\n[34/2016]\\n(2B) The Minister or an authorised body may in any particular case\\nwaive any of the requirements under subsection (2A)(a) and (b) in\\nrespect of any intellectual property rights acquired on or after\\n17 February 2006, subject to such conditions as the Minister or\\nauthorised body may impose.\\n[34/2016]\\n[Act 41 of 2020 wef 12/04/2024]\\nIncome Tax Act 1947\\n2020 Ed.\\n508\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(2BA) If —\\n(a) any requirement under subsection (2A)(a) and (b) has been\\nwaived (whether before, on or after 2 December 2019) for\\na company in relation to any writing‑down allowances\\nunder subsection (2B); and\\n(b) the company fails to comply with a condition subsequent\\nimposed under subsection (2B) for such waiver,\\nthen, if the Minister or authorised body is satisfied, having regard to\\nthe company’s representation and all the relevant circumstances of\\nthe case, that it is just and reasonable to do so, the Minister or\\nauthorised body —\\n(c) may make a determination that the company is not entitled\\nto any writing‑down allowance in respect of the relevant\\nintellectual property rights for each year of assessment\\nbeginning with a specified year of assessment; and\\n(d) must give a written notice of the determination to the\\nComptroller and the company.\\n[32/2019]\\n[Act 41 of 2020 wef 12/04/2024]\\n(2BB) If a determination is made under subsection (2BA), then\\n(despite anything in this section) —\\n(a) any writing‑down allowance that has already been made to\\nthe company in respect of those relevant intellectual\\nproperty rights for each year of assessment beginning\\nwith the specified year of assessment is treated for the\\npurposes of this section as having been wrongly made, and\\nthe Comptroller may, subject to section 74, make an\\nassessment or additional assessment on the company for\\nthe year or years of assessment to make good any tax\\nshortfall; and\\n(b) no writing‑down allowance may be made to the company\\nin respect of the relevant intellectual property rights —\\n(i) for any year of assessment after the year or years of\\nassessment mentioned in paragraph (a); or\\nIncome Tax Act 1947\\n509\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(ii) if no writing‑down allowance has been made to the\\ncompany for the specified year of assessment, for the\\nspecified year of assessment and each subsequent\\nyear of assessment.\\n[32/2019]\\n(2C) Despite subsections (1), (1AA) and (2), where a company that\\nis an approved media and digital entertainment company carrying on\\na trade or business has acquired on or after 22 January 2009 approved\\nintellectual\\nproperty\\nrights\\npertaining\\nto\\nfilms,\\ntelevision\\nprogrammes, digital animations or games, or other media and\\ndigital entertainment contents, for use in that trade or business,\\nwriting‑down allowances in respect of the capital expenditure\\nincurred in acquiring those rights —\\n(a) are to be made to it during a writing‑down period of 2 years\\nbeginning with the year of assessment relating to the basis\\nperiod in which that expenditure is incurred; and\\n(b) for each such year of assessment are an amount equal to\\n50% of the capital expenditure incurred.\\n[34/2016]\\n(2D) No writing‑down allowances under subsections (1A), (1AD),\\n(1B) and (1BAA) may be made in respect of any intellectual property\\nrights\\nin\\nrespect\\nof\\nwhich\\nany\\nof\\nthe\\nrequirements\\nunder\\nsubsection (2A)(a) and (b) has been waived under subsection (2B),\\nor any approved intellectual property rights referred to under\\nsubsection (2C).\\n[37/2014; 34/2016]\\n[Act 30 of 2023 wef 30/10/2023]\\n(2E) Where writing‑down allowances have been made to any\\ncompany under subsection (1A), (1AD), (1B) or (1BAA) in respect of\\nthe acquisition of any intellectual property rights and any of the\\nfollowing events occurs within 5 years, 10 years or 15 years\\n(depending on the writing‑down period for those allowances) from\\nthe acquisition of such intellectual property rights:\\n(a) the rights come to an end without being subsequently\\nrevived;\\nIncome Tax Act 1947\\n2020 Ed.\\n510\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) the company sells, transfers or assigns all or any part of\\nthose rights;\\n(ba) the company licenses all or any of those rights (being rights\\nin any software) to another;\\n(c) the company permanently ceases to carry on the trade or\\nbusiness,\\nthe following provisions apply:\\n(d) no writing‑down allowance in respect of such intellectual\\nproperty rights may be made to that company under\\nsubsections (1A), (1AD), (1B) and (1BAA) for the year of\\nassessment relating to the basis period in which the event\\noccurs and for any subsequent year of assessment; and\\n[Act 30 of 2023 wef 30/10/2023]\\n(e) if any of those events occurs within the period of one year\\nfrom the acquisition of the intellectual property rights, any\\nwriting‑down allowances made under subsection (1A),\\n(1AD), (1B) or (1BAA) must be brought to charge as if the\\nallowances were not made, and are deemed as income for\\nthe year of assessment relating to the basis period in which\\nthe event occurs.\\n[37/2014; 34/2016]\\n[Act 30 of 2023 wef 30/10/2023]\\n(3) Any capital expenditure incurred on the acquisition of any\\nintellectual property rights by a company before the commencement\\nof its trade or business is treated for the purpose of this section as if it\\nhad been incurred by it on the first day it commences that trade or\\nbusiness.\\n(4) Subject to subsection (4A), where writing‑down allowances\\nhave been made to any company under subsection (1), (1AA) or (2C)\\nin respect of any intellectual property rights and, before the end of the\\nwriting‑down period, any of the following events occurs:\\n(a) the rights come to an end without being subsequently\\nrevived;\\n(b) the company sells, transfers or assigns all or any part of\\nthose rights;\\nIncome Tax Act 1947\\n511\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) the company permanently ceases to carry on the trade or\\nbusiness,\\nno writing‑down allowance in respect of the intellectual property\\nrights may be made to that company for the year of assessment\\nrelating to the basis period in which the event occurs or for any\\nsubsequent year of assessment, and, where (on the occurrence of the\\nevent referred to in paragraph (b)) the price at which the rights were\\nsold, transferred or assigned exceeds the amount of the writing‑down\\nallowances yet to be allowed on the date of the event, there is to be\\nmade on the company for the year of assessment relating to the basis\\nperiod in which the event occurs a charge of an amount equal to the\\nlower of —\\n(d) the excess; and\\n(e) the writing‑down allowances made under subsections (1),\\n(1AA) and (2C).\\n[34/2016]\\n(4A) Where parts of any intellectual property right are sold,\\ntransferred or assigned by the company at different times and at\\nleast one sale, transfer or assignment occurs before the end of the\\nwriting‑down period, subsection (4) applies to each sale, transfer and\\nassignment with the following modifications:\\n(a) the reference to the amount of writing‑down allowances\\nyet to be allowed for the year of assessment relating to the\\nbasis period in which the event occurs, is a reference to an\\namount ascertained in accordance with the formula\\nA \\u0001 B;\\nwhere A is the amount of writing‑down allowances yet to be\\nallowed for the intellectual property right on the date of\\nthe first of such sales, transfers or assignments; and\\nB is the aggregate of the prices of the parts of that right\\npreviously sold, transferred or assigned by the company,\\n(a) or zero, if the amount ascertained by that formula is less\\nthan or equal to zero; and\\nIncome Tax Act 1947\\n2020 Ed.\\n512\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) the reference to the writing‑down allowances made under\\nsubsections (1), (1AA) and (2C) is a reference to the\\nbalance of such allowances made under subsections (1),\\n(1AA) and (2C) in respect of that right after deducting the\\ntotal amount of any charges made under this section in\\nrespect of that right.\\n[34/2016]\\n(5) Where a company to whom writing‑down allowances have been\\nmade under subsections (1), (1AA) and (2C) in respect of any\\nintellectual property rights sells, transfers or assigns all or any part of\\nthose rights after the writing‑down period, there is to be made on the\\ncompany for the year of assessment relating to the basis period in\\nwhich the sale, transfer or assignment occurs, a charge in an amount\\nequal to the price which the rights were sold, transferred or assigned\\nor in an amount equal to the capital expenditure incurred in acquiring\\nthe rights, whichever is less.\\n[34/2016]\\n(6) For the purposes of subsection (5), where there is more than one\\nsale, transfer or assignment of any part of any intellectual property\\nrights, the amount of the capital expenditure incurred in acquiring the\\nintellectual property rights for the year of assessment relating to the\\nbasis period in which the sale, transfer or assignment of that part of\\nthe rights occurs is ascertained in accordance with the formula\\nA \\u0001 B;\\nwhere A is the capital expenditure incurred in acquiring the\\nintellectual property rights; and\\nB is the total amount of any charges made under this section\\nin any previous years of assessment in respect of that\\nexpenditure.\\n(6A) Unless otherwise provided in this Act or the Economic\\nExpansion Incentives (Relief from Income Tax) Act 1967, where, in\\nthe basis period for any year of assessment, the trade or business, in\\nwhich the intellectual property rights are used, produces income that\\nis exempt from tax as well as income chargeable with tax, the\\nallowances for that year of assessment are to be made against each\\nIncome Tax Act 1947\\n513\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nincome for that year of assessment in such proportion as appears\\nreasonable to the Comptroller in the circumstances.\\n(6B) Unless otherwise provided in this Act or the Economic\\nExpansion Incentives (Relief from Income Tax) Act 1967, where, in\\nthe basis period for any year of assessment, the trade or business, in\\nwhich the intellectual property rights are used, produces income that\\nis exempt from tax as well as income chargeable with tax, and any\\ncharge under subsection (4) or (5) arises to be made, such proportion\\nof that charge is exempt from tax as appears reasonable to the\\nComptroller in the circumstances.\\n(7) For the purpose of this section, any sale, transfer or assignment\\nof any intellectual property rights which occurs after the date on\\nwhich the trade or business of a company permanently ceases is\\ndeemed to have occurred immediately before the cessation.\\n(8) Despite the repeal of section 19B by the Income Tax\\n(Amendment) Act 2001, the repealed section 19B continues to\\napply and have effect to any approved know‑how or patent rights for\\nwhich writing‑down allowances had been made before the repeal as if\\nthat Act had not been enacted.\\n(9) Despite the amendment of section 19B by the Income Tax\\n(Amendment) Act 2003, section 19B in force immediately before\\n1 November 2003 continues to apply and have effect to any\\nintellectual property rights approved before that date.\\n(10) No writing‑down allowance may be made —\\n(a) under subsection (1) for any capital expenditure incurred in\\nrespect of intellectual property rights acquired after the last\\nday of the basis period for the year of assessment 2016;\\n(aa) under subsection (1AA) for any capital expenditure\\nincurred\\nin\\nrespect\\nof\\nintellectual\\nproperty\\nrights\\nacquired after the last day of the basis period for the\\nyear of assessment 2028; or\\n[Act 30 of 2023 wef 30/10/2023]\\nIncome Tax Act 1947\\n2020 Ed.\\n514\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) under subsection (2C) for any capital expenditure incurred\\nin respect of intellectual property rights acquired after the\\nlast day of the basis period for the year of assessment 2018.\\n[37/2014; 32/2019]\\n(10A) No writing‑down allowance under subsections (1), (1A),\\n(1AA), (1AD), (1B), (1BAA) and (2C) may be made for any capital\\nexpenditure incurred by a company referred to in subsections (1),\\n(1A), (1AA), (1AD), (1B), (1BAA) and (2C) in acquiring intellectual\\nproperty rights from —\\n(a) its related party ––\\n(i) to whom any deduction has been allowed under\\nsection 14, 14C, 14D, 14E, 14EA or 14P for any\\noutgoing, expense or payment incurred for any\\nactivity which resulted in the creation of the\\nintellectual property; and\\n[Act 30 of 2023 wef 30/10/2023]\\n(ii) whose proceeds from the sale, transfer or assignment\\nof those intellectual property rights to the company\\nare not chargeable to tax; or\\n(b) its related party who acquired the rights, directly or\\nindirectly, from a related party of the company referred\\nto in paragraph (a).\\n[37/2014; 34/2016]\\n[Act 30 of 2023 wef 30/10/2023]\\n(10B) The Minister may by order exempt a company from\\nsubsection (10A) in respect of such transaction as may be specified\\nin the order.\\n(10C) No writing‑down allowance under subsections (1A), (1AD),\\n(1B) and (1BAA) may be made to any company in respect of any\\namount of capital expenditure incurred on the acquisition of\\nintellectual property rights for which an investment allowance has\\nbeen claimed under Part 8 of the Economic Expansion Incentives\\n(Relief from Income Tax) Act 1967.\\n[37/2014]\\n[Act 30 of 2023 wef 30/10/2023]\\nIncome Tax Act 1947\\n515\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(10D) No allowance under subsections (1A), (1B) and (1BAA)\\nmay be made to any company in respect of any instalment paid by it\\nunder any agreement to acquire any intellectual property right that is\\nsigned before the basis period for the year of assessment 2011.\\n[37/2014]\\n(10E) If, in the case of an acquisition of intellectual property\\nrights —\\n(a) whose acquisition date is on or after 25 March 2016; and\\n(b) the payment for which is not made by instalments,\\nthe capital expenditure incurred for the acquisition exceeds the\\nopen‑market price for those rights, then, for the purpose of\\ndetermining the amount of writing‑down allowances for that\\nexpenditure under subsection (1AA), (1AD), (1BAA) or (2C), the\\nComptroller may treat the open‑market price as the amount of that\\nexpenditure, and in that event subsection (5) also applies as if the\\nopen‑market price were the amount of that expenditure.\\n[34/2016]\\n[Act 30 of 2023 wef 30/10/2023]\\n(10F) In subsection (10E), “open‑market price”, for intellectual\\nproperty rights, means either —\\n(a) the price which those rights could have been purchased in\\nthe open market on the acquisition date of those rights; or\\n(b) if, by reason of the special nature of those rights, it is not\\npossible to determine the price mentioned in paragraph (a),\\nsuch other value as the Comptroller considers to be a\\nreasonable value for those rights after considering the\\nvaluation of those rights by an appropriate valuer and other\\nrelevant circumstances.\\n[34/2016]\\n(10G) If, in the case of an acquisition of intellectual property\\nrights —\\n(a) whose acquisition date is on or after 25 March 2016; and\\n(b) the payment for which is made by instalments,\\nthe total amount of the deposits and instalment payments (excluding\\nany finance charges) made in a basis period exceeds the open‑market\\nIncome Tax Act 1947\\n2020 Ed.\\n516\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nprice for those rights, then, for the purpose of determining the amount\\nof writing‑down allowances in such a case under subsection (1AA) or\\n(2C), the Comptroller may treat the open‑market price as the amount\\nof such expenditure, and in that event subsection (5) also applies as if\\nthe open‑market price were the amount of such expenditure.\\n[34/2016]\\n(10H) In subsection (10G), “open‑market price”, for intellectual\\nproperty rights, means an amount computed by the formula\\nC\\nD \\u0003 E;\\nwhere C is the total amount of the deposits and instalment\\npayments (excluding any finance charges) made in the\\nbasis period;\\nD is the total amount of all the deposits and instalment\\npayments (excluding any finance charges) under the\\nagreement to acquire those rights; and\\nE is either —\\n(a) the price (excluding any finance charges) which\\nthose rights could have been purchased in the open\\nmarket on their acquisition date; or\\n(b) if, by reason of the special nature of those rights, it is\\nnot possible to determine the price mentioned in\\nsub‑paragraph\\n(a),\\nsuch\\nother\\nvalue\\nas\\nthe\\nComptroller considers to be a reasonable value for\\nthose rights after considering the valuation of those\\nrights by an appropriate valuer and other relevant\\ncircumstances.\\n[34/2016]\\n(10I) If, in the case of an acquisition of intellectual property\\nrights —\\n(a) whose acquisition date is on or after 25 March 2016; and\\n(b) the payment for which is made by instalments,\\nIncome Tax Act 1947\\n517\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthe\\namount\\nmentioned\\nin\\nsubsection\\n(1C)(a)(i)\\nexceeds\\nthe\\nopen‑market price mentioned in subsection (10F), then, for the\\npurpose of determining the amount of writing‑down allowances to be\\nmade for any year of assessment under subsection (1AD) or (1BAA)\\n(as the case may be), the Comptroller may treat the open‑market price\\nmentioned in subsection (10F) as the amount mentioned in\\nsubsection (1C)(a)(i).\\n[34/2016]\\n[Act 30 of 2023 wef 30/10/2023]\\n(10J) If —\\n(a) intellectual property rights or a part of such rights are or is\\nsold, transferred or assigned on or after 25 March 2016;\\nand\\n(b) the rights or part are or is sold, transferred or assigned for\\nless than the open‑market price,\\nthen, for the purpose of determining the amount of any charge under\\nsubsection (4), (4A) or (5), the Comptroller may treat the\\nopen‑market price as the price at which the rights or part (as the\\ncase may be) are or is sold, transferred or assigned.\\n[34/2016]\\n(10K) In subsection (10J), “open‑market price”, for intellectual\\nproperty rights or a part of such rights, means —\\n(a) the price which those rights or that part would have fetched\\nif sold, transferred or assigned in the open market at the\\ntime of the actual sale, transfer or assignment; or\\n(b) if, by reason of the special nature of those rights or part, it\\nis not possible to determine the price mentioned in\\nparagraph (a), such other value as the Comptroller\\nconsiders to be a reasonable value for those rights or that\\npart after considering the valuation of those rights or that\\npart\\nby\\nan\\nappropriate\\nvaluer\\nand\\nother\\nrelevant\\ncircumstances.\\n[34/2016]\\nIncome Tax Act 1947\\n2020 Ed.\\n518\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(11) In this section —\\n“appropriate valuer” means a valuer who is independent of any\\nparty to the acquisition, sale, transfer or assignment (as the\\ncase may be) of the intellectual property rights, and has\\nqualifications and experience that are relevant to the\\nvaluation in question;\\n“approved” means approved by the Minister or an authorised\\nbody, subject to such conditions as the Minister or authorised\\nbody may impose;\\n[Act 41 of 2020 wef 12/04/2024]\\n“capital expenditure” does not include legal fees, registration\\nfees, stamp duty and other costs related to the acquisition of\\nany intellectual property rights;\\n“intellectual property rights” means the right to do or authorise\\nthe doing of anything which would, but for that right, be an\\ninfringement of any patent, copyright, trade mark, registered\\ndesign, geographical indication, layout‑design of integrated\\ncircuit, trade secret or information that has commercial value,\\nor the grant of protection of a plant variety;\\n“media and digital entertainment company” means a company\\nwhose principal trade or business is to provide media and\\ndigital entertainment in Singapore.\\n[Act 33 of 2022 wef 04/11/2022]\\n[34/2016]\\n[Deleted by Act 33 of 2022 wef 04/11/2022]\\n(11A) In the definition of “intellectual property rights” in\\nsubsection (11), the expressions “trade secret” and “information\\nthat has commercial value”, and any work or subject matter to which\\nthe expression “copyright” relates, exclude the following:\\n(a) information of customers of a trade or business, such as a\\nlist of those customers and requirements of those\\ncustomers, gathered in the course of carrying on that\\ntrade or business;\\nIncome Tax Act 1947\\n519\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) information on work processes (such as standard operating\\nprocedures),\\nother\\nthan\\nindustrial\\ninformation,\\nor\\ntechnique, that is likely to assist in the manufacture or\\nprocessing of goods or materials;\\n(c) compilation\\nof\\nany\\ninformation\\nas\\ndescribed\\nin\\nparagraph (a) or (b);\\n(d) such other matter as the Minister may by regulations\\nprescribe.\\n[37/2014]\\n(12) In subsections (1A), (1AD), (1B) and (1BAA), a reference to\\ncapital expenditure incurred on the acquisition of intellectual\\nproperty rights excludes any such expenditure to the extent that it\\nis or is to be subsidised by grants or subsidies from the Government or\\na statutory board.\\n[37/2014]\\n[Act 30 of 2023 wef 30/10/2023]\\n(13) In this section, for a company, the acquisition date of any\\nintellectual property rights is —\\n(a) the date of the signing of the agreement to acquire those\\nrights; or\\n(b) if there is no agreement, the date on which those rights are\\nassigned to the company.\\n[34/2016]\\nWriting‑down allowances for approved cost‑sharing\\nagreement for research and development activities\\n19C.—(1) Subject to this section, where a person carrying on a\\ntrade or business has incurred expenditure under any cost‑sharing\\nagreement entered into and approved on or after 17 February 2006, in\\nrespect of research and development activities for the purposes of that\\ntrade or business (called in this section the relevant trade or business),\\nthe person is, subject to such conditions as may be imposed by the\\nMinister or such person as the Minister may appoint, entitled to a\\nwriting‑down allowance of 100% of that expenditure in the year of\\nassessment relating to the basis period in which that expenditure was\\nincurred.\\nIncome Tax Act 1947\\n2020 Ed.\\n520\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(1A) No writing‑down allowance may be made under this section\\nin respect of any expenditure incurred during the basis period for the\\nyear of assessment 2012 or any subsequent year of assessment.\\n(2) The Minister or such person as the Minister may appoint may\\nspecify the maximum amount of expenditure in respect of which\\nwriting‑down allowances are to be made under subsection (1).\\n(3) No writing‑down allowance may be made under subsection (1)\\nto any person in respect of any payment or contribution paid by the\\nperson for the right to become a party to any existing approved\\ncost‑sharing agreement.\\n(4) Any expenditure incurred by a person under any approved\\ncost‑sharing agreement before the commencement of the person’s\\ntrade or business is treated for the purpose of this section as if it had\\nbeen incurred by the person on the first day the person commences\\nthat trade or business.\\n(5) Where a person to whom writing‑down allowances have been\\nmade under this section —\\n(a) sells, assigns or otherwise disposes of any right under any\\napproved cost‑sharing agreement to which the person is a\\nparty;\\n(b) sells, assigns or otherwise disposes of the whole or part of\\nany technology or know‑how developed from the research\\nand development activities carried out under any approved\\ncost‑sharing agreement to which the person is a party;\\n(c) receives any consideration from any other person for\\npermitting that other person to become a party to any\\napproved\\ncost‑sharing\\nagreement\\nto\\nwhich\\nthe\\nfirstmentioned person is a party; or\\n(d) receives any consideration from the disposal of any\\nmachinery,\\nplant\\nor\\nbuilding\\nacquired\\nunder\\nany\\napproved cost‑sharing agreement to which the person is\\na party,\\nthe amount or value of any consideration is treated as a trading receipt\\nof the relevant trade or business for the year of assessment which\\nIncome Tax Act 1947\\n521\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nrelates to the basis period in which the event in paragraph (a), (b), (c)\\nor (d) occurs.\\n(5A) To avoid doubt, section 19C(6) in force immediately before\\n17 February 2006, or subsection (5) of this section (as the case may\\nbe), continues to apply to a person to whom writing‑down allowances\\nhave previously been made under this section in respect of a\\ncost‑sharing\\nagreement,\\nand\\ndeductions\\nare\\nallowed\\nunder\\nsection 14C for expenditure incurred or payments made under the\\nsame agreement.\\n(6) For the purpose of subsection (5), the amount or value of the\\nconsideration to be treated as a trading receipt must not exceed the\\namount of writing‑down allowance made under this section.\\n(7) Where no writing‑down allowances have been made to any\\nperson in respect of expenditure incurred by the person by virtue of\\nsubsection (2) or in respect of any payment or contribution made by\\nthe person by virtue of subsection (3), the Minister may for the\\npurposes of subsection (5) exempt such part of the amount or value of\\nthe consideration as the Minister thinks fit.\\n(8) Any event referred to in subsection (5) which occurs after the\\ndate on which the relevant trade or business permanently ceases is\\ndeemed to have occurred immediately before the cessation.\\n(9) Where a person to whom writing‑down allowances have been\\nmade under this section is entitled to royalty or other payments in one\\nlump sum or otherwise for the use of or right to use any technology or\\nknow‑how developed from the research and development activities\\ncarried out under any approved cost‑sharing agreement, such royalty\\nor payments are deemed to be income derived from Singapore for the\\nyear of assessment which relates to the basis period in which the\\nperson is entitled to the royalty or payments, as the case may be.\\n(10) Unless otherwise provided in this Act or the Economic\\nExpansion Incentives (Relief from Income Tax) Act 1967, where,\\nin the basis period for any year of assessment, the relevant trade or\\nbusiness produces income that is exempt from tax as well as income\\nchargeable with tax, the allowances for that year of assessment are to\\nbe made against each income for that year of assessment in such\\nIncome Tax Act 1947\\n2020 Ed.\\n522\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nproportion as appears reasonable to the Comptroller in the\\ncircumstances.\\n(11) Unless otherwise provided in this Act or the Economic\\nExpansion Incentives (Relief from Income Tax) Act 1967, where,\\nin the basis period for any year of assessment, the relevant trade or\\nbusiness, produces income that is exempt from tax as well as income\\nchargeable with tax, and an event referred to in subsection (5)(a), (b),\\n(c) or (d) occurs, such proportion of any amount or value of any\\nconsideration treated as a trading receipt under that subsection is\\nexempt from tax as appears reasonable to the Comptroller in the\\ncircumstances.\\n(12) Despite the provisions of this section, section 19C in force\\nimmediately before 17 February 2006 continues to apply and have\\neffect in relation to any approved cost‑sharing agreement entered into\\nbefore that date in respect of research and development activities.\\n(13) In this section —\\n“approved” means approved by the Minister or such person as\\nthe Minister may appoint;\\n“cost‑sharing agreement” means any agreement or arrangement\\nmade by 2 or more persons to share the expenditure of\\nresearch and development activities to be carried out under\\nthe agreement or arrangement.\\nWriting‑down allowance for IRU\\n19D.—(1) Subject to this section, where a person carrying on a\\ntrade, business or profession has incurred capital expenditure during\\nor after the basis period for the year of assessment 2004 for the\\nacquisition of an indefeasible right to use any international\\ntelecommunications submarine cable system (called in this section\\nIndefeasible Right of Use or IRU) for the purposes of that trade,\\nbusiness or profession (called in this section the relevant trade,\\nbusiness or profession), writing‑down allowances computed in\\naccordance with subsection (3) are to be made to the person, on\\ndue claim, in respect of that capital expenditure during the\\nwriting‑down period.\\nIncome Tax Act 1947\\n523\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(2) The writing‑down period in respect of an IRU is the number of\\nyears for which the IRU is acquired commencing with the year of\\nassessment relating to the basis period in which the capital\\nexpenditure for the acquisition of the IRU is incurred.\\n(3) For the purposes of this section, the writing‑down allowances in\\nrespect of an IRU are determined by the formula\\nA\\nB ;\\nwhere A is the amount of capital expenditure incurred for the\\nacquisition of the IRU; and\\nB is the writing‑down period for the IRU.\\n(4) Despite anything in this section, no writing‑down allowance\\nmay be granted to any person under subsection (1) in any year of\\nassessment if the international telecommunications submarine cable\\nsystem is not in use at the end of the basis period for that year of\\nassessment by that person in the trade, business or profession carried\\non by the person.\\n(4A) No\\nwriting‑down\\nallowance\\nis\\nto\\nbe\\nmade\\nunder\\nsubsection\\n(1)\\nfor\\nany\\ncapital\\nexpenditure\\nincurred\\nafter\\n31 December 2028.\\n[2/2016; 41/2020]\\n[Act 30 of 2023 wef 30/10/2023]\\n(5) Any capital expenditure incurred for the acquisition of any IRU\\nby a person before the commencement of the person’s trade, business\\nor profession is treated for the purpose of this section as if it had been\\nincurred by the person on the first day the person commences that\\ntrade, business or profession.\\n(6) Where writing‑down allowances in respect of any IRU have\\nbeen made to any person under this section and, before or at the end of\\nthe writing‑down period for the IRU, any of the following events\\noccurs:\\n(a) the IRU comes to an end without subsequent renewal by\\nthe person;\\nIncome Tax Act 1947\\n2020 Ed.\\n524\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) the person permanently ceases to carry on the relevant\\ntrade, business or profession;\\n(c) the person sells, transfers or assigns all the IRU or so much\\nof it as the person still owns;\\n(d) the person sells, transfers or assigns part of the IRU and the\\namount\\nor\\nvalue\\nof\\nany\\nconsideration\\nless\\nany\\ndecommissioning\\ncost\\n(called\\nin\\nthis\\nsection\\nthe\\nconsideration) for the sale, transfer or assignment is not\\nless than the amount of capital expenditure remaining\\nunallowed for the IRU,\\nno writing‑down allowance in respect of the IRU may be made to the\\nperson for the year of assessment relating to the basis period in which\\nthe event occurs or for any subsequent year of assessment.\\n(7) Where an IRU remains with any person after the date on which\\nit permanently ceases to be used by the person for the relevant trade,\\nbusiness or profession, the IRU is deemed to have been sold by the\\nperson at the open‑market price on the date of permanent cessation of\\nuse.\\n(8) Where writing‑down allowances in respect of any IRU have\\nbeen made to any person under this section and, before or at the end of\\nthe writing‑down period for the IRU, any of the following events\\noccurs:\\n(a) the IRU comes to an end without subsequent renewal by\\nthe person;\\n(b) the person permanently ceases to carry on the relevant\\ntrade, business or profession;\\n(c) the person sells, transfers or assigns all the IRU or so much\\nof it as the person still owns and the consideration for the\\nsale, transfer or assignment is less than the amount of\\ncapital expenditure remaining unallowed for the IRU,\\nthere is to be made to the person for the year of assessment relating to\\nthe basis period in which the event occurs, a balancing allowance\\nequal to —\\nIncome Tax Act 1947\\n525\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(d) in the case where the amount of capital expenditure\\nremaining\\nunallowed\\nfor\\nthe\\nIRU\\nexceeds\\nthe\\nconsideration for the sale, transfer or assignment of the\\nIRU, the excess; or\\n(e) in any other case, the amount of capital expenditure\\nremaining unallowed for the IRU.\\n(9) Where writing‑down allowances in respect of any IRU have\\nbeen made to any person under this section and the person sells,\\ntransfers or assigns all or any part of the IRU and the consideration for\\nthe sale, transfer or assignment of the IRU exceeds the amount of\\ncapital expenditure remaining unallowed for the IRU (if any) there is\\nto be made on the person, a balancing charge, which is based on an\\namount equal to —\\n(a) the excess of the consideration for the sale, transfer or\\nassignment of the IRU over the amount of capital\\nexpenditure remaining unallowed for the IRU; or\\n(b) the consideration for the sale, transfer or assignment of the\\nIRU, where the amount of capital expenditure remaining\\nunallowed for the IRU is nil,\\nand the balancing charge is deemed as income for the year of\\nassessment relating to the basis period in which the sale, transfer or\\nassignment of the IRU occurs.\\n(10) Where writing‑down allowances in respect of any IRU have\\nbeen made to any person under this section and the person sells,\\ntransfers or assigns any part of the IRU, and the consideration for the\\nsale, transfer or assignment of the IRU is less than the amount of\\ncapital expenditure remaining unallowed for the IRU, the amount of\\nany writing‑down allowances made in respect of the IRU for the year\\nof assessment relating to the basis period in which the sale, transfer or\\nassignment of the IRU occurs or any subsequent year of assessment is\\nthe amount determined by the formula\\nC \\u0001 D\\nE\\n;\\nIncome Tax Act 1947\\n2020 Ed.\\n526\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nwhere C is the amount of capital expenditure remaining unallowed\\nat the time of the sale, transfer or assignment of the IRU;\\nD is the consideration for the sale, transfer or assignment of\\nthat part of the IRU; and\\nE is the number of complete years of the writing‑down\\nperiod remaining at the beginning of the year of\\nassessment relating to the basis period in which the\\nsale, transfer or assignment of the IRU occurs,\\nand so on for any subsequent sale, transfer or assignment of the IRU.\\n(11) Despite subsections (9) and (10), the total amount on which a\\nbalancing charge is made in respect of any capital expenditure\\nincurred for the acquisition of an IRU must not exceed the total\\nwriting‑down allowances actually made for the IRU in respect of that\\ncapital expenditure, less, if a balancing charge has previously been\\nmade in respect of that capital expenditure, the amount on which that\\nbalancing charge was made.\\n(12) Where the sale, transfer or assignment of all or part of any IRU\\nis made at less than the open‑market price, then for the purpose of\\ndetermining the amount of any balancing allowance or balancing\\ncharge, the event is treated as if it had given rise to sale, transfer or\\nassignment moneys of an amount equal to the open‑market price of\\nthe IRU.\\n(13) Unless otherwise provided in this Act or the Economic\\nExpansion Incentives (Relief from Income Tax) Act 1967, where,\\nin the basis period for any year of assessment, the relevant trade,\\nbusiness or profession produces income that is exempt from tax as\\nwell as income chargeable with tax, the allowances for that year of\\nassessment are to be made against each income in that year of\\nassessment in such proportion as appears reasonable to the\\nComptroller in the circumstances.\\n(14) Unless otherwise provided in this Act or the Economic\\nExpansion Incentives (Relief from Income Tax) Act 1967, where,\\nin the basis period for any year of assessment, the relevant trade,\\nbusiness or profession produces income that is exempt from tax as\\nIncome Tax Act 1947\\n527\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nwell as income chargeable with tax, and any balancing allowance or\\nbalancing charge arises to be made —\\n(a) the balancing allowance is to be made against each income\\nfor that year of assessment in such proportion as appears\\nreasonable to the Comptroller in the circumstances; and\\n(b) such proportion of the balancing charge is exempt from tax\\nas\\nappears\\nreasonable\\nto\\nthe\\nComptroller\\nin\\nthe\\ncircumstances.\\n(15) In this section —\\n“capital expenditure” does not include legal fees, registration\\nfees, stamp duty and other costs related to the acquisition of\\nany IRU;\\n“capital expenditure remaining unallowed”, in relation to any\\nIRU, means the amount of capital expenditure incurred for\\nthe acquisition of the IRU less —\\n(a) any writing‑down allowances made in respect of that\\ncapital expenditure for the years of assessment before\\nthe year of assessment relating to the basis period in\\nwhich any event referred to in subsection (6), (8), (9)\\nor (10) occurs; and\\n(b) the consideration for any prior sale, transfer or\\nassignment by the person who incurred the capital\\nexpenditure of any part of the IRU acquired by the\\ncapital expenditure;\\n“international telecommunications submarine cable system”\\nmeans an international submarine cable that is laid in the\\nsea and includes its cable landing station and any other\\nequipment ancillary to the submarine cable system;\\n“open‑market price”, in relation to any IRU, means —\\n(a) the price which the IRU would have fetched if sold in\\nthe open market at the time any event referred to in\\nsubsection (6), (8), (9) or (10) occurs; or\\n(b) where the Comptroller is satisfied by reason of the\\nspecial nature of any IRU that it is not practicable to\\nIncome Tax Act 1947\\n2020 Ed.\\n528\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\ndetermine the open‑market price, such other value as\\nappears to the Comptroller to be reasonable in the\\ncircumstances.\\n(16) For the purposes of this section, any sale, transfer or\\nassignment of any IRU which occurs after the date on which a\\nrelevant trade, business or profession permanently ceases is deemed\\nto have occurred immediately before the cessation.\\nUse of open‑market price for making allowances under\\nsections 19, 19A and 19D\\n19E.—(1) This section applies for the purpose of making an\\nallowance under section 19, 19A or 19D for capital expenditure\\nincurred in acquiring any machinery, plant or IRU (called in this\\nsection the property), and applies despite anything in that section.\\n[27/2021]\\n(2) If the capital expenditure (not being a deposit or an instalment\\npayment) incurred for the acquisition of the property exceeds the\\nopen‑market price for the property, then, for the purpose of\\ndetermining the amount of allowances for the capital expenditure\\nunder section 19, 19A or 19D, the Comptroller may treat the\\nopen‑market price as the amount of that expenditure.\\n[27/2021]\\n(3) In subsection (2), the open‑market price for the property is\\neither —\\n(a) the price which the property could have been purchased in\\nthe open market on the date of its acquisition; or\\n(b) where the Comptroller is satisfied by reason of the special\\nnature of the property that it is not practicable to determine\\nthe price mentioned in paragraph (a), such other value as\\nappears to the Comptroller to be reasonable in the\\ncircumstances.\\n[27/2021]\\n(4) If the capital expenditure consists of deposits and instalment\\npayments and the total amount of the deposits and instalment\\npayments (excluding any finance charges) made in any basis period\\nexceeds a proportion of the open‑market price for the property as\\nIncome Tax Act 1947\\n529\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\ncomputed under subsection (5), then, for the purpose of determining\\nthe amount of allowances for the expenditure under section 19, 19A\\nor 19D, the Comptroller may treat that proportion of the open‑market\\nprice as the amount of that expenditure.\\n[27/2021]\\n(5) In subsection (4), the proportion of the open‑market price for\\nthe property is an amount computed by the formula\\nA\\nB \\u0003 C;\\nwhere —\\n(a) A is the total amount of the deposits and instalment\\npayments (excluding any finance charges) made in the\\nbasis period;\\n(b) B is the total amount of all the deposits and instalment\\npayments (excluding any finance charges) payable to\\nacquire the property; and\\n(c) C is either —\\n(i) the price (excluding any finance charges) which the\\nproperty could have been purchased in the open\\nmarket on the date of its acquisition; or\\n(ii) where the Comptroller is satisfied by reason of the\\nspecial nature of the property that it is not practicable\\nto\\ndetermine\\nthe\\nprice\\nmentioned\\nin\\nsub‑paragraph (i), such other value as appears to\\nthe\\nComptroller\\nto\\nbe\\nreasonable\\nin\\nthe\\ncircumstances.\\n[27/2021]\\n(6) In this section, “IRU” has the meaning given by section 19D(1).\\n[27/2021]\\nBalancing allowances and charges for machinery or plant\\n20.—(1) Except as provided in this section, where at any time after\\nthe setting up and on or before the permanent discontinuance of a\\ntrade, profession or business, any event occurs whereby machinery or\\nIncome Tax Act 1947\\n2020 Ed.\\n530\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nplant in respect of which allowances under section 19 or 19A have\\nbeen made to a person carrying on a trade, profession or business —\\n(a) ceases to belong to that person (whether on a sale of the\\nmachinery or plant or in any other circumstances of any\\ndescription); or\\n(b) while continuing to belong to that person —\\n(i) in a case where the machinery or plant which —\\n(A) was\\nprovided\\nfor\\nany\\nresearch\\nand\\ndevelopment\\nundertaken\\nby\\nthat\\nperson\\ndirectly in Singapore or by a research and\\ndevelopment organisation on that person’s\\nbehalf in Singapore; and\\n(B) was not provided for the purpose of a trade or\\nbusiness carried on by that person,\\n(i) permanently ceases to be used for any research and\\ndevelopment undertaken by that person directly in\\nSingapore or by a research and development\\norganisation on that person’s behalf in Singapore,\\nand is not used for the purpose of a trade, profession\\nor business carried on by that person; or\\n(ii) in any other case, permanently ceases to be used for\\nthe purpose of a trade, profession or business carried\\non by that person in Singapore (whether by reason of\\nthe discontinuance of the trade, profession or\\nbusiness,\\nor\\ndiscontinuance\\nof\\nuse\\nof\\nsuch\\nmachinery or plant in a trade, profession or\\nbusiness which continues to be carried on in\\nSingapore),\\nan allowance or a charge, to be known as a balancing allowance or a\\nbalancing charge, is in the circumstances mentioned in this section to\\nbe made to or (as the case may be) on that person for the year of\\nassessment in the basis period for which that event occurs.\\n(1A) Where the property in machinery or plant passes at less than\\nthe open‑market price, then for the purpose of determining the\\nIncome Tax Act 1947\\n531\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\namount of any balancing allowance or balancing charge the event is\\ntreated as if it had given rise to sale moneys of an amount equal to the\\nopen‑market price of the machinery or plant.\\n(2) Where machinery or plant continues to belong to that person\\nafter the date on which it permanently ceases to be used for the\\npurposes of a trade, profession or business carried on by that person in\\nSingapore, or (as the case may be) for the purpose of any research and\\ndevelopment undertaken by that person directly in Singapore or by a\\nresearch and development organisation on that person’s behalf in\\nSingapore, it is deemed to have been sold on the date of permanent\\ncessation of use at the open‑market price on that date.\\n(2A) Where there are no sale, insurance, salvage or compensation\\nmoneys or where the amount of the capital expenditure of the person\\nin question on the provision of the machinery or plant still unallowed\\nas at the time of the event exceeds those moneys, a balancing\\nallowance is to be made, and the amount thereof is the amount of the\\nexpenditure still unallowed as aforesaid or (as the case may be) the\\nexcess thereof over those moneys.\\n(3) If the sale, insurance, salvage or compensation moneys exceed\\nthe amount (if any) of the said expenditure still unallowed as at the\\ntime of the event, a balancing charge is to be made, and the amount on\\nwhich it is made is an amount equal to the excess or, where the said\\namount still unallowed is nil, to those moneys.\\n(4) Despite anything in subsection (3), the amount on which a\\nbalancing charge is made on a person must not in any case exceed —\\n(a) the aggregate of the initial allowance (if any) and the\\nannual allowances (if any) made to the person under\\nsection 19 in respect of the expenditure in question; and\\n(b) the allowances (if any) made to the person under\\nsection 19A in respect of the expenditure in question.\\n[27/2021]\\n(5) Despite anything in this section but subject to subsection (6A),\\nwhere a balancing allowance or balancing charge falls to be made\\nunder subsection (1) in respect of a motor car to which section 19(3)\\napplies, the sum to be taken in lieu of the open‑market price or sale,\\ninsurance, salvage or compensation moneys for the purpose of\\nIncome Tax Act 1947\\n2020 Ed.\\n532\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\ncalculating such balancing allowance or charge is ascertained in\\naccordance with the formula\\n35; 000A\\nB\\n;\\nwhere A is the open‑market price or sale, insurance, salvage or\\ncompensation moneys in respect of the motor car; and\\nB is the capital expenditure incurred in respect of the motor\\ncar.\\n(6) Despite anything in this section, no balancing allowance may be\\nmade in respect of a motor car within the meaning of section 19(4)(a)\\nwhich is not, for any basis period after the basis period for the year of\\nassessment 1981, registered as a business service passenger vehicle\\nfor the purposes of the Road Traffic Act 1961.\\n(6A) Unless otherwise provided in this Act or the Economic\\nExpansion Incentives (Relief from Income Tax) Act 1967, where, in\\nthe basis period for any year of assessment, the trade, profession or\\nbusiness, for which purpose the machinery or plant is provided,\\nproduces income that is exempt from tax as well as income\\nchargeable with tax, and any balancing allowance or balancing\\ncharge arises to be made —\\n(a) the balancing allowance is to be made against each income\\nfor that year of assessment in such proportion as appears\\nreasonable to the Comptroller in the circumstances; and\\n(b) such proportion of the balancing charge is exempt from tax\\nas\\nappears\\nreasonable\\nto\\nthe\\nComptroller\\nin\\nthe\\ncircumstances.\\n(6B) Section 14C(4) and (5) applies in relation to the balancing\\nallowance to be made to a person under subsection (1)(b)(i) as it\\napplies in relation to the deduction of the expenditure and payments\\nreferred to in section 14C(1)(aa), (c) and (f), subject to the following\\nmodifications:\\n(a) a reference to the amount of the expenditure or payments is\\na reference to the amount of the balancing allowance;\\nIncome Tax Act 1947\\n533\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) a reference to unabsorbed losses is a reference to\\nunabsorbed allowances; and\\n(c) a reference to a specified amount of the expenditure or\\npayments is a reference to an amount computed in\\naccordance with the formula\\nA \\u0003 B\\nC ;\\nwhere A is the amount of the balancing allowance that could have\\nbeen made against the income of the person under\\nsubsection (1)(b)(i) if the income had been subject to tax\\nat the rate specified in section 43(1)(a);\\nB is the rate of tax specified in section 43(1)(a); and\\nC is —\\n(i) in a case where the concessionary income (as\\ndefined in section 14C(5)) derived by the person\\nfrom the trade or business carried on by the person is\\nsubject to tax at a single concessionary rate of tax,\\nthat rate; or\\n(ii) in a case where the concessionary income derived\\nby the person from the trade or business carried on\\nby the person is subject to tax at 2 or more\\nconcessionary rates of tax, the higher or highest of\\nthose rates.\\n(6C) Despite anything in this Act or the Economic Expansion\\nIncentives (Relief from Income Tax) Act 1967, where a balancing\\ncharge falls to be made on a person under subsection (1)(b)(i), the\\namount of the charge is deemed to be income of that person that is\\nchargeable to tax at the rate of tax specified in section 43(1)(a).\\n(7) In this section, “open‑market price”, in relation to any\\nmachinery or plant, means the price which the machinery or plant\\nwould have fetched if sold in the open market at the time of the event\\nin question; except that where the Comptroller is satisfied by reason\\nof the special nature of any machinery or plant that it is not\\nIncome Tax Act 1947\\n2020 Ed.\\n534\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\npracticable to determine an open‑market price, the Comptroller may\\nadopt such other value as appears to the Comptroller to be reasonable\\nin the circumstances.\\nReplacement of machinery or plant\\n21.—(1) Where machinery or plant in the case of which any of the\\nevents mentioned in section 20(1) has occurred is replaced by the\\nowner thereof and a balancing charge falls to be made on the owner\\nby reason of that event or, but for this section, would have fallen to be\\nmade on the owner by reason thereof, then, if by written notice to the\\nComptroller the owner so elects, this section has effect.\\n(2) If the amount on which the charge would have been made is\\ngreater than the capital expenditure on providing the new machinery\\nor plant —\\n(a) the charge is to be made only on an amount equal to the\\ndifference;\\n(b) no initial allowance, no balancing allowance and no annual\\nallowance may be made or allowed in respect of the new\\nmachinery or plant or the expenditure on the provision\\nthereof; and\\n(c) in considering whether any (and if so what) balancing\\ncharge falls to be made in respect of the expenditure on the\\nnew machinery or plant, there is deemed to have been\\nmade in respect of that expenditure an initial allowance\\nequal to the full amount of that expenditure.\\n(3) If the capital expenditure on providing the new machinery or\\nplant is equal to or greater than the amount on which the charge would\\nhave been made —\\n(a) the charge must not be made;\\n(b) the amount of any initial allowance in respect of the said\\nexpenditure is to be calculated as if the expenditure had\\nbeen reduced by the amount on which the charge would\\nhave been made;\\n(c) in considering what annual allowance is to be made in\\nrespect of the new machinery or plant, there is to be left out\\nIncome Tax Act 1947\\n535\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nof account a proportion of the machinery or plant equal to\\nthe proportion which the amount on which the charge\\nwould have been made bears to the amount of the said\\nexpenditure; and\\n(d) in considering whether any (and if so what) balancing\\nallowance or balancing charge falls to be made in respect\\nof the new machinery or plant, the initial allowance in\\nrespect thereof is deemed to have been increased by an\\namount equal to the amount on which the charge would\\nhave been made.\\n(4) This section does not apply to the provision of any new motor\\ncar for which no allowance is allowed by virtue of section 19(5).\\n(5) For the purpose of this section, where the capital expenditure\\nincurred in providing, in the basis period for the year of\\nassessment 2013 or any preceding year of assessment, a new motor\\ncar registered outside Singapore and used exclusively outside\\nSingapore exceeds $35,000, the expenditure incurred is deemed to\\nbe $35,000.\\nExpenditure on machinery or plant\\n22.—(1) Expenditure on the provision of machinery or plant\\nincludes capital expenditure on alterations to an existing building\\nincidental to the installation of that machinery or plant for the\\npurposes of the trade, profession or business.\\n[39/2017]\\n(2) Expenditure on the provision of machinery or plant excludes\\nany option premium paid under an option agreement entered into for\\nthe purpose of hedging against the cost of the acquisition of such\\nmachinery or plant.\\n[39/2017]\\nOrder of set‑off of allowances\\n22A.—(1) Where for any year of assessment the allowances consist\\nof allowances a person is entitled to or allowances made to a person\\nunder section 16, 17, 18A (repealed), 18B, 18C, 19, 19A, 19B, 19C,\\n19D or 20 for that year of assessment and any previous year of\\nassessment added to and deemed to form part of the corresponding\\nIncome Tax Act 1947\\n2020 Ed.\\n536\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nallowance for the year of assessment under section 23(1), the\\nallowances are to be deducted in the following order:\\n(a) firstly, any balance of allowance from any previous year of\\nassessment added to and deemed to form part of the\\ncorresponding allowance for the year of assessment under\\nsection 23(1); and\\n(b) secondly, any allowance for that year of assessment falling\\nto be made under section 16, 17, 18A (repealed), 18B, 18C,\\n19, 19A, 19B, 19C, 19D or 20.\\n(2) For the purposes of subsection (1)(a), the balance of allowance\\nfor the earliest year of assessment is deemed to have been deducted\\nfirst, followed by the balance of allowance for the next earliest year of\\nassessment, and so on.\\nCarry forward of allowances\\n23.—(1) Where, in any year of assessment, full effect cannot, by\\nreason of an insufficiency of gains or profits chargeable for that year\\nof assessment, be given to any allowance falling to be made under\\nsection 16, 17, 18A (repealed), 18B, 18C, 19, 19A, 19B, 19C, 19D or\\n20, then, so long as the person entitled thereto continues to carry on\\nthe trade, profession or business in respect of the gains or profits of\\nwhich the allowance falls to be made, the balance of the allowance is,\\nsubject to subsection (3), to be added to, and is deemed to form part\\nof, the corresponding allowance (if any) for the next succeeding year\\nof assessment, and, if no such corresponding allowance falls to be\\nmade for that year, is deemed to constitute the corresponding\\nallowance for that year, and so on for subsequent years of assessment.\\n(2) Where any person entitled to the allowances under sections 16,\\n17, 18B and 18C in respect of a building or structure derives income\\nfrom the letting of that building or structure, subsection (1) applies, in\\nrelation to the allowances under those sections, to the person so long\\nas the person continues to derive such income, whether or not the\\nperson is carrying on a business in respect of the letting of the\\nbuilding or structure.\\n(3) Where any allowance for any year of assessment falling to be\\nmade to any person under section 16, 17, 18A (repealed), 18B, 18C,\\nIncome Tax Act 1947\\n537\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n19, 19A, 19B, 19C, 19D or 20 is deducted against income of the\\nperson from other sources under section 35(1), transferred to a\\nclaimant company under section 37B or to a spouse under\\nsection 37C or 37E, or deducted against income for the immediate\\npreceding year of assessment under section 37D(1) or any of the\\n3 immediate preceding years of assessment under section 37D(1A),\\nthe amount of such allowance must be deducted from the balance in\\nsubsection (1).\\n[39/2017; 41/2020]\\n(4) No balance may be added to and be deemed to form part of the\\ncorresponding allowance (if any) to be given to a company under\\nsubsection\\n(1)\\nunless\\nthe\\nComptroller\\nis\\nsatisfied\\nthat\\nthe\\nshareholders of the company on the last day of the year in which\\nthe allowances arose were substantially the same as the shareholders\\nof the company on the first day of the year of assessment in which\\nsuch allowances would otherwise be available under this section and\\nsuch a balance is not allowed in any subsequent year of assessment.\\n(5) The Minister or such person as the Minister may appoint may,\\nwhere there is a substantial change in the shareholders of a company\\nand the Minister or appointed person is satisfied that such change is\\nnot for the purpose of deriving any tax benefit or obtaining any tax\\nadvantage,\\nexempt\\nthat\\ncompany\\nfrom\\nthe\\nprovisions\\nof\\nsubsection (4).\\n(6) Upon such exemption, the balance of the allowances referred to\\nin subsection (1) may be added to and be deemed to form part of the\\ncorresponding allowance to be given to that company under that\\nsubsection but only for deduction against the gains or profits derived\\nfrom the same trade or business in respect of which the allowances\\nwould have been made.\\n(7) For the purpose of subsection (4) —\\n(a) the shareholders of a company at any date are not deemed\\nto be substantially the same as the shareholders at any other\\ndate unless, on both those dates, not less than 50% of the\\ntotal number of issued shares of the company are held by or\\non behalf of the same persons;\\nIncome Tax Act 1947\\n2020 Ed.\\n538\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) shares in a company held by or on behalf of another\\ncompany are deemed to be held by the shareholders of the\\nlast mentioned company; and\\n(c) shares held by or on behalf of the trustee of the estate of a\\ndeceased shareholder or by or on behalf of the person\\nentitled to those shares as beneficiaries under the will or\\nany intestacy of a deceased shareholder are deemed to be\\nheld by that deceased shareholder.\\n(8) For the purpose of subsection (7), where any part of a share of a\\nshareholder is not fully paid up, there is to be disregarded a proportion\\nequal to\\nA\\nB ;\\nwhere A is the amount that has not been paid in respect of the\\nshare; and\\nB is the total amount payable in respect of the share.\\nSpecial provisions as to certain sales\\n24.—(1) This section, except subsection (5), has effect in relation to\\nany sale of any property where the buyer is a body of persons over\\nwhom the seller has control, or the seller is a body of persons over\\nwhom the buyer has control, or both the seller and buyer are bodies of\\npersons and some other person has control over both of them, and the\\nsale is not one to which section 33 applies.\\n(2) References in subsection (1) to a body of persons include\\nreferences to a company or a partnership.\\n(3) Where the parties to the sale by written notice to the\\nComptroller so elect —\\n(a) the like consequences ensue for the purposes of sections 16\\nto 21 as would have ensued if the property had been sold —\\n(i) in the case of an industrial building or structure, for a\\nsum equal to the residue of expenditure on the\\nconstruction or purchase (pursuant to a sale and\\npurchase\\nagreement\\nentered\\ninto\\non\\nor\\nafter\\nIncome Tax Act 1947\\n539\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n1 January 2006) of that building or structure\\nimmediately\\nbefore\\nthe\\nsale,\\ncomputed\\nin\\naccordance with section 17;\\n(ii) in the case of machinery or plant, for a sum equal to\\nthe amount of the expenditure on the provision\\nthereof still unallowed immediately before the sale,\\ncomputed in accordance with section 20;\\n(iii) in the case of an Indefeasible Right of Use, for a sum\\nequal to the amount of capital expenditure remaining\\nunallowed immediately before the sale, computed in\\naccordance with section 19D;\\n(b) despite anything in section 19, where the sale is a sale of\\nmachinery or plant, no initial allowance may be made to\\nthe buyer;\\n(c) despite anything in section 19A, where the sale is a sale of\\nmachinery or plant, the allowances provided under that\\nsection continue to be available as if no sale had taken\\nplace;\\n(d) despite anything in section 19D, where the sale is a sale of\\nan Indefeasible Right of Use, the writing‑down allowances\\nprovided under that section continue to be available as if no\\nsale had taken place; and\\n(e) despite anything in the preceding provisions of this section\\nor in sections 17, 19D and 20, such balancing charge\\n(if any) is to be made on the buyer on any event occurring\\nafter the date of the sale as would have fallen to be made on\\nthe seller if the seller had continued to own the property\\nand had done all such things and been allowed all such\\nallowances and deductions in connection therewith as were\\ndone by or allowed to the buyer.\\n[27/2021]\\n(3A) In subsection (3), “Indefeasible Right of Use” has the meaning\\ngiven by section 19D(1).\\n[27/2021]\\nIncome Tax Act 1947\\n2020 Ed.\\n540\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(4) No election may be made under subsection (3) unless before the\\nsale in the case of the seller and after the sale in the case of the buyer\\nthe property is used in the production of income chargeable under the\\nprovisions of this Act and unless the machinery or plant was not\\nleased by the seller to the buyer before the sale.\\n(4A) No election may be made under subsection (3) for the sale of\\nan industrial building or structure for which an option to purchase is\\ngranted or a sale and purchase agreement is entered into on or after\\n23 February 2010, or which is transferred on or after that date.\\n(4B) Subsection (4A) does not apply to a transfer of property to\\nwhich section 34C(8) and (9) apply.\\n(5) Where a change occurs in a partnership of persons carrying on\\nany trade, business or profession by reason of retirement or death, or\\nthe dissolution of the partnership as to one or more of the partners, or\\nthe admission of a new partner, and where no election is made under\\nsubsection (3), any property of the partnership is treated as if the\\nproperty had been sold —\\n(a) to all the remaining partners and new partners of the\\npartnership on the date the change occurs; and\\n(b) at the open‑market price.\\n(6) In subsection (5), “open‑market price” has the meaning given\\nby section 20(7).\\nSpecial provisions as to certain transfers\\n25.—(1) This section has effect in relation to any transfer of any\\nproperty without consideration as a result of —\\n(a) a conversion of a firm to a limited liability partnership\\nunder section 26 of the Limited Liability Partnerships\\nAct 2005;\\n(b) a conversion of a private company to a limited liability\\npartnership under section 27 of the Limited Liability\\nPartnerships Act 2005;\\n(c) a conversion of any business carried on by an individual\\nproprietor to one carried on by a firm, where the individual\\nIncome Tax Act 1947\\n541\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nproprietor is a partner of, and has control over, the firm\\nafter the conversion; or\\n(d) a conversion of any business carried on by a firm to one\\ncarried on by an individual proprietor, where the individual\\nproprietor was a partner of, and had control over, the firm\\nbefore the conversion,\\nand the transfer is not one to which section 33 applies.\\n[27/2021]\\n(2) For the purposes of subsection (1), “conversion” means a\\ntransfer of the property, assets, interests, rights, privileges, liabilities,\\nobligations and undertaking —\\n(a) in the case of subsection (1)(a) — of the partners of the\\nfirm relating to the business to the limited liability\\npartnership;\\n(b) in the case of subsection (1)(b) — of the private company\\nto the limited liability partnership;\\n(c) in the case of subsection (1)(c) — of the individual\\nproprietor relating to the business to the partners of the\\nfirm; or\\n(d) in the case of subsection (1)(d) — of the partners of the\\nfirm relating to the business to the individual proprietor.\\n[27/2021]\\n(3) Where the parties to the transfer of the property by written\\nnotice to the Comptroller so elect —\\n(a) the\\nlike\\nconsequences\\nensue\\nfor\\nthe\\npurposes\\nof\\nsections 19, 19A, 19D, 20 and 21 as would have ensued\\nif the property had been transferred —\\n(i) in the case of machinery or plant — for a sum equal\\nto the amount of the expenditure on the provision of\\nthe\\nmachinery\\nor\\nplant\\nremaining\\nunallowed\\nimmediately\\nbefore\\nthe\\ntransfer,\\ncomputed\\nin\\naccordance with section 20; or\\n(ii) in the case of an IRU — for a sum equal to the\\namount of capital expenditure remaining unallowed\\nIncome Tax Act 1947\\n2020 Ed.\\n542\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nimmediately\\nbefore\\nthe\\ntransfer,\\ncomputed\\nin\\naccordance with section 19D;\\n(b) despite anything in section 19, where the transfer is a\\ntransfer of machinery or plant, no initial allowance is to be\\nmade to the transferee;\\n(c) despite anything in section 19A, where the transfer is a\\ntransfer of machinery or plant, allowances provided under\\nthat section continue to be available as if no transfer had\\ntaken place;\\n(d) despite anything in section 19D, where the transfer is a\\ntransfer of an IRU, the writing‑down allowances provided\\nunder that section continue to be available as if no transfer\\nhad taken place; and\\n(e) despite anything in paragraphs (a) to (d) or in sections 19D\\nand 20, such balancing charge (if any) must be made on the\\ntransferee on any event occurring after the date of the\\ntransfer as would have fallen to be made on the transferor if\\nthe transferor had continued to own the property and had\\ndone all the things and been allowed all the allowances and\\ndeductions in connection with the property as were done by\\nor allowed to the transferee.\\n[27/2021]\\n(4) No election may be made under subsection (3) unless, before\\nthe transfer in the case of the transferor and after the transfer in the\\ncase of the transferee, the property is used in the production of income\\nchargeable under the provisions of this Act.\\n[27/2021]\\n(5) In this section —\\n“firm” and “individual proprietor” have the meanings given by\\nsection 2(1) of the Business Names Registration Act 2014;\\n“IRU” has the meaning given by section 19D(1);\\n“private company” has the meaning given by section 2(1) of the\\nLimited Liability Partnerships Act 2005.\\n[27/2021]\\nIncome Tax Act 1947\\n543\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nPART 7\\nASCERTAINMENT OF CERTAIN INCOME\\nProfits of insurers\\n26.—(1) Subject to sections 34A, 34AA and 34AAA, this section\\nhas effect despite anything to the contrary in this Act, except that\\nnothing in this section affects the chargeability to tax of any income\\nof an insurer under section 10.\\n[39/2017]\\n[Act 33 of 2022 wef 04/11/2022]\\nSeparate accounts to be maintained for various businesses\\n(2) An insurer must maintain separate accounts for income derived\\nby it from carrying on each of the following businesses:\\n(a) onshore life business;\\n(b) offshore life business;\\n(c) the business (other than the business of life assurance) of\\ninsuring and reinsuring onshore risks;\\n(d) the business (other than the business of life assurance) of\\ninsuring and reinsuring offshore risks.\\n[39/2017]\\nInsurers other than life insurers\\n(3) In the case of an insurer whether mutual or proprietary (other\\nthan a life insurer) where the gains or profits accrue in part outside\\nSingapore, the gains or profits on which tax is payable are to be\\nascertained by —\\n(a) taking the gross premiums and interest and other income\\nreceived or receivable in Singapore (less any premiums\\nreturned\\nto\\nthe\\ninsured\\nand\\npremiums\\npaid\\non\\nreinsurances);\\n(b) either —\\n(i) deducting from the balance so arrived at the net\\nincrease between the beginning and ending values of\\nthe period for which the gains or profits are\\nIncome Tax Act 1947\\n2020 Ed.\\n544\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nascertained, of the liabilities of the insurer in respect\\nof policies other than life policies, both values being\\ndetermined\\nin\\naccordance\\nwith\\nthe\\nInsurance\\nAct 1966 after deducting any liability in respect of\\nreinsurance ceded to a reinsurer; or\\n(ii) adding to the balance so arrived at the net decrease\\nbetween the beginning and ending values of the\\nperiod for which the gains or profits are ascertained,\\nof the liabilities of the insurer in respect of policies\\nother than life policies, both values being determined\\nin accordance with the Insurance Act 1966 after\\ndeducting any liability in respect of reinsurance\\nceded to a reinsurer; and\\n(c) [Deleted by Act 39 of 2017]\\n(d) from the net amount so arrived at, deducting the actual\\nlosses (less the amount recovered in respect thereof under\\nreinsurance), the distribution expenses and management\\nexpenses incurred in the production of the income referred\\nto in paragraph (a) and, in respect of a branch in Singapore,\\na fair proportion of the expenses of its head office.\\n[39/2017; 32/2019]\\n(4) For the purposes of subsection (3), in ascertaining the gains or\\nprofits derived by an insurer from carrying on the business (other than\\nthe business of life assurance) of insuring and reinsuring any risks for\\nthe purposes of any concessionary rate of tax or exemption from tax\\nprescribed by regulations made under section 43C —\\n(a) no income other than underwriting income or income from\\nsuch dividends, interest and gains or profits realised from\\nthe sale of investments as may be specified in those\\nregulations is to be included;\\n(b) income in respect of dividends, interest and gains or profits\\nrealised from the sale of investments must be apportioned\\nin such manner as may be prescribed by those regulations;\\nand\\nIncome Tax Act 1947\\n545\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) any item of expenditure not directly attributable to that\\nbusiness must be apportioned in such manner as may be\\nprescribed by those regulations.\\n[39/2017]\\n(5) For the purposes of subsection (3)(b), if, during the period for\\nwhich the gains or profits are ascertained, any insurance business\\n(excluding life business) is transferred by or to the insurer, then —\\n(a) in a case where the business is transferred by the insurer,\\nthe liabilities of the insurer immediately before the date of\\nthe transfer, in respect of policies that form part of that\\nbusiness, are to be added to the ending value mentioned in\\nthat provision; and\\n(b) in a case where the business is transferred to the insurer, the\\nliabilities of the transferor immediately before the date of\\nthe transfer, in respect of policies that form part of that\\nbusiness, are to be added to the beginning value mentioned\\nin that provision.\\n[39/2017]\\nLife insurers\\n(6) In the case of a life insurer, whether mutual or proprietary, the\\ngains or profits on which tax is payable are to be ascertained by taking\\nthe aggregate of —\\n(a) in the case of insurance funds established and maintained\\nfor Singapore policies, the amount computed in the\\nfollowing manner:\\n(i) taking the amount allocated out of the participating\\nfund by way of bonus to the participating policies in\\naccordance with section 16(7)(b) of the Insurance\\nAct 1966;\\n(ii) adding thereto the amount allocated to the surplus\\naccount of the participating fund in accordance with\\nsection 16(7)(c) of the Insurance Act 1966;\\n(iii) deducting from the balance so arrived at any receipt\\nof the participating fund which is not chargeable to\\ntax\\nand\\nadding\\nthereto\\nany\\nexpense\\nof\\nthe\\nIncome Tax Act 1947\\n2020 Ed.\\n546\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nparticipating fund which is not deductible for the\\npurposes of this Act;\\n(iv) adding thereto the amount relating to investment\\nincome earned on assets representing the balance in\\nthe surplus account of the participating fund, after\\ndeducting any receipt which is not chargeable to tax\\nand not allowing as a deduction any expense which is\\nnot deductible for the purposes of this Act;\\n(iva) adding thereto an amount allocated to the surplus\\naccount of the participating fund by the insurer in\\naccordance\\nwith\\nregulations\\nmade\\nunder\\nsection 16(8) of the Insurance Act 1966, being an\\namount that does not exceed 1/9th of the tax payable\\nat the rate under section 43(9) on the amount\\nmentioned in sub‑paragraph (i);\\n(ivb) adding thereto any amount (other than the amounts\\nmentioned\\nin\\nsub‑paragraphs\\n(iv)\\nand\\n(iva))\\nallocated to the surplus account of the participating\\nfund by the insurer in accordance with regulations\\nmade under section 16(8) of the Insurance Act 1966,\\nbut excluding any portion that is not chargeable to\\ntax;\\n(v) adding thereto the balance so arrived at the onshore\\nlife\\ninsurance\\nsurplus\\nin\\nrelation\\nto\\nthe\\nnon‑participating fund and the investment‑linked\\nfund;\\n(b) in the case of shareholders’ fund established in Singapore,\\nthe\\nincome\\ntherein\\nless\\nany\\nexpenses\\n(including\\nmanagement expenses) incurred in the production of\\nsuch income; and\\n(c) in the case of insurance funds established and maintained\\nfor offshore policies, the amount computed in the\\nfollowing manner:\\n(i) taking the amount allocated out of the participating\\nfund by way of bonus to the participating policies in\\nIncome Tax Act 1947\\n547\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\naccordance with section 16(7)(b) of the Insurance\\nAct 1966;\\n(ii) adding thereto the amount allocated to the surplus\\naccount of the participating fund in accordance with\\nsection 16(7)(c) of the Insurance Act 1966;\\n(iii) deducting from the balance so arrived at any receipt\\nof the participating fund which is not chargeable to\\ntax\\nand\\nadding\\nthereto\\nany\\nexpense\\nof\\nthe\\nparticipating fund which is not deductible for the\\npurposes of this Act;\\n(iv) adding thereto the amount relating to investment\\nincome earned on assets representing the balance in\\nthe surplus account of the participating fund, after\\ndeducting any receipt which is not chargeable to tax\\nand not allowing as a deduction any expense which is\\nnot deductible for the purposes of this Act;\\n(iva) adding thereto an amount allocated to the surplus\\naccount of the participating fund by the insurer in\\naccordance\\nwith\\nregulations\\nmade\\nunder\\nsection 16(8) of the Insurance Act 1966, being an\\namount that does not exceed 1/9th of the tax payable\\nat the rate under section 43(9) on the amount\\nmentioned in sub‑paragraph (i);\\n(ivb) adding thereto any amount (other than the amounts\\nmentioned in sub‑paragraphs (iv) and (iva)) allocated\\nto the surplus account of the participating fund by the\\ninsurer in accordance with regulations made under\\nsection 16(8) of the Insurance Act 1966, but\\nexcluding any portion that is not chargeable to tax;\\n(v) adding thereto the offshore life insurance surplus in\\nrelation to the non‑participating fund and the\\ninvestment‑linked fund.\\n[39/2017; 27/2021]\\n(7) Despite subsection (6), where a life insurer is approved under\\nsection 43C before 1 June 2017 and its income is subject to tax at the\\nconcessionary rate by regulations made under section 43C(1)(a), the\\nIncome Tax Act 1947\\n2020 Ed.\\n548\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nfollowing paragraphs apply for the purposes of ascertaining that\\nincome:\\n(a) only such part of the following income as may be specified\\nin those regulations is to be included:\\n(i) the amount in relation to insurance funds established\\nand maintained for offshore policies, computed in\\nthe following manner:\\n(A) taking\\nthe\\namount\\nallocated\\nout\\nof\\nthe\\nparticipating fund by way of bonus to the\\nparticipating\\npolicies\\nin\\naccordance\\nwith\\nsection 16(7)(b) of the Insurance Act 1966;\\n(B) adding thereto the amount allocated to the\\nsurplus account of the participating fund in\\naccordance\\nwith\\nsection\\n16(7)(c)\\nof\\nthe\\nInsurance Act 1966;\\n(C) deducting from the balance so arrived at any\\nreceipt of the participating fund which is not\\nchargeable to tax and adding thereto any\\nexpense of the participating fund which is not\\ndeductible for the purposes of this Act;\\n(D) adding\\nthereto\\nthe\\namount\\nrelating\\nto\\ninvestment\\nincome\\nearned\\non\\nassets\\nrepresenting\\nthe\\nbalance\\nin\\nthe\\nsurplus\\naccount\\nof\\nthe\\nparticipating\\nfund,\\nafter\\ndeducting any receipt which is not chargeable\\nto tax and not allowing as a deduction any\\nexpense which is not deductible for the\\npurposes of this Act;\\n(DA) adding thereto an amount allocated to the\\nsurplus account of the participating fund by\\nthe insurer in accordance with regulations\\nmade under section 16(8) of the Insurance\\nAct 1966, being an amount that does not\\nexceed 1/9th of the tax payable at the rate\\nIncome Tax Act 1947\\n549\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nunder section 43(9) on the amount mentioned\\nin sub‑paragraph (A);\\n(DB) adding thereto any amount (other than the\\namounts mentioned in sub‑paragraphs (D) and\\n(DA)) allocated to the surplus account of the\\nparticipating fund by the insurer in accordance\\nwith regulations made under section 16(8) of\\nthe Insurance Act 1966, but excluding any\\nportion that is not chargeable to tax;\\n(E) adding thereto the offshore life insurance\\nsurplus in relation to the non‑participating\\nfund and the investment‑linked fund; and\\n(ii) the income of the shareholders’ fund established in\\nSingapore as is attributable to the offshore life\\nbusiness; and\\n(b) the income referred to in paragraph (a) and any item of\\nexpenditure not directly incurred in the production of such\\nincome must be apportioned in such manner as may be\\nprescribed by those regulations.\\n[39/2017; 27/2021]\\n(7A) Despite subsection (6), where a life insurer is approved under\\nsection 43C on or after 1 June 2017 and its income is subject to tax at\\na concessionary rate by regulations made under section 43C(1)(aa),\\nthe following paragraphs apply for the purposes of ascertaining that\\nincome:\\n(a) only such part of the following income relating to\\nreinsurance policies\\nas\\nmay be\\nspecified\\nin\\nthose\\nregulations may be included:\\n(i) the onshore life insurance surplus, and offshore life\\ninsurance surplus (as the case may be), of the insurer;\\n(ii) the income of the shareholders’ fund established in\\nSingapore attributable to the insurer’s onshore life\\nreinsurance business and offshore life reinsurance\\nbusiness, as the case may be;\\nIncome Tax Act 1947\\n2020 Ed.\\n550\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) the income in paragraph (a) and any item of expenditure\\nnot directly incurred in the production of such income must\\nbe apportioned in the manner prescribed (if any) by those\\nregulations.\\n[39/2017]\\n(8) In ascertaining the gains or profits of a life insurer whether\\nmutual or proprietary —\\n(a) the Comptroller must determine the manner and extent to\\nwhich —\\n(i) any allowances under section 19, 19A, 20, 21, 22 or\\n23 and expenses and donations allowable under this\\nAct are to be deducted; and\\n(ii) any losses incurred by the insurer may be deducted\\nunder section 37;\\n(aa) allowances under section 19, 19A, 20, 21, 22 or 23 or\\nlosses or donations allowable under section 37 may be\\ndeducted against any part of the income of the insurer from\\na participating fund that is apportioned to policyholders in\\naccordance with regulations made under section 43(9) or\\n43C if, and only if, the allowances, losses or donations\\nare —\\n(i) allowances, losses or donations in respect of such\\nincome; or\\n(ii) allowances, losses or donations in respect of any\\nincome of the insurer from another participating fund\\nthat\\nis\\nalso\\napportioned\\nto\\npolicyholders\\nin\\naccordance with those regulations;\\n(b) the allowances under section 19, 19A, 20, 21, 22 or 23 or\\nthe losses or donations under section 37 in respect of such\\npart of the income of the insurer from a participating fund\\nas is apportioned to policyholders of the insurer in\\naccordance with regulations made under section 43(9) or\\n43C in any year of assessment —\\n(i) is only available for deduction against any part of the\\ninsurer’s income from any participating fund that is\\nIncome Tax Act 1947\\n551\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\napportioned to policyholders in accordance with\\nregulations made under section 43(9) or 43C for that\\nyear of assessment, as the case may be; and\\n(ii) the balance of such allowances, losses or donations\\nunder sub‑paragraph (i) may, subject to section 23 or\\n37 (as the case may be), only be deducted against any\\npart of the insurer’s income from any participating\\nfund\\nthat\\nis\\napportioned\\nto\\npolicyholders\\nin\\naccordance\\nwith\\nregulations\\nmade\\nunder\\nsection 43(9) or 43C, for any subsequent year of\\nassessment;\\n(c) section 37A applies, with the necessary modifications, in\\nrelation to the deduction of allowances under section 19,\\n19A, 20, 21, 22 or 23 or the losses or donations under\\nsection 37 in respect of such part of the income of the\\ninsurer (being a company) as is subject to tax at the rate of\\ntax under section 43(1)(a) and of such part of the income of\\nthe insurer (being a company) as is apportioned to the\\nshareholders of the insurer in accordance with regulations\\nmade under section 43C; and for the purpose of such\\napplication any reference in section 37A to income of a\\ncompany subject to tax at a lower rate of tax or income of\\nthe company subject to tax at a lower rate of tax (as the case\\nmay be) is a reference to such part of the income of the\\ninsurer as is apportioned to the shareholders of the insurer\\nin accordance with regulations made under section 43C;\\nand\\n(d) in a case where, immediately before the life insurer ceases\\nbusiness permanently without transferring the business to\\nany person in Singapore, there is an amount remaining in\\nthe participating fund which is not allocated by way of\\nbonus to any participating policy, the Comptroller may\\nmake such adjustment to the tax liability of the life insurer\\nas the Comptroller thinks fit.\\n[27/2021]\\nIncome Tax Act 1947\\n2020 Ed.\\n552\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nComposite insurers\\n(9) In the case of an insurer carrying on life insurance business in\\nconjunction with any other insurance business, the assessment of the\\ngains or profits on which tax is payable must be made in one sum, but\\nthe gains or profits arising from the life insurance business are to be\\ncomputed in accordance with subsections (6), (7), (7A) and (8) as if\\nsuch life insurance business were a separate business from the other\\ninsurance business carried on by the insurer.\\n[39/2017]\\n(10) For the purposes of this section, the Minister may make\\nregulations —\\n(a) to provide for such transitional, supplementary and\\nconsequential matters as the Minister may consider\\nnecessary or expedient; and\\n(b) generally to give effect to or for carrying out the purposes\\nof this section.\\n(11) Despite the amendment of this section by the Income Tax\\n(Amendment) Act 2007, section 26 in force immediately before the\\namendment applies to the income of an insurer derived before the\\nyear of assessment 2006.\\nDefinitions\\n(12) In this section, and section 43C (except in relation to the\\ndefinition of “insurer”) —\\n“accident and health policy” has the meaning given by the\\nInsurance Act 1966;\\n“income of the shareholders’ fund” means —\\n(a) gains or profits on the sale of investments of the\\nshareholders’ fund, whether derived from Singapore\\nor elsewhere; and\\n(b) investment\\nincome\\nand\\nother\\nincome\\nof\\nthe\\nshareholders’\\nfund\\nderived\\nfrom\\nSingapore\\nor\\nreceived in Singapore from outside Singapore;\\nIncome Tax Act 1947\\n553\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“insurer” means —\\n(a) a company licensed under the Insurance Act 1966 to\\ncarry on insurance business in Singapore; or\\n(b) a person (including a partnership) permitted under\\nthe Insurance Act 1966 to carry on insurance\\nbusiness in Singapore under a foreign insurer\\nscheme;\\n“investment‑linked\\nfund”\\nmeans\\nan\\ninsurance\\nfund\\nfor\\ninvestment‑linked\\npolicies\\nestablished\\nand\\nmaintained\\nunder section 16(2) of the Insurance Act 1966;\\n“investment‑linked policies”, “non‑participating policies” and\\n“participating policies” have the meanings given by the\\nFirst Schedule to the Insurance Act 1966;\\n“life insurance fund” means the insurance fund established and\\nmaintained by an insurer under section 16(1) of the Insurance\\nAct 1966 for its life business;\\n“life policy” has the meaning given by the Insurance Act 1966;\\n“non‑participating fund” means an insurance fund established\\nand maintained under section 16(3) of the Insurance Act 1966\\nwhich comprises wholly of non‑participating policies;\\n“offshore life business” means the business of insuring or\\nreinsuring the liability of a life policy, or accident and health\\npolicy, of any life insurance fund, not being a Singapore\\npolicy within the meaning of the Insurance Act 1966;\\n“offshore\\nlife\\ninsurance\\nsurplus”,\\nin\\nrelation\\nto\\nthe\\nnon‑participating fund and the investment‑linked fund of\\nan insurer, means the amount ascertained —\\n(a) by taking the aggregate of —\\n(i) the gross premiums (including consideration\\npaid or payable for the purchase of annuities)\\nfrom offshore non‑participating and offshore\\ninvestment‑linked policies of any life insurance\\nfund (less any premiums returned to the insured\\nand premiums paid or payable on reinsurance);\\nIncome Tax Act 1947\\n2020 Ed.\\n554\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(ii) the net decrease between the beginning and\\nending values of the policy liabilities of any life\\ninsurance\\nfund\\nrelating\\nto\\noffshore\\nnon‑participating\\nand\\noffshore\\ninvestment‑linked policies of the period for\\nwhich the gains or profits are ascertained, both\\nvalues being determined in accordance with the\\nInsurance Act 1966 and after deducting any\\nliability in respect of reinsurance ceded to a\\nreinsurer; and\\n(iii) the investment income and gains or profits\\nderived from the sale of investments and other\\nincome, whether derived from Singapore or\\nelsewhere, of any life insurance fund relating to\\noffshore\\nnon‑participating\\nand\\noffshore\\ninvestment‑linked policies; and\\n(b) by deducting from that aggregate —\\n(i) distribution\\nexpenses\\nand\\nmanagement\\nexpenses incurred in the production of the\\nincome referred to in paragraph (a) and, in\\nrespect of a branch in Singapore, a fair\\nproportion of the expenses of its head office;\\n(ii) policy moneys paid or payable in respect of\\noffshore\\nnon‑participating\\nand\\noffshore\\ninvestment‑linked policies (less any amount\\nrecovered or recoverable in respect thereof\\nunder reinsurance);\\n(iii) moneys paid or payable on the surrender of\\noffshore\\nnon‑participating\\nand\\noffshore\\ninvestment‑linked policies; and\\n(iv) the net increase between the beginning and\\nending values of the policy liabilities of any life\\ninsurance\\nfund\\nrelating\\nto\\noffshore\\nnon‑participating\\nand\\noffshore\\ninvestment‑linked policies of the period for\\nwhich the gains or profits are ascertained, both\\nIncome Tax Act 1947\\n555\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nvalues being determined in accordance with the\\nInsurance Act 1966 and after deducting any\\nliability in respect of reinsurance ceded to a\\nreinsurer;\\n“offshore life insurance surplus”, in relation to an insurer under\\nsubsection (7A)(a)(i), means the amount ascertained by\\ntaking the following steps:\\n(a) add the following:\\n(i) the gross premiums (including consideration\\npaid or payable for the purchase of annuities)\\nfrom its offshore non‑participating reinsurance\\npolicies of any life insurance fund (less any\\npremiums\\nreturned\\nto\\nthe\\ninsured\\nand\\npremiums paid or payable on reinsurance);\\n(ii) the net decrease between the beginning and\\nending values of the policy liabilities of the part\\nof any life insurance fund relating to its\\noffshore\\nnon‑participating\\nreinsurance\\npolicies for the period for which the gains or\\nprofits are ascertained, both values being\\ndetermined in accordance with the Insurance\\nAct 1966 and after deducting any liability in\\nrespect of reinsurance ceded to a reinsurer;\\n(iii) the investment income and gains or profits\\nderived from the sale of investments and other\\nincome, whether derived from Singapore or\\nelsewhere, of the part of any life insurance fund\\nrelating\\nto\\nits\\noffshore\\nnon‑participating\\nreinsurance policies;\\n(b) subtract from the total under paragraph (a), all of the\\nfollowing:\\n(i) distribution\\nexpenses\\nand\\nmanagement\\nexpenses incurred in the production of the\\nincome in paragraph (a) and, in respect of a\\nIncome Tax Act 1947\\n2020 Ed.\\n556\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nbranch in Singapore, a fair proportion of the\\nexpenses of its head office;\\n(ii) policy moneys paid or payable in respect of its\\noffshore non‑participating reinsurance policies\\n(less any amount recovered or recoverable in\\nrespect of those policies under reinsurance);\\n(iii) moneys paid or payable on the surrender of its\\noffshore\\nnon‑participating\\nreinsurance\\npolicies;\\n(iv) the net increase between the beginning and\\nending values of the policy liabilities of the part\\nof any life insurance fund relating to its\\noffshore\\nnon‑participating\\nreinsurance\\npolicies for the period for which the gains or\\nprofits are ascertained, both values being\\ndetermined in accordance with the Insurance\\nAct 1966 and after deducting any liability in\\nrespect of reinsurance ceded to a reinsurer;\\n“offshore life reinsurance business” means the business of\\nreinsuring the liability of a life policy, or an accident and\\nhealth policy, of any life insurance fund, not being a\\nSingapore policy within the meaning of the Insurance\\nAct 1966;\\n“offshore risk” means a risk or liability that is insured by a\\npolicy of any general insurance fund established and\\nmaintained under the Insurance Act 1966, not being a\\nSingapore policy within the meaning of that Act;\\n“onshore life business” means the business of insuring or\\nreinsuring the liability of a life policy, or accident and health\\npolicy, of any life insurance fund, being a Singapore policy\\nwithin the meaning of the Insurance Act 1966;\\n“onshore life insurance surplus”, in relation to an insurer under\\nsubsection (7A)(a)(i), means the amount ascertained by\\ntaking the following steps:\\nIncome Tax Act 1947\\n557\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(a) add the following:\\n(i) the gross premiums (including consideration\\npaid or payable for the purchase of annuities)\\nfrom\\nits\\nSingapore\\nnon‑participating\\nreinsurance policies of any life insurance\\nfund (less any premiums returned to the\\ninsured and premiums paid or payable on\\nreinsurance);\\n(ii) the net decrease between the beginning and\\nending values of the policy liabilities of the part\\nof any life insurance fund relating to its\\nSingapore\\nnon‑participating\\nreinsurance\\npolicies for the period for which the gains or\\nprofits are ascertained, both values being\\ndetermined in accordance with the Insurance\\nAct 1966 and after deducting any liability in\\nrespect of reinsurance ceded to a reinsurer;\\n(iii) the investment income and gains or profits\\nderived from the sale of investments and other\\nincome, whether derived from Singapore or\\nelsewhere, of the part of any life insurance fund\\nrelating to its Singapore non‑participating\\nreinsurance policies;\\n(b) subtract from the total under paragraph (a), all of the\\nfollowing:\\n(i) distribution\\nexpenses\\nand\\nmanagement\\nexpenses incurred in the production of the\\nincome in paragraph (a) and, in respect of a\\nbranch in Singapore, a fair proportion of the\\nexpenses of its head office;\\n(ii) policy moneys paid or payable in respect of its\\nSingapore\\nnon‑participating\\nreinsurance\\npolicies\\n(less\\nany\\namount\\nrecovered\\nor\\nrecoverable in respect of those policies under\\nreinsurance);\\nIncome Tax Act 1947\\n2020 Ed.\\n558\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(iii) moneys paid or payable on the surrender of its\\nSingapore\\nnon‑participating\\nreinsurance\\npolicies;\\n(iv) the net increase between the beginning and\\nending values of the policy liabilities of the part\\nof any life insurance fund relating to its\\nSingapore\\nnon‑participating\\nreinsurance\\npolicies for the period for which the gains or\\nprofits are ascertained, both values being\\ndetermined in accordance with the Insurance\\nAct 1966 and after deducting any liability in\\nrespect of reinsurance ceded to a reinsurer;\\n“onshore\\nlife\\ninsurance\\nsurplus”,\\nin\\nrelation\\nto\\nthe\\nnon‑participating fund and the investment‑linked fund of\\nan insurer, means the amount ascertained by taking the\\nfollowing steps:\\n(a) add the following:\\n(i) the gross premiums (including consideration\\npaid or payable for the purchase of annuities)\\nfrom\\nSingapore\\nnon‑participating\\nand\\nSingapore investment‑linked policies of any\\nlife insurance fund (less any premiums returned\\nto the insured and premiums paid or payable on\\nreinsurance);\\n(ii) the net decrease between the beginning and\\nending values of the policy liabilities of any life\\ninsurance\\nfund\\nrelating\\nto\\nSingapore\\nnon‑participating\\nand\\nSingapore\\ninvestment‑linked policies for the period for\\nwhich the gains or profits are ascertained, both\\nvalues being determined in accordance with the\\nInsurance Act 1966 and after deducting any\\nliability in respect of reinsurance ceded to a\\nreinsurer;\\n(iii) the investment income and gains or profits\\nderived from the sale of investments and other\\nIncome Tax Act 1947\\n559\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nincome, whether derived from Singapore or\\nelsewhere, of any life insurance fund relating to\\nSingapore non‑participating and Singapore\\ninvestment‑linked policies;\\n(b) subtract from the total under paragraph (a), all of the\\nfollowing:\\n(i) distribution\\nexpenses\\nand\\nmanagement\\nexpenses incurred in the production of the\\nincome in paragraph (a) and, in respect of a\\nbranch in Singapore, a fair proportion of the\\nexpenses of its head office;\\n(ii) policy moneys paid or payable in respect of\\nSingapore non‑participating and Singapore\\ninvestment‑linked policies (less any amount\\nrecovered or recoverable in respect of those\\npolicies under reinsurance);\\n(iii) moneys paid or payable on the surrender of\\nSingapore non‑participating and Singapore\\ninvestment‑linked policies;\\n(iv) the net increase between the beginning and\\nending values of the policy liabilities of any life\\ninsurance\\nfund\\nrelating\\nto\\nSingapore\\nnon‑participating\\nand\\nSingapore\\ninvestment‑linked policies for the period for\\nwhich the gains or profits are ascertained, both\\nvalues being determined in accordance with the\\nInsurance Act 1966 and after deducting any\\nliability in respect of reinsurance ceded to a\\nreinsurer;\\n“onshore life reinsurance business” means the business of\\nreinsuring the liability of —\\n(a) a life policy of any life insurance fund; or\\n(b) an accident and health policy of any life insurance\\nfund,\\nIncome Tax Act 1947\\n2020 Ed.\\n560\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nbeing a Singapore policy within the meaning of the Insurance\\nAct 1966;\\n“onshore risk” means a risk or liability that is insured by a policy\\nof a general insurance fund established and maintained under\\nthe Insurance Act 1966, being a Singapore policy within the\\nmeaning of that Act;\\n“participating fund” means an insurance fund established and\\nmaintained under section 16(3) of the Insurance Act 1966\\nwhich comprises wholly or partly of participating policies;\\n“policy liabilities”, in relation to the non‑participating fund and\\nthe investment‑linked fund of an insurer, means liabilities in\\nrespect of policies for which the non‑participating fund and\\ninvestment‑linked fund are established and maintained under\\nsection 16 of the Insurance Act 1966, but excludes liabilities\\nceded to a reinsurer;\\n“policy moneys” has the meaning given by the Insurance\\nAct 1966;\\n“reinsurer” has the meaning given by section 2 of the Insurance\\nAct 1966;\\n“surplus account”, in relation to a participating fund of a life\\ninsurer,\\nmeans\\nthe\\nsurplus\\naccount\\nestablished\\nand\\nmaintained\\nunder\\nsection\\n16(7)(a)\\nof\\nthe\\nInsurance\\nAct 1966 as part of that fund.\\n[39/2017; 32/2019]\\n(13) For the purposes of paragraphs (a)(ii) and (b)(iv) of both\\ndefinitions of “onshore life insurance surplus”, and paragraphs (a)(ii)\\nand (b)(iv) of both definitions of “offshore life insurance surplus” in\\nsubsection (12), if, during the period for which the gains or profits are\\nascertained, any life insurance business is transferred by or to the\\ninsurer, then —\\n(a) in a case where the business is transferred by the insurer,\\nthe liabilities of the insurer immediately before the date of\\nthe transfer, in respect of policies that form part of that\\nbusiness, are to be added to the ending value mentioned in\\neach of those provisions; and\\nIncome Tax Act 1947\\n561\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) in a case where the business is transferred to the insurer, the\\nliabilities of the transferor immediately before the date of\\nthe transfer, in respect of policies that form part of that\\nbusiness, are to be added to the beginning value mentioned\\nin each of those provisions.\\n[39/2017]\\nAscertainment of income of member of Lloyd’s syndicate\\n26A.—(1) Where a business of insuring and reinsuring risks is\\ncarried on by any member of Lloyd’s through a syndicate formed to\\ncarry on the business in Singapore —\\n(a) the income of the member of Lloyd’s from the syndicate in\\nthe basis period for any year of assessment is deemed to be\\nthe share to which the member was entitled during that\\nperiod in the income of the syndicate; and\\n(b) the statutory income of the member of Lloyd’s from the\\nsyndicate is to be computed in accordance with section 35\\nby treating the member’s share of the income of the\\nsyndicate as if it were income of a trade, business,\\nprofession or vocation carried on or exercised by the\\nmember.\\n(2) Sections 36 (as it applies by the operation of section 36C(1)) and\\n36C do not apply to any Lloyd’s Scottish limited partnership carrying\\non a business of insuring and reinsuring risks in Singapore, and\\nsections 35 and 43(1)(c) apply, with the necessary modifications, to\\nsuch partnership as if it were a person (other than a company or an\\nindividual) not resident in Singapore.\\n(2A) Sections 36 (as it applies by the operation of section 36A(2))\\nand 36A do not apply to any Lloyd’s limited liability partnership\\ncarrying on a business of insuring and reinsuring risks in Singapore,\\nand sections 35 and 43(1)(c) apply, with the necessary modifications,\\nto such partnership as if it were a person (other than a company or an\\nindividual) not resident in Singapore.\\n[32/2019]\\nIncome Tax Act 1947\\n2020 Ed.\\n562\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(2B) For the year of assessment 2015 and every subsequent year of\\nassessment, section 37A applies, with the necessary modifications,\\nto —\\n(a) any Lloyd’s limited liability partnership; or\\n(b) any Lloyd’s Scottish limited partnership,\\ncarrying on a business of insuring and reinsuring risks in Singapore\\nwhose income for that year of assessment is subject to tax at different\\nrates, as that section applies to a company whose income for any year\\nof assessment is subject to tax at different rates.\\n[37/2014]\\n(2C) To avoid doubt, subsection (2B) applies to any amount of\\nallowance, loss or donation of the Lloyd’s limited liability partnership\\nor the Lloyd’s Scottish limited partnership carried forward to the year\\nof assessment from an earlier year of assessment.\\n[37/2014]\\n(3) Section 53 applies, with the necessary modifications, to any\\nnon‑resident member of Lloyd’s carrying on a business of insuring\\nand reinsuring risks through any syndicate formed to carry on that\\nbusiness in Singapore as that section applies to a person not resident\\nin Singapore.\\n(4) The tax chargeable for any year of assessment on the income of\\nany non‑resident member of Lloyd’s carrying on a business of\\ninsuring and reinsuring risks through all syndicates formed to carry\\non the business in Singapore of which the non‑resident member is a\\nmember must be aggregated with that of all other non‑resident\\nmembers of Lloyd’s of those syndicates, and is assessable in the name\\nof the agent.\\n(5) The agent must —\\n(a) when required by the Comptroller by notice in the Gazette\\nunder\\nsection\\n62(1)\\nor\\nby\\nwritten\\nnotice\\nunder\\nsection 62(3), make a return of income for the year of\\nassessment specified in the notice and furnish such\\nparticulars as may be required for the purpose of\\nascertaining the income (if any) for which any member\\nof Lloyd’s carrying on a business of insuring and\\nIncome Tax Act 1947\\n563\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nreinsuring risks through any syndicate formed to carry on\\nthe business in Singapore, is chargeable to tax; and\\n(b) if a return is not made under paragraph (a) for any year of\\nassessment, furnish to the Comptroller an estimate of the\\naggregate\\namount\\nof\\nchargeable\\nincome\\nof\\nevery\\nnon‑resident member of Lloyd’s carrying on a business\\nof insuring and reinsuring risks through any syndicate\\nformed to carry on the business in Singapore, within\\n3 months after the end of the accounting period relating to\\nthat year of assessment of that member, or such extended\\ntime as the Comptroller may allow.\\n[Act 33 of 2022 wef 04/11/2022]\\n(6) In this section —\\n“agent” means Lloyd’s of London (Asia) Pte Ltd or such other\\nperson as the Comptroller may determine;\\n“Council of Lloyd’s” means the Council of Lloyd’s established\\nby the Lloyd’s Act 1982 of the United Kingdom;\\n“Lloyd’s” means the society of underwriters known in the\\nUnited Kingdom as Lloyd’s and incorporated by the Lloyd’s\\nAct 1871 of the United Kingdom;\\n“Lloyd’s limited liability partnership” means any limited\\nliability partnership formed under the law of any part of\\nthe United Kingdom which is a member of Lloyd’s;\\n“Lloyd’s\\nScottish\\nlimited\\npartnership”\\nmeans\\na\\nlimited\\npartnership formed under the laws of the Scotland which is\\na member of Lloyd’s;\\n“member of Lloyd’s” means a person admitted to membership\\nof Lloyd’s as an underwriting member and includes, where\\nthe context so requires, any person who has ceased to be a\\nmember of Lloyd’s and any administrator, administrative\\nreceiver, committee, curator bonis, executor, liquidator,\\nmanager, personal representative, supervisor or trustee in\\nbankruptcy, or any other person by law entitled or bound to\\nadminister the affairs of the member or former member\\nconcerned;\\nIncome Tax Act 1947\\n2020 Ed.\\n564\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“syndicate” means a member of Lloyd’s or a group of members\\nof Lloyd’s underwriting insurance business at Lloyd’s\\nthrough the agency of a Lloyd’s underwriting agent to\\nwhich member or group a particular syndicate number is\\nassigned by or under the authority of the Council of Lloyd’s.\\nProfits of non‑resident shipowner or charterer\\n27.—(1) Where a non‑resident person carries on the business of\\nshipowner or charterer, the income on which tax is payable is to be\\nascertained as provided in this section.\\n(2) Where, for any period, the non‑resident person produces a\\ncertificate complying with subsection (3) —\\n(a) the profits accruing in Singapore from the business for that\\nperiod are deemed to be a sum bearing the same ratio to the\\nsums receivable in respect of the carriage of passengers,\\nmail, livestock and goods shipped in Singapore as the total\\nprofits for that period bear to the total sum receivable by\\nthe non‑resident person in respect of the carriage of\\npassengers, mail, livestock and goods, as shown by the\\ncertificate; and\\n(b) the depreciation allowable against such profits is similarly\\ndeemed to be a sum bearing the same ratio to the sums\\nreceivable in respect of the carriage of passengers, mail,\\nlivestock and goods shipped in Singapore as the total\\ndepreciation for that period bears to the total sum\\nreceivable by the non‑resident person in respect of the\\ncarriage of passengers, mail, livestock and goods, as shown\\nby the certificate.\\n(3) The certificate referred to in subsection (2) —\\n(a) must be one issued by or on behalf of the income tax\\nauthority of the place of residence of the non‑resident\\nperson;\\n(b) is acceptable for the purposes of this section only where the\\nComptroller is satisfied that the relevant income tax\\nauthority —\\nIncome Tax Act 1947\\n565\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(i) computes and assesses the full profits of the\\nnon‑resident person from the non‑resident person’s\\nshipping business on a basis not materially different\\nfrom the basis of assessment provided by this Act for\\nthe assessment of a resident of Singapore carrying on\\na similar business; and\\n(ii) accepts any certificate issued by the Comptroller for\\nthe purpose of computing the profits derived by a\\nresident of Singapore from carrying on the business\\nof a shipowner or charterer and assesses the income\\nof that resident on the basis of and without making\\nany adjustment to the profits or loss or the allowance\\nfor depreciation as stated in the certificate issued by\\nthe Comptroller and in the same manner as the\\nincome of the non‑resident person is assessed under\\nsubsection (2); and\\n(c) must contain, in respect of the relevant accounting period,\\nthe following information:\\n(i) the ratio of the profits or, where there are no profits,\\nof the loss, as computed for the purposes of income\\ntax by that authority, without making any allowance\\nby way of depreciation, to the total sum receivable in\\nrespect of the carriage of passengers, mail, livestock\\nand goods;\\n(ii) the ratio of the allowance for depreciation as\\ncomputed by that authority to that total sum\\nreceivable in respect of the carriage of passengers,\\nmail, livestock and goods.\\n(4) Where, for any period, a non‑resident person does not, for any\\nreason, produce a certificate complying with subsection (3), the\\nprofits accruing in Singapore are deemed to be a sum equal to 5% of\\nthe full sum receivable on account of the carriage of passengers, mail,\\nlivestock and goods shipped in Singapore.\\n(5) Where\\na\\nnon‑resident\\nperson\\nhas\\nbeen\\nassessed\\nunder\\nsubsection (4) because a certificate had not been issued at the time\\nof assessment, the non‑resident person is entitled, on the subsequent\\nIncome Tax Act 1947\\n2020 Ed.\\n566\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nproduction of such a certificate to claim at any time within 2 years\\nafter the end of such year of assessment, or such further time as the\\nComptroller may consider reasonable in the circumstances, that the\\nnon‑resident person’s liability to tax for the year be determined on the\\nbasis provided by subsection (2).\\n(6) Where the Comptroller decides that the call of a ship (within the\\nmeaning of section 2(1) of the Merchant Shipping Act 1995)\\nbelonging to a particular non‑resident shipowner or charterer at a\\nport in Singapore is casual and that further calls by that ship or others\\nin the same ownership are improbable, this section does not apply to\\nthe profits of that ship and no tax is chargeable on them.\\n[2/2016]\\n(7) Despite anything in subsections (1) to (6), if in computing the\\nprofits derived by a resident in Singapore from carrying on the\\nbusiness of a shipowner or charterer, the tax authority of a foreign\\ncountry determines such profits to be an amount which exceeds 5% of\\nthe full sum receivable on account of the carriage of passengers, mail,\\nlivestock and goods shipped in that foreign country, the Minister may\\nif he or she thinks fit direct that, in computing the profits derived in\\nSingapore by a non‑resident shipowner or charterer who is resident in\\nthat foreign country, the Comptroller must determine the amount of\\nsuch profits in such manner as may be substantially similar to that\\nadopted by the tax authority of that foreign country.\\nProfits of non‑resident air transport and cable undertakings\\n28. Where a non‑resident person carries on the business of air\\ntransport or of transmission of messages by cable or by any form of\\nwireless apparatus, the non‑resident person is assessable to tax as if\\nthe non‑resident person were a non‑resident shipowner and section 27\\napplies, with the necessary modifications, to the computation of the\\ngains or profits of the business.\\n29. [Repealed by Act 19 of 2013]\\n30. [Repealed by Act 19 of 2013]\\nIncome Tax Act 1947\\n567\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nIncome arising from settlements\\n31.—(1) Where under the terms of any settlement and during the\\nlife of the settlor any income, or assets representing it, will or may\\nbecome payable or applicable to or for the benefit of any relative of\\nthe settlor and at the commencement of the year of assessment such\\nrelative is unmarried and has not attained 21 years of age, such\\nincome or assets are deemed to be income of the settlor and not\\nincome of any other person.\\n(2) If and so long as the terms of any settlement are such that —\\n(a) any person has or may have power, whether immediately\\nor in the future, and whether with or without the consent of\\nany other person, to revoke or otherwise determine the\\nsettlement or any provision thereof; and\\n(b) in the event of the exercise of the power, the settlor or the\\nwife or husband of the settlor will or may become\\nbeneficially entitled to the whole or any part of the\\nproperty then comprised in the settlement, or of the income\\narising from the whole or any part of the property so\\ncomprised,\\nall income arising under the settlement from the property comprised\\nin the settlement is deemed to be income of the settlor and not income\\nof any other person.\\n(3) Subsection (2) does not apply by reason only that the settlor or\\nthe wife or husband of the settlor will or may become beneficially\\nentitled to any income or property relating to the interest of any\\nbeneficiary under the settlement in the event that the beneficiary\\nshould die before him or her.\\n(4) Where in any year of assessment the settlor or any relative of the\\nsettlor or any person under the direct or indirect control of the settlor\\nor of any of the settlor’s relatives, whether by borrowing or otherwise,\\nmakes use of any income arising or of any accumulated income which\\nhas arisen under a settlement to which he or she is not entitled\\nthereunder, then the amount of such income or accumulated income\\nso made use of is deemed to be income of the settlor for that year of\\nassessment and not income of any other person.\\nIncome Tax Act 1947\\n2020 Ed.\\n568\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(5) Where under the terms of any settlement to which this section\\napplies, any tax is charged on and paid by the person by whom the\\nsettlement is made, that person is entitled to recover from any trustee\\nor other person to whom income is paid under the settlement the\\namount of the tax so paid, and for that purpose to require the\\nComptroller to furnish a certificate specifying the amount of tax so\\npaid; and any certificate so furnished is conclusive evidence of the\\nfacts appearing therein.\\n(6) If any question arises as to the amount of any payment of\\nincome or as to any apportionment of income under this section that\\nquestion must be decided by the Comptroller whose decision is final.\\n(7) This section applies to every settlement wheresoever it was\\nmade or entered into and whether it was made or entered into before\\nor after 1 January 1960 and (where there is more than one settlor or\\nmore than one person who made the settlement) has effect in relation\\nto each settlor as if he or she were the only settlor.\\n(8) In this section —\\n“child” includes a stepchild, a child who has been de facto\\nadopted by the settlor or by the husband or by the wife of the\\nsettlor, whether or not such adoption has been registered in\\naccordance with the provisions of any written law, and a child\\nof whom the settlor has the custody or whom the settlor\\nmaintains wholly or partly at his or her own expense;\\n“relative” means any person who is a wife, grandchild, child,\\nbrother, sister, uncle, aunt, nephew, niece or cousin of the\\nsettlor;\\n“settlement”\\nincludes\\nany\\ndisposition,\\ntrust,\\ncovenant,\\nagreement, whether reciprocal or collateral, arrangement or\\ntransfer of assets or income, but does not include —\\n(a) a settlement which in the Comptroller’s opinion is\\nmade for valuable and adequate consideration;\\n(b) a settlement resulting from an order of a court; or\\n(c) any agreement made by an employer to pay to an\\nemployee or to the widow or any relative or\\nIncome Tax Act 1947\\n569\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\ndependant of such employee after the employee’s\\ndeath such remuneration or pension or lump sum as\\nin the Comptroller’s opinion is fair and reasonable;\\n“settlor”, in relation to a settlement, includes any person by\\nwhom the settlement was made or entered into, directly or\\nindirectly, and any person who has provided or undertaken to\\nprovide funds or credit, directly or indirectly, for the purpose\\nof the settlement, or has made with any other person a\\nreciprocal arrangement for that other person to make or enter\\ninto the settlement.\\nValuation of trading stock on discontinuance or transfer of\\ntrade or business\\n32.—(1) In computing for any purpose of this Act the gains or\\nprofits of a trade or business which has been discontinued or\\ntransferred, any trading stock belonging to the trade or business at the\\ndiscontinuance or transfer thereof is valued as follows:\\n(a) in the case of any such trading stock —\\n(i) which\\nis\\nsold\\nor\\ntransferred\\nfor\\nvaluable\\nconsideration to a person who carries on or intends\\nto carry on a trade or business in Singapore; and\\n(ii) the cost whereof may be deducted by the purchaser\\nas an expense in computing for any such purpose the\\ngains or profits of that trade or business,\\n(a) the value thereof is taken to be the amount realised on the\\nsale or the value of the consideration given for the transfer;\\nand\\n(b) in the case of any other such trading stock, the value\\nthereof is taken to be the amount which it would have\\nrealised if it had been sold in the open market at the\\ndiscontinuance or transfer of the trade or business.\\n(2) In computing for any purpose of this Act the gains or profits of\\nthe purchaser of the trading stock of any trade or business which has\\nbeen discontinued or transferred, such trading stock is valued as\\nprovided in subsection (1).\\nIncome Tax Act 1947\\n2020 Ed.\\n570\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(3) Any question arising under subsection (1) regarding the value\\nattributable to the trading stock belonging to any trade or business\\nwhich has been discontinued or transferred is to be determined by the\\nComptroller.\\n(4) In this section, “trading stock”, in relation to any trade or\\nbusiness, means property of any description, whether movable or\\nimmovable, being either —\\n(a) property such as is sold in the ordinary course of trade or\\nbusiness or would be so sold if it were mature or if its\\nmanufacture, preparation or construction were complete;\\nor\\n(b) materials such as are used in the manufacture, preparation\\nor construction of any such property as is referred to in\\nparagraph (a).\\nValuation of cost of trading stock converted from non‑trade or\\ncapital asset\\n32A.—(1) Where, at any time on or after 16 November 2021, any\\nproperty of a person that is not trading stock becomes wholly or in\\npart trading stock of the person’s trade or business, then, in\\ncomputing the gains or profits arising from the sale or disposal of\\nsuch trading stock, the open market value of the property or part of\\nthe property as at the date it becomes trading stock is treated as the\\ncost of the trading stock.\\n[27/2021]\\n(2) For the purpose of subsection (1), property is treated as having\\nbecome trading stock if the property is held for sale or disposal in the\\nordinary course of a trade or business.\\n[27/2021]\\n(3) To avoid doubt, the reference to trading stock in subsection (1)\\ndoes not include property the sale or disposal of which results in a\\ngain or loss that is capital in nature.\\n[27/2021]\\n(4) Where property has become wholly or in part trading stock\\nunder subsection (1), then the person must, at the time of lodgment of\\nthe person’s return of income for the year of assessment relating to the\\nIncome Tax Act 1947\\n571\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nbasis period in which the property becomes trading stock, or such\\nlater time as the Comptroller may allow, give notice of the occurrence\\nand specify the particulars of the occurrence in such form and manner\\nas the Comptroller may specify.\\n[27/2021]\\n(5) The Minister may by rules made under section 7, exempt any\\nperson or class of persons from subsection (4), subject to such\\nconditions as may be specified in the rules.\\n[27/2021]\\n(6) Rules made for the purposes of subsection (5) may be made to\\ntake effect from (and including) 16 November 2021.\\n[27/2021]\\n(7) In this section —\\n“open market value”, in relation to any property, means —\\n(a) the amount that would be realised if the property had\\nbeen sold in the open market; or\\n(b) where the Comptroller is satisfied by reason of the\\nspecial nature of the property that it is not practicable\\nto determine the amount mentioned in paragraph (a),\\nsuch other value as appears to the Comptroller to be\\nreasonable in the circumstances;\\n“trading stock”, in relation to a trade or business —\\n(a) means property of any description (whether movable\\nor immovable) —\\n(i) that is sold in the ordinary course of trade or\\nbusiness; or\\n(ii) that would be so sold if it were mature or if its\\nmanufacture, preparation or construction were\\ncomplete; but\\n(b) does\\nnot\\ninclude\\nany\\nmaterial\\nused\\nin\\nthe\\nmanufacture, preparation or construction of any\\nproperty mentioned in paragraph (a).\\n[27/2021]\\nIncome Tax Act 1947\\n2020 Ed.\\n572\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nComptroller to disregard certain transactions and dispositions\\n33.—(1) Subsection (2) applies where the Comptroller is satisfied\\nthat the purpose or effect of any arrangement is directly or\\nindirectly —\\n(a) to alter the incidence of any tax that is payable by or that\\nwould otherwise have been payable by any person;\\n(b) to relieve any person from any liability to pay tax or to\\nmake a return under this Act; or\\n(c) to reduce or avoid any liability imposed or which would\\notherwise have been imposed on any person by this Act.\\n[41/2020]\\n(2) Without affecting any validity that the arrangement may have in\\nany other respect or for any other purpose, the Comptroller must\\ndisregard or vary the arrangement and make any adjustment that the\\nComptroller considers appropriate, including (but not limited to) the\\ncomputation or recomputation of gains or profits, or the imposition of\\nliability to tax, so as to counteract any tax advantage obtained or\\nobtainable by that person from or under that arrangement.\\n[41/2020]\\n(3) Subsection (1)(c) includes increasing any qualifying deduction\\nby a transferor company to be transferred to a claimant company\\nunder section 37B, in order to reduce or avoid any liability imposed or\\nwhich would otherwise have been imposed on the claimant company\\nby this Act.\\n[41/2020]\\n(4) Nothing\\nin\\nthis\\nsection\\nprevents\\nthe\\napplicability\\nof\\nsubsection (1) to a case, or any action of the Comptroller under\\nsubsection (2) in a case, from being questioned in an appeal against an\\nassessment in accordance with Part 18.\\n[41/2020]\\n(5) In this section —\\n“arrangement” means any scheme, trust, grant, covenant,\\nagreement, disposition and transaction and includes all\\nsteps by which it is carried into effect;\\nIncome Tax Act 1947\\n573\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“claimant company” and “transferor company” have the\\nmeanings given by section 37B(19);\\n“qualifying\\ndeduction”\\nhas\\nthe\\nmeaning\\ngiven\\nby\\nsection 37B(14).\\n[41/2020]\\n(6) This section applies to any arrangement made or entered into\\nbefore, on or after 7 December 2020, but not one made or entered into\\nbefore 29 January 1988.\\n[41/2020]\\n(7) This section does not apply to any arrangement carried out for\\nbona fide commercial reasons and had not as one of its main purposes\\nthe avoidance or reduction of tax.\\n[41/2020]\\nSurcharge on adjustments under section 33\\n33A.—(1) This\\nsection\\napplies\\nwhere,\\nin\\nthe\\nyear\\nof\\nassessment 2023 or a subsequent year of assessment —\\n(a) the Comptroller imposes a liability to tax or an additional\\namount of tax on a person for that year of assessment under\\nsection 33;\\n(b) the Comptroller recomputes any gain, profit or loss of, any\\ncapital allowance allowed to, or any deduction for a\\ndonation made by, a person for that year of assessment\\nunder section 33 which results in the imposition of a\\nliability to tax or an additional amount of tax on that person\\nfor any year of assessment; or\\n(c) as a result of an adjustment under section 33, any\\nqualifying deduction that has been transferred under\\nsection 37B by a transferor company to a claimant\\ncompany is reduced or disregarded, and the Comptroller\\nmakes an assessment on the claimant company for an\\namount of tax or an additional amount of tax.\\n[41/2020]\\n(2) In a case mentioned in subsection (1)(a) or (b), a surcharge\\nequal to 50% of the amount of tax or the additional amount of tax is\\nIncome Tax Act 1947\\n2020 Ed.\\n574\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nimposed on the person, and is recoverable by the Comptroller from\\nthe person as a debt due to the Government.\\n[41/2020]\\n(3) In a case mentioned in subsection (1)(c), a surcharge equal to\\n50% of the amount of tax or the additional amount of tax assessed on\\nthe claimant company is imposed on the transferor company, and is\\nrecoverable by the Comptroller from the transferor company as a debt\\ndue to the Government.\\n[41/2020]\\n(4) Despite any objection under section 76 to or an appeal lodged\\nunder Part 18 against an adjustment made under section 33 or any\\nassessment, the surcharge must be paid —\\n(a) within one month after the date a written notice of the\\nsurcharge is served in accordance with section 8(1) on the\\nperson to whom the surcharge is imposed; and\\n(b) in the manner stated in the notice.\\n[41/2020]\\n(5) The Comptroller may, in the Comptroller’s discretion, and\\nsubject to any term and condition (including the imposition of interest\\non the surcharge) as the Comptroller may impose, extend the time\\nwithin which payment is to be made.\\n[41/2020]\\n(6) Sections 86(1) to (6), 87(1) and (2), 89, 90 and 91 apply to the\\ncollection and recovery of a surcharge and any interest imposed under\\nsubsection (5), as they apply to the collection and recovery of tax.\\n[41/2020]\\n(7) The Comptroller may, for good cause, remit wholly or in part\\nany surcharge or interest payable under this section.\\n[41/2020]\\n(8) If, upon an objection under section 76 to or an appeal lodged\\nunder Part 18, an assessment made pursuant to any adjustment made\\nunder section 33 is varied or annulled, then the surcharge is\\ncorrespondingly increased, reduced or annulled (as the case may\\nbe), and —\\n(a) if the surcharge is increased, subsection (2) or (3) (as the\\ncase may be) and subsections (4), (5), (6) and (7) apply to\\nIncome Tax Act 1947\\n575\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthe increased amount of the surcharge as they apply to the\\nsurcharge; or\\n(b) if the surcharge is reduced or annulled and it has already\\nbeen paid to the Comptroller, the amount of the reduction\\nor the entire amount (including any interest paid on the\\namount) must be refunded.\\n[41/2020]\\n(9) In this section, “claimant company”, “qualifying deduction”\\nand “transferor company” have the meanings given by section 33(5).\\n[41/2020]\\nDecision of Comptroller no bar to appeal\\n34. Nothing in section 32 prevents the decision of the Comptroller\\nin the exercise of any discretion given to him or her by that section\\nfrom being questioned in an appeal against an assessment in\\naccordance with Part 18.\\n[41/2020]\\nAdjustment on change of basis of computing profits of financial\\ninstruments resulting from FRS 39 or SFRS for Small Entities\\n34A.—(1) Despite the provisions of this Act, the amount of any\\nprofit or loss (as the case may be) or expense to be brought into\\naccount for the basis period for any year of assessment in respect of\\nany financial instrument of a qualifying person for the purposes of\\nsections 10, 14, 14G and 37 is that which, in accordance with FRS 39\\nor SFRS for Small Entities (as the case may be), is recognised in\\ndetermining any profit or loss (as the case may be) or expense in\\nrespect of that financial instrument for that year of assessment.\\n[39/2017]\\n(2) Despite subsection (1), the profit or loss or expense in respect of\\nthe financial instrument referred to in the following paragraphs is, for\\nthe purposes of sections 10, 14, 14G and 37, to be computed as\\nfollows:\\n(a) where a qualifying person to whom section 10(12)(b)\\napplies derives interest from a negotiable certificate of\\ndeposit or derives a gain or profit from the sale thereof, the\\nIncome Tax Act 1947\\n2020 Ed.\\n576\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nqualifying person’s income therefrom is treated in the\\nmanner set out in section 10(12);\\n(b) where a qualifying person derives interest from debt\\nsecurities or loans, and the interest is chargeable to tax\\nunder section 10(1)(d), such interest is to be computed\\nbased on the contractual interest rate and not the effective\\ninterest rate;\\n[Act 33 of 2022 wef 04/11/2022]\\n(c) any amount of profit or expense in respect of a loan for\\nwhich no interest is payable is disregarded;\\n(d) where the creditor and debtor of a loan agreement are not\\ndealing with each other at arm’s length, only the interest\\nincome or the interest expense based on the contractual\\ninterest rate is chargeable to tax or allowed as a deduction,\\nas the case may be;\\n(e) in a case where section 14(1)(a) applies, only the interest\\nexpense incurred based on the contractual interest rate is\\nallowed as a deduction under section 14(1)(a);\\n(f) any amount of profit or loss in respect of a hedging\\ninstrument where the underlying asset or liability is\\nemployed or intended to be employed as capital is\\ndisregarded;\\n(g) where a bank or qualifying finance company within the\\nmeaning of section 14G is unable to make provision for the\\namount of impairment losses in respect of a group of\\nfinancial assets in accordance with FRS 39, but is required\\nto make such provision by the Monetary Authority of\\nSingapore, section 14G applies for a period of 5 years, or\\nsuch further period as the Minister may allow, beginning\\nfrom the year of assessment relating to the basis period in\\nwhich the bank or qualifying finance company is first\\nrequired to prepare financial accounts in respect of its trade\\nor business in accordance with FRS 39;\\n(h) a gain from discounts or premiums on debt securities,\\nbeing a gain chargeable to tax under section 10(1)(d), is\\ndeemed —\\nIncome Tax Act 1947\\n577\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(i) to accrue only on the maturity or redemption of the\\ndebt securities; and\\n(ii) to be equal to the difference between the amount\\nreceived on the maturity or redemption of the debt\\nsecurities and the amount for which the debt\\nsecurities were first issued;\\n(i) in a case where a qualifying person issues debt securities at\\na discount or redeems issued debt securities at a premium,\\nand section 14(1)(a) applies in respect of the outgoing\\nrepresented by such discount or premium, such outgoing is\\ndeemed to be incurred and deductible only when it is paid\\non the maturity or redemption of the debt securities and —\\n(i) in the case of debt securities issued in the basis\\nperiod relating to the year of assessment 2008 or\\nsubsequent years of assessment, to be equal to the\\ndifference between the amount paid on the maturity\\nor redemption of the debt securities and the amount\\nfor which the debt securities were first issued; or\\n(ii) in the case of debt securities issued before the basis\\nperiod relating to the year of assessment 2008, to be\\nequal to such part of the difference referred to in\\nsub‑paragraph (i) that would be attributable to the\\nyear of assessment 2008 and subsequent years of\\nassessment;\\n(j) in a case where —\\n(i) a qualifying person issues debt securities at a\\ndiscount or redeems issued debt securities at a\\npremium;\\n(ii) the debt securities were issued with an embedded\\nderivative to acquire shares or units in the qualifying\\nperson; and\\n(iii) the outgoing represented by such discount or\\npremium is deductible under section 14(1),\\nIncome Tax Act 1947\\n2020 Ed.\\n578\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(j) such part of the outgoing that is attributable to the\\nembedded derivative is not deductible.\\n(3) A person who is required to prepare or maintain financial\\naccounts in accordance with FRS 39 may, subject to such conditions\\nas\\nthe\\nComptroller\\nmay\\nspecify,\\nelect\\nin\\naccordance\\nwith\\nsubsection (4) not to be subject to this section; and if the person so\\nelects, the person is not treated as a qualifying person from the year of\\nassessment relating to the basis period during which the person is first\\nrequired to prepare financial accounts in accordance with FRS 39.\\n(3A) A person who prepares or maintains financial accounts in\\naccordance with SFRS for Small Entities may, subject to such\\nconditions as the Comptroller may specify, elect in accordance with\\nsubsection (4A) not to be subject to this section; and if the person so\\nelects, the person is not treated as a qualifying person from the year of\\nassessment relating to the basis period during which the person first\\nprepares financial accounts in accordance with SFRS for Small\\nEntities.\\n(3B) A person is not entitled to make an election under\\nsubsection (3) if the person is already subject to this section\\nbecause the person did not make an election in accordance with\\nsubsection (4A), or the person had revoked under subsection (5) the\\nperson’s election made in accordance with subsection (4A).\\n(3C) A person is not entitled to make an election under\\nsubsection (3A) if the person is already subject to this section\\nbecause the person did not make an election in accordance with\\nsubsection (4), or the person had revoked under subsection (5) the\\nperson’s election made in accordance with subsection (4).\\n(4) The election referred to in subsection (3) must be made by the\\nperson by written notice to the Comptroller —\\n(a) at the time of lodgment of the return of income for the year\\nof assessment referred to in subsection (3); or\\n(b) within such further time as the Comptroller may allow.\\n(4A) The election referred to in subsection (3A) must be made by\\nthe person by written notice to the Comptroller —\\nIncome Tax Act 1947\\n579\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(a) at the time of lodgment of the return of income for the year\\nof assessment referred to in that subsection; or\\n(b) within such further time as the Comptroller may allow.\\n(5) A person who has made an election under subsection (3) or (3A)\\nmay at any time revoke the election by written notice to the\\nComptroller; and if the person so revokes, the person is treated as a\\nqualifying person from the year of assessment relating to the basis\\nperiod during which the revocation is made or such year of\\nassessment as the Comptroller may approve.\\n(6) The revocation under subsection (5) is irrevocable.\\n(7) A person who is not required to prepare or maintain financial\\naccounts in accordance with FRS 39 or SFRS for Small Entities may\\napply to the Comptroller in writing for approval to be subject to this\\nsection and, if the Comptroller approves the application, that person\\nis treated as a qualifying person from the year of assessment relating\\nto the basis period during which the approval is granted or such later\\nyear of assessment as the Comptroller may approve.\\n(8) The provisions of this section pertaining to FRS 39 have effect\\nfor any basis period beginning on or after 1 January 2005; and the\\nprovisions of this section pertaining to SFRS for Small Entities have\\neffect for any basis period beginning on or after 1 January 2011.\\n(9) For the purposes of this section, the Minister may make\\nregulations —\\n(a) to provide for such transitional, supplementary and\\nconsequential matters as the Minister may consider\\nnecessary or expedient; and\\n(b) generally to give effect to or for carrying out the purposes\\nof this section.\\n(10) In this section —\\n“contractual\\ninterest\\nrate”,\\nin\\nrelation\\nto\\nany\\nfinancial\\ninstrument, means the interest rate specified in the financial\\ninstrument;\\n“debt securities” has the meaning given by section 43H(4);\\nIncome Tax Act 1947\\n2020 Ed.\\n580\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“FRS 39” means the financial reporting standard known as\\nFinancial Reporting Standard 39 (Financial Instruments:\\nRecognition and Measurement) that is treated as made by the\\nAccounting Standards Committee under Part 3 of the\\nAccounting Standards Act 2007, as amended from time to\\ntime;\\n[Act 36 of 2022 wef 01/04/2023]\\n“Monetary Authority of Singapore” means the Monetary\\nAuthority of Singapore established under section 3 of the\\nMonetary Authority of Singapore Act 1970;\\n“qualifying person”, in relation to any year of assessment,\\nmeans —\\n(a) a person who is required to prepare or maintain\\nfinancial accounts in accordance with FRS 39 and\\nwho has not made an election under subsection (3)\\nfor that year of assessment;\\n(b) a person who prepares or maintains financial\\naccounts in accordance with SFRS for Small\\nEntities and who has not made an election under\\nsubsection (3A) for that year of assessment; or\\n(c) a person who is treated as a qualifying person under\\nsubsection (5) or (7) for that year of assessment,\\nas the case may be, but excludes a person who is treated under\\nsection 34AA(6) as a qualifying person for that year of\\nassessment for the purposes of section 34AA;\\n“SFRS for Small Entities” means the financial reporting\\nstandard known as Singapore Financial Reporting Standard\\nfor Small Entities made by the Accounting Standards\\nCommittee under Part 3 of the Accounting Standards\\nAct 2007, as amended from time to time.\\n[45/2018]\\n[Act 36 of 2022 wef 01/04/2023]\\n(11) Any term used in this section and not defined in this section but\\ndefined in FRS 39 or SFRS for Small Entities (as the case may be) has\\nIncome Tax Act 1947\\n581\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthe same meaning as in FRS 39 or SFRS for Small Entities (as the\\ncase may be).\\n(12) This section does not apply to any profit, loss or expense in\\nrespect of any financial instrument of an insurer as defined in\\nsection 34AAA(1), to be brought into account for the basis period for\\na year of assessment, being a basis period that begins on or after\\n1 January 2023, or such earlier basis period as may be approved by\\nthe Comptroller in a particular case.\\n[Act 33 of 2022 wef 04/11/2022]\\nAdjustment on change of basis of computing profits of financial\\ninstruments resulting from FRS 109 or SFRS(I) 9\\n34AA.—(1) Despite the provisions of this Act but subject to\\nsection 34G(3), (4) and (5), the amount of any profit, loss or expense\\nto be brought into account for the basis period for any year of\\nassessment in respect of any financial instrument of a qualifying\\nperson for the purposes of sections 10, 14, 14G and 37, respectively,\\nis that which, in accordance with FRS 109 or SFRS(I) 9 (as the case\\nmay be), is recognised in determining any profit, loss or expense in\\nrespect of that financial instrument for that year of assessment.\\n[39/2017; 45/2018]\\n(2) To avoid doubt, subsection (1) does not apply to anything\\nrecognised in accordance with FRS 109 or SFRS(I) 9 (as the case may\\nbe), that is capital in nature.\\n[39/2017; 45/2018]\\n(3) Despite subsection (1), for the purposes of sections 10, 14, 14G\\nand 37, the profit, loss or expense in respect of a financial instrument\\nmentioned in each of the following paragraphs must be dealt with in\\naccordance with that paragraph:\\n(a) where a qualifying person to whom section 10(12)(b)\\napplies derives interest from a negotiable certificate of\\ndeposit or derives a gain or profit from the sale of that\\ncertificate, the person’s income from that certificate or sale\\nmust be treated in the manner set out in section 10(12);\\n(b) where a qualifying person derives interest from debt\\nsecurities or loans, the interest that is chargeable to tax\\nunder section 10(1)(d) is the amount computed at the\\nIncome Tax Act 1947\\n2020 Ed.\\n582\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\ncontractual interest rate and not at the effective interest\\nrate;\\n[Act 33 of 2022 wef 04/11/2022]\\n(c) any amount of profit or expense in respect of a loan for\\nwhich no interest is payable must be disregarded;\\n(d) where the creditor and debtor of a loan did not deal with\\neach other at arm’s length, the interest income chargeable\\nto tax, and the interest expense allowable as a deduction,\\nare the amounts of such income and expense that are\\ncomputed at the contractual interest rate and not at the\\neffective interest rate;\\n(e) in a case where section 14(1)(a) applies, only interest\\nexpense incurred in respect of the money borrowed and\\ncomputed at the contractual interest rate is allowed as a\\ndeduction under that provision;\\n(f) any amount of profit or loss in respect of a hedging\\ninstrument acquired under a bona fide commercial\\narrangement for the sole purpose of hedging against any\\nrisk associated with the underlying asset or liability must\\nbe disregarded, if the underlying asset or liability is\\nemployed or intended to be employed as capital;\\n(g) any amount of expected credit losses of a financial\\ninstrument that is not credit‑impaired, being losses that\\nare recognised in accordance with FRS 109 or SFRS(I) 9\\n(as the case may be) in determining the profit or loss of\\nsuch instrument, must be disregarded;\\n(h) in a case where the qualifying person is a bank or\\nqualifying\\nfinance\\ncompany,\\nthe\\nprovisions\\nin\\nsection 14G apply in relation to a provision made by the\\nqualifying person for an expected credit loss arising from\\nloans or securities that are not credit‑impaired, as those\\nprovisions apply in relation to a provision for doubtful\\ndebts arising from the person’s loans or for diminution in\\nthe value of the person’s investments in securities;\\n(i) where an equity instrument on revenue account of a\\nqualifying person that is measured at fair value through\\nIncome Tax Act 1947\\n583\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nother comprehensive income is disposed of, an amount\\nprescribed as the gain or loss to the qualifying person on\\nsuch disposal, is chargeable to tax, or is to be allowed as a\\ndeduction;\\n(j) a gain from discounts or premiums on debt securities,\\nbeing a gain chargeable to tax under section 10(1)(d) —\\n(i) is treated as accruing only on the maturity or\\nredemption of the debt securities; and\\n(ii) is treated as equal to the difference between the\\namount received on the maturity or redemption of the\\ndebt securities and the amount for which the debt\\nsecurities were first issued;\\n(k) in a case where a qualifying person issues debt securities at\\na discount or redeems issued debt securities at a premium,\\nand section 14(1)(a) applies in respect of the outgoing\\nrepresented by such discount or premium, such outgoing is\\ntreated to be incurred and deductible only when it is paid\\non the maturity or redemption of the debt securities and —\\n(i) for debt securities issued in the basis period relating\\nto the year of assessment 2008 or subsequent years of\\nassessment, is treated as equal to the difference\\nbetween the amount paid on the maturity or\\nredemption of the debt securities and the amount\\nfor which the debt securities were first issued; or\\n(ii) for debt securities issued before the basis period\\nrelating to the year of assessment 2008, is treated as\\nequal to the part of the difference in sub‑paragraph (i)\\nthat\\nwould\\nbe\\nattributable\\nto\\nthe\\nyear\\nof\\nassessment\\n2008\\nand\\nsubsequent\\nyears\\nof\\nassessment;\\n(l) in a case where —\\n(i) a qualifying person issues debt securities at a\\ndiscount or redeems issued debt securities at a\\npremium;\\nIncome Tax Act 1947\\n2020 Ed.\\n584\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(ii) the debt securities were issued with an embedded\\nderivative to acquire shares or units in the qualifying\\nperson; and\\n(iii) the outgoing represented by such discount or\\npremium is deductible under section 14(1),\\n(l) such part of the outgoing that is attributable to the\\nembedded derivative is not deductible;\\n(m) where a financial instrument on revenue account of a\\nqualifying person (being a financial liability measured at\\nfair value through profit or loss) matures or is sold, bought\\nback or redeemed, any gain or loss to the qualifying person\\nthat is realised on such maturity or from such sale, buy\\nback or redemption (being a gain or loss that is recognised\\nin other comprehensive income in accordance with\\nFRS 109 or SFRS(I) 9 (as the case may be)) is\\nchargeable to tax, or is to be allowed as a deduction.\\n[39/2017; 45/2018]\\n(4) To avoid doubt, subsection (3)(d) does not affect the operation\\nof section 34D.\\n[39/2017]\\n(5) In a case where —\\n(a) a loan on revenue account is transferred by a qualifying\\nperson (called in this subsection the transferor) to another\\nperson (called in this subsection the transferee);\\n[Act 30 of 2023 wef 30/10/2023]\\n(b) the transfer is not pursuant to a qualifying amalgamation\\nwithin the meaning of section 34C(2) in relation to which\\nan election is made under section 34C(4);\\n(c) a provision for an expected credit loss arising from that\\nloan that is credit‑impaired, being a loss that is recognised\\nin accordance with FRS 109 or SFRS(I) 9 (as the case may\\nbe) in determining the profit or loss of such loan, is also\\ntransferred by the transferor to the transferee; and\\n(d) a deduction of an amount in respect of the provision\\nmentioned in paragraph (c) was previously allowed under\\nIncome Tax Act 1947\\n585\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nsection 14 (read with this section or section 34A) to the\\ntransferor,\\nthen, despite any provision in this Act —\\n(e) in a case where both the transferor and the transferee are on\\nthe date of the transfer in the business of lending money,\\nthe deduction previously allowed to the transferor is\\ntreated, for the purposes of section 14, as having been\\nallowed to the transferee under that section; and\\n(f) in any other case, the provision for the expected credit loss\\nmentioned in paragraph (c) that is transferred by the\\ntransferor and allowed a deduction under paragraph (d) is\\ntreated as a trading receipt of the transferor for the basis\\nperiod in which the date of transfer falls.\\n[39/2017; 45/2018]\\n[Act 30 of 2023 wef 30/10/2023]\\n(6) A person who is not a qualifying person under paragraph (a) or\\n(b) of the definition of that term in subsection (15), may apply to the\\nComptroller for approval to be a qualifying person; and if the\\nComptroller approves the application, that person is a qualifying\\nperson starting from the year of assessment of the basis period in\\nwhich the approval is granted or such later year of assessment as the\\nComptroller may approve.\\n[39/2017]\\n(7) If —\\n(a) any gain, loss or expense in respect of a financial\\ninstrument\\nof\\na\\nqualifying\\nperson\\nto\\nwhich\\nsubsection (1) applies is recognised under FRS 109 or\\nSFRS(I) 9 (as the case may be) on a certain date;\\n(b) it is not possible to determine, on the date the Comptroller\\nmakes an assessment of the amount of chargeable income\\nof that person for the year of assessment of the basis period\\nin which the date mentioned in paragraph (a) falls, whether\\nthat gain, loss or expense is capital or revenue in nature;\\nIncome Tax Act 1947\\n2020 Ed.\\n586\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) because of this, the gain was not charged with tax or a\\ndeduction was allowed for that loss or expense, as the case\\nmay be; and\\n(d) the Comptroller later discovers (called the discovery time)\\nthat the gain ought to have been charged with tax as it is\\nrevenue in nature, or a deduction ought not to have been\\nallowed for the loss or expense as it is capital in nature, as\\nthe case may be,\\nthen, and despite anything in this Act but subject to subsection (9), the\\namount of the gain, loss or expense, together with the additional\\namount mentioned in subsection (8), is treated as the person’s income\\nfor the year of assessment within which the discovery time falls.\\n[39/2017; 45/2018]\\n(8) The additional amount in subsection (7) is the amount of any\\nother gain, loss or expense in respect of the same financial\\ninstrument —\\n(a) that was not charged with tax, or for which a deduction was\\nallowed, for one or more past years of assessment, for the\\nsame reason as that in subsection (7)(b); and\\n(b) that is ascertained in accordance with the regulations made\\nunder subsection (13).\\n[39/2017]\\n(9) For any qualifying person, no assessment may be made in\\nrespect of the income mentioned in subsection (7) more than 4 years\\nimmediately after the end of the year of assessment of the basis period\\nin which the financial instrument is disposed of by the qualifying\\nperson.\\n[39/2017]\\n(10) If —\\n(a) any gain, loss or expense in respect of a financial\\ninstrument\\nof\\na\\nqualifying\\nperson\\nto\\nwhich\\nsubsection (1) applies is recognised under FRS 109 or\\nSFRS(I) 9 (as the case may be) on a certain date;\\n(b) it is not possible to determine, on the date the Comptroller\\nmakes an assessment of the amount of chargeable income\\nIncome Tax Act 1947\\n587\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nof that person for the year of assessment of the basis period\\nin which the date mentioned in paragraph (a) falls, whether\\nthat gain, loss or expense is capital or revenue in nature;\\n(c) because of this, the gain was charged with tax or a\\ndeduction was not allowed for that loss or expense, as the\\ncase may be; and\\n(d) the Comptroller later discovers (called the discovery time),\\nwith or without a claim made by the qualifying person, that\\nthe gain ought not to have been charged with tax as it is\\ncapital in nature, or a deduction ought to have been allowed\\nfor the loss or expense as it is revenue in nature, as the case\\nmay be,\\nthen, and despite anything in this Act but subject to subsection (12),\\nthe amount of the gain, loss or expense, together with the additional\\namount mentioned in subsection (11), is to be allowed as a deduction\\nagainst the income of the person for the year of assessment within\\nwhich the discovery time falls.\\n[39/2017; 45/2018]\\n(11) The additional amount in subsection (10) is the amount of any\\nother gain, loss or expense in respect of the same financial\\ninstrument —\\n(a) that was charged with tax, or for which a deduction was not\\nmade, for one or more past years of assessment, for the\\nsame reason as that in subsection (10)(b); and\\n(b) that is ascertained in accordance with the regulations made\\nunder subsection (13).\\n[39/2017]\\n(12) For\\nany\\nqualifying\\nperson,\\nno\\nclaim\\nmentioned\\nin\\nsubsection (10)(d) may be made more than 4 years immediately\\nafter the end of the year of assessment of the basis period in which the\\nfinancial instrument is disposed of by the qualifying person.\\n[39/2017]\\n(13) For the purposes of this section, the Minister may make\\nregulations to give effect to this section, including —\\n(a) [Deleted by Act 45 of 2018]\\nIncome Tax Act 1947\\n2020 Ed.\\n588\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) providing for the computation of the additional amounts\\nmentioned in subsections (8) and (11); and\\n(c) providing\\nfor\\nany\\ntransitional,\\nsupplementary\\nor\\nconsequential matter, including —\\n(i) treating a specified amount of any profit in respect of\\na financial instrument of a person, being an amount\\nrecognised under FRS 109 or SFRS(I) 9 (as the case\\nmay be) as such profit as of a date before the date the\\nperson becomes a qualifying person, as the person’s\\nincome for a specified year of assessment; and\\n(ii) allowing a specified amount of any loss or expense in\\nrespect of a financial instrument of a person, being an\\namount recognised under FRS 109 or SFRS(I) 9 (as\\nthe case may be) as such loss or expense as of a date\\nbefore the date the person becomes a qualifying\\nperson, as a deduction against the person’s income\\nfor a specified year of assessment.\\n[39/2017; 45/2018]\\n(14) The regulations under subsection (13) may prescribe different\\namounts for the purposes of subsection (3)(i) for different\\ndescriptions of instruments.\\n[39/2017]\\n(15) In this section —\\n“bank”, “loan” and “qualifying finance company” have the\\nmeanings given by section 14G(7);\\n“contractual\\ninterest\\nrate”,\\nin\\nrelation\\nto\\nany\\nfinancial\\ninstrument, means the applicable interest rate specified in\\nthe financial instrument;\\n“debt securities” has the meaning given by section 43H(4);\\n“FRS 109” means the financial reporting standard known as\\nFinancial Reporting Standard 109 (Financial Instruments)\\nthat is made, and amended from time to time, under Part 3 of\\nthe Accounting Standards Act 2007;\\n“qualifying person”, in relation to any year of assessment,\\nmeans —\\nIncome Tax Act 1947\\n589\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(a) in the case of a year of assessment for a basis period\\nbeginning on or after 1 January 2018, a person who is\\nrequired to prepare or maintain financial accounts in\\naccordance with FRS 109 or SFRS(I) 9 for that basis\\nperiod;\\n(b) in the case of a year of assessment for a basis period\\nbeginning on a date before 1 January 2018, a person\\nmentioned\\nin\\nparagraph\\n(a)\\nwho\\nprepares\\nor\\nmaintains financial accounts in accordance with\\nFRS 109 or SFRS(I) 9 (as the case may be) for that\\nbasis period; or\\n(c) in any case, a person who is treated as a qualifying\\nperson under subsection (6);\\n“SFRS(I) 9” means the financial reporting standard known as\\nSingapore Financial Reporting Standard (International) 9\\n(Financial Instruments) that is made, and amended from time\\nto time, under Part 3 of the Accounting Standards Act 2007.\\n[39/2017; 45/2018]\\n(16) Any term used in this section and not defined in this section but\\ndefined in FRS 109 or SFRS(I) 9, has the same meaning as in\\nFRS 109 or SFRS(I) 9, as the case may be.\\n[45/2018]\\n(17) This section does not apply to any profit, loss or expense in\\nrespect of any financial instrument of an insurer as defined in\\nsection 34AAA(1), to be brought into account for the basis period for\\na year of assessment, being a basis period that begins on or after\\n1 January 2023, or such earlier basis period as may be approved by\\nthe Comptroller in a particular case.\\n[Act 33 of 2022 wef 04/11/2022]\\nChange of basis for computing profits from financial\\ninstruments for insurers\\n34AAA.—(1) Despite the provisions of this Act but subject to\\nsection 34G(3), (4) and (5), the amount of any profit, loss or expense\\nin respect of any financial instrument of a company licensed under the\\nInsurance Act 1966 to carry on insurance business in Singapore\\nIncome Tax Act 1947\\n2020 Ed.\\n590\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(called in this section an insurer), to be brought into account for the\\nbasis period for a year of assessment (being a basis period beginning\\non or after 1 January 2023, or such earlier basis period as may be\\napproved by the Comptroller in a particular case) for the purposes of\\nsections 10, 14 and 37, is that which —\\n(a) is recognised and valued in accordance with the Insurance\\nAct regulations; and\\n(b) is reflected in the statement of profit and loss that is part of\\nthe insurer’s MAS return for that basis period.\\n(2) Subsection (1) does not apply to anything recognised and\\nvalued in accordance with the Insurance Act regulations that is capital\\nin nature.\\n(3) Without limiting subsection (1), that subsection applies to any\\nfinancial instrument of —\\n(a) the shareholders’ fund established in Singapore of an\\ninsurer; or\\n(b) the surplus account of a participating fund of an insurer\\nthat is a life insurer.\\n(4) Subsection (1) does not apply to any financial instrument of a\\nparticipating fund (other than the surplus account of the participating\\nfund) of an insurer that is a life insurer.\\n(5) Despite subsection (1), for the purposes of sections 10, 14 and\\n37, the profit, loss or expense of an insurer in respect of a financial\\ninstrument mentioned in each of the following paragraphs must be\\ndealt with or computed (as the case may be) in accordance with that\\nparagraph:\\n(a) where the insurer derives interest from debt securities or\\nloans, the interest that is chargeable to tax under\\nsection\\n10(1)(d)\\nis\\nthe\\namount\\ncomputed\\nat\\nthe\\ncontractual interest rate and not at the effective interest\\nrate;\\n(b) any amount of profit or expense in respect of a loan for\\nwhich no interest is payable must be disregarded;\\nIncome Tax Act 1947\\n591\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) where the creditor and debtor of a loan did not deal with\\neach other at arm’s length, the interest income chargeable\\nto tax, and the interest expense allowable as a deduction,\\nare the amounts of such income and expense that are\\ncomputed at the contractual interest rate and not at the\\neffective interest rate;\\n(d) where the insurer incurs interest expense on loans or debt\\nsecurities to which section 14(1)(a) would otherwise apply,\\nonly such part of the interest expense that is incurred in\\nrespect of the moneys borrowed and computed at the\\ncontractual interest rate is allowed as a deduction under\\nthat provision;\\n(e) any amount of profit or loss in respect of a hedging\\ninstrument acquired under a bona fide commercial\\narrangement for the sole purpose of hedging against any\\nrisk associated with the underlying asset or liability must\\nbe disregarded, if the underlying asset or liability is\\nemployed or intended to be employed as capital;\\n(f) where a loan (whether on revenue or capital account) is not\\nreflected as a credit-impaired financial asset in the\\ninsurer’s audited financial statements for the accounting\\nperiod the last day of which falls within the basis period\\nconcerned, any amount of impairment losses in respect of\\nthat loan, being losses that are recognised and valued in\\naccordance with the Insurance Act regulations and\\nreflected in the statement of profit and loss that is part of\\nan MAS return, must be disregarded;\\n(g) where a loan (being one on capital account) is reflected as a\\ncredit-impaired financial asset in the insurer’s audited\\nfinancial statements for the accounting period the last day\\nof which falls within the basis period concerned, any\\namount of impairment losses in respect of that loan, being\\nlosses that are recognised and valued in accordance with\\nthe Insurance Act regulations and reflected in the statement\\nof profit and loss that is part of an MAS return, must be\\ndisregarded;\\nIncome Tax Act 1947\\n2020 Ed.\\n592\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(h) where a loan (whether on revenue or capital account) and\\ninterest receivable on that loan are not reflected as a\\ncredit‑impaired financial asset in the insurer’s audited\\nfinancial statements for the accounting period the last day\\nof which falls within the basis period concerned, any\\namount of impairment losses in respect of the interest\\nreceivable on that loan, being losses that are recognised\\nand valued\\nin\\naccordance with\\nthe\\nInsurance\\nAct\\nregulations and reflected in the statement of profit and\\nloss that is part of an MAS return, must be disregarded;\\n(i) where a receivable (other than interest receivable on a\\nloan) is not reflected as a credit-impaired financial asset in\\nthe\\ninsurer’s\\naudited\\nfinancial\\nstatements\\nfor\\nthe\\naccounting period the last day of which falls within the\\nbasis period concerned, any amount of impairment losses\\nin respect of that receivable, being losses that are\\nrecognised and valued in accordance with the Insurance\\nAct regulations and reflected in the statement of profit and\\nloss that is part of an MAS return, must be disregarded;\\n(j) a gain from discounts or premiums on debt securities,\\nbeing a gain chargeable to tax under section 10(1)(d) —\\n(i) is treated as accruing only on the maturity or\\nredemption of the debt securities; and\\n(ii) is treated as equal to the difference between the\\namount received on the maturity or redemption of the\\ndebt securities and the amount for which the debt\\nsecurities were first issued;\\n(k) in a case where the insurer issues debt securities at a\\ndiscount or redeems issued debt securities at a premium,\\nand section 14(1)(a) applies in respect of the outgoing\\nrepresented by such discount or premium, such outgoing is\\ntreated —\\n(i) to be incurred and deductible only when it is paid on\\nthe maturity or redemption of the debt securities; and\\nIncome Tax Act 1947\\n593\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(ii) as equal to the difference between the amount paid\\non the maturity or redemption of the debt securities\\nand the amount for which the debt securities were\\nfirst issued;\\n(l) in a case where —\\n(i) the insurer issues debt securities at a discount or\\nredeems issued debt securities at a premium;\\n(ii) the debt securities were issued with an embedded\\nderivative to acquire shares or units in the insurer;\\nand\\n(iii) the outgoing represented by such discount or\\npremium is deductible under section 14(1),\\n(l) such part of the outgoing that is attributable to the\\nembedded derivative, must be disregarded.\\n(6) To avoid doubt, subsection (5)(c) does not affect the operation\\nof section 34D.\\n(6A) In a case where —\\n(a) a loan on revenue account is transferred by an insurer\\n(called in this subsection the transferor) to another person\\n(called in this subsection the transferee);\\n(b) the transfer is not pursuant to a transfer of businesses by the\\ntransferor\\nto\\nthe\\ntransferee\\nin\\nrelation\\nto\\nwhich\\nsection 34CA applies;\\n(c) a provision for an impairment loss arising from that loan,\\nbeing a loss that is recognised and valued in accordance\\nwith the Insurance Act regulations in determining the\\nprofit or loss of such loan and reflected in the transferor’s\\nstatement of profit and loss that is part of an MAS return, is\\nalso transferred by the transferor to the transferee; and\\n(d) a deduction of an amount in respect of the provision\\nmentioned in paragraph (c) was previously allowed under\\nsection 14 (read with this section) to the transferor,\\nIncome Tax Act 1947\\n2020 Ed.\\n594\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthen, despite any provision of this Act —\\n(e) in a case where both the transferor and transferee are on the\\ndate of the transfer in the business of lending money, the\\ndeduction previously allowed to the transferor is treated,\\nfor the purposes of section 14, as having been allowed to\\nthe transferee under that section; and\\n(f) in any other case, the provision for the impairment loss\\nmentioned in paragraph (c) that is transferred by the\\ntransferor and allowed a deduction under paragraph (d) is\\ntreated as a trading receipt of the transferor for the basis\\nperiod in which the date of transfer falls.\\n[Act 30 of 2023 wef 30/10/2023]\\n(7) If —\\n(a) any gain, loss or expense in respect of a financial\\ninstrument\\nof\\nan\\ninsurer\\nwas\\n(by\\nreason\\nof\\nsubsection (1)) that which was recognised and valued in\\naccordance with the Insurance Act regulations and\\nreflected in the statement of profit and loss that was part\\nof an MAS return on a certain date;\\n(b) it was not possible to determine, on the date the\\nComptroller made an assessment of the amount of\\nchargeable income of that insurer for the year of\\nassessment of the basis period in which the date\\nmentioned in paragraph (a) fell, whether that gain, loss\\nor expense was capital or revenue in nature;\\n(c) because of this, the gain was not charged with tax or a\\ndeduction was allowed for that loss or expense, as the case\\nmay be; and\\n(d) the Comptroller later discovers (called in this subsection\\nthe discovery time) that the gain ought to have been\\ncharged with tax as it was revenue in nature, or a deduction\\nought not to have been allowed for the loss or expense as it\\nwas capital in nature, as the case may be,\\nthen, and despite anything in this Act but subject to subsection (9), the\\namount of the gain, loss or expense, together with the additional\\nIncome Tax Act 1947\\n595\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\namount mentioned in subsection (8), is treated as the insurer’s income\\nfor the year of assessment within which the discovery time falls.\\n(8) The additional amount in subsection (7) is the amount of any\\nother gain, loss or expense in respect of the same financial\\ninstrument —\\n(a) that was not charged with tax, or for which a deduction was\\nallowed, for one or more past years of assessment, for the\\nsame reason as that in subsection (7)(b); and\\n(b) that is ascertained in accordance with the regulations made\\nunder subsection (13).\\n(9) No assessment may be made in respect of the income mentioned\\nin subsection (7) more than 4 years immediately after the end of the\\nyear of assessment of the basis period in which the financial\\ninstrument is disposed of by the insurer.\\n(10) If —\\n(a) any gain, loss or expense in respect of a financial\\ninstrument\\nof\\nan\\ninsurer\\nwas\\n(by\\nreason\\nof\\nsubsection (1)) that which was recognised and valued in\\naccordance with the Insurance Act regulations and\\nreflected in the statement of profit and loss that was part\\nof an MAS return on a certain date;\\n(b) it was not possible to determine, on the date the\\nComptroller made an assessment of the amount of\\nchargeable income of that insurer for the year of\\nassessment of the basis period in which the date\\nmentioned in paragraph (a) fell, whether that gain, loss\\nor expense was capital or revenue in nature;\\n(c) because of this, the gain was charged with tax or a\\ndeduction was not allowed for that loss or expense, as the\\ncase may be; and\\n(d) the Comptroller later discovers (called in this subsection\\nthe discovery time), with or without a claim made by the\\ninsurer, that the gain ought not to have been charged with\\ntax as it was capital in nature, or a deduction ought to have\\nIncome Tax Act 1947\\n2020 Ed.\\n596\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nbeen allowed for the loss or expense as it was revenue in\\nnature, as the case may be,\\nthen, and despite anything in this Act but subject to subsection (12),\\nthe amount of the gain, loss or expense, together with the additional\\namount mentioned in subsection (11), is to be allowed as a deduction\\nagainst the insurer’s income for the year of assessment within which\\nthe discovery time falls.\\n(11) The additional amount in subsection (10) is the amount of any\\nother gain, loss or expense in respect of the same financial\\ninstrument —\\n(a) that was charged with tax, or for which a deduction was not\\nmade, for one or more past years of assessment, for the\\nsame reason as that in subsection (10)(b); and\\n(b) that is ascertained in accordance with the regulations made\\nunder subsection (13).\\n(12) No claim mentioned in subsection (10)(d) may be made more\\nthan 4 years immediately after the end of the year of assessment of the\\nbasis period in which the financial instrument is disposed of by the\\ninsurer.\\n(13) For the purposes of this section, the Minister may make\\nregulations to give effect to this section, including —\\n(a) providing for the computation of the additional amounts\\nmentioned in subsections (8) and (11); and\\n(b) providing\\nfor\\nany\\ntransitional,\\nsupplementary\\nor\\nconsequential matter, including —\\n(i) treating a specified amount of any profit in respect of\\na financial instrument of a specified insurer, being an\\namount recognised and valued in accordance with\\nthe Insurance Act regulations and reflected in the\\nstatement of profit and loss that is part of an MAS\\nreturn as such profit as of the day immediately before\\nthe first day of the basis period in relation to which\\nthis section first applies to the insurer, as the insurer’s\\nincome for a specified year of assessment; and\\nIncome Tax Act 1947\\n597\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(ii) allowing a specified amount of any loss or expense in\\nrespect of a financial instrument of a specified\\ninsurer, being an amount recognised and valued in\\naccordance with the Insurance Act regulations and\\nreflected in the statement of profit and loss that is\\npart of an MAS return as such loss or expense as of\\nthe day immediately before the first day of the basis\\nperiod in relation to which this section first applies to\\nthe insurer, as a deduction against the insurer’s\\nincome for a specified year of assessment.\\n(14) In this section —\\n“contractual\\ninterest\\nrate”,\\nin\\nrelation\\nto\\nany\\nfinancial\\ninstrument, means the applicable interest rate specified in\\nthe financial instrument;\\n“credit-impaired financial asset” has the meaning given by\\nFRS 109 or SFRS(I) 9, as the case may be;\\n“debt securities” has the meaning given by section 43H(4);\\n“FRS 109” and “SFRS(I) 9” have the meanings given by\\nsection 34AA(15);\\n“Insurance Act regulations” means regulations made for the\\npurposes of section 16(5) of the Insurance Act 1966;\\n“MAS return”, in relation to an insurer, means the statements of\\naccount and other statements relating to the insurer’s business\\nprepared and lodged with the Monetary Authority of\\nSingapore under section 94(3) of the Insurance Act 1966;\\n“Monetary Authority of Singapore” means the Monetary\\nAuthority of Singapore established under section 3 of the\\nMonetary Authority of Singapore Act 1970;\\n“participating fund” and “surplus account” have the meanings\\ngiven by section 26(12).\\n[Act 33 of 2022 wef 04/11/2022]\\nIncome Tax Act 1947\\n2020 Ed.\\n598\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nChargeability of profit or loss from foreign exchange\\ndifferences\\n34AB.—(1) This section applies where a person is a party to a\\ntransaction that is or is to be settled in a currency that is different from\\nthe functional currency in which the person’s financial statements are\\nkept.\\n[45/2018]\\n(2) Despite the provisions of this Act, for the purpose of sections 10\\nand 14, any change in the value of any receivable or payable from the\\ntransaction that is reflected in the person’s financial statements, being\\na change arising from movements in the rates of the 2 currencies, is\\ntreated as —\\n(a) a gain accruing to the person; or\\n(b) a deductible expense,\\nas the case may be, in the basis period in which the change is\\nrecognised as a gain or loss (as the case may be) in the profit and loss\\naccount that is part of those financial statements.\\n[45/2018]\\n(3) To avoid doubt, subsection (2) —\\n(a) applies whether or not the gain or loss is realised; and\\n(b) does not apply to a transaction the gain or loss from which\\nis capital in nature.\\n[45/2018]\\n(4) Subsection (2) does not apply to a transaction relating to a\\nfinancial instrument to which section 34A, 34AA or 34AAA applies.\\n[45/2018]\\n[Act 33 of 2022 wef 04/11/2022]\\n(5) This section does not apply to a person who made an election to\\nthe Comptroller, at the time of lodgment of the person’s return of\\nincome for the year of assessment 2004, for any of the person’s\\nrecognised gains or losses mentioned in subsection (2) that were\\nunrealised, not to be treated as the person’s gain or loss for that year of\\nassessment and every subsequent year of assessment, for the purposes\\nof this Act.\\n[45/2018]\\nIncome Tax Act 1947\\n599\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(6) However, the person mentioned in subsection (5) may in the\\nperson’s return of income for any year of assessment, make an\\nirrevocable election to the Comptroller to be subject to this section,\\nand, if the election is approved by the Comptroller, this section\\napplies to that person for that year of assessment and every\\nsubsequent year of assessment.\\n[45/2018]\\nIslamic financing arrangements\\n34B.—(1) This section applies to any prescribed Islamic financing\\narrangement entered into on or after 17 February 2006 between any\\nperson and a financial institution.\\n(2) Subject to such exceptions, adaptations and modifications as\\nmay be prescribed, sections 10, 12, 13, 14, 15 and 45 and regulations\\nmade under section 43J apply in relation to any prescribed Islamic\\nfinancing arrangement as if a reference in any of those provisions to\\ninterest accrued, derived, received or incurred in relation to any loan,\\ndeposit or mortgage were a reference to the effective return of the\\narrangement.\\n(3) Where under a prescribed Islamic financing arrangement, an\\nasset is sold by one party to the arrangement to the other party, the\\neffective return of the arrangement must be excluded in determining\\nfor the purposes of this Act the consideration for the sale and\\npurchase of the asset.\\n(4) Subsection (3) does not affect the operation of any provision of\\nthis Act which provides that the consideration for a sale or purchase is\\nto be taken for any purpose to be an amount other than the actual\\nconsideration.\\n(5) For the purposes of this section, the Minister may make\\nregulations —\\n(a) to prescribe anything that is required or authorised to be\\nprescribed under this section;\\n(b) to provide for such transitional, supplementary and\\nconsequential matters as the Minister may consider\\nnecessary or expedient; and\\nIncome Tax Act 1947\\n2020 Ed.\\n600\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) generally to give effect to or for carrying out the purposes\\nof this section.\\n(6) In this section —\\n“effective return”, in relation to a prescribed Islamic financing\\narrangement, means the prescribed return in lieu of interest\\nthat has or is accrued, derived, received or incurred under the\\narrangement;\\n“financial institution” means —\\n(a) any institution in Singapore that is licensed or\\napproved by the Monetary Authority of Singapore,\\nor exempted from such licensing or approval, under\\nany written law administered by the Monetary\\nAuthority of Singapore; or\\n(b) any institution outside Singapore that is licensed or\\napproved, or exempted from such licensing or\\napproval, under any written law administered by its\\nfinancial supervisory authority for the carrying on of\\nfinancial activities;\\n“Islamic\\nfinancing\\narrangement”\\nmeans\\na\\nfinancing\\narrangement which is —\\n(a) endorsed by any Shari’ah council or body, or by any\\ncommittee formed for the purpose of providing\\nguidance on compliance with Shari’ah law; and\\n(b) permitted under any written law in Singapore or\\nelsewhere.\\nAmalgamation of companies\\n34C.—(1) This section only applies to a qualifying amalgamation.\\nInterpretation\\n(2) In this section —\\n“first 2 years of assessment”, in relation to an amalgamating\\ncompany, means the year of assessment relating to the basis\\nperiod during which the company is incorporated and the\\nIncome Tax Act 1947\\n601\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nyear of assessment immediately following that year of\\nassessment;\\n“FRS 38”, “FRS 103”, “SFRS(I) 1‑38” and “SFRS(I) 3” mean\\nthe financial reporting standards known respectively as —\\n(a) Financial Reporting Standard 38 (Intangible Assets);\\n(b) Financial\\nReporting\\nStandard\\n103\\n(Business\\nCombinations);\\n(c) Singapore\\nFinancial\\nReporting\\nStandard\\n(International) 1‑38 (Intangible Assets); and\\n(d) Singapore\\nFinancial\\nReporting\\nStandard\\n(International) 3 (Business Combinations),\\nthat are made by the Accounting Standards Committee under\\nPart 3 of the Accounting Standards Act 2007, as amended\\nfrom time to time;\\n[Act 36 of 2022 wef 01/04/2023]\\n“qualifying amalgamation” means —\\n(a) any amalgamation of companies where the notice of\\namalgamation under section 215F of the Companies\\nAct\\n1967\\nor\\na\\ncertificate\\nof\\napproval\\nunder\\nsection 14A of the Banking Act 1970 is issued on\\nor after 22 January 2009; and\\n(b) such other amalgamation of companies as the\\nMinister, or such person as the Minister may\\nappoint, may approve.\\n[32/2019]\\n(3) For the purpose of this section, the date of amalgamation of\\ncompanies is —\\n(a) the date shown on the notice of amalgamation under\\nsection 215F of the Companies Act 1967;\\n(b) the date of lodgment mentioned in section 14A(4) of the\\nBanking Act 1970; or\\nIncome Tax Act 1947\\n2020 Ed.\\n602\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) such date as specified in the letter of approval issued under\\nparagraph\\n(b)\\nof\\nthe\\ndefinition\\nof\\n“qualifying\\namalgamation” in subsection (2),\\nas the case may be.\\nElection for section to apply\\n(4) An amalgamated company in a qualifying amalgamation must,\\nwithin 90 days from the date of amalgamation or such further period\\nas the Comptroller may allow, elect for this section to apply to it and\\nall the amalgamating companies in the qualifying amalgamation.\\n(5) An election under subsection (4) must be made by an\\namalgamated company by written notice to the Comptroller and is\\nirrevocable.\\n(6) Upon such election, the trades and businesses carried on in\\nSingapore of all the amalgamating companies are treated as carried\\non in Singapore by the amalgamated company beginning from the\\ndate of amalgamation and —\\n(a) any property on revenue account of each amalgamating\\ncompany is, subject to subsection (14), treated as property\\non revenue account of the amalgamated company; and\\n(b) any property on capital account of each amalgamating\\ncompany is, subject to subsection (16), treated as property\\non capital account of the amalgamated company,\\nand the amalgamated company is treated as having acquired the\\nproperty on the date on which the amalgamating company acquired it\\nfor an amount that was incurred by the amalgamating company in\\nrespect of that property.\\nEffect of cancellation of shares\\n(7) Where an amalgamating company (called the firstmentioned\\ncompany) holds shares in another amalgamating company (called the\\nsecond‑mentioned company), and the shares of the second‑mentioned\\ncompany are cancelled on the amalgamation, the following\\nprovisions apply:\\nIncome Tax Act 1947\\n603\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(a) the firstmentioned company is treated as having disposed\\nof\\nthe\\nshares\\nin\\nthe\\nsecond‑mentioned\\ncompany\\nimmediately before the amalgamation for an amount\\nequal to the cost of the shares to the firstmentioned\\ncompany;\\n(b) if —\\n(i) the firstmentioned company has borrowed money to\\nacquire shares in the second‑mentioned company;\\nand\\n(ii) the liability arising from the money borrowed\\nreferred to in sub‑paragraph (i) is transferred to\\nand becomes the liability of the amalgamated\\ncompany,\\n(b) no deduction may be given for any interest or other\\nborrowing costs incurred by the amalgamated company on\\nor after the date of amalgamation on such liability.\\nTransfer of property\\n(8) Where there is a transfer of property from any amalgamating\\ncompany to the amalgamated company on the date of amalgamation\\nin respect of which allowances or writing‑down allowances have\\nbeen made to the amalgamating company under sections 16 to 21, the\\namalgamating company and the amalgamated company are, subject\\nto section 24(4), deemed to have made an election under\\nsection 24(3), and section 24(3)(a) to (e) applies, with the\\nnecessary modifications, whether or not the amalgamated company\\nis a company over which the amalgamating company has control, or\\nthe\\namalgamating\\ncompany\\nis\\na\\ncompany\\nover\\nwhich\\nthe\\namalgamated company has control, or both the amalgamating\\ncompany and amalgamated company are companies under the\\ncontrol of a common person.\\n(8A) Where there is a transfer of a building or structure from any\\namalgamating company to the amalgamated company on the date of\\namalgamation for which an allowance has been made to the\\namalgamating company under section 18C, the annual allowances\\nprovided under that section continue to be available to the\\nIncome Tax Act 1947\\n2020 Ed.\\n604\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\namalgamated company as if it had incurred the qualifying capital\\nexpenditure that was incurred in carrying out the approved\\nconstruction or approved renovation (as the case may be) referred\\nto in that section.\\n(8B) Subsection (8A) does not apply unless the building or\\nstructure is used before the transfer by the amalgamating company\\nand after the transfer by the amalgamated company, in the production\\nof income chargeable under the provisions of this Act.\\n(9) In\\nthe\\napplication\\nof\\nsection\\n24(3)(a)\\nto\\n(e)\\nunder\\nsubsection (8) —\\n(a) a reference in that provision to a buyer is a reference to the\\namalgamated company; and\\n(b) a reference in that provision to a seller is a reference to the\\namalgamating company.\\n(10) Where —\\n(a) there is a transfer of property, being intellectual property\\nrights in respect of which writing‑down allowances have\\nbeen\\nmade\\nto\\nan\\namalgamating\\ncompany\\nunder\\nsection 19B, from that amalgamating company to the\\namalgamated company on the date of amalgamation; and\\n(b) before the transfer in the case of that amalgamating\\ncompany and from any time on or after the transfer in the\\ncase of that amalgamated company, the property is used in\\nthe production of income chargeable under the provisions\\nof this Act,\\nthe following provisions, subject to subsection (18), apply:\\n(c) section 19B(4) and (5) does not apply to the amalgamating\\ncompany;\\n(d) the writing‑down allowances under section 19B continue\\nto be available to the amalgamated company as if no\\ntransfer had taken place;\\n(e) the charge under section 19B(4) and (5) is to be made on\\nthe amalgamated company on any event occurring on or\\nafter the date of amalgamation as would have fallen to be\\nIncome Tax Act 1947\\n605\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nmade on the amalgamating company if the amalgamating\\ncompany had continued to own the intellectual property\\nrights and had done all such things and been allowed all\\nsuch allowances as were done by or allowed to the\\namalgamated company.\\n(11) Despite section 32 but subject to subsection (18), where there\\nis a transfer of property, being trading stock to both an amalgamating\\ncompany and the amalgamated company, from that amalgamating\\ncompany\\nto\\nthe\\namalgamated\\ncompany\\non\\nthe\\ndate\\nof\\namalgamation —\\n(a) the net book value of the trading stock of the amalgamating\\ncompany is deemed to be the value of the consideration\\ngiven by the amalgamated company to the amalgamating\\ncompany for such transfer on the date of amalgamation for\\nthe purpose of deducting the cost of trading stock to the\\namalgamated company as an expense in computing the\\ngains or profits of the trade or business of the amalgamated\\ncompany; and\\n(b) only the amount of provision of diminution in value\\ncomputed by reference to the net book value referred to in\\nparagraph (a) of the trading stock (if any) may be allowed\\nas a deduction to the amalgamated company.\\n(12) Despite subsection (11), the value as reflected in the financial\\naccounts of the amalgamated company on the date of amalgamation\\nis taken as the value of the consideration given by the amalgamated\\ncompany to the amalgamating company for the transfer of the trading\\nstock on the date of amalgamation for the purpose of —\\n(a) computing the gains or profits of the trade or business of\\nthat amalgamating company; and\\n(b) deducting the cost of trading stock to the amalgamated\\ncompany as an expense in computing the gains or profits of\\nthe trade or business of the amalgamated company,\\nif the amalgamated company has made an irrevocable election to that\\neffect.\\nIncome Tax Act 1947\\n2020 Ed.\\n606\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(13) Any gains or profits of the trade or business of the\\namalgamating\\ncompany\\nreferred\\nto\\nin\\nsubsection\\n(12)\\nare\\nchargeable to tax for the year of assessment which relates to the\\nbasis period in which the date of amalgamation falls.\\n(14) Where there is a transfer of property from an amalgamating\\ncompany to the amalgamated company, being property on revenue\\naccount of the amalgamating company but not on revenue account of\\nthe amalgamated company, the consideration for the transfer by the\\namalgamating company is taken as the amount which it would have\\nrealised if the property had been sold in the open market on the date of\\namalgamation.\\n(15) The amount of consideration referred to in subsection (14) is to\\nbe used to compute the gains or profits of the trade or business of the\\namalgamating company and such gains or profits are chargeable to\\ntax for the year of assessment which relates to the basis period in\\nwhich the date of amalgamation falls.\\n(16) Where there is a transfer of property from an amalgamating\\ncompany to the amalgamated company, being property not on\\nrevenue account of the amalgamating company but on revenue\\naccount of the amalgamated company, the consideration for the\\nacquisition by the amalgamated company is taken as the amount\\nwhich it would have incurred if the property had been purchased in\\nthe open market on the date of amalgamation or the actual amount\\npaid, whichever is the lower.\\n(17) The amount of consideration referred to in subsection (16) is to\\nbe deducted as an expense in computing the gains or profits of the\\ntrade or business of the amalgamated company.\\n(18) Where the amalgamated company ceases to carry on the trade\\nand business in Singapore after the date of amalgamation but instead\\ncarries on that trade and business outside Singapore —\\n(a) in the case of trading stock which has been transferred at\\nnet book value under subsection (11)(a), section 32(1)(b)\\napplies as if that trade and business has been discontinued\\nor transferred on the date of cessation of the trade and\\nbusiness in Singapore, and any gain is chargeable to tax for\\nthe year of assessment relating to the basis period in which\\nIncome Tax Act 1947\\n607\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthe amalgamated company ceases to carry on that trade and\\nbusiness in Singapore;\\n(b) in the case of property, being intellectual property rights in\\nrespect of which subsection (10) applies, the charge under\\nsection 19B(4) or (5) (as the case may be) is to be made on\\nthe amalgamated company as if the property has been sold\\non the date of cessation of the trade and business in\\nSingapore; and for the purpose of computing the charge\\nunder section 19B(5), the value thereof is the amount\\nwhich it would have realised if the property had been sold\\nin the open market on the date of cessation of such trade\\nand business in Singapore.\\n(19) Any question arising under subsections (14), (16) and (18)\\nregarding the open market value attributable to property or trading\\nstock (as the case may be) is to be determined by the Comptroller.\\nDeductions for intellectual property rights\\n(20) No\\ndeduction\\nunder\\nsection\\n19B\\nis\\nallowed\\nto\\nthe\\namalgamated\\ncompany\\nfor\\nany\\nintellectual\\nproperty\\nrights\\nrecognised in accordance with FRS 38 and FRS 103, or with\\nSFRS(I) 1‑38 and SFRS(I) 3, as a result of the amalgamation but\\nwhich were not in existence prior to the amalgamation.\\n[32/2019]\\nDeductions for bad debts, expenditure, losses, etc.\\n(21) Where —\\n(a) an amalgamating company ceases to exist on the date of\\namalgamation; and\\n(b) the amalgamated company continues to carry on the trade\\nand business of the amalgamating company and at any\\ntime —\\n(i) writes off as bad the amount of a debt, or provides\\nimpairment loss in respect of a debt, that it acquires\\nfrom the amalgamating company on the date of\\namalgamation;\\nIncome Tax Act 1947\\n2020 Ed.\\n608\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(ii) incurs an expenditure, other than the expenditure to\\nwhich prescribed sections of this Act apply; or\\n(iii) incurs a loss,\\nthe amalgamated company —\\n(c) is allowed a deduction for the amount of the debt,\\nexpenditure or loss (as the case may be) if —\\n(i) the\\namalgamating\\ncompany\\nwould\\nhave\\nbeen\\nallowed the deduction but for the amalgamation; and\\n(ii) the amalgamated company is not otherwise allowed\\nthe deduction; and\\n(d) is chargeable to tax on the amount of the debt recovered or\\nimpairment loss that is reversed if —\\n(i) the\\namalgamating\\ncompany\\nwould\\nhave\\nbeen\\nchargeable to tax on such amount but for the\\namalgamation; and\\n(ii) the\\namalgamated\\ncompany\\nis\\nnot\\notherwise\\nchargeable to tax on such amount.\\n(22) Where —\\n(a) an amalgamating company has been allowed a deduction\\nin respect of any debt written off as bad or impairment loss,\\nand it ceases to exist on the date of amalgamation; and\\n(b) the amalgamated company continues to carry on the trade\\nand business of the amalgamating company,\\nthe amalgamated company is chargeable to tax on the amount of the\\ndebt recovered or impairment loss that is reversed if —\\n(c) the amalgamating company would have been chargeable to\\ntax on such amount but for the amalgamation; and\\n(d) the amalgamated company is not otherwise chargeable to\\ntax on such amount.\\n(23) Where —\\n(a) an amalgamating company ceases to exist on the date of\\namalgamation; and\\nIncome Tax Act 1947\\n609\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) the amalgamating company has any capital allowance,\\ndonation or loss remaining unabsorbed on the date of\\namalgamation,\\nsections 23 and 37 apply, with the necessary modifications, as if the\\namalgamated company is the amalgamating company for the\\npurposes of deducting the unabsorbed capital allowance, donation\\nor loss against the income or the statutory income (as the case may be)\\nof the amalgamated company, subject to conditions specified in\\nsubsection (24).\\n(24) The conditions referred to in subsection (23) are —\\n(a) the amalgamating company was carrying on a trade or\\nbusiness until the amalgamation; and\\n(b) the amalgamated company continues to carry on the same\\ntrade or business on the date of amalgamation as that of the\\namalgamating company from which the unabsorbed\\ncapital allowance, donation or loss was transferred.\\n(25) Any deduction referred to in subsection (23) may only be made\\nagainst the income of the amalgamated company from the same trade\\nor business as that of the amalgamating company immediately before\\nthe amalgamation.\\nAmalgamating company as qualifying person under section 34A\\n(26) Where any of the amalgamating companies is a qualifying\\nperson to which section 34A applies —\\n(a) the amalgamated company is deemed to be a qualifying\\nperson for the purpose of section 34A, and section 34A has\\neffect on the amalgamated company; and\\n(b) the rules on the adjustment on change of basis of\\ncomputing profits of financial instruments set out in\\nregulations made under section 34A have effect on any\\namalgamating company which before the amalgamation is\\nnot a qualifying person to which section 34A applies, and\\nany positive or negative adjustment which is not of a\\ncapital nature as a result of the application of such rules is\\nto be assessed on or allowed to the amalgamated company.\\nIncome Tax Act 1947\\n2020 Ed.\\n610\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nAmalgamated company as qualifying company under\\nsection 43(6C)\\n(27) Where all the amalgamating companies cease to exist on the\\ndate of amalgamation, and the amalgamated company is a qualifying\\ncompany for the purpose of section 43(6C) in any year of assessment,\\nthen, for that year of assessment —\\n(a) in a case where the date of amalgamation does not fall\\nwithin either of the basis periods of the first 2 years of\\nassessment of any of the amalgamating companies,\\nsection 43(6) rather than section 43(6C) applies to the\\namalgamated company; and\\n(b) in a case where the date of amalgamation falls within either\\nof the basis periods of the first 2 years of assessment of any\\nof the amalgamating companies, section 43(6C) applies to\\nthe\\namalgamated\\ncompany\\nif,\\nand\\nonly\\nif,\\nthe\\nfirstmentioned year of assessment falls within such\\nperiod as may be prescribed by the Minister, and if it\\ndoes not, then section 43(6) applies to the amalgamated\\ncompany.\\n[45/2018]\\n(28) The Minister may, for different descriptions of amalgamations\\nor companies, prescribe different periods for the purposes of\\nsubsection (27)(b).\\nRights and obligations of amalgamated company\\n(29) Where any amalgamating company ceases to exist on the date\\nof amalgamation, the amalgamated company must comply with all\\nobligations, meet all liabilities, and is entitled to all rights, powers and\\nprivileges, of the amalgamating company under this Act with respect\\nto the year of assessment relating to the basis period in which the\\namalgamation occurs and all preceding years of assessment as if the\\namalgamated company is the amalgamating company.\\nIncome Tax Act 1947\\n611\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nRegulations\\n(30) The Minister may by regulations provide —\\n(a) for\\nthe\\ndeduction\\nof\\nexpenses,\\nallowances,\\nlosses,\\ndonations and any other deductions otherwise than in\\naccordance with this Act;\\n(b) the manner and extent to which expenses, allowances,\\nlosses, donations and any other deductions may be allowed\\nunder this Act;\\n(c) the manner and extent to which any qualifying deduction\\nmay be allowed under section 37B or 37D;\\n(d) the rate of exchange to be used for the purpose of\\nsection 62B;\\n(e) for the modification and exception to any prescribed\\nsection of this Act or the Economic Expansion Incentives\\n(Relief from Income Tax) Act 1967 as it applies to an\\namalgamated company and an amalgamating company;\\nand\\n(f) generally for giving full effect to or for carrying out the\\npurposes of this section.\\nTransfer of businesses by insurer\\n34CA.—(1) This section applies to a case where —\\n(a) a licensed insurer that is a company incorporated in\\nSingapore (called in this section the transferor) transfers\\nthe whole of its insurance business along with all\\nbusinesses ancillary to it if any (collectively called in\\nthis section the insurance business), to another company\\nincorporated in Singapore (called in this section the\\ntransferee) under Division 1 of Part\\n3AA of the\\nInsurance Act 1966, and the scheme for the transfer\\nunder section 117 of that Act takes effect on a single date\\n(called in this section date A) that is on or after\\n1 November 2021;\\nIncome Tax Act 1947\\n2020 Ed.\\n612\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) the conditions for the application of this section to the\\ntransfer in paragraph (a) as set out in subsection (3) are\\nsatisfied;\\n(c) the transferor also transfers all of its other trades and\\nbusinesses (each called in this section a non‑insurance\\nbusiness), if any, to the transferee, and the transfer of every\\nnon‑insurance business takes effect on a single date (called\\nin this section date B) that is no earlier than 12 months\\nbefore date A and no later than 12 months after date A;\\n(d) the transferee has obtained approval under subsection (4)\\nto the application of this section to the transfer of every\\nnon‑insurance business in paragraph (c);\\n(e) the conditions of the approval in subsection (5) are\\nsatisfied; and\\n(f) the transferee makes an election under subsection (6) for\\nthe application of this section to the transfer of those\\nbusinesses.\\nInterpretation\\n(2) In this section —\\n“effective date”, in relation to a transferred business, means —\\n(a) where the transferred business is the insurance\\nbusiness — date A; and\\n(b) where the transferred business is any non-insurance\\nbusiness — date B;\\n“first 2 years of assessment”, in relation to a transferor, means\\nthe year of assessment relating to the basis period during\\nwhich the transferor is incorporated and the year of\\nassessment immediately following that year of assessment;\\n“FRS 38”, “FRS 103”, “SFRS(I) 1-38” and “SFRS(I) 3” mean\\nthe financial reporting standards known respectively as —\\n(a) Financial Reporting Standard 38 (Intangible Assets);\\nIncome Tax Act 1947\\n613\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) Financial\\nReporting\\nStandard\\n103\\n(Business\\nCombinations);\\n(c) Singapore\\nFinancial\\nReporting\\nStandard\\n(International) 1-38 (Intangible Assets); and\\n(d) Singapore\\nFinancial\\nReporting\\nStandard\\n(International) 3 (Business Combinations),\\nthat are made by the Accounting Standards Committee under\\nPart 3 of the Accounting Standards Act 2007, as amended\\nfrom time to time;\\n[Act 36 of 2022 wef 01/04/2023]\\n“licensed insurer” has the meaning given by section 2 of the\\nInsurance Act 1966;\\n“transferred business” means the insurance business or any of\\nthe non‑insurance businesses, as the case may be.\\nConditions for transfer of insurance business\\n(3) In subsection (1)(b), the conditions are —\\n(a) all the properties, rights and privileges of the insurance\\nbusiness are transferred to and vest in the transferee on\\ndate A;\\n(b) all the liabilities and obligations of the insurance business\\nare transferred to and become the liabilities and obligations\\nof the transferee on date A;\\n(c) the transferor permanently ceases to carry on the insurance\\nbusiness on date A;\\n(d) the transferor is wound up or dissolved before the\\nprescribed date; and\\n(e) such other conditions as may be prescribed by regulations\\nunder subsection (31).\\nApproval for transfer of non-insurance business\\n(4) The transferee must, within 90 days from date A or date B\\n(whichever is earlier) or such further period as the Minister or such\\nperson as the Minister may appoint may allow, apply to the Minister\\nIncome Tax Act 1947\\n2020 Ed.\\n614\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nor person for approval for this section to apply to the transfer of the\\nnon‑insurance business or businesses in subsection (1)(c).\\n(5) The Minister or appointed person may give his or her approval\\nsubject to such conditions (including conditions subsequent) as he or\\nshe considers appropriate.\\nElection\\n(6) The transferee must, within 90 days from date A or date B\\n(whichever is later) or such further period as the Comptroller may\\nallow, elect for this section to apply to the transfers of businesses in\\nsubsection (1).\\n(7) An election under subsection (6) must be made by the transferee\\nby written notice to the Comptroller and is irrevocable.\\n(8) From (and including) the effective date, the transferred business\\nis treated as carried on in Singapore by the transferee and —\\n(a) subject to subsection (14), any property on revenue\\naccount of the transferor relating to the transferred\\nbusiness is treated as property on revenue account of the\\ntransferee; and\\n(b) subject to subsection (16), any property on capital account\\nof the transferor relating to the transferred business is\\ntreated as property on capital account of the transferee,\\nand the transferee is treated as having acquired the property on the\\ndate on which the transferor acquired it for the amount that was\\nincurred by the transferor in respect of that property.\\nTransfer of property\\n(9) Where there is a transfer of property in respect of the transferred\\nbusiness from the transferor to the transferee on the effective date in\\nrespect of which allowances or writing-down allowances have been\\nmade to the transferor under sections 18C to 21 (other than\\nsection 19D), the transferor and the transferee are, subject to\\nsection 24(4), considered as having made an election under\\nsection 24(3), and section 24(3)(a) to (e) applies with the necessary\\nmodifications, whether or not —\\nIncome Tax Act 1947\\n615\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(a) the transferee is a company over which the transferor has\\ncontrol;\\n(b) the transferor is a company over which the transferee has\\ncontrol; or\\n(c) both the transferor and transferee are companies under the\\ncontrol of a common person.\\n(10) In\\nthe\\napplication\\nof\\nsection\\n24(3)(a)\\nto\\n(e)\\nunder\\nsubsection (9) —\\n(a) a reference in that provision to a buyer is to the transferee;\\nand\\n(b) a reference in that provision to a seller is to the transferor.\\n(11) Where there is a transfer of a building or structure in respect of\\nthe transferred business from the transferor to the transferee on the\\neffective date for which an allowance has been made to the transferor\\nunder section 18C, the annual allowances provided under that section\\ncontinue to be available to the transferee as if the transferee had\\nincurred the qualifying capital expenditure that was incurred in\\ncarrying out the approved construction or approved renovation (as the\\ncase may be) mentioned in that section.\\n(12) Subsection (11) does not apply unless the building or structure\\nis used before the transfer by the transferor and after the transfer by\\nthe transferee, in the production of income chargeable under the\\nprovisions of this Act.\\n(13) Where —\\n(a) there is a transfer of property in respect of the transferred\\nbusiness (being intellectual property rights in respect of\\nwhich writing-down allowances have been made to the\\ntransferor under section 19B) from that transferor to the\\ntransferee on the effective date; and\\n(b) before the transfer in the case of that transferor and from\\nany time on or after the transfer in the case of that\\ntransferee, the property is used in the production of income\\nchargeable under the provisions of this Act,\\nIncome Tax Act 1947\\n2020 Ed.\\n616\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthe following provisions apply but subject to subsection (18):\\n(c) section 19B(4) and (5) does not apply to the transferor;\\n(d) the writing-down allowances under section 19B continue\\nto be available to the transferee as if no transfer had taken\\nplace;\\n(e) the charge under section 19B(4) and (5) is to be made on\\nthe transferee on any event occurring on or after the\\neffective date as would have fallen to be made on the\\ntransferor if the transferor had continued to own the\\nintellectual property rights and had done all such things\\nand been allowed all such allowances as were done by or\\nallowed to the transferee.\\n(14) Where there is a transfer of property in respect of the\\ntransferred business from the transferor to the transferee, being\\nproperty on revenue account of the transferor but not on revenue\\naccount of the transferee, the consideration for the transfer of the\\nproperty by the transferor is taken as the amount which it would have\\nrealised if the property had been sold in the open market on the\\neffective date.\\n(15) The amount of consideration mentioned in subsection (14) is\\nto be used to compute the gains or profits of the transferred business\\nof the transferor and such gains or profits are chargeable to tax for the\\nyear of assessment which relates to the basis period in which the\\neffective date falls.\\n(16) Where there is a transfer of property in respect of the\\ntransferred business from the transferor to the transferee, being\\nproperty not on revenue account of the transferor but on revenue\\naccount of the transferee, the consideration for the acquisition of the\\nproperty by the transferee is taken as the amount which it would have\\nincurred if the property had been purchased in the open market on the\\neffective date or the actual amount paid, whichever is lower.\\n(17) The amount of consideration mentioned in subsection (16) is\\nto be deducted as an expense in computing the gains or profits of the\\ntransferred business of the transferee.\\nIncome Tax Act 1947\\n617\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(18) Where the transferee ceases to carry on the transferred\\nbusiness in Singapore after the effective date but instead carries on\\nthat business outside Singapore, then in the case of intellectual\\nproperty rights transferred pursuant to the transfer of that business\\nand in respect of which subsection (13) applies, the charge under\\nsection 19B(4) or (5) (as the case may be) is to be made on the\\ntransferee as if the property has been sold on the date of cessation of\\nthe transferred business in Singapore; and for the purpose of\\ncomputing the charge under section 19B(5), the value thereof is the\\namount which it would have realised if the property had been sold in\\nthe open market on the date of cessation of the transferred business in\\nSingapore.\\n(19) Any question arising under subsections (14), (16) and (18)\\nregarding the open market value attributable to property is to be\\ndetermined by the Comptroller.\\n(20) No deduction under section 19B is allowed to the transferee for\\nany intellectual property rights in respect of the transferred business\\nthat are recognised in accordance with FRS 38 and FRS 103, or with\\nSFRS(I) 1‑38 and SFRS(I) 3, as a result of the transfer of the business\\nbut which were not in existence prior to the transfer of the business.\\n(21) Where the transferee continues to carry on the transferred\\nbusiness and at any time —\\n(a) writes off as bad the amount of a debt in respect of the\\ntransferred business, or provides impairment loss in\\nrespect of such debt, that the transferee acquires from\\nthe transferor on the effective date;\\n(b) incurs an expenditure in respect of the transferred business,\\nother than the expenditure to which prescribed sections of\\nthis Act apply; or\\n(c) incurs a loss in respect of the transferred business,\\nthe transferee —\\n(d) is allowed a deduction for the amount of the debt,\\nexpenditure or loss (as the case may be) if —\\nIncome Tax Act 1947\\n2020 Ed.\\n618\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(i) the\\ntransferor\\nwould\\nhave\\nbeen\\nallowed\\nthe\\ndeduction but for the transfer of the business; and\\n(ii) the transferee is not otherwise allowed the deduction;\\nand\\n(e) is chargeable to tax on the amount of the debt recovered or\\nimpairment loss that is reversed if —\\n(i) the transferor would have been chargeable to tax on\\nsuch amount but for the transfer of the business; and\\n(ii) the transferee is not otherwise chargeable to tax on\\nsuch amount.\\n(22) Where —\\n(a) the transferor has been allowed a deduction in respect of\\nany debt written off as bad, or any impairment loss, in\\nrespect of the transferred business; and\\n(b) the transferee continues to carry on the transferred\\nbusiness,\\nthe transferee is chargeable to tax on the amount of the debt recovered\\nor impairment loss that is reversed if —\\n(c) the transferor would have been chargeable to tax on such\\namount but for the transfer of the business; and\\n(d) the transferee is not otherwise chargeable to tax on such\\namount.\\n(23) Where the transferor has any capital allowance, donation or\\nloss attributable or apportioned to the transferred business remaining\\nunabsorbed on the effective date, then sections 23 and 37 apply, with\\nthe necessary modifications, as if the transferee is the transferor for\\nthe purposes of deducting the unabsorbed capital allowance, donation\\nor loss against the income or the statutory income (as the case may be)\\nof the transferee, subject to the conditions in subsection (24).\\n(24) The conditions in subsection (23) are —\\n(a) the transferor was carrying on the transferred business until\\nthe effective date; and\\nIncome Tax Act 1947\\n619\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) the transferee continues to carry on the transferred business\\non the effective date.\\n(25) Any deduction mentioned in subsection (23) may only be\\nmade against the income of the transferee from the transferred\\nbusiness.\\n(26) For the purpose of bringing into account the profit, loss or\\nexpense for the basis period for a year of assessment beginning before\\n1 January 2023 in respect of any financial instrument that has been\\ntransferred by the transferor to the transferee as part of the transfer of\\na business —\\n(a) where the transferor was a qualifying person to which\\nsection 34AA\\napplies\\n(called in\\nthis\\nsubsection\\na\\nsection\\n34AA\\nqualifying\\nperson)\\nfor\\nthe\\nyear\\nof\\nassessment of the basis period in which the effective\\ndate falls — the transferee is (unless the transferee was\\nalready one) deemed to be a section 34AA qualifying\\nperson for that year of assessment, and section 34AA has\\neffect on the transferee from (and including) the effective\\ndate;\\n(b) where the transferor was not a section 34AA qualifying\\nperson for the year of assessment of the basis period in\\nwhich the effective date falls, but the transferee was a\\nsection\\n34AA\\nqualifying\\nperson\\nfor\\nthat\\nyear\\nof\\nassessment — the regulations under section 34AA that\\nprovide for the transition of a person to the tax treatment\\nunder section 34AA have effect on the transferor for that\\nyear of assessment as if the transferor and transferee were a\\nsingle section 34AA qualifying person, and any positive or\\nnegative adjustment which is not of a capital nature as a\\nresult of the application of such regulations is to be\\nassessed on or allowed to the transferee;\\n(c) where the transferor was a qualifying person to which\\nsection 34A applies (called in this subsection a section 34A\\nqualifying person) for the year of assessment of the basis\\nperiod in which the effective date falls — the transferee is\\n(unless the transferee was already a section 34A qualifying\\nIncome Tax Act 1947\\n2020 Ed.\\n620\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nperson, or a section 34AA qualifying person, for that year\\nof assessment) deemed to be a section 34A qualifying\\nperson for that year of assessment, and section 34A has\\neffect on the transferee from (and including) the effective\\ndate; or\\n(d) where the transferor was neither a section 34A qualifying\\nperson, nor a section 34AA qualifying person, for the year\\nof assessment of the basis period in which the effective\\ndate falls, but the transferee was a section 34A qualifying\\nperson for that year of assessment — the regulations under\\nsection 34A that provide for the transition of a person to the\\ntax treatment under section 34A have effect on the\\ntransferor for that year of assessment as if the transferor\\nand the transferee were a single section 34A qualifying\\nperson, and any positive or negative adjustment which is\\nnot of a capital nature as a result of the application of such\\nregulations is to be assessed on or allowed to the transferee.\\nTransferee as qualifying company under section 43(6C)\\n(27) Where the transferee is a qualifying company for the purpose\\nof section 43(6C) in any year of assessment, then, for that year of\\nassessment —\\n(a) in a case where the earlier of date A and date B does not fall\\nwithin either of the basis periods of the first 2 years of\\nassessment of the transferor, section 43(6) rather than\\nsection 43(6C) applies to the transferee; and\\n(b) in a case where the earlier of date A and date B falls within\\neither of the basis periods of the first 2 years of assessment\\nof the transferor, section 43(6C) applies to the transferee if,\\nand only if, the firstmentioned year of assessment falls\\nwithin such period as may be prescribed by the Minister,\\nand if it does not, then section 43(6) applies to the\\ntransferee.\\n(28) The Minister may, for different descriptions of transfers of\\nbusinesses or companies, prescribe different periods for the purposes\\nof subsection (27)(b).\\nIncome Tax Act 1947\\n621\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(29) Starting on the effective date for the transferred business, the\\ntransferee must comply with all obligations, meet all liabilities, and is\\nentitled to all rights, powers and privileges, of the transferor under\\nthis Act in respect of the business with respect to the year of\\nassessment relating to the basis period in which the effective date\\nfalls, and all preceding years of assessment as if the transferee is the\\ntransferor.\\nApplication of section 26(5) and (13)\\n(30) To avoid doubt, section 26(5) and (13) (if applicable) applies in\\nrelation to the transfer of the insurance business in subsection (1)(a).\\nRegulations\\n(31) The Minister may make regulations to —\\n(a) provide for the deduction of expenses, allowances, losses,\\ndonations and any other deductions otherwise than in\\naccordance with this Act;\\n(b) provide for the manner and extent to which expenses,\\nallowances, losses, donations and any other deductions\\nmay be allowed under this Act;\\n(c) provide for the manner and extent to which any qualifying\\ndeduction may be allowed under section 37B or 37D;\\n(d) provide for the rate of exchange to be used for the purpose\\nof section 62B;\\n(e) provide for the modification and exception to any\\nprescribed\\nsection\\nof\\nthis\\nAct\\nor\\nthe\\nEconomic\\nExpansion Incentives (Relief from Income Tax) Act\\n1967 as it applies to a transferee and a transferor;\\n(f) provide, in a case where a requirement in subsection (1) is\\nyet to be satisfied, for this section (or any part of it) to\\nnevertheless\\napply\\nto\\nthat\\ncase\\n(with\\nor\\nwithout\\nmodification),\\nand\\nfor\\nthe\\nreversal\\nof\\nany\\nsuch\\napplication, and the amendment of any assessments\\npreviously made, if that requirement is not met; and\\n[Act 30 of 2023 wef 30/10/2023]\\nIncome Tax Act 1947\\n2020 Ed.\\n622\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(g) prescribe any matter required or permitted to be prescribed\\nunder this section.\\n(32) Regulations made under subsection (31) may be made to take\\neffect from (and including) a date no earlier than 1 November 2021.\\n[Act 33 of 2022 wef 01/11/2021]\\nTransactions not at arm’s length\\n34D.—(1) Subsection (1A) applies where —\\n(a) 2 persons are related parties;\\n(b) conditions are made or imposed between them in their\\ncommercial or financial relations (called in this section\\nactual commercial or financial relations) which differ from\\nconditions which would be made or imposed if they were\\nnot related parties and dealing independently with one\\nanother in comparable circumstances (called in this section\\narm’s length conditions); and\\n(c) had the arm’s length conditions been made or imposed —\\n(i) the amount of the income of one of those persons for\\na year of assessment that accrued in or is derived\\nfrom Singapore, or is received in Singapore from\\noutside Singapore, would be greater;\\n(ii) the amount of any deduction that may be allowed to\\none of those persons for a year of assessment would\\nbe less; or\\n(iii) the amount of any loss of one of those persons for a\\nyear of assessment would be less.\\n[39/2017]\\n(1A) The Comptroller may make one or more of the following\\nadjustments in that case, as appropriate:\\n(a) increase the amount of the income of the person mentioned\\nin subsection (1)(c)(i) for the year of assessment;\\n(b) reduce the amount of the deduction that may be allowed to\\nthe person mentioned in subsection (1)(c)(ii) for the year of\\nassessment;\\nIncome Tax Act 1947\\n623\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) reduce the amount of the loss of the person mentioned in\\nsubsection (1)(c)(iii) for the year of assessment.\\n[39/2017]\\n(1B) The\\nidentification\\nof\\nthe\\narm’s\\nlength\\nconditions\\nin\\nsubsection (1)(b) must be carried out —\\n(a) on the basis of the actual commercial or financial relations\\nbetween the 2 persons; and\\n(b) by taking into account both the form and substance of those\\nrelations, but disregarding the form of those relations to the\\nextent it is inconsistent with their substance.\\n[39/2017]\\n(1C) Despite subsection (1B) —\\n(a) if persons who were not related parties would in\\ncomparable\\ncircumstances\\nenter\\ninto\\nsubstantially\\ndifferent commercial or financial relations than the\\nactual\\ncommercial\\nor\\nfinancial\\nrelations,\\nthen\\nthe\\nidentification of the arm’s length conditions must be\\ncarried out on the basis of the firstmentioned relations; and\\n(b) if persons who were not related parties would in\\ncomparable circumstances not enter into commercial or\\nfinancial relations, then the identification of the arm’s\\nlength conditions must be carried out on the basis of the\\nabsence of commercial or financial relations.\\n[39/2017]\\n(1D) The\\namount\\nof\\nincome\\nthat\\nis\\nincreased\\nunder\\nsubsection (1A)(a) is treated as accruing in or derived from\\nSingapore or received in Singapore from outside Singapore, as the\\ncase may be.\\n[39/2017]\\n(1E) The amount of loss that is reduced under subsection (1A)(c) is\\ntreated as not having been incurred.\\n[39/2017]\\n(2) Where a person carries on business through a permanent\\nestablishment, this section applies as if the person and the permanent\\nestablishment are 2 separate and distinct persons.\\nIncome Tax Act 1947\\n2020 Ed.\\n624\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(2A) Nothing\\nin\\nthis\\nsection\\nprevents\\nthe\\napplicability\\nof\\nsubsection (1) to a case, or the Comptroller’s decision under\\nsubsection (1A) on a case, from being questioned in an appeal\\nagainst an assessment in accordance with Part 18.\\n[39/2017]\\n(3) [Deleted by Act 33 of 2022 wef 04/11/2022]\\nSurcharge on transfer pricing adjustments\\n34E.—(1) Where the Comptroller, in relation to the year of\\nassessment 2019 or any subsequent year of assessment —\\n(a) increases the amount of the income of a person under\\nsection 34D(1A)(a);\\n(b) reduces the amount of any deduction allowed to a person\\nunder section 34D(1A)(b); or\\n(c) reduces the amount of any loss of a person under\\nsection 34D(1A)(c),\\na surcharge equal to 5% of the amount of the increase or reduction (as\\nthe case may be) is recoverable by the Comptroller from the person as\\na debt due to the Government.\\n[39/2017]\\n(2) Despite any objection to or an appeal lodged against an\\nassessment\\nmade\\npursuant\\nto\\nany\\nadjustment\\nunder\\nsection 34D(1A), the surcharge must be paid —\\n(a) within one month after the date a written notice of the\\nsurcharge is served in accordance with section 8(1) on the\\nperson imposed with the surcharge; and\\n(b) in the manner stated in the written notice.\\n[27/2021]\\n(3) The Comptroller may, in the Comptroller’s discretion, and\\nsubject to such terms and conditions (including the imposition of\\ninterest) as the Comptroller may impose, extend the time within\\nwhich payment is to be made.\\n[39/2017]\\nIncome Tax Act 1947\\n625\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(4) Sections 86(1) to (6), 87(1) and (2), 89, 90 and 91 apply to the\\ncollection and recovery of a surcharge and any interest imposed under\\nsubsection (3), as they apply to the collection and recovery of tax.\\n[39/2017]\\n(5) The Comptroller may, for any good cause, remit wholly or in\\npart any surcharge payable under this section.\\n[39/2017]\\n(6) If, upon an objection under section 76 or an appeal under\\nPart 18, an assessment made pursuant to an adjustment under\\nsection 34D(1A) is varied or annulled, then the surcharge is\\ncorrespondingly increased, reduced or annulled (as the case may\\nbe), and —\\n(a) if the surcharge is increased, subsections (1) to (5) apply to\\nthe increased amount of the surcharge as they apply to the\\nsurcharge; or\\n(b) if the surcharge is reduced or annulled and it has already\\nbeen paid to the Comptroller, the amount of the reduction\\nor the entire amount (including any interest paid on the\\namount) must be refunded.\\n[39/2017]\\nTransfer pricing documentation\\n34F.—(1) This section applies to the basis period for the year of\\nassessment 2019 and every subsequent year of assessment.\\n[39/2017]\\n(2) This section applies to a company, firm or trust —\\n(a) if the gross revenue of the company, firm or trust derived\\nfrom its trade or business for the basis period concerned is\\nmore than $10 million; or\\n(b) if documentation under subsection (3) is required to be\\nprepared for a transaction undertaken by the company, the\\nfirm, or the trustee of the trust on its behalf, in the basis\\nperiod immediately before the basis period concerned.\\n[39/2017]\\n(3) Unless exempt by rules made under section 7, each of the\\nfollowing, namely:\\nIncome Tax Act 1947\\n2020 Ed.\\n626\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(a) the company;\\n(b) the person making a return of the income of the firm;\\n(c) the trustee of the trust,\\nmust prepare documentation (called in this section transfer pricing\\ndocumentation) that complies with subsection (5) for each transaction\\nundertaken by the company, the firm or the trustee on behalf of the\\ntrust (as the case may be), with a related party in the basis period\\nconcerned.\\n[39/2017]\\n(4) In subsection (3)(b), the person making a return of the income of\\na firm is, in the case of a partnership, the person responsible for doing\\nso under section 71.\\n[39/2017]\\n(5) The transfer pricing documentation —\\n(a) must be prepared no later than the time for the making of\\nthe return of the income of the company, the firm or the\\ntrustee in relation to the trust for the year of assessment;\\n(b) must contain such details as may be prescribed by rules\\nmade under section 7 of the commercial or financial\\nrelations of the parties as respects the transaction, the\\nconditions made or imposed between them as respects the\\ntransaction, as well as an explanation as to whether those\\nconditions are arm’s length conditions within the meaning\\nof section 34D(1)(b); and\\n(c) must comply with all other requirements as to their form\\nand content as may be prescribed by rules made under\\nsection 7.\\n[39/2017]\\n(6) The person in subsection (3)(a), (b) or (c) must retain in safe\\ncustody transfer pricing documentation prepared by the person for\\neach transaction, for a period of at least 5 years from the end of the\\nbasis period in which the transaction took place.\\n[39/2017]\\n(7) The Comptroller may, by written notice served on a person in\\nsubsection (3)(a), (b) or (c) personally or by registered post, require\\nIncome Tax Act 1947\\n627\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthe person to furnish to the Comptroller a copy of any transfer pricing\\ndocumentation prepared by the person, and the person must comply\\nwith the requirement within 30 days starting from the date the notice\\nis served on the person.\\n[39/2017]\\n(8) A person who —\\n(a) without\\nreasonable\\nexcuse,\\nfails\\nto\\ncomply\\nwith\\nsubsection (3), (6) or (7); or\\n(b) in purported compliance with subsection (7), provides to\\nthe Comptroller any documentation that the person knows\\nto be false or misleading in a material particular,\\nshall be guilty of an offence and shall be liable on conviction to a fine\\nnot exceeding $10,000.\\n[39/2017]\\n(9) The\\nComptroller\\nmay\\ncompound\\nany\\noffence\\nunder\\nsubsection (8).\\n[39/2017]\\n(10) In this section, “firm” includes a partnership.\\n[39/2017]\\n[Act 33 of 2022 wef 04/11/2022]\\nModification of provisions for companies redomiciled in\\nSingapore\\n34G.—(1) This section applies to a body corporate incorporated\\noutside Singapore that is registered as a company limited by shares\\nunder Part 10A of the Companies Act 1967 (called in this section a\\nredomiciled company).\\n[39/2017; 45/2018]\\nInterpretation\\n(2) In this section —\\n“FRS 109” and “SFRS(I) 9” have the meanings given by\\nsection 34AA(15);\\n“registration” means registration under section 359(1) of the\\nCompanies Act 1967;\\nIncome Tax Act 1947\\n2020 Ed.\\n628\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“registration date”, in relation to a redomiciled company, means\\nthe date of its registration specified in the notice of transfer of\\nregistration issued to it under section 359(3) of the\\nCompanies Act 1967.\\n[39/2017; 32/2019]\\nDeductions for bad debts and impairment losses for debts\\n(3) Despite sections 10(1), 14(1)(d), 34AA(1) and 34AAA(1),\\nwhere a redomiciled company has any debt owed to it in respect of a\\ntrade or business outside Singapore, that was incurred before its\\nregistration date and, at any time on or after that date, the debt is\\nwritten off as bad or impairment loss is provided for that debt —\\n(a) no deduction is allowed for the debt or any provision made\\nfor it; and\\n(b) any amount recovered from the debt, or any reversal of the\\nimpairment loss, is not chargeable to tax.\\n[39/2017; 45/2018]\\n[Act 33 of 2022 wef 04/11/2022]\\nDeductions for impairment losses\\n(4) Despite sections 10(1), 34AA(1) and 34AAA(1), where a\\nredomiciled company incurred before its registration date any\\nimpairment loss from any financial asset on revenue account\\nacquired for the purpose of any trade or business outside\\nSingapore, any amount of the loss that is reversed after that date is\\nnot chargeable to tax.\\n[39/2017; 45/2018]\\n[Act 33 of 2022 wef 04/11/2022]\\n(5) Where a redomiciled company incurs on or after its registration\\ndate any impairment loss, in the course of carrying on a trade or\\nbusiness in Singapore, from any financial asset on revenue account\\nthat was acquired by the company for the purpose of any trade or\\nbusiness outside Singapore before that date —\\n(a) the company is allowed a deduction for that loss to the\\nextent that it becomes credit‑impaired within the meaning\\nof FRS 109 or SFRS(I) 9, as the case may be; and\\nIncome Tax Act 1947\\n629\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) any amount of that loss that is subsequently reversed is\\nchargeable to tax to the extent of the deduction allowed\\nunder paragraph (a).\\n[39/2017; 45/2018; 32/2019]\\n(6) Subsections (4) and (5) do not apply to an impairment loss from\\na debt to which subsection (3) applies.\\n[39/2017]\\nDeductions for expenses\\n(7) No deduction is allowed under section 14 for any expense\\nincurred by a redomiciled company before its registration date for the\\npurpose of any trade or business outside Singapore and for which it\\nhas been allowed or given any deduction or relief under any law of a\\ncountry outside Singapore that levies tax of a similar character to\\nincome tax (by whatever name called).\\n[39/2017; 45/2018]\\nDeductions for trading stocks\\n(8) For the purposes of determining the amount of deduction to be\\nallowed to a redomiciled company under any provision of this Act for\\nany trading stock that it acquired before its registration date for the\\npurpose of any trade or business outside Singapore, the value of the\\ntrading stock is the lower of the following:\\n(a) the cost of the trading stock to the company;\\n(b) the net realisable value of the trading stock on that date.\\n[39/2017; 45/2018]\\nDeductions under sections 14A, 14C, 14EA, 14N, 14P and 14R\\n(9) Despite anything in sections 14A, 14C, 14EA, 14N, 14P and\\n14R, a redomiciled company that has never, at any time before its\\nregistration date, carried on any trade or business in Singapore, may\\nonly make a claim for a deduction under any of those sections for any\\ncost, payment or expenditure incurred or made before its registration\\ndate, if —\\n(a) such cost, payment or expenditure is incurred or made for\\nthe purpose of a trade or business in Singapore; and\\nIncome Tax Act 1947\\n2020 Ed.\\n630\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) the company has not carried on the same trade or business\\noutside Singapore at any time before its registration date.\\n[45/2018]\\n[Act 30 of 2023 wef 30/10/2023]\\n(10) The deduction under subsection (9) may only be allowed for\\nthe year of assessment relating to the basis period in which the trade\\nor business is commenced in Singapore.\\n[39/2017]\\nAllowances for machinery or plant under section 19\\n(11) Where a redomiciled company —\\n(a) incurred capital expenditure before its registration date to\\nacquire any machinery or plant for the purpose of any trade\\nor business outside Singapore; and\\n(b) uses the machinery or plant for the purposes of a trade or\\nbusiness in Singapore on or after that date,\\nthen an initial allowance may be made to the company for that capital\\nexpenditure, and an annual allowance may be made to the company\\nfor the depreciation by wear and tear of that machinery or plant, in\\naccordance with section 19 as modified under subsection (12).\\n[39/2017; 45/2018]\\n(12) Section 19 applies in relation to the making of initial and\\nannual allowances to a redomiciled company under subsection (11),\\nand to initial and annual allowances so made, subject to the following\\nmodifications:\\n(a) the allowances may only be made under that section if the\\ntrade or business is carried on in Singapore on or after its\\nregistration date;\\n(b) the capital expenditure is treated as having been incurred\\nfor the provisioning of the machinery or equipment for that\\ntrade or business;\\n(c) except as provided under paragraph (d), the allowances\\nunder that section may only be made in respect of the lower\\nof the following:\\nIncome Tax Act 1947\\n631\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(i) the net book value of the machinery or plant as of the\\nregistration date;\\n(ii) the market value of the machinery or plant as of that\\ndate,\\n(c) and that lower amount is treated as the capital expenditure\\nincurred in acquiring that machinery or plant, and the\\noriginal cost of the machinery or plant;\\n(d) for the purposes of making the initial allowance under\\nsection 19(1) to the company for any machinery or plant\\nthat is acquired under a hire‑purchase agreement, the\\nreference in that provision to the capital expenditure is a\\nreference to an amount computed by the formula A\\nB \\u0003 C;\\nwhere —\\n(i) A is —\\n(A) in the first year of claim for that allowance, the\\nsum of all deposits and instalment payments\\n(excluding finance charges) made up to the end\\nof the basis period in which the date of\\ncommencement of the trade or business falls;\\nand\\n(B) in each subsequent year of claim for that\\nallowance, the sum of all instalment payments\\n(excluding finance charges) made in the basis\\nperiod to which the claim relates;\\n(ii) B is the sum of all deposits and instalment payments\\n(excluding\\nany\\nfinance\\ncharges)\\nunder\\nthe\\nhire‑purchase agreement; and\\n(iii) C is the lower amount of the machinery or plant\\nmentioned in paragraph (c);\\n(e) for the purposes of making the initial allowance to the\\ncompany, the capital expenditure is treated as having been\\nincurred by the company on the first day on which it carries\\non that trade or business;\\nIncome Tax Act 1947\\n2020 Ed.\\n632\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(f) subsections (1B), (2)(b), (3), (4), (5) and (5B) of section 19\\ndo not apply;\\n(g) such other modifications as may be prescribed.\\n[39/2017]\\n(13) Except as provided under subsection (11), no allowance may\\nbe made under section 19 to a redomiciled company to which\\nsubsection (11)(a) and (b) applies, in relation to any capital\\nexpenditure mentioned in subsection (11)(a).\\n[39/2017]\\nAllowances for machinery, plant, etc., under section 19A\\n(14) Where a redomiciled company —\\n(a) incurred capital expenditure before its registration date to\\nacquire any item mentioned in section 19A(1), (2), (3), (4),\\n(5), (6), (7) or (8) or develop a website mentioned in\\nsection 19A(10), for the purpose of any trade or business\\noutside Singapore; and\\n(b) uses such item or website for the purposes of a trade or\\nbusiness in Singapore on or after that date,\\nthen an allowance may be made to the company, in lieu of the\\nallowances under section 19 (as applied by subsection (11)), for the\\ncapital expenditure under section 19A(1), (2), (3), (4), (5), (6), (7), (8)\\nor (10) (whichever is applicable), as modified under subsection (15).\\n[39/2017; 45/2018]\\n(15) Section 19A applies in relation to the making of an allowance\\nunder subsection (14), and to any allowance so made, subject to the\\nfollowing modifications:\\n(a) the allowance may only be made under that section if the\\ntrade or business is carried on in Singapore on or after the\\nregistration date;\\n(b) the capital expenditure is treated as having been incurred\\nfor the provision of the item or website for that trade or\\nbusiness;\\n(c) the allowance may only be made in respect of the lower of\\nthe following:\\nIncome Tax Act 1947\\n633\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(i) the net book value of the item or website as of the\\nregistration date;\\n(ii) the market value of the item or website as of that\\ndate,\\n(c) and that lower amount is treated as the capital expenditure\\nincurred on the provision of the item or website for the\\ntrade or business, and the original cost of the item in\\nsection 19A(10C) (if applicable);\\n(d) subsections (1B), (1C), (1D), (1E), (1F), (1G), (2A) to\\n(2K), (9), (9A), (13A) and (16) to (18) of section 19A do\\nnot apply;\\n(e) such other modifications as may be prescribed.\\n[39/2017; 32/2019; 41/2020]\\n(16) Except as provided under subsection (14), no allowance may\\nbe made under section 19A to a redomiciled company to which\\nsubsection (14)(a) and (b) applies, in relation to any capital\\nexpenditure mentioned in subsection (14)(a).\\n[39/2017]\\nWriting‑down allowances for intellectual property rights under\\nsection 19B\\n(17) Where a redomiciled company —\\n(a) incurred capital expenditure before its registration date to\\nacquire any intellectual property rights for the purpose of\\nany trade or business outside Singapore; and\\n(b) uses those rights for the purpose of a trade or business in\\nSingapore on or after that date,\\nthen writing‑down allowances may be made to the company for the\\ncapital expenditure, in accordance with section 19B as modified by\\nsubsection (18).\\n[39/2017; 45/2018]\\n(18) Section 19B applies in relation to the making of writing‑down\\nallowances to a redomiciled company under subsection (17), and to\\nwriting‑down allowances so made, subject to the following\\nmodifications:\\nIncome Tax Act 1947\\n2020 Ed.\\n634\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(a) the allowances may only be made under that section if the\\ntrade or business is carried on in Singapore on or after the\\nregistration date;\\n(b) the capital expenditure is treated as having been incurred\\nfor the acquisition of those intellectual property rights for\\nuse in that trade or business;\\n(c) the allowances may only be made in respect of the lower of\\nthe following:\\n(i) the acquisition cost of the intellectual property rights\\nless accumulated amortisation and impairment losses\\nas of the registration date;\\n(ii) the open‑market price of the rights as of that date,\\n(c) and that lower amount is treated as the capital expenditure\\nincurred in acquiring those rights;\\n(d) subsections (1), (1A), (1AA)(b), (1AC) to (1AH), (1B) to\\n(1BC), (1C), (1D), (1E), (2B) to (2E), (8), (9), (10D) to\\n(10K) and (12) of section 19B do not apply;\\n[Act 30 of 2023 wef 30/10/2023]\\n(e) the election under section 19B(1AB) must be made at the\\ntime of lodgment of the company’s return of income for the\\nyear of assessment relating to the later of the following:\\n(i) the basis period in which the registration date falls;\\n(ii) the basis period in which the date of commencement\\nof the trade or business falls;\\n(f) such other modifications as may be prescribed.\\n[39/2017]\\n(19) In subsection (18)(c), “open‑market price”, in relation to\\nintellectual\\nproperty\\nrights,\\nhas\\nthe\\nmeaning\\ngiven\\nby\\nsection 19B(10F), with the reference to the acquisition date of\\nthose rights substituted with a reference to the registration date of the\\ncompany.\\n[39/2017]\\n(20) Except as provided under subsection (17), no writing‑down\\nallowance may be made under section 19B to a redomiciled company\\nIncome Tax Act 1947\\n635\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nto which subsection (17)(a) and (b) applies in relation to any capital\\nexpenditure mentioned in subsection (17)(a).\\n[39/2017]\\nAscertainment of profits of insurers\\n(20A) Where —\\n(a) a body corporate incorporated outside Singapore that is\\nregistered as a redomiciled company carried on insurance\\nbusiness (not being life business) outside Singapore at any\\ntime before its registration date;\\n(b) the redomiciled company carries on the same insurance\\nbusiness (not being life business) in Singapore on or after\\nits registration date; and\\n(c) the registration date of the redomiciled company falls\\nwithin a period for which its gains or profits from that\\ninsurance business in Singapore are to be ascertained for\\nthe purposes of this Act,\\nthen, for the purposes of applying section 26(3) to the period\\nmentioned in paragraph (c), the liabilities of the redomiciled\\ncompany immediately before the registration date in respect of the\\ncommon policies, are to be added to the beginning value mentioned in\\nsection 26(3)(b).\\n[45/2018]\\n(20B) If —\\n(a) a body corporate incorporated outside Singapore that is\\nregistered as a redomiciled company carried on life\\nbusiness outside Singapore at any time before its\\nregistration date;\\n(b) the redomiciled company carries on the same life business\\nin Singapore on or after its registration date; and\\n(c) the registration date of the redomiciled company falls\\nwithin a period for which its gains or profits from that life\\nbusiness in Singapore are to be ascertained for the purposes\\nof this Act,\\nIncome Tax Act 1947\\n2020 Ed.\\n636\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthen, for the purposes of applying section 26(6) to the period\\nmentioned in paragraph (c), the liabilities of the redomiciled\\ncompany immediately before the registration date in respect of the\\ncommon policies, are to be added to the beginning value mentioned in\\nparagraphs (a)(ii) and (b)(iv) of both definitions of “onshore life\\ninsurance surplus”, and paragraphs (a)(ii) and (b)(iv) of both\\ndefinitions of “offshore life insurance surplus” in section 26(12).\\n[45/2018]\\n(20C) In subsections (20A) and (20B) —\\n(a) “life business” means the business of insuring or reinsuring\\nthe liability of a life policy or accident and health policy as\\ndefined in the Insurance Act 1966;\\n(b) a redomiciled company carries on the same insurance\\nbusiness (not being life business) or life business in\\nSingapore that it carried on outside Singapore if the\\npolicies which it assumes the risks or undertakes the\\nliabilities of, or for which it collects or receives premiums,\\nwhen carrying on life business or an insurance business\\n(not being life business) in Singapore —\\n(i) are policies that are, or are part of; or\\n(ii) include policies that are, or are part of,\\n(b) the policies which it assumed the risks or undertook the\\nliabilities of, or for which it collected or received\\npremiums,\\nwhen\\ncarrying\\non\\nlife\\nbusiness\\nor\\nan\\ninsurance business (not being life business) outside\\nSingapore; and\\n(c) a reference to common policies is a reference to the\\npolicies mentioned in sub‑paragraph (b)(i) or (ii), as the\\ncase may be.\\n[45/2018]\\nSection 43(6C) inapplicable\\n(21) Section 43(6C) does not apply to a redomiciled company.\\n[39/2017; 45/2018]\\nIncome Tax Act 1947\\n637\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nRegulations\\n(22) The Minister may make regulations necessary or convenient to\\nbe prescribed for carrying out or giving effect to this section and\\nsection 34H, and in particular, make regulations to provide for such\\ntransitional, supplementary or consequential matters as the Minister\\nconsiders necessary or expedient.\\n[39/2017]\\nTax credits for approved redomiciled companies\\n34H.—(1) This section applies where —\\n(a) an approved redomiciled company has income (called in\\nthis section income A) that is chargeable to tax in one or\\nmore years of assessment beginning with the year of\\nassessment for the basis period in which its registration\\ndate falls; and\\n(b) the company’s place of incorporation levies on the\\ncompany tax of a similar character to income tax (by\\nwhatever name called) on an estimate of income A (called\\nin this section income B).\\n[39/2017]\\n(2) The approved redomiciled company must be allowed, in\\naccordance with subsection (4), a tax credit against tax payable in\\nrespect of the part of income A that is derived or received in the basis\\nperiod for each year of assessment specified by the Minister to the\\ncompany at the time of its approval (called in this section a specified\\nyear of assessment).\\n[39/2017]\\n(3) The total amount of tax credits to be allowed to the approved\\nredomiciled company for all of its specified years of assessment is an\\namount C that is computed by the formula (B ‑ B1) × D, where —\\n(a) B is the amount of income B;\\n(b) B1 is the part of income B which is derived wholly from\\nany agreement or arrangement entered into on or after the\\nregistration date, as well as any other income prescribed by\\nregulations made under section 34G; and\\nIncome Tax Act 1947\\n2020 Ed.\\n638\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) D is the lower of the following:\\n(i) the rate by which the part of income A derived or\\nreceived in the basis period in which its registration\\ndate falls is chargeable to tax;\\n(ii) the rate by which income B is chargeable to the tax\\ndescribed in subsection (1)(b).\\n[39/2017]\\n(4) Where, throughout a basis period for a specified year of\\nassessment, the approved redomiciled company —\\n(a) is resident in Singapore; and\\n(b) satisfies all of the conditions specified by the Minister to it\\nat the time of its approval,\\nthen there is to be allowed, against the amount of tax chargeable on\\nincome E, a credit of an amount that is the lower of the following:\\n(c) the amount of tax;\\n(d) an amount computed by deducting from the amount C, the\\ntotal amount of tax credits previously allowed under this\\nsection against the tax chargeable on the income of the\\ncompany.\\n[39/2017]\\n(5) In subsection (4), a company’s income E for a year of\\nassessment is the amount of the part of income A derived or\\nreceived in the basis period for that year of assessment after deducting\\nthe following:\\n(a) the expenses and donations allowable under this Act for\\nthat year of assessment that are attributable to or\\napportioned to the part of income A;\\n(b) any capital allowances for that year of assessment\\nattributable to the part of income A whether or not any\\nclaim for those allowances has been made;\\n(c) any balance of the expenses, allowances and donations\\nwhich have not been deducted under this subsection for the\\nIncome Tax Act 1947\\n639\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\npurpose of determining income E for any previous year of\\nassessment.\\n[39/2017]\\n(6) The balance of any expenses, allowances or donations\\nmentioned in subsection (5) may only be used to determine the\\ncompany’s income E for a subsequent specified year of assessment,\\nand is not available as a deduction against any other income of the\\ncompany.\\n[39/2017]\\n(7) However, any balance mentioned in subsection (6) that\\nremains —\\n(a) after ascertaining the company’s income E for the last of\\nthe specified years of assessment; or\\n(b) as of the date of revocation of the approval of the company,\\nmay be deducted against any other income of the company for a\\nsubsequent year of assessment, or the year of assessment for the basis\\nperiod in which the approval is revoked or a subsequent basis period\\n(whichever is applicable), in accordance with section 23 or 37, as the\\ncase may be.\\n[39/2017]\\n(8) Any balance of the amount C after a tax credit has been allowed\\nfor the last of the specified years of assessment must be disregarded.\\n[39/2017]\\n(9) If, at any time after the registration date, and during a period\\nspecified by the Minister to it at the time of its approval, the approved\\nredomiciled company ceases to carry on any trade or business in\\nSingapore, an amount computed using the formula F\\u0001G\\nF \\u0003 H; is\\nrecoverable by the Comptroller from the company as a debt due to the\\nGovernment, where —\\n(a) F is the total number of its specified years of assessment or\\n5, whichever is larger;\\n(b) G is the total number of complete years where the company\\ncarried on a trade or business in Singapore; and\\nIncome Tax Act 1947\\n2020 Ed.\\n640\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) H is the total amount of tax credits already allowed against\\nthe tax chargeable on the income of the company under this\\nsection.\\n[39/2017]\\n(10) If the Comptroller is satisfied that —\\n(a) the\\napproved\\nredomiciled\\ncompany\\ngave\\nto\\nthe\\nComptroller information that is false in any material\\nparticular, or omitted any material particular from any\\ninformation or document given to the Comptroller; and\\n(b) as a result of the false information or omission, an amount\\nof tax credit was allowed against tax chargeable on the\\ncompany’s income under this section,\\nthen an amount equal to the amount of tax credit so allowed is\\nrecoverable by the Comptroller from the company as a debt due to the\\nGovernment.\\n[39/2017]\\n(11) The amount recoverable under subsection (9) or (10) must be\\npaid at the place stated in the notice served by the Comptroller on the\\napproved redomiciled company within 30 days after the service of the\\nnotice.\\n[39/2017]\\n(12) The Comptroller may, in the Comptroller’s discretion, and\\nsubject to such terms and conditions as the Comptroller may impose,\\nextend the time within which payment is to be made.\\n[39/2017]\\n(13) Sections 86(1) to (6), 87(1) and (2), 89, 90 and 91 apply to the\\ncollection and recovery by the Comptroller of the amount recoverable\\nunder subsection (9) or (10) as they apply to the collection and\\nrecovery of tax.\\n[39/2017]\\n(14) In this section —\\n“approved\\nredomiciled\\ncompany”\\nmeans\\na\\nredomiciled\\ncompany within the meaning of section 34G(1) that is\\napproved by the Minister for the purposes of this section;\\n“place of incorporation”, in relation to an approved redomiciled\\ncompany, means the jurisdiction where the company was\\nIncome Tax Act 1947\\n641\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\ndomiciled at the time it applied for registration under\\nPart 10A of the Companies Act 1967;\\n“registration” means registration under section 359(1) of the\\nCompanies Act 1967;\\n“registration date”, in relation to an approved redomiciled\\ncompany, means the date of its registration specified in the\\nnotice\\nof\\ntransfer\\nof\\nregistration\\nissued\\nto\\nit\\nunder\\nsection 359(3) of the Companies Act 1967.\\n[39/2017]\\nAdjustments arising from adoption of FRS 115 or SFRS(I) 15\\n34I.—(1) This section applies where —\\n(a) a person prepares or maintains the person’s financial\\naccounts for any basis period for a year of assessment in\\naccordance with FRS 115 or SFRS(I) 15 for the first time\\n(called in this section the initial year of assessment);\\n(b) as a result of the application of FRS 115 or SFRS(I) 15 (as\\nthe case may be), an adjustment has to be made to the\\namount of revenue in the person’s financial accounts in any\\nprevious basis period (called in this section the adjusted\\nrevenue amount); and\\n(c) the amount W of the person (or, if the person is a\\npartnership, a partner of the person) for the year of\\nassessment for that previous basis period arrived at using\\nan amount of profit that includes the adjusted revenue\\namount (called in this section amount A) as the starting\\npoint, is different from the amount arrived at using an\\namount of profit that does not include the adjusted revenue\\namount (called in this section amount B) as the starting\\npoint.\\n[39/2017; 45/2018]\\n(1A) In subsection (1)(c), the amount W of a person or partner for a\\nyear of assessment is ascertained by the formula X + Y – Z, where —\\n(a) X is the chargeable income of the person or partner for that\\nyear of assessment;\\nIncome Tax Act 1947\\n2020 Ed.\\n642\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) Yis all exempt income of the person or partner for that year\\nof assessment; and\\n(c) Z is the sum of each deduction or allowance for any\\nexpenditure, donation or loss, that remains unabsorbed\\nafter ascertaining the chargeable income or any exempt\\nincome.\\n[45/2018]\\n(2) Despite any provision of this Act, if amount A exceeds\\namount B, the excess amount is treated as income of the person or\\npartner (as the case may be) for the initial year of assessment and is\\nsubject to one or more tax treatments in accordance with\\nsubsection (3).\\n[39/2017]\\n(3) For the purposes of subsection (2) —\\n(a) if the income amount C of the person or partner for the\\ninitial year of assessment is subject to a single tax\\ntreatment, then the excess amount is subject to that tax\\ntreatment;\\n(b) if different parts of the income amount C of the person or\\npartner for the initial year of assessment are subject to\\ndifferent tax treatments, then different parts of the excess\\namount are subject to the different tax treatments, and the\\npart of the excess amount that is subject to each of those tax\\ntreatments is computed by the formula D\\nE \\u0003 F; where —\\n(i) D is the sum of —\\n(A) the part of the income amount C of the person\\nor partner for that year of assessment that is\\nsubject to that tax treatment; and\\n(B) the deduction allowed or allowance made for\\neach\\nexpenditure,\\ndonation\\nor\\nloss\\nin\\nascertaining the chargeable income or any\\nexempt income of the person or partner for\\nthat year of assessment, and attributable to the\\nproduction of, or apportioned to, that part;\\nIncome Tax Act 1947\\n643\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(ii) E is the sum of —\\n(A) the income amount C of the person or partner\\nfor that year of assessment; and\\n(B) the deduction allowed or allowance made for\\neach\\nexpenditure,\\ndonation\\nor\\nloss\\nin\\nascertaining the chargeable income or any\\nexempt income of the person or partner for\\nthat year of assessment, and attributable to the\\nproduction of, or apportioned to, the income\\namount C or a part of it; and\\n(iii) F is the excess amount.\\n[39/2017; 45/2018]\\n(4) Despite any provision of this Act, if amount B exceeds\\namount A, a deduction of the excess amount must be made against\\nthe total income of the person or partner (as the case may be) or one or\\nmore parts of it for the initial year of assessment according to\\nsubsection (5).\\n[39/2017]\\n(5) For the purposes of subsection (4) —\\n(a) if the income amount C of the person or partner for the\\ninitial year of assessment is subject to a single tax\\ntreatment, then the excess amount must be deducted\\nagainst the income amount C;\\n(b) if different parts of the income amount C of the person or\\npartner for the initial year of assessment are subject to\\ndifferent tax treatments, then different parts of the excess\\namount must be deducted against the different parts of the\\nincome amount C, and the part of the excess amount that\\nmust be deducted against each part of the income amount C\\nis computed by the formula D\\nE \\u0003 F; where —\\n(i) D is the sum of —\\n(A) the part of the income amount C of the person\\nor partner for that year of assessment that is\\nsubject to that tax treatment; and\\nIncome Tax Act 1947\\n2020 Ed.\\n644\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(B) the deduction allowed or allowance made for\\neach\\nexpenditure,\\ndonation\\nor\\nloss\\nin\\nascertaining the chargeable income or any\\nexempt income of the person or partner for\\nthat year of assessment, and attributable to the\\nproduction of, or apportioned to, that part;\\n(ii) E is the sum of —\\n(A) the income amount C of the person or partner\\nfor that year of assessment; and\\n(B) the deduction allowed or allowance made for\\neach\\nexpenditure,\\ndonation\\nor\\nloss\\nin\\nascertaining the chargeable income or any\\nexempt income of the person or partner for\\nthat year of assessment, and attributable to the\\nproduction of, or apportioned to, the income\\namount C or a part of it; and\\n(iii) F is the excess amount.\\n[39/2017; 45/2018]\\n(5A) To avoid doubt, the deduction or allowance mentioned in\\nsubsection (3)(b)(i)(B) or (ii)(B), or subsection (5)(b)(i)(B) or (ii)(B),\\nexcludes any deduction or allowance (or any part of any deduction or\\nallowance) that remains unabsorbed after ascertaining the chargeable\\nincome or exempt income mentioned in that provision.\\n[45/2018]\\n(6) In this section —\\n(a) income is subject to a tax treatment if it is —\\n(i) subject to tax at one rate of tax; or\\n(ii) exempt from tax;\\n(b) a reference to the income amount C of a person or partner\\nfor a year of assessment is a reference to the amount of\\nincome computed by the formula G + H, where —\\n(i) G is the part of the chargeable income of the person\\nor partner for the year of assessment that is of the\\nIncome Tax Act 1947\\n645\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\ntype of income governed by FRS 115 or SFRS(I) 15,\\nas the case may be; and\\n(ii) H is the part of the exempt income of the person or\\npartner for the year of assessment that is of the type\\nof income governed by FRS 115 or SFRS(I) 15, as\\nthe case may be; and\\n(c) a reference to deducting an amount against any income that\\nis subject to a tax treatment is —\\n(i) if\\nthe\\ntax\\ntreatment\\nis\\nthat\\nmentioned\\nin\\nparagraph\\n(a)(i),\\nallowing\\nthat\\namount\\nas\\na\\ndeduction against the income; or\\n(ii) if\\nthe\\ntax\\ntreatment\\nis\\nthat\\nmentioned\\nin\\nparagraph (a)(ii), reducing the income by that\\namount.\\n[39/2017; 45/2018]\\n(7) In this section —\\n“FRS 115” means the financial reporting standard known as\\nFinancial Reporting Standard 115 (Revenue from Contracts\\nwith Customers) issued by the Accounting Standards\\nCommittee under the Accounting Standards Act 2007;\\n[Act 36 of 2022 wef 01/04/2023]\\n“person” has the meaning given by section 2(1), and includes a\\npartnership;\\n“SFRS(I) 15” means the financial reporting standard known as\\nSingapore Financial Reporting Standards (International) 15\\n(Revenue from Contracts with Customers), issued by the\\nAccounting Standards Committee under the Accounting\\nStandards Act 2007.\\n[39/2017; 45/2018]\\n[Act 36 of 2022 wef 01/04/2023]\\nTax treatment arising from adoption of FRS 116 or SFRS(I) 16\\n34J.—(1) Where an MSI recipient (called in this section an electing\\nrecipient) makes an election in accordance with subsection (10) to\\nadopt the tax treatment under this section, then, despite any other\\nIncome Tax Act 1947\\n2020 Ed.\\n646\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nprovision of this Act, that tax treatment applies in relation to the\\nelecting recipient in accordance with this section.\\n[32/2019]\\n(2) If, in any applicable period, a sublease by the electing recipient\\nof a sublease asset is recognised by the electing recipient as a finance\\nlease in accordance with FRS 116 or SFRS(I) 16, any income of the\\nelecting recipient derived under that sublease in that applicable\\nperiod is taken as having been derived from a finance lease for the\\npurpose of section 10C.\\n[32/2019]\\n(3) If, in any applicable period, a sublease by the electing recipient\\nof a sublease asset is recognised by the electing recipient as an\\noperating lease in accordance with FRS 116 or SFRS(I) 16, any\\nincome of the electing recipient derived under that sublease in that\\napplicable period is taken as not having been derived from a finance\\nlease for the purpose of section 10C.\\n[32/2019]\\n(4) The electing recipient is not entitled to any deduction under\\nPart 5 in a year of assessment for any outgoing or expense incurred\\nduring an applicable period in relation to a qualifying asset of which it\\nis a lessee, against any income derived by it from any use of that\\nqualifying asset.\\n[32/2019]\\n(5) Where\\nthe\\nelecting\\nrecipient\\nmakes\\nan\\nelection\\nunder\\nsubsection (10) at the time of lodgment of the return of income for\\nthe year of assessment for the basis period in which 12 December\\n2018 falls, then —\\n(a) for the year of assessment for the basis period in which that\\ndate falls — the capital allowances to be made to it under\\nsection 19, 19A or 22 for any qualifying asset of which it is\\na lessee, are to be reduced by an amount computed by the\\nformula\\nIncome Tax Act 1947\\n647\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nA\\n365 \\u0003 B;\\n(a) where —\\n(i) A is the number of days between 12 December 2018\\nand the last day of the basis period for that year of\\nassessment (both days inclusive); and\\n(ii) B is the amount of the capital allowances for that\\nyear of assessment for that qualifying asset;\\n(b) for the year of assessment for the basis period in which that\\ndate falls — no allowance may be made to, and no charge\\nmay be made on, the electing recipient under section 20 or\\n21 for any event mentioned in section 20(1) that occurs in\\nthe period between 12 December 2018 and the last day of\\nthe basis period for that year of assessment (both days\\ninclusive), in relation to any qualifying asset of which it is\\na lessee; and\\n(c) for any subsequent year of assessment other than the last\\nyear of assessment —\\n(i) the electing recipient is not entitled to any allowance\\nunder section 19, 19A or 22; and\\n(ii) no allowance may be made to, and no charge may be\\nmade on, the electing recipient under section 20 or 21\\nfor any event mentioned in section 20(1) that occurs\\nin the basis period for that year of assessment,\\n(c) in relation to any qualifying asset of which it is a lessee.\\n[32/2019]\\n(6) Where the electing recipient makes the election under\\nsubsection (10) at the time of lodgment of the return of income for\\nthe year of assessment for any basis period other than that in which\\n12 December 2018 falls, then, for every year of assessment beginning\\nwith the basis period in which it makes the election and before the last\\nyear of assessment —\\n(a) the electing recipient is not entitled to any allowance under\\nsection 19, 19A or 22; and\\nIncome Tax Act 1947\\n2020 Ed.\\n648\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) no allowance may be made to, and no charge may be made\\non, the electing recipient under section 20 or 21 for any\\nevent mentioned in section 20(1) that occurs in the basis\\nperiod for that year of assessment,\\nin relation to any qualifying asset of which it is a lessee.\\n[32/2019]\\n(7) For the last year of assessment, the capital allowances under\\nsection 19, 19A or 22 for any qualifying asset of which the electing\\nrecipient is a lessee, and which was leased for its trade or business\\nbefore the date it ceases to be an MSI recipient, are to be —\\n(a) computed on the residue of the capital expenditure or\\nreducing value of the qualifying asset (as the case may be)\\nafter deducting all such allowances (including initial and\\nannual\\nallowances)\\nthat\\nhave\\nor\\nwould\\n(but\\nfor\\nsubsection (5) or (6)) have been made to the electing\\nrecipient for all past years of assessment, even if no such\\nallowance was made; and\\n(b) reduced by an amount computed by the formula\\nA\\n365 \\u0003 B;\\n(b) where —\\n(i) A is the number of days between the first day of the\\nbasis period of the last year of assessment and the\\nday before the day the electing recipient ceases to be\\nan MSI recipient (both days inclusive); and\\n(ii) B is the amount of the capital allowances for the last\\nyear of assessment as computed in accordance with\\nparagraph (a).\\n[32/2019]\\n(8) For the last year of assessment, no allowance may be made to,\\nand no charge may be made on, the electing recipient under section 20\\nor 21 for any event mentioned in section 20(1) that occurs between\\nthe first day of the basis period of that year of assessment and the day\\nIncome Tax Act 1947\\n649\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nbefore the day it ceases to be an MSI recipient (both days inclusive),\\nin relation to any qualifying asset of which it is a lessee.\\n[32/2019]\\n(9) For each subsequent year of assessment after the last year of\\nassessment, the capital allowances under section 19, 19A or 22 for\\nany qualifying asset of which the electing recipient is a lessee, and\\nwhich was leased for its trade or business before the day it ceases to\\nbe an MSI recipient, are to be computed on the residue of the capital\\nexpenditure or reducing value of the qualifying asset (as the case may\\nbe) after deducting —\\n(a) all\\nsuch\\nallowances\\n(including\\ninitial\\nand\\nannual\\nallowances) that have or would (but for subsection (5) or\\n(6)) have been made to the electing recipient for all past\\nyears of assessment, even if no such allowance was made;\\nand\\n(b) the total amount of such allowances that would have been\\nmade to the electing recipient for the last year of\\nassessment without the reduction under subsection (7)(b).\\n[32/2019]\\n(10) An MSI recipient may make an election to adopt the tax\\ntreatment under this section by providing a written notice to the\\nComptroller of this —\\n(a) at the time of lodgment of the return of income for the year\\nof assessment relating to a basis period during which its\\nfinancial accounts are prepared in accordance with\\nFRS 116 or SFRS(I) 16; or\\n(b) within such further time as the Comptroller may allow.\\n[32/2019]\\n(11) An election made under subsection (10) is irrevocable.\\n[32/2019]\\n(12) If —\\n(a) the tax treatment under this section has been applied in\\nrelation to a ship that is provisionally registered under the\\nMerchant Shipping Act 1995, and that is operated by an\\nelecting recipient that is a shipping enterprise (called in this\\nIncome Tax Act 1947\\n2020 Ed.\\n650\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nsubsection\\nand\\nsubsections\\n(12A)\\nand\\n(13)\\nthe\\nprovisionally‑registered ship); and\\n(b) the electing recipient subsequently fails to obtain a\\npermanent certificate of registry under that Act in\\nrespect of that ship,\\nthen the Comptroller must, in relation to every year of assessment for\\nwhich the tax treatment under this section has already been applied in\\nrelation to the provisionally‑registered ship —\\n(c) make an assessment or additional assessment under\\nsection 74 on the electing recipient; or\\n(d) revise an assessment already made and give a refund to the\\nelecting recipient for any tax overpaid,\\nas the case may be, as if the tax treatment had not been applied for that\\nyear of assessment in relation to both the provisionally‑registered\\nship and relevant assets.\\n[32/2019; 41/2020]\\n(12A) Subsection (12) does not apply in relation to a ship in respect\\nof which the electing recipient derives the income mentioned in\\nsection 13A(1), (1B), (1CA), (1CD), (1CE), (1CF), (1CG), (1CH),\\n(1CI), (1CJ), (1CK) or (1CL) (modified by replacing a reference to a\\nSingapore ship with a reference to a provisionally registered ship) on\\nor after 19 February 2020, but not before that date.\\n[41/2020]\\n(13) In subsection (12), “relevant assets” means —\\n(a) if, at the end of the basis period for the year of assessment\\nmentioned in that subsection, the electing recipient\\noperates only the provisionally‑registered ship and no\\nother Singapore ship, all sublease assets and qualifying\\nassets of the electing recipient; or\\n(b) if, at the end of the basis period for the year of assessment\\nmentioned in that subsection, the electing recipient\\noperates one or more other Singapore ships in addition\\nto\\nthe\\nprovisionally‑registered\\nship,\\nany\\non‑board\\nIncome Tax Act 1947\\n651\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nequipment\\nintegral\\nto\\nthe\\noperation\\nof\\nthe\\nprovisionally‑registered ship but no other ship.\\n[32/2019]\\n(14) In this section —\\n“applicable period” means —\\n(a) the later of the following:\\n(i) the period between 12 December 2018 and the\\nlast day of the basis period in which that date\\nfalls (both days inclusive);\\n(ii) the basis period in which the electing recipient\\nmakes the election under subsection (10);\\n(b) each basis period that is subsequent to the period\\nmentioned in paragraph (a) and before the period\\nmentioned in paragraph (c); or\\n(c) the period starting on the first day of the basis period\\nin which the electing recipient ceases to be an MSI\\nrecipient, and ending on (and including) the day\\nbefore the day of such cessation;\\n“approved container investment enterprise” means an approved\\ncontainer investment enterprise mentioned in section 43P;\\n“approved international shipping enterprise” means an approved\\ninternational shipping enterprise mentioned in section 13E;\\n“approved shipping investment enterprise” means an approved\\nshipping investment enterprise mentioned in section 13P;\\n“container” has the meaning given by section 43P(7);\\n“FRS 116” means the financial reporting standard issued by the\\nAccounting Standards Committee under Part 3 of the\\nAccounting Standards Act 2007 and known as Financial\\nReporting Standard 116 (Leases);\\n[Act 36 of 2022 wef 01/04/2023]\\n“intermodal\\nequipment”\\nhas\\nthe\\nmeaning\\ngiven\\nby\\nsection 43P(7);\\nIncome Tax Act 1947\\n2020 Ed.\\n652\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“last year of assessment” means the year of assessment for the\\nbasis period in which the electing recipient ceases to be an\\nMSI recipient;\\n“Maritime Sector Incentive recipient” or “MSI recipient” means\\na shipping enterprise, an approved international shipping\\nenterprise, an approved shipping investment enterprise, or an\\napproved container investment enterprise;\\n“qualifying asset” means —\\n(a) in the case of an electing recipient that is a shipping\\nenterprise, any of the following:\\n(i) any Singapore ship;\\n(ii) any\\non‑board\\nequipment\\nintegral\\nto\\nthe\\noperation of Singapore ships;\\n(iii) any container;\\n(iv) any\\nintermodal\\nequipment\\nor\\nany\\nother\\nequipment\\nintegral\\nto\\nthe\\noperation\\nof\\ncontainers;\\n(b) in the case of an electing recipient that is an approved\\ninternational\\nshipping\\nenterprise,\\nany\\nof\\nthe\\nfollowing:\\n(i) any ship;\\n(ii) any\\non‑board\\nequipment\\nintegral\\nto\\nthe\\noperation of ships;\\n(iii) any container;\\n(iv) any\\nintermodal\\nequipment\\nor\\nany\\nother\\nequipment\\nintegral\\nto\\nthe\\noperation\\nof\\ncontainers;\\n(c) in the case of an electing recipient that is an approved\\nshipping investment enterprise, any of the following:\\n(i) any ship;\\n(ii) any\\non‑board\\nequipment\\nintegral\\nto\\nthe\\noperation of ships; and\\nIncome Tax Act 1947\\n653\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(d) in the case of an electing recipient that is an approved\\ncontainer investment enterprise, any of the following:\\n(i) any container;\\n(ii) any\\nintermodal\\nequipment\\nor\\nany\\nother\\nequipment\\nintegral\\nto\\nthe\\noperation\\nof\\ncontainers,\\nbut excludes anything that is used solely in the basis period\\nconcerned to derive income that is not income that is subject\\nto\\nexemption\\nor\\na\\nconcessionary\\nrate\\nof\\ntax\\nunder\\nsection 13A, 13E, 13P or 43P;\\n“SFRS(I) 16” means the financial reporting standard issued by\\nthe Accounting Standards Committee under Part 3 of the\\nAccounting Standards Act 2007 and known as Singapore\\nFinancial Reporting Standard (International) 16 (Leases);\\n[Act 36 of 2022 wef 01/04/2023]\\n“ship” has the meaning given by section 2(1) of the Merchant\\nShipping Act 1995;\\n“shipping enterprise” means a company that owns or operates\\none or more Singapore ships;\\n“Singapore ship” means —\\n(a) a ship in respect of which a permanent certificate of\\nregistry has been issued under the Merchant Shipping\\nAct 1995 and whose registry is not closed or deemed\\nto be closed or suspended; or\\n(b) a ship that is provisionally registered under that Act;\\n“sublease asset” means —\\n(a) in the case of an electing recipient that is a shipping\\nenterprise, any Singapore ship or container;\\n(b) in the case of an electing recipient that is an approved\\ninternational\\nshipping\\nenterprise,\\nany\\nship\\nor\\ncontainer;\\n(c) in the case of an electing recipient that is an approved\\nshipping investment enterprise, any ship; and\\nIncome Tax Act 1947\\n2020 Ed.\\n654\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(d) in the case of an electing recipient that is an approved\\ncontainer investment enterprise, any container or\\nintermodal equipment,\\nbut excludes anything that is used solely in the basis period\\nconcerned to derive income that is not income that is subject\\nto\\nexemption\\nor\\na\\nconcessionary\\nrate\\nof\\ntax\\nunder\\nsection 13A, 13E, 13P or 43P.\\n[32/2019]\\nPART 8\\nASCERTAINMENT OF STATUTORY INCOME\\nBasis for computing statutory income\\n35.—(1) Except as provided in this section, the income of any\\nperson for each year of assessment (called in this Act the statutory\\nincome) is the full amount of the person’s income for the year\\npreceding the year of assessment from each source of income after the\\ndeduction provided under subsection (2).\\n(2) There is to be deducted any allowance falling to be made under\\nsection 16, 17, 18A (repealed), 18B, 18C, 19, 19A, 19B, 19C, 19D or\\n20 that is not fully deducted and which would otherwise be added to,\\nand deemed to form part of, the corresponding allowance for the next\\nsucceeding year of assessment under section 23(1).\\n(2A) A deduction under subsection (2) is to be made in the\\nfollowing order:\\n(a) firstly, against income from any trade, business, profession\\nor vocation; and\\n(b) secondly, against income from any other source.\\n(3) For the purposes of subsection (2), the balance of allowance for\\nthe earliest year of assessment is deemed to have been deducted first,\\nfollowed by the balance of allowance for the next earliest year of\\nassessment, and so on.\\n(4) Where the Comptroller is satisfied that any person usually\\nmakes up the person’s accounts to a day other than 31 December, the\\nComptroller may direct that —\\nIncome Tax Act 1947\\n655\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(a) where the person is not an individual, the statutory income\\nof that person from all sources be computed on the amount\\nof gains or profits of the year ending on that day in the year\\npreceding the year of assessment;\\n(b) where the accounts relate to a partnership, the income of\\nthe partnership be computed under section 36 on the\\namount of gains or profits of the year ending on that day in\\nthe year preceding the year of assessment; or\\n(c) where the person is an individual, the statutory income of\\nthat person from any trade, business, profession or\\nvocation to which the accounts relate be computed on\\nthe amount of gains or profits of the year ending on that\\nday in the year preceding the year of assessment.\\n(5) [Deleted by Act 19 of 2013]\\n(6) Where the statutory income of any person has been computed\\nby reference to an account made up to a certain day, and such person\\nfails for any reason whatsoever to make up an account to the\\ncorresponding day in the year following, the statutory income both of\\nthe year of assessment in which such failure occurs and of the 2 years\\nof assessment following is to be computed on such basis as the\\nComptroller in his or her discretion thinks fit.\\n(7) Where it is necessary in order to arrive at the income of any year\\nof assessment or other period, to divide and apportion to specific\\nperiods the income of any period for which accounts have been made\\nup, or to aggregate such income or any apportioned parts thereof, it is\\nlawful to make such a division, and apportionment or aggregation,\\nand any apportionment under this section is to be made in proportion\\nto the number of days in the respective periods, unless the\\nComptroller, having regard to any special circumstances, otherwise\\ndirects.\\n(8) The statutory income of an executor of a deceased person for\\nany year of assessment is the income of the estate administered by\\nsuch executor computed in accordance with subsections (1) to (7).\\n(9) In the case of an estate administered in Singapore, a deduction is\\nallowed in respect of any income included in the computation of the\\nIncome Tax Act 1947\\n2020 Ed.\\n656\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nstatutory income if such income is received by, distributed to or\\napplied to the benefit of any beneficiary of the estate within the\\ncalendar year in which the income is derived, or such longer period\\nthat the Comptroller may permit in any particular case or class of\\ncases.\\n[Act 30 of 2023 wef 30/10/2023]\\n(10) The statutory income of any beneficiary of such estate is the\\namount so received by, or distributed to the beneficiary, or applied to\\nthe beneficiary’s benefit during the year preceding the year of\\nassessment.\\n(11) The statutory income of a trustee (not being the trustee of an\\nincapacitated person) for any year of assessment is to be computed in\\naccordance with subsections (1) to (7).\\n(12) The trustee of a designated unit trust for a year of assessment\\nmay elect to apply this subsection to the trustee’s income referred to\\nin section 10(20)(a), (b) and (c) and (20A)(a) to (i) derived in the\\nbasis period or any part of the basis period for that year of assessment,\\nand thereupon that income does not form part of the trustee’s\\nstatutory income for that year of assessment.\\n[37/2014]\\n(12A) Subsection (12) only applies to income derived on or after\\n1 September 2014.\\n[37/2014]\\n(12B) An election under subsection (12) must be made by\\nsubmitting such form as the Comptroller may specify, together\\nwith the trustee’s return of income for the year of assessment in\\nquestion, before the expiry of the time the return of income is to be\\ndelivered or within such extended time as the Comptroller may allow.\\n[37/2014]\\n(12C) An election under subsection (12) is irrevocable.\\n[37/2014]\\n(12D) To avoid doubt, subsection (12) does not affect the operation\\nof section 43(2) (read with section 43(2A)(ba)) in relation to a\\ndesignated unit trust that is also an approved REIT exchange‑traded\\nfund within the meaning of section 43(10).\\n[45/2018]\\nIncome Tax Act 1947\\n657\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(13) No deduction under section 14 is allowed for any year of\\nassessment in respect of any outgoings and expenses (including any\\nexpenses arising from the management of investments) incurred by\\nthe trustee of a designated unit trust for that year of assessment in\\nrespect of the unit trust, against any income derived by the trustee in\\nrespect of the unit trust from —\\n(a) dividends paid by any company resident in Singapore; or\\n(b) interest for which tax has been deducted under section 45.\\n[37/2014]\\n(13A) No deduction under section 14 is allowed for any year of\\nassessment in respect of any outgoings and expenses (including any\\nexpenses arising from the management of investments) incurred by\\nthe trustee of a designated unit trust for that year of assessment in\\nrespect of the unit trust, against any income derived by the trustee in\\nrespect of the unit trust from discount, fees and compensatory\\npayments for which tax has been deducted under section 45A.\\n[37/2014]\\n(14) In subsections (12), (13), (13A), (14A), (14B), (14C) and\\n(14D) —\\n“compensatory\\npayment”\\nhas\\nthe\\nmeaning\\ngiven\\nby\\nsection 10H(12);\\n“designated unit trust”, in relation to a year of assessment,\\nmeans a trust that is —\\n(a) a unit trust scheme or an exchange traded fund\\ninterest scheme, in which any moneys standing to the\\ncredit of a member of the Central Provident Fund in\\nthe Fund have been or may be invested, and which\\nremains prescribed by the Minister for the purposes\\nof this definition throughout the basis period for that\\nyear of assessment; or\\n(b) a unit trust which satisfies all of the following\\nconditions throughout the basis period for that year of\\nassessment:\\nIncome Tax Act 1947\\n2020 Ed.\\n658\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(i) it is one of the following:\\n(A) a collective investment scheme which is\\nauthorised under section 286 of the\\nSecurities and Futures Act 2001 and the\\nunits of which are offered to the public\\nfor subscription;\\n(B) a collective investment scheme which\\nwas a former designated unit trust, is a\\nrestricted Singapore scheme within the\\nmeaning of section 13(16), and satisfies\\nthe conditions in subsection (14B);\\n(C) a collective investment scheme which\\nwas a former designated unit trust, is a\\ncollective investment scheme the units of\\nwhich are offered only to institutional\\ninvestors, and satisfies the conditions set\\nout in subsection (14B);\\n(ii) it is neither a real estate investment trust within\\nthe meaning of section 43(10), nor a property\\ntrust\\nthat\\ninvests\\ndirectly\\nin\\nimmovable\\nproperties in Singapore;\\n(iii) the trustee of the unit trust is resident in\\nSingapore;\\n(iv) the unit trust is managed in Singapore by a fund\\nmanager;\\n“exchange traded fund interest scheme” means any scheme or\\narrangement which is made for the purpose, or having the\\neffect, of providing facilities for the participation by persons\\nas beneficiaries under a trust, in profits or income arising\\nfrom the acquisition, holding, management or disposal of a\\nportfolio of predetermined proportions, which constituent\\nassets comprise securities listed for quotation on any stock\\nexchange;\\n“former designated unit trust” means a unit trust that,\\nimmediately before 21 February 2014, was a designated\\nIncome Tax Act 1947\\n659\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nunit trust under this section in force immediately before that\\ndate;\\n“securities” has the meaning given by section 10(23);\\n“unit” and “unit trust” have the meanings given by section 10A.\\n[37/2014; 32/2019]\\n(14A) For the purposes of paragraph (a) of the definition of\\n“designated unit trust” in subsection (14), the Minister may prescribe,\\nas designated unit trusts, descriptions of unit trust schemes and\\nexchange traded fund interest schemes set out on a specified website\\nof the Central Provident Fund Board, as amended from time to time.\\n[37/2014]\\n(14B) The conditions referred to in paragraph (b)(i)(B) and (C) of\\nthe definition of “designated unit trust” in subsection (14) are as\\nfollows:\\n(a) no more than 50% of the units in the unit trust is\\nbeneficially held by related parties of the fund manager;\\n[Act 33 of 2022 wef 04/11/2022]\\n(b) the unit holders have no control over the management of\\nthe property of the unit trust and have no right to be\\nconsulted or to give directions in respect of such\\nmanagement;\\n(c) the unit holders have no control over any matter relating to\\ndistributions to be made out of the income of the unit trust;\\n(d) no property was transferred (other than by way of a sale in\\naccordance with market terms and conditions), directly or\\nindirectly, to the trustee of the unit trust to be held as its\\nproperty, by a company which has derived income from\\nthat property that is chargeable to tax under this Act; and\\n(e) the investment strategy of the unit trust as of 20 February\\n2014 remains unchanged.\\n[37/2014]\\n(14C) Despite\\nthe\\ndefinition\\nof\\n“designated\\nunit\\ntrust”\\nin\\nsubsection (14), a collective investment scheme (being a former\\ndesignated unit trust) —\\nIncome Tax Act 1947\\n2020 Ed.\\n660\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(a) which is a restricted Singapore scheme within the meaning\\nof section 13(16); or\\n(b) the units of which are offered only to institutional\\ninvestors,\\nwhich fails to satisfy the conditions set out in subsection (14B) in any\\npart of the basis period for a year of assessment is not treated as a\\ndesignated unit trust for the year of assessment to which that basis\\nperiod relates, or for any subsequent year of assessment even if all of\\nthe requirements in the definition of that term have been satisfied for\\nthat subsequent year of assessment.\\n[37/2014]\\n(14D) For the purposes of paragraphs (a) and (b) of the definition of\\n“designated unit trust” in subsection (14), a reference to a condition\\nbeing satisfied throughout the basis period for a year of assessment is,\\nwhere the unit trust is dissolved at any time in the basis period, a\\nreference to the condition being satisfied from the beginning of the\\nbasis period up to the date of the dissolution.\\n[37/2014]\\n(14E) Subsections (12), (13) and (13A) do not apply to a trust that is\\nconstituted on or after 1 April 2019.\\n[37/2014]\\n(14F) In the case of a trust that is constituted before 1 April 2019 —\\n(a) that is not a designated unit trust (as defined in\\nsubsection (14)) for a year of assessment in respect of\\nany basis period beginning on or after 1 April 2019; or\\n(b) whose trustee did not make an election for subsection (12)\\nto apply to the trustee’s income for any basis period\\nbeginning on or after that date,\\nsubsections (12), (13) and (13A) do not apply to that trust for the year\\nof assessment to which that basis period relates and for every\\nsubsequent year of assessment.\\n[37/2014]\\n(14G) Subsection (14F) applies to the trust for a subsequent year of\\nassessment even if all of the requirements in the definition of\\nIncome Tax Act 1947\\n661\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“designated unit trust” in subsection (14) have been satisfied for that\\nyear of assessment.\\n[37/2014]\\n(14H) In the case of a trust that is constituted before 1 April 2019\\nwhose trustee did not make an election for subsection (12) to apply to\\nthe trustee’s income for the basis period immediately preceding the\\nbasis period in which 1 April 2019 falls, subsections (12), (13) and\\n(13A) do not apply to that trust for the year of assessment to which the\\nsecond‑mentioned basis period relates and for every subsequent year\\nof assessment.\\n[37/2014]\\n(14I) Subsection (14H) applies to the trust for the year of\\nassessment to which the second‑mentioned basis period in that\\nsubsection relates or a subsequent year of assessment, even if all of\\nthe requirements in the definition of “designated unit trust” in\\nsubsection (14) have been satisfied for that year of assessment or that\\nsubsequent year of assessment.\\n[37/2014]\\n(15) The statutory income for any year of assessment of any\\nbeneficiary under a trust is that share of the statutory income of the\\ntrustee for that year of assessment which corresponds to the share of\\nthe trust income to which the beneficiary is entitled for the year\\npreceding the year of assessment.\\n(15A) Despite subsection (15), the statutory income for any year of\\nassessment of a beneficiary of a trust (called in this subsection the\\nfirst trust), where the beneficiary is itself a trustee of an approved\\nREIT exchange‑traded fund, is that share of the statutory income of\\nthe trustee of the first trust that corresponds to the share of the income\\nof the first trust to which the beneficiary is entitled for the year\\npreceding the year of assessment.\\n[45/2018]\\n(15B) To avoid doubt, section 43(2) (read with section 43(2A)(ba))\\napplies to the statutory income under subsection (15A) of the\\nbeneficiary.\\n[45/2018]\\n(15C) Where a unitholder of a real estate investment trust is entitled\\nto an amount, being a return of capital, from a trustee of the real estate\\nIncome Tax Act 1947\\n2020 Ed.\\n662\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\ninvestment trust, the cost of the units to the unitholder is reduced by\\nthe amount entitled.\\n[45/2018]\\n(16) In subsection (15), “statutory income of the trustee” does not\\ninclude —\\n(a) in relation to a trustee of a real estate investment trust\\nwithin the meaning of section 43(10), any income from any\\ntrade or business carried on by the trustee other than the\\nincome of the kinds referred to in section 43(2A)(a)(i), (ii),\\n(iii), (iv) and (v);\\n(b) in relation to a trustee of an approved sub‑trust of a real\\nestate\\ninvestment\\ntrust\\nwithin\\nthe\\nmeaning\\nof\\nsection 43(10), any income from any trade or business\\ncarried on by the trustee other than income of the kinds\\nreferred to in section 43(2A)(b)(i), (ii) and (iii);\\n(ba) in\\nrelation\\nto\\na\\ntrustee\\nof\\nan\\napproved\\nREIT\\nexchange‑traded\\nfund\\nwithin\\nthe\\nmeaning\\nof\\nsection 43(10), any income from a trade or business\\ncarried on by the trustee, other than a distribution received\\nfrom a real estate investment trust that is in turn made out\\nof income of the kinds mentioned in section 43(2A)(a)(i),\\n(ii), (iii), (iv) and (v); or\\n(c) in relation to a trustee of any other trust, any income from\\nany trade or business carried on by the trustee.\\n[34/2016; 45/2018]\\nCessation of source of income commenced before 1 January\\n1969\\n35A.—(1) This section only applies to any trade, business,\\nprofession,\\nvocation\\nor\\nemployment\\n(except\\nsubsidiary\\nemployment which had not been treated as a new source on\\ncommencement) which commenced before 1 January 1969.\\n(2) Subject to subsection (3), where a person permanently ceases to\\ncarry on or exercise any trade, business, profession, vocation or\\nemployment to which this section applies, the person’s statutory\\nincome therefrom is —\\nIncome Tax Act 1947\\n663\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(a) as regards the year of assessment in which the cessation\\noccurs — the amount of the income of that year; and\\n(b) as regards the year of assessment preceding that in which\\nthe cessation occurs — the amount of income as computed\\nin accordance with section 35, or the amount of income of\\nthat year, whichever is the greater.\\n(3) Subsection (2) does not apply to a company which ceases to\\ncarry on any trade or business on or after 15 October 1969 where such\\ntrade or business or part thereof is transferred to or carried on by any\\nperson as that person’s trade or business, whether with or without any\\nalteration.\\n(4) For the purposes of this section, where a change occurs in a\\npartnership of persons carrying on any trade, business or profession\\nby reason of retirement or death, or the dissolution of the partnership\\nas to one or more of the partners, or the admission of a new partner,\\nevery such person who is not a company is deemed to cease to carry\\non that trade, business or profession as from the date the change\\noccurs.\\nPartnership\\n36.—(1) Where a trade, business, profession or vocation is carried\\non by 2 or more persons jointly —\\n(a) the income of any partner from the partnership for any\\nperiod is deemed to be the share to which the partner was\\nentitled during that period in the income of the partnership,\\nsuch income being ascertained in accordance with the\\nprovisions of this Act, and must be included in the return of\\nincome to be made by such partner under the provisions of\\nthis Act; and\\n(b) the statutory income of any partner from the partnership is\\ncomputed in accordance with section 35 by treating the\\npartner’s share of the divisible income of the partnership as\\nthough it were income of a trade, business, profession or\\nvocation carried on or exercised by the partner.\\nIncome Tax Act 1947\\n2020 Ed.\\n664\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(1A) Sections 13G, 13P, 43N and 43P apply in relation to the\\nincome of a partner from a partnership as they apply in relation to the\\nincome of a company, with such modifications and exceptions as may\\nbe prescribed by the Minister by regulations.\\n(1B) Despite anything in sections 14E, 19B and 19C, those sections\\napply for the purpose of making a deduction or an allowance to the\\npartners of a partnership for expenditure incurred by the partnership\\nto which those sections apply, subject to such modifications and\\nexceptions as may be prescribed by the Minister.\\n(1C) Regulations under subsections (1A) and (1B) may make\\nprovision ––\\n(a) for the manner in which a concessionary rate of tax under\\nsections 43N and 43P may be accorded to a partner of a\\npartnership being an individual;\\n(b) in a case where any deduction, writing‑down allowance,\\nexemption or concessionary rate of tax ought not to have\\nbeen allowed to a partner of a partnership due to\\nnon‑compliance with any condition imposed on the\\npartnership, for the recovery from the partner —\\n(i) if the partner is a company, of the amount of tax\\nwhich would otherwise have been payable; or\\n(ii) if the partner is an individual, of an amount to be\\ncomputed in the prescribed manner;\\n(c) for the recovery of the amount referred to in paragraph (b)\\nby deeming a specified amount as the income of the partner\\nfor the year of assessment in which the Comptroller\\ndiscovers the non‑compliance referred to in that paragraph;\\nand\\n(d) generally to give effect to or for carrying out the purposes\\nof those sections as they apply to a partnership.\\n[34/2016]\\nLimited liability partnership\\n36A.—(1) For the purposes of this Act, where a limited liability\\npartnership carries on a trade, business, profession or vocation —\\nIncome Tax Act 1947\\n665\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(a) all the activities of the partnership are treated as carried on\\nin partnership by its partners (and not by the partnership as\\nsuch);\\n(b) anything done by, to or in relation to the partnership for the\\npurposes of, or in connection with, any of its activities is\\ntreated as done by, to or in relation to the partners; and\\n(c) the property of the partnership is treated as held by the\\npartners as partnership property.\\n(2) For the purposes, except as otherwise provided, of this Act —\\n(a) references to a partnership include a limited liability\\npartnership in relation to which subsection (1) applies;\\n(b) references to partners of a partnership include partners of\\nsuch a limited liability partnership;\\n(c) references to a company do not include such a limited\\nliability partnership; and\\n(d) references to shareholders of a company do not include\\npartners of such a limited liability partnership.\\n(3) In ascertaining the income of a limited liability partnership for\\nthe purpose of section 36(1)(a), section 10D applies to income from\\nany business of the making of investments as if the limited liability\\npartnership is a company.\\n(4) For any year of assessment, the amount of relevant deductions\\nthat may be allowed to or transferred by a partner of a limited liability\\npartnership must not exceed —\\n(a) in the case of a relevant deduction allowed to the partner\\nunder section 35(2), an amount equal to the amount\\nascertained in accordance with the formula\\nA \\u0001 B;\\n(b) in the case of a relevant deduction allowed to the partner\\nunder section 37(3)(a), an amount equal to the amount\\nascertained in accordance with the formula\\nIncome Tax Act 1947\\n2020 Ed.\\n666\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nA \\u0001 B \\u0001 C;\\n(c) in the case of a transferred deduction transferred by the\\npartner, an amount equal to the amount ascertained in\\naccordance with the formula\\nA \\u0001 B \\u0001 C \\u0001 D; and\\n(d) in the case of a carry‑back deduction allowed to or\\ntransferred by the partner, an amount equal to the amount\\nascertained in accordance with the formula\\nA \\u0001 B \\u0001 C \\u0001 D \\u0001 E;\\nwhere A is the partner’s contributed capital in that year of\\nassessment;\\nB is the past relevant deductions already allowed to the\\npartner;\\nC is the relevant deduction allowed to the partner in that\\nyear of assessment under section 35(2);\\nD is the relevant deduction allowed to the partner in that\\nyear of assessment under section 37(3)(a); and\\nE is the transferred deduction transferred by the partner in\\nthat year of assessment.\\n(5) If, as a result of any reduction in the contributed capital of a\\npartner of a limited liability partnership in any year of assessment, the\\npast relevant deductions already allowed to the partner exceeds the\\npartner’s contributed capital, the excess is deemed to be income of the\\npartner chargeable with tax under section 10(1)(g) for that year of\\nassessment, and an amount equal to the excess is deemed to be a loss\\nincurred by the partner in the trade, business, profession or vocation\\nof the limited liability partnership.\\n(6) Subsections (4) and (5) do not apply in the year of assessment\\nrelating to the basis period in which the partner ceases to be a partner\\nIncome Tax Act 1947\\n667\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nof a limited liability partnership or in any subsequent year of\\nassessment.\\n(7) For the purposes of any allowances made under section 16, 17,\\n18B, 18C, 19, 19A, 19B, 19C, 19D, 20 or 23, where —\\n(a) any person is admitted to or withdraws from a limited\\nliability partnership as a partner thereof; and\\n(b) one or more persons remain as partners of the limited\\nliability partnership after the admission or withdrawal of\\nthat person,\\nthe interest of that person in any property of the limited liability\\npartnership is deemed to be —\\n(c) where that person is admitted to the limited liability\\npartnership as a partner, sold to that person by all the\\nremaining partners; or\\n(d) where that person withdraws from the limited liability\\npartnership as a partner, sold by that person to all the\\nremaining partners.\\n(8) The precedent partner of a limited liability partnership must\\nmake and deliver, together with a return of the income of the limited\\nliability partnership under section 71 or when required by the\\nComptroller by written notice, a return of the contributed capital of\\neach partner of the limited liability partnership for any year of\\nassessment.\\n(9) For the purposes of this section, the Minister may make\\nregulations to provide generally for giving full effect to or for\\ncarrying out the purposes of this section.\\n(10) In this section —\\n“activities of the limited liability partnership” means anything\\ndone by the limited liability partnership, whether or not in the\\ncourse of carrying on a trade, business, profession or\\nvocation;\\n“carry‑back deductions”, in relation to a partner of a limited\\nliability partnership in any year of assessment, means —\\nIncome Tax Act 1947\\n2020 Ed.\\n668\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(a) any deduction allowed to the partner of any\\nallowance arising from any trade, business or\\nprofession, or any loss incurred in any trade,\\nbusiness, profession or vocation carried on by the\\nlimited liability partnership that is made against the\\npartner’s assessable income from any other source\\nfor the immediate preceding year of assessment\\nunder section 37D(1) or any of the 3 immediate\\npreceding\\nyears\\nof\\nassessment\\nunder\\nsection 37D(1A); or\\n(b) any allowance arising from any trade, business or\\nprofession, or any loss incurred in any trade,\\nbusiness, profession or vocation carried on by the\\nlimited liability partnership that is transferred by the\\npartner to a spouse under section 37E;\\n“contributed capital”, in relation to a partner of a limited liability\\npartnership for any year of assessment, means the aggregate\\nof —\\n(a) the amount, as at the end of the basis period for the\\nyear\\nof\\nassessment\\nto\\nbe\\ndetermined\\nby\\nthe\\nComptroller, which the partner has contributed (in\\ncash or in kind but not including any loan by the\\npartner to the limited liability partnership) to the\\nlimited liability partnership as capital, and has not,\\ndirectly or indirectly, drawn out or received back\\n(whether as a distribution or a loan from the limited\\nliability partnership or otherwise); and\\n(b) the amount, as at the end of the basis period for the\\nyear\\nof\\nassessment\\nto\\nbe\\ndetermined\\nby\\nthe\\nComptroller, of any profits or gains of the trade,\\nbusiness, profession or vocation from any past year\\nof assessment to which the partner is entitled as a\\npartner of the limited liability partnership but which\\nthe partner has not, directly or indirectly, received\\n(whether as a distribution or a loan from the limited\\nliability partnership or otherwise);\\nIncome Tax Act 1947\\n669\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“past relevant deductions”, in relation to a partner of a limited\\nliability partnership in any year of assessment, means the\\naggregate of any relevant deductions allowed to the partner\\nless any amount deemed under subsection (5) to be income\\nchargeable with tax in any year of assessment before that year\\nof assessment;\\n“precedent partner” has the meaning given by section 71;\\n“relevant deductions”, in relation to a partner of a limited\\nliability partnership, means —\\n(a) any\\ndeduction\\nallowed\\nto\\nthe\\npartner\\nunder\\nsection 35(2) of any allowance arising from any\\ntrade, business or profession carried on by the limited\\nliability partnership;\\n(b) any\\ndeduction\\nallowed\\nto\\nthe\\npartner\\nunder\\nsection 37(3)(a) of any loss incurred in any trade,\\nbusiness, profession or vocation carried on by the\\nlimited liability partnership that is made against the\\npartner’s statutory income from any other source;\\n(c) any transferred deduction transferred by the partner;\\nor\\n(d) any carry‑back deduction allowed to or transferred by\\nthe partner,\\nas the case may be;\\n“transferred deduction”, in relation to a partner of a limited\\nliability partnership, means any allowance arising from any\\ntrade, business or profession, or any loss incurred in any\\ntrade, business, profession or vocation carried on by the\\nlimited liability partnership that is transferred by the partner\\nto a claimant company under section 37B or to a spouse under\\nsection 37C.\\n[39/2017; 41/2020]\\nRegistered business trusts\\n36B.—(1) For the purposes of this Act, except as otherwise\\nprovided, references to a company include a reference to a\\nIncome Tax Act 1947\\n2020 Ed.\\n670\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nregistered business trust or, as the context requires, to the\\ntrustee‑manager of a registered business trust subject to the\\nfollowing modifications:\\n(a) sections 23 and 37 apply to a registered business trust\\nexcept that —\\n(i) any reference to the shareholders of a company is a\\nreference to the unitholders of a registered business\\ntrust;\\n(ii) the unitholders of a registered business trust at any\\ndate are not deemed to be substantially the same as\\nthe unitholders at any other date unless, on both those\\ndates —\\n(A) the same unitholders are entitled to not less\\nthan 50% of any residual profits of the\\nregistered\\nbusiness\\ntrust\\navailable\\nfor\\ndistribution; and\\n(B) the same unitholders are entitled to not less\\nthan 50% of any residual assets of the\\nregistered\\nbusiness\\ntrust\\navailable\\nfor\\ndistribution on winding up;\\n(iii) units in a registered business trust held by or on\\nbehalf of a company are deemed to be held by the\\nshareholders of the company; and\\n(iv) units held by or on behalf of the trustee of the estate\\nof a deceased unitholder or by or on behalf of the\\nperson entitled to those units as beneficiaries under\\nthe will or any intestacy of a deceased unitholder are\\ndeemed to be held by that deceased unitholder;\\n(b) for the purpose of section 24(1) —\\n(i) a body of persons is deemed to have control over a\\nregistered business trust if —\\n(A) the body of persons is a company and it holds\\nmore than 50% of the units in the registered\\nbusiness trust; or\\nIncome Tax Act 1947\\n671\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(B) the body of persons is another registered\\nbusiness trust and they hold on trust for their\\nunitholders more than 50% of the units in the\\nfirstmentioned registered business trust;\\n(ii) a registered business trust is deemed to have control\\nover a company if —\\n(A) the trustee‑manager of the registered business\\ntrust holds on trust for its unitholders more than\\n50% of the total number of issued shares of the\\ncompany; or\\n(B) the unitholders of the registered business trust\\nhold more than 50% of the total number of\\nissued shares of the company;\\n(c) for the purpose of section 37B —\\n(i) a registered business trust is deemed to be a\\nSingapore company if —\\n(A) the registered business trust is established in\\nSingapore; and\\n(B) the trust deed of the registered business trust is\\nexecuted in Singapore and is governed by\\nSingapore law;\\n(ii) any reference to ordinary share or ordinary share\\ncapital in a company is a reference to the units in a\\nregistered business trust; and\\n(iii) any reference to residual assets or residual profits in\\na company is a reference to the residual assets and\\nresidual profits of a registered business trust; and\\n(d) for the purposes of section 13W, any reference to ordinary\\nshares in an investee company which are legally and\\nbeneficially owned by a divesting company is a reference\\nto ordinary shares in the investee company which are trust\\nproperty of the registered business trust.\\n[37/2014]\\nIncome Tax Act 1947\\n2020 Ed.\\n672\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(2) The statutory income of a registered business trust is to be\\ncomputed in accordance with section 35(11).\\n(3) Sections 35(15) and 43(2) do not apply to any registered\\nbusiness trust or unitholders of any registered business trust.\\n(4) In this section, “business trust”, “registered business trust”,\\n“trustee‑manager”, “unit” and “unitholder” have the meanings given\\nby the Business Trusts Act 2004.\\nLimited partnership\\n36C.—(1) For the purposes of this Act, except as otherwise\\nprovided —\\n(a) references to a partnership include references to a limited\\npartnership; and\\n(b) references to partners of a partnership include references to\\npartners of a limited partnership.\\n(2) In ascertaining the income of a limited partnership for the\\npurpose of section 36(1)(a), section 10D applies to income from any\\nbusiness of the making of investments as if the limited partnership\\nwere a company.\\n(3) For any year of assessment, the amount of relevant deductions\\nthat may be allowed to or transferred by a limited partner of a limited\\npartnership must not exceed —\\n(a) in the case of a relevant deduction allowed to the limited\\npartner under section 35(2), an amount equal to the amount\\nascertained in accordance with the formula\\nA \\u0001 B;\\n(b) in the case of a relevant deduction allowed to the limited\\npartner under section 37(3)(a), an amount equal to the\\namount ascertained in accordance with the formula\\nA \\u0001 B \\u0001 C;\\nIncome Tax Act 1947\\n673\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) in the case of a transferred deduction transferred by the\\nlimited partner, an amount equal to the amount ascertained\\nin accordance with the formula\\nA \\u0001 B \\u0001 C \\u0001 D; and\\n(d) in the case of a carry‑back deduction allowed to or\\ntransferred by the limited partner, an amount equal to the\\namount ascertained in accordance with the formula\\nA \\u0001 B \\u0001 C \\u0001 D \\u0001 E;\\nwhere A is the limited partner’s contributed capital in that year of\\nassessment;\\nB is the past relevant deductions already allowed to the\\nlimited partner;\\nC is the relevant deduction allowed to the limited partner in\\nthat year of assessment under section 35(2);\\nD is the relevant deduction allowed to the limited partner in\\nthat year of assessment under section 37(3)(a); and\\nE is the transferred deduction transferred by the limited\\npartner in that year of assessment.\\n(4) If, as a result of any reduction in the contributed capital of a\\nlimited partner of a limited partnership in any year of assessment, the\\npast relevant deductions already allowed to the limited partner\\nexceeds the limited partner’s contributed capital, the excess is\\ndeemed to be income of the limited partner chargeable with tax under\\nsection 10(1)(g) for that year of assessment, and an amount equal to\\nthe excess is deemed to be a loss incurred by the limited partner in the\\ntrade, business, profession or vocation of the limited partnership.\\n(5) Subsections (3) and (4) do not apply in the year of assessment\\nrelating to the basis period in which the limited partner ceases to be a\\nlimited partner of a limited partnership or in any subsequent year of\\nassessment.\\nIncome Tax Act 1947\\n2020 Ed.\\n674\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(6) The precedent partner of a limited partnership must make and\\ndeliver, together with a return of the income of the limited partnership\\nunder section 71 or when required by the Comptroller by written\\nnotice, a return of the contributed capital of each partner of the limited\\npartnership for any year of assessment.\\n(7) For the purposes of this section, the Minister may make\\nregulations to give full effect to or to carry out the purposes of this\\nsection.\\n(8) In this section —\\n“carry‑back deductions”, in relation to a limited partner of a\\nlimited partnership in any year of assessment, means —\\n(a) any deduction allowed to the limited partner of any\\nallowance arising from any trade, business or\\nprofession, or any loss incurred in any trade,\\nbusiness, profession or vocation carried on by the\\nlimited partner in the limited partnership that is made\\nagainst the limited partner’s assessable income from\\nany other source for the immediate preceding year of\\nassessment under section 37D(1) or any of the\\n3 immediate preceding years of assessment under\\nsection 37D(1A); or\\n(b) any allowance arising from any trade, business or\\nprofession, or any loss incurred in any trade,\\nbusiness, profession or vocation carried on by the\\nlimited partner in the limited partnership that is\\ntransferred by the limited partner to a spouse under\\nsection 37E;\\n“contributed capital”, in relation to a limited partner of a limited\\npartnership in any year of assessment, means the aggregate\\nof —\\n(a) the amount, as at the end of the basis period for the\\nyear\\nof\\nassessment\\nto\\nbe\\ndetermined\\nby\\nthe\\nComptroller,\\nwhich\\nthe\\nlimited\\npartner\\nhas\\ncontributed (in cash or in kind but not including\\nany loan by the limited partner to the limited\\nIncome Tax Act 1947\\n675\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\npartnership) to the limited partnership as capital, and\\nhas not, directly or indirectly, drawn out or received\\nback (whether as a distribution or a loan from the\\nlimited partnership or otherwise); and\\n(b) the amount, as at the end of the basis period for the\\nyear\\nof\\nassessment\\nto\\nbe\\ndetermined\\nby\\nthe\\nComptroller, of any profits or gains of the trade,\\nbusiness, profession or vocation from any past year\\nof assessment to which the limited partner is entitled\\nas a limited partner of the limited partnership but\\nwhich the limited partner has not, directly or\\nindirectly, received (whether as a distribution or a\\nloan from the limited partnership or otherwise);\\n“limited partner” has the meaning given by the Limited\\nPartnerships Act 2008;\\n“past relevant deductions”, in relation to a limited partner of a\\nlimited partnership in any year of assessment, means the\\naggregate of any relevant deductions allowed to the partner\\nless any amount deemed under subsection (4) to be income\\nchargeable with tax in any year of assessment before that year\\nof assessment;\\n“precedent partner” has the meaning given by section 71;\\n“relevant deductions”, in relation to a limited partner of a limited\\npartnership, means —\\n(a) any deduction allowed to the limited partner under\\nsection 35(2) of any allowance arising from any\\ntrade, business or profession carried on by the limited\\npartner in the limited partnership;\\n(b) any deduction allowed to the limited partner under\\nsection 37(3)(a) of any loss incurred in any trade,\\nbusiness, profession or vocation carried on by the\\nlimited partner in the limited partnership that is made\\nagainst the limited partner’s statutory income from\\nany other source;\\nIncome Tax Act 1947\\n2020 Ed.\\n676\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) any transferred deduction transferred by the partner;\\nor\\n(d) any carry‑back deduction allowed to or transferred by\\nthe partner,\\nas the case may be;\\n“transferred deduction”, in relation to a limited partner of a\\nlimited partnership, means any allowance arising from any\\ntrade, business or profession, or any loss incurred in any\\ntrade, business, profession or vocation carried on by the\\nlimited partner in the limited partnership that is transferred by\\nthe limited partner to a claimant company under section 37B\\nor to a spouse under section 37C.\\n[39/2017; 41/2020]\\nPART 9\\nASCERTAINMENT OF ASSESSABLE INCOME\\nAssessable income\\n37.—(1) The assessable income of any person from all sources\\nchargeable with tax under this Act for any year of assessment is the\\nremainder of the person’s statutory income for that year after the\\ndeductions allowed in this Part have been made.\\n(2) For the purposes of this section, unless otherwise provided in\\nthis Act or the Economic Expansion Incentives (Relief from Income\\nTax) Act 1967, where a person is a company whose income (if any) is\\nsubject to tax at different rates of tax for any year of assessment, the\\nComptroller\\nmust\\napportion\\nany\\nsum\\nallowable\\nunder\\nsubsection (3)(b), (c), (d) or (f) among the different rates of tax on\\nsuch basis as the Comptroller considers reasonable.\\n(3) Subject to subsections (2) and (3B), there is to be deducted —\\n(a) the amount of loss incurred by that person in any trade,\\nbusiness, profession or vocation, which, if it had been a\\nprofit would have been assessable under this Act, in the\\nfollowing order:\\nIncome Tax Act 1947\\n677\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(i) firstly, any balance of such loss which remains\\nunabsorbed at the end of the basis period for the\\nprevious year of assessment;\\n(ii) secondly, the amount incurred during the basis\\nperiod for the year of assessment;\\n(b) an amount equivalent to twice the value, the value to be\\ndetermined by the Minister or such person as the Minister\\nmay appoint, of an approved donation of —\\n(i) any artefact or work of art made by that person in the\\nyear preceding the year of assessment to an approved\\nmuseum;\\n(ii) any sculpture or work of art for public display made\\nby that person in the year preceding the year of\\nassessment to an approved recipient not being an\\napproved museum; or\\n(iii) money or services for installing or maintaining any\\nsculpture or work of art for public display made by\\nthat person in the year preceding the year of\\nassessment,\\n(b) and for this purpose, “approved” means approved by the\\nMinister or such person as the Minister may appoint;\\n(c) an amount equivalent to twice the amount of any donation\\nof money made by that person in the year preceding the\\nyear of assessment to —\\n(i) the Government; or\\n(ii) any institution of a public character, whether made\\ndirectly to the institution or indirectly through any\\ngrant‑making philanthropic organisation registered\\nby\\nthe\\nComptroller\\nfor\\nthe\\npurpose\\nof\\nthis\\nsub‑paragraph;\\n(d) an amount equivalent to twice the value of any donation of\\na computer (including computer software and peripherals)\\napproved by the Minister or such person as the Minister\\nIncome Tax Act 1947\\n2020 Ed.\\n678\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nmay appoint and made by any company in the year\\npreceding the year of assessment to —\\n(i) any institution of a public character; or\\n(ii) a prescribed educational, research or other institution\\nin Singapore;\\n(e) an amount equivalent to —\\n(i) twice the value of any donation of shares in a\\ncompany listed on the Singapore Exchange; or\\n(ii) twice the value of any donation of units in unit trusts\\ntraded in Singapore or listed on the Singapore\\nExchange,\\n(e) made by an individual in the year preceding the year of\\nassessment to any institution of a public character; and\\n(f) an amount equivalent to twice the value, the value to be\\ndetermined by an appraiser licensed under the Appraisers\\nAct 1906 and approved by the Chief Valuer appointed\\nunder the State Lands Act 1920, of any donation of any\\nimmovable property made by that person in the year\\npreceding the year of assessment to any institution of a\\npublic character.\\n(3A) For the purpose of subsection (3), a reference to “twice the\\nvalue” or “twice the amount” in subsection (3)(b) to (f) is a reference\\nto —\\n(a) in the case of a donation made during either of the\\nfollowing periods:\\n(i) from 1 January 2009 to 31 December 2014 (both\\ndates inclusive);\\n(ii) from 1 January 2016 to 31 December 2026 (both\\ndates inclusive),\\n(a) 2.5 times the value or 2.5 times the amount, as the case may\\nbe; or\\n[Act 30 of 2023 wef 30/10/2023]\\nIncome Tax Act 1947\\n679\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) in the case of a donation made during the period from\\n1 January 2015 to 31 December 2015 (both dates\\ninclusive), 3 times the value or 3 times the amount, as\\nthe case may be.\\n[2/2016; 45/2018; 27/2021]\\n(3B) No deduction may be made under subsection (3)(b), (c), (d),\\n(e) or (f) to a person in respect of any donation made to an approved\\nmuseum, approved recipient not being an approved museum, the\\nGovernment, an institution of a public character or a prescribed\\neducational, research or other institution in Singapore on or after\\n1 January 2012 unless the person provides to —\\n(a) the approved museum, approved recipient, Government,\\ninstitution of a public character or educational, research or\\nother institution; or\\n(b) in\\na\\ncase\\nwhere\\nthe\\ndonation\\nis\\nmade\\nunder\\nsubsection (3)(c) to an institution of a public character\\nindirectly\\nthrough\\na\\ngrant‑making\\nphilanthropic\\norganisation, the grant‑making philanthropic organisation,\\nas the case may be, such information within such time and in such\\nform and manner as the Comptroller may specify.\\n(3C) A donation made on or after 18 December 2012 of any\\nproperty or money referred to in subsection (3)(b)(i) or (ii), (c), (d),\\n(e) or (f) to a recipient under that provision, which is subject to any\\ncondition specified by the donor as to the purpose for which the\\ndonation may be applied (including where the donor specifies another\\npurpose for the application of the donation in the event the\\nfirstmentioned purpose should fail), is treated as a donation under\\nthat provision if (and only if) all of the following requirements are\\nsatisfied:\\n(a) except where the recipient is the Government, each\\nspecified purpose must be one that advances an objective\\nof the recipient set out in its governing instrument;\\n(b) none of the specified purposes must be to advance the\\ninterests (whether directly or indirectly) of a particular\\nrace, belief or religion, or of a particular person or persons;\\nIncome Tax Act 1947\\n2020 Ed.\\n680\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) the donor did not specify or imply in any manner that any\\npart of the property or money that cannot be used for any of\\nthe specified purposes must revert to the donor or be given\\nto any other person (other than the recipient).\\n(3D) To avoid doubt, subsection (3C) applies to a donation of\\nmoney referred to in subsection (3)(c)(ii) to a recipient under that\\nprovision, whether made directly to the recipient or indirectly through\\na grant‑making philanthropic organisation.\\n(3E) In subsections (3C) and (3D) —\\n“governing instrument”, in relation to a recipient under\\nsubsection (3)(b)(i) or (ii), (c), (d), (e) or (f), includes the\\nmemorandum and articles of association, constitution, trust\\ninstrument or any rules or regulations governing the objects\\nand administration of the recipient;\\n“recipient” —\\n(a) in\\nthe\\ncase\\nof\\na\\ndonation\\nreferred\\nto\\nin\\nsubsection (3)(b)(i), means an approved museum;\\n(b) in\\nthe\\ncase\\nof\\na\\ndonation\\nreferred\\nto\\nin\\nsubsection (3)(b)(ii), means an approved recipient\\nnot being an approved museum;\\n(c) in\\nthe\\ncase\\nof\\na\\ndonation\\nreferred\\nto\\nin\\nsubsection (3)(c), means the Government or an\\ninstitution of a public character;\\n(d) in\\nthe\\ncase\\nof\\na\\ndonation\\nreferred\\nto\\nin\\nsubsection (3)(d), means an institution of a public\\ncharacter or a prescribed educational, research or\\nother institution in Singapore; or\\n(e) in\\nthe\\ncase\\nof\\na\\ndonation\\nreferred\\nto\\nin\\nsubsection (3)(e) or (f), means an institution of a\\npublic character.\\n(3F) Subject to subsection (3G), a donation referred to in\\nsubsection (3)(b), (c), (d), (e) or (f) is eligible for a deduction\\nunder that provision even if the donor or another person receives or\\nwill receive a benefit in consequence of making the donation.\\nIncome Tax Act 1947\\n681\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(3G) Where a donor who makes a donation referred to in\\nsubsection (3)(b), (c), (d), (e) or (f), or a person connected with the\\ndonor, receives or will receive a benefit in consequence of making the\\ndonation, a reference to the value or amount of the donation under\\nthat provision excludes an amount equivalent to the value of the\\nbenefit.\\n(3H) The Minister may by rules —\\n(a) exclude any type of benefit from the application of\\nsubsection (3G); and\\n(b) provide for the basis for determining the value of any\\nbenefit under that subsection.\\n(3I) To avoid doubt, the Comptroller may make an assessment or\\nadditional assessment under section 74 if the benefit is received only\\nafter the deduction of the donation under subsection (3) is made.\\n(3J) In subsection (3G), a person is connected with the donor if —\\n(a) the person is a relative of the donor within the meaning of\\nsection 37N(12);\\n(b) the person, or a person who is the person’s relative within\\nthe meaning of section 37N(12), directly or indirectly\\ncontrols the donor;\\n(c) the person is controlled, directly or indirectly, by the donor;\\nor\\n(d) the person and the donor, directly or indirectly, are under\\nthe control of a common person.\\n(3K) No\\napproval\\nmay\\nbe\\ngranted\\nfor\\nthe\\npurposes\\nof\\nsubsection (3)(d) for a donation made on or after 21 February 2017.\\n[39/2017]\\n(4) A deduction under subsection (3)(a)(i) is to be made in the\\nfollowing order:\\n(a) firstly, against statutory income from the same trade,\\nbusiness, profession or vocation;\\n(b) secondly, against statutory income from any other trade,\\nbusiness, profession or vocation;\\nIncome Tax Act 1947\\n2020 Ed.\\n682\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) thirdly, against statutory income from any other source.\\n(5) A deduction under subsection (3)(a)(i) is to be made as far as\\npossible in the order specified in subsection (4) from the statutory\\nincome of the first year of assessment after the year in which such loss\\nwas incurred, and, so far as it cannot be so made, then from the\\nstatutory income of the next year of assessment, and so on.\\n(6) Where, in any year of assessment, the amount of loss incurred\\nby any person during the year preceding the year of assessment is not\\nfully deducted under subsection (3)(a)(ii), the balance of such loss,\\nafter deducting any amount of such loss transferred to a claimant\\ncompany under section 37B or to a spouse under section 37C or 37E,\\nor deducted against income for the immediate preceding year of\\nassessment under section 37D(1) or any of the 3 immediate preceding\\nyears of assessment under section 37D(1A), is available for deduction\\nagainst the person’s statutory income for subsequent year of\\nassessment under subsection (3)(a)(i).\\n[39/2017; 41/2020]\\n(7) A deduction under this section to any person in respect of any\\nsum allowable under subsection (3)(b), (c), (d), (e) or (f) is only\\nallowed against the person’s statutory income after the deduction\\nunder subsection (3)(a) and sections 37AA and 37N.\\n[Act 30 of 2023 wef 30/10/2023]\\n(8) Subject to subsections (2), (7) and (12), the deduction to any\\nperson in respect of any sum allowable under subsection (3)(b), (c),\\n(d), (e) or (f) is to be allowed —\\n(a) as far as possible against the person’s statutory income of\\nthe first year of assessment after the year in which the\\ndonation was made by the person; and\\n(b) so far as the deduction cannot be so allowed, after\\ndeducting any of such sum transferred to a claimant\\ncompany under section 37B or to a spouse under\\nsection 37C, then from the person’s statutory income of\\nthe next year of assessment,\\nand so on, except that any balance of the donation not deducted\\nagainst the person’s statutory income of the fifth year of assessment\\nIncome Tax Act 1947\\n683\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nafter the year of assessment relating to the basis period in which the\\ndonation was made is disregarded.\\n(9) For the purposes of subsections (7) and (8), any sum allowable\\nunder subsection (3)(b), (c), (d), (e) or (f) in respect of any donation\\nmade on an earlier date is deemed to have been deducted first.\\n(10) For the purposes of subsection (3), the loss incurred during any\\nyear is computed, where the Comptroller so decides, by reference to\\nthe year ending on a day in such year which would have been adopted\\nunder section 35(4) for the computation of the statutory income of the\\nfollowing year of assessment if a profit had arisen.\\n(10A) For the purposes of subsection (3)(b) to (f), the reference to\\nthe year preceding any year of assessment is —\\n(a) if the person making the donation is not an individual and\\nis one to whom a direction is made under section 35(4);\\n(b) if the persons making the donation are the partners of a\\npartnership, a direction is made under section 35(4) in\\nrelation to the income of that partnership, and the donation\\nis made by them in the name of the partnership; or\\n(c) if the person making the donation is an individual to whom\\na direction is made under section 35(4), and the donation is\\nmade by the person in the name of the trade, business or\\nprofession to which the accounts relate,\\na reference to —\\n(d) the period of 12 months or such other period as the\\nComptroller may allow, ending on the day the accounts of\\nthe person or the partnership (as the case may be) are made\\nup to; or\\n(e) such other period as the Comptroller, having regard to any\\nspecial circumstance, otherwise directs.\\n(11) No deduction is allowed under this section to any person in\\nrespect of any sum which has been allowed as a deduction under this\\nsection against the income of his or her spouse chargeable in his or\\nher own name.\\nIncome Tax Act 1947\\n2020 Ed.\\n684\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(12) Despite subsection (3), the amount of any loss incurred by a\\ncompany in any trade or business or any sum allowable under\\nsubsection (3)(b), (c), (d), (e) or (f) to a company in respect of any\\ndonation is disregarded unless the Comptroller is satisfied that the\\nshareholders of the company on the last day of the year in which the\\nloss was incurred or the donation was made (as the case may be) were\\nsubstantially the same as the shareholders of the company on the first\\nday of the year of assessment in which such loss or donation would\\notherwise be deductible under subsection (3).\\n(13) A loss or donation disregarded under subsection (12) must not\\nbe allowed in any subsequent year of assessment.\\n(14) For the purposes of subsection (12) —\\n(a) the shareholders of a company at any date are not deemed\\nto be substantially the same as the shareholders at any other\\ndate unless, on both those dates, not less than 50% of the\\ntotal number of issued shares of the company are held by or\\non behalf of the same persons;\\n(b) shares in a company held by or on behalf of another\\ncompany are deemed to be held by the shareholders of the\\nlast mentioned company; and\\n(c) shares held by or on behalf of the trustee of the estate of a\\ndeceased shareholder or by or on behalf of the person\\nentitled to those shares as beneficiaries under the will or\\nany intestacy of a deceased shareholder are deemed to be\\nheld by that deceased shareholder.\\n(15) For the purpose of subsection (14), where any part of a share of\\na shareholder is not fully paid up, there is to be disregarded a\\nproportion equal to\\nA\\nB ;\\nwhere A is the amount that has not been paid in respect of the\\nshare; and\\nB is the total amount payable in respect of the share.\\nIncome Tax Act 1947\\n685\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(16) The Minister or such person as the Minister may appoint may,\\nwhere there is a substantial change in the shareholders of a company\\nand the Minister or appointed person is satisfied that such change is\\nnot for the purpose of deriving any tax benefit or obtaining any tax\\nadvantage,\\nexempt\\nthat\\ncompany\\nfrom\\nthe\\nprovisions\\nof\\nsubsection (12).\\n(17) Upon an exemption under subsection (16) —\\n(a) any loss referred to in subsection (3)(a) incurred by a\\ncompany may only be deducted against the profits from the\\nsame trade or business of the company in respect of which\\nthat loss was incurred; and\\n(b) any balance of the donation referred to in subsection (8) is\\nallowed against the person’s statutory income of the year of\\nassessment in which such donation would otherwise be\\ndeductible under that subsection.\\n(18) For the purposes of subsection (3)(b), “museum” includes any\\ninstitution established for the purpose of acquiring any collection of\\nartefacts and making them accessible to the public.\\n(18A) For the purposes of subsection (3)(c)(ii), the Minister may\\nmake regulations with respect to the following matters:\\n(a) the\\nregistration\\nof\\na\\ngrant‑making\\nphilanthropic\\norganisation;\\n(b) the deregistration of an organisation referred to in\\nparagraph (a);\\n(c) the issue of tax deduction receipts and maintenance of\\nrecords and accounts by a registered grant‑making\\nphilanthropic organisation for donations received by it\\nand the audit of such records and accounts;\\n(d) the requirements to be complied with by a registered\\ngrant‑making philanthropic organisation;\\n(e) any other matter for giving full effect to or for carrying out\\nthe purposes of that provision.\\nIncome Tax Act 1947\\n2020 Ed.\\n686\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(18B) Where a registered grant‑making philanthropic organisation\\ncontravenes any regulation made under subsection (18A), being a\\nregulation prescribed as one to which this subsection applies —\\n(a) the organisation is liable to pay to the Comptroller a\\nfinancial penalty of the higher of $100 and the amount\\nascertained by the formula\\n0:4 \\u0003 the total amount of the donation to which the\\n ​ contravention relates; and\\n(b) the Minister or such person as the Minister may appoint\\nmay deregister the organisation.\\n(18BA) The Comptroller may for any good cause remit the whole\\nor any part of the financial penalty payable under subsection (18B).\\n[37/2014]\\n(18C) Despite anything to the contrary in this Act or any other\\nwritten law, a registered grant‑making philanthropic organisation\\nmust keep and retain in safe custody all records and accounts in\\nrespect of any donation maintained under regulations made under\\nsubsection (18A), for a period of 7 years or such period as may be\\nprescribed by regulations from the year of assessment relating to the\\nyear in which the donation is received by the organisation.\\n(18D) In\\nsubsection\\n(3)(c)(ii),\\n“grant‑making\\nphilanthropic\\norganisation” means —\\n(a) a charity registered or exempt from registration under the\\nCharities Act 1994; or\\n(b) a not‑for‑profit organisation approved under section 13R.\\n(19) For the purposes of subsection (3)(e) and subject to\\nsubsection (3G) —\\n(a) the amount in respect of any donation of shares in a\\ncompany or units in a unit trust listed on the Singapore\\nExchange is the price of such shares or units (as the case\\nmay be) in the open market at the last transaction of such\\nshares or units on the date of the donation;\\nIncome Tax Act 1947\\n687\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) the amount in respect of any donation of units in unit trusts\\ntraded in Singapore (other than those listed on the\\nSingapore Exchange) is the bid price of such units\\nimmediately after the date of the donation quoted by the\\nmanager of the unit trusts; and\\n(c) “date of the donation”, in relation to any shares or units\\nreferred to in paragraph (a) or (b) (as the case may be),\\nmeans the date of legal transfer to the institution of a public\\ncharacter of the donation of such shares or units.\\nAdjustment of capital allowances, losses or donations between\\nincome subject to tax at different rates\\n37A.—(1) This section applies where —\\n(a) a company has income subject to tax at different rates of\\ntax for the year of assessment concerned, and there are\\nUALD in respect of income that is subject to tax at one of\\nthose rates of tax;\\n[Act 33 of 2022 wef 04/11/2022]\\n(b) a company has income subject to tax at one rate of tax for\\nthe year of assessment concerned and income subject to tax\\nat a different rate of tax for an earlier year of assessment,\\nand there are UALD in respect of the second‑mentioned\\nincome;\\n[41/2020]\\n[Act 33 of 2022 wef 04/11/2022]\\n(c) a body of persons has income subject to tax at different\\nrates of tax for the year of assessment concerned (being the\\nyear of assessment 2023 or a subsequent year of\\nassessment), and there are UALD in respect of income\\nthat is subject to tax at one of those rates of tax; or\\n[Act 33 of 2022 wef 04/11/2022]\\n(d) a body of persons has income subject to tax at one rate of\\ntax for the year of assessment concerned (being the year of\\nassessment 2023 or a subsequent year of assessment) and\\nincome subject to tax at a different rate of tax for an earlier\\nIncome Tax Act 1947\\n2020 Ed.\\n688\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nyear of assessment, and there are UALD in respect of the\\nsecond-mentioned income.\\n[Act 33 of 2022 wef 04/11/2022]\\n(2) For the purposes of subsection (1), income may be subject to tax\\nat different rates of tax even if the income is derived from carrying on\\nthe same trade or business.\\n[41/2020]\\n(3) Subsection (1)(b) and (d) does not include a case where one of\\nthe rates of tax is that in section 43(1)(a) and the other rate of tax is\\nalso that in section 43(1)(a), but amended.\\n[41/2020]\\n[Act 33 of 2022 wef 04/11/2022]\\n(4) Where the UALD relate to income of the company that is\\nsubject to tax at the lower rate of tax, then those UALD are to be\\ndeducted against the income of the company subject to tax at the\\nhigher rate of tax (if it is chargeable income) in accordance with the\\nfollowing provisions:\\n(a) in a case where the amount of those UALD does not exceed\\nthat chargeable income multiplied by the adjustment\\nfactor —\\n(i) that chargeable income is reduced by an amount\\narrived at by dividing the amount of those UALD by\\nthe adjustment factor; and\\n(ii) the amount of those UALD is accordingly nil;\\n(b) in any other case —\\n(i) the amount of those UALD is reduced by an amount\\narrived at by multiplying the amount of that\\nchargeable income by the adjustment factor, and —\\n(A) the remaining UALD; or\\n(B) if the remaining UALD are then reduced by\\none\\nor\\nmore\\napplications\\nof\\nsubsection (6)(b) — the remaining UALD (if\\nany) after such reduction or reductions,\\n(i) are added to, and deemed to form part of, the\\ncorresponding allowances, losses or donations in\\nIncome Tax Act 1947\\n689\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nrespect of the income subject to tax at the lower rate\\nof tax, for the next succeeding year of assessment\\nand any subsequent year of assessment in accordance\\nwith section 23 or 37, as the case may be; and\\n(ii) that chargeable income is accordingly nil.\\n[41/2020]\\n(5) Where the UALD relate to income of the company or body of\\npersons that is subject to tax at the higher rate of tax, then those\\nUALD are to be deducted against the income of the company or body\\nof persons subject to tax at the lower rate of tax (if it is chargeable\\nincome) in accordance with the following provisions:\\n(a) in a case where the amount of those UALD does not exceed\\nthat chargeable income divided by the adjustment factor —\\n(i) that chargeable income is reduced by an amount\\narrived at by multiplying the amount of those UALD\\nby the adjustment factor; and\\n(ii) the amount of those UALD is accordingly nil;\\n(b) in any other case —\\n(i) the amount of those UALD is reduced by an amount\\narrived at by dividing the amount of that chargeable\\nincome by the adjustment factor, and —\\n(A) the remaining UALD; or\\n(B) if the remaining UALD are then reduced by\\none\\nor\\nmore\\napplications\\nof\\nsubsection (6)(b) — the remaining UALD (if\\nany) after such reduction or reductions,\\n(i) are added to, and deemed to form part of, the\\ncorresponding allowances, losses or donations in\\nrespect of the income subject to tax at the higher rate\\nof tax, for the next succeeding year of assessment\\nand any subsequent year of assessment in accordance\\nwith section 23 or 37, as the case may be; and\\nIncome Tax Act 1947\\n2020 Ed.\\n690\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(ii) that chargeable income is accordingly nil.\\n[41/2020]\\n[Act 33 of 2022 wef 04/11/2022]\\n(6) Where, in a case mentioned in subsection (1)(a), the company\\nhas income subject to tax at 3 or more rates of tax (called in this\\nsubsection\\napplicable\\ntax\\nrates),\\nthen\\nfor\\nthe\\npurposes\\nof\\nsubsection (4) or (5) —\\n(a) the company may elect its income that is subject to tax at\\none of the applicable tax rates as its income that is subject\\nto tax at a lower or higher rate of tax, as the case may be;\\n(b) the UALD in respect of the company’s income that is\\nsubject to tax at the lower or higher rate of tax (as the case\\nmay be), that have been reduced in accordance with\\nsubsection (4)(b) or (5)(b), may be further deducted in\\naccordance with that provision against the company’s\\nremaining income that is subject to tax at an applicable tax\\nrate; and\\n(c) paragraph (b) continues to apply until the amount of the\\nUALD becomes nil or the company has no more income\\nsubject to tax at an applicable rate against which the\\ndeduction may be made.\\n[41/2020]\\n(7) Where —\\n(a) the income in respect of which there are UALD is subject\\nto tax at the lower rate of tax; and\\n(b) the company ceases to derive that income in the basis\\nperiod for the year of assessment concerned,\\nsubsection (4) applies, with the necessary modifications, to the\\nUALD mentioned in paragraph (a) for the purpose of deducting them\\nagainst the income of the company subject to tax at the higher rate of\\ntax (if it is chargeable income) for any year of assessment subsequent\\nto the year of assessment concerned.\\n[41/2020]\\nIncome Tax Act 1947\\n691\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(8) Where —\\n(a) the income in respect of which there are UALD is subject\\nto tax at the higher rate of tax; and\\n(b) the company or body of persons ceases to derive that\\nincome in the basis period for the year of assessment\\nconcerned,\\nsubsection (5) applies, with the necessary modifications, to the\\nUALD mentioned in paragraph (a) for the purpose of deducting them\\nagainst the income of the company or body of persons subject to tax at\\nthe lower rate of tax (if it is chargeable income) for any year of\\nassessment subsequent to the year of assessment concerned.\\n[41/2020]\\n[Act 33 of 2022 wef 04/11/2022]\\n(9) Nothing in this section is to be construed as affecting the\\napplication of section 23 or 37 unless otherwise provided in this\\nsection.\\n[41/2020]\\n(10) If, during the basis period for any year of assessment (called in\\nthis subsection the relevant year of assessment), a company only\\nderives income that is exempt from tax, then subsection (5) applies,\\nwith the necessary modifications, to any year of assessment\\nsubsequent to the relevant year of assessment as if any sum\\nallowable under section 37(3)(b), (c), (d) or (f) in respect of any\\ndonation made by that company during the basis period for the\\nrelevant year of assessment were unabsorbed donation in respect of\\nthe income of a company that is subject to tax at the rate of tax\\nspecified in section 43(1)(a).\\n[41/2020]\\n(11) In this section —\\n“adjustment factor” means the factor ascertained in accordance\\nwith the formula\\nA\\nB ;\\nwhere —\\n(a) A is the higher rate of tax; and\\nIncome Tax Act 1947\\n2020 Ed.\\n692\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) B is the lower rate of tax;\\n“allowances” means allowances under section 16, 17, 18B, 18C,\\n19, 19A, 19B, 19C, 19D, 20, 21, 22 or 23, including\\nunabsorbed allowances that arose in any year of assessment\\nbefore the year of assessment 1994;\\n“donations” means donations that are deductible including any\\nunabsorbed donations allowable under section 37;\\n“losses” means losses that are deductible under section 37\\nincluding unabsorbed losses incurred in respect of any year of\\nassessment before the year of assessment 1994;\\n“rate of tax” means —\\n(a) the rate of tax under section 43(1)(a);\\n[Act 33 of 2022 wef 04/11/2022]\\n(b) in the case of a company, the concessionary rate of\\ntax in accordance with —\\n(i) any order made under section 13(12); or\\n(ii) section 43A, 43C, 43D of this Act as in force\\nbefore 29 December 2016, 43D, 43F of this Act\\nas in force before 29 December 2016, 43E, 43H\\nof this Act as in force before 29 December\\n2016, 43F, 43G, 43K of this Act as in force\\nbefore 29 December 2016, 43L of this Act as in\\nforce before 1 November 2006, 43M of this Act\\nas in force before 3 December 2003, 43H, 43I,\\n43J, 43K, 43S of this Act as in force before\\n29 December 2016, 43T of this Act as in force\\nbefore 29 December 2016, 43U of this Act as in\\nforce before 26 October 2017, 43V of this Act\\nas in force before 29 December 2016, 43L,\\n43M, 43N, 43O, 43P, 43Q, 43R, 43S, 43T, 43U,\\n43V, 43W or 43X, or the regulations made\\nunder any of those sections, as the case may be;\\nor\\n[Act 33 of 2022 wef 04/11/2022]\\nIncome Tax Act 1947\\n693\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) in the case of a body of persons, the concessionary\\nrate of tax in accordance with regulations made under\\nsection 43H;\\n[Act 33 of 2022 wef 04/11/2022]\\n“UALD” or “unabsorbed allowances, losses or donations”, in\\nrelation to the income of a company or body of persons that is\\nsubject to tax at a particular rate of tax, means the balance of\\nsuch allowances, losses or donations after deducting the\\nexpenses, donations, allowances or losses allowable under\\nthis Act against that income.\\n[37B\\n[41/2020; 27/2021]\\n[Act 33 of 2022 wef 04/11/2022]\\nDeduction for donation of money by person related to or\\nconnected with company approved under section 13O or\\nperson, master fund, etc., approved under section 13U\\n37AA.—(1) For the purpose of ascertaining the assessable income\\nfor any year of assessment of a person mentioned in subsection (2)\\nthat is approved as an approved donor for the purpose of this section,\\nthere is to be deducted an amount computed in accordance with\\nsubsection (4) of all donations of money for a purpose specified by\\nthe Minister or authorised body to the approved recipients, and made\\nin the year immediately preceding the year of assessment, by the\\napproved donor to all persons approved as approved recipients for the\\npurpose of this section.\\n(2) The approved donor is one that is related (directly or indirectly)\\nin accordance with rules made under subsection (13) to any of the\\nfollowing:\\n(a) a company incorporated and resident in Singapore and\\napproved under section 13O (called in this section a\\nsection 13O company);\\n(b) a person, master fund, feeder fund, SPV, master‑feeder\\nfund structure, master‑feeder fund‑SPV structure or master\\nfund‑SPV structure approved under section 13U (called in\\nthis section a section 13U vehicle).\\nIncome Tax Act 1947\\n2020 Ed.\\n694\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(3) Any deduction under subsection (1) is made only after the\\ndeduction (if any) under section 37(3)(a).\\n(4) The amount of deduction under subsection (1) in any year of\\nassessment for any approved donor must not exceed the lower of the\\nfollowing:\\n(a) the total amount of all donations of money made by the\\napproved donor to approved recipients in the year\\nimmediately preceding the year of assessment;\\n(b) 40% of the statutory income of the approved donor for that\\nyear of assessment.\\n(5) Any balance of the amount that is not deducted is not available\\nas a deduction against the approved donor’s income for any\\nsubsequent year of assessment and is disregarded.\\n(6) The Minister or an authorised body may, during the period from\\n1 January 2024 to 31 December 2028 (both dates inclusive) —\\n(a) approve a person mentioned in subsection (2) as an\\napproved donor; and\\n(b) approve a person or a class of persons as an approved\\nrecipient or approved recipients.\\n(7) The approval under subsection (6) is subject to any condition\\nthat the Minister or authorised body may impose.\\n(8) There must not be more than one approved donor at any one\\ntime for each section 13O company or section 13U vehicle.\\n(9) Any deduction under subsection (1) is subject to any condition\\nprecedent or condition subsequent that the Minister or authorised\\nbody may impose on the fund manager managing the funds of the\\nsection 13O company or the section 13U vehicle concerned.\\n(10) If the fund manager fails to comply with any of the conditions\\nsubsequent, the deduction allowed to the approved donor is treated as\\nthe approved donor’s income for the year of assessment in which the\\nComptroller discovers the non-compliance.\\n(11) No deduction may be made under subsection (1) to an\\napproved donor in respect of any donation made to an approved\\nIncome Tax Act 1947\\n695\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nrecipient unless the approved donor provides to the approved\\nrecipient any information within the time and in the form and\\nmanner specified by the Comptroller.\\n(12) Section 37(3C), (3E) (but not the definition of “recipient”),\\n(3F), (3G), (3H), (3I), (3J) and (10A) (except paragraph (b)) applies\\nin relation to a donation of money under subsection (1) as those\\nprovisions\\napply\\nin\\nrelation\\nto\\na\\ndonation\\nmentioned\\nin\\nsection 37(3)(b), (c), (d), (e) or (f), subject to the necessary\\nmodifications and the following other modifications:\\n(a) a reference in section 37(3C), (3F), (3G) and (3J) to a\\ndonor is to an approved donor;\\n(b) a reference in section 37(3C) to a recipient under\\nsection 37(3)(b)(i) or (ii), (c), (d), (e) or (f) is to an\\napproved recipient;\\n(c) a reference in section 37(10A)(a) and (c) to the person\\nmaking the donation is to the approved donor;\\n(d) such other modifications as may be prescribed by rules\\nmade under subsection (13).\\n(13) The Minister may make rules with respect to the following\\nmatters:\\n(a) the manner in which a person must be related (directly or\\nindirectly) to a section 13O company or a section 13U\\nvehicle, to be an approved donor;\\n(b) the conditions of approval of an approved recipient;\\n(c) the matters in section 37(3H) as applied by subsection (12);\\n(d) any other matter for giving full effect to or for carrying out\\nthe purposes of this provision.\\n(14) In\\nthis\\nregulation,\\n“feeder\\nfund”,\\n“master‑feeder\\nfund\\nstructure”, “master‑feeder fund‑SPV structure”, “master fund‑SPV\\nstructure”, “master fund” and “SPV” have the meanings given by\\nsection 13U.\\n[Act 30 of 2023 wef 01/01/2024]\\nIncome Tax Act 1947\\n2020 Ed.\\n696\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nGroup relief for Singapore companies\\n37B.—(1) Subject to the provisions of this section, a transferor\\ncompany may transfer any qualifying deduction for any year of\\nassessment to a claimant company of the same group which has\\nclaimed the qualifying deduction against its assessable income for the\\nsame year of assessment.\\n(2) A transfer of a qualifying deduction for any year of assessment\\nmay be made only if the transferor company and the claimant\\ncompany, for that year of assessment —\\n(a) are members of the same group on the last day of the basis\\nperiod;\\n(b) have accounting periods ending on the same day; and\\n(c) have made an election under subsection (11).\\n(3) For the purposes of this section, 2 Singapore companies are\\nmembers of the same group if —\\n(a) at least 75% of the total number of issued ordinary shares\\nin one company are beneficially held, directly or indirectly,\\nby the other; or\\n(b) at least 75% of the total number of issued ordinary shares\\nin each of the 2 companies are beneficially held, directly or\\nindirectly, by a third Singapore company.\\n(4) A Singapore company that beneficially holds, directly or\\nindirectly, at least 75% of the total number of issued ordinary\\nshares in another Singapore company, does not satisfy subsection (3)\\nunless additionally it is beneficially entitled to at least 75% of —\\n(a) any residual profits of the other company available for\\ndistribution to that company’s equity holders; and\\n(b) any residual assets of the other company available for\\ndistribution to that company’s equity holders on a winding\\nup.\\n(5) For the purpose of subsection (3), where a Singapore company\\nbeneficially owns, directly or indirectly, a fraction of the total number\\nof issued ordinary shares of a second Singapore company which in\\nIncome Tax Act 1947\\n697\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nturn beneficially owns, directly or indirectly, a fraction of the total\\nnumber of issued ordinary shares of a third Singapore company, the\\nSingapore company is deemed to have a beneficial ownership of the\\nnumber of issued ordinary shares of the third Singapore company\\nequal to such fraction of the total number as results from the\\nmultiplication of those 2 fractions; and where the third Singapore\\ncompany beneficially owns, directly or indirectly, a fraction of the\\ntotal number of issued ordinary shares of a fourth Singapore\\ncompany, the Singapore company is deemed to have a beneficial\\nownership of the number of issued ordinary shares of the fourth\\nSingapore company equal to such fraction of the total number as\\nresults from the multiplication of those 3 fractions, and so on.\\n(6) A transfer of qualifying deduction may be —\\n(a) made by a transferor company to more than one claimant\\ncompany,\\nprovided\\nthat\\nthe\\namount\\nof\\nqualifying\\ndeduction\\ntransferred\\nis\\nfully\\ndeducted\\nagainst\\nthe\\nassessable income of the first claimant company before\\nany excess qualifying deduction is transferred and\\ndeducted against the assessable income of the second\\nclaimant company and so on; or\\n(b) claimed by a claimant company from more than one\\ntransferor company, provided that the amount of qualifying\\ndeduction transferred from the first transferor company is\\nfully deducted against the assessable income of the\\nclaimant\\ncompany\\nbefore\\nany\\nqualifying\\ndeduction\\ntransferred\\nfrom\\na\\nsecond\\ntransferor\\ncompany\\nis\\ndeducted against the assessable income of the claimant\\ncompany and so on.\\n(7) Qualifying deductions must be transferred to a claimant\\ncompany in accordance with the priority specified in the election\\nmade under subsection (11), and in the following order:\\n(a) any allowance specified in subsection (14)(a);\\n(b) any loss specified in subsection (14)(b);\\n(c) any donation specified in subsection (14)(c).\\nIncome Tax Act 1947\\n2020 Ed.\\n698\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(8) Where, in any year of assessment, a transfer of qualifying\\ndeduction cannot be effected in accordance with the order of priority\\nspecified by any transferor company or claimant company in its\\nelection made under subsection (11), the transfer is to be allowed in\\nsuch manner as the Comptroller thinks reasonable and proper.\\n(9) Subject to subsection (10), the amount of qualifying deduction\\nthat may be transferred to a claimant company from a transferor\\ncompany for any year of assessment is —\\n(a) the available assessable income of the claimant company\\nequal to\\nA\\nB \\u0003 C;\\nwhere A is the number of days in the continuous period ending on\\nthe last day of the basis period for that year of assessment\\nduring which the companies are members of the same\\ngroup or, if the continuous periods of the transferor\\ncompany and the claimant company are different, the\\nnumber of days in the shorter of the continuous periods;\\nB is the number of days in the basis period of the claimant\\ncompany for that year of assessment; and\\nC is the assessable income of the claimant company for that\\nyear of assessment; or\\n(b) the available qualifying deduction of the transferor\\ncompany equal to\\nA\\nD \\u0003 E;\\nwhere A has the meaning given by paragraph (a);\\nD is the number of days in the basis period of the transferor\\ncompany for that year of assessment; and\\nE is the amount of qualifying deduction of the transferor\\ncompany for that year of assessment,\\nIncome Tax Act 1947\\n699\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nwhichever is the lower.\\n(10) Where, for any year of assessment, there are 2 or more —\\n(a) claims for any qualifying deduction by a claimant\\ncompany,\\nthe\\navailable\\nassessable\\nincome\\nof\\nthe\\nclaimant company is, for the purpose of subsection (9)(a),\\nA\\nB \\u0003 C \\u0001 F;\\nwhere A, B and C have the meanings given by subsection (9)(a);\\nand\\nF is the aggregate of the amounts of qualifying\\ndeductions previously claimed from any other\\ntransferor company for the same year of\\nassessment, if any;\\n(b) transfers of any qualifying deduction by a transferor\\ncompany, the available qualifying deduction of the\\ntransferor company is, for the purpose of subsection (9)(b),\\nA\\nD \\u0003 E \\u0001 G;\\nwhere A, D and E have the meanings given by subsection (9)(b);\\nand\\nG is the aggregate of the amounts of qualifying\\ndeductions previously transferred to any other\\nclaimant company for the same year of\\nassessment, if any.\\n(11) Every transferor company and every claimant company of the\\nsame group must, at the time of lodgment of their returns of income\\nfor any year of assessment or within such further time as the\\nComptroller may allow, make an irrevocable election to transfer or\\nclaim qualifying deductions, as the case may be.\\n(12) An election under subsection (11) must be accompanied by —\\n(a) such particulars as the Comptroller may require; and\\nIncome Tax Act 1947\\n2020 Ed.\\n700\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) a list of companies, in order of priority, to which qualifying\\ndeductions would be transferred or from which such\\ndeductions would be claimed, as the case may be.\\n(13) Despite subsection (11), where at the time of furnishing its\\nreturn of income under section 62(1) for any year of assessment —\\n(a) a company has assessable income, but is subsequently\\ndetermined by the Comptroller to have any qualifying\\ndeduction for that year of assessment; or\\n(b) a\\ncompany\\nhas\\nany\\nqualifying\\ndeduction,\\nbut\\nis\\nsubsequently determined by the Comptroller to have\\nassessable income for that year of assessment,\\nthe Comptroller may —\\n(c) allow\\nthe\\ncompany\\nto\\nmake\\nan\\nelection\\nunder\\nsubsection (11); and\\n(d) allow any company of the same group to include that\\ncompany in its list of companies submitted previously by it\\nunder subsection (11),\\nwithin such time and in such manner as the Comptroller may\\ndetermine.\\n(14) For the purposes of this section, subject to subsection (15) and\\nsections 35, 37 and 37A, qualifying deductions, in relation to a\\ntransferor company, for each year of assessment, are —\\n(a) any allowance falling to be made under section 16, 17, 18A\\n(repealed), 18B, 18C, 19, 19A, 19B, 19C, 19D or 20 for\\nthat year of assessment that is in excess of the transferor\\ncompany’s income from all sources chargeable to tax for\\nthat year of assessment;\\n(b) any loss incurred by the transferor company in the basis\\nperiod for that year of assessment in any trade or business\\nwhich, if it had been a profit would have been assessable\\nunder this Act, and which is not deducted for that year of\\nassessment because of insufficiency of statutory income of\\nthe transferor company; and\\nIncome Tax Act 1947\\n701\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) any donation made by the transferor company under\\nsection 37(3)(b), (c), (d) or (f) in the year preceding that\\nyear of assessment that is not deducted for that year of\\nassessment because of insufficiency of statutory income of\\nthe transferor company.\\n(15) Despite subsection (14), the following companies are not\\nentitled to transfer the following items of qualifying deductions:\\n(a) any company to which section 10D applies, in respect of\\nqualifying deductions under subsection (14)(a) (except in\\nrelation to allowances falling under sections 16, 17, 18B\\nand 18C) and (b);\\n(b) any company to which section 97D or 97G of the\\nEconomic Expansion Incentives (Relief from Income\\nTax) Act 1967 in force immediately before 28 April\\n2004 or section 97Vof the Economic Expansion Incentives\\n(Relief from Income Tax) Act 1967 in force immediately\\nbefore 19 April 2016 applies, in respect of qualifying\\ndeductions under subsection (14)(b) where the loss is\\ndeemed to be a loss incurred from a trade or business for\\nthe purposes of any of those sections;\\n(c) any company, in respect of qualifying deductions under\\nsubsection (14) relating to any income that is fully exempt\\nfrom tax under the provisions of this Act or the Economic\\nExpansion Incentives (Relief from Income Tax) Act 1967;\\n(d) any company, in respect of qualifying deductions under\\nsubsection (14) relating to any income the tax on which is\\nremitted under the provisions of this Act, unless the\\nMinister otherwise approves.\\n[37/2014; 11/2016; 32/2019]\\n(15A) This section does not entitle —\\n(a) a company that is a life insurer to transfer to another\\ncompany that is a life insurer, any qualifying deduction\\nrelating to any income from a participating fund of the\\nfirstmentioned\\nlife\\ninsurer\\nthat\\nis\\napportioned\\nto\\npolicyholders in accordance with regulations made under\\nsection 43(9) or 43C; or\\nIncome Tax Act 1947\\n2020 Ed.\\n702\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) a company that is a life insurer to claim any qualifying\\ndeduction of another company that is a life insurer against\\nany\\nincome\\nof\\nthe\\nfirstmentioned\\ninsurer\\nfrom\\na\\nparticipating fund that is apportioned to policyholders in\\naccordance with regulations made under section 43(9) or\\n43C.\\n[27/2021]\\n(16) Despite subsections (9) and (10), where the Comptroller\\ndiscovers that any transfer or claim of qualifying deduction which has\\nbeen made from or to any company is or has become excessive, the\\nComptroller may make an assessment upon the company under\\nsection 74 on the amount which, in the Comptroller’s opinion, ought\\nto have been charged to tax.\\n(17) Section 37A applies, with the necessary modifications, to the\\ntransfer of any qualifying deduction from a transferor company to a\\nclaimant company, where applicable, and for the purpose of such\\napplication, any reference in section 37A(4) and (5) to —\\n(a) unabsorbed allowances, losses or donations is a reference\\nto qualifying deductions;\\n(b) corresponding allowances, losses or donations is a\\nreference to allowances, losses or donations;\\n(c) income of a company subject to tax at a higher or lower\\nrate of tax (as the case may be) is a reference to income of a\\ntransferor company subject to tax at a higher or lower rate\\nof tax, respectively; and\\n(d) chargeable income of the company is a reference to\\nchargeable income of a claimant company.\\n[41/2020]\\n(18) For the purposes of this section, the Minister may make\\nregulations to provide generally for giving full effect to or for\\ncarrying out the purposes of this section.\\n(19) In this section —\\n“assessable income”, in relation to a claimant company or\\ntransferor\\ncompany,\\nmeans\\nassessable\\nincome\\nof\\nthe\\ncompany as determined under section 37 after deducting\\nIncome Tax Act 1947\\n703\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nany deduction allowed under section 37F and investment\\nallowance under Part 8 of the Economic Expansion\\nIncentives (Relief from Income Tax) Act 1967;\\n[Act 39 of 2023 wef 29/12/2023]\\n“claimant\\ncompany”\\nor\\n“transferor\\ncompany”\\nmeans\\na\\nSingapore company that claims or transfers, respectively,\\nany qualifying deduction under subsection (1) but does not\\ninclude a company approved as —\\n(a) a technology company under section 94(2) of the\\nEconomic Expansion Incentives (Relief from Income\\nTax) Act 1967 in force immediately before 28 April\\n2004;\\n(b) a venture company under section 97B(2) of the\\nEconomic Expansion Incentives (Relief from Income\\nTax) Act 1967 in force immediately before 28 April\\n2004;\\n(c) a\\ntechnology\\ninvestment\\ncompany\\nunder\\nsection\\n97C(2)\\nof\\nthe\\nEconomic\\nExpansion\\nIncentives (Relief from Income Tax) Act 1967 in\\nforce immediately before 28 April 2004;\\n(d) an\\noverseas\\ninvestment\\ncompany\\nunder\\nsection\\n97C(4)\\nof\\nthe\\nEconomic\\nExpansion\\nIncentives (Relief from Income Tax) Act 1967 in\\nforce immediately before 28 April 2004; or\\n(e) a start‑up company under section 97T(2) of the\\nEconomic Expansion Incentives (Relief from Income\\nTax) Act 1967 in force immediately before 19 April\\n2016;\\n“commercial loan” means any borrowing which entitles the\\ncreditor to any return which is of only —\\n(a) a fixed amount or at a fixed rate per cent of the\\namount of the borrowing; or\\n(b) a fixed rate per cent of the profits of the company;\\nIncome Tax Act 1947\\n2020 Ed.\\n704\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“equity holder”, in relation to a Singapore company, means any\\nholder of ordinary shares in the company or any creditor of\\nthe company in respect of any non‑commercial loan;\\n“non‑commercial loan” means any borrowing other than a\\ncommercial loan;\\n“ordinary share” means any share other than a treasury share or a\\nshare which carries only a right to any dividend which is of —\\n(a) a fixed amount or at a fixed rate per cent of the value\\nof the shares; or\\n(b) a fixed rate per cent of the profits of the company;\\n“residual assets”, in relation to a Singapore company, means net\\nassets of the company after distribution made to —\\n(a) creditors of the company in respect of commercial\\nloans; and\\n(b) holders of shares other than ordinary shares,\\nand where the company has no residual asset, a notional\\namount of $100 is deemed to be the residual assets of the\\ncompany;\\n“residual profits”, in relation to a Singapore company, means\\nprofits of the company after deducting any dividend which is\\nof —\\n(a) a fixed amount or at a fixed rate per cent of the value\\nof the shares of the company; or\\n(b) a fixed rate per cent of the profits of the company,\\nbut before deducting any return due to any non‑commercial\\nloan creditor which is not of —\\n(c) a fixed amount or at a fixed rate per cent of the\\namount of the borrowing; or\\n(d) a fixed rate per cent of the profits of the company,\\nand where the company has no residual profit, a notional\\namount of $100 is deemed to be the residual profits of the\\ncompany;\\nIncome Tax Act 1947\\n705\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“Singapore company” means any company incorporated in\\nSingapore.\\n[37C\\n[37/2014; 11/2016; 32/2019]\\nTransfer of qualifying deduction between spouses\\n37C.—(1) Subject to the provisions of this section, an individual\\nmay transfer any qualifying deduction for any year of assessment to a\\nspouse living with him or her who has claimed the qualifying\\ndeduction against her or his assessable income for the same year of\\nassessment.\\n(1A) No transfer may be made under subsection (1) of —\\n(a) any allowance made to the individual for the year of\\nassessment 2016 or a subsequent year of assessment;\\n(b) any loss incurred by the individual in the basis period for\\nthe year of assessment 2016 or a subsequent year of\\nassessment; or\\n(c) any donation made by the individual in the year\\nimmediately preceding the year of assessment 2016 or a\\nsubsequent year of assessment.\\n[37/2014]\\n(1B) No transfer of any qualifying deduction under subsection (1)\\nmay be made for the year of assessment 2018 or any subsequent year\\nof assessment.\\n[37/2014]\\n(2) Qualifying deductions are to be transferred to a claimant spouse\\nin the following order:\\n(a) any allowance specified in subsection (8)(a);\\n(b) any loss specified in subsection (8)(b);\\n(c) any donation specified in subsection (8)(c).\\n(3) For each type of qualifying deduction to be transferred in the\\norder specified in subsection (2), any allowance, loss or donation (as\\nthe case may be) arising to the transferor in an earlier year of\\nIncome Tax Act 1947\\n2020 Ed.\\n706\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nassessment is to be transferred first before any allowance, loss or\\ndonation arising to the transferor in a later year of assessment.\\n(4) The amount of qualifying deduction to be transferred by a\\ntransferor to a claimant spouse is the lower of —\\n(a) the amount of qualifying deduction available for transfer;\\nand\\n(b) the assessable income of the claimant spouse.\\n(5) Any individual transferring or claiming a qualifying deduction\\nunder this section must notify the Comptroller and make an election\\nto transfer or claim qualifying deductions (as the case may be) not\\nlater than 30 days from the date of the service of the notice of\\nassessment on the individual or his or her spouse, whichever is the\\nlater.\\n(6) An election made by an individual under subsection (5) is\\nirrevocable unless the Comptroller otherwise allows and must be\\naccompanied by such particulars as the Comptroller may require.\\n(7) Where the Comptroller discovers that any transfer or claim of\\nqualifying deduction which has been made from or to any individual\\nis or has become excessive, the Comptroller may make an assessment\\nupon that individual under section 74 on the amount which, in the\\nComptroller’s opinion, ought to have been charged to tax.\\n(8) For the purposes of this section, subject to sections 35 and 37,\\nqualifying deductions, in relation to an individual, for each year of\\nassessment, are —\\n(a) any allowance falling to be made under section 16, 17,\\n18B, 18C, 19, 19A, 19C, 19D or 20 that is in excess of the\\nindividual’s income from all sources chargeable with tax\\nfor that year of assessment;\\n(b) any loss incurred by the individual in any trade, business,\\nprofession or vocation which, if it had been a profit, would\\nhave been assessable under this Act, and which is not\\ndeducted\\nfor\\nthat\\nyear\\nof\\nassessment\\nbecause\\nof\\ninsufficiency of statutory income of the individual; and\\nIncome Tax Act 1947\\n707\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) any\\ndonation\\nmade\\nby\\nthe\\nindividual\\nunder\\nsection 37(3)(b), (c), (e) or (f) that is not deducted for\\nthat year of assessment because of insufficiency of\\nstatutory income of the individual.\\n[37D\\nCarry‑back of capital allowances and losses\\n37D.—(1) Subject to the provisions of this section, a person may\\ndeduct any qualifying deduction for any year of assessment against\\nthe person’s assessable income for the immediate preceding year of\\nassessment.\\n(1A) Subject to the other provisions of this section, a person may,\\ninstead of deducting any qualifying deduction for the year of\\nassessment 2020 or 2021 (called in this section the subject YA) in\\naccordance with subsection (1), deduct the qualifying deduction for\\nthe subject YA against the person’s assessable income for the 3 years\\nof assessment immediately preceding the subject YA.\\n[27/2021]\\n(1B) A\\nqualifying\\ndeduction\\nfor\\nthe\\nsubject\\nYA\\nunder\\nsubsection (1A) must be deducted in the following order:\\n(a) the qualifying deduction must first be made against the\\nperson’s assessable income for the third year of assessment\\nimmediately preceding the subject YA;\\n(b) any balance of the qualifying deduction after the deduction\\nin paragraph (a) must then be made against the person’s\\nassessable income for the second year of assessment\\nimmediately preceding the subject YA;\\n(c) any balance of the qualifying deduction after the deduction\\nin paragraph (b) must then be made against the person’s\\nassessable income for the year of assessment immediately\\npreceding the subject YA.\\n[27/2021]\\n(1C) Where a person is entitled to make 2 or more of the qualifying\\ndeductions set out in the first column of the following table against\\nthe person’s assessable income for a particular year of assessment,\\nthen the deductions must be made in the order set out in the second\\nIncome Tax Act 1947\\n2020 Ed.\\n708\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\ncolumn of the table, and each deduction must as far as possible be\\nmade against such assessable income (or any balance of such income\\nafter an earlier deduction) by the amount set out opposite that\\ndeduction in the third column of the table:\\nFirst\\ncolumn\\n.\\nSecond\\ncolumn\\n.\\nThird\\ncolumn\\nA qualifying deduction\\nunder subsection (1)\\n.\\nFirst\\n.\\nFull\\namount\\nof\\nthe\\nqualifying deduction\\nA qualifying deduction\\nfor\\nthe\\nyear\\nof\\nassessment 2020 under\\nsubsection (1A)\\nSecond\\nFull\\namount\\nof\\nthe\\nqualifying deduction or\\nits balance as described\\nin subsection (1B)\\nA qualifying deduction\\nfor\\nthe\\nyear\\nof\\nassessment 2021 under\\nsubsection (1A)\\nThird\\nFull\\namount\\nof\\nthe\\nqualifying deduction or\\nits balance as described\\nin subsection (1B)\\n[27/2021]\\n(1D) Any election made by a person under subsection (6) for the\\ndeduction\\nof\\nany\\nqualifying\\ndeduction\\nfor\\nthe\\nyear\\nof\\nassessment 2020 to be in accordance with subsection (1A) as in\\nforce immediately before 17 February 2021, is treated as an election\\nmade for the deduction of such qualifying deduction to be in\\naccordance with subsection (1A) as in force on that date.\\n[27/2021]\\n(2) Qualifying deductions are to be deducted in the following order:\\n(a) any allowance specified in subsection (9)(a);\\n(b) any loss specified in subsection (9)(b).\\n(3) The amount of qualifying deduction to be deducted for any year\\nof assessment is the lower of —\\n(a) the amount of qualifying deduction available for deduction\\nfor that year of assessment; and\\n(b) the assessable income of the person for the immediate\\npreceding year of assessment.\\nIncome Tax Act 1947\\n709\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(3A) Despite subsection (3), where a person makes an election\\nunder subsection (6) for the deduction of any qualifying deduction for\\nthe\\nyear\\nof\\nassessment\\n2020\\nor\\n2021\\nin\\naccordance\\nwith\\nsubsection (1A), the amount of the qualifying deduction to be\\ndeducted against the assessable income for any of the 3 years of\\nassessment immediately preceding it is the lower of —\\n(a) the amount of the qualifying deduction available for\\ndeduction for the second‑mentioned year of assessment\\nunder subsection (1B); and\\n(b) the amount of the person’s assessable income for the\\nsecond‑mentioned year of assessment or any balance of the\\nassessable income as determined in accordance with the\\ntable in subsection (1C) against which the deduction may\\nbe made.\\n[41/2020; 27/2021]\\n(4) Subject to the provisions of this section, section 37A (as it\\napplies in a case mentioned in section 37A(1)(b)) applies, with the\\nnecessary modifications, to the deduction of any qualifying deduction\\nby any company for any year of assessment against its assessable\\nincome for the immediate preceding year of assessment or (as the\\ncase may be) any of the 3 immediate preceding years of assessment,\\nas if —\\n(a) the qualifying deduction for the year of assessment is\\nqualifying deduction for an earlier year of assessment;\\n(b) the income for the immediate preceding year of assessment\\nor (as the case may be) any of the 3 immediate preceding\\nyears of assessment is income for the year of assessment\\nconcerned; and\\n(c) in section 37A(4) and (5) —\\n(i) a reference to unabsorbed allowances, losses or\\ndonations or UALD is a reference to qualifying\\ndeduction;\\n(ii) a reference to corresponding allowances, losses or\\ndonations is a reference to allowances or losses; and\\nIncome Tax Act 1947\\n2020 Ed.\\n710\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(iii) a reference to chargeable income of the company is a\\nreference to assessable income for the immediate\\npreceding year of assessment or (as the case may be)\\nany\\nof\\nthe\\n3\\nimmediate\\npreceding\\nyears\\nof\\nassessment of the company.\\n[41/2020]\\n(4AA) Subject to the provisions of this section, section 37A (as it\\napplies in a case mentioned in section 37A(1)(d)) applies, with the\\nnecessary modifications, to the deduction of any qualifying deduction\\nby a body of persons for the year of assessment 2023 or a subsequent\\nyear of assessment, against its assessable income for the immediate\\npreceding year of assessment, as if —\\n(a) the qualifying deduction for the year of assessment were a\\nqualifying deduction for an earlier year of assessment;\\n(b) the income for the immediate preceding year of assessment\\nwere income for the year of assessment concerned; and\\n(c) in section 37A(5) —\\n(i) a reference to UALD were a reference to the\\nqualifying deduction;\\n(ii) a reference to corresponding allowances, losses or\\ndonations were a reference to allowances or losses;\\nand\\n(iii) a reference to chargeable income of the body of\\npersons were a reference to assessable income for the\\nimmediate preceding year of assessment of the body\\nof persons.\\n[Act 33 of 2022 wef 04/11/2022]\\n(4A) For the purposes of applying section 37A to the provisions of\\nthis section under subsection (4) or (4AA), any reference to “rate of\\ntax” in section 37A is a reference to —\\n(a) the rate of tax under section 43(1)(a) applicable to the year\\nof assessment for which the assessable income is deducted\\nby any qualifying deduction;\\n(b) the concessionary rate of tax applicable to the year of\\nassessment\\nfor\\nwhich\\nany\\nallowance\\nspecified\\nin\\nIncome Tax Act 1947\\n711\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nsubsection (9)(a) is made to or any loss specified in\\nsubsection (9)(b) is incurred by a company or body of\\npersons; or\\n[Act 33 of 2022 wef 04/11/2022]\\n(c) the concessionary rate of tax applicable to the assessable\\nincome which is deducted by any qualifying deduction,\\nas the case may be.\\n[41/2020]\\n[Act 33 of 2022 wef 04/11/2022]\\n(5) The amount of qualifying deduction to be deducted for any year\\nof assessment must not exceed $100,000; and in the case of a\\ncompany or body of persons is determined by the formula\\nA þ B;\\nwhere A is any amount deducted against assessable income\\nsubject\\nto\\ntax\\nat\\nthe\\nrate\\nof\\ntax\\nspecified\\nin\\nsection 43(1)(a); and\\nB is any amount deducted against assessable income\\nsubject to tax at any concessionary rate of tax divided\\nby the adjustment factor for that concessionary rate of\\ntax.\\n[Act 33 of 2022 wef 04/11/2022]\\n(5A) [Deleted by Act 39 of 2017]\\n(6) Any person deducting any qualifying deduction for any year of\\nassessment against the person’s assessable income for the immediate\\npreceding year of assessment under subsection (1) or any of the\\n3 immediate preceding years of assessment under subsection (1A)\\nmust notify the Comptroller and make an election to make such\\ndeduction —\\n(a) in the case of an individual, not later than 30 days from the\\ndate of service of the notice of assessment on the\\nindividual; and\\nIncome Tax Act 1947\\n2020 Ed.\\n712\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) in the case of any other person, not later than the time of\\nlodgment of the person’s return of income for the year of\\nassessment,\\nor within such further time as the Comptroller may allow.\\n[39/2017; 41/2020]\\n(7) Any election made under subsection (6) is irrevocable and must\\nbe accompanied by such particulars as the Comptroller may require.\\n(8) Where the Comptroller discovers that any deduction made\\nunder subsection (1) against the assessable income of any person for\\nany year of assessment is or has become excessive, the Comptroller\\nmay make an assessment on the person on the amount which, in the\\nComptroller’s opinion, ought to have been charged to tax in that year\\nof assessment within 7 years (if that year of assessment is 2007 or a\\npreceding year of assessment) or 5 years (if that year of assessment is\\n2008 or a subsequent year of assessment) after the expiry of that year\\nof assessment.\\n[41/2020]\\n(8A) Despite subsection (8), where the Comptroller discovers that\\nany deduction made under subsection (1A) of any qualifying\\ndeduction for a subject YA against the assessable income of a\\nperson for the year of assessment 2017, 2018, 2019 or 2020\\n(whichever is applicable) has become excessive, the Comptroller\\nmay make an assessment on the person on the amount which, in the\\nComptroller’s opinion, ought to have been charged to tax in the year\\nof assessment 2017, 2018, 2019 or 2020, as the case may be —\\n(a) in the case of a qualifying deduction for the year of\\nassessment 2020 — on or before 31 December 2024; or\\n(b) in the case of a qualifying deduction for the year of\\nassessment 2021 — on or before 31 December 2025.\\n[27/2021]\\n(9) For the purposes of this section, subject to sections 35, 37 and\\n37A, qualifying deductions, in relation to any person, for each year of\\nassessment, are —\\n(a) any allowance falling to be made under section 16, 17,\\n18B, 18C, 19, 19A, 19B, 19C, 19D or 20 that is in excess of\\nthe person’s income from all sources chargeable to tax for\\nIncome Tax Act 1947\\n713\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthat year of assessment and is not transferred under\\nsection 37B or 37C; and\\n(b) any loss incurred by the person in any trade, business,\\nprofession or vocation which is not deducted for that year\\nof assessment because of insufficiency of statutory income\\nof the person and is not transferred under section 37B or\\n37C.\\n(10) Despite subsection (9), any loss deemed to be a loss incurred\\nfrom a trade or business for the purpose of section 97V of the\\nEconomic Expansion Incentives (Relief from Income Tax) Act 1967\\nin force immediately before 19 April 2016 is not deductible.\\n[11/2016]\\n(11) Despite\\nsubsection\\n(9),\\nany\\nallowance\\nspecified\\nin\\nsubsection (9)(a) made to a person for any year of assessment is\\nnot deductible against assessable income for the immediate preceding\\nyear of assessment or (as the case may be) any of the 3 immediate\\npreceding years of assessment if the person did not carry on that trade,\\nbusiness or profession in the basis period for the year of assessment in\\nwhich the allowance is claimed.\\n[39/2017; 41/2020]\\n(12) Despite\\nsubsection\\n(9),\\nany\\nallowance\\nspecified\\nin\\nsubsection (9)(a) made to or any loss specified in subsection (9)(b)\\nincurred by a company for any year of assessment is not deductible\\nagainst income for the immediate preceding year of assessment or (as\\nthe case may be) any of the 3 immediate preceding years of\\nassessment unless the Comptroller is satisfied that the shareholders of\\nthe company on the first day of the year in which the allowances arose\\nor in which the loss was incurred (as the case may be) were\\nsubstantially the same as the shareholders of the company on the last\\nday of the year of assessment in which the allowance is claimed.\\n[39/2017; 41/2020]\\n(13) For the purposes of subsection (12) —\\n(a) the shareholders of a company at any date are not deemed\\nto be substantially the same as the shareholders at any other\\ndate unless, on both those dates, not less than 50% of the\\ntotal number of issued shares of the company are held by or\\non behalf of the same persons;\\nIncome Tax Act 1947\\n2020 Ed.\\n714\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) shares in a company held by or on behalf of another\\ncompany are deemed to be held by the shareholders of the\\nlast mentioned company; and\\n(c) shares held by or on behalf of the trustee of the estate of a\\ndeceased shareholder or by or on behalf of the person\\nentitled to those shares as beneficiaries under the will or\\nany intestacy of a deceased shareholder are deemed to be\\nheld by that deceased shareholder.\\n(14) For the purpose of subsection (13)(a), where any part of a\\nshare of a shareholder is not fully paid up, there is to be disregarded a\\nproportion equal to\\nA\\nB ;\\nwhere A is the amount that has not been paid in respect of the\\nshare; and\\nB is the total amount payable in respect of the share.\\n(15) The Minister or such person as the Minister may appoint may,\\nwhere there is a substantial change in the shareholders of a company\\nand the Minister or appointed person is satisfied that such change is\\nnot for the purpose of deriving any tax benefit or obtaining any tax\\nadvantage,\\nexempt\\nthat\\ncompany\\nfrom\\nthe\\nprovisions\\nof\\nsubsection (12).\\n(16) Upon an exemption under subsection (15), any allowance\\nspecified in subsection (9)(a) made to or any loss specified in\\nsubsection (9)(b) incurred by a company may only be deducted\\nagainst the profits from the same trade or business of the company in\\nrespect of which the allowance was made or the loss was incurred.\\n(16A) This section does not entitle any qualifying deduction of a\\nlife insurer for any year of assessment to be deducted against any\\nincome of the insurer for any preceding year of assessment from a\\nparticipating fund that is apportioned to policyholders in accordance\\nwith regulations made under section 43(9) or 43C, unless the\\nqualifying deduction is —\\nIncome Tax Act 1947\\n715\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(a) a qualifying deduction in respect of any income from that\\nparticipating fund that is apportioned to policyholders in\\naccordance with those regulations; or\\n(b) a qualifying deduction in respect of any income of the\\ninsurer from another participating fund that is also\\napportioned to policyholders in accordance with those\\nregulations.\\n[27/2021]\\n(16B) This section also does not entitle any qualifying deduction of\\na life insurer for any year of assessment in respect of any income of\\nthe insurer from a participating fund that is apportioned to\\npolicyholders\\nin\\naccordance\\nwith\\nregulations\\nmade\\nunder\\nsection 43(9) or 43C, to be deducted against any income of the\\ninsurer for any preceding year of assessment, other than income from\\na participating fund that is apportioned to policyholders in\\naccordance with regulations made under section 43(9) or 43C.\\n[27/2021]\\n(17) In this section —\\n“adjustment factor”, in relation to a concessionary rate of tax,\\nmeans the factor ascertained in accordance with the formula\\nC\\nD ;\\nwhere C is the rate of tax specified in section 43(1)(a); and\\nD is the concessionary rate of tax;\\n“assessable income” means —\\n(a) in relation to a company, assessable income of the\\ncompany as determined under section 37 after\\ndeducting\\nany\\ndeduction\\nallowed\\nunder\\nsection 37F, investment allowance under Part 8 of\\nthe Economic Expansion Incentives (Relief from\\nIncome Tax) Act 1967 and any deductions claimed\\nunder section 37B;\\n[Act 39 of 2023 wef 29/12/2023]\\nIncome Tax Act 1947\\n2020 Ed.\\n716\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) in relation to an individual, assessable income of the\\nindividual as determined under section 37 after\\ndeducting\\nany\\ndeductions\\nclaimed\\nunder\\nsection 37C; and\\n(c) in relation to any other person, assessable income of\\nthe person as determined under section 37;\\n“concessionary rate of tax”, in relation to a body of persons,\\nmeans any rate of tax lower than the rate specified in\\nsection 43(1)(a) in accordance with regulations made under\\nsection 43H;\\n[Act 33 of 2022 wef 04/11/2022]\\n“concessionary rate of tax”, in relation to a company, means any\\nrate of tax lower than the rate specified in section 43(1)(a) in\\naccordance with —\\n(a) any order made under section 13(12);\\n(b) section 43A, 43C, 43D of this Act as in force before\\n29 December 2016, 43D, 43F of this Act as in force\\nbefore 29 December 2016, 43E, 43H of this Act as in\\nforce before 29 December 2016, 43F, 43G, 43K of\\nthis Act as in force before 29 December 2016, 43L of\\nthis Act as in force before 1 November 2006, 43H,\\n43I, 43J, 43K, 43S of this Act as in force before\\n29 December 2016, 43T of this Act as in force before\\n29 December 2016, 43U of this Act as in force before\\n26 October 2017, 43V of this Act as in force before\\n29 December 2016, 43L, 43M, 43N, 43O, 43P, 43Q,\\n43R, 43S, 43T, 43U, 43V, 43W or 43X, or the\\nregulations made under any of those sections, as the\\ncase may be; or\\n(c) section 21(9) or (13) or 23(1)(b) (as the case may be)\\nof the Economic Expansion Incentives (Relief from\\nIncome Tax) Act 1967.\\n[34/2016; 39/2017; 45/2018; 27/2021]\\n[Act 33 of 2022 wef 04/11/2022]\\nIncome Tax Act 1947\\n717\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(18) This section does not apply to —\\n(a) any company to which section 10D applies; or\\n(b) any person, in respect of qualifying deductions under\\nsubsection (9) relating to any income the tax on which is\\nremitted under the provisions of this Act for any year of\\nassessment unless —\\n(i) no such remission would be given to any income in\\nthe following year of assessment; or\\n(ii) the remission is to effect a deduction for any\\noutgoing or expense incurred by the person not\\notherwise deductible under section 14.\\n[37E\\nCarry‑back of capital allowances and losses between spouses\\n37E.—(1) Subject to the provisions of this section, an individual\\nmay transfer any qualifying deduction for any year of assessment to a\\nspouse living with him or her who has claimed any qualifying\\ndeduction under this section against her or his assessable income for\\nthe immediate preceding year of assessment.\\n(1AA) No transfer may be made under subsection (1) of —\\n(a) any allowance made to the individual for the year of\\nassessment 2016 or a subsequent year of assessment; or\\n(b) any loss incurred by the individual in the basis period for\\nthe year of assessment 2016 or a subsequent year of\\nassessment.\\n[37/2014]\\n(1A) [Deleted by Act 33 of 2022 wef 04/11/2022]\\n(1B) [Deleted by Act 33 of 2022 wef 04/11/2022]\\n(1C) [Deleted by Act 33 of 2022 wef 04/11/2022]\\n(2) Qualifying deductions are to be transferred to a claimant spouse\\nin the following order:\\n(a) any allowance specified in subsection (10)(a);\\n(b) any loss specified in subsection (10)(b).\\nIncome Tax Act 1947\\n2020 Ed.\\n718\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(3) The amount of qualifying deduction for any year of assessment\\nto be transferred by a transferor to a claimant spouse is the lower of —\\n(a) the amount of qualifying deduction available for transfer\\nfor that year of assessment; and\\n(b) the assessable income of the claimant spouse for the\\nimmediate preceding year of assessment.\\n(3A) [Deleted by Act 33 of 2022 wef 04/11/2022]\\n(4) The amount of qualifying deduction for any year of assessment\\nto be transferred by a transferor to a claimant spouse must not exceed\\nan amount equal to\\n$100; 000 \\u0001 A;\\nwhere A is any amount deducted by the transferor against his or\\nher assessable income for the immediate preceding year\\nof assessment under section 37D.\\n(4A) [Deleted by Act 33 of 2022 wef 04/11/2022]\\n(5) No transfer is allowed under subsection (1) in any year of\\nassessment if the transferor has assessable income for the immediate\\npreceding year of assessment but no claim for relief has been made\\nunder section 37D.\\n[Act 33 of 2022 wef 04/11/2022]\\n(6) No transfer is allowed under subsection (1) in any year of\\nassessment if the claimant spouse has assessable income for the year\\nof assessment but no transfer of any qualifying deduction from the\\ntransferor to the claimant spouse has been made under section 37C.\\n[Act 33 of 2022 wef 04/11/2022]\\n(7) Any individual transferring or claiming a qualifying deduction\\nunder this section must notify the Comptroller and make an election\\nto transfer or claim qualifying deductions (as the case may be) not\\nlater than 30 days from the date of the service of the notice of\\nassessment on the individual or his or her spouse, whichever is the\\nlater.\\nIncome Tax Act 1947\\n719\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(8) An election made by an individual under subsection (7) is\\nirrevocable and must be accompanied by such particulars as the\\nComptroller may require.\\n(9) Where the Comptroller discovers that any transfer of qualifying\\ndeduction under this section against the assessable income of a\\nclaimant spouse for any year of assessment is or has become\\nexcessive, the Comptroller may make an assessment on the claimant\\nspouse on the amount which, in the Comptroller’s opinion, ought to\\nhave been charged to tax in that year of assessment within 7 years (if\\nthat year of assessment is 2007 or a preceding year of assessment) or\\n5 years (if that year of assessment is 2008 or a subsequent year of\\nassessment) after the expiry of that year of assessment.\\n(9A) [Deleted by Act 33 of 2022 wef 04/11/2022]\\n(10) For the purposes of this section, subject to sections 35 and 37,\\nqualifying deductions, in relation to an individual, for each year of\\nassessment, are —\\n(a) any allowance falling to be made under section 16, 17,\\n18B, 18C, 19, 19A, 19C, 19D or 20 that is in excess of the\\nindividual’s income from all sources chargeable to tax for\\nthat year of assessment and is not deducted under\\nsection 37D or transferred under section 37C; and\\n(b) any loss incurred by the individual in any trade, business,\\nprofession or vocation which is not deducted for that year\\nof assessment because of insufficiency of statutory income\\nof the individual and is not deducted under section 37D or\\ntransferred under section 37C.\\n(11) Despite subsection (10), any loss deemed to be a loss incurred\\nfrom a trade or business for the purpose of section 97V of the\\nEconomic Expansion Incentives (Relief from Income Tax) Act 1967\\nin force immediately before 19 April 2016 is not transferable.\\n(12) Despite\\nsubsection\\n(10),\\nany\\nallowance\\nspecified\\nin\\nsubsection (10)(a) made to a transferor for any year of assessment\\nis not transferable if the transferor did not carry on that trade, business\\nIncome Tax Act 1947\\n2020 Ed.\\n720\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nor profession in the basis period for the immediate preceding year of\\nassessment.\\n[Act 33 of 2022 wef 04/11/2022]\\n(13) In this section, “assessable income”, in relation to an\\nindividual,\\nmeans\\nassessable\\nincome\\nof\\nthe\\nindividual\\nas\\ndetermined under section 37 after deducting any deductions\\nclaimed under sections 37C and 37D.\\n[37F\\nDeduction for incremental expenditure on research and\\ndevelopment\\n37F.—(1) Subject to this section, where any company incurs during\\nthe basis period for any year of assessment between the year of\\nassessment 2010 and the year of assessment 2016 (both years\\ninclusive) any incremental qualifying research and development\\nexpenditure, then there is to be allowed to that company, on due\\nclaim, a deduction against its assessable income computed in\\naccordance with this section.\\n(2) For the purposes of this section, the company must keep an\\naccount to be known as its research and development account.\\n(3) If —\\n(a) the company derives any income chargeable to tax under\\nthis Act during the basis period for any year of assessment\\nbetween the year of assessment 2009 and the year of\\nassessment 2010 (both years inclusive); and\\n(b) the amount standing to its research and development\\naccount on the last day of that basis period is less than\\n$300,000,\\nthen there must be credited to the research and development account\\non the last day of that basis period the lowest of —\\n(c) an amount computed in accordance with the specified\\nformula;\\n(d) the difference between $300,000 and the amount standing\\nto the research and development account on the last day of\\nthat basis period; and\\nIncome Tax Act 1947\\n721\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(e) $150,000.\\n(4) For the purposes of subsection (3), the specified formula\\nmeans —\\nA \\u0001 B \\u0001 C \\u0001 D \\u0001 E\\nð\\nÞ \\u0003 50%;\\nwhere A is the assessable income of the company for the year of\\nassessment;\\nB is the amount of deduction allowed against the assessable\\nincome of the company under subsection (5) for the year\\nof assessment (if applicable);\\nC is the amount of investment allowance deducted under\\nPart 8 of the Economic Expansion Incentives (Relief\\nfrom Income Tax) Act 1967 against the chargeable\\nincome of the company for the year of assessment, if any;\\nD is the amount of qualifying deduction transferred to the\\ncompany under section 37B (if any) and qualifying\\ndeduction allowed to the company under section 37D for\\nthe year of assessment, if any; and\\nE is the amount of income of the company not charged to\\ntax under section 43(6) or (6C) for the year of\\nassessment.\\n[45/2018]\\n(5) Where on the first day of the basis period for any year of\\nassessment between the year of assessment 2010 and the year of\\nassessment\\n2016\\n(both\\nyears\\ninclusive),\\nthe\\nresearch\\nand\\ndevelopment account of the company is in credit, and —\\n(a) the company has assessable income for that year of\\nassessment; and\\n(b) the company has incurred incremental qualifying research\\nand development expenditure during that basis period,\\nthen there is to be deducted from the assessable income of the\\ncompany for that year of assessment an amount equal to the lowest\\nof —\\nIncome Tax Act 1947\\n2020 Ed.\\n722\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) the incremental qualifying research and development\\nexpenditure incurred by that company during the basis\\nperiod;\\n(d) the amount of credit standing in the research and\\ndevelopment account as at the first day of the basis\\nperiod; and\\n(e) the assessable income of the company for that year of\\nassessment.\\n(6) As soon as an amount is deducted against the assessable income\\nof a company under subsection (5), the research and development\\naccount must be debited with such amount.\\n(7) Any deduction under this section must so far as possible be\\nmade against the part of its assessable income that is subject to the\\nhighest rate of tax, and any remaining balance of the deduction must\\nso far as possible be made against the part of its assessable income\\nthat is subject to the next highest rate of tax, and so on.\\n(8) For the purpose of this section, the Minister may make\\nregulations to give effect to or for carrying out the purposes of this\\nsection.\\n(9) A company to which a deduction has been given under this\\nsection must deliver to the Comptroller a copy of the audited account\\nmade up to any date specified by the Comptroller whenever called\\nupon to do so by written notice.\\n(9A) No deduction is allowed to a company under this section for\\nany year of assessment if a deduction for that expenditure has been\\nallowed under section 14D(2) for that year of assessment.\\n(10) In this section, unless the context otherwise requires —\\n“assessable income”, in relation to a company for any year of\\nassessment, means the remainder of its statutory income for\\nthe year of assessment after making the deductions under\\nsections 37 and 37A;\\n“base qualifying research and development expenditure” means\\nthe\\namount\\nof\\nqualifying\\nresearch\\nand\\ndevelopment\\nexpenditure incurred in the base year;\\nIncome Tax Act 1947\\n723\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“base year” —\\n(a) in relation to a company incorporated in the basis\\nperiod relating to the year of assessment 2009 or any\\nsubsequent year of assessment, means the basis\\nperiod in which the company is incorporated; or\\n(b) in relation to any other company, means the basis\\nperiod relating to the year of assessment 2008;\\n“incremental\\nqualifying\\nresearch\\nand\\ndevelopment\\nexpenditure”, in relation to the basis period for any year of\\nassessment, means the excess of qualifying research and\\ndevelopment expenditure incurred during the basis period\\nrelating to the year of assessment over the base qualifying\\nresearch and development expenditure;\\n“qualifying research and development expenditure” means any\\nresearch and development expenditure which ––\\n(a) qualifies for deduction under section 14C;\\n(b) is incurred in respect of research and development\\nactivities carried out in Singapore; and\\n(c) is not funded by any grant or subsidy from the\\nGovernment or a statutory board.\\n[37G\\nCash payout under Productivity and Innovation Credit\\nScheme\\n37G.—(1) Subject to this section, where any qualifying person has\\nincurred expenditure —\\n(a) during\\nthe\\nbasis\\nperiod\\nrelating\\nto\\nthe\\nyear\\nof\\nassessment 2011 or the year of assessment 2012; or\\n(b) during any quarter of a basis period relating to the year of\\nassessment 2013, the year of assessment 2014, the year of\\nassessment 2015, the year of assessment 2016, the year of\\nassessment 2017 or the year of assessment 2018,\\nfor which a deduction or an allowance is allowable or can be made to\\nthe qualifying person under any of the provisions of this Act\\nIncome Tax Act 1947\\n2020 Ed.\\n724\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nmentioned in subsection (2A) (as qualified by that subsection), the\\nqualifying person may, in lieu of one or more of the deductions or\\nallowances or any part thereof, and in respect of —\\n(c) the expenditure qualifying for it or them; or\\n(d) any part of such expenditure,\\n(called in this section the selected expenditure) the total amount of\\nwhich (together with the cash price of any PIC automation equipment\\nor intellectual property rights in respect of which an election under\\nsubsection (4A) is made at the same time) is at least $400, make an\\nirrevocable written election for a cash payout computed in\\naccordance with subsection (3) or (4), as the case may be.\\n[37/2014]\\n(2) The irrevocable written election under subsection (1) must —\\n(a) in respect of the year of assessment 2011 or the year of\\nassessment 2012, be made to the Comptroller by the\\nqualifying person at any time after the end of the basis\\nperiod for that year of assessment but before the expiry of\\nthe time the qualifying person must deliver a return of the\\nqualifying person’s income for that year of assessment or\\nwithin such extended time as the Comptroller may allow;\\n(b) in respect of the year of assessment 2013, the year of\\nassessment 2014, the year of assessment 2015, the year of\\nassessment 2016, the year of assessment 2017 or the year\\nof assessment 2018, be made to the Comptroller by the\\nqualifying person at any time after the end of the quarter of\\nthe basis period for that year of assessment but before the\\nexpiry of the time the qualifying person must deliver a\\nreturn of the qualifying person’s income for that year of\\nassessment\\nor\\nwithin\\nsuch\\nextended\\ntime\\nas\\nthe\\nComptroller may allow;\\n(ba) if made on or after 1 August 2016, be made using the\\nelectronic service, except that the Comptroller may in any\\nparticular case or class of cases permit the election to be\\nmade in any other manner; and\\nIncome Tax Act 1947\\n725\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) be accompanied by such information and supporting\\ndocument to be given in such form and manner as the\\nComptroller may specify.\\n[37/2014; 15/2016]\\n(2A) For the purposes of subsection (1), the provisions of this Act\\nare —\\n(a) section 14 in respect of —\\n(i) expenditure that falls within the definition of\\n“qualifying\\ntraining\\nexpenditure”\\nunder\\nsection 14O for which a deduction may be given\\nunder that section;\\n(ii) expenditure that falls within the definition of\\n“qualifying design expenditure” under section 14P\\nfor which a deduction may be given under that\\nsection;\\n(iii) expenditure on the leasing of a PIC automation\\nequipment under a qualifying lease for which a\\ndeduction may be given under section 14Q; or\\n(iv) expenditure on the licensing from another person of\\nany qualifying intellectual property rights for which\\na deduction may be given under section 14T;\\n(b) section 14A;\\n(c) section 14C in respect of expenditure that falls within the\\ndefinition of “qualifying expenditure” under section 14D;\\n(d) section 14D;\\n(e) section 14O;\\n(f) section 14P;\\n(g) section 14Q;\\n(ga) section 14T;\\n(h) section 19 or 19A(1), (1B), (2), (2A), (2B), (2BAA) or\\n(10), in respect of expenditure incurred on the provision of\\nany PIC automation equipment (including any expenditure\\nthat is treated as expenditure incurred on the provision of\\nIncome Tax Act 1947\\n2020 Ed.\\n726\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nPIC automation equipment under section 19A(16A)), other\\nthan any equipment acquired —\\n(i) under a hire‑purchase agreement signed before the\\nbasis period for the year of assessment 2012 with a\\npayment period that spans over 2 or more basis\\nperiods; or\\n(ii) under a hire‑purchase agreement signed in the basis\\nperiod for the year of assessment 2012, the year of\\nassessment 2013, the year of assessment 2014, the\\nyear\\nof\\nassessment\\n2015,\\nthe\\nyear\\nof\\nassessment 2016, the year of assessment 2017 or\\nthe year of assessment 2018;\\n(i) section 19B other than —\\n(i) a writing‑down allowance made in a case where the\\nrequirement under section 19B(2A) is waived;\\n(ii) a\\nwriting‑down\\nallowance\\nmade\\nunder\\nsection 19B(2C);\\n(iii) a writing‑down allowance made in respect of any\\nintellectual property rights acquired under an IPR\\ninstalment agreement signed before the basis period\\nfor the year of assessment 2012 with a payment\\nperiod that spans over 2 or more basis periods; or\\n(iv) a writing‑down allowance made in respect of any\\nintellectual property rights acquired under an IPR\\ninstalment agreement signed in the basis period for\\nthe\\nyear\\nof\\nassessment\\n2012,\\nthe\\nyear\\nof\\nassessment 2013, the year of assessment 2014, the\\nyear\\nof\\nassessment\\n2015,\\nthe\\nyear\\nof\\nassessment 2016, the year of assessment 2017 or\\nthe year of assessment 2018; and\\n(j) section 37J.\\n[37/2014]\\n(3) For\\nthe\\nyear\\nof\\nassessment\\n2011\\nand\\nthe\\nyear\\nof\\nassessment 2012, the amount of cash payout is calculated in\\naccordance with the formula\\nIncome Tax Act 1947\\n727\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nA \\u0003 30%;\\nwhere A is —\\n(a) for the year of assessment 2011, the lower of the following:\\n(i) the amount of the selected expenditure;\\n(ii) $200,000; and\\n(b) for the year of assessment 2012, the lower of the following:\\n(i) the amount of the selected expenditure;\\n(ii) the balance after deducting from $200,000 the lower\\nof the amounts specified in paragraph (a)(i) and (ii).\\n(3A) In subsection (3), the amount under paragraph (a)(ii) is\\nsubstituted with “$100,000” if the person does not carry on any trade,\\nprofession or business during the basis period for the year of\\nassessment 2012, and the balance under paragraph (b)(ii) is\\nsubstituted with “$100,000” if the person does not carry on any\\ntrade, profession or business during the basis period for the year of\\nassessment 2011.\\n(4) For the year of assessment 2013, the year of assessment 2014,\\nthe year of assessment 2015 and the year of assessment 2016, the\\namount of cash payout for each year of assessment is\\nA \\u0003 60%;\\nwhere A is the lower of the following:\\n(a) the aggregate amount of selected expenditure for all\\nquarters of the basis period relating to that year of\\nassessment;\\n(b) $100,000.\\n[37/2014; 15/2016]\\n(4AA) For the year of assessment 2017, the amount of cash payout\\nis —\\n(a) if the last day of the basis period for that year of assessment\\nis before 1 August 2016, the amount computed in\\nIncome Tax Act 1947\\n2020 Ed.\\n728\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\naccordance with subsection (4) (as applied with the\\nnecessary modifications); or\\n(b) if the last day of the basis period for that year of assessment\\nis on or after 1 August 2016\\nA \\u0003 60%\\nð\\nÞ þ B \\u0003 40%\\nð\\nÞ;\\nwhere A is the lower of the following:\\n(i) the aggregate amount of selected expenditure for one\\nor more quarters (or part of such quarter) between\\nthe first day of the basis period for that year of\\nassessment and 31 July 2016 (both dates inclusive);\\n(ii) $100,000; and\\nB is the lower of the following:\\n(i) the aggregate amount of selected expenditure for one\\nor more quarters (or part of such quarter) between\\n1 August 2016 and the last day of the basis period for\\nthat year of assessment (both dates inclusive);\\n(ii) the balance after deducting the lower of the amounts\\nspecified in paragraphs (i) and (ii) of the definition\\nof A from $100,000.\\n[15/2016]\\n(4AB) For the year of assessment 2018, the amount of cash payout\\nis —\\n(a) if the first day of the basis period for that year of\\nassessment\\nis\\nbefore\\n1\\nAugust\\n2016,\\nthe\\namount\\ncomputed in accordance with subsection (4AA)(b) (as\\napplied with the necessary modifications); or\\n(b) if the first day of the basis period for that year of\\nassessment is on or after 1 August 2016\\nB \\u0003 40%;\\nwhere B is the lower of the following:\\nIncome Tax Act 1947\\n729\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(i) the aggregate amount of selected expenditure for all\\nquarters of the basis period for that year of\\nassessment;\\n(ii) $100,000.\\n[15/2016]\\n(4A) Where —\\n(a) a qualifying person has, in the basis period relating to the\\nyear of assessment 2012, the year of assessment 2013, the\\nyear of assessment 2014, the year of assessment 2015, the\\nyear of assessment 2016, the year of assessment 2017 or\\nthe year of assessment 2018, signed a hire‑purchase\\nagreement to acquire any PIC automation equipment for\\nthe purposes of a trade, profession or business carried on\\nby the qualifying person, or an IPR instalment agreement\\nto acquire any intellectual property rights for use in the\\nqualifying person’s trade or business;\\n(b) allowances may be made to the qualifying person under\\nsection 19, 19A(1), (2), (2A), (2B) or (2BAA) or 19B for\\ncapital expenditure to be incurred under the agreement;\\nand\\n(c) the cash price for the equipment or intellectual property\\nrights (together with any selected expenditure referred to in\\nsubsection (1) in respect of which an election is made\\nunder that subsection at the same time) is at least $400,\\nthe qualifying person may, in lieu of all those allowances, make an\\nirrevocable written election for a cash payout.\\n[37/2014]\\n(4B) The irrevocable written election under subsection (4A)\\nmust —\\n(a) if\\nthe\\nhire‑purchase\\nagreement\\nor\\nIPR\\ninstalment\\nagreement is signed in the basis period for the year of\\nassessment 2012, be made to the Comptroller by the\\nqualifying person at any time after the end of the basis\\nperiod but before the expiry of the time the qualifying\\nIncome Tax Act 1947\\n2020 Ed.\\n730\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nperson must deliver a return of the qualifying person’s\\nincome for that year of assessment or within such extended\\ntime as the Comptroller may allow;\\n(b) if\\nthe\\nhire‑purchase\\nagreement\\nor\\nIPR\\ninstalment\\nagreement is signed in any quarter of the basis period for\\nthe year of assessment 2013, the year of assessment 2014,\\nthe year of assessment 2015, the year of assessment 2016,\\nthe\\nyear\\nof\\nassessment\\n2017\\nor\\nthe\\nyear\\nof\\nassessment 2018, be made to the Comptroller by the\\nqualifying person at any time after the end of that quarter\\nbut before the expiry of the time the qualifying person must\\ndeliver a return of the qualifying person’s income for that\\nyear of assessment or within such extended time as the\\nComptroller may allow;\\n(ba) if made on or after 1 August 2016, be made using the\\nelectronic service, except that the Comptroller may in any\\nparticular case or class of cases permit the election to be\\nmade in any other manner; and\\n(c) be accompanied by such information and supporting\\ndocuments to be given in such form and manner as the\\nComptroller may specify.\\n[37/2014; 15/2016]\\n(4C) Where an election under subsection (4A) is made, then\\nsubsections (3), (4), (4AA) and (4AB) apply with the following\\nmodifications:\\n(a) a reference to the amount of selected expenditure or the\\naggregate amount of selected expenditure for a year of\\nassessment, being the year of assessment relating to the\\nbasis period in which the agreement is signed, is a\\nreference to the aggregate of —\\n(i) the cash price of the PIC automation equipment or\\nintellectual property rights; and\\n(ii) the expenditure referred to in subsection (1) incurred\\nin that basis period or all the quarters of that basis\\nperiod (as the case may be), for which a deduction or\\nan allowance is allowable or may be made to the\\nIncome Tax Act 1947\\n731\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nqualifying person, and in respect of which an\\nelection has been made under that subsection;\\n(b) a reference to the amount of selected expenditure or the\\naggregate amount of selected expenditure for any year of\\nassessment excludes the amount of any capital expenditure\\nmade by the qualifying person under that agreement in the\\nbasis period for that year of assessment.\\n[15/2016]\\n(4D) The maximum amount of cash payout for each equipment that\\nis the subject of a hire‑purchase agreement, or any intellectual\\nproperty rights that are the subject of an IPR instalment agreement, is\\nthe amount computed under subsection (3), (4), (4AA) or (4AB) (as\\nmodified by subsection (4C)) (as the case may be) that is attributable\\nto —\\n(a) the cash price of the equipment or rights; or\\n(b) such part of the price of the equipment or rights that the\\nqualifying person elects to be used for computing the cash\\npayout for the year of assessment if the selected\\nexpenditure\\nor\\nthe\\naggregate\\namount\\nof\\nselected\\nexpenditure for the cash payout is —\\n(i) the amount mentioned in subsection (3)(a)(ii) in the\\ncase\\nof\\nthe\\nyear\\nof\\nassessment\\n2011,\\nor\\nsubsection (3)(b)(ii) in the case of the year of\\nassessment 2012;\\n(ii) $100,000 in the case of the year of assessment 2013,\\n2014, 2015 or 2016;\\n(iii) $100,000 —\\n(A) in the case of the year of assessment 2017,\\nwhere the last day of the basis period for that\\nyear of assessment is before 1 August 2016; or\\n(B) in the case of the year of assessment 2018,\\nwhere the first day of the basis period for that\\nyear of assessment is on or after 1 August\\n2016; or\\nIncome Tax Act 1947\\n2020 Ed.\\n732\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(iv) the amount mentioned in paragraph (ii) of the\\ndefinition of A or paragraph (ii) of the definition of\\nB in subsection (4AA)(b) —\\n(A) in the case of the year of assessment 2017,\\nwhere the last day of the basis period for that\\nyear of assessment is on or after 1 August\\n2016; or\\n(B) in the case of the year of assessment 2018,\\nwhere the first day of the basis period for that\\nyear of assessment is before 1 August 2016.\\n[15/2016]\\n(4DA) Sub‑paragraphs (i) to (iv) of subsection (4D)(b) have effect\\nfor all cash payouts for the respective years of assessment mentioned\\nin those sub‑paragraphs.\\n[15/2016]\\n(4DB) In subsections (4C)(a)(i) and (4D)(a), a reference to the cash\\nprice of intellectual property rights is, in a case where the Comptroller\\nhas treated the open‑market price mentioned in section 19B(10I) as\\nthe amount mentioned in section 19B(1C)(a)(i) in relation to those\\nrights, a reference to the open‑market price.\\n[34/2016]\\n(4E) The cash payout under subsection (4A) for each equipment\\nthat is the subject of a hire‑purchase agreement, or any intellectual\\nproperty rights that are the subject of an IPR instalment agreement,\\nmust be made to the qualifying person in the following manner:\\n(a) the qualifying person may claim an amount of cash payout\\nfor the year of assessment relating to a basis period or a\\nquarter thereof during which the qualifying person\\nincurred capital expenditure under the agreement for that\\nequipment or those rights;\\n(b) the amount of cash payout that may be made to the\\nqualifying person is the lesser of —\\n(i) A × B,\\nwhere A is the amount of such capital expenditure;\\nand\\nIncome Tax Act 1947\\n733\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nB is the percentage in the second column of\\nthe following table set out opposite the\\nperiod in which the agreement is signed in\\nthe first column of the table:\\n.\\nIf the agreement is signed\\nPercentage\\n.\\nIn the basis period for the year\\nof assessment 2012\\n30%\\nIn the basis period for the year\\nof assessment 2013, 2014,\\n2015 or 2016\\n60%\\nOn or before 31 July 2016 in\\nthe basis period for the year of\\nassessment 2017 or 2018\\n60%\\nOn or after 1 August 2016 in\\nthe basis period for the year of\\nassessment 2017 or 2018\\n40%; or\\n(ii) the maximum amount referred to in subsection (4D)\\nafter deducting any cash payout made earlier for that\\nequipment or those rights under this subsection;\\n(c) no cash payout may be made for that equipment or those\\nrights if the amount referred to in paragraph (b)(ii) is zero;\\n(d) each claim must be made in such form and be accompanied\\nby such information and supporting document relating to\\nthe capital expenditure as the Comptroller may specify;\\n(e) to avoid doubt, a claim may be made for any year of\\nassessment after the year of assessment 2018.\\n[37/2014; 15/2016]\\n(5) For the purposes of subsections (1), (3), (4), (4AA), (4AB) and\\n(4A), an individual carrying on one or more trades, professions or\\nbusinesses through 2 or more firms (excluding partnerships) must not\\nbe granted a cash payout that exceeds the amount computed in\\nIncome Tax Act 1947\\n2020 Ed.\\n734\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\naccordance with subsection (3), (4), (4AA) or (4AB), as the case may\\nbe.\\n[15/2016]\\n(6) [Deleted by Act 19 of 2013]\\n(7) Where a qualifying person has elected for a cash payout in lieu\\nof a deduction or an allowance under section 14A, 19, 19A(1), (1B),\\n(2), (2A), (2B), (2BAA) or (10) or 19B, the election so made is treated\\nas having been made on the full amount of the expenditure qualifying\\nfor such deduction or allowance and incurred on —\\n(a) the grant or registration of each qualifying intellectual\\nproperty right in each country;\\n(b) the provision of each PIC automation equipment; or\\n(c) the acquisition of each intellectual property right,\\nas the case may be, to which the election relates, net of any grant or\\nsubsidy from the Government or a statutory board.\\n[37/2014]\\n(8) Despite subsections (1), (4A) and (7), where a qualifying person\\nhas incurred capital expenditure —\\n(a) on the provision of any PIC automation equipment for the\\npurpose of leasing such equipment; or\\n(b) in acquiring any intellectual property rights in any software\\nfor the purpose of licensing all or any part of those rights,\\nthe qualifying person is not allowed to exercise an election under\\nsubsection (1) or (4A) in respect of such expenditure.\\n(8A) Where a qualifying person incurs capital expenditure during\\nthe basis period for the year of assessment 2016 or a subsequent year\\nof assessment on the provision of any PIC automation equipment, the\\nqualifying person is only allowed to make an election under\\nsubsection (1) or (4A) in respect of that expenditure if the\\nqualifying person proves to the Comptroller’s satisfaction that the\\nPIC automation equipment is in use for the purposes of the qualifying\\nperson’s trade, profession or business.\\n[37/2014]\\nIncome Tax Act 1947\\n735\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(8B) The Comptroller may, subject to such conditions as the\\nComptroller may impose, waive the application of subsection (8A) if\\nthe Comptroller is satisfied that there is a reasonable cause for the PIC\\nautomation equipment not being in use for the purposes of the\\nperson’s trade, profession or business.\\n[37/2014]\\n(9) No part of the amount of any expenditure referred to in\\nsubsection (7) for which an election is made or treated as having been\\nmade under subsection (1) or (4A) is eligible for a deduction or an\\nallowance against the income of the qualifying person for any year of\\nassessment.\\n(9A) [Deleted by Act 29 of 2012]\\n(10) Where a cash payout has been made under this section in lieu\\nof —\\n(a) a deduction under section 14A and the intellectual property\\nrights or the application for the registration or grant of the\\nrights for which the deduction is made is sold, transferred\\nor assigned within one year from the date of filing of the\\napplication for the registration or grant of such rights; or\\n(b) an allowance under section 19 or 19A(1), (1B), (2), (2A),\\n(2B), (2BAA) or (10) and the PIC automation equipment\\nfor which the allowance is made is sold, transferred,\\nassigned or leased out within one year from the provision\\nof such PIC automation equipment,\\nthe following provisions apply:\\n(c) the qualifying person must give written notice to the\\nComptroller of such sale, transfer, assignment or lease in\\nthe manner specified by the Comptroller within 30 days\\nfrom the date of such sale, transfer, assignment or lease;\\n(d) the cash payout in respect of the intellectual property\\nrights, the application for the registration or grant of such\\nrights, or the PIC automation equipment is recoverable by\\nthe Comptroller from the qualifying person as a debt due to\\nthe Government;\\nIncome Tax Act 1947\\n2020 Ed.\\n736\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(e) in the case of a PIC automation equipment that is the\\nsubject of a hire‑purchase agreement, no cash payout may\\nbe made to the qualifying person for any capital\\nexpenditure under the agreement incurred in the basis\\nperiod or the quarter thereof (as the case may be) in which\\nthe sale, transfer, assignment or lease occurs and for any\\nsubsequent basis period or quarter thereof.\\n[37/2014]\\n(10A) The Minister, or such person the Minister may appoint, may\\nwaive the application of subsection (10) in respect of an event\\nreferred to in paragraph (b) of that subsection in the same\\ncircumstances as those referred to in section 19A(2HA).\\n(11) Where a cash payout has been made to a qualifying person\\npursuant to an election under subsection (1) in lieu of a writing‑down\\nallowance under section 19B, and any of the following events occurs\\nwithin 5 years from the acquisition of the intellectual property rights:\\n(a) the intellectual property rights for which the writing‑down\\nallowance is made come to an end without being\\nsubsequently revived;\\n(b) all or any part of the intellectual property rights for which\\nthe writing‑down allowance is made are sold, transferred\\nor assigned;\\n(c) the qualifying person permanently ceases to carry on the\\ntrade or business for which the intellectual property rights\\nare used;\\n(d) all or any part of the intellectual property rights in any\\nsoftware for which the writing‑down allowance is granted\\nare licensed to another,\\nthen the following provisions apply:\\n(e) the qualifying person must give written notice to the\\nComptroller of such event in the manner specified by the\\nComptroller within 30 days from the date of such event;\\n(f) an amount computed in accordance with the following\\nformula is recoverable by the Comptroller from the\\nqualifying person as a debt due to the Government:\\nIncome Tax Act 1947\\n737\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nAmount of cash payout \\u0003\\n5 \\u0001 Number of complete years\\nthe intellectual property rights were\\nheld by the qualifying person\\n0\\n@\\n1\\nA\\n5\\n(11A) Where —\\n(a) an election has been made under subsection (4A) for a cash\\npayout in lieu of a writing‑down allowance under\\nsection 19B; and\\n(b) any of the events referred to in subsection (11)(a) to (d)\\noccurs within 5 years from the acquisition of the\\nintellectual property rights,\\nthen the following provisions apply:\\n(c) the qualifying person must give written notice to the\\nComptroller of such event in the manner specified by the\\nComptroller within 30 days from the date of such event;\\n(d) where any amount of the cash payout has been made to the\\nqualifying person before the occurrence of the event, an\\namount computed in accordance with the formula in\\nsubsection (11)(f) is recoverable by the Comptroller from\\nthe qualifying person as a debt due to the Government;\\n(e) for the purposes of paragraph (d), the reference in the\\nformula to the amount of cash payout is a reference to the\\ntotal amount of the cash payout that has been made to the\\nqualifying person before the occurrence of the event;\\n(f) the amount of the cash payout that may be made to the\\nqualifying person for the basis period or a quarter thereof\\n(as the case may be) in which the event occurs and\\nthereafter\\nis,\\ninstead\\nof\\nthe\\namount\\ncomputed\\nin\\naccordance\\nwith\\nsubsection\\n(4E)(b),\\nan\\namount\\ncomputed in accordance with the formula\\nIncome Tax Act 1947\\n2020 Ed.\\n738\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nCash payout\\ncomputed in\\naccordance with\\nsubsection ð4EÞðbÞ\\n\\u0003\\nNumber of complete years the\\nintellectual property rights were\\nheld by the qualifying person\\n5\\n(12) Where any tax, duty, interest or penalty is due under this Act,\\nthe Goods and Services Tax Act 1993, the Property Tax Act 1960 or\\nthe Stamp Duties Act 1929 by the qualifying person to the\\nComptroller of Income Tax, the Comptroller of Goods and\\nServices\\nTax,\\nthe\\nComptroller\\nof\\nProperty\\nTax\\nor\\nthe\\nCommissioner of Stamp Duties, the amount of cash payout made\\nby the Comptroller to the qualifying person is reduced by the amount\\nso due.\\n(13) Any amount reduced under subsection (12) is deemed to be\\ntax, duty, interest or penalty paid by the qualifying person under the\\nrelevant Act and must (if it is due under an Act other than this Act) be\\npaid by the Comptroller to the Comptroller of Goods and Services\\nTax, the Comptroller of Property Tax or the Commissioner of Stamp\\nDuties, as the case may be.\\n(14) If an election has been made under subsection (1) or (4A) in\\nrespect of an amount of expenditure qualifying for a deduction or an\\nallowance under section 14, 14A(1), 14C, 14D(1), 19, 19A(1), (1B),\\n(2) or (10) or 19B(1) or (1AA), the amount of expenditure qualifying\\nfor the deduction or allowance under that provision is, despite\\nanything in that provision, reduced by the firstmentioned amount.\\n[37/2014; 34/2016]\\n(14A) If an election has been made under subsection (1) or (4A) in\\nrespect of an amount of expenditure qualifying for a deduction or\\nallowance under section 14A(1A), (1B) or (1BA), 14D(2), 14O, 14P,\\n14Q, 14T, 19A(2A), (2B) or (2BAA) or 19B(1A), (1B) or (1BAA),\\nthe amount of expenditure qualifying for the deduction or allowance\\nunder that provision must, despite anything in that provision, not\\nexceed the difference between —\\nIncome Tax Act 1947\\n739\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(a) the maximum amount of expenditure in respect of which\\nthe deduction or allowance may be allowed or made under\\nthat provision for the year of assessment in question; and\\n(b) the firstmentioned amount.\\n[37/2014]\\n(15) Where a qualifying person has received a cash payout under\\nsubsection (1) or (4A) —\\n(a) in respect of any expenditure that is subsequently found not\\nto qualify for the allowance or deduction under the relevant\\nprovision of this Act mentioned in subsection (2A) or (4A);\\n(b) without having satisfied all of the requirements in this\\nsection (excluding the requirements in subsections (10)\\nand (11)) for the payout; or\\n(c) that is in excess of that which may be given to it under this\\nsection,\\nthe amount of the cash payout or the excess amount of the cash payout\\n(as the case may be) is recoverable by the Comptroller from the\\nqualifying person as a debt due to the Government.\\n(16) The amount to be repaid under subsection (10), (11), (11A) or\\n(15) is payable at the place stated in the notice served by the\\nComptroller on the qualifying person within 30 days after the service\\nof the notice.\\n(17) The Comptroller may, in his or her discretion and subject to\\nsuch terms and conditions as the Comptroller may impose, extend the\\ntime limit within which payment under subsection (16) is to be made.\\n(18) Sections 86(1) to (6), 87(1) and (2), 89, 90 and 91 apply to the\\ncollection and recovery by the Comptroller of the amounts\\nrecoverable under subsections (10), (11), (11A) and (15) as they\\napply to the collection and recovery of tax.\\n(19) Unless disallowed by the Comptroller under subsection (20),\\nwhere\\nthe\\nComptroller\\nhas\\nrecovered\\nany\\namount\\nunder\\nsubsection (15)(b) or (c), the amount of the relevant expenditure\\nmentioned in subsection (14) or (14A) is to be increased by an\\namount determined in accordance with the formula\\nIncome Tax Act 1947\\n2020 Ed.\\n740\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nA\\nB ;\\nwhere A\\nis the amount recovered by the Comptroller under\\nsubsection (15)(b) or (c); and\\nB\\nis the percentage in the second column of the following\\ntable if the amount recovered is for a cash payout for —\\n(a) expenditure incurred;\\n(b) equipment\\nacquired\\nunder\\na\\nhire‑purchase\\nagreement signed; or\\n(c) intellectual property rights acquired under an IPR\\ninstalment agreement signed,\\nin the period set out opposite in the first column of the\\ntable:\\nWhen the expenditure was incurred, or\\nthe hire‑purchase agreement or IPR\\ninstalment agreement was signed\\nPercentage\\nIn the basis period for the year of\\nassessment 2011 or 2012\\n30%\\nIn the basis period for the year of\\nassessment 2013, 2014, 2015 or 2016\\n60%\\nOn or before 31 July 2016 in the basis\\nperiod for the year of assessment 2017\\nor 2018\\n60%\\nOn or after 1 August 2016 in the basis\\nperiod for the year of assessment 2017\\nor 2018\\n40%.\\n[15/2016]\\n(20) The\\nComptroller\\nmay\\ndisallow\\nthe\\nincrease\\nunder\\nsubsection (19) if the Comptroller is satisfied that the qualifying\\nperson has —\\nIncome Tax Act 1947\\n741\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(a) provided\\nthe\\nComptroller\\nwith\\nany\\ninformation\\nor\\ndocument,\\nin\\nconnection\\nwith\\nan\\nelection\\nunder\\nsubsection (1) or (4A), which is false or misleading in a\\nmaterial particular;\\n(b) omitted any material particular from any information or\\ndocument given in connection with an election under\\nsubsection (1) or (4A);\\n(c) prepared or maintained or authorised the preparation or\\nmaintenance of any false books of account or other records\\nor falsified or authorised the falsification of any books of\\naccount or records in connection with an election under\\nsubsection (1) or (4A); or\\n(d) made use of any fraud, art or contrivance whatsoever or\\nauthorised the use of such fraud, art or contrivance, in\\nconnection with an election under subsection (1) or (4A).\\n(21) In this section —\\n“cash price” —\\n(a) in relation to any PIC automation equipment that is\\nthe subject of a hire‑purchase agreement, means the\\nprice (including capital expenditure incurred on\\nalterations to an existing building incidental to the\\ninstallation of the equipment but excluding any\\nfinance charges) at which the qualifying person in\\nquestion might have purchased the equipment for\\ncash at the time of the signing of the agreement; or\\n(b) in relation to any intellectual property rights that are\\nthe subject of an IPR instalment agreement, means\\nthe price at which the qualifying person in question\\nmight have purchased those rights for cash at the time\\nof the signing of the agreement;\\n“central hirer” and “central hiring arrangement” have the\\nmeanings given by section 14O(6);\\nIncome Tax Act 1947\\n2020 Ed.\\n742\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“IPR instalment agreement” means an agreement for the\\npurchase of intellectual property rights the payment for\\nwhich is to be made by instalments;\\n“local employee”, in relation to a qualifying person who elects\\nfor a cash payout under subsection (1) or (4A), means any\\nSingapore citizen or Singapore permanent resident, but\\nexcludes —\\n(a) a shareholder who is also a director of the qualifying\\nperson if the qualifying person is a company within\\nthe meaning of section 4 of the Companies Act 1967;\\nand\\n(b) a partner under a contract for service of the qualifying\\nperson if the qualifying person is a partnership;\\n“local person”, in relation to a qualifying person who elects for a\\ncash payout under subsection (1) or (4A), means any citizen\\nor permanent resident of Singapore, but excludes —\\n(a) a shareholder who is also a director of the qualifying\\nperson if the qualifying person is a company within\\nthe meaning of section 4 of the Companies Act 1967;\\nand\\n(b) a partner under a contract for service of the qualifying\\nperson if the qualifying person is a partnership;\\n“PIC automation equipment” has the meaning given by\\nsection 19A;\\n“qualifying person” means any company or firm (including a\\npartnership) that —\\n(a) carries\\non a\\ntrade, profession or\\nbusiness in\\nSingapore; and\\n(b) employs and makes contributions to the Central\\nProvident Fund in respect of not less than 3 local\\nemployees based on the payroll for —\\n(i) in the case of the basis period for the year of\\nassessment\\n2011\\nor\\nthe\\nyear\\nof\\nassessment 2012, the last month (or such\\nIncome Tax Act 1947\\n743\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nother month as the Comptroller may determine)\\nof the basis period;\\n(ii) in the case of a quarter of the basis period for\\nthe year of assessment 2013, the year of\\nassessment\\n2014\\nor\\nthe\\nyear\\nof\\nassessment\\n2015,\\nthe\\nlast\\nmonth\\nof\\nthe\\nquarter; and\\n(iii) in the case of a quarter of the basis period, for\\nthe year of assessment 2016, the year of\\nassessment\\n2017\\nor\\nthe\\nyear\\nof\\nassessment 2018, all 3 months of the quarter;\\n“quarter”, in relation to a basis period, means a period of\\n3 months beginning with —\\n(a) the first month of the basis period;\\n(b) the 4th month of the basis period;\\n(c) the 7th month of the basis period; or\\n(d) the 10th month of the basis period,\\nor any of several non‑overlapping periods within the basis\\nperiod as the Comptroller may specify for the qualifying\\nperson.\\n[Act 33 of 2022 wef 04/11/2022]\\n[37/2014]\\n[Deleted by Act 33 of 2022 wef 04/11/2022]\\n(21A) For the purpose of paragraph (b)(ii) and (iii) of the definition\\nof “qualifying person” in subsection (21), the reference to a local\\nemployee of a qualifying person based on the qualifying person’s\\npayroll for any part of the basis period for the year of assessment 2014\\nor a subsequent year of assessment, includes a reference to —\\n(a) a local person —\\n(i) who is engaged by the central hirer of a central hiring\\narrangement for a group of related parties which\\nincludes the qualifying person;\\nIncome Tax Act 1947\\n2020 Ed.\\n744\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(ii) who is deployed to work solely for the qualifying\\nperson in that part of the basis period;\\n(iii) who is on the payroll of the central hirer or the\\nqualifying person for that part of the basis period;\\nand\\n(iv) whose salary and other remuneration (including\\ntraining expenditure incurred in respect of the\\nperson) for that part of the basis period is borne,\\ndirectly or indirectly, by the qualifying person; and\\n(b) a local person —\\n(i) who, being an employee of another person (called in\\nthis subsection and subsection (21B) the employer),\\nis seconded to the qualifying person under a bona\\nfide commercial arrangement to work solely for the\\nqualifying person in that part of the basis period;\\n(ii) who is on the payroll of the employer or the\\nqualifying person for that part of the basis period;\\nand\\n(iii) whose salary and other remuneration (including\\ntraining expenditure incurred in respect of the\\nperson) for that part of the basis period is borne,\\ndirectly or indirectly, by the qualifying person,\\nand the local person is treated as employed by the qualifying person\\nfor the purpose of paragraph (b) of the definition.\\n[37/2014]\\n(21B) In determining whether the central hirer or employer referred\\nto in subsection (21A) satisfies the definition of “qualifying person”\\nin subsection (21), the person referred to in subsection (21A)(a) or (b)\\nis not treated as being employed by the central hirer or the employer\\nbased on the payroll of the central hirer or employer for the part of the\\nbasis period referred to in subsection (21A).\\n[37/2014]\\n(21C) In subsections (7), (8), (8A), (8B) and (10), a reference to\\nexpenditure incurred on the provision of a PIC automation equipment\\nincludes a reference to expenditure incurred on the provision of a\\nIncome Tax Act 1947\\n745\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nwebsite for the purposes of a trade, profession or business, and a\\nreference to PIC automation equipment includes a reference to such a\\nwebsite.\\n[37/2014]\\n(21D) To avoid doubt, where the Comptroller has treated the\\nopen‑market price mentioned in section 19B(10E) as the capital\\nexpenditure incurred for the acquisition of intellectual property\\nrights, then the reference in this section to selected expenditure,\\ninsofar as it relates to that capital expenditure, is a reference to such\\nopen‑market price.\\n[34/2016]\\n(22) The Comptroller may allow an election under subsection (1) or\\n(4A), or both, to be made in respect of 2 or more consecutive quarters\\nof the basis period for the year of assessment 2013, the year of\\nassessment 2014, the year of assessment 2015, the year of\\nassessment 2016, the year of assessment 2017 or the year of\\nassessment 2018, and for that purpose —\\n(a) the reference in the definition of “qualifying person” in\\nsubsection (21) to the last month of a quarter is a reference\\nto the last month of the combined consecutive quarters or,\\nif the election is in respect of the entire basis period, the last\\nmonth of the basis period or such other month as the\\nComptroller may determine;\\n(aa) the reference in sub‑paragraph (b)(iii) of the definition of\\n“qualifying person” in subsection (21) to all 3 months of\\nthe quarter is a reference to the last 3 months of the\\ncombined consecutive quarters or such other months as the\\nComptroller may determine or, if the election is in respect\\nof the entire basis period, the last 3 months of the basis\\nperiod or such other months as the Comptroller may\\ndetermine;\\n(b) the requirement under subsection (1) or (4A), or both (as\\nthe case may be) that the expenditure and cash price for a\\nquarter of a basis period must be at least $400 is applied to\\nall the expenditure or cash price, or both (as the case may\\nbe), for the combined consecutive quarters for which the\\nqualifying person intends to make the election; and\\nIncome Tax Act 1947\\n2020 Ed.\\n746\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) the reference in subsection (2) or (4B), or both (as the case\\nmay be), to the end of a quarter is a reference to the end of\\nthe combined consecutive quarters.\\n[37I\\n[37/2014]\\nProductivity and Innovation Credit bonus\\n37H.—(1) For each of the years of assessment 2013, 2014 and\\n2015, a person, being a company or firm (including a partnership)\\n(called in this section an eligible person), is entitled to be given an\\namount in cash (called in this section the Productivity and Innovation\\nCredit Scheme bonus or PIC bonus) if the Comptroller is satisfied,\\nbased on the return of the person’s income for that year of assessment\\nand other information available to the Comptroller, that —\\n(a) the person has incurred during the basis period for the year\\nof assessment PIC expenditure of at least $5,000 in total;\\n(b) the person is carrying on a trade, profession or business in\\nSingapore; and\\n(c) the person employed and made contributions to the Central\\nProvident Fund in respect of at least 3 local employees\\nbased on the payroll for the last month (or such other\\nmonth as the Comptroller may determine) of the basis\\nperiod.\\n(2) The amount of the PIC bonus to be given to the eligible person\\nfor any year of assessment is the lower of the following:\\n(a) the amount of PIC expenditure incurred by the eligible\\nperson during the basis period for that year of assessment;\\n(b) $15,000 less any PIC expenditure incurred by the eligible\\nperson during the basis period or periods for the other year\\nor years of assessment (whether earlier or later than the\\nfirstmentioned basis period) for which the eligible person\\nhas already been given the PIC bonus.\\n(3) Despite subsection (1), the eligible person is entitled to be given\\nthe PIC bonus for the year of assessment 2013, 2014 or 2015 before\\nthe expiry of the time the eligible person must deliver the return of the\\nIncome Tax Act 1947\\n747\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\neligible person’s income for that year of assessment, if the eligible\\nperson has made an election under section 37G for a cash payout in\\nrespect of PIC expenditure incurred for a period comprising the\\nwhole or a part of the basis period for the year of assessment (called in\\nthis section the elected period), and the Comptroller is satisfied, based\\non information given by the person pursuant to the election and other\\ninformation available to the Comptroller, that —\\n(a) the person has incurred PIC expenditure of at least $5,000\\nin total from the beginning of the basis period to the end of\\nthe elected period;\\n(b) the person is a qualifying person within the meaning of\\nsection 37G in respect of the elected period; and\\n(c) the person is carrying on a trade, profession or business in\\nSingapore.\\n(4) The amount of the PIC bonus to be given to the eligible person\\nunder subsection (3) is the lower of the following:\\n(a) an amount that corresponds to the PIC expenditure\\nincurred from the beginning of the basis period to the\\nend of the elected period, less any expenditure incurred in\\nthat period for which the eligible person has already been\\ngiven the PIC bonus;\\n(b) $15,000 less any PIC expenditure incurred by the eligible\\nperson during the basis period or periods for the other year\\nor years of assessment (whether earlier or later than the\\nfirstmentioned basis period) for which the eligible person\\nhas already been given the PIC bonus.\\n(5) Where —\\n(a) one or more payments of the PIC bonus for a year of\\nassessment has been made to an eligible person under\\nsubsection (3); and\\n(b) as of the date the eligible person delivers the return of the\\neligible person’s income for that year of assessment, the\\neligible person has not been given the maximum amount of\\nIncome Tax Act 1947\\n2020 Ed.\\n748\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthe PIC bonus which the eligible person may be given\\nunder subsection (2) for that year of assessment,\\nthen the eligible person is entitled to be given the balance of the PIC\\nbonus in respect of any PIC expenditure incurred in the basis period\\nfor the year of assessment for which no PIC bonus has been given, if\\nthe Comptroller is satisfied, based on the return and other information\\navailable to the Comptroller, that the person —\\n(c) is carrying on a trade, profession or business in Singapore;\\nand\\n(d) employed and made contributions to the Central Provident\\nFund in respect of at least 3 local employees based on the\\npayroll for the last month (or such other month as the\\nComptroller may determine) of the basis period.\\n(5A) For the purpose of subsections (1)(c) and (5)(d), a reference to\\na local employee of an eligible person based on the eligible person’s\\npayroll for any part of the basis period for the year of assessment 2014\\nor a subsequent year of assessment, includes a reference to —\\n(a) a local person —\\n(i) who is engaged by the central hirer of a central hiring\\narrangement for a group of related parties which\\nincludes the eligible person;\\n(ii) who is deployed to work solely for the eligible\\nperson in that part of the basis period;\\n(iii) who is on the payroll of the central hirer or the\\neligible person for that part of the basis period; and\\n(iv) whose salary and other remuneration (including\\ntraining expenditure incurred in respect of the\\nperson) for that part of the basis period is borne,\\ndirectly or indirectly, by the eligible person; and\\n(b) a local person —\\n(i) who, being an employee of another person (called in\\nthis subsection and subsection (5B) the employer), is\\nseconded to the eligible person under a bona fide\\nIncome Tax Act 1947\\n749\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\ncommercial arrangement to work solely for the\\neligible person in that part of the basis period;\\n(ii) who is on the payroll of the employer or the eligible\\nperson for that part of the basis period; and\\n(iii) whose salary and other remuneration (including\\ntraining expenditure incurred in respect of the\\nperson) for that part of the basis period is borne,\\ndirectly or indirectly, by the eligible person,\\nand the local person is treated as employed by the eligible person for\\nthe purpose of those provisions.\\n[37/2014]\\n(5B) In determining whether the central hirer or employer referred\\nto in subsection (5A) satisfies subsection (1)(c) or (5)(d), the person\\nreferred to in subsection (5A)(a) or (b) is not treated as being\\nemployed by the central hirer or the employer based on the payroll of\\nthe central hirer or employer for the part of the basis period referred to\\nin subsection (5A).\\n[37/2014]\\n(6) For the purposes of this section, an individual carrying on one or\\nmore trades, professions or businesses through 2 or more firms\\n(excluding partnerships) must not be given a PIC bonus for any year\\nof assessment that exceeds the amount computed in accordance with\\nsubsection (2) for that year of assessment.\\n(7) Despite subsections (1), (3) and (5), no PIC bonus may be given\\nin respect of —\\n(a) any qualifying intellectual property registration costs\\nunder section 14A relating to any intellectual property\\nrights or any application for the registration or grant of\\nsuch rights, if the rights or application have or has been\\nsold, transferred or assigned within one year from the date\\nof filing of the application for the registration or grant of\\nthose rights;\\n(b) any capital expenditure on the provision of any PIC\\nautomation equipment —\\nIncome Tax Act 1947\\n2020 Ed.\\n750\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(i) if it has been sold, transferred, assigned or leased out\\nwithin one year from the date of provision; and\\n(ii) a waiver under section 19A(2HA) (in the case of\\nsubsection (1) or (5)) or 37G(10A) (in the case of\\nsubsection (3)) has not been granted in respect of the\\nsale, transfer, assignment or lease; and\\n(c) any capital\\nexpenditure\\non\\nthe\\nacquisition\\nof\\nany\\nintellectual property rights if any of the following has\\noccurred within one year from the date of acquisition:\\n(i) the intellectual property rights have come to an end\\nwithout being subsequently revived;\\n(ii) all or any part of the intellectual property rights have\\nbeen sold, transferred or assigned;\\n(iii) the eligible person has permanently ceased to carry\\non the trade or business for which the intellectual\\nproperty rights were used;\\n(iv) all or any part of the intellectual property rights in\\nany software have been licensed to another.\\n(8) Where a PIC bonus has been given to an eligible person in\\nrespect of —\\n(a) qualifying intellectual property registration costs under\\nsection 14A relating to any intellectual property rights or\\nany application for the registration or grant of such rights,\\nand the rights or application are or is sold, transferred or\\nassigned within one year from the date of filing of the\\napplication for the registration or grant of those rights; or\\n(b) capital expenditure on the provision of any PIC automation\\nequipment and that equipment is sold, transferred, assigned\\nor leased out within one year from the date of provision,\\nthen all of the following provisions apply:\\n(c) the eligible person must give written notice to the\\nComptroller of such event in the manner specified by the\\nComptroller within 30 days from the date of such event;\\nIncome Tax Act 1947\\n751\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(d) the PIC bonus given for the PIC expenditure in respect of\\nthe application for the registration or grant of intellectual\\nproperty rights or the PIC automation equipment, is\\nrecoverable by the Comptroller from the person as a debt\\ndue to the Government;\\n(e) where the PIC automation equipment is the subject of a\\nhire‑purchase agreement, no PIC bonus may be given to\\nthe person for any PIC expenditure under the agreement\\nincurred in the basis period in which the event occurs and\\nfor any subsequent basis period thereof.\\n(8A) For the purposes of subsections (7) and (8), a reference to\\ncapital expenditure on the provision of any PIC automation\\nequipment includes a reference to capital expenditure on the\\nprovision of a website for the purposes of a trade, profession or\\nbusiness, and a reference to PIC automation equipment includes a\\nreference to such a website.\\n[37/2014]\\n(9) The Minister, or such person as the Minister may appoint, may\\nwaive the application of subsection (8) in respect of an event referred\\nto in paragraph (b) of that subsection in the same circumstances as\\nthose referred to in section 19A(2HA).\\n(10) Where a PIC bonus has been given to an eligible person in\\nrespect of capital expenditure on the acquisition of any intellectual\\nproperty rights and any of the following occurs within 5 years from\\nthe date of acquisition:\\n(a) the intellectual property rights come to an end without\\nbeing subsequently revived;\\n(b) all or any part of the intellectual property rights are sold,\\ntransferred or assigned;\\n(c) the person permanently ceases to carry on the trade or\\nbusiness for which the intellectual property rights are used;\\n(d) all or any part of the intellectual property rights in any\\nsoftware are licensed to another,\\nIncome Tax Act 1947\\n2020 Ed.\\n752\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthen both of the following provisions apply:\\n(e) the person must give written notice to the Comptroller of\\nsuch event in the manner specified by the Comptroller\\nwithin 30 days from the date of such event;\\n(f) an amount computed in accordance with the following\\nformula is recoverable by the Comptroller from the person\\nas a debt due to the Government:\\nAmount of PIC bonus \\u0003\\n5 \\u0001 Number of complete years\\nthe intellectual property rights\\nwere held by the person\\n0\\n@\\n1\\nA\\n5\\n:\\n(11) Where a PIC bonus has been given to an eligible person in\\nrespect of capital expenditure on the acquisition of any intellectual\\nproperty rights under an IPR instalment agreement and any of the\\nevents in subsection (10)(a) to (d) occurs within 5 years from the date\\nof acquisition of the intellectual property rights, then all the following\\nprovisions apply:\\n(a) the person must give written notice to the Comptroller of\\nsuch event in the manner specified by the Comptroller\\nwithin 30 days from the date of such event;\\n(b) where any amount of the PIC bonus has been given to the\\nperson before the occurrence of the event, an amount\\ncomputed\\nin\\naccordance\\nwith\\nthe\\nformula\\nin\\nsubsection (10)(f) is recoverable by the Comptroller from\\nthe person as a debt due to the Government;\\n(c) for the purpose of paragraph (b), the reference in the\\nformula to the amount of PIC bonus is a reference to the\\ntotal amount of the PIC bonus that has been given to the\\nperson before the occurrence of the event;\\n(d) the amount of the PIC bonus that may be given to the\\nperson in respect of those intellectual property rights for\\nthe basis period or elected period (as the case may be) in\\nwhich the event occurs and thereafter is the part of the PIC\\nIncome Tax Act 1947\\n753\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nbonus that corresponds to the intellectual property rights\\nmultiplied by the following:\\nNumber of complete years the intellectual\\nproperty rights were held by the person\\n\\u0013\\n\\u0014\\n5\\n:\\n(12) Where any tax, duty, interest or penalty is due under this Act,\\nthe Goods and Services Tax Act 1993, the Property Tax Act 1960 or\\nthe Stamp Duties Act 1929 by an eligible person to the Comptroller,\\nthe Comptroller of Goods and Services Tax, the Comptroller of\\nProperty Tax or the Commissioner of Stamp Duties, the amount of\\nPIC bonus that may be given by the Comptroller to the eligible person\\nis reduced by the amount so due.\\n(13) Any amount reduced under subsection (12) is deemed to be\\ntax, duty, interest or penalty paid by the eligible person under the\\nrelevant Act and must (if it is due under an Act other than this Act) be\\npaid by the Comptroller to the Comptroller of Goods and Services\\nTax, the Comptroller of Property Tax or the Commissioner of Stamp\\nDuties, as the case may be.\\n(14) Where an eligible person has received a PIC bonus —\\n(a) in respect of any expenditure that is subsequently found not\\nto qualify for the deduction or allowance under the relevant\\nPIC provision;\\n(b) without having satisfied all of the requirements in this\\nsection for the PIC bonus; or\\n(c) that is in excess of that which may be given to the eligible\\nperson under this section,\\nthe amount of the PIC bonus or the excess amount of the PIC bonus\\n(as the case may be) is recoverable by the Comptroller from the\\nperson as a debt due to the Government.\\n(15) The amounts to be repaid under subsections (8), (10), (11) and\\n(14) are payable at the place stated in the notice served by the\\nComptroller on the eligible person within 30 days after the service of\\nthe notice.\\nIncome Tax Act 1947\\n2020 Ed.\\n754\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(16) The Comptroller may, in his or her discretion and subject to\\nsuch terms and conditions as the Comptroller may impose, extend the\\ntime limit within which payment under subsection (15) is to be made.\\n(17) Sections 86(1) to (6), 87(1) and (2), 89, 90 and 91 apply to the\\ncollection and recovery by the Comptroller of the amounts\\nrecoverable under subsections (8), (10), (11) and (14) as they apply\\nto the collection and recovery of tax.\\n(18) In this section —\\n“IPR instalment agreement” has the meaning given by\\nsection 37G(21);\\n“local employee”, in relation to an eligible person, means any\\nSingapore citizen or Singapore permanent resident, but\\nexcludes —\\n(a) a shareholder who is also a director of the eligible\\nperson if the eligible person is a company within the\\nmeaning of section 4 of the Companies Act 1967; and\\n(b) a partner under a contract for service of the eligible\\nperson if the eligible person is a partnership;\\n“local person”, in relation to an eligible person, means any\\ncitizen or permanent resident of Singapore, but excludes —\\n(a) a shareholder who is also a director of the eligible\\nperson if the eligible person is a company within the\\nmeaning of section 4 of the Companies Act 1967; and\\n(b) a partner under a contract for service of the eligible\\nperson if the eligible person is a partnership;\\n“PIC automation equipment” has the meaning given by\\nsection 19A(15);\\n“PIC provision” means any of the provisions of this Act in the\\nsecond\\ncolumn\\nof\\nthe\\ntable\\nin\\nthe\\ndefinition\\nof\\n“PIC expenditure”;\\n“Productivity and Innovation Credit Scheme expenditure” or\\n“PIC expenditure”, in relation to an eligible person who\\nincurs the expenditure, means any of the expenditure in the\\nIncome Tax Act 1947\\n755\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nfirst column of the following table for which a deduction or\\nan allowance may be allowed or made to the eligible person\\nunder the provision of this Act that corresponds to it in the\\nsecond column of the table:\\n.\\nExpenditure\\n.\\nProvision of Act\\n.\\n(a) Qualifying\\nintellectual\\nproperty registration costs as\\ndefined in section 14A\\n.\\nSection 14A(1B)\\n(b) Qualifying\\nexpenditure\\nas\\ndefined in section 14D\\nSection 14D(2)\\n(c) Qualifying\\ntraining\\nexpenditure\\nas\\ndefined\\nin\\nsection 14O\\nSection 14O(2)\\n(d) Qualifying\\ndesign\\nexpenditure\\nas\\ndefined\\nin\\nsection 14P\\nSection 14P(2)\\n(e) Expenditure on the leasing of\\nany\\nPIC\\nautomation\\nequipment, or procuring of\\ncloud computing services as\\ndefined in section 14Q\\nSection 14Q(2)\\n(f) Expenditure on the licensing\\nfrom\\nanother\\nof\\nany\\nintellectual property rights\\nSection 14T(1)\\n(g) Capital expenditure on the\\nprovision\\nof\\nany\\nPIC\\nautomation\\nequipment\\n(including any expenditure\\nthat is treated as expenditure\\nincurred on the provision of\\nPIC automation equipment\\nunder section 19A(16A))\\nSection 19A(2B)\\nIncome Tax Act 1947\\n2020 Ed.\\n756\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n.\\nExpenditure\\n.\\nProvision of Act\\n(h) Capital\\nexpenditure\\non\\nacquiring\\nany\\nintellectual\\nproperty rights\\nSection 19B(1B).\\n[37IA\\n[37/2014]\\nModification of sections 37G and 37H in their application to\\npartnership\\n37I.—(1) A reference to a qualifying person in section 37G\\n(including the person who has to satisfy the conditions for a cash\\npayout), and a reference to an eligible person in section 37H\\n(including the person who has to satisfy the conditions for the PIC\\nbonus) is in each case, where the person is a partnership, a reference\\nto the partnership; except that a reference in those sections to any\\ndeduction or allowance that may be allowed or made to a qualifying\\nperson or an eligible person under a provision of this Act, is a\\nreference to such deduction or allowance that may be allowed or\\nmade to all of the partners of the partnership.\\n(2) In subsection (1) —\\n“cash payout” means a payment under section 37G;\\n“PIC bonus” means a payment under section 37H.\\n[37IB\\nEnhanced deduction or allowance under Productivity and\\nInnovation Credit Plus Scheme\\n37J.—(1) A person who —\\n(a) during the basis period for the year of assessment 2015,\\n2016, 2017 or 2018, has incurred any expenditure\\nmentioned in the first column of the following table;\\n(b) is a qualifying person for that year of assessment within the\\nmeaning of the regulations made under subsection (3); and\\n(c) has made an application in accordance with subsection (2),\\nIncome Tax Act 1947\\n757\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nis entitled to an enhanced deduction or allowance under the provision\\nin the second column (in the case of the year of assessment 2015) or\\nthe third column (in the case of any of the other years of assessment)\\nof the table that corresponds to that expenditure, computed in\\naccordance with the regulations made under subsection (3):\\nFirst column\\n.\\nSecond column\\n.\\nThird column\\nExpenditure\\nYear of\\nassessment 2015\\nYear of\\nassessment 2016,\\n2017 or 2018\\n1. Qualifying\\nintellectual\\nproperty\\nregistration costs as\\ndefined in\\nsection 14A\\n. Section 14A(1B) . Section 14A(1BA)\\n2. Qualifying\\nexpenditure as\\ndefined in\\nsection 14D\\nSection 14D(2)\\nSection 14D(2)\\n3. Qualifying training\\nexpenditure as\\ndefined in\\nsection 14O\\nSection 14O(2)\\nSection 14O(2A)\\n4. Qualifying design\\nexpenditure as\\ndefined in\\nsection 14P\\nSection 14P(2)\\nSection 14P(2AA)\\n5. Expenditure on the\\nleasing of any PIC\\nautomation\\nequipment, or\\nprocuring of cloud\\ncomputing services\\nas defined in\\nsection 14Q\\nSection 14Q(2)\\nSection 14Q(2A)\\nIncome Tax Act 1947\\n2020 Ed.\\n758\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nFirst column\\n.\\nSecond column\\n.\\nThird column\\nExpenditure\\nYear of\\nassessment 2015\\nYear of\\nassessment 2016,\\n2017 or 2018\\n6. Expenditure on the\\nlicensing from\\nanother of any\\nqualifying\\nintellectual\\nproperty rights as\\ndefined in\\nsection 14T\\nSection 14T(1)\\nSection 14T(4)\\n7. Capital expenditure\\non the provision of\\nany PIC\\nautomation\\nequipment\\n(including any\\ncapital expenditure\\ntreated as capital\\nexpenditure\\nincurred on the\\nprovision of PIC\\nautomation\\nequipment under\\nsection 19A(16A))\\nSection 19A(2B)\\nSection 19A(2BAA)\\n8. Capital expenditure\\non acquiring any\\nintellectual\\nproperty rights\\nSection 19B(1B)\\nSection 19B(1BAA).\\n[37/2014]\\n(2) The application under subsection (1)(c) —\\n(a) must be made to the Comptroller at the time of lodgment\\nby the qualifying person of the return of income for that\\nIncome Tax Act 1947\\n759\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nyear of assessment or within such extended time as the\\nComptroller may allow; and\\n(b) must be accompanied by such information and supporting\\ndocument, given in such form and manner, as the\\nComptroller may specify.\\n[37/2014]\\n(3) The Minister may make regulations —\\n(a) to define a qualifying person for each year of assessment\\nfor the purposes of subsection (1);\\n(b) to provide for the computation of the amount of the\\nenhanced deduction or allowance under that subsection;\\nand\\n(c) to make provisions generally for giving effect to or for\\ncarrying out the purposes of this section.\\n[37/2014]\\n(4) All regulations made under subsection (3) must be presented to\\nParliament as soon as possible after publication in the Gazette.\\n[37/2014]\\n(5) To avoid doubt, an enhanced deduction or allowance referred to\\nin subsection (1) is a deduction or allowance under the applicable\\nprovision under the second or third column of the table in that\\nsubsection, and the provisions of section 14A, 14D, 14O, 14P, 14Q,\\n14T, 19A or 19B (whichever is applicable) apply to the deduction or\\nallowance.\\n[37/2014]\\n(6) In this section, “person” means a company or firm (including a\\npartnership).\\n[37IC\\n[37/2014]\\nAbusive PIC arrangements\\n37K.—(1) Despite the provisions of this Act, the Comptroller may\\ndisallow an amount referred to in subsection (2) of a claim for —\\n(a) a PIC enhanced deduction; or\\n(b) a PIC cash payout,\\nIncome Tax Act 1947\\n2020 Ed.\\n760\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nand disallow the payment of an amount referred to in subsection (2)\\nof a PIC bonus based on that claim, if the Comptroller has reasonable\\ngrounds to suspect that the claim arises from an abusive PIC\\narrangement.\\n[37/2014]\\n(2) The amount of the PIC enhanced deduction, PIC cash payout or\\nPIC bonus that may be disallowed under subsection (1) is the amount\\nresulting from the PIC arrangement being abusive as defined under\\nsubsection (10).\\n[37/2014]\\n(3) Despite the provisions of this Act, the amount referred to in\\nsubsection (4) of a PIC cash payout or PIC bonus paid to a person that\\nwas based on a claim that arose from an abusive PIC arrangement is\\nrecoverable by the Comptroller from the person as a debt due to the\\nGovernment.\\n[37/2014]\\n(4) The amount of the PIC cash payout or PIC bonus that is\\nrecoverable under subsection (3) is the amount resulting from the PIC\\narrangement being abusive as defined under subsection (10).\\n[37/2014]\\n(5) The amount that is recoverable under subsection (3) is payable\\nat the place stated in the notice served by the Comptroller on the\\nperson within 30 days after the service of the notice.\\n[37/2014]\\n(6) The Comptroller may, in his or her discretion and subject to\\nsuch terms and conditions as the Comptroller may impose, extend the\\ntime within which payment under subsection (3) is to be made.\\n[37/2014]\\n(7) Sections 86(1) to (6), 87(1) and (2), 89, 90 and 91 apply to the\\ncollection and recovery by the Comptroller of the amount recoverable\\nunder subsection (3) as they apply to the collection and recovery of\\ntax.\\n[37/2014]\\n(8) In this section, an arrangement is a PIC arrangement if the\\nobtaining of a PIC cash payout, PIC bonus or PIC enhanced\\ndeduction, or a higher amount of a PIC cash payout, PIC bonus or\\nIncome Tax Act 1947\\n761\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nPIC enhanced deduction, was the purpose or one of the purposes of\\nthe arrangement (called in this section the relevant purpose).\\n[37/2014]\\n(9) In this section, a PIC arrangement is abusive if —\\n(a) it consists or makes use of one or more artificial, contrived\\nor fraudulent steps that are intended to achieve the relevant\\npurpose;\\n(b) the arrangement results in the consideration paid or\\npayable for the property or services in question being of\\na greater value than the open market value of the property\\nor services, and there is no bona fide commercial reason for\\nthe difference in the values apart from the relevant\\npurpose; or\\n(c) in any other case, there is no bona fide commercial reason\\nfor entering into the arrangement or a transaction forming\\npart of the arrangement apart from the relevant purpose.\\n[37/2014]\\n(10) In this section, the amount of PIC enhanced deduction, PIC\\ncash payout or PIC bonus resulting from a PIC arrangement being\\nabusive is —\\n(a) if\\nthe\\narrangement\\nis\\nabusive\\nby\\nreason\\nof\\nsubsection (9)(a), the amount that results or has resulted\\nfrom the use of the artificial, contrived or fraudulent step or\\nsteps, excluding any amount the person concerned is\\nentitled to if the step or steps had not been used;\\n(b) if\\nthe\\narrangement\\nis\\nabusive\\nby\\nreason\\nof\\nsubsection (9)(b), the amount that corresponds to the\\ndifference in the values mentioned in that provision; or\\n(c) if\\nthe\\narrangement\\nis\\nabusive\\nby\\nreason\\nof\\nsubsection (9)(c), the full amount.\\n.\\nExamples\\n(i) A enters into a contract for training for A’s employees. The right\\nto training may be exchanged for goods. Expenditure for the\\ngoods is not eligible for a PIC cash payout. A exchanged the\\nright to training for those goods and made a claim for a PIC\\nIncome Tax Act 1947\\n2020 Ed.\\n762\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\ncash payout in respect of the expenditure. The contract and the\\nexchange together form an abusive PIC arrangement. The\\namount of the PIC cash payout that results from the\\narrangement\\nbeing\\nabusive\\nfor\\nthe\\npurposes\\nof\\nsubsections (1) and (3) is the full amount of the payout.\\n(ii) A, in order to obtain a higher amount of PIC cash payout,\\npurchases more equipment than A needs for A’s business. The\\npurchase of the excess equipment is an abusive PIC\\narrangement. The amount of the PIC cash payout that results\\nfrom the arrangement being abusive for the purposes of\\nsubsections (1) and (3) is the amount corresponding to the\\nprice paid for the excess equipment.\\n(iii) A and B, in order to help each other obtain a PIC cash payout,\\nsell to each other equipment that performs the same function.\\nThe sales are abusive PIC arrangements. The amount of the\\nPIC cash payout that results from the arrangement being\\nabusive for the purposes of subsections (1) and (3) is the full\\namount of the payout.\\n(iv) A enters into a contract for training for A’s employees. The\\ncontract price for the training includes both the value of the\\ntraining and the value of other goods to be given to the trainees.\\nExpenditure for those goods is not eligible for a PIC cash\\npayout. The purpose for setting the price for the training in this\\nway is to enable a higher PIC cash payout to be paid to A. The\\ncontract is an abusive PIC arrangement. The amount of the PIC\\ncash payout that results from the arrangement being abusive for\\nthe purposes of subsections (1) and (3) is the amount\\ncorresponding to the price for those other goods.\\n[37/2014]\\n(11) This section applies only to arrangements made or entered into\\non or after 27 November 2014.\\n[37/2014]\\n(12) In this section —\\n“arrangement” includes any agreement, understanding, scheme,\\ntransaction or series of transactions (whether or not legally\\nenforceable);\\n“PIC bonus” means a payment under section 37H;\\n“PIC cash payout” means a payment under section 37G;\\nIncome Tax Act 1947\\n763\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“PIC enhanced deduction” means a deduction or an allowance\\nunder section 14A(1B) or (1BA), 14D(2), 14O(2) or (2A),\\n14P(2) or (2AA), 14Q(2) or (2A), 14T(1) or (4), 19A(2B) or\\n(2BAA), 19B(1B) or (1BAA), or 37J.\\n[37ID\\n[37/2014]\\nPromoters of abusive PIC arrangements\\n37L.—(1) A person who promotes any PIC arrangement knowing\\nor having reasonable grounds to believe that the arrangement is\\nabusive shall be guilty of an offence and shall be liable on conviction\\nto a fine not exceeding $10,000 or to imprisonment for a term not\\nexceeding 3 years or to both.\\n[37/2014]\\n(2) In subsection (1), a person promotes a PIC arrangement if the\\nperson —\\n(a) designs, facilitates, organises or manages that arrangement\\nor any part of that arrangement; or\\n(b) publishes, disseminates or communicates any information,\\nby any means or in any form, for the purpose of inducing or\\nencouraging (whether directly or indirectly) any other\\nperson to enter into the arrangement or any transaction\\nforming part of the arrangement.\\n[37/2014]\\n(3) In subsection (1), a PIC arrangement is abusive if —\\n(a) it consists or makes use of one or more artificial, contrived\\nor fraudulent steps that are intended to assist any person\\nwho enters into the arrangement or a transaction forming\\npart of the arrangement to achieve the relevant purpose;\\n(b) the arrangement will result in the consideration payable for\\nany property or services being of a greater value than the\\nopen market value of the property or services, and there is\\nno bona fide commercial reason for the difference in the\\nvalues apart from the relevant purpose; or\\n(c) in any other case, there is no bona fide commercial reason\\nfor a person to enter into the arrangement or a transaction\\nIncome Tax Act 1947\\n2020 Ed.\\n764\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nforming part of the arrangement apart from the relevant\\npurpose.\\n[37/2014]\\n(4) The examples of abusive PIC arrangements in section 37K(10)\\napply for the purposes of subsection (3).\\n[37/2014]\\n(5) Where, in any proceedings for an offence under subsection (1),\\nit is proved that the arrangement in question consists or makes use of\\nan artificial, contrived or fraudulent step which is capable of assisting\\nany person who enters into the arrangement or a transaction forming\\npart of the arrangement to achieve the relevant purpose, then it is\\npresumed that the step is intended for the relevant purpose, unless the\\ncontrary is proved.\\n[37/2014]\\n(6) Where, in any proceedings for an offence under subsection (1),\\nit is proved that —\\n(a) the arrangement in question will result or has resulted in\\nthe consideration paid or payable for any property or\\nservices being of a greater value than the open market\\nvalue of the property or services; and\\n(b) the difference in the values cannot be justified on the basis\\nof any prevailing practice of the trade, profession or\\nbusiness concerned (not being a practice adopted for the\\npurpose of achieving the relevant purpose),\\nthen it is presumed that there is no bona fide commercial reason for\\nthe difference in the values apart from the relevant purpose, unless the\\ncontrary is proved.\\n[37/2014]\\n(7) The\\nComptroller\\nmay\\ncompound\\nany\\noffence\\nunder\\nsubsection (1).\\n[37/2014]\\n(8) In this section —\\n“PIC arrangements”, “PIC cash payout”, “PIC bonus” and “PIC\\nenhanced\\ndeduction”\\nhave\\nthe\\nmeanings\\ngiven\\nby\\nsection 37K;\\nIncome Tax Act 1947\\n765\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“relevant purpose” means the purpose of obtaining a PIC cash\\npayout, PIC bonus or PIC enhanced deduction, or a higher\\namount of PIC cash payout, PIC bonus or PIC enhanced\\ndeduction.\\n[37IE\\n[37/2014]\\nPenalties for false information, etc., resulting in payment under\\nsection 37G or 37H\\n37M.—(1) Any person who gives to the Comptroller any\\ninformation under section 37G(2) that is false in any material\\nparticular, or who omits any material particular from any information\\nor document given under that provision, shall be guilty of an offence\\nand shall on conviction be punished with a penalty that is equal to the\\namount of cash payout or PIC bonus (or both, as the case may be) that\\nhas been made to the person or any other person as a result of the\\noffence, or which would have been made to the person or any other\\nperson if the offence had not been detected.\\n(2) Any person who without reasonable excuse or through\\nnegligence\\ngives\\nto\\nthe\\nComptroller\\nany\\ninformation\\nunder\\nsection 37G(2) that is false in any material particular, or omits any\\nmaterial particular from any information or document given under\\nthat provision, shall be guilty of an offence and shall on conviction be\\npunished with a penalty that is double the amount of cash payout or\\nPIC bonus (or both, as the case may be) that has been made to the\\nperson or any other person as a result of the offence, or which would\\nhave been made to the person or any other person if the offence had\\nnot been detected, and shall also be liable to a fine not exceeding\\n$5,000 or to imprisonment for a term not exceeding 3 years or to both.\\n(3) Any person who wilfully with intent to obtain, or to assist\\nanother person to obtain, a cash payout or PIC bonus (or both) or a\\nhigher amount of cash payout or PIC bonus (or both) which the\\nperson or that other person is not entitled to —\\n(a) gives\\nto\\nthe\\nComptroller\\nany\\ninformation\\nunder\\nsection 37G(2) that is false in any material particular or\\nomits any material particular from any information or\\ndocument given under that provision; or\\nIncome Tax Act 1947\\n2020 Ed.\\n766\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) gives any false answer, whether verbally or in writing, to\\nany question or request for information asked or made by\\nthe Comptroller,\\nshall be guilty of an offence and shall on conviction be punished with\\na penalty that is treble the amount of cash payout or PIC bonus (or\\nboth, as the case may be) that has been made to the person or that\\nother person as a result of the offence, or which would have been\\nmade to the person or that other person if the offence had not been\\ndetected, and shall also be liable to a fine not exceeding $10,000 or to\\nimprisonment for a term not exceeding 3 years or to both.\\n(4) Any person who wilfully with intent to obtain, or to assist\\nanother person to obtain, a cash payout or PIC bonus (or both) or a\\nhigher amount of cash payout or PIC bonus (or both) which the\\nperson or that other person is not entitled to —\\n(a) prepares or maintains or authorises the preparation or\\nmaintenance of any false books of account or other records\\nor falsifies or authorises the falsification of any books of\\naccount or records; or\\n(b) makes use of any fraud, art or contrivance or authorises the\\nuse of such fraud, art or contrivance,\\nshall be guilty of an offence and shall on conviction be punished with\\na penalty that is 4 times the amount of cash payout or PIC bonus (or\\nboth, as the case may be) that has been made to the person or that\\nother person as a result of the offence, or which would have been\\nmade to the person or that other person if the offence had not been\\ndetected, and shall also be liable to a fine not exceeding $50,000 or to\\nimprisonment for a term not exceeding 5 years or to both.\\n(4A) Where an individual has been convicted for —\\n(a) 3 or more offences under subsection (3) or section 96;\\n(b) 2 or more offences under subsection (4) or section 96A; or\\n(c) one offence under either subsection (3) or section 96, and\\none offence under either subsection (4) or section 96A,\\nthe imprisonment the individual shall be liable to shall not be less\\nthan 6 months.\\nIncome Tax Act 1947\\n767\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(4B) Where in any proceedings under subsection (3) it is proved\\nthat any information that is false in a material particular is given to the\\nComptroller under section 37G(2) by or on behalf of any person, the\\nperson who gave the information is presumed, unless the contrary is\\nproved, to have given it with intent to obtain, or to assist the person on\\nwhose behalf the information is given to obtain, a cash payout or PIC\\nbonus (or both) or a higher amount of cash payout or PIC bonus\\n(or both), as the case may be.\\n(4C) Where in any proceedings under subsection (4) it is proved\\nthat any false statement or entry is made in any books of account or\\nother records maintained by or on behalf of any person, the person\\nwho made the statement or entry is presumed, unless the contrary is\\nproved, to have made that false statement or entry with intent to\\nobtain, or to assist the person on whose behalf the statement or entry\\nis made to obtain, a cash payout or PIC bonus (or both) or a higher\\namount of cash payout or PIC bonus (or both), as the case may be.\\n(5) The Comptroller may compound any offence under this section\\nother than subsection (4).\\n(5A) In this section, a reference to the amount of cash payout or PIC\\nbonus that has been made to a person as a result of an offence, or\\nwhich would have been made to the person if the offence had not been\\ndetected, excludes an amount of the cash payout or PIC bonus that the\\nperson is entitled to.\\n[37/2014]\\n(6) In this section —\\n“cash payout” means a payment under section 37G;\\n“PIC bonus” means a payment under section 37H.\\n[37J\\nDeduction for qualifying investments in qualifying start‑up\\ncompanies\\n37N.—(1) Where an individual proposes to make one or more\\nqualifying investments that complies with subsection (4) in a\\nqualifying start‑up company or companies, the individual may\\napply to the Minister, or such person as the Minister may appoint,\\nIncome Tax Act 1947\\n2020 Ed.\\n768\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nbetween 1 July 2010 and 31 March 2020 (both dates inclusive) to be\\napproved as a qualifying person for the purposes of claiming a\\ndeduction under this section in respect of the expenditure incurred by\\nthe individual in making the investments.\\n[2/2016]\\n(2) Where the Minister or the person appointed by the Minister is\\nsatisfied that the individual possesses the necessary experience, skills\\nor expertise to nurture and grow a qualifying start‑up company, the\\nMinister or appointed person may approve, by written notice, the\\nindividual as a qualifying person, subject to such conditions as the\\nMinister or appointed person may impose.\\n(2A) No approval may be granted under subsection (2) after\\n31 March 2020, and any approval granted to a qualifying person must\\ncommence between 1 July 2010 and 31 March 2020 (both dates\\ninclusive).\\n[41/2020]\\n(3) Where a qualifying person —\\n(a) has\\nincurred\\nexpenditure\\nin\\nmaking\\na\\nqualifying\\ninvestment that complies with subsection (4) in a\\nqualifying start‑up company or companies; and\\n(b) has directly and beneficially held the shares or convertible\\nloans which are the subject of the qualifying investment for\\na continuous period of 2 years from the relevant date,\\nthe qualifying person is to be allowed on due claim, for the year of\\nassessment relating to the basis period in which the last day of the\\n2‑year period falls, a deduction, computed in accordance with\\nsubsection (5), against the remainder of the qualifying person’s\\nstatutory income (excluding specified income) after making the\\ndeduction (if any) under section 37(3)(a).\\n(4) For the purposes of subsection (3), the qualifying investment\\nmust be made —\\n(a) either —\\n(i) during the period that is specified to the qualifying\\nperson; or\\nIncome Tax Act 1947\\n769\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(ii) if the Minister or such person as the Minister may\\nappoint so approves, during the period between\\n1 March 2010 and 30 June 2010 (both dates\\ninclusive);\\n(b) if it is the first qualifying investment made by the\\nqualifying person in the qualifying start‑up company\\nsince the qualifying person is approved as such under\\nsubsection (2) and paragraph (d) does not apply, on the date\\nof such approval or within one year from that date;\\n(c) if it is not the first qualifying investment made by the\\nqualifying person in the qualifying start‑up company since\\nthe\\nqualifying\\nperson\\nis\\napproved\\nas\\nsuch\\nunder\\nsubsection (2) and paragraph (d) does not apply, within\\none year from the date of the first qualifying investment\\nreferred to in paragraph (b) that complies with that\\nparagraph; and\\n(d) if approval has been obtained under paragraph (a)(ii) and\\nthe qualifying person has made at least one qualifying\\ninvestment in the qualifying start‑up company during the\\nperiod between 1 March 2010 and 30 June 2010 (both\\ndates inclusive), within one year from the date such\\nqualifying investment or the first of such qualifying\\ninvestments was made.\\n[37/2014; 2/2016; 41/2020]\\n(5) The amount of deduction allowable to a qualifying person under\\nsubsection (3) is ascertained by the formula\\n0:5 \\u0003 A;\\nwhere A is the aggregate amount of expenditure incurred by the\\nqualifying person on the qualifying investment in a\\nqualifying start‑up company or companies or $500,000,\\nwhichever is less.\\n(6) For the purpose of computing the aggregate amount of\\nexpenditure incurred by a qualifying person in respect of a\\nqualifying\\ninvestment\\nin\\na\\nqualifying\\nstart‑up\\ncompany\\nor\\nIncome Tax Act 1947\\n2020 Ed.\\n770\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\ncompanies under subsection (5), no expenditure incurred by the\\nqualifying person in respect of qualifying investment in any one\\nqualifying start‑up company is to be included —\\n(a) if the total amount of any such expenditure that is incurred\\non the date of first investment and within one year from\\nthat date (but excluding any expenditure incurred on\\nqualifying investment that is disposed of during the\\nrelevant holding period) is less than $100,000;\\n(b) to the extent that the expenditure, being expenditure\\nincurred before 24 February 2015, is matched by any\\ninvestment in the company by the company known as\\nSPRING SEEDS Capital Pte Ltd under the SPRING\\nStart‑up Enterprise Development Scheme administered by\\nthe second‑mentioned company or any other scheme\\ndesignated by the Minister or such person as the\\nMinister may appoint;\\n(c) if all the shares which are the subject of the qualifying\\ninvestment are disposed of during the relevant holding\\nperiod;\\n(d) where the loan which is the subject of the qualifying\\ninvestment is partially or fully repaid during the relevant\\nholding period;\\n(e) if all the share capital of the qualifying start‑up company is\\nacquired by a person or partnership other than the\\nqualifying person, or the qualifying start‑up company\\nmerges with or is consolidated with another company or is\\nwound up, at any time during a period of 2 years from the\\nrelevant date;\\n(f) [Deleted by Act 22 of 2011]\\n(g) if the qualifying start‑up company is not resident in\\nSingapore for the years of assessment relating to the basis\\nperiods falling within the relevant holding period; or\\n(h) the qualifying person has acquired more than 50% of the\\nissued share capital, or has provided more than 50% of the\\nIncome Tax Act 1947\\n771\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\ndebt capital, of the qualifying start‑up company at any time\\nduring the relevant holding period.\\n[2/2016]\\n(7) For the purpose of computing the aggregate amount of\\nexpenditure incurred by a qualifying person in respect of a\\nqualifying investment under subsection (5), where any of the\\nshares which are the subject of the qualifying investment are\\ndisposed of during the relevant holding period, no account is to be\\ntaken of such expenditure incurred by the qualifying person in\\nrelation to the shares that are disposed.\\n(8) The Minister or an authorised body may, subject to such\\nconditions as the Minister or authorised body may impose in a\\nparticular case, waive the requirement in subsection (6)(c), (d) or (e).\\n[Act 41 of 2020 wef 12/04/2024]\\n(9) Any amount of deduction for any year of assessment computed\\nfor a qualifying person in accordance with subsection (5) which is in\\nexcess of the remainder of the qualifying person’s statutory income\\n(excluding specified income) after making the deduction (if any)\\nunder section 37(3)(a) is not available as a deduction against the\\nqualifying person’s income for any subsequent year of assessment\\nand is disregarded.\\n(10) Where —\\n(a) a person disposes of, after 2 years from the relevant date,\\nthe shares which are the subject of a qualifying investment\\nin respect of which a deduction has been allowed to the\\nperson in any year of assessment under this section; and\\n(b) the gains or profits from the disposal of those shares is\\nchargeable to tax under this Act,\\nthe amount of expenditure for which a deduction is allowed to the\\nperson under this section in respect of those shares in any year of\\nassessment does not form part of the person’s costs of investment\\ndeductible under section 14 in computing the person’s gains or profits\\nfrom the disposal which is chargeable to tax.\\n(11) A qualifying person must maintain and deliver to the Minister\\nor an authorised body, in such form and manner and within such\\nIncome Tax Act 1947\\n2020 Ed.\\n772\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nreasonable time as the Minister or authorised body may determine,\\nthe relevant records of the qualifying investment made by the\\nqualifying person in any qualifying start‑up company and such other\\nparticulars as may be required for the purposes of this section.\\n[Act 41 of 2020 wef 12/04/2024]\\n(12) In this section —\\n“date of first investment”, in relation to a qualifying investment\\nby a qualifying person in a qualifying start‑up company,\\nmeans —\\n(a) unless paragraph (b) applies, the date on which a\\nqualifying investment is first made by the qualifying\\nperson in the qualifying start‑up company since the\\nqualifying person was approved as such under\\nsubsection (2); or\\n(b) if\\napproval\\nhas\\nbeen\\nobtained\\nunder\\nsubsection (4)(a)(ii) and the qualifying person has\\nmade at least one qualifying investment in the\\nqualifying start‑up company during the period\\nbetween 1 March 2010 and 30 June 2010 (both\\ndates\\ninclusive),\\nthe\\ndate\\nof\\nthat\\nqualifying\\ninvestment\\nor\\nthe\\nfirst\\nof\\nsuch\\nqualifying\\ninvestments;\\n“qualifying investment”, in relation to a qualifying start‑up\\ncompany, means —\\n(a) the acquisition using cash of —\\n(i) new shares not being of a preferential nature,\\nissued by the company;\\n(ii) new shares of a preferential nature issued by\\nthe\\ncompany\\nwhich\\ndo\\nnot\\nfall\\nwithin\\nsub‑paragraph (iii) and which do not provide\\nfor payment of a fixed or guaranteed dividend\\nfor the relevant holding period; or\\n(iii) new redeemable shares of a preferential nature\\nissued by the company which do not carry a\\nright to redemption during the relevant holding\\nIncome Tax Act 1947\\n773\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nperiod and which do not provide for payment of\\na fixed or guaranteed dividend for the relevant\\nholding period,\\n(a) other than shares which are issued pursuant to a stock\\noption or share award scheme or any conversion of\\nany loan or debt securities; or\\n(b) the provision of convertible loans of cash to the\\ncompany where there is no provision for interest\\npayment for the relevant holding period or loan\\nrepayment during the relevant holding period;\\n“qualifying start‑up company” means a company which is not\\none limited by guarantee and which —\\n(a) on the date of first investment, was incorporated in\\nSingapore for 3 years or less and whose shares are not\\nlisted on any stock exchange in Singapore or\\nelsewhere;\\n(b) on the date of first investment, does not have any\\nshareholder who is a relative of the qualifying person,\\nexcept that this requirement may be waived for the\\ncompany by the Minister or an authorised body;\\n[Act 41 of 2020 wef 12/04/2024]\\n(c) on the date of first investment, has more than 50% of\\nits total issued share capital beneficially held by no\\nmore than 20 individual shareholders (excluding any\\nqualifying person);\\n(d) has no more than 25% of its issued share capital or\\n25% of its debt capital beneficially held by the\\nqualifying person (including any of the qualifying\\nperson’s relatives) at any time within a period of\\n2 years prior to the date of first investment; and\\n(e) throughout the relevant holding period, does not\\nengage in any activity specified by the Minister or an\\nauthorised body for the purposes of this section;\\n[Act 41 of 2020 wef 12/04/2024]\\nIncome Tax Act 1947\\n2020 Ed.\\n774\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“relative”, in relation to any individual, means —\\n(a) his or her spouse;\\n(b) his or her children, stepchildren, grandchildren,\\nstepgrandchildren and their spouses;\\n(c) his or her parents, including step‑parents;\\n(d) his or her grandparents, including stepgrandparents;\\n(e) his\\nor\\nher\\nparents‑in‑law,\\nincluding\\nstepparents‑in‑law;\\n(f) his or her brother, stepbrother, sister, stepsister and\\ntheir spouses;\\n(g) his\\nor\\nher\\nspouse’s\\ngrandparents,\\nincluding\\nstepgrandparents;\\n(h) his or her spouse’s brother, stepbrother, sister,\\nstepsister and their spouses;\\n(i) his or her parent’s brother, stepbrother, sister,\\nstepsister and their spouses;\\n(j) his or her parent‑in‑law’s brother, stepbrother, sister,\\nstepsister and their spouses;\\n(k) the children of the brother, stepbrother, sister or\\nstepsister of his or her parent or step‑parent,\\nincluding stepchildren, and their spouses;\\n(l) the children of the brother, stepbrother, sister or\\nstepsister\\nof\\nhis\\nor\\nher\\nparent‑in‑law\\nor\\nstepparent‑in‑law, including stepchildren, and their\\nspouses;\\n(m) the children of his or her brother, stepbrother, sister or\\nstepsister, including stepchildren, and their spouses;\\nand\\n(n) the\\nchildren\\nof\\nhis\\nor\\nher\\nspouse’s\\nbrother,\\nstepbrother,\\nsister\\nor\\nstepsister,\\nincluding\\nstepchildren, and their spouses;\\nIncome Tax Act 1947\\n775\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“relevant date”, in relation to a qualifying person making a\\nqualifying investment in a qualifying start‑up company,\\nmeans —\\n(a) where\\nonly\\none\\nqualifying\\ninvestment\\nin\\nthe\\ncompany is made by the qualifying person in\\naccordance with subsection (4) — the date of first\\ninvestment; or\\n(b) where more than one qualifying investment in the\\ncompany is made by the qualifying person in\\naccordance with subsection (4) — the date on\\nwhich the last qualifying investment is made by the\\nqualifying person in that company within one year\\nafter the date of first investment;\\n“relevant holding period”, in relation to a qualifying person\\nmaking a qualifying investment in a qualifying start‑up\\ncompany, means the period commencing from the date of\\nfirst investment in the qualifying start‑up company to the end\\nof the 2‑year period from the relevant date;\\n“specified income” means any income of the qualifying person\\nnot resident in Singapore which is subject to tax at the rate\\nspecified in section 43(3), (3A) or (4)(a).\\n[37/2014; 41/2020]\\n(13) In the definition of “relative” in subsection (12), relationships\\nthat may be established by blood may also be established by adoption\\nin accordance with any written law relating to the adoption of\\nchildren.\\n(14) In this section, a qualifying investment is made when —\\n(a) in the case of an acquisition of shares in paragraph (a) of\\nthe\\ndefinition\\nof\\n“qualifying\\ninvestment”\\nin\\nsubsection (12), the consideration for the shares is paid; or\\n(b) in the case of a provision of a convertible loan in\\nparagraph\\n(b)\\nof\\nthe\\ndefinition\\nof\\n“qualifying\\ninvestment” in subsection (12), the loan is disbursed.\\n[37K\\nIncome Tax Act 1947\\n2020 Ed.\\n776\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nDeduction for acquisition of shares of companies\\n37O.—(1) Subject to this section, where —\\n(a) a Singapore company (called in this section the acquiring\\ncompany);\\n(b) any one or more subsidiaries of the Singapore company\\nthat is or are wholly‑owned by the Singapore company, and\\nis incorporated for the primary purpose of acquiring and\\nholding shares in other companies (called in this section\\nthe acquiring subsidiary); or\\n(c) both the acquiring company and any one or more acquiring\\nsubsidiaries,\\nincurs or incur capital expenditure during the period from 1 April\\n2010 to 31 December 2025 (both dates inclusive) for any qualifying\\nacquisition of ordinary shares in another company (called in this\\nsection the target company), the acquiring company may claim the\\ndeductions specified in subsection (1A), in accordance with this\\nsection.\\n[2/2016; 41/2020]\\n(1A) The deductions for the purposes of subsection (1) are as\\nfollows:\\n(a) a deduction for the capital expenditure referred to in that\\nsubsection; and\\n(b) a deduction of an amount equivalent to twice the amount of\\ntransaction costs incurred for qualifying acquisitions made\\nduring the period from 17 February 2012 to 31 December\\n2025 (both dates inclusive).\\n[2/2016; 41/2020]\\n(2) Any claim for deduction under this section must be made at the\\ntime of lodgment of the return of income for the year of assessment\\nrelating to the basis period of the acquiring company in which the\\ncapital expenditure is incurred or within such further time as the\\nComptroller may allow.\\n(3) For the purposes of subsections (1) and (2), capital expenditure\\nfor an acquisition of ordinary shares in a target company is treated as\\nbeing incurred on the date of the acquisition of those shares.\\nIncome Tax Act 1947\\n777\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nQualifying acquisitions\\n(4) In this section, a qualifying acquisition of ordinary shares in a\\ntarget company by an acquiring company or an acquiring subsidiary\\nis any of the following:\\n(a) an acquisition made during the period from 1 April 2010 to\\n31 March 2015 (both dates inclusive) that results in the\\nacquiring company and its acquiring subsidiaries owning\\ntogether in total more than 50% of the total number of\\nordinary shares in the target company where, before the\\ndate of the acquisition, such total ownership was 50% or\\nless of the total number of ordinary shares in the target\\ncompany;\\n(b) any other acquisition the date of which falls in the same\\nbasis period of the acquiring company as that of the\\nacquisition mentioned in paragraph (a);\\n(c) an acquisition made during the period from 1 April 2010 to\\n31 March 2015 (both dates inclusive) that results in the\\nacquiring company and its acquiring subsidiaries owning\\ntogether in total 75% or more of the total number of\\nordinary shares in the target company where —\\n(i) before the date of the acquisition, such total\\nownership was more than 50% but less than\\n75% of the total number of ordinary shares in the\\ntarget company; and\\n(ii) the date of the acquisition does not fall in the same\\nbasis period of the acquiring company as the date of\\nthe acquisition mentioned in paragraph (a);\\n(d) any other acquisition the date of which falls in the same\\nbasis period of the acquiring company as that of the\\nacquisition mentioned in paragraph (c) and is before\\n1 April 2016,\\nprovided that at the end of that basis period of the acquiring company,\\nsuch total ownership is more than 50% (in the case of paragraphs (a)\\nIncome Tax Act 1947\\n2020 Ed.\\n778\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nand (b)) or 75% or more (in the case of paragraphs (c) and (d)) of the\\ntotal number of ordinary shares in the target company.\\n[2/2016]\\n(4A) In this section, and subject to the applicable condition in\\nsubsection (4B) being met, each of the following is also a qualifying\\nacquisition of ordinary shares in a target company by an acquiring\\ncompany or an acquiring subsidiary:\\n(a) an acquisition made during the period from 1 April 2015 to\\n31 December 2025 (both dates inclusive) that results in the\\nacquiring company and its acquiring subsidiaries owning\\ntogether in total 20% or more but 50% or less of the total\\nnumber of ordinary shares in the target company, where —\\n(i) before the date of the acquisition, such total\\nownership was less than 20% of the total number\\nof ordinary shares in the target company; and\\n(ii) the date of the acquisition does not fall in the same\\nbasis period of the acquiring company as the date of\\nthe acquisition mentioned in paragraph (c);\\n(b) any other acquisition made during the period from 1 April\\n2015 to 31 December 2025 (both dates inclusive) the date\\nof which falls in the same basis period of the acquiring\\ncompany\\nas\\nthat\\nof\\nthe\\nacquisition\\nmentioned\\nin\\nparagraph (a);\\n(c) an acquisition made during the period from 1 April 2015 to\\n31 December 2025 (both dates inclusive) that results in the\\nacquiring company and its acquiring subsidiaries owning\\ntogether in total more than 50% of the total number of\\nordinary shares in the target company where, before the\\ndate of the acquisition, such total ownership was 50% or\\nless of the total number of ordinary shares in the target\\ncompany;\\n(d) any other acquisition the date of which falls in the same\\nbasis period of the acquiring company as that of the\\nacquisition mentioned in paragraph (c);\\nIncome Tax Act 1947\\n779\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(e) an acquisition made on or after 1 April 2015 but before\\n1 April 2016 that results in the acquiring company and its\\nacquiring subsidiaries owning together in total 75% or\\nmore of the total number of ordinary shares in the target\\ncompany where —\\n(i) before the date of the acquisition, such total\\nownership was more than 50% but less than\\n75% of the total number of ordinary shares in the\\ntarget company;\\n(ii) the date of the acquisition does not fall in the same\\nbasis period of the acquiring company as the date of\\nthe acquisition mentioned in paragraph (c); and\\n(iii) before 1 April 2015 and not earlier than 12 months\\nbefore the acquisition, the acquiring company or its\\nacquiring subsidiary had made an acquisition of\\nordinary shares of any amount in the target company;\\n(f) any other acquisition the date of which falls in the same\\nbasis period of the acquiring company as that of the\\nacquisition mentioned in paragraph (e) and is before\\n1 April 2016.\\n[2/2016; 41/2020]\\n(4B) In subsection (4A), the conditions are —\\n(a) in the case of paragraphs (a) and (b) of that subsection, at\\nthe end of that basis period of the acquiring company, the\\ntotal ownership of ordinary shares in the target company\\nmentioned in paragraph (a) of that subsection is between\\n20% and 50% (both inclusive);\\n(b) in the case of paragraphs (c) and (d) of that subsection, at\\nthe end of that basis period of the acquiring company, the\\ntotal ownership of ordinary shares in the target company\\nmentioned in paragraph (c) of that subsection is more than\\n50%; or\\n(c) in the case of paragraphs (e) and (f) of that subsection, at\\nthe end of that basis period of the acquiring company, the\\ntotal ownership of ordinary shares in the target company\\nIncome Tax Act 1947\\n2020 Ed.\\n780\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nmentioned in paragraph (e) of that subsection is 75% or\\nmore.\\n[2/2016]\\n(5) An acquiring company may elect for its qualifying acquisitions\\nto be, instead of those mentioned in the provisions in the first column\\nof the following table, acquisitions —\\n(a) the dates of which fall within a prescribed period; and\\n(b) which include an acquisition mentioned in the provisions\\nset out opposite in the second column of the table,\\nand the provisions of this section apply to the acquisitions so elected\\nsubject to such modifications as may be prescribed:\\nOriginal acquisitions\\nunder:\\nElected acquisitions to\\ninclude an acquisition\\nunder:\\nsubsection (4)(a) and (b), or\\nsubsection (4)(c) and (d)\\nsubsection (4)(a) or (c)\\nsubsection (4A)(c) and (d), or\\nsubsection (4A)(e) and (f)\\nsubsection (4A)(c) or (e)\\n[2/2016]\\n(5A) The election under subsection (5) may only be made for\\nacquisitions made during the period from 1 April 2010 to 31 March\\n2016 (both dates inclusive).\\n[2/2016]\\n(6) The election under subsection (5) must be made by the\\nacquiring company at the time of lodgment of the return of its\\nincome for the year of assessment relating to the basis period of the\\nacquiring company in which the date of the acquisition mentioned in\\nsubsection (4)(a) or (c) or subsection (4A)(c) or (e) (as the case may\\nbe) falls, or within such further time as the Comptroller may allow.\\n[2/2016]\\nDeductions allowable in respect of capital expenditure claimed\\n(7) For\\nthe\\npurpose\\nof\\nsubsection\\n(1)\\nand\\nsubject\\nto\\nsubsections (11), (11A), (11AB), (11B), (11C) and (19) and the\\nIncome Tax Act 1947\\n781\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nregulations made under subsection (24), deductions in respect of\\ncapital expenditure for a qualifying acquisition of ordinary shares in a\\ntarget company by an acquiring company or an acquiring subsidiary\\n(as the case may be) are to be allowed as follows:\\n(a) to the extent the capital expenditure is not contingent\\nconsideration or, if it is contingent consideration, is\\nincurred in the same basis period of the acquiring\\ncompany as that in which the date of the acquisition of\\nthe shares falls, the deduction allowed is the amount\\nspecified in subsection (8) for acquisitions mentioned in\\nsubsection (4), and the amount specified in subsection (8A)\\nfor acquisitions mentioned in subsection (4A), for each of\\n5 successive years of assessment (called in this section the\\n1st,\\n2nd,\\n3rd,\\n4th\\nand\\n5th\\nyears\\nof\\nassessment,\\nrespectively), beginning with the year of assessment\\nrelating to the basis period of the acquiring company in\\nwhich the date of the acquisition of the shares falls;\\n(b) to the extent the capital expenditure is contingent\\nconsideration that is incurred in a basis period of the\\nacquiring company after the basis period of the acquiring\\ncompany for the 1st year of assessment, the deduction\\nallowed is —\\n(i) where the contingent consideration is incurred in the\\nbasis period of the acquiring company for the 2nd,\\n3rd or 4th year of assessment, the amount specified\\nin subsection (9) for acquisitions mentioned in\\nsubsection\\n(4),\\nand\\nthe\\namount\\nspecified\\nin\\nsubsection (9A) for acquisitions mentioned in\\nsubsection (4A), for that year of assessment and\\nfor each successive year of assessment up to and\\nincluding the 5th year of assessment; or\\n(ii) where the contingent consideration is incurred in the\\nbasis period of the acquiring company for the\\n5th year of assessment or a subsequent year of\\nassessment, the amount specified in subsection (10)\\nfor acquisitions mentioned in subsection (4), and the\\nIncome Tax Act 1947\\n2020 Ed.\\n782\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\namount\\nspecified\\nin\\nsubsection\\n(10A)\\nfor\\nacquisitions mentioned in subsection (4A), for that\\nyear of assessment.\\n[2/2016; 34/2016]\\n(8) Subject to subsections (13) and (19), the amount referred to in\\nsubsection (7)(a) for an acquisition mentioned in subsection (4) is\\ncalculated in accordance with the formula\\n0:05 \\u0003 A\\n5\\n;\\nwhere A is the capital expenditure to the extent that it is not\\ncontingent\\nconsideration\\nor,\\nif\\nit\\nis\\ncontingent\\nconsideration, is incurred in the same basis period of\\nthe acquiring company as that in which the date of the\\nacquisition of the shares falls.\\n[2/2016]\\n(8A) Subject to subsections (13) and (19), the amount referred to in\\nsubsection (7)(a) for an acquisition mentioned in subsection (4A) is\\ncalculated in accordance with the formula\\n0:25 \\u0003 A\\n5\\n;\\nwhere A is the capital expenditure to the extent that it is not\\ncontingent\\nconsideration\\nor,\\nif\\nit\\nis\\ncontingent\\nconsideration, is incurred in the same basis period of\\nthe acquiring company as that in which the date of the\\nacquisition of the shares falls.\\n[2/2016]\\n(9) Subject to subsections (13) and (19), the amount mentioned in\\nsubsection (7)(b)(i) for an acquisition mentioned in subsection (4) is\\ncalculated in accordance with the formula\\n0:05 \\u0003 B\\n6 \\u0001 C\\n;\\nIncome Tax Act 1947\\n783\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nwhere B is the contingent consideration that is incurred in the\\nbasis period of the acquiring company for the 2nd, 3rd or\\n4th year of assessment, whichever is applicable; and\\nC is —\\n(a) 2 (where the contingent consideration is incurred in\\nthe basis period of the acquiring company for the\\n2nd year of assessment);\\n(b) 3 (where the contingent consideration is incurred in\\nthe basis period of the acquiring company for the\\n3rd year of assessment); or\\n(c) 4 (where the contingent consideration is incurred in\\nthe basis period of the acquiring company for the\\n4th year of assessment),\\nwhichever is applicable.\\n[2/2016]\\n(9A) Subject to subsections (13) and (19), the amount mentioned in\\nsubsection (7)(b)(i) for an acquisition mentioned in subsection (4A)\\nis calculated in accordance with the formula\\n0:25 \\u0003 B\\n6 \\u0001 C\\n;\\nwhere B is the contingent consideration that is incurred in the basis\\nperiod of the acquiring company for the 2nd, 3rd or\\n4th year of assessment, whichever is applicable; and\\nC is —\\n(a) 2 (where the contingent consideration is incurred in\\nthe basis period of the acquiring company for the\\n2nd year of assessment);\\n(b) 3 (where the contingent consideration is incurred in\\nthe basis period of the acquiring company for the\\n3rd year of assessment); or\\nIncome Tax Act 1947\\n2020 Ed.\\n784\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) 4 (where the contingent consideration is incurred in\\nthe basis period of the acquiring company for the\\n4th year of assessment),\\nwhichever is applicable.\\n[2/2016]\\n(10) Subject to subsections (13) and (19), the amount mentioned in\\nsubsection (7)(b)(ii) for an acquisition mentioned in subsection (4) is\\ncalculated in accordance with the formula\\n0:05 \\u0003 D;\\nwhere D is the contingent consideration that is incurred in the basis\\nperiod of the acquiring company for the 5th year of\\nassessment or the subsequent year of assessment,\\nwhichever is applicable.\\n[2/2016]\\n(10A) Subject to subsections (13) and (19), the amount mentioned\\nin\\nsubsection\\n(7)(b)(ii)\\nfor\\nan\\nacquisition\\nmentioned\\nin\\nsubsection (4A) is calculated in accordance with the formula\\n0:25 \\u0003 D;\\nwhere D is the contingent consideration that is incurred in the\\nbasis period of the acquiring company for the 5th year\\nof assessment or the subsequent year of assessment,\\nwhichever is applicable.\\n[2/2016]\\n(11) The following provisions apply in determining the amount of\\ndeductions under subsection (7) to be allowed to the acquiring\\ncompany for all qualifying acquisitions of ordinary shares in one or\\nmore target companies whose dates of acquisition fall within one\\nbasis period of the acquiring company:\\n(a) where the aggregate of the amounts of “A” mentioned in\\nsubsection (8) in respect of all such qualifying acquisitions\\nexceeds $100 million, the amount by which the aggregate\\nIncome Tax Act 1947\\n785\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nexceeds $100 million is disregarded for the purposes of the\\ndeduction to be allowed under this section;\\n(b) where the aggregate mentioned in paragraph (a) does not\\nexceed $100 million but the aggregate of the following\\nexceeds $100 million:\\n(i) the aggregate mentioned in paragraph (a);\\n(ii) the aggregate of all contingent consideration in\\nrespect of all such qualifying acquisitions incurred\\nin the basis period of the acquiring company for any\\nyear of assessment subsequent to the 1st year of\\nassessment and in any earlier year of assessment\\nother than the 1st year of assessment,\\n(b) the amount by which the aggregate of sub‑paragraphs (i)\\nand (ii) exceeds $100 million is to be disregarded for the\\npurposes of the deduction to be allowed under this section.\\n(11A) The\\nfollowing\\nprovisions\\napply\\nfor\\nthe\\npurpose\\nof\\ndetermining the amount of deductions under subsection (7) to be\\nallowed to the acquiring company for all qualifying acquisitions of\\nordinary shares in one or more target companies whose dates of\\nacquisition fall within one basis period of the acquiring company, and\\nare qualifying acquisitions referred to in subsection (11AA):\\n(a) where the sum of the amounts of “A” mentioned in\\nsubsection\\n(8A)\\nin\\nrespect\\nof\\nall\\nsuch\\nqualifying\\nacquisitions exceeds $20 million, the amount by which\\nthe sum exceeds $20 million is to be disregarded for the\\npurposes of the deduction to be allowed under this section;\\n(b) where the sum mentioned in paragraph (a) does not exceed\\n$20 million but the sum of the following exceeds\\n$20 million:\\n(i) the sum mentioned in paragraph (a);\\n(ii) the sum of all contingent consideration in respect of\\nall such qualifying acquisitions incurred in the basis\\nperiod of the acquiring company for any year of\\nassessment subsequent to the 1st year of assessment\\nIncome Tax Act 1947\\n2020 Ed.\\n786\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nand in any earlier year of assessment other than the\\n1st year of assessment,\\n(b) the amount by which the sum of sub‑paragraphs (i) and (ii)\\nexceeds $20 million is to be disregarded for the purposes of\\nthe deduction to be allowed under this section.\\n[2/2016; 34/2016]\\n(11AA) Subsection (11A) applies to the following qualifying\\nacquisitions:\\n(a) a qualifying acquisition made before 1 April 2016 except\\n(if the qualifying acquisitions in that basis period include\\nan acquisition mentioned in subsection (4A)(a) or (c)\\n(called in this paragraph the anchor acquisition) that is\\nmade on or after 1 April 2016) a qualifying acquisition\\nmentioned in subsection (4A)(b) or (d) (as the case may be)\\nthat has the same target company as that of the anchor\\nacquisition;\\n(b) if the qualifying acquisitions in that basis period include an\\nacquisition mentioned in subsection (4A)(a) or (c) (called\\nin this paragraph the anchor acquisition) that is made\\nbefore 1 April 2016, a qualifying acquisition mentioned in\\nsubsection (4A)(b) or (d) (as the case may be) made on or\\nafter 1 April 2016 that has the same target company as the\\nanchor acquisition.\\n[34/2016]\\n(11AB) The following provisions apply for the purpose of\\ndetermining the amount of deductions under subsection (7) to be\\nallowed to the acquiring company for all qualifying acquisitions of\\nordinary shares in one or more target companies whose dates of\\nacquisition fall within one basis period of the acquiring company, and\\nare qualifying acquisitions mentioned in subsection (11AC):\\n(a) where the sum of the amounts of “A” mentioned in\\nsubsection\\n(8A)\\nin\\nrespect\\nof\\nall\\nsuch\\nqualifying\\nacquisitions exceeds $40 million, the amount by which\\nthe sum exceeds $40 million is to be disregarded for the\\npurposes of the deduction to be allowed under this section;\\nIncome Tax Act 1947\\n787\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) where the sum mentioned in paragraph (a) does not exceed\\n$40 million but the sum of the following exceeds\\n$40 million:\\n(i) the sum mentioned in paragraph (a);\\n(ii) the sum of all contingent consideration in respect of\\nall such qualifying acquisitions incurred in the basis\\nperiod of the acquiring company for any year of\\nassessment subsequent to the first year of assessment\\nand in any earlier year of assessment other than the\\nfirst year of assessment,\\n(b) the amount by which the sum of sub‑paragraphs (i) and (ii)\\nexceeds $40 million is to be disregarded for the purposes of\\nthe deduction to be allowed under this section.\\n[34/2016]\\n(11AC) Subsection (11AB) applies to the following qualifying\\nacquisitions:\\n(a) a qualifying acquisition made on or after 1 April 2016\\nexcept (if the qualifying acquisitions in that basis period\\ninclude an acquisition mentioned in subsection (4A)(a) or\\n(c) (called in this paragraph the anchor acquisition) that is\\nmade before 1 April 2016) a qualifying acquisition\\nmentioned in subsection (4A)(b) or (d) (as the case may\\nbe) that has the same target company as the anchor\\nacquisition;\\n(b) if the qualifying acquisitions in that basis period include an\\nacquisition mentioned in subsection (4A)(a) or (c) (called\\nin this paragraph the anchor acquisition) that is made on or\\nafter 1 April 2016, a qualifying acquisition mentioned in\\nsubsection (4A)(b) or (d) (as the case may be) made before\\n1 April 2016 that has the same target company as the\\nanchor acquisition.\\n[34/2016]\\n(11B) Despite subsections (11) and (11A), the following provisions\\napply in determining the amount of deductions under subsection (7)\\nto be allowed to the acquiring company for all qualifying acquisitions\\nof ordinary shares in target companies whose dates of acquisition fall\\nIncome Tax Act 1947\\n2020 Ed.\\n788\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nwithin one basis period of the acquiring company, if the qualifying\\nacquisitions in that basis period include at least one acquisition\\nmentioned in subsection (4)(a) or (c), and at least one acquisition\\nmentioned in subsection (4A)(a), (c) or (e) that is made before 1 April\\n2016,\\nbut\\ndoes\\nnot\\ninclude\\nany\\nacquisition\\nmentioned\\nin\\nsubsection (4A)(a) or (c) that is made on or after 1 April 2016:\\n(a) where the sum of the following exceeds $5 million:\\n(i) the amount determined by the formula “0.05 × A” in\\nsubsection (8) in respect of those acquisitions which\\nare acquisitions mentioned in subsection (4);\\n(ii) the amount determined by the formula “0.25 × A” in\\nsubsection (8A) in respect of those acquisitions\\nwhich are acquisitions mentioned in subsection (4A),\\n(a) the excess is to be disregarded for the purposes of the\\ndeduction to be allowed under this section;\\n(b) where the sum mentioned in paragraph (a) does not exceed\\n$5 million but the sum of the following exceeds $5 million:\\n(i) the sum mentioned in paragraph (a);\\n(ii) the amount determined by the formula “0.05 × B” in\\nsubsection (9) in respect of those acquisitions which\\nare acquisitions mentioned in subsection (4);\\n(iii) the amount determined by the formula “0.25 × B” in\\nsubsection (9A) in respect of those acquisitions\\nwhich are acquisitions mentioned in subsection (4A);\\n(iv) the amount determined by the formula “0.05 × D” in\\nsubsection (10) in respect of those acquisitions\\nwhich are acquisitions mentioned in subsection (4);\\n(v) the amount determined by the formula “0.25 × D” in\\nsubsection (10A) in respect of those acquisitions\\nwhich are acquisitions mentioned in subsection (4A),\\n(b) the excess is to be disregarded for the purposes of the\\ndeduction to be allowed under this section.\\n[2/2016; 34/2016]\\nIncome Tax Act 1947\\n789\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(11C) Despite subsections (11), (11A) and (11AB), the following\\nprovisions apply in determining the amount of deductions under\\nsubsection (7) to be allowed to the acquiring company for all\\nqualifying acquisitions of ordinary shares in target companies whose\\ndates of acquisition fall within one basis period of the acquiring\\ncompany, if the qualifying acquisitions in that basis period include at\\nleast one acquisition mentioned in subsection (4)(a) or (c) or\\nsubsection (4A)(a), (c) or (e) that is made before 1 April 2016, and\\nat least one acquisition mentioned in subsection (4A)(a) and (c) that is\\nmade on or after 1 April 2016:\\n(a) where\\nthe\\nsum\\nof\\nthe\\nfollowing\\n(called\\nin\\nthis\\nsubsection X) exceeds $5 million:\\n(i) the sum of the amounts determined by the following\\nformulae in respect of those acquisitions which are\\nacquisitions mentioned in subsection (4):\\n(A) “0.05 × A” in subsection (8);\\n(B) “0.05 × B” in subsection (9);\\n(C) “0.05 × D” in subsection (10);\\n(ii) the sum of the amounts determined by the following\\nformulae in respect of those acquisitions which are\\nacquisitions mentioned in subsection (11AA):\\n(A) “0.25 × A” in subsection (8A);\\n(B) “0.25 × B” in subsection (9A);\\n(C) “0.25 × D” in subsection (10A),\\n(a) the excess is to be disregarded for the purposes of the\\ndeduction to be allowed under this section in respect of\\nthose acquisitions;\\n(b) where the sum of the amounts (called in this subsection Y)\\ndetermined by the following formulae in respect of those\\nacquisitions\\nwhich\\nare\\nacquisitions\\nmentioned\\nin\\nsubsection (11AC):\\n(i) “0.25 × A” in subsection (8A);\\n(ii) “0.25 × B” in subsection (9A);\\nIncome Tax Act 1947\\n2020 Ed.\\n790\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(iii) “0.25 × D” in subsection (10A);\\n(b) exceeds $10 million, the excess is to be disregarded for the\\npurposes of the deduction to be allowed under this section\\nin respect of those acquisitions;\\n(c) despite paragraphs (a) and (b), where the sum of X and Y\\nexceeds $10 million, the excess is to be disregarded for the\\npurposes of the deduction to be allowed under this section\\nfor all of the acquisitions mentioned in those paragraphs.\\n[34/2016]\\n(12) For the purposes of subsections (8), (8A), (9), (9A), (10),\\n(10A), (11), (11A), (11B) and (11C), the amount of any consideration\\npaid for any qualifying acquisition that comprises shares in the\\nacquiring company, is the market value of the shares in the acquiring\\ncompany as at the date of the acquisition of the shares and, if it is not\\npossible to determine such value, the net asset value of those shares in\\nthe acquiring company at the end of its accounting period\\nimmediately before the date of the acquisition of those shares.\\n[2/2016; 34/2016]\\n(13) Despite subsections (8), (8A), (9), (9A), (10) and (10A), where\\nany amount of “A” referred to in subsection (8) or (8A), “B” referred\\nto in subsection (9) or (9A), or “D” referred to in subsection (10) or\\n(10A), that is paid by the acquiring company or the acquiring\\nsubsidiary (as the case may be) in respect of any qualifying\\nacquisition is greater than the amount which would have been paid\\nif the acquiring company or the acquiring subsidiary (as the case may\\nbe) were not a related party of any of the shareholders in the target\\ncompany, the firstmentioned amount is substituted with the\\nsecond‑mentioned\\namount,\\nand\\nany\\nquestion\\nregarding\\nthe\\nquantum of the second‑mentioned amount is to be determined by\\nthe Comptroller.\\n[2/2016]\\n[Act 33 of 2022 wef 04/11/2022]\\n(14) A deduction under this section to an acquiring company must\\nbe made against the balance of its statutory income after the\\ndeductions allowed under sections 37(3), 37A and 37F.\\n(15) Section 14C(4) and (5) applies in relation to the deduction to\\nbe allowed in this section, as it applies in relation to the deduction of\\nIncome Tax Act 1947\\n791\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthe expenditure and payments referred to in section 14C(1)(aa), (c)\\nand (f), subject to the following modifications:\\n(a) a reference to the amount of the expenditure or payments\\n(after deducting any amount in respect of which an election\\nfor a cash payout has been made under section 37G or 37R)\\nis a reference to the deduction to be allowed in this section;\\n[Act 30 of 2023 wef 30/10/2023]\\n(b) a reference to a specified amount of the expenditure or\\npayments in section 14C(4) is a reference to an amount\\ncomputed in accordance with the formula\\nE \\u0003 F\\nG\\n;\\nwhere E is the deduction to be allowed in this section;\\nF is the rate of tax specified in section 43(1)(a); and\\nG is —\\n(i) in a case where the concessionary income (as\\ndefined in section 14C(5)) derived by the person\\nfrom the trade or business carried on by the person is\\nsubject to tax at a single concessionary rate of tax,\\nthat rate; or\\n(ii) in a case where the concessionary income derived by\\nthe person from the trade or business carried on by\\nthe\\nperson\\nis\\nsubject\\nto\\ntax\\nat\\n2\\nor\\nmore\\nconcessionary rates of tax, the higher or highest of\\nthose rates.\\nDeductions allowable in respect of transaction costs claimed\\n(15A) For the purpose of subsection (1), a deduction in respect of\\ntransaction costs for qualifying acquisitions of ordinary shares in a\\ntarget company is subject to the following:\\n(a) the deduction in relation to any transaction costs incurred\\nmust be allowed for —\\nIncome Tax Act 1947\\n2020 Ed.\\n792\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(i) the year of assessment in which a claim is first made\\nfor the deduction allowable in respect of the capital\\nexpenditure incurred on the qualifying acquisition to\\nwhich those transaction costs relate; or\\n(ii) the year of assessment which relates to the basis\\nperiod in which those transaction costs are incurred,\\n(a) whichever is the later; and\\n(b) the deduction is subject to a limit of $100,000 in\\ntransaction costs incurred in relation to all qualifying\\nacquisitions of ordinary shares in all target companies\\n(whether by the acquiring company, or by one or more of\\nits acquiring subsidiaries, or by a combination of both) for\\nwhich claims are first made in the year of assessment\\nmentioned in paragraph (a)(i) for the deductions allowable\\nin respect of the capital expenditure incurred on those\\nacquisitions.\\nConditions for deductions\\n(16) A deduction under this section for a qualifying acquisition\\n(called the subject acquisition) may be made to an acquiring company\\nfor any year of assessment only if —\\n(a) where the subject acquisition is one mentioned in\\nsubsection (4)(a) or (c) or (4A)(c) or (e) —\\n(i) the acquiring company satisfies the conditions in\\nsubsection (16A);\\n(ii) where the subject acquisition is made by an acquiring\\nsubsidiary, the acquiring subsidiary satisfies the\\nconditions in subsection (16B);\\n(iii) where the subject acquisition is made by an acquiring\\nsubsidiary and, on the date of the acquisition (being a\\ndate on or after 17 February 2012), the acquiring\\nsubsidiary is indirectly owned by the acquiring\\ncompany\\nthrough\\none\\nor\\nmore\\nintermediate\\ncompanies,\\nevery\\nsuch\\nintermediate\\ncompany\\nsatisfies the conditions in subsection (16C); and\\nIncome Tax Act 1947\\n793\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(iv) the target company, or a subsidiary that is —\\n(A) if the date of the subject acquisition is before\\n17 February 2012, wholly‑owned by the target\\ncompany directly; or\\n(B) if the date of the subject acquisition is on or\\nafter 17 February 2012, wholly‑owned by the\\ntarget company whether directly or indirectly,\\n(iv) satisfies the conditions in subsection (16D);\\n(b) where the subject acquisition is one mentioned in\\nsubsection (4)(b) or (d) or (4A)(d) or (f) —\\n(i) the acquiring company satisfies the conditions in\\nsubsection (16A);\\n(ii) where the subject acquisition is made by an acquiring\\nsubsidiary, the acquiring subsidiary satisfies the\\nconditions in subsection (16B);\\n(iii) where the subject acquisition is made by an acquiring\\nsubsidiary and, on the date of the acquisition (being a\\ndate on or after 17 February 2012), the acquiring\\nsubsidiary is indirectly owned by the acquiring\\ncompany\\nthrough\\none\\nor\\nmore\\nintermediate\\ncompanies,\\nevery\\nsuch\\nintermediate\\ncompany\\nsatisfies the conditions in subsection (16C);\\n(iv) the target company, or a subsidiary that is —\\n(A) if the date of the acquisition is before\\n17 February 2012, wholly‑owned by the\\ntarget company directly; or\\n(B) if the date of the acquisition is on or after\\n17 February 2012, wholly‑owned by the target\\ncompany whether directly or indirectly,\\n(iv) satisfies the conditions in subsection (16D); and\\n(v) the conditions in paragraph (a) are also satisfied in\\nrelation to —\\nIncome Tax Act 1947\\n2020 Ed.\\n794\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(A) where the subject acquisition is one mentioned\\nin subsection (4)(b) — a qualifying acquisition\\nmentioned in subsection (4)(a);\\n(B) where the subject acquisition is one mentioned\\nin subsection (4)(d) — a qualifying acquisition\\nmentioned in subsection (4)(c);\\n(C) where the subject acquisition is one mentioned\\nin\\nsubsection\\n(4A)(d)\\n—\\na\\nqualifying\\nacquisition mentioned in subsection (4A)(c); or\\n(D) where the subject acquisition is one mentioned\\nin\\nsubsection\\n(4A)(f)\\n—\\na\\nqualifying\\nacquisition mentioned in subsection (4A)(e);\\n(c) where the subject acquisition is one mentioned in\\nsubsection (4A)(a) —\\n(i) the acquiring company satisfies the conditions in\\nsubsection (16A);\\n(ii) where the subject acquisition is made by an acquiring\\nsubsidiary, the acquiring subsidiary satisfies the\\nconditions in subsection (16B);\\n(iii) where the subject acquisition is made by an acquiring\\nsubsidiary and, on the date of the acquisition, the\\nacquiring subsidiary is indirectly owned by the\\nacquiring\\ncompany\\nthrough\\none\\nor\\nmore\\nintermediate companies, every such intermediate\\ncompany\\nsatisfies\\nthe\\nconditions\\nin\\nsubsection (16C);\\n(iv) the\\ntarget\\ncompany,\\nor\\na\\nsubsidiary\\nthat\\nis\\nwholly‑owned by the target company whether\\ndirectly or indirectly, satisfies the conditions in\\nsubsection (16D); and\\n(v) the conditions prescribed under subsection (16E) are\\nsatisfied; and\\n(d) where the subject acquisition is one mentioned in\\nsubsection (4A)(b) —\\nIncome Tax Act 1947\\n795\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(i) the acquiring company satisfies the conditions in\\nsubsection (16A);\\n(ii) where the subject acquisition is made by an acquiring\\nsubsidiary, the acquiring subsidiary satisfies the\\nconditions in subsection (16B);\\n(iii) where the subject acquisition is made by an acquiring\\nsubsidiary and, on the date of the acquisition, the\\nacquiring subsidiary is indirectly owned by the\\nacquiring\\ncompany\\nthrough\\none\\nor\\nmore\\nintermediate companies, every such intermediate\\ncompany\\nsatisfies\\nthe\\nconditions\\nin\\nsubsection (16C);\\n(iv) the\\ntarget\\ncompany,\\nor\\na\\nsubsidiary\\nthat\\nis\\nwholly‑owned by the target company whether\\ndirectly or indirectly, satisfies the conditions in\\nsubsection (16D);\\n(v) the conditions prescribed under subsection (16E) are\\nsatisfied; and\\n(vi) the conditions in paragraph (c) are also satisfied in\\nrelation to a qualifying acquisition mentioned in\\nsubsection (4A)(a).\\n[2/2016]\\n(16A) The conditions in subsection (16)(a)(i), (b)(i), (c)(i) and\\n(d)(i) are —\\n(a) the acquiring company is carrying on a trade or business in\\nSingapore on the date of the acquisition of the shares;\\n(b) the acquiring company has in its employment at least\\n3 local employees at all times during the period of\\n12 months immediately before that date;\\n(c) unless otherwise prescribed under subsection (24), the\\nacquiring company is not connected to the target company\\nfor at least 2 years immediately before that date; and\\nIncome Tax Act 1947\\n2020 Ed.\\n796\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(d) in a case where the acquiring company is a subsidiary of\\nanother company, the acquiring company has a Singapore\\ncompany as its ultimate holding company on that date.\\n[2/2016]\\n[Act 33 of 2022 wef 04/11/2022]\\n(16B) The conditions in subsection (16)(a)(ii), (b)(ii), (c)(ii) and\\n(d)(ii) are —\\n(a) the acquiring subsidiary does not carry on a trade or\\nbusiness in Singapore or elsewhere on the date of the\\nacquisition of the shares;\\n(b) the acquiring subsidiary does not claim any deduction for\\nany capital expenditure or transaction costs under this\\nsection for that year of assessment or any stamp duty relief\\nunder section 15A of the Stamp Duties Act 1929; and\\n(c) the acquiring subsidiary is on that date wholly‑owned by\\nthe acquiring company —\\n(i) directly, in the case of subsection (16)(a)(ii) or (b)(ii)\\nwhere the date of the qualifying acquisition is before\\n17 February 2012; and\\n(ii) whether directly or indirectly, in every other case.\\n[2/2016]\\n(16C) The conditions in subsection (16)(a)(iii), (b)(iii), (c)(iii) and\\n(d)(iii) are —\\n(a) the intermediate company is wholly‑owned (whether\\ndirectly or indirectly) by the acquiring company on the\\ndate of the acquisition of the shares;\\n(b) the intermediate company is incorporated for the primary\\npurpose\\nof\\nacquiring\\nand\\nholding\\nshares\\nin\\nother\\ncompanies;\\n(c) the intermediate company does not carry on a trade or\\nbusiness in Singapore or elsewhere on that date; and\\n(d) the intermediate company does not claim any deduction for\\nany capital expenditure or transaction costs under this\\nIncome Tax Act 1947\\n797\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nsection for that year of assessment or any stamp duty relief\\nunder section 15A of the Stamp Duties Act 1929.\\n[2/2016]\\n(16D) The conditions in subsection (16)(a)(iv), (b)(iv), (c)(iv) and\\n(d)(iv) are —\\n(a) the target company or the subsidiary carries on a trade or\\nbusiness in Singapore or elsewhere on the date of the\\nacquisition of the shares; and\\n(b) the target company or the subsidiary has in its employment\\nat least 3 employees at all times during the period of\\n12 months immediately before that date.\\n[2/2016]\\n(16E) For the purposes of subsections (16)(c)(v) and (d)(v) and\\n(17)(db), the Minister may by regulations prescribe such conditions\\nas the Minister considers necessary to ensure that the acquiring\\ncompany or acquiring subsidiary is not merely a passive shareholder\\nof the target company, including requiring the company or subsidiary\\nto exert significant influence (within the meaning of FRS 28,\\nSFRS(I) 1‑28, or SFRS for Small Entities) over the target company.\\n[2/2016; 32/2019; 27/2021]\\n(16F) In subsection (16E), “FRS 28”, “SFRS(I) 1‑28” and “SFRS\\nfor Small Entities” mean the financial reporting standards known\\nrespectively as —\\n(a) Financial\\nReporting\\nStandard\\n28\\n(Investments\\nin\\nAssociates and Joint Ventures);\\n(b) Singapore\\nFinancial\\nReporting\\nStandard\\n(International) 1‑28 (Investments in Associates and Joint\\nVentures); and\\n(c) Singapore Financial Reporting Standard for Small Entities,\\nthat are made by the Accounting Standards Committee under Part 3 of\\nthe Accounting Standards Act 2007, as amended from time to time.\\n[32/2019]\\n[Act 36 of 2022 wef 01/04/2023]\\n(17) No deduction in respect of any qualifying acquisition of\\nordinary shares in a target company may be made to the acquiring\\nIncome Tax Act 1947\\n2020 Ed.\\n798\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\ncompany for the year of assessment relating to the basis period of the\\nacquiring company in which any of the following events occurs or for\\nany subsequent year:\\n(a) where the qualifying acquisition is one mentioned in\\nsubsection (4) or (4A)(c), (d), (e) or (f), after the date of the\\nacquisition of the shares, the target company issues\\nadditional\\nordinary\\nshares\\nwhich\\nreduces\\nthe\\ntotal\\nownership of the acquiring company and its acquiring\\nsubsidiaries of the ordinary shares in the target company to\\n50% or less;\\n(aa) where the qualifying acquisition is one mentioned in\\nsubsection (4A)(a) or (b), after the date of the acquisition\\nof the shares, the target company issues additional ordinary\\nshares which reduces the total ownership of the acquiring\\ncompany and its acquiring subsidiaries of the ordinary\\nshares in the target company to less than 20%;\\n(b) the acquiring company —\\n(i) ceases to carry on a trade or business in Singapore; or\\n(ii) ceases to have at least 3 local employees;\\n(c) where the qualifying acquisition is one mentioned in\\nsubsection (4)(a) or (b) or (4A)(c) or (d), the acquiring\\ncompany or the acquiring subsidiary (as the case may be)\\ndivests of its shares in the target company which reduces\\nthe total ownership of the acquiring company and its\\nacquiring subsidiaries of the ordinary shares in the target\\ncompany to 50% or less, and such divestment occurs in a\\nbasis period of the acquiring company other than that for\\nthe 1st year of assessment;\\n(d) where the qualifying acquisition is one mentioned in\\nsubsection (4)(c) or (d) or (4A)(e) or (f), the acquiring\\ncompany or the acquiring subsidiary (as the case may be)\\ndivests of its shares in the target company which reduces\\nthe total ownership of the acquiring company and its\\nacquiring subsidiaries of the ordinary shares in the target\\ncompany to a percentage below 75%, and such divestment\\nIncome Tax Act 1947\\n799\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\noccurs in a basis period of the acquiring company other\\nthan that for the 1st year of assessment;\\n(da) where the qualifying acquisition is one mentioned in\\nsubsection (4A)(a) or (b), the acquiring company or the\\nacquiring subsidiary (as the case may be) divests its shares\\nin the target company which reduces the total ownership of\\nthe acquiring company and its acquiring subsidiaries of the\\nordinary shares in the target company to any percentage\\nbelow 20%, and such divestment occurs in a basis period of\\nthe acquiring company other than that for the 1st year of\\nassessment;\\n(db) where the qualifying acquisition is one mentioned in\\nsubsection (4A)(a) or (b), the acquiring company or the\\nacquiring subsidiary (as the case may be) fails to satisfy\\nany condition prescribed under subsection (16E);\\n(e) the acquiring company or, if the acquiring company is a\\nsubsidiary of another company, its ultimate holding\\ncompany, ceases to be a Singapore company; or\\n[Act 33 of 2022 wef 04/11/2022]\\n(f) the acquiring subsidiary and every intermediate company\\nthrough which the acquiring subsidiary is indirectly owned\\nby the acquiring company —\\n(i) carries on any trade or business in Singapore or\\nelsewhere;\\n(ii) claims a deduction under this section for capital\\nexpenditure or transaction costs incurred or claims\\nany stamp duty relief under section 15A of the Stamp\\nDuties Act 1929; or\\n(iii) ceases\\nto\\nbe\\nwholly‑owned\\nby\\nthe\\nacquiring\\ncompany —\\n(A) directly, in the case of a qualifying acquisition\\nthe date of which is before 17 February 2012;\\nand\\nIncome Tax Act 1947\\n2020 Ed.\\n800\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(B) whether directly or indirectly, in the case of a\\nqualifying acquisition the date of which is on\\nor after 17 February 2012.\\n[2/2016; 27/2021]\\n(18) If the Comptroller is satisfied that the shareholders of the\\nacquiring company on the first day of the year of assessment in which\\nthe deduction is to be allowed in respect of a qualifying acquisition\\nare not substantially the same as its shareholders on the date of the\\nacquisition of the shares, then no deduction in respect of the\\nqualifying acquisition may be made to the acquiring company for the\\nyear of assessment relating to the basis period of the acquiring\\ncompany in which the deduction is to be allowed and for any\\nsubsequent year of assessment.\\nModifications for groups of companies\\n(19) Where the acquiring company or the acquiring subsidiary (as\\nthe case may be) and the target company are part of the same group of\\ncompanies on the date of a qualifying acquisition of ordinary shares\\nin a target company by the acquiring company or the acquiring\\nsubsidiary (as the case may be), no deduction may be made under this\\nsection in respect of that qualifying acquisition unless the total\\nnumber of ordinary shares acquired by the acquiring company or the\\nacquiring subsidiary (as the case may be) results in an increase in the\\ntotal number of ordinary shares of the target company held on that\\ndate by all companies in the group (excluding the target company)\\nand, where there is such an increase —\\n(a) a deduction is only allowed under this section for; and\\n(b) references in subsections (7) to (10A) to any capital\\nexpenditure for a qualifying acquisition are accordingly\\nreferences to,\\nthe capital expenditure in respect of the number of such shares that\\ncorresponds to such increase.\\n[2/2016]\\n(19A) The Minister or such person as he may appoint may, for any\\nparticular qualifying acquisition made during the period from\\n17 February 2012 to 31 March 2020 (both dates inclusive), waive\\nIncome Tax Act 1947\\n801\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthe requirement in subsections (16A)(d) and (17)(e) in relation to the\\nultimate holding company of the acquiring company, subject to such\\nconditions that the Minister or the person he has appointed may\\nimpose.\\n[2/2016; 41/2020]\\n(19B) If —\\n(a) any requirement under subsections (16A)(d) and (17)(e)\\nhas been waived (whether before, on or after 2 December\\n2019) for an acquiring company in respect of any\\nqualifying acquisition under subsection (19A); and\\n(b) the acquiring company fails to comply with a condition\\nsubsequent imposed under subsection (19A) for such\\nwaiver,\\nthen, if the Minister or the person appointed by the Minister is\\nsatisfied, having regard to the acquiring company’s representation\\nand all the relevant circumstances of the case, that it is just and\\nreasonable to do so, the Minister or appointed person —\\n(c) may make a determination that the company is not entitled\\nto any deduction in respect of the qualifying acquisition for\\neach year of assessment beginning with a specified year of\\nassessment; and\\n(d) must give a written notice of the determination to the\\nComptroller and the company.\\n[32/2019]\\n(19C) If a determination has been made under subsection (19B),\\nthen (despite anything in this section) —\\n(a) any deduction that has already been made to the acquiring\\ncompany in respect of the qualifying acquisition for each\\nyear of assessment beginning with the specified year of\\nassessment is treated for the purposes of this section as\\nhaving been wrongly allowed, and the Comptroller may,\\nsubject to section 74, make an assessment or additional\\nassessment on the company for those years of assessment\\nto make good any tax shortfall; and\\nIncome Tax Act 1947\\n2020 Ed.\\n802\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) no deduction may be made to the company for the\\nqualifying acquisition —\\n(i) for any year of assessment after the year or years of\\nassessment mentioned in paragraph (a); or\\n(ii) if no deduction has been made to the company for the\\nspecified year of assessment, for the specified year of\\nassessment and each subsequent year of assessment.\\n[32/2019]\\nCarry forward of deductions\\n(20) Subject to subsection (21), where in any year of assessment\\nfull effect cannot, by reason of an insufficiency of gains or profits\\nchargeable for that year of assessment, be given to any deduction\\nfalling to be allowed under this section, the balance of the deduction\\nis to be added to, and is deemed to form part of the corresponding\\ndeduction (if any) for the next succeeding year of assessment, and if\\nno such corresponding deduction falls to be allowed for that year, is\\ndeemed to constitute the corresponding deduction for that year, and\\nso on for subsequent years of assessment.\\n(21) No balance may be added to and be deemed to form part of the\\ncorresponding deduction (if any) to be given to an acquiring company\\nunder subsection (20) for a year of assessment unless the Comptroller\\nis satisfied that the shareholders of the acquiring company on the last\\nday of the year of assessment in which the deduction was claimed\\nwere substantially the same as the shareholders of the acquiring\\ncompany on the first day of the firstmentioned year of assessment;\\nand such balance must not be allowed in any subsequent year of\\nassessment.\\nExemption\\n(22) The Minister or such person as the Minister may appoint may,\\nwhere there is a substantial change in the shareholders of a company\\nand the Minister or appointed person is satisfied that such change is\\nnot for the purpose of deriving any tax benefit or obtaining any tax\\nadvantage,\\nexempt\\nthat\\ncompany\\nfrom\\nthe\\nprovisions\\nof\\nsubsections (18) and (21).\\nIncome Tax Act 1947\\n803\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nDeductions that ought not to have been allowed\\n(23) Despite section 74(1) and (4), where it appears to the\\nComptroller that a deduction or any part thereof under this section\\nwhich has been allowed to any acquiring company in any year of\\nassessment ought not to have been allowed by virtue of —\\n(a) the occurrence of any event specified in subsection (17) or\\n(18);\\n(b) the failure of the acquiring company or the acquiring\\nsubsidiary (as the case may be) to pay the consideration for\\nacquiring the shares of the target company in full within\\n6 months from the date of the acquisition of the shares or,\\nin\\nthe\\ncase\\nof\\nconsideration\\nthat\\nis\\ncontingent\\nconsideration,\\nwithin\\n6\\nmonths\\nfrom\\nthe\\ndate\\nthe\\ncontingent consideration is incurred;\\n(c) a reduction in the consideration paid in relation to the share\\nacquisition upon satisfaction of indemnity conditions as\\nmay be specified in the agreement for the sale of the\\nordinary shares of the target company; or\\n(d) section 33,\\nthe Comptroller may, at any time, for the purposes of making good\\nany loss of tax attributable to the deduction or part thereof, assess the\\nperson who has utilised the deduction at such amount or additional\\namount as according to the Comptroller’s judgment ought to have\\nbeen charged, and this subsection also applies with the necessary\\nmodifications to any assessment which results in any unabsorbed\\nallowances or losses.\\nRegulations\\n(24) The Minister may make regulations —\\n(a) to provide for the disallowance of or for the adjustments to\\nbe made to the amount of any deduction allowed in any\\nyear of assessment under this section where the acquiring\\ncompany or the acquiring subsidiary (as the case may be)\\ndivests itself of any of the ordinary shares it holds in the\\ntarget company;\\nIncome Tax Act 1947\\n2020 Ed.\\n804\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) to provide for the application of this section to a business\\ntrust, subject to such modifications as may be prescribed,\\nincluding treating, in prescribed circumstances, a business\\ntrust and any company whose shares are trust property\\nthereof as companies within a group of companies, and a\\nholding of units in a business trust as a holding of shares in\\na company;\\n(c) to prescribe such matters as are required or authorised to be\\nprescribed under this section; and\\n(d) generally for giving full effect to or for carrying out the\\npurposes of this section.\\nInterpretation\\n(25) In this section —\\n“capital expenditure”, in relation to any acquisition of shares,\\nmeans consideration for the shares acquired whether paid in\\ncash or in shares of the acquiring company or both, but\\nexcludes transaction costs (including but not limited to due\\ndiligence and valuation costs) and any other similar costs;\\n“central hirer”, in relation to a central hiring arrangement for a\\ngroup of related parties, means the person who carries out\\nhiring functions for those parties under the arrangement;\\n[Act 33 of 2022 wef 04/11/2022]\\n“central hiring arrangement” means an arrangement for a group\\nof related parties entered into for a bona fide commercial\\nreason, where the hiring functions of the parties in the group\\nare carried out by a single person;\\n[Act 33 of 2022 wef 04/11/2022]\\n“contingent consideration”, in relation to an acquisition of\\nordinary shares in a target company, means such part of the\\ntotal consideration for the acquisition that would be incurred\\nonly upon the satisfaction of such conditions in respect of the\\ntarget company as may be specified in the agreement for the\\nacquisition entered into by the acquiring company or the\\nacquiring subsidiary, as the case may be;\\nIncome Tax Act 1947\\n805\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“group of companies” means 2 or more companies each of\\nwhich is either a holding company or subsidiary of the other\\nor any of the others;\\n[Deleted by Act 33 of 2022 wef 04/11/2022]\\n“local employee” means an individual who —\\n(a) is a citizen of Singapore or a Singapore permanent\\nresident;\\n(b) makes contributions in respect of the income derived\\nfrom his or her employment with the acquiring\\ncompany to the Central Provident Fund which are\\nobligatory\\nunder\\nthe\\nCentral\\nProvident\\nFund\\nAct 1953; and\\n(c) is any of the following:\\n(i) an employee of the acquiring company;\\n(ii) for the year of assessment 2020 or a subsequent\\nyear of assessment — an individual who is\\nengaged by the central hirer of a central hiring\\narrangement for a group of related parties\\nwhich includes the acquiring company —\\n(A) who is deployed to work solely for the\\nacquiring company; and\\n(B) whose salary and other remuneration is\\nborne, directly or indirectly, by the\\nacquiring company and not claimed by\\nthe central hirer as a deduction against the\\ncentral hirer’s own income;\\n(iii) for the year of assessment 2020 or a subsequent\\nyear of assessment — an employee of another\\nperson (called B) —\\n(A) who\\nis\\nseconded\\nto\\nthe\\nacquiring\\ncompany under a bona fide commercial\\narrangement to work solely for the\\nacquiring company; and\\nIncome Tax Act 1947\\n2020 Ed.\\n806\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(B) whose salary and other remuneration is\\nborne, directly or indirectly, by the\\nacquiring company and not claimed by\\nB as a deduction against B’s own income,\\nbut excludes a director as defined in section 4 of the\\nCompanies Act 1967;\\n[Act 33 of 2022 wef 04/11/2022]\\n“Singapore company” means a company incorporated in\\nSingapore and resident in Singapore;\\n“transaction costs” means professional fees that are necessarily\\nincurred for the qualifying acquisition of ordinary shares in\\nthe target company —\\n(a) including legal fees, accounting or tax advisor’s fees\\nand valuation fees; but\\n(b) excluding any professional fees (including the fees\\nmentioned in paragraph (a)) incurred in respect of\\nloan arrangements and costs incidental thereto,\\nborrowing costs, and stamp duty and any other\\ntaxes, incurred for the qualifying acquisition of\\nordinary shares in the target company;\\n“ultimate holding company” has the meaning given by\\nsection 5A of the Companies Act 1967.\\n(26) In this section, the date of acquisition of ordinary shares in a\\ntarget company is —\\n(a) the date on which the agreement for the sale of those shares\\nis entered into by the acquiring company or the acquiring\\nsubsidiary, as the case may be; or\\n(b) in the absence of an agreement mentioned in paragraph (a),\\nthe date of the transfer of those shares from the target\\ncompany to the acquiring company or the acquiring\\nsubsidiary, as the case may be.\\n(27) For the purposes of subsection (16A), a company is connected\\nwith another if —\\nIncome Tax Act 1947\\n807\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(a) at least 75% of the total number of ordinary shares in one\\ncompany are beneficially held, directly or indirectly, by the\\nother; or\\n(b) at least 75% of the total number of ordinary shares in each\\nof the 2 companies are beneficially held, directly or\\nindirectly, by a third company.\\n[2/2016]\\n[Act 33 of 2022 wef 04/11/2022]\\n(28) For the purposes of subsections (18), (21) and (22) —\\n(a) the shareholders of the acquiring company at any date are\\nnot deemed to be substantially the same as the shareholders\\nof that company at any other date unless, on both those\\ndates, not less than 50% of the total number of issued\\nshares of the company are held by or on behalf of the same\\npersons;\\n(b) shares in the acquiring company held by or on behalf of\\nanother\\ncompany\\nare\\ndeemed\\nto\\nbe\\nheld\\nby\\nthe\\nshareholders of the last mentioned company; and\\n(c) shares held by or on behalf of the trustee of the estate of a\\ndeceased shareholder or by or on behalf of the person\\nentitled to those shares as beneficiaries under the will or\\nany intestacy of a deceased shareholder are deemed to be\\nheld by that deceased shareholder.\\n(29) In this section, a reference to capital expenditure and\\ntransaction costs excludes any such expenditure and costs to the\\nextent that they are or are to be subsidised by grants or subsidies from\\nthe Government or a statutory board.\\n[37L\\nTreatment of unabsorbed donations attributable to exempt\\nincome\\n37P.—(1) If —\\n(a) any donation allowable under this Act for the year of\\nassessment 2012 or any preceding year of assessment\\n(called in this section the attributed donation) is to be\\nIncome Tax Act 1947\\n2020 Ed.\\n808\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\ndeducted from any income of a company under a provision\\nof this Act or the Economic Expansion Incentives (Relief\\nfrom Income Tax) Act 1967 in determining the amount of\\nits income that is exempt from tax under that provision for\\nthat or any subsequent year of assessment; and\\n(b) part or all of the attributed donation (called in this section\\nthe balance) has yet to be fully deducted in determining the\\namount of income that is exempt from tax for the year of\\nassessment 2012,\\nthen the following provisions apply to the balance:\\n(c) subject to paragraphs (e) to (i) and subsection (2), the\\nbalance is to be deducted from the statutory income of the\\ncompany for the year of assessment 2013;\\n(d) subject to paragraphs (e) to (i) and section 37B as in force\\nimmediately\\nbefore\\n7\\nDecember\\n2020,\\nwhere\\nthe\\ndeduction under paragraph (c) cannot be made or fully\\nmade, the balance is to be deducted from the statutory\\nincome of the company for the year of assessment 2014,\\nand so on;\\n(e) any balance not deducted against the statutory income of\\nthe company for the fifth year of assessment after the year\\nof assessment relating to the basis period in which the\\ndonation was made must be disregarded;\\n(f) for the purposes of paragraphs (c) and (d), any donation\\nmade on an earlier date is deemed to have been deducted\\nfirst;\\n(g) where the part of the balance that may be deducted under\\nparagraph (c) against any type of income in accordance\\nwith subsection (2) has been so deducted and a sum\\nremains of that part of the balance after such deduction, a\\ndeduction under paragraph (d) of the sum that so remains,\\nor any sum that remains after one or more applications of\\nthis paragraph, is to be made in the following manner:\\n(i) the sum is first to be deducted against the same type\\nof income;\\nIncome Tax Act 1947\\n809\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(ii) any sum remaining after that deduction is to be\\ndeducted against any other type of income in\\naccordance with section 37B of this Act in force\\nimmediately before 7 December 2020;\\n(h) despite paragraphs (c) and (d), the balance must be\\ndisregarded if the Comptroller is not satisfied that the\\nshareholders of the company on the last day of the year in\\nwhich the donation was made, were substantially the same\\nas the shareholders of the company on the first day of the\\nyear of assessment in which the balance would otherwise\\nbe deductible; and\\n(i) section 37(13) to (17) applies, with the necessary\\nmodifications, for the purposes of paragraph (h).\\n[41/2020]\\n(2) The deduction under subsection (1)(c) is to be made in\\naccordance with the following provisions:\\n(a) section 37B of this Act in force immediately before\\n7 December 2020 does not apply to the deduction;\\n(b) if the company only derives normal income for that year of\\nassessment, the balance is to be deducted against the\\nnormal income for that year of assessment;\\n(c) if the company only derives concessionary income for that\\nyear of assessment, the balance is to be deducted against\\nthe concessionary income for that year of assessment;\\n(d) if\\nthe\\ncompany\\nderives\\nboth\\nnormal\\nincome\\nand\\nconcessionary income, or concessionary income that is\\nsubject to tax at different concessionary rates of tax, for\\nthat year of assessment, the balance is to be deducted\\nagainst each type of income in such proportion as appears\\nreasonable to the Comptroller in the circumstances;\\n(e) if the company only derives income that is exempt from tax\\nfor that year of assessment, then section 37B of this Act in\\nforce immediately before 7 December 2020 applies, with\\nthe necessary modifications, for the purpose of making a\\ndeduction of the balance under subsection (1)(d) as if the\\nIncome Tax Act 1947\\n2020 Ed.\\n810\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nbalance were unabsorbed donation in respect of income of\\na company subject to tax at the rate of tax specified in\\nsection 43(1)(a).\\n[41/2020]\\n(3) In this section —\\n“concessionary income” means income that is subject to tax at a\\nconcessionary rate of tax;\\n“concessionary rate of tax” has the meaning given by\\nsection 14C in force immediately before 29 December 2016;\\n“normal income” means income that is subject to tax at the rate\\nof tax specified in section 43(1)(a).\\n[37M\\n[34/2016]\\nExclusion of expenditure or payment subsidised by capital\\ngrant\\n37Q.—(1) Despite anything in this Act or the Economic Expansion\\nIncentives (Relief from Income Tax) Act 1967, a deduction or an\\nallowance under this Act or Part 8 of the Economic Expansion\\nIncentives (Relief from Income Tax) Act 1967 may not be made or\\ngiven in respect of any expenditure or payment to the extent that the\\nexpenditure or payment is or is to be subsidised by a grant or subsidy\\nfrom the Government or a statutory board that is —\\n(a) capital in nature; and\\n(b) approved by the Government or statutory board on or after\\n1 January 2021.\\n[41/2020]\\n[Act 39 of 2023 wef 29/12/2023]\\n(2) Subsection (1) does not affect the operation of the following\\nprovisions:\\n(a) sections\\n14A(7),\\n14B(4)(e),\\n14C(1A),\\n14D(12)(b),\\n14EA(10), 14H(3)(c), 14I(10)(b), 14U(7), 14Z(7) and (9)\\nand 37O(29);\\n[Act 30 of 2023 wef 30/10/2023]\\nIncome Tax Act 1947\\n811\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) section 41(3) of the Economic Expansion Incentives\\n(Relief from Income Tax) Act 1967.\\n[37N\\n[41/2020]\\nCash payout under Enterprise Innovation Scheme\\n37R.—(1) Subject to this section, where any eligible person has\\nincurred expenditure during the basis period for any year of\\nassessment between the years of assessment 2024 and 2028 (both\\nyears inclusive), for which a deduction or an allowance is allowable\\nor can be made to the eligible person under any provision of this Act\\nmentioned in subsection (3) (as qualified by that subsection), the\\neligible person may, in lieu of one or more of the deductions or\\nallowances or any part thereof, make an irrevocable written election\\nfor a cash payout computed in accordance with subsection (4) in\\nrespect of —\\n(a) the\\nexpenditure\\nqualifying\\nfor\\nthe\\ndeductions\\nor\\nallowances; or\\n(b) any part of the expenditure,\\n(called in this section the selected expenditure), the total amount of\\nwhich (together with the cash price of any intellectual property rights\\nin respect of which an election under subsection (6) is made at the\\nsame time) is at least $400.\\n(2) The election under subsection (1) must —\\n(a) be made to the Comptroller by the eligible person —\\n(i) on or before the expiry of the time (including any\\nextended time) for the eligible person to lodge the\\neligible person’s return of income for the year of\\nassessment relating to the basis period in which the\\nselected expenditure was incurred, as described in\\nsection 62; or\\n(ii) within such extended time as the Comptroller may\\nallow;\\nIncome Tax Act 1947\\n2020 Ed.\\n812\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) be made using the electronic service, except that the\\nComptroller may in any particular case or class of cases\\npermit the election to be made in any other manner; and\\n(c) be accompanied by such information and supporting\\ndocument, to be given in such form and manner, as may\\nbe specified by the Comptroller.\\n(3) For the purposes of subsection (1), the provisions of this Act\\nare —\\n(a) section 14 in respect of —\\n(i) expenditure on the licensing from another person of\\nany qualifying intellectual property rights for which\\na deduction may be given under section 14U(1A); or\\n(ii) expenditure that falls within the definition of\\n“qualifying\\ntraining\\nexpenditure”\\nin\\nsection 14ZG(5) for which a deduction may be\\ngiven under section 14ZG;\\n(b) section 14A(1)(b) and (1BC);\\n(c) section 14C in respect of expenditure that falls within the\\ndefinition of “qualifying expenditure” in section 14D(11),\\nfor which a deduction may be given under section 14D;\\n(d) section 14D(1) and (1A);\\n(e) section 14EA(1);\\n(f) section 14U(1A);\\n(g) section 14ZG(1); and\\n(h) section 19B(1AA) and (1AD) other than —\\n(i) a writing-down allowance made in a case where the\\nrequirements under section 19B(2A)(a) and (b) are\\nwaived; and\\n(ii) a writing-down allowance made in respect of any\\nintellectual property rights acquired under an IPR\\ninstalment agreement signed in the basis period for\\nIncome Tax Act 1947\\n813\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nany year of assessment between the years of\\nassessment 2024 and 2028 (both years inclusive).\\n(4) For the purposes of subsection (1), the amount of cash payout\\nfor each year of assessment is\\nA \\u0003 20%;\\nwhere A is the lower of the following:\\n(a) the amount of the selected expenditure;\\n(b) $100,000.\\n(5) The Comptroller may reject any election that is not made in\\naccordance with subsection (2).\\nCash payout in respect of IPR acquired under instalment\\nagreement\\n(6) Where —\\n(a) an eligible person has, in the basis period for any year of\\nassessment between the years of assessment 2024 and\\n2028 (both years inclusive), signed an IPR instalment\\nagreement to acquire any intellectual property rights for\\nuse in the eligible person’s trade or business;\\n(b) allowances may be made to the eligible person under\\nsection 19B(1AA) and (1AD) for capital expenditure to be\\nincurred under the agreement; and\\n(c) the cash price for the intellectual property rights (together\\nwith any selected expenditure mentioned in subsection (1)\\nin respect of which an election is made under that\\nsubsection at the same time) is at least $400,\\nthe eligible person may, in lieu of all those allowances, make an\\nirrevocable written election for a cash payout.\\n(7) The election under subsection (6) must —\\n(a) be made to the Comptroller by the eligible person —\\n(i) on or before the expiry of the time (including any\\nextended time) for the eligible person to lodge the\\nIncome Tax Act 1947\\n2020 Ed.\\n814\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\neligible person’s return of income for the year of\\nassessment relating to the basis period in which the\\nIPR instalment agreement was signed, as described\\nin section 62; or\\n(ii) within such extended time as the Comptroller may\\nallow;\\n(b) be made using the electronic service, except that the\\nComptroller may in any particular case or class of cases\\npermit the election to be made in any other manner; and\\n(c) be accompanied by such information and supporting\\ndocument, to be given in such form and manner, as may\\nbe specified by the Comptroller.\\n(8) The Comptroller may reject any election that is not made in\\naccordance with subsection (7).\\n(9) Where an election under subsection (6) is made, subsection (4)\\napplies with the following modifications:\\n(a) the reference to the amount of selected expenditure for a\\nyear of assessment, being the year of assessment relating to\\nthe basis period in which the IPR instalment agreement is\\nsigned, is to the aggregate of —\\n(i) the cash price of the intellectual property rights; and\\n(ii) the expenditure mentioned in subsection (1) incurred\\nin that basis period for which a deduction or an\\nallowance is allowable or may be made to the\\neligible person, and in respect of which an election\\nhas been made under that subsection;\\n(b) the reference to the amount of selected expenditure for a\\nyear of assessment excludes the amount of any capital\\nexpenditure made by the eligible person under that IPR\\ninstalment agreement in the basis period for that year of\\nassessment.\\n(10) For the purpose of subsections (12) and (22), the amount of\\ncash payout for any intellectual property rights that are the subject of\\nIncome Tax Act 1947\\n815\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nan IPR instalment agreement is the amount computed under\\nsubsection (4) (as modified by subsection (9)) that is attributable to —\\n(a) the cash price of the intellectual property rights; or\\n(b) if the amount of A is $100,000, such part of that amount\\nthat the eligible person specifies to be attributable to the\\ncash price of the intellectual property rights.\\n(11) In subsections (9)(a)(i) and (10)(a), a reference to the cash\\nprice of the intellectual property rights is, in a case where\\nsection 19B(10I) applies, to the open‑market price mentioned in\\nsection 19B(10F) for those intellectual property rights.\\n(12) The cash payout for a year of assessment under subsection (6)\\nfor any intellectual property rights that are the subject of an IPR\\ninstalment agreement must be made to the eligible person in the\\nfollowing manner:\\n(a) the eligible person may claim an amount of cash payout for\\nthe year of assessment relating to a basis period during\\nwhich the eligible person incurred capital expenditure\\nunder the agreement for those rights;\\n(b) the amount of cash payout that may be made to the eligible\\nperson is the lesser of —\\n(i) A × 20%, where A is the amount of the capital\\nexpenditure incurred in that basis period; and\\n(ii) the amount mentioned in subsection (10) after\\ndeducting any cash payout made for those rights in\\nany preceding year of assessment or years of\\nassessment under this subsection;\\n(c) no cash payout may be made for those rights if the amount\\nmentioned in paragraph (b)(ii) is zero;\\n(d) each claim must be made in a form and be accompanied by\\nany information and supporting document relating to the\\ncapital expenditure specified by the Comptroller;\\n(e) to avoid doubt, a claim may be made for any year of\\nassessment after the year of assessment 2028.\\nIncome Tax Act 1947\\n2020 Ed.\\n816\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nCases where no election allowed\\n(13) No election under subsection (1) or (6) may be made by a\\nperson in respect of —\\n(a) any deduction allowable under any provision mentioned in\\nsubsection (3)(a)(i) and (f) unless the person is a qualifying\\nperson within the meaning of section 14U(1C) for the year\\nof assessment in question;\\n(b) any deduction allowable under any provision mentioned in\\nsubsection (3)(b) for any qualifying intellectual property\\nregistration costs in respect of an application for the\\nregistration or grant of a qualifying intellectual property\\nright incurred by the person over the basis periods of 2 or\\nmore consecutive years of assessment, if the person had\\nmade any claim for deduction under that provision in\\nrespect of any part of such costs for a previous year of\\nassessment; or\\n(c) any allowance that may be made under any provision\\nmentioned in subsection (3)(h) unless the person is a\\nqualifying company for the year of assessment in question\\nwithin the meaning of section 19B(1AF).\\nCash payout to individuals carrying on trade, etc., through 2 or\\nmore firms\\n(14) For the purposes of subsections (1), (4) and (6), an individual\\ncarrying on one or more trades or businesses through 2 or more firms\\n(excluding partnerships) must not be granted a cash payout that\\nexceeds the amount computed in accordance with subsection (4) or\\nthat subsection as modified by subsection (9), as the case may be.\\nSection 14A costs deductible for 2 or more consecutive years of\\nassessment treated as incurred on date of approval or rejection of\\napplication for registration of intellectual property rights, etc.\\n(15) For the purposes of this section, where —\\n(a) an eligible person has incurred qualifying intellectual\\nproperty registration costs in respect of an application for\\nthe registration or grant of a qualifying intellectual\\nIncome Tax Act 1947\\n817\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nproperty right for which a deduction is allowable under\\nsection 14A(1)(b) and (1BC), over the basis periods of 2 or\\nmore consecutive years of assessment;\\n(b) the eligible person is not disqualified from making an\\nelection\\nunder\\nsubsection\\n(1)\\nby\\nreason\\nof\\nsubsection (13)(b); and\\n(c) the eligible person makes an election under subsection (1)\\nin respect of those costs,\\nthe eligible person is treated as having incurred those costs during the\\nbasis period of the year of assessment in which the application or\\ngrant is approved or rejected.\\nWhen open-market price treated as section 19B expenditure\\n(16) Where the Comptroller has treated the open‑market price as\\nthe capital expenditure incurred for the acquisition of intellectual\\nproperty rights under section 19B(10E), then the reference in this\\nsection to selected expenditure, insofar as it relates to that capital\\nexpenditure, is to the open‑market price of the intellectual property\\nrights.\\nElection deemed made on full amount of section 14A or 19B\\nexpenditure\\n(17) Where\\nan\\neligible\\nperson\\nmakes\\nan\\nelection\\nunder\\nsubsection (1) or (6) in respect of a deduction or an allowance\\nunder section 14A(1)(b) and (1BC) or 19B(1AA) and (1AD), the\\nelection is treated as having been made on the full amount of the\\nexpenditure qualifying for the deduction or allowance and incurred\\non —\\n(a) the grant or registration of each qualifying intellectual\\nproperty right in each country; or\\n(b) the acquisition of each intellectual property right,\\nas the case may be, to which the election relates, net of any grant or\\nsubsidy from the Government or a statutory board.\\n(18) No part of the amount of any expenditure mentioned in\\nsubsection (17) for which an election is made or treated as having\\nIncome Tax Act 1947\\n2020 Ed.\\n818\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nbeen made under subsection (1) or (6) is eligible for a deduction or an\\nallowance against the income of the eligible person for any year of\\nassessment.\\nCapital expenditure in acquiring rights in software for licensing\\nnot eligible for cash payout\\n(19) Despite subsections (1) and (6), where an eligible person has\\nincurred capital expenditure in acquiring any intellectual property\\nrights in any software for the purpose of licensing all or any part of\\nthose rights, the eligible person is not allowed to make an election\\nunder subsection (1) or (6) in respect of such expenditure.\\nRecovery of cash payout by Comptroller\\n(20) Where a cash payout has been made to a person under this\\nsection in lieu of a deduction under section 14A(1)(b) and (1BC), and\\nthe intellectual property rights or the application for the registration\\nor grant of the rights for which the deduction is made is sold,\\ntransferred or assigned within one year after the date of filing of the\\napplication for the registration or grant of such rights, the following\\nprovisions apply:\\n(a) the person must give written notice to the Comptroller of\\nthe sale, transfer or assignment in the manner specified by\\nthe Comptroller within 30 days after the date of the sale,\\ntransfer or assignment;\\n(b) the cash payout in respect of the intellectual property\\nrights, or the application for the registration or grant of\\nthose rights is recoverable by the Comptroller from the\\nperson as a debt due to the Government.\\n(21) Where a cash payout has been made to a person pursuant to an\\nelection under subsection (1) in lieu of a writing‑down allowance\\nunder section 19B(1AA) and (1AD), and any of the following events\\noccurs within 5 years after the acquisition of the intellectual property\\nrights:\\n(a) the intellectual property rights for which the writing‑down\\nallowance is made come to an end without being\\nsubsequently revived;\\nIncome Tax Act 1947\\n819\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) all or any part of the intellectual property rights for which\\nthe writing‑down allowance is made are sold, transferred\\nor assigned;\\n(c) the person permanently ceases to carry on the trade or\\nbusiness for which the intellectual property rights are used;\\n(d) all or any part of the intellectual property rights in any\\nsoftware for which the writing‑down allowance is granted\\nare licensed to another,\\nthen the following provisions apply:\\n(e) the person must give written notice to the Comptroller of\\nthat event in the manner specified by the Comptroller\\nwithin 30 days after the date of such event;\\n(f) an amount computed in accordance with the following\\nformula is recoverable by the Comptroller from the person\\nas a debt due to the Government:\\nAmount of\\ncash payout \\u0003\\n5 \\u0001 Number of complete\\nyears the intellectual\\nproperty rights were\\nheld by the person\\n0\\nB\\nB\\n@\\n1\\nC\\nC\\nA\\n5\\n:\\n(22) Where —\\n(a) an election has been made by a person under subsection (6)\\nfor a cash payout in lieu of a writing‑down allowance\\nunder section 19B(1AA) and (1AD); and\\n(b) any of the events mentioned in subsection (21)(a) to (d)\\noccurs within 5 years after the acquisition of the\\nintellectual property rights,\\nthen the following provisions apply:\\n(c) the person must give written notice to the Comptroller of\\nsuch event in the manner specified by the Comptroller\\nwithin 30 days after the date of such event;\\nIncome Tax Act 1947\\n2020 Ed.\\n820\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(d) where any amount of the cash payout has been made to the\\nperson before the occurrence of the event, an amount\\ncomputed\\nin\\naccordance\\nwith\\nthe\\nformula\\nin\\nsubsection (21)(f) is recoverable by the Comptroller from\\nthe person as a debt due to the Government;\\n(e) for the purposes of paragraph (d), the reference in the\\nformula to the amount of cash payout is to the total amount\\nof the cash payout that has been made to the person before\\nthe occurrence of the event;\\n(f) the amount of the cash payout that may be made to the\\nperson for the basis period in which the event occurs and\\nthereafter\\nis,\\ninstead\\nof\\nthe\\namount\\ncomputed\\nin\\naccordance with subsection (12)(b), an amount computed\\nin accordance with the formula\\nCash payout computed\\nin accordance with\\nsubsection ð12ÞðbÞ\\n\\u0003\\nNumber of complete\\nyears the intellectual\\nproperty rights were\\nheld by the person\\n5\\n:\\nRecord keeping\\n(23) Subsection (24) applies if an eligible person makes an election\\nunder subsection (1) for a cash payout in lieu of any deduction or\\nallowances in respect of any expenditure mentioned in subsection (3)\\nincurred by the eligible person.\\n(24) Despite section 67, the eligible person must keep and retain in\\nsafe custody sufficient records for a period of 7 years after the year of\\nassessment relating to the basis period in which that expenditure is\\nincurred, in order to enable the Comptroller or any officer authorised\\non behalf of the Comptroller to readily ascertain the expenditure\\nincurred by the eligible person.\\n(25) Subsection (26) applies if an eligible person makes an election\\nunder subsection (6) for a cash payout in lieu of allowances that may\\nIncome Tax Act 1947\\n821\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nbe made for capital expenditure incurred by that eligible person under\\nan IPR instalment agreement signed by that eligible person.\\n(26) Despite section 67, the eligible person must keep and retain in\\nsafe custody sufficient records for a period of 7 years after the year of\\nassessment relating to the basis period in which that capital\\nexpenditure is incurred, in order to enable the Comptroller or any\\nofficer authorised on behalf of the Comptroller to readily ascertain\\nthe cash price for the intellectual property rights that are the subject of\\nthe IPR instalment agreement and that capital expenditure.\\nOther provisions\\n(27) The Comptroller may disallow any cash payout pursuant to an\\nelection made under subsection (1) or (6), if the Comptroller is\\nsatisfied that the person is not carrying on a trade or business at the\\ntime of disbursement of the cash payout.\\n(28) Where any tax, duty, interest or penalty is due under this Act,\\nthe Goods and Services Tax Act 1993, the Property Tax Act 1960 or\\nthe Stamp Duties Act 1929 by the eligible person to the Comptroller\\nof Income Tax, the Comptroller of Goods and Services Tax, the\\nComptroller of Property Tax or the Commissioner of Stamp Duties —\\n(a) the amount of cash payout made by the Comptroller to the\\neligible person is reduced by the amount so due; and\\n(b) any amount reduced under paragraph (a) is deemed to be\\ntax, duty, interest or penalty paid by the eligible person\\nunder the relevant Act and must (if it is due under an Act\\nother than this Act) be paid by the Comptroller to the\\nComptroller of Goods and Services Tax, the Comptroller\\nof Property Tax or the Commissioner of Stamp Duties, as\\nthe case may be.\\n(29) If an election has been made or treated as made under\\nsubsection (1) or (6) in respect of an amount of expenditure\\nqualifying for a deduction or an allowance under section 14, 14A,\\n14C, 14D, 14EA, 14U, 14ZG or 19B, the amount of expenditure\\nqualifying for the deduction or allowance under that provision is,\\ndespite anything in that provision, reduced by the firstmentioned\\namount.\\nIncome Tax Act 1947\\n2020 Ed.\\n822\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(30) Where an eligible person has received a cash payout under\\nsubsection (1) or (6) —\\n(a) in respect of any expenditure that is subsequently found not\\nto qualify for the allowance or deduction under any\\nprovision of this Act mentioned in subsection (3) or (6);\\n(b) without having satisfied all of the requirements in this\\nsection (excluding the requirements in subsections (20),\\n(21) and (22)) for the payout; or\\n(c) that is in excess of that which may be given to the eligible\\nperson under this section,\\nthe amount of the cash payout or the excess amount of the cash payout\\n(as the case may be) is recoverable by the Comptroller from the\\neligible person as a debt due to the Government.\\n(31) For the purposes of subsections (20), (21), (22) and (30) —\\n(a) the amount to be repaid under each of those subsections is\\npayable at the place stated in the notice served by the\\nComptroller on the eligible person within 30 days after the\\nservice of the notice or such further time as the\\nComptroller may, in the Comptroller’s discretion and\\nsubject to such terms and conditions as the Comptroller\\nmay impose, allow; and\\n(b) sections 86(1) to (6), 87(1) and (2), 89, 90 and 91 apply to\\nthe collection and recovery by the Comptroller of the\\namounts recoverable under those subsections as they apply\\nto the collection and recovery of tax.\\nConsequential adjustments to allowable deductions upon\\nrecovery of payout\\n(32) Unless disallowed by the Comptroller under subsection (33),\\nwhere\\nthe\\nComptroller\\nhas\\nrecovered\\nany\\namount\\nunder\\nsubsection (30)(b) or (c), the amount of the relevant expenditure\\nmentioned in subsection (29) is to be increased by an amount\\ndetermined in accordance with the formula\\nIncome Tax Act 1947\\n823\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nA\\n20% ;\\nwhere A is the amount recovered by the Comptroller under\\nsubsection (30)(b) or (c).\\n(33) The\\nComptroller\\nmay\\ndisallow\\nthe\\nincrease\\nunder\\nsubsection (32) if the Comptroller is satisfied that the eligible\\nperson has —\\n(a) provided\\nthe\\nComptroller\\nwith\\nany\\ninformation\\nor\\ndocument,\\nin\\nconnection\\nwith\\nthe\\nelection\\nunder\\nsubsection (1) or (6), which is false or misleading in a\\nmaterial particular;\\n(b) omitted any material particular from any information or\\ndocument given in connection with the election under\\nsubsection (1) or (6);\\n(c) prepared or maintained or authorised the preparation or\\nmaintenance of any false books of account or other records\\nor falsified or authorised the falsification of any books of\\naccount or other records in connection with the election\\nunder subsection (1) or (6); or\\n(d) made use of any fraud, art or contrivance whatsoever or\\nauthorised the use of such fraud, art or contrivance, in\\nconnection with the election under subsection (1) or (6).\\nDefinitions and miscellaneous provisions\\n(34) In this section —\\n“cash price”, in relation to any intellectual property rights that\\nare the subject of an IPR instalment agreement, means the\\nprice at which those rights might have been purchased for\\ncash at the time of the signing of the agreement;\\n“central hirer” and “central hiring arrangement” have the\\nmeanings given by section 14ZG(5);\\nIncome Tax Act 1947\\n2020 Ed.\\n824\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“eligible person” means —\\n(a) any company or firm (excluding a partnership)\\nthat —\\n(i) carries on a trade or business in Singapore; and\\n(ii) employs and makes contributions to the Central\\nProvident Fund in respect of at least 3 full‑time\\nlocal employees, each earning a gross monthly\\nsalary of at least $1,400 based on its payroll, for\\nat\\nleast\\n6\\nmonths\\n(which\\nneed\\nnot\\nbe\\ncontinuous)\\nin\\nthe\\nbasis\\nperiod\\nof\\nthe\\napplicable year of assessment (called in this\\nsubsection and subsections (35) and (36) the\\nminimum period); or\\n(b) any partner of a partnership, being a partnership\\nthat —\\n(i) carries on a trade or business in Singapore; and\\n(ii) employs and makes contributions to the Central\\nProvident Fund in respect of at least 3 full‑time\\nlocal employees, each earning a gross monthly\\nsalary of at least $1,400 based on its payroll, for\\nat least the minimum period;\\n“full-time local employee” means any Singapore citizen or\\nSingapore permanent resident who is required to work under\\nhis or her contract of service with an employer for at least\\n35 hours a week, but excludes —\\n(a) in the case of an eligible person in paragraph (a) of\\nthe definition of that term that is a company as\\ndefined in section 4(1) of the Companies Act 1967 —\\na shareholder who is also a director of the eligible\\nperson; and\\n(b) in the case of an eligible person in paragraph (b) of\\nthe definition of that term — any partner under a\\ncontract of service with the partnership;\\nIncome Tax Act 1947\\n825\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“IPR instalment agreement” means an agreement for the\\npurchase of intellectual property rights the payment for\\nwhich is to be made by instalments;\\n“qualifying\\nintellectual\\nproperty\\nregistration\\ncosts”\\nand\\n“qualifying intellectual property right” have the meanings\\ngiven by section 14A(6).\\n(35) In paragraphs (a)(ii) and (b)(ii) of the definition of “eligible\\nperson” in subsection (34), a reference to a full‑time local employee\\nincludes —\\n(a) a Singapore citizen or Singapore permanent resident —\\n(i) who is engaged by the central hirer of a central hiring\\narrangement for a group of related parties that\\nincludes the eligible person;\\n(ii) who is deployed to work solely for the company, firm\\nor\\npartnership\\n(called\\nin\\nthis\\nsubsection\\nand\\nsubsection (36) X) for at least the minimum period;\\n(iii) who is on the payroll of the central hirer or X in that\\nperiod; and\\n(iv) whose salary and other remuneration (including\\ntraining expenditure incurred in respect of the\\nindividual) is borne (directly or indirectly) by X in\\nthat period; or\\n(b) a Singapore citizen or Singapore permanent resident —\\n(i) who, being an employee of another person that is a\\nrelated party of X (called in this subsection and\\nsubsection (36) the employer), is seconded to a\\nposition of X under a bona fide commercial\\narrangement to work solely for X for at least the\\nminimum period;\\n(ii) who is on the payroll of the employer or X in that\\nperiod; and\\n(iii) whose salary and other remuneration (including\\ntraining expenditure incurred in respect of the\\nIncome Tax Act 1947\\n2020 Ed.\\n826\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nindividual) is borne (directly or indirectly) by X in\\nthat period.\\n(36) In determining whether the central hirer or employer\\nmentioned in subsection (35) satisfies the definition of “eligible\\nperson”\\nin\\nsubsection\\n(34),\\nthe\\nindividual\\nmentioned\\nin\\nsubsection (35)(a) or (b) is not treated as being employed by the\\ncentral hirer or the employer based on the payroll of the central hirer\\nor employer for the period in which the salary or other remuneration\\nof the individual (including any training expenditure incurred in\\nrespect of him or her) is borne by X.\\n[Act 30 of 2023 wef 30/10/2023]\\nPenalties for false information, etc., resulting in payment under\\nsection 37R\\n37S.—(1) Any person who —\\n(a) gives\\nto\\nthe\\nComptroller\\nany\\ninformation\\nunder\\nsection 37R(2) or (7) that is false in any material\\nparticular; or\\n(b) omits any material particular from any information or\\ndocument given under that provision to the Comptroller,\\nshall be guilty of an offence and shall on conviction be punished with\\na penalty that is equal to the amount of cash payout that has been\\nmade to the person or any other person as a result of the offence, or\\nwhich would have been made to the person or any other person if the\\noffence had not been detected.\\n(2) Any person who, without reasonable excuse or through\\nnegligence —\\n(a) gives\\nto\\nthe\\nComptroller\\nany\\ninformation\\nunder\\nsection 37R(2) or (7) that is false in any material\\nparticular; or\\n(b) omits any material particular from any information or\\ndocument given under that provision to the Comptroller,\\nshall be guilty of an offence and shall on conviction be punished with\\na penalty that is double the amount of cash payout that has been made\\nto the person or any other person as a result of the offence, or which\\nIncome Tax Act 1947\\n827\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nwould have been made to the person or any other person if the offence\\nhad not been detected, and shall also be liable to a fine not exceeding\\n$5,000 or to imprisonment for a term not exceeding 3 years or to both.\\n(3) Any person who wilfully with intent to obtain, or to assist\\nanother person to obtain, a cash payout or a higher amount of cash\\npayout which the person or that other person is not entitled to —\\n(a) gives\\nto\\nthe\\nComptroller\\nany\\ninformation\\nunder\\nsection 37R(2) or (7) that is false in any material\\nparticular or omits any material particular from any\\ninformation or document given under that provision; or\\n(b) gives any false answer, whether verbally or in writing, to\\nany question or request for information asked or made by\\nthe Comptroller,\\nshall be guilty of an offence and shall on conviction be punished with\\na penalty that is treble the amount of cash payout that has been made\\nto the person or that other person as a result of the offence, or which\\nwould have been made to the person or that other person if the offence\\nhad not been detected, and shall also be liable to a fine not exceeding\\n$10,000 or to imprisonment for a term not exceeding 3 years or to\\nboth.\\n(4) Any person who wilfully with intent to obtain, or to assist\\nanother person to obtain, a cash payout or a higher amount of cash\\npayout which the person or that other person is not entitled to —\\n(a) prepares or maintains or authorises the preparation or\\nmaintenance of any false books of account or other records\\nor falsifies or authorises the falsification of any books of\\naccount or other records; or\\n(b) makes use of any fraud, art or contrivance or authorises the\\nuse of such fraud, art or contrivance,\\nshall be guilty of an offence and shall on conviction be punished with\\na penalty that is 4 times the amount of cash payout that has been made\\nto the person or that other person as a result of the offence, or which\\nwould have been made to the person or that other person if the offence\\nhad not been detected, and shall also be liable to a fine not exceeding\\nIncome Tax Act 1947\\n2020 Ed.\\n828\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n$50,000 or to imprisonment for a term not exceeding 5 years or to\\nboth.\\n(5) Where an individual has been convicted of —\\n(a) 3 or more offences under subsection (3) or section 37M(3)\\nor 96;\\n(b) 2 or more offences under subsection (4) or section 37M(4)\\nor 96A; or\\n(c) one offence under either subsection (3) or section 37M(3)\\nor 96, and one offence under either subsection (4) or\\nsection 37M(4) or 96A,\\nthe imprisonment the individual shall be liable to shall not be less\\nthan 6 months.\\n(6) Where in any proceedings under subsection (3) it is proved that\\nany information that is false in a material particular is given to the\\nComptroller under section 37R(2) or (7) by or on behalf of any\\nperson, the person who gave the information is presumed, unless the\\ncontrary is proved, to have given it with intent to obtain, or to assist\\nthe person on whose behalf the information is given to obtain, a cash\\npayout or a higher amount of cash payout.\\n(7) Where in any proceedings under subsection (4) it is proved that\\nany false statement or entry is made in any books of account or other\\nrecords maintained by or on behalf of any person, the person who\\nmade the statement or entry is presumed, unless the contrary is\\nproved, to have made that false statement or entry with intent to\\nobtain, or to assist the person on whose behalf the statement or entry\\nis made to obtain, a cash payout or a higher amount of cash payout.\\n(8) The Comptroller may compound any offence under this section\\nother than subsection (4).\\n(9) In this section, a reference to the amount of cash payout that has\\nbeen made to a person as a result of an offence, or which would have\\nbeen made to the person if the offence had not been detected,\\nexcludes an amount of the cash payout that the person is entitled to.\\nIncome Tax Act 1947\\n829\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(10) In this section, “cash payout” means a payment under\\nsection 37R.\\n[Act 30 of 2023 wef 30/10/2023]\\nPART 10\\nASCERTAINMENT OF CHARGEABLE INCOME\\nAND PERSONAL RELIEFS\\nChargeable income\\n38. The chargeable income of any person for any year of\\nassessment is the remainder of the person’s assessable income for\\nthat year after the reliefs and deductions allowed in this Part have\\nbeen made.\\nRelief and deduction for resident individual\\n39.—(1) In the case of an individual resident in Singapore in the\\nyear of assessment, there is allowed a deduction, in respect of earned\\nincome, which is —\\n(a) in the case of an individual not falling within any other\\nparagraph, the sum of $1,000 or the amount of the earned\\nincome;\\n(b) without\\naffecting\\nany\\ndeduction\\nallowable\\nunder\\nparagraph (c) or (d), in the case of an individual who, in\\nthe year immediately preceding the year of assessment,\\nwas totally blind or had any physical or mental disability\\nwhich permanently and severely restricted the individual’s\\ncapacity for work, the sum of $4,000 or the amount of the\\nearned income;\\n[Act 30 of 2023 wef 30/10/2023]\\n(c) in the case of an individual who, at any time in the year\\nimmediately preceding the year of assessment, was above\\n55 years of age but was not above 60 years of age, the sum\\nof $6,000 or the amount of the earned income; and\\n(d) in the case of an individual who, at any time in the year\\nimmediately preceding the year of assessment, was above\\nIncome Tax Act 1947\\n2020 Ed.\\n830\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n60 years of age, the sum of $8,000 or the amount of earned\\nincome,\\nwhichever is less.\\n(2) In the case of an individual resident in Singapore in the year of\\nassessment who, in the year immediately preceding the year of\\nassessment —\\nDeduction for spouse\\n(a) had a spouse, living with or maintained by him or her,\\nwhose income was not more than $4,000 in that year, there\\nis allowed a deduction of $2,000;\\nDeduction for alimony\\n(b) [Deleted by Act 22 of 2011]\\nDeduction for payments under order or deed\\n(c) made payments in accordance with an order of court or a\\ndeed of separation to a wife from whom he was separated\\nby such order or deed, there is allowed a deduction of the\\namount of such payments or $2,000, whichever is less:\\nProvided that the total deductions allowed to any\\nindividual under this paragraph and paragraph (a) must not\\nexceed $2,000;\\nDeduction for spouse with physical or mental infirmity\\n(d) maintained a spouse —\\n(i) who was incapacitated by reason of physical or\\nmental infirmity; and\\n(ii) [Deleted by Act 29 of 2010]\\n(iii) in respect of whom no deduction has been claimed\\nby another person under paragraph (i) or (j),\\n(d) there is allowed in respect of —\\n(iv) such spouse a deduction of $5,500; or\\nIncome Tax Act 1947\\n831\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(v) such spouse (being his wife) from whom he was\\nseparated by an order of court or a deed of separation,\\na deduction of the amount of payments made in\\naccordance with such order or deed or $5,500,\\nwhichever is less:\\nProvided that the total deductions allowed to the\\nindividual under this paragraph and paragraph (a) or (c)\\nmust not exceed $5,500;\\n[Act 30 of 2023 wef 30/10/2023]\\nDeduction for children\\n(e) maintained a child who was unmarried throughout the year\\npreceding the year of assessment and —\\n(i) being below 16 years of age at any time during the\\nyear preceding the year of assessment;\\n(ii) receiving full‑time instruction at any university,\\ncollege, school or other educational institution;\\n(iii) serving under articles or indentures with a view to\\nqualifying in a trade or profession; or\\n(iv) incapacitated by reason of physical or mental\\ninfirmity,\\n(e) there is allowed in respect of each such child according to\\nhis or her age among those eligible, a deduction in\\naccordance with the Fifth Schedule:\\nProvided that in the case of any unmarried child\\nincapacitated by reason of physical or mental infirmity and\\nin respect of whom —\\n(v) a deduction is allowable under paragraph 1 of the\\nFifth Schedule, the deduction is increased to $5,500\\n(for the year of assessment 2012, 2013 or 2014) or\\n$7,500 (for the year of assessment 2015 or a\\nsubsequent year of assessment); or\\n[Act 33 of 2022 wef 04/11/2022]\\nIncome Tax Act 1947\\n2020 Ed.\\n832\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(vi) no deduction is allowable under the Fifth Schedule,\\nthere is allowed a deduction of $5,500 (for the year\\nof assessment 2012, 2013 or 2014) or $7,500 (for the\\nyear of assessment 2015 or a subsequent year of\\nassessment);\\n[Act 33 of 2022 wef 04/11/2022]\\n(f) [Deleted by Act 32 of 2019]\\nDeduction for life insurance and contributions to approved\\npension, provident fund or society\\n(g) has made insurance on the individual’s life or, in the case of\\na male individual, on the life of the individual’s wife with\\nany insurance company or has contributed as an employee\\nto an approved pension or provident fund or society or has\\nmade any contribution or suffered any abatement from the\\nindividual’s salary or pension under any Act for the time\\nbeing in force in Singapore relating to widows’ and\\norphans’ pensions or under any approved scheme within\\nthe meaning of any such Act, there is allowed a deduction\\nof the aggregate of all premiums for such insurance and all\\nsuch contributions and abatements paid, made or suffered\\nby the individual in that year:\\nProvided that —\\n(i) in the case of any policy securing a capital sum on\\ndeath (whether in conjunction with any other benefit\\nor not), the amount to be deducted in respect of that\\npolicy must not exceed 7% of that capital sum,\\nexclusive of any additional benefit by way of bonus,\\nprofits or otherwise;\\n(ii) the total deductions allowable under this paragraph\\nmust not exceed $5,000, except that where the sum\\nof the contributions mentioned in sub‑paragraphs (A)\\nand (B) exceeds $5,000, then the deduction allowed\\nunder this paragraph must be that sum:\\nIncome Tax Act 1947\\n833\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(A) contributions to any approved pension or\\nprovident fund under this paragraph, subject\\nto subsections (6) to (9);\\n(B) contributions to the Central Provident Fund\\nunder this paragraph, subject to subsections (6)\\nto (10);\\n[Act 39 of 2021 wef 01/01/2022]\\n(iia) [Deleted by Act 39 of 2021 wef 01/01/2022]\\n(iii) the deduction excludes any sum contributed to an\\napproved pension or provident fund or society unless\\nthe contribution of such sum thereto was obligatory\\nby reason of any contract of employment or of any\\nprovision in the rules or constitution of the fund or\\nsociety;\\n(iv) the deduction excludes any sum which has been\\nclaimed and allowed to a husband or wife under this\\nparagraph;\\n(v) no deduction is allowed unless the insurance\\ncompany has an office or a branch in Singapore,\\nbut this sub‑paragraph does not apply to any\\ninsurance contract entered into by an individual\\nresident in Singapore before 10 August 1973;\\n(vi) in the case of an individual who has made\\ncontributions to an approved pension or provident\\nfund,\\nthe\\ndeduction\\nmust\\nnot\\nexceed\\nthe\\ncontributions which would have been recoverable\\nunder section 7(2) of the Central Provident Fund\\nAct 1953 had contributions been payable in respect\\nof the individual to the Central Provident Fund;\\n(vii) despite sub‑paragraph (iii), no deduction is allowed\\nin respect of any sum contributed to the Central\\nProvident Fund for any period on or after 1 January\\n1999 by an employee who holds a professional visit\\npass or a work pass;\\nIncome Tax Act 1947\\n2020 Ed.\\n834\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(viii) no deduction is allowed where the premiums for such\\ninsurance are paid with funds standing in the\\nindividual’s SRS account;\\n(ix) in the case of an NOR individual who has elected for\\ntax exemption under section 13K(1) for the year of\\nassessment, the deduction must not exceed the\\ncontributions which would have been recoverable\\nunder section 7(2) of the Central Provident Fund\\nAct 1953 in respect of the NOR individual’s\\napportioned\\nemployment\\nincome\\nfor\\nthe\\nyear\\nimmediately preceding the year of assessment;\\nDeduction for CPF contributions by self‑employed\\n(h) has carried on a trade, business, profession or vocation and\\nhas made contributions to the Central Provident Fund on\\nhis or her own account, or has derived income from a trade,\\nbusiness,\\nprofession\\nor\\nvocation\\nand\\nhas\\nmade\\ncontributions in respect of such income to the Fund\\nwhich were obligatory under the Central Provident Fund\\nAct 1953, there is to be allowed a deduction, in respect of\\nsuch contributions, of an amount not exceeding 36% (for\\nthe year of assessment 2012, 2013, 2014 or 2015) or\\n37% (for the year of assessment 2016 or a subsequent year\\nof assessment), or such other rate as may be prescribed of\\nhis or her assessable income for that year of assessment\\nderived from such trade, business, profession or vocation\\nor $30,600 (for the year of assessment 2012, 2013, 2014 or\\n2015), $31,450 (for the year of assessment 2016) or\\n$37,740 (for the year of assessment 2017 or a subsequent\\nyear of assessment), or such other amount as may be\\nprescribed, whichever is less:\\nProvided that —\\n(i) where the sum of contributions to any approved\\npension\\nor\\nprovident\\nfund\\nor\\nsociety\\nunder\\nparagraph (g) and this paragraph exceeds $5,000,\\nIncome Tax Act 1947\\n835\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nno deduction must be allowed under paragraph (g) in\\nrespect of premiums for life insurance;\\n[Act 39 of 2021 wef 01/01/2022]\\n(ia) [Deleted by Act 39 of 2021 wef 01/01/2022]\\n(ii) the total deductions allowable under paragraph (g)\\nand this paragraph in respect of contributions to any\\napproved pension or provident fund or society must\\nnot exceed $30,600 (for the year of assessment 2012,\\n2013, 2014 or 2015), $31,450 (for the year of\\nassessment 2016) or $37,740 (for the year of\\nassessment\\n2017\\nor\\na\\nsubsequent\\nyear\\nof\\nassessment), or such other amount as may be\\nprescribed where the deduction allowable under\\nparagraph (g) is less than $30,600 (for the year of\\nassessment 2012, 2013, 2014 or 2015), $31,450 (for\\nthe year of assessment 2016) or $37,740 (for the year\\nof assessment 2017 or a subsequent year of\\nassessment), or such other amount as may be\\nprescribed in respect of such contributions;\\n[Act 33 of 2022 wef 04/11/2022]\\n(iii) no deduction is allowed under this paragraph where a\\ndeduction\\nof\\n$30,600\\n(for\\nthe\\nyear\\nof\\nassessment 2012, 2013, 2014 or 2015), $31,450\\n(for the year of assessment 2016) or $37,740 (for the\\nyear of assessment 2017 or a subsequent year of\\nassessment), or such other amount as may be\\nprescribed\\nor\\nmore\\nhas\\nbeen\\nallowed\\nunder\\nparagraph (g) in respect of contributions to any\\napproved pension or provident fund or society;\\n[Act 33 of 2022 wef 04/11/2022]\\n(iv) where the total deductions allowable under this\\nparagraph in respect of contributions which are\\nobligatory\\nunder\\nthe\\nCentral\\nProvident\\nFund\\nAct 1953 and under paragraph (g) in respect of\\ncontributions to any approved pension or provident\\nfund or society exceed $30,600 (for the year of\\nassessment 2012, 2013, 2014 or 2015), $31,450 (for\\nIncome Tax Act 1947\\n2020 Ed.\\n836\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthe year of assessment 2016) or $37,740 (for the year\\nof assessment 2017 or a subsequent year of\\nassessment), or such other amount as may be\\nprescribed, sub‑paragraphs (ii) and (iii) do not\\napply to such amount of contributions in excess of\\n$30,600 (for the year of assessment 2012, 2013,\\n2014\\nor\\n2015),\\n$31,450\\n(for\\nthe\\nyear\\nof\\nassessment 2016) or $37,740 (for the year of\\nassessment\\n2017\\nor\\na\\nsubsequent\\nyear\\nof\\nassessment), or such other amount as may be\\nprescribed which are allowable under this paragraph;\\n[Act 33 of 2022 wef 04/11/2022]\\nDeduction for aged parents\\n(i) maintained any dependant living in Singapore —\\n(i) who was his or her or his or her spouse’s parent,\\ngrandparent or great‑grandparent; and\\n(ii) [Deleted by Act 29 of 2010]\\n(iii) in respect of whom no deduction has been claimed\\nby another person under paragraph (a), (c) or (d),\\n(i) there is to be allowed, under sub‑paragraph (iv) or (v) but\\nnot both, in respect of —\\n(iv) each such dependant who was not less than 55 years\\nof age and whose income was not more than $4,000\\nin that year —\\n(A) a deduction of $9,000, where the dependant\\nwas living with him or her in the same\\nhousehold; or\\n(B) a deduction of $5,500, where the dependant\\nwas not living with him or her in the same\\nhousehold but in respect of whom a sum of not\\nless than $2,000, or such lower sum as the\\nComptroller may determine, was incurred in\\nthat year by the individual in maintaining the\\ndependant; or\\nIncome Tax Act 1947\\n837\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(v) each such dependant who was incapacitated by\\nreason of physical or mental infirmity —\\n(A) a deduction of $14,000, where the dependant\\nwas living with him or her in the same\\nhousehold; or\\n(B) a deduction of $10,000, where the dependant\\nwas not living with him or her in the same\\nhousehold but in respect of whom a sum of not\\nless than $2,000, or such lower sum as the\\nComptroller may determine, was incurred in\\nthat year by the individual in maintaining the\\ndependant:\\nProvided that —\\n(vi) no individual may obtain a deduction under this\\nparagraph for more than 2 dependants; and\\n(vii) where more than one individual claims a deduction\\nunder this paragraph in respect of the same\\ndependant —\\n(A) the deduction is to be apportioned between the\\nclaimants in such proportions as they may\\nagree or, failing such agreement, the deduction\\nis to be apportioned equally between all the\\nclaimants; and\\n(B) where at least one of the claimants was living\\nwith the dependant in the same household in\\nthe year immediately preceding the year of\\nassessment, the amount of deduction to be\\napportioned between the claimants is the\\namount set out in sub‑paragraph (iv)(A) or\\n(v)(A), as the case may be;\\nIncome Tax Act 1947\\n2020 Ed.\\n838\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nDeduction for maintenance for siblings with physical or mental\\ninfirmity\\n(j) maintained any dependant living in Singapore —\\n(i) who is his or her or his or her spouse’s brother or\\nsister;\\n(ii) who was incapacitated by reason of physical or\\nmental infirmity;\\n(iii) [Deleted by Act 29 of 2010]\\n(iv) in respect of whom no deduction has been claimed\\nby another person under paragraph (a), (c), (d) or (e);\\nand\\n(v) who was living with him or her in the same\\nhousehold or in respect of whom a sum of not less\\nthan $2,000, or such lower sum as the Comptroller\\nmay determine, was incurred in that year by the\\nindividual in maintaining the dependant,\\n(j) there is to be allowed in respect of each such dependant a\\ndeduction of $5,500; and where more than one individual\\nis entitled to claim a deduction in respect of the same\\ndependant, the deduction is to be apportioned in such\\nmanner as appears to the Comptroller to be reasonable;\\n[Act 30 of 2023 wef 30/10/2023]\\nDeduction for course fees\\n(k) had attended any course of study, seminar or conference\\nfor the purpose of gaining an approved academic,\\nprofessional or vocational qualification, or had attended\\nsuch other approved course, seminar or conference as is\\nrelated to his or her trade, business, profession, vocation or\\nemployment, there is to be allowed a deduction of the\\namount incurred by him or her in that year on the fees for\\nsuch\\ncourse,\\nseminar\\nor\\nconference\\n(including\\nexamination, tuition and registration fees), subject to\\nsubsection (12B); but no deduction is allowed under this\\nIncome Tax Act 1947\\n839\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nparagraph in respect of any sum which has been allowed\\nunder subsection (12A) or section 14;\\nDeduction for operationally ready national servicemen\\n(l) [Deleted by Act 7 of 2007]\\n(m) was the wife or widow of an operationally ready national\\nserviceman and was a citizen of Singapore who had not\\nmade a claim under paragraph (n), there is to be allowed a\\ndeduction of $750 subject to the following provisions:\\n(i) the marriage to such national serviceman had not\\nbeen dissolved by divorce or annulment at the end of\\nthe basis period for that year of assessment;\\n(ii) where the wife of such national serviceman dies\\nduring the basis period for that year of assessment,\\nher executor is not entitled to a deduction under this\\nparagraph if such national serviceman remarries\\nduring that basis period;\\n(iii) where such national serviceman has more than one\\nwife, the deduction under this paragraph in respect of\\nsuch national serviceman is allowed to any one wife\\nas such national serviceman may nominate;\\n(iv) where such national serviceman has more than one\\nwidow, only the widow who was nominated under\\nsub‑paragraph (iii) is allowed a deduction under this\\nparagraph;\\n(v) no deduction under this paragraph is allowed to a\\nwife of such national serviceman who is not entitled\\nto a deduction under subsection (2A) or (2B) for that\\nyear of assessment; and\\n(vi) where such national serviceman dies during the basis\\nperiod for any year of assessment for which he is not\\nentitled to a deduction under subsection (2A) or\\n(2B), no deduction under this paragraph is allowed to\\nhis widow for that year of assessment;\\nIncome Tax Act 1947\\n2020 Ed.\\n840\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(n) was a parent of an operationally ready national serviceman\\nand was a citizen of Singapore who had not made a claim\\nunder paragraph (m) or subsection (2A) or (2B), there is to\\nbe allowed a deduction of $750 subject to the following\\nprovisions:\\n(i) such national serviceman is a legitimate child,\\nstepchild or child adopted under any written law\\nrelating to the adoption of children;\\n(ii) where more than 2 parents claim the deduction under\\nthis\\nparagraph\\nin\\nrespect\\nof\\nsuch\\nnational\\nserviceman, the deduction in respect of such\\nnational serviceman is allowed to any 2 parents as\\nsuch national serviceman may nominate;\\n(iii) where such national serviceman has died, his parents\\ncontinue to be allowed a deduction under this\\nparagraph, except that where he dies during the\\nbasis period for any year of assessment for which he\\nis not entitled to a deduction under subsection (2A)\\nor (2B), his parents are not allowed a deduction\\nunder this paragraph for that year of assessment;\\n(iv) where a parent has more than one child who is an\\noperationally\\nready\\nnational\\nserviceman,\\nthe\\ndeduction under this paragraph is allowed to the\\nparent\\nin\\nrespect\\nof\\nonly\\none\\nsuch\\nnational\\nserviceman; and\\n(v) no deduction under this paragraph is allowed to a\\nparent of an operationally ready national serviceman\\nwho\\nis\\nnot\\nentitled\\nto\\na\\ndeduction\\nunder\\nsubsection (2A) or (2B) for that year of assessment;\\nDeduction for contributions under Supplementary Retirement\\nScheme\\n(o) has contributed by himself or herself or by his or her\\nemployer on his or her behalf to an SRS account with an\\nSRS operator, there is to be allowed a deduction of the\\namount of such contribution up to the amount of the SRS\\nIncome Tax Act 1947\\n841\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\ncontribution cap applicable to him or her as determined in\\naccordance with regulations made under section 10G(11),\\nexcept that no deduction is allowed if —\\n(i) the individual’s SRS account is suspended as at\\n31 December of the year immediately preceding the\\nyear of assessment under regulations made under\\nsection 10G; or\\n(ii) the amount of such contribution is withdrawn from\\nhis or her SRS account within the year immediately\\npreceding the year of assessment:\\nProvided that where an SRS member is an NOR\\nindividual who has elected for tax exemption under\\nsection 13K(1) for the year of assessment, the deduction\\nmust not exceed the contributions to the SRS account in\\nrespect of his or her apportioned employment income for\\nthe year immediately preceding the year of assessment;\\nDeduction for grandparent caregiver\\n(p) was a married woman, widow or divorcee whose parent or\\ngrandparent, or parent or grandparent of her husband or of\\nher previous husband —\\n(i) was living in Singapore;\\n(ii) was looking after any of her children who is a citizen\\nof Singapore and —\\n(A) was 12 years of age and below at any time\\nduring\\nthe\\nyear\\npreceding\\nthe\\nyear\\nof\\nassessment; or\\n(B) was unmarried throughout the year preceding\\nthe year of assessment, and also incapacitated\\nby reason of physical or mental infirmity; and\\n(iii) either —\\n(A) where the year of assessment is between the\\nyear\\nof\\nassessment\\n2005\\nand\\nyear\\nof\\nassessment 2023 (both years inclusive) —\\nIncome Tax Act 1947\\n2020 Ed.\\n842\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nwas not carrying on any trade, business,\\nprofession, vocation or employment in the\\nyear preceding the year of assessment; or\\n(B) where the year of assessment is the year of\\nassessment 2024 or any subsequent year of\\nassessment — did not derive income that\\nexceeds an aggregate of $4,000 from any\\ntrade,\\nbusiness,\\nprofession,\\nvocation\\nor\\nemployment or a combination thereof in the\\nyear preceding the year of assessment,\\n(p) there is to be allowed against her earned income a\\ndeduction of $3,000 in respect of one such parent or\\ngrandparent only, except that —\\n(iv) a deduction under this paragraph in respect of that\\nparent or grandparent may be allowed to one woman\\nonly; and\\n(v) where more than one woman claims a deduction\\nunder this paragraph in respect of the same parent or\\ngrandparent, a deduction may be allowed to such\\nclaimant as the women may agree or (failing such\\nagreement) to such claimant as determined by the\\nComptroller whose decision is final.\\n[Act 39 of 2021 wef 01/01/2022]\\n[Act 30 of 2023 wef 30/10/2023]\\n(q) [Deleted by Act 39 of 2021 wef 01/01/2022]\\n(2AA) In subsection (2)(p), “child” has the meaning given by\\nparagraph 7 of the Fifth Schedule.\\n[32/2019]\\n(2A) In the case of an individual resident in Singapore in the year of\\nassessment who was an operationally ready national serviceman and\\nwho —\\n(a) had performed operationally ready national service during\\nthe relevant period; and\\n(b) is certified by the proper authority as being entitled to the\\ndeduction under this subsection,\\nIncome Tax Act 1947\\n843\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthere is to be allowed —\\n(c) a deduction of $3,000 if the individual is not a NS key\\ncommand and staff appointment holder at any time during\\nthe relevant period; or\\n(d) a deduction of $5,000 if the individual is a NS key\\ncommand and staff appointment holder at any time during\\nthe relevant period.\\n(2B) In the case of an individual resident in Singapore in the year of\\nassessment who was an operationally ready national serviceman and\\nwho —\\n(a) had not performed operationally ready national service\\nduring the relevant period; and\\n(b) is certified by the proper authority as being entitled to the\\ndeduction under this subsection,\\nthere is to be allowed —\\n(c) a deduction of $1,500 if the individual is not a NS key\\ncommand and staff appointment holder at any time during\\nthe relevant period; or\\n(d) a deduction of $3,500 if the individual is a NS key\\ncommand and staff appointment holder at any time during\\nthe relevant period.\\n(3) In the case of an individual resident in Singapore in the year of\\nassessment who, in the year preceding the year of assessment, was a\\ncitizen or permanent resident of Singapore and —\\n(a) has paid money in accordance with section 18 of the\\nCentral Provident Fund Act 1953 to the retirement account\\nor special account of the individual’s spouse, sibling,\\nparent, parent-in-law, grandparent or grandparent-in-law\\nor 2 or more of those accounts; or\\n(b) has made any voluntary contribution under section 13B of\\nthe Central Provident Fund Act 1953 and has directed an\\namount of such contribution to be paid to the medisave\\naccount of the individual’s spouse, sibling, parent, parent-\\nin-law, grandparent or grandparent-in-law or 2 or more of\\nIncome Tax Act 1947\\n2020 Ed.\\n844\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthose accounts (called in this subsection and subsection\\n(3AA) a medisave contribution),\\nthere is to be allowed for that year of assessment a deduction of the\\nlower of the following amounts:\\n(c) the sum of —\\n(i) the amount of the payment to a retirement account or\\na special account mentioned in paragraph (a) or (as\\nthe case may be) the total amount of all such\\npayments, subject to the applicable maximum relief\\namount prescribed by rules made under section 7 for\\nthat year of assessment; and\\n(ii) the amount of the medisave contribution mentioned\\nin paragraph (b) or (as the case may be) the total\\namount of all such medisave contributions, subject to\\nthe applicable maximum relief amount prescribed by\\nrules made under section 7 for that year of\\nassessment;\\n(d) the deduction limit for the year of assessment prescribed by\\nrules made under section 7.\\n[Act 39 of 2021 wef 01/01/2022]\\n(3AA) Subsection\\n(3)(c)\\nexcludes\\na\\npayment\\nor\\nmedisave\\ncontribution mentioned in subsection (3)(a) or (b) (as the case may\\nbe) to the individual’s spouse’s or sibling’s retirement account,\\nspecial account or medisave account if —\\n(a) at the time the payment or medisave contribution was\\nmade, that spouse or sibling was not incapacitated by\\nreason of physical or mental infirmity; and\\n(b) that spouse’s or sibling’s income exceeds $4,000 in the\\nyear preceding the year in which the payment or medisave\\ncontribution was made.\\n[Act 39 of 2021 wef 01/01/2022]\\n(3A) In the case of an individual resident in Singapore in the year of\\nassessment who, in the year preceding the year of assessment, was a\\ncitizen or permanent resident of Singapore and who, or whose\\nemployer on his or her behalf, has —\\nIncome Tax Act 1947\\n845\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(a) in the year preceding the year of assessment paid money to\\nthe individual’s retirement account or special account in\\naccordance with section 18 of the Central Provident Fund\\nAct 1953; or\\n(b) in the year preceding the year of assessment made a\\nvoluntary contribution under section 13B of the Central\\nProvident Fund Act 1953 and has directed an amount of\\nsuch contribution to be paid to the individual’s medisave\\naccount, excluding such amount of contribution allowed a\\ndeduction under section 39(2)(h) (called in this subsection\\na medisave self-contribution),\\nthere is to be allowed for that year of assessment a deduction of the\\nlower of the following amounts:\\n(c) the sum of —\\n(i) the amount of the payment to the retirement account\\nor special account mentioned in paragraph (a) or (as\\nthe case may be) the total amount of all such\\npayments, subject to the applicable maximum relief\\namount prescribed by rules made under section 7 for\\nthat year of assessment; and\\n(ii) the\\namount\\nof\\nthe\\nmedisave\\nself-contribution\\nmentioned in paragraph (b) or (as the case may be)\\nthe\\ntotal\\namount\\nof\\nall\\nsuch\\nmedisave\\nself-\\ncontributions, subject to the applicable maximum\\nrelief amount prescribed by rules made under\\nsection 7 for that year of assessment;\\n(d) the deduction limit for that year of assessment prescribed\\nby rules made under section 7.\\n[Act 39 of 2021 wef 01/01/2022]\\n(3B) The rules mentioned in subsections (3) and (3A) may —\\n(a) prescribe different maximum relief amounts for —\\n(i) different individuals or classes of individuals; and\\n(ii) contributions to the retirement account, the special\\naccount or the medisave account;\\nIncome Tax Act 1947\\n2020 Ed.\\n846\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) prescribe different deduction limits for the purposes of\\nsubsections (3) and (3A);\\n(c) provide for the manner of computation of such applicable\\nmaximum relief amounts and deduction limits; and\\n(d) take effect from (and including) the year of assessment\\n2023 or a later year of assessment.\\n[Act 39 of 2021 wef 01/01/2022]\\n(4) For any year of assessment, an individual may only be the\\nsubject of a claim or claims for the individual’s maintenance under\\none dependant provision; and if claims are made under more than one\\ndependant provision, then, subject to any priority given to any claim\\nin the applicable dependant provision, the deduction is to be allowed\\nto the claimant or claimants (as the case may be) under only one of\\nthose dependant provisions, being —\\n(a) the dependant provision that all the claimants have agreed\\non; or\\n(b) if the claimants are unable to agree on a dependant\\nprovision, the dependant provision determined by the\\nComptroller.\\n[2/2016]\\n(4A) In subsection (4), “dependant provision” means paragraph (a),\\n(c), (d), (e), (i) or (j) of subsection (2).\\n[2/2016]\\n(4B) Despite subsection (4), for any year of assessment, an\\nindividual may be the subject of claims for the individual’s\\nmaintenance under paragraphs (a), (c) and (d) of subsection (2), or\\nany 2 of those paragraphs.\\n[2/2016]\\n(5) For the purposes of subsections (3) and (3A), a claim for\\ndeduction may only be granted if the claim contains such particulars\\nand is supported by such proof as the Comptroller may require.\\n(6) Where in any year an individual has made contributions to the\\nCentral Provident Fund in respect of additional wages paid to him or\\nher in that year, no deduction is allowed for any contributions in\\nrespect of that part of his or her additional wages which exceeds the\\nspecified amount paid to him or her in that year.\\nIncome Tax Act 1947\\n847\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(7) Where in any year an individual is employed by 2 or more\\nemployers and the employers are related to each other within the\\nmeaning of section 10B(9), subsection (6) applies as if all the\\nordinary and additional wages from those related employers were\\npaid by one employer.\\n(8) Subsections (6) and (7) apply, with the necessary modifications,\\nto contributions made by an individual to an approved pension or\\nprovident fund as if those contributions were contributions made to\\nthe Central Provident Fund; except that subsection (6) only applies to\\nan approved pension or provident fund designated by the Minister for\\nthis purpose.\\n(9) Where in any year an individual has made contributions to the\\nCentral Provident Fund or to a pension or provident fund designated\\nunder subsection (8), in addition to any other approved pension or\\nprovident fund, no deduction is allowed in respect of the whole of the\\ncontributions made to that approved pension or provident fund.\\n(10) For the purposes of subsection (2)(g), where in any year an\\nindividual has made contributions (not being contributions under\\nsection 7(2) of the Central Provident Fund Act 1953) to the Central\\nProvident Fund in respect of overseas ordinary wages or overseas\\nadditional wages paid to him or her by any relevant employer in that\\nyear, no deduction is allowed for any contributions in respect of\\noverseas ordinary wages or overseas additional wages arising from\\nsources outside Singapore.\\n(11) For the year of assessment 2024 and any preceding year of\\nassessment, in the case of a woman resident in Singapore who, in the\\nyear immediately preceding the year of assessment, is —\\n(a) living with her husband;\\n(b) married and her husband is not resident in Singapore; or\\n(c) married but separated from her husband, a divorcee or a\\nwidow and who, in the year immediately preceding the\\nyear of assessment, has any unmarried child or children\\nliving with her in the same household in Singapore in\\nrespect of whom she may be allowed a deduction under\\nsubsection (2)(e),\\nIncome Tax Act 1947\\n2020 Ed.\\n848\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthere is to be allowed a deduction against her earned income equal to\\ntwice the amount of levy imposed under the Employment of Foreign\\nManpower Act 1990 (excluding any amount paid by way of penalty)\\nand paid in the year immediately preceding the year of assessment in\\nrespect of one domestic servant employed by her or her husband.\\n[Act 30 of 2023 wef 30/10/2023]\\n(12) Where an individual has commenced a new trade, business,\\nprofession, vocation or employment within 2 years of assessment\\nfrom the year of assessment relating to the year in which he or she\\ncompleted any course of study or attended any seminar or conference\\non or after 1 January 2003 (other than those mentioned in\\nsubsections (2)(k) and (12A), or where a deduction in respect of\\nwhich has been allowed under section 14) which is related to the new\\ntrade, business, profession, vocation or employment, there is to be\\nallowed to him or her on due claim a deduction of the amount\\nincurred by him or her on the fees for such course, seminar or\\nconference (including examination, tuition and registration fees),\\nsubject to subsection (12B) and the following conditions:\\n(a) the individual is resident in Singapore in the year of\\nassessment for which he or she makes the claim;\\n(b) the claim is made within 2 years of assessment from the\\nyear of assessment relating to the year in which he or she\\ncompleted\\nthe\\ncourse\\nor\\nattended\\nthe\\nseminar\\nor\\nconference;\\n(c) the claim is made in the year of assessment relating to the\\nyear in which he or she commences the new trade,\\nbusiness, profession, vocation or employment or in the\\nyear of assessment immediately following that year of\\nassessment.\\n(12A) Where an individual has incurred in any year an amount on\\nthe fees (including examination, tuition and registration fees) of any\\ncourse of study completed on or after 1 January 2008 or any seminar\\nor conference attended on or after 1 January 2008 for the purpose of\\ngaining\\nan\\napproved\\nacademic,\\nprofessional\\nor\\nvocational\\nqualification, there is to be allowed to him or her on due claim a\\nIncome Tax Act 1947\\n849\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\ndeduction in respect of those fees in a year of assessment subsequent\\nto the year in which the fees were incurred, being —\\n(a) the first such year of assessment in which the assessable\\nincome of the individual exceeds $22,000; or\\n(b) the second subsequent year of assessment from the year of\\nassessment relating to the year in which he or she\\ncompleted\\nthe\\ncourse\\nor\\nattended\\nthe\\nseminar\\nor\\nconference for which the fees were incurred,\\nwhichever is the earlier, subject to subsection (12B) and the following\\nconditions:\\n(c) the individual is resident in Singapore in the year of\\nassessment for which he or she makes the claim;\\n(d) no deduction of such amount has been allowed under\\nsubsection (2)(k) or section 14.\\n(12B) The total amount of deduction in respect of fees allowed to an\\nindividual for any year of assessment in respect of one or more\\ncourses of study, seminars or conferences under subsections (2)(k),\\n(12) and (12A) must not exceed $5,500.\\n(13) In this section —\\n“additional wages” has the meaning given by the Central\\nProvident Fund Act 1953;\\n“apportioned employment income” has the meaning given by\\nsection 13K(7);\\n“approved” means approved by the Minister or such person as\\nthe Minister may appoint;\\n“basic healthcare sum”, in relation to an individual, means the\\nmaximum\\namount\\ndirected\\nby\\nthe\\nMinister\\nunder\\nsection 13(6) of the Central Provident Fund Act 1953;\\n“NOR individual” has the meaning given by section 13K(7);\\n“NS key command and staff appointment holder” means a\\nperson appointed as such by the proper authority;\\nIncome Tax Act 1947\\n2020 Ed.\\n850\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“operationally ready national serviceman” means any person\\nwho has completed national service under the Enlistment\\nAct 1970 or been deemed to have completed such service by\\nthe proper authority;\\n“ordinary wages” has the same meaning as “ordinary wages for\\nthe month” in the Central Provident Fund Act 1953;\\n“overseas additional wages”, “overseas ordinary wages”,\\n“overseas total wages”, “relevant employer” and “specified\\namount” have the meanings given by section 10B(12);\\n“proper authority” means such person as the Minister may\\nappoint;\\n“relevant period”, in relation to any year of assessment, means\\nthe period beginning from 1 April of the year immediately\\npreceding the year of assessment and ending on 31 March of\\nthe subsequent year;\\n“total wages”, in relation to any year, means the total of the\\nordinary and additional wages in that year received by an\\nemployee;\\n“year” means any year from 1 January to 31 December (both\\ndates inclusive).\\n[37/2014; 2/2016]\\nLimit on total deduction under section 39\\n39A. Despite anything in section 39 or the Fifth Schedule, for the\\nyear of assessment 2018 and every subsequent year of assessment,\\nthe total amount of all deductions allowable to any individual under\\nsection 39 must not exceed $80,000 for that year of assessment.\\n[34/2016]\\n40. [Repealed by Act 41 of 2020]\\nRelief for non‑resident public entertainers\\n40A.—(1) This section applies to a person who, in any year of\\nassessment, is not resident in Singapore and who derives income as a\\npublic entertainer or derives such income and income from any other\\nIncome Tax Act 1947\\n851\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nsource in the year preceding that year of assessment which does not\\ninclude —\\n(a) any withdrawal from the person’s SRS account deemed to\\nbe income subject to tax under section 10G; or\\n(b) income from the exercise of any other employment in\\nSingapore.\\n(2) Subject to subsection (2A), any person to whom this section\\napplies is, if the tax payable by the person in respect of that year is\\nattributable to income derived as a public entertainer, allowed relief\\nin respect of that year in the following manner:\\n(a) where the only source of income in Singapore is such\\nactivity as a public entertainer, by reduction of the rate of\\ntax to 15% on every dollar of the chargeable income;\\n(b) where such person possesses any other source of income in\\nSingapore and the total assessable income exceeds the\\nstatutory income attributable to such activity as a public\\nentertainer, by reduction of the rate of tax to 15% on such\\npart of the chargeable income as bears the same proportion\\nto the total chargeable income as the statutory income\\nattributable to such activity as a public entertainer bears to\\nthe total assessable income;\\n(c) where such person possesses any other source of income in\\nSingapore and the total assessable income is equal to or\\nless than the statutory income attributable to such activity\\nas a public entertainer, by reduction of the rate of tax to\\n15% on every dollar of the chargeable income.\\n(2A) For the purpose of subsection (2), in relation to income\\nderived by a person as a public entertainer during the period from\\n22 February 2010 to 31 March 2022 (both dates inclusive), the\\nreferences to 15% are each read as 10%.\\n[37/2014; 41/2020]\\n(3) [Deleted by Act 41 of 2020]\\nIncome Tax Act 1947\\n2020 Ed.\\n852\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(4) In this section —\\n“public entertainer” means a stage, radio or television artiste, a\\nmusician, an athlete or an individual exercising any\\nprofession, vocation or employment of a similar nature;\\n“statutory income attributable to such activity as a public\\nentertainer” means the statutory income derived from such\\nsource ascertained in accordance with section 35(1);\\n“total assessable income” means the remainder of the statutory\\nincome of any person after the deduction allowed under\\nsection 37(3)(a) has been made.\\nRelief for non‑resident employees\\n40B.—(1) This section applies to a person who, in any year of\\nassessment, is not resident in Singapore and who derives income\\nfrom the exercise of any employment in Singapore or derives such\\nincome and income from any other source in the year preceding that\\nyear of assessment which does not include —\\n(a) any withdrawal from the person’s SRS account deemed to\\nbe income subject to tax under section 10G; or\\n(b) income derived as a public entertainer within the meaning\\nof section 40A.\\n(2) Any person to whom this section applies is, if the tax payable by\\nthe person in respect of that year is attributable to income derived\\nfrom the exercise of an employment in Singapore, allowed relief in\\nrespect of that year in the following manner:\\n(a) where the only source of income in Singapore is such\\nactivity as a non‑resident employee, by reduction of the\\nrate of tax to 15% on every dollar of the chargeable\\nincome;\\n(b) where such person possesses any other source of income in\\nSingapore and the total assessable income exceeds the\\nstatutory income attributable to such activity as a\\nnon‑resident employee, by reduction of the rate of tax to\\n15% on such part of the chargeable income as bears the\\nsame proportion to the total chargeable income as the\\nIncome Tax Act 1947\\n853\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nstatutory income attributable to such activity as a\\nnon‑resident employee bears to the total assessable\\nincome;\\n(c) where such person possesses any other source of income in\\nSingapore and the total assessable income is equal to or\\nless than the statutory income attributable to such activity\\nas a non‑resident employee, by reduction of the rate of tax\\nto 15% on every dollar of the chargeable income.\\n(3) The relief available to any person under subsection (2) must be\\nso limited that the tax payable in respect of such income must not be\\nless than that which would be payable by a resident of Singapore in\\nthe same circumstances.\\n(3A) To avoid doubt, for the purpose of subsection (3), section 39A\\napplies to the computation of the tax that would be payable by a\\nresident of Singapore in the circumstances mentioned in that\\nsubsection.\\n[34/2016]\\n(4) [Deleted by Act 41 of 2020]\\n(5) In this section —\\n“non‑resident\\nemployee”\\nmeans\\nan\\nindividual\\nwho\\nhas\\nexercised an employment in Singapore for such period of\\ntime as not to qualify for the status of a resident and includes\\nan individual who is in receipt of leave pay attributable to a\\nperiod of employment in Singapore but excludes a director of\\na company;\\n“statutory income attributable to such activity as a non‑resident\\nemployee” means the statutory income derived from such\\nsource ascertained in accordance with section 35(1);\\n“total assessable income” means the remainder of the statutory\\nincome of any person after the deduction allowed under\\nsection 37(3)(a) has been made.\\nRelief for non‑resident SRS members\\n40C.—(1) This section applies to a person who, in any year of\\nassessment, is not resident in Singapore and who makes any\\nIncome Tax Act 1947\\n2020 Ed.\\n854\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nwithdrawal from the person’s SRS account which is deemed to be\\nincome subject to tax under section 10G or derives such income and\\nincome from any other source in the year preceding that year of\\nassessment which does not include —\\n(a) income from the exercise of any employment in Singapore;\\nor\\n(b) income derived as a public entertainer within the meaning\\nof section 40A.\\n(2) Any person to whom this section applies is, if the tax payable by\\nthe person in respect of that year of assessment is attributable to\\nwithdrawals from the person’s SRS account, allowed relief in respect\\nof that year of assessment in the following manner:\\n(a) where the withdrawals from the person’s SRS account are\\nthe person’s only source of income, by reduction of the rate\\nof tax to 15% on every dollar of the chargeable income;\\n(b) where the person possesses any other source of income in\\nSingapore and the total assessable income exceeds the\\nstatutory income attributable to the withdrawals from the\\nperson’s SRS account, by reduction of the rate of tax to\\n15% on such part of the chargeable income as bears the\\nsame proportion to the total chargeable income as the\\nstatutory income attributable to the withdrawals from the\\nperson’s SRS account bears to the total assessable income;\\n(c) where the person possesses any other source of income in\\nSingapore and the total assessable income is equal to or\\nless\\nthan\\nthe\\nstatutory\\nincome\\nattributable\\nto\\nthe\\nwithdrawals\\nfrom\\nthe\\nperson’s\\nSRS\\naccount,\\nby\\nreduction of the rate of tax to 15% on every dollar of the\\nchargeable income.\\n(3) The relief available to any person under subsection (2) must be\\nso limited that the tax payable in respect of such income must not be\\nless than that which would be payable by a resident of Singapore in\\nthe same circumstances.\\n(3A) To avoid doubt, for the purpose of subsection (3), section 39A\\napplies to the computation of the tax that would be payable by a\\nIncome Tax Act 1947\\n855\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nresident of Singapore in the circumstances mentioned in that\\nsubsection.\\n[34/2016]\\n(4) [Deleted by Act 41 of 2020]\\n(5) In this section —\\n“statutory income attributable to the withdrawals from the\\nperson’s SRS account” means the statutory income of a\\nperson derived from such source as ascertained under\\nsection 35(1);\\n“total assessable income” means the remainder of the statutory\\nincome of a person after the deduction allowed under\\nsection 37(3)(a) has been made;\\n“withdrawals from the person’s SRS account” means all\\nwithdrawals from the SRS account of a person which are\\ndeemed to be income subject to tax under section 10G.\\nRelief for non‑resident deriving income from activity as public\\nentertainer and employee, etc.\\n40D.—(1) This section applies to a person who, in any year of\\nassessment, is not resident in Singapore and who derives income\\nfrom 2 or more of the following sources (called in this section\\nrelevant income) in the year preceding that year of assessment:\\n(a) income derived as a public entertainer within the meaning\\nof section 40A;\\n(b) income from the exercise of any employment in Singapore;\\nand\\n(c) any withdrawal from the person’s SRS account.\\n(2) Any person to whom this section applies is, if the tax payable by\\nthe person in respect of that year of assessment is attributable to the\\nrelevant income, allowed relief in respect of that year of assessment\\nin the following manner:\\n(a) where the person only derives the relevant income in\\nSingapore, by reduction of the rate of tax to the rate\\nspecified under section 40A, 40B or 40C (as the case may\\nIncome Tax Act 1947\\n2020 Ed.\\n856\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nbe) on every dollar of the chargeable income attributable to\\nthe source of income mentioned in subsection (1)(a), (b) or\\n(c), respectively;\\n(b) where the person possesses any other source of income in\\nSingapore and the total assessable income exceeds the\\nstatutory income attributable to the sources giving rise to\\nthe relevant income, by reduction of the rate of tax to —\\n(i) the rate of tax specified in section 40A(2) on such\\npart of the chargeable income as bears the same\\nproportion to the total chargeable income as the\\nstatutory income attributable to such activity as a\\npublic entertainer bears to the total assessable\\nincome;\\n(ii) the rate of tax specified in section 40B(2) on such\\npart of the chargeable income as bears the same\\nproportion to the total chargeable income as the\\nstatutory income attributable to such activity as a\\nnon‑resident employee bears to the total assessable\\nincome; and\\n(iii) the rate of tax specified in section 40C(2) on such\\npart of the chargeable income as bears the same\\nproportion to the total chargeable income as the\\nstatutory income attributable to the withdrawals from\\nthe person’s SRS account bears to the total assessable\\nincome;\\n(c) where the person possesses any other source of income in\\nSingapore and the total assessable income is equal to or\\nless than the statutory income attributable to the sources\\ngiving rise to the relevant income, by reduction of the rate\\nof tax to —\\n(i) the\\nlowest\\nof\\nthe\\nrates\\nspecified\\nunder\\nsections 40A(2), 40B(2), 40C(2) and 43(1)(b) (as\\nthe case may be) on every dollar of the chargeable\\nincome\\nor\\nthe\\namount\\nof\\nstatutory\\nincome\\nattributable to that source which is subject to tax at\\nthat lowest rate, whichever is less;\\nIncome Tax Act 1947\\n857\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(ii) the second lowest of the rates specified under\\nsections 40A(2), 40B(2), 40C(2) and 43(1)(b) (as\\nthe case may be) on every dollar of the chargeable\\nincome in excess of the statutory income taxed at the\\nlowest rate, or the amount of statutory income\\nattributable to that source which is subject to tax at\\nthat second lowest rate, whichever is less; and\\n(iii) the third lowest of the rates specified under\\nsections 40A(2), 40B(2), 40C(2) and 43(1)(b) (as\\nthe case may be) on every dollar of the chargeable\\nincome in excess of the statutory income taxed at the\\nother 2 lower rates, or the amount of statutory\\nincome attributable to that source which is subject to\\ntax at that third lowest rate, whichever is less.\\n(3) The relief available to any person under subsection (2) must be\\nso limited that the tax payable in respect of the income mentioned in\\nsubsection (1)(b) or (c), must not be less than that which would be\\npayable by a resident of Singapore in the same circumstances.\\n(3A) To avoid doubt, for the purpose of subsection (3), section 39A\\napplies to the computation of the tax that would be payable by a\\nresident of Singapore in the circumstances mentioned in that\\nsubsection.\\n[34/2016]\\n(4) For the purposes of computing the tax payable by a resident of\\nSingapore in the same circumstances mentioned in subsection (3), the\\nstatutory income derived as a public entertainer by a person to whom\\nthis section applies is excluded.\\n(5) [Deleted by Act 41 of 2020]\\n(6) In this section —\\n“non‑resident employee” has the meaning given by section 40B;\\n“public entertainer” has the meaning given by section 40A;\\n“statutory income attributable to such activity as a non‑resident\\nemployee” has the meaning given by section 40B;\\nIncome Tax Act 1947\\n2020 Ed.\\n858\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“statutory income attributable to such activity as a public\\nentertainer” has the meaning given by section 40A;\\n“statutory income attributable to the withdrawals from the\\nperson’s\\nSRS\\naccount”\\nhas\\nthe\\nmeaning\\ngiven\\nby\\nsection 40C;\\n“total assessable income” means the remainder of the statutory\\nincome of a person after the deduction allowed under\\nsection 37(3)(a) has been made;\\n“withdrawals from the person’s SRS account” has the meaning\\ngiven by section 40C.\\nProof of claims for deduction or relief\\n41.—(1) Every individual who claims any deduction or relief under\\nthis Part must make his or her claim on the proper form.\\n(2) Such deduction or relief must be granted if the claim contains\\nsuch particulars and is supported by such proof as the Comptroller\\nmay require.\\nPART 11\\nRATES OF TAX\\nRates of tax upon individuals\\n42.—(1) There is to be levied and paid for each year of assessment\\nupon the chargeable income of every person (other than a body of\\npersons, a company, a person not resident in Singapore, a trustee who\\nis not the trustee of an incapacitated person, or an executor), tax in\\naccordance with the rates specified in Part A of the Second Schedule\\nin respect of the chargeable income of an individual.\\n[27/2021]\\n[S 40/2022]\\n(2) [Deleted by Act 27 of 2021]\\nIncome Tax Act 1947\\n859\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nRebate for children of family\\n42A.—(1) Where an individual resident in Singapore has —\\n(a) a second child of the family born to him or her on or after\\n1 January 2004 who is legitimate at the time of the birth;\\n(b) an illegitimate second child of the family born to him or her\\non or after 1 January 2004 and the individual becomes\\nlawfully married to the other natural parent of the child\\nbefore the child reaches 6 years of age;\\n(c) a second child of the family adopted by him or her under\\nany written law relating to the adoption of children on or\\nafter 1 January 2004 and before 1 January 2006; or\\n(d) a second child of the family adopted by him or her under\\nany written law relating to the adoption of children on or\\nafter 1 January 2006 and before the child reaches 6 years of\\nage,\\nthen there is, in respect of that child, to be allowed for the year of\\nassessment immediately following the year of the birth in the case of\\nparagraph (a), the year of the marriage in the case of paragraph (b), or\\nthe year of the adoption in the case of paragraph (c) or (d), a rebate of\\n$10,000 against the tax payable by that individual.\\n(2) Where an individual resident in Singapore has —\\n(a) a third or fourth child of the family born to him or her on or\\nafter 1 January 2004 who is legitimate at the time of the\\nbirth;\\n(b) an illegitimate third or fourth child of the family born to\\nhim or her on or after 1 January 2004 and the individual\\nbecomes lawfully married to the other natural parent of the\\nchild before the child reaches 6 years of age;\\n(c) a third or fourth child of the family adopted by him or her\\nunder any written law relating to the adoption of children\\non or after 1 January 2004 and before 1 January 2006; or\\n(d) a third or fourth child of the family adopted by him or her\\nunder any written law relating to the adoption of children\\nIncome Tax Act 1947\\n2020 Ed.\\n860\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\non or after 1 January 2006 and before the child reaches\\n6 years of age,\\nthen there is, in respect of that child, to be allowed for the year of\\nassessment immediately following the year of the birth in the case of\\nparagraph (a), the year of the marriage in the case of paragraph (b), or\\nthe year of the adoption in the case of paragraph (c) or (d), a rebate of\\n$20,000 against the tax payable by that individual.\\n(2A) Where an individual resident in Singapore has —\\n(a) a first child of the family born to him or her on or after\\n1 January 2008 who is legitimate at the time of the birth;\\n(b) an illegitimate first child of the family born to him or her\\non or after 1 January 2008 and the individual becomes\\nlawfully married to the other natural parent of the child\\nbefore the child reaches 6 years of age; or\\n(c) a first child of the family adopted by him or her under any\\nwritten law relating to the adoption of children on or after\\n1 January 2008 and before the child reaches 6 years of age,\\nthen there is, in respect of that child, to be allowed for the year of\\nassessment immediately following the year of the birth in the case of\\nparagraph (a), the year of marriage in the case of paragraph (b), or the\\nyear of the adoption in the case of paragraph (c), a rebate of $5,000\\nagainst the tax payable by that individual.\\n(2B) Where an individual resident in Singapore has —\\n(a) a fifth or subsequent child of the family born to him or her\\non or after 1 January 2008 who is legitimate at the time of\\nthe birth;\\n(b) an illegitimate fifth or subsequent child of the family born\\nto him or her on or after 1 January 2008 and the individual\\nbecomes lawfully married to the other natural parent of the\\nchild before the child reaches 6 years of age; or\\n(c) a fifth or subsequent child of the family adopted by him or\\nher under any written law relating to the adoption of\\nchildren on or after 1 January 2008 and before the child\\nreaches 6 years of age,\\nIncome Tax Act 1947\\n861\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthen there is, in respect of that child, to be allowed for the year of\\nassessment immediately following the year of the birth in the case of\\nparagraph (a), the year of marriage in the case of paragraph (b), or the\\nyear of the adoption in the case of paragraph (c), a rebate of $20,000\\nagainst the tax payable by that individual.\\n(2C) Where more than one individual is entitled to claim the rebate\\nmentioned in subsection (1), (2), (2A) or (2B), the rebate is to be\\napportioned between them in such proportion as they may agree or, in\\nthe absence of any agreement, in such manner as appears to the\\nComptroller to be reasonable.\\n(3) For the purposes of subsections (1) to (2C), where full effect\\ncannot be given to the rebate in respect of any child by reason of an\\ninsufficiency of the tax payable by an individual for that year of\\nassessment, the balance of the unabsorbed rebate is available for\\ndeduction against the tax payable by the individual for the year of\\nassessment immediately following that year of assessment and any\\nsubsequent year of assessment.\\n(4) Where the child in respect of whom a rebate is allowable to an\\nindividual under this section is adopted by another person, the rebate\\nor balance (if any) of the unabsorbed rebate is not available for\\ndeduction against the tax payable by the individual for any year of\\nassessment following the year in which the child is adopted.\\n(5) Where, for the year of assessment 2005 or any subsequent year\\nof assessment, an individual would have been entitled to claim any\\nrebate or balance of the unabsorbed rebate under section 42A(1) and\\n(2)(a) in force immediately before 1 January 2005 but for the repeal\\nof that section, such rebate or balance is, subject to subsection (4),\\navailable for deduction against the tax payable by that individual for\\nthe year of assessment 2005 and any subsequent year of assessment;\\nbut where more than one individual is entitled to claim such rebate,\\nthe rebate is to be apportioned between them in such proportion as\\nthey may agree or, in the absence of any agreement, in such manner as\\nappears to the Comptroller to be reasonable.\\n(6) Where, for the year of assessment 2005 or any subsequent year\\nof assessment, a married woman would have been entitled to claim\\nany\\nrebate\\nor\\nbalance\\nof\\nthe\\nunabsorbed\\nrebate\\nunder\\nIncome Tax Act 1947\\n2020 Ed.\\n862\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nsection 42A(2)(b) and (3) in force immediately before 1 January 2005\\nbut for the repeal of that section —\\n(a) such rebate or balance is, subject to subsection (4),\\navailable for deduction against the tax payable by that\\nwoman for the year of assessment 2005 and any\\nsubsequent\\nyear\\nof\\nassessment\\nup\\nto\\n9\\nyears\\nof\\nassessment immediately following the year of birth of\\nthe third child or fourth child, as the case may be; and\\n(b) where the fourth child is born within 9 years of the birth of\\nthe third child and full effect cannot be given to the rebate\\nin respect of the fourth child by reason of an insufficiency\\nof the tax payable by that woman for that year of\\nassessment, the rebate or balance (if any) of the\\nunabsorbed rebate is, subject to subsection (4), available\\nfor deduction, in the case of the fourth child, against the tax\\npayable by that woman for up to 9 years of assessment\\nimmediately following the last year of assessment in which\\nthe rebate in respect of the third child may be allowed\\nunder paragraph (a).\\n(7) Where, for the year of assessment 2005 or any subsequent year\\nof assessment, a married woman would have been entitled to claim\\nany rebate or balance of the unabsorbed rebate under section 42A(1),\\n(2) and (3) in force immediately before 1 January 2005 but for the\\nrepeal of that section, the rebate or balance of the unabsorbed rebate\\nin respect of the third child or fourth child (as the case may be) under\\nsection 42A(2)(b) and (3) in force immediately before 1 January 2005\\nmust —\\n(a) subject to subsection (4), first be allowed for deduction\\nagainst the tax payable by that woman before the rebate or\\nbalance of the unabsorbed rebate under section 42A(1) and\\n(2)(a) in force immediately before 1 January 2005 is\\nallowed; and\\n(b) subject to section 42A(4)(b) and (c) in force immediately\\nbefore 1 January 2005, be available for deduction for the\\nyear of assessment 2005 and any subsequent year of\\nassessment.\\nIncome Tax Act 1947\\n863\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(8) Where a marriage has been dissolved by divorce or annulment\\nand an individual is entitled to claim —\\n(a) any rebate or balance of the unabsorbed rebate under\\nsection 42A(1) or (2) in force immediately before\\n1 January 2005, but for the repeal of that section, in\\nrespect of any child born to the individual from that\\nmarriage; and\\n(b) any\\nrebate\\nunder\\nsection\\n42A(1)\\nor\\n(2)\\nin\\nforce\\nimmediately before 1 January 2005, but for the repeal of\\nthat section, in respect of any child born to the individual\\nafter the dissolution of the marriage,\\nsubsections (5), (6) and (7) only apply to any second, third or fourth\\nchild (as the case may be) born to the individual after the dissolution\\nof the marriage.\\n(9) Where a marriage was dissolved by divorce or annulment\\nbefore\\n1\\nJanuary\\n2002\\nand\\nan\\nindividual\\nwould,\\nbut\\nfor\\nsection 42A(3)(e) in force immediately before that date, have been\\nentitled to claim any rebate or balance of the unabsorbed rebate under\\nsection 42A(1) or (2) in force immediately before 1 January 2005,\\nsuch rebate or balance is, subject to section 42A(4)(a) to (d) in force\\nimmediately before 1 January 2005, available for deduction against\\nthe tax payable by that individual only on due claim by that individual\\nafter that date and only for any year of assessment from the year of the\\nclaim.\\n(10) No rebate is allowed under this section for the year of\\nassessment 2008 or a preceding year of assessment, in respect of a\\nchild who at the time of his or her birth or adoption or the marriage of\\nhis or her natural parents (as the case may be), has more than 3 other\\nsiblings who are members of the same household.\\n(10A) No rebate is allowed under this section in respect of a child\\nwho is adopted by an individual before the individual is married.\\nIncome Tax Act 1947\\n2020 Ed.\\n864\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(11) In this section —\\n“first child of the family” means a child of the family who —\\n(a) is a citizen of Singapore at the time of his or her birth\\nor adoption or the marriage of his or her natural\\nparents (as the case may be), or within 12 months\\nthereafter; and\\n(b) at the time of his or her birth, adoption or the\\nmarriage of his or her natural parents (as the case may\\nbe), has no other sibling who is a member of the same\\nhousehold;\\n“second child of the family” means a child of the family who —\\n(a) is a citizen of Singapore at the time of his or her birth\\nor adoption or the marriage of his or her natural\\nparents (as the case may be), or within 12 months\\nthereafter; and\\n(b) at the time of his or her birth, adoption or the\\nmarriage of his or her natural parents (as the case may\\nbe), has one other sibling who is a member of the\\nsame household;\\n“third child of the family” means a child of the family who —\\n(a) is a citizen of Singapore at the time of his or her birth\\nor adoption or the marriage of his or her natural\\nparents (as the case may be), or within 12 months\\nthereafter; and\\n(b) at the time of his or her birth, adoption or the\\nmarriage of his or her natural parents (as the case may\\nbe), has 2 other siblings who are members of the\\nsame household;\\n“fourth child of the family” means a child of the family who —\\n(a) is a citizen of Singapore at the time of his or her birth\\nor adoption or the marriage of his or her natural\\nparents (as the case may be), or within 12 months\\nthereafter; and\\nIncome Tax Act 1947\\n865\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) at the time of his or her birth, adoption or the\\nmarriage of his or her natural parents (as the case may\\nbe), has 3 other siblings who are members of the\\nsame household;\\n“fifth or subsequent child of the family” means a child of the\\nfamily who —\\n(a) is a citizen of Singapore at the time of his or her birth\\nor adoption or the marriage of his or her natural\\nparents (as the case may be), or within 12 months\\nthereafter; and\\n(b) at the time of his or her birth, adoption or the\\nmarriage of his or her natural parents (as the case may\\nbe), has at least 4 other siblings who are members of\\nthe same household;\\n“sibling” means a brother or sister and includes a stepbrother, a\\nstepsister and a brother or sister adopted under any written\\nlaw relating to the adoption of children.\\n(12) For the purposes of subsection (11), any sibling who is\\ndeceased must be taken into account in determining the number of\\nsiblings a child has at the time of his or her birth or adoption or the\\nmarriage of his or her natural parents unless otherwise determined by\\nthe Comptroller.\\n(12A) For the purposes of the definitions of “first child of the\\nfamily”, “second child of the family”, “third child of the family”,\\n“fourth child of the family” and “fifth or subsequent child of the\\nfamily” in subsection (11), for the year of assessment 2022 or any\\nsubsequent year of assessment, any sibling of the child, being a\\nsibling that is a stillborn child (whether issued from the child’s\\nmother before, on or after 1 January 2022), is to be included in\\ndetermining the number of siblings that the child has who are\\nmembers of the same household, but only if the natural mother of the\\nstillborn child is a member of that household.\\n[27/2021]\\nIncome Tax Act 1947\\n2020 Ed.\\n866\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(12B) To avoid doubt, subsection (12A) does not imply that a\\nstillborn child is a child in respect of whom a rebate may be allowed\\nunder this section.\\n[27/2021]\\n(12C) In subsection (12A), “stillborn child” means —\\n(a) a child that —\\n(i) has issued from the child’s mother after the twenty-\\neighth week of pregnancy and before 29 May 2022;\\nand\\n(ii) did not show any sign of life at any time after being\\ncompletely expelled from the mother;\\n(b) a child that —\\n(i) has issued from the child’s mother after the twenty-\\nsecond week of pregnancy and on or after 29 May\\n2022 but before the date of commencement of\\nsection\\n2(c)\\nof\\nthe\\nStillbirths\\nand\\nBirths\\n(Miscellaneous Amendments) Act 2024; and\\n(ii) did not show any sign of life at any time after being\\ncompletely expelled or extracted from the mother; or\\n(c) a stillborn child as defined in section 2(1) of the\\nRegistration of Births and Deaths Act 2021 that issues\\nfrom\\nthe\\nchild’s\\nmother\\non\\nor\\nafter\\nthe\\ndate\\nof\\ncommencement of section 2(c) of the Stillbirths and\\nBirths (Miscellaneous Amendments) Act 2024.\\n[Act 2 of 2024 wef 16/04/2024]\\n(13) For the purposes of subsection (11), a child is a member of a\\nhousehold if —\\n(a) the members of the household include both the parents of\\nthe child or, if there is only one surviving parent, that\\nparent;\\n(b) in the case where the parents of the child are divorced, any\\nmember of the household is a parent of the child who has\\nsole legal custody of the child; or\\nIncome Tax Act 1947\\n867\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) in the case where the parents of the child are divorced and\\nneither has sole legal custody of the child, any member of\\nthe household is a parent of the child who has been given\\nrights of care and control in respect of the child by any\\ncourt.\\n(14) If the child is a member of more than one household by virtue\\nof subsection (13)(c), the child is treated as such member of the\\nhousehold of only one parent as determined by the Comptroller\\n(whose decision is final) having regard to the circumstances of the\\ncase, including the child’s living arrangements.\\n(15) In subsection (13), “parent” includes an adoptive parent and a\\nstep‑parent.\\nRate of tax upon companies and others\\n43.—(1) There is to be levied and paid for each year of assessment\\nupon the chargeable income of —\\n(a) every company or body of persons, tax at the rate of\\n17% on every dollar of the chargeable income thereof;\\n(b) every individual not resident in Singapore —\\n(i) for the year of assessment 2023 or a preceding year\\nof assessment, tax at the rate of 22% on every dollar\\nof the chargeable income thereof; and\\n(ii) for the year of assessment 2024 and subsequent years\\nof assessment, tax at the rate of 24% on every dollar\\nof the chargeable income thereof; and\\n[Act 33 of 2022 wef 04/11/2022]\\n(c) every other person not resident in Singapore, trustee (other\\nthan the trustee of an incapacitated person) and executor,\\ntax at the rate of 17% on every dollar of the chargeable\\nincome thereof.\\n[2/2016; 41/2020]\\n(2) Where any trustee proves to the Comptroller’s satisfaction that\\nany beneficiary of the trust is entitled to a share of the trust income, a\\ncorresponding share of the statutory income of the trustee may be\\nIncome Tax Act 1947\\n2020 Ed.\\n868\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\ncharged at a lower rate or not charged with any tax, as the Comptroller\\ndetermines.\\n(2AA) Subsection (2) does not apply to a trust that is a REIT\\nexchange‑traded fund unless it is an approved REIT exchange‑traded\\nfund.\\n[45/2018]\\n(2A) Subsection (2) does not apply to —\\n(a) in the case of a real estate investment trust, any income\\nfrom any trade or business carried on by the trustee, other\\nthan the following income distributed by the trustee in cash\\nor, if the conditions specified in subsection (2B) are\\nsatisfied, in units in the trust:\\n(i) rental income or income from the management or\\nholding of immovable property but not including\\ngains from the disposal of immovable property;\\n(ii) income that is ancillary to the management or\\nholding of immovable property but not including\\ngains from the disposal of immovable property;\\n(iii) income that is payable out of rental income or\\nincome\\nfrom\\nthe\\nmanagement\\nor\\nholding\\nof\\nimmovable property in Singapore, but not out of\\ngains from the disposal of such immovable property;\\n(iv) distribution from an approved sub‑trust of the real\\nestate investment trust out of income mentioned in\\nparagraph (b)(i), (ii) and (iii);\\n(v) rental support payment in relation to any immovable\\nproperty, which is paid to the trustee by —\\n(A) the person (A) who sold to the trustee the\\nproperty or any interest in the owner of the\\nproperty;\\n(B) a person who wholly owns (directly or\\nindirectly) A; or\\n(C) any other person approved by the Comptroller;\\nIncome Tax Act 1947\\n869\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) in the case of any approved sub‑trust of a real estate\\ninvestment trust, any income from any trade or business\\ncarried on by the trustee, other than the following income\\ndistributed by the trustee in cash to the trustee of the real\\nestate investment trust:\\n(i) rental income or income from the management or\\nholding of immovable property but not including\\ngains from the disposal of immovable property;\\n(ii) income that is ancillary to the management or\\nholding of immovable property but not including\\ngains from the disposal of immovable property;\\n(iii) rental support payment in relation to any immovable\\nproperty, which is paid to the firstmentioned trustee\\nby —\\n(A) the person (A) who sold to that trustee the\\nproperty or any interest in the owner of the\\nproperty;\\n(B) a person who wholly owns (directly or\\nindirectly) A; or\\n(C) any other person approved by the Comptroller;\\n(ba) in the case of an approved REITexchange‑traded fund, any\\nincome from any trade or business carried on by its trustee,\\nother than a distribution in cash received in the period\\nbetween 1 July 2018 and 31 December 2025 (both dates\\ninclusive) from a real estate investment trust, that is in turn\\nmade out of any income mentioned in paragraph (a)(i) to\\n(v); or\\n(c) in the case of any other trust, any income from any trade or\\nbusiness carried on by the trustee.\\n[34/2016; 45/2018; 32/2019]\\n(2B) The conditions referred to in subsection (2A)(a) are —\\n(a) the distribution is made at any time on or after 1 April 2012\\nby the trustee of the real estate investment trust out of\\nincome specified in subsection (2A)(a)(i) to (v);\\nIncome Tax Act 1947\\n2020 Ed.\\n870\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) before the distribution, the trustee of the real estate\\ninvestment trust has given to unitholders receiving the\\ndistribution an option to receive the same either in cash or\\nunits in the trust; and\\n(c) the trustee of the real estate investment trust has sufficient\\ncash available on the date of such distribution to make the\\ndistribution fully in cash had no option been given to those\\nunitholders to receive the distribution in units in the trust.\\n[34/2016; 32/2019]\\n(2C) To\\navoid\\ndoubt,\\nsubsection\\n(2)\\n(read\\nwith\\nsubsection\\n(2A)(ba))\\ndoes\\nnot\\naffect\\nthe\\noperation\\nof\\nsection 35(12) in relation to an approved REIT exchange‑traded\\nfund that is also a designated unit trust within the meaning of\\nsection 35(14).\\n[45/2018]\\n(3) Despite anything in this Act but subject to subsection (3A), tax\\nat the rate of 15% is to be levied and paid on the gross amount of —\\n(a) any income referred to in section 12(6); and\\n(b) any income referred to in section 12(7)(a), (b) and (d) but\\nexcluding the incomes specified in subsection (7),\\naccruing in or derived from Singapore on or after 28 February 1996\\nby a person not resident in Singapore which is not derived by the\\nperson from any trade, business, profession or vocation carried on or\\nexercised by the person in Singapore and which is not effectively\\nconnected with any permanent establishment in Singapore of the\\nperson.\\n(3A) Despite anything in this Act, tax at the rate of 10% is to be\\nlevied and paid on the gross amount of any income referred to in\\nsection 12(7)(a) and (b) but excluding the incomes specified in\\nsubsection (7), accruing in or derived from Singapore on or after\\n1 January 2005 by a person not resident in Singapore which is not\\nderived by the person from any trade, business, profession or\\nvocation carried on or exercised by the person in Singapore and\\nwhich is not effectively connected with any permanent establishment\\nin Singapore of the person.\\nIncome Tax Act 1947\\n871\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(3B) Despite anything in this Act, tax at the rate of 10% is to be\\nlevied and paid on the gross amount of any distribution made out of\\nany income mentioned in subsection (2A)(a)(i), (ii), (iii), (iv) and (v)\\nduring the period from 18 February 2005 to 31 December 2025 (both\\ndates inclusive) by a trustee of any real estate investment trust to a\\nperson (other than an individual) not resident in Singapore —\\n(a) who does not have any permanent establishment in\\nSingapore; or\\n(b) who carries on any operation in Singapore through a\\npermanent establishment in Singapore, where the funds\\nused by that person to acquire the units in that real estate\\ninvestment trust are not obtained from that operation.\\n[37/2014; 2/2016; 34/2016; 32/2019]\\n(3C) Despite anything in this Act, tax at the rate of 10% is levied\\nand must be paid on the gross amount of any distribution by a trustee\\nof an approved REIT exchange‑traded fund that is —\\n(a) made out of a distribution by a real estate investment trust\\nthat is in turn made out of income of the kinds mentioned in\\nsubsection (2A)(a)(i), (ii), (iii), (iv) and (v);\\n(b) made during the period from 1 July 2018 to 31 December\\n2025 (both dates inclusive); and\\n(c) made to a person (other than an individual) not resident in\\nSingapore —\\n(i) that does not have any permanent establishment in\\nSingapore; or\\n(ii) that carries on any operation in Singapore through a\\npermanent establishment in Singapore, where the\\nfunds used by that person to acquire the units in that\\napproved\\nREIT exchange‑traded\\nfund\\nare\\nnot\\nobtained from that operation.\\n[45/2018; 32/2019]\\n(3D) In the application of subsection (3B) to a distribution\\nmentioned in that subsection made during the period from 1 July\\n2019 to 31 December 2025 (both dates inclusive) to a person\\nmentioned in subsection (3F) with a fund manager in Singapore, that\\nIncome Tax Act 1947\\n2020 Ed.\\n872\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nfund manager is not considered a permanent establishment in\\nSingapore of that person.\\n[32/2019]\\n(3E) In the application of subsection (3C) to a distribution\\nmentioned in that subsection made during the period from 1 July\\n2019 to 31 December 2025 (both dates inclusive) to a person\\nmentioned in subsection (3F) with a fund manager in Singapore, that\\nfund manager is not considered a permanent establishment in\\nSingapore of that person.\\n[32/2019]\\n(3F) Subsection (3D) or (3E) applies to a distribution made to any\\nof the following persons or entities that is not resident in Singapore:\\n(a) a prescribed person (other than an individual) under\\nsection 13D;\\n(b) an approved person under section 13U;\\n(c) a person (not being an individual, a body of persons or a\\nHindu joint family) that is the approved master fund or an\\napproved feeder fund of an approved master‑feeder fund\\nstructure under section 13U;\\n(d) a partner of a partnership (including a limited partnership\\nand a limited liability partnership), where the partnership is\\nthe approved master fund or an approved feeder fund of an\\napproved master‑feeder fund structure under section 13U;\\n(e) a trustee of a trust fund where the trust fund is the approved\\nmaster fund or an approved feeder fund of an approved\\nmaster‑feeder fund structure under section 13U;\\n(f) a taxable entity in relation to the approved master fund or\\nan approved feeder fund of an approved master‑feeder\\nfund structure under section 13U, where the master fund or\\nfeeder fund is not a legal entity;\\n(g) a company, a trustee of a trust fund or a partner of a limited\\npartnership, where the company, trust fund or limited\\npartnership is an approved feeder fund of an approved\\nmaster‑feeder fund‑SPV structure under section 13U;\\nIncome Tax Act 1947\\n873\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(h) a person (not being a company, an individual or a Hindu\\njoint family) that is an approved feeder fund of an\\napproved\\nmaster‑feeder\\nfund‑SPV\\nstructure\\nunder\\nsection 13U;\\n(i) a partner of a partnership (excluding a limited partnership\\nbut including a limited liability partnership), where the\\npartnership is an approved feeder fund of an approved\\nmaster‑feeder fund‑SPV structure under section 13U;\\n(j) a taxable entity in relation to an approved feeder fund of an\\napproved\\nmaster‑feeder\\nfund‑SPV\\nstructure\\nunder\\nsection 13U, where the feeder fund is not a legal entity;\\n(k) an approved 1st tier SPV of an approved master‑feeder\\nfund‑SPV structure under section 13U;\\n(l) an approved 2nd tier SPV of an approved master‑feeder\\nfund‑SPV structure under section 13U;\\n(m) an approved eligible SPV of an approved master‑feeder\\nfund‑SPV structure under section 13U, where the eligible\\nSPV is not one mentioned in paragraphs (n), (o) and (p);\\n(n) a partner of an approved eligible SPV of an approved\\nmaster‑feeder fund‑SPV structure under section 13U,\\nwhere the eligible SPV is a partnership (including a\\nlimited partnership and a limited liability partnership);\\n(o) the trustee of an approved eligible SPV of an approved\\nmaster‑feeder fund‑SPV structure under section 13U,\\nwhere the eligible SPV is a trust fund;\\n(p) the taxable entity of an approved eligible SPV of an\\napproved\\nmaster‑feeder\\nfund‑SPV\\nstructure\\nunder\\nsection 13U, where the eligible SPV is not a legal entity;\\n(q) an approved 1st tier SPVof an approved master fund‑SPV\\nstructure under section 13U;\\n(r) an approved 2nd tier SPVof an approved master fund‑SPV\\nstructure under section 13U;\\nIncome Tax Act 1947\\n2020 Ed.\\n874\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(s) an approved eligible SPVof an approved master fund‑SPV\\nstructure under section 13U, where the eligible SPV is not\\none mentioned in paragraphs (t), (u) and (v);\\n(t) a partner of an approved eligible SPV of an approved\\nmaster fund‑SPV structure under section 13U, where the\\neligible SPV is a partnership (including a limited\\npartnership and a limited liability partnership);\\n(u) the trustee of an approved eligible SPV of an approved\\nmaster fund‑SPV structure under section 13U, where the\\neligible SPV is a trust fund;\\n(v) the taxable entity of an approved eligible SPV of an\\napproved master fund‑SPV structure under section 13U,\\nwhere the eligible SPV is not a legal entity;\\n(w) a prescribed sovereign fund entity or an approved foreign\\ngovernment‑owned entity under section 13V.\\n[32/2019]\\n(4) Despite anything in this Act but subject to subsections (4A) and\\n(5) and sections 13(1)(r), (ra) and (rb) and 40A, tax at the rate of 15%\\nis to be levied and paid on the gross amount of any income accruing in\\nor derived from Singapore on or after 3 May 2002 from any\\nprofession or vocation carried on by —\\n(a) an individual not resident in Singapore and whose\\nprincipal place of business is situated outside Singapore; or\\n(b) a foreign firm.\\n[2/2016]\\n[Act 33 of 2022 wef 04/11/2022]\\n(4A) Despite anything in this Act but subject to subsection (5), tax\\nat the rate of 10% is to be levied and paid on the gross amount of any\\nincome derived from Singapore during the period from 1 April 2023\\nto 31 December 2027 (both dates inclusive) —\\n(a) by an individual not resident in Singapore, from acting as\\nan arbitrator;\\n(b) by a qualifying mediator who is not resident in Singapore,\\nfor providing the services of a mediator for a mediation —\\nIncome Tax Act 1947\\n875\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(i) that takes place in Singapore; or\\n(ii) that would have taken place in Singapore but for the\\nsettlement of the dispute or withdrawal of the claim\\nin question; or\\n(c) by an individual not resident in Singapore, for providing\\nthe services of a mediator for a qualifying mediation —\\n(i) that takes place in Singapore; or\\n(ii) that would have taken place in Singapore but for the\\nsettlement of the dispute or withdrawal of the claim\\nin question.\\n[Act 33 of 2022 wef 04/11/2022]\\n(5) Any individual or foreign firm to which subsection (4) or (4A)\\napplies may make an irrevocable option to be taxed under\\nsubsection (1)(b) by the 15th day of the second month following\\nthe month in which the payment of the income is liable to be made to\\nthe individual or firm.\\n[Act 33 of 2022 wef 04/11/2022]\\n(6) Despite subsection (1) but subject to subsection (6C), tax as\\ndescribed in subsection (6A) or (6B) (as the case may be) is levied\\nand must be paid for each year of assessment upon the chargeable\\nincome of every company or body of persons.\\n[45/2018]\\n(6A) For the purposes of subsection (6), the tax that is levied —\\n(a) in the case of a company, for the years of assessment 2008\\nto 2019 (both years inclusive); and\\n(b) in the case of a body of persons, for the years of\\nassessment 2010 to 2019 (both years inclusive),\\nis tax at the rate prescribed in subsection (1)(a) on every dollar of the\\nchargeable income, except that —\\n(c) for every dollar of the first $10,000 of the chargeable\\nincome, only 25% is chargeable with tax; and\\n(d) for every dollar of the next $290,000 of the chargeable\\nincome, only 50% is chargeable with tax.\\n[45/2018]\\nIncome Tax Act 1947\\n2020 Ed.\\n876\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(6B) For the purposes of subsection (6), the tax that is levied for the\\nyear of assessment 2020 and subsequent years of assessment, is tax at\\nthe rate prescribed in subsection (1)(a) on every dollar of the\\nchargeable income, except that —\\n(a) for every dollar of the first $10,000 of the chargeable\\nincome, only 25% is chargeable with tax; and\\n(b) for every dollar of the next $190,000 of the chargeable\\nincome, only 50% is chargeable with tax.\\n[45/2018]\\n(6C) Despite subsections (1) and (6), where, in any of the first\\n3 years of assessment falling in or after the year of assessment 2008 of\\na company, the company is a qualifying company, then for that year\\nof assessment tax as described in subsection (6D) is levied and must\\nbe paid upon the chargeable income of the company.\\n[45/2018]\\n(6D) For the purposes of subsection (6C), the tax that is levied is tax\\nat the rate prescribed in subsection (1)(a) on every dollar of the\\nchargeable income, except that —\\n(a) for the years of assessment 2008 to 2019 (both years\\ninclusive) —\\n(i) every dollar of the first $100,000 of the chargeable\\nincome is exempt from tax; and\\n(ii) for every dollar of the next $200,000 of the\\nchargeable income, only 50% is chargeable with\\ntax; and\\n(b) for the year of assessment 2020 and subsequent years of\\nassessment —\\n(i) for every dollar of the first $100,000 of the\\nchargeable income, only 25% is chargeable with\\ntax; and\\n(ii) for every dollar of the next $100,000 of the\\nchargeable income, only 50% is chargeable with tax.\\n[45/2018]\\nIncome Tax Act 1947\\n877\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(7) The incomes excluded under subsections (3)(b) and (3A) are —\\n(a) any\\nroyalty\\nand\\nother\\npayments\\nreferred\\nto\\nin\\nsection 10(14) or (16) which are derived by the person\\nnot resident in Singapore; and\\n(b) any payment to a person not resident in Singapore for the\\nrendering of assistance or service in connection with the\\napplication or use of scientific, technical, industrial or\\ncommercial knowledge or information.\\n(8) The reference to 17% in subsection (1) is —\\n(a) for the years of assessment 2005, 2006 and 2007, a\\nreference to 20%; and\\n(b) for the years of assessment 2008 and 2009, a reference to\\n18%.\\n(9) Despite subsection (1)(a), the tax to be levied and paid upon\\nsuch income of a life insurer (other than a captive insurer)\\napportioned to the policyholders of the insurer as the Minister may\\nby regulations specify is at the rate of 10% or such other prescribed\\nrate.\\n(10) In this section —\\n“approved\\nREIT exchange‑traded\\nfund”\\nmeans\\na\\nREIT\\nexchange‑traded fund that is approved by the Comptroller\\nfor the purposes of subsection (2);\\n“approved sub‑trust”, in relation to a real estate investment trust,\\nmeans any trust —\\n(a) not listed on the Singapore Exchange or elsewhere;\\n(b) where the trustee of the real estate investment trust\\nholds any right or interest in the property of the trust\\nfor the benefit of the beneficiaries of the real estate\\ninvestment trust; and\\n(c) approved by the Comptroller;\\n“arbitrator” means an individual appointed for any arbitration\\nwhich is governed by the Arbitration Act 2001 or the\\nInternational Arbitration Act 1994, or would have been\\nIncome Tax Act 1947\\n2020 Ed.\\n878\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\ngoverned by either of those Acts had the place of arbitration\\nbeen Singapore;\\n[Act 33 of 2022 wef 04/11/2022]\\n“captive insurer” has the meaning given by section 2 of the\\nInsurance Act 1966;\\n“first 3 years of assessment”, in relation to a qualifying\\ncompany, means the year of assessment relating to the\\nbasis period during which the company is incorporated in\\nSingapore and the 2 consecutive years of assessment\\nimmediately following that year of assessment;\\n“foreign firm” means an unincorporated body of 2 or more\\npersons who have entered into partnership with one another\\nwith a view to carrying on business for profit and whose\\nprincipal place of business is situated outside Singapore;\\n“gross amount”, in relation to any income referred to in\\nsubsections (3), (3A), (3B) and (4), means the full amount\\nof the income without any deduction and relief being allowed\\nagainst the income under the provisions of this Act;\\n“immovable property‑related assets” means listed or unlisted\\ndebt\\nsecurities\\nand\\nlisted\\nshares\\nissued\\nby\\nproperty\\ncorporations, mortgage‑backed securities, other property\\nfunds, and assets incidental to the ownership of immovable\\nproperty;\\n“qualifying company”, in relation to a year of assessment,\\nmeans a company incorporated in Singapore which for that\\nyear of assessment —\\n(a) is resident in Singapore; and\\n(b) where the company —\\n(i) is not a company limited by guarantee, has its\\ntotal share capital beneficially held directly by\\nno more than 20 shareholders —\\n(A) all of whom are individuals throughout\\nthe\\nbasis\\nperiod\\nfor\\nthat\\nyear\\nof\\nassessment; or\\nIncome Tax Act 1947\\n879\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(B) at least one of whom is an individual\\nholding at least 10% of the total number\\nof issued ordinary shares of the company\\nthroughout the basis period for that year\\nof assessment; or\\n(ii) is a company limited by guarantee, has\\nmembers —\\n(A) all of whom are individuals throughout\\nthe\\nbasis\\nperiod\\nfor\\nthat\\nyear\\nof\\nassessment; or\\n(B) at least one of whom is an individual\\nthroughout the basis period for that year\\nof assessment, and the contribution of\\nthat individual under the memorandum of\\nassociation of the company to the assets\\nof the company in the event of its being\\nwound up, amounts to at least 10% of the\\ntotal contributions of the members of the\\ncompany throughout the basis period for\\nthat year of assessment;\\n“qualifying mediation” means a mediation that is administered\\nby a body or an organisation that provides services for the\\nconduct of mediation (called in this section a mediation\\nservice provider), and that is prescribed under section 7;\\n[Act 33 of 2022 wef 04/11/2022]\\n“qualifying mediator” means an individual who is certified or\\naccredited under a mediator certification or accreditation\\nscheme prescribed under section 7;\\n[Act 33 of 2022 wef 04/11/2022]\\n“real estate investment trust” means a trust that is constituted as\\na collective investment scheme authorised under section 286\\nof the Securities and Futures Act 2001 and listed on the\\nSingapore Exchange, and that invests or proposes to invest in\\nimmovable property and immovable property‑related assets;\\nIncome Tax Act 1947\\n2020 Ed.\\n880\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“REIT exchange‑traded fund” means a collective investment\\nscheme authorised under section 286 of the Securities and\\nFutures Act 2001 and listed on the Singapore Exchange, and\\nthat invests or proposes to invest only in —\\n(a) real estate investment trusts; and\\n(b) any entity, trust or other arrangement that invests or\\nproposes to invest in immovable property and\\nimmovable property‑related assets, and is listed on\\na stock exchange outside Singapore;\\n“rental support payment”, in relation to immovable property,\\nmeans any payment —\\n(a) made under an agreement —\\n(i) made at the time of the sale mentioned in\\nsubsection (2A)(a)(v)(A) or (b)(iii)(A); and\\n(ii) that provides for such payment to be made only\\nfor a fixed period of time; and\\n(b) that is intended to compensate a party to the\\nagreement in the event that the amount of rental\\nincome from the property over a period of time is less\\nthan an amount agreed as the expected rental income\\nfor the same period, taking into account prevailing\\nand forecasted market conditions at the time of that\\nsale.\\n[34/2016; 45/2018]\\n(11) Despite\\nthe\\ndefinition\\nof\\n“qualifying\\ncompany”\\nin\\nsubsection (10), a company that is incorporated on or after\\n26 February 2013 is not a qualifying company in relation to any\\nyear of assessment if —\\n(a) it undertakes property development in the basis period for\\nthat year of assessment, whether or not that is the only\\nactivity it carries out during the basis period;\\n(b) it is a partner of a partnership which undertakes property\\ndevelopment in the\\nbasis period for that year\\nof\\nIncome Tax Act 1947\\n881\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nassessment, whether or not that is the only activity the\\npartnership carries out during the basis period;\\n(c) its only activity in that basis period is the holding of\\ninvestments; or\\n(d) it is a partner of a partnership where the only activity of the\\npartnership during that basis period is the holding of\\ninvestments, and the company has no activity during that\\nbasis period or its only activity during that basis period is\\nthe holding of investments.\\n(12) For the purposes of subsection (11), a company or partnership\\nundertakes property development if it carries out any of the following\\nactivities whether in Singapore or outside Singapore:\\n(a) acquires land or building for the purpose of undertaking\\ndevelopment (whether by the company or partnership or an\\nentity to which it transfers the land or building) with a view\\nto the sale or lease (whether by the entity undertaking the\\ndevelopment or another entity to which the entity\\nundertaking the development transfers the building or\\npart thereof) of the whole or any part of the building so\\ndeveloped;\\n(b) development with a view to the sale or lease (whether by\\nthe company or partnership or another entity to which the\\ncompany or partnership transfers the building or part\\nthereof) of the whole or any part of the building so\\ndeveloped;\\n(c) the sale or lease of the whole or any part of a building\\ndeveloped by the company or partnership;\\n(d) any other activity that is preparatory to, connected with or\\nincidental to any activity referred to in paragraph (a), (b)\\nor (c).\\n(13) In subsection (12) —\\n“acquire” includes acquire by way of purchase, grant, exchange,\\ngift, settlement or otherwise;\\nIncome Tax Act 1947\\n2020 Ed.\\n882\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“develop” means to construct or cause to construct a building,\\nincluding any building operations in, on, over or under the\\nland\\nfor\\nthe\\npurpose\\nof\\nerecting\\nthe\\nbuilding;\\nand\\n“development” is to be construed accordingly.\\n(14) For the purposes of the definitions of “qualifying mediation”\\nand “qualifying mediator” in subsection (10), the Minister may\\nprescribe a description of mediation service providers and a\\ndescription of mediator certification or accreditation schemes that\\nare set out on a specified website of the Ministry of Law, as amended\\nfrom time to time.\\n[Act 33 of 2022 wef 04/11/2022]\\nConcessionary rate of tax for Asian Currency Unit, Fund\\nManager and securities company\\n43A.—(1) Despite section 43, the Minister may by regulations\\nprovide that tax at the rate of 10% is to be levied and paid for each\\nyear of assessment upon such income derived before 1 January 2004\\nas the Minister may specify of —\\n(a) a financial institution with an Asian Currency Unit;\\n(b) a Fund Manager;\\n(c) a company holding a capital markets services licence under\\nthe Securities and Futures Act 2001 to deal in securities or\\nthat is exempted under that Act from holding such a\\nlicence,\\napproved by the Minister or such person as the Minister may appoint.\\n[34/2016]\\n(2) Regulations made under subsection (1) may provide for —\\n(a) exemption from tax of any income mentioned in that\\nsubsection;\\n(b) exemption from tax of such income as the Minister may\\nspecify of —\\n(i) a bank or merchant bank licensed under the Banking\\nAct 1970; and\\n(ii) a company approved under subsection (1)(c),\\nIncome Tax Act 1947\\n883\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) derived by it from any approved syndicated offshore credit\\nor guarantee facility or any other syndicated offshore credit\\nor guarantee facility made before 1 January 2004 which\\nsatisfies the prescribed criteria;\\n(c) deduction of losses, capital allowances and donations\\notherwise than in accordance with this Act;\\n(d) circumstances in which any losses (including impairment\\nloss recognised under FRS 39, as defined in section 34A,\\nand expected credit loss recognised under FRS 109 or\\nSFRS(I) 9, as defined in section 34AA) incurred in respect\\nof any facility mentioned in paragraph (b), and capital\\nallowances and donations attributable to income from such\\nfacility which has been allowed as a deduction against any\\nincome chargeable to tax, may be deemed as income\\nchargeable to tax (at such rate as may be prescribed) for a\\nspecified basis period;\\n(e) adjustment of any amount deemed as income chargeable to\\ntax mentioned in paragraph (d) for the specified basis\\nperiod;\\n(f) circumstances in which any income from any facility\\nmentioned in paragraph (b) to be exempt from tax, may be\\nadjusted for any basis period in which the income from\\nsuch facility is derived;\\n(g) circumstances in which any impairment loss, bad debt or\\nprovision for doubtful debt in respect of any facility\\nmentioned in paragraph (b), which has previously been\\nallowed as a deduction against any income chargeable to\\ntax and which is subsequently reversed, recovered or\\nwritten back, may be deemed as income chargeable to tax\\n(at such rate as may be prescribed) for any basis period in\\nwhich the reversal is recognised or the recovery or\\nwrite‑back occurs; and\\n(h) generally for giving full effect to or for carrying out the\\npurposes of this section.\\n[39/2017; 32/2019; 1/2020]\\nIncome Tax Act 1947\\n2020 Ed.\\n884\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nSpecial rate of tax for non‑resident shipowner or charterer or\\nair transport undertaking\\n43B. Despite section 43, where the tax authority of a foreign\\ncountry taxes the profits derived by a person resident in Singapore\\nfrom carrying on the business of a shipowner or charterer or of air\\ntransport at a rate which exceeds the rate prescribed by section 43, the\\nMinister may direct that the profits derived in Singapore from the\\ncarrying on of such business by a non‑resident person who is resident\\nin that foreign country be charged to tax at a rate similar to that\\ncharged by the tax authority of that foreign country.\\nExemption and concessionary rate of tax for insurance and\\nreinsurance business\\n43C.—(1) Despite\\nsection\\n43,\\nthe\\nMinister\\nmay\\nmake\\nregulations —\\n(a) to provide for tax at the rate of 10% to be levied and paid\\nfor each year of assessment upon such income as the\\nMinister may specify that is derived before 1 July 2021 by\\nan approved insurer, whose approval is granted before\\n1 June 2017, from offshore life business within the\\nmeaning of section 26, or the business (other than the\\nbusiness of life assurance) of insuring and reinsuring\\noffshore risks;\\n(aa) to provide for tax at the rate of 10% to be levied and paid\\nfor each year of assessment upon such income as the\\nMinister may specify that is derived by an approved\\ninsurer, whose approval is granted on or after 1 June 2017,\\nfrom the reinsurance of liabilities under policies relating to\\nlife business as defined in section 3(1)(a) of the Insurance\\nAct 1966, or such description of general business within\\nthe meaning of section 3(1)(b) of that Act, as may be\\nprescribed;\\n(ab) to provide for tax at the rate of 10% to be levied and paid\\nfor each year of assessment upon such income as the\\nMinister may specify that is derived on or after 1 July 2021\\nIncome Tax Act 1947\\n885\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nby an approved insurer whose approval is granted before\\n1 June 2017, from —\\n(i) the reinsurance of liabilities under policies relating to\\nlife business as defined in section 3(1)(a) of the\\nInsurance Act 1966; or\\n(ii) such description of general business as defined in\\nsection 3(1)(b) of that Act, as may be prescribed;\\n(b) to provide for exemption from tax of such income as the\\nMinister may specify that is derived from insurance and\\nreinsurance business by the following:\\n(i) an approved specialised insurer whose approval is\\ngranted before 1 September 2016;\\n(ii) an approved captive insurer whose approval is\\ngranted before 1 April 2018;\\n(c) to provide for tax at the rate specified in the first column of\\nthe following table, to be levied and paid for each year of\\nassessment upon such income as the Minister may specify\\nthat is derived from insurance and reinsurance business by\\nan approved insurer set out opposite that rate in the second\\ncolumn of the table:\\nTax rate\\nApproved insurer\\n5%\\nAn approved specialised insurer whose approval is\\ngranted between 1 September 2016 and 31 August\\n2019 (both dates inclusive), and who had not been\\napproved as such at any time before the date of the\\napproval\\n8%\\nAn approved specialised insurer whose approval is\\ngranted between 1 September 2019 and 31 August\\n2021 (both dates inclusive), and who had not been\\napproved as such at any time before the date of the\\napproval\\n10%\\n(i) An approved specialised insurer whose approval is\\ngranted between 1 September 2016 and 31 August\\n2021 (both dates inclusive), and who had been\\nIncome Tax Act 1947\\n2020 Ed.\\n886\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\napproved as such at any time before the date of the\\nfirstmentioned approval\\n(ii) An approved captive insurer whose approval is\\ngranted on or after 1 April 2018\\n(d) to provide for exemption from tax of such income as the\\nMinister may specify that is derived by an approved insurer\\nwhose approval is granted before 1 April 2016, from\\nmarine hull and liability insurance and reinsurance\\nbusiness;\\n(e) to provide for tax at the rate specified in the first column of\\nthe following table, to be levied and paid for each year of\\nassessment upon such income as the Minister may specify\\nthat is derived from marine hull and liability insurance and\\nreinsurance business by an approved insurer set out\\nopposite that rate in the second column of the table:\\nTax rate\\nApproved insurer\\n5%\\nAn approved insurer whose approval was granted\\nbetween 19 February 2011 and 31 March 2016 (both\\ndates inclusive), and who had been approved as such at\\nany time before the date of the firstmentioned approval\\n10%\\nAn approved insurer whose approval is granted between\\n1 April 2016 and 31 March 2020 (both dates inclusive)\\n(f) to provide for the deduction (otherwise than in accordance\\nwith\\nthis\\nAct),\\nfrom\\nthe\\nincome\\nmentioned\\nin\\nparagraphs (a) to (e), of allowances under section 19,\\n19A, 20, 21, 22 or 23, expenses, losses and donations\\nallowable under this Act, including deduction of these\\nallowances, expenses, losses and donations in such manner\\nand to such extent as the Comptroller may determine;\\n(g) to provide for the period of each approval, and the\\nconditions subject to which a specified insurer may be or\\nmay continue to be approved; and\\nIncome Tax Act 1947\\n887\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(h) to provide for such matters as the Minister may consider\\nnecessary or expedient for carrying out the purposes under\\nparagraphs (a) to (g).\\n[34/2016; 39/2017; 32/2019; 41/2020; 27/2021]\\n(2) No approval may be granted to an insurer for the purpose of\\nparagraph (a), (aa), (b), (c), (d) or (e) of subsection (1) on or after the\\ndate prescribed in the regulations for that paragraph.\\n[34/2016; 39/2017]\\n(3) In this section —\\n“approved” means approved by the Minister or an authorised\\nbody;\\n[Act 41 of 2020 wef 06/12/2022]\\n“captive insurer” has the meaning given by section 2 of the\\nInsurance Act 1966;\\n“insurer” means —\\n(a) a company licensed under the Insurance Act 1966 to\\ncarry on insurance business in Singapore; or\\n(b) a person (including a partnership), other than an\\nindividual, permitted under the Insurance Act 1966 to\\ncarry on insurance business in Singapore under a\\nforeign insurer scheme;\\n“marine hull and liability insurance and reinsurance business”\\nmeans the business of insuring and reinsuring risks involving\\nmarine hull and liability but excludes cargo, energy and\\naviation risks;\\n“specialised insurer” means an insurer underwriting any of the\\nfollowing insurance risks (whether or not it also underwrites\\nany other type of risk):\\n(a) terrorism risks;\\n(b) political risks;\\n(c) energy risks;\\n(d) aviation and aerospace risks;\\n(e) agriculture risks;\\nIncome Tax Act 1947\\n2020 Ed.\\n888\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(f) risks arising from a natural catastrophe.\\n[34/2016; 39/2017]\\nConcessionary rate of tax for headquarters company\\n43D.—(1) Despite section 43, the Minister may by regulations\\nprovide that tax at the rate of 10% is to be levied and paid for each\\nyear of assessment upon such income as the Minister may specify of\\nan approved headquarters company derived by it from —\\n(a) the provision of such qualifying services as may be\\nprescribed to its offices, associated companies and other\\npersons where such offices, associated companies and\\npersons are outside Singapore; or\\n(b) such qualifying treasury, investment or financial activities\\nas may be prescribed,\\nand those regulations may provide for the deduction of losses\\notherwise than in accordance with section 37(3).\\n[34/2016]\\n(1A) This section does not apply to any income derived on or after\\n1 October 2015.\\n[2/2016]\\n(2) The concessionary rate of tax referred to in subsection (1)\\napplies to an approved headquarters company —\\n(a) in respect of any qualifying service only where the\\nqualifying service and the office, associated company or\\nperson to whom the service is rendered have been\\napproved in relation to that headquarters company for\\nsuch concessionary rate;\\n(b) in respect of any qualifying treasury, investment or\\nfinancial activity only where the qualifying activity has\\nbeen approved in relation to that headquarters company for\\nsuch concessionary rate; and\\n(c) subject to such conditions as the Minister or such person as\\nthe Minister may appoint may impose.\\n(3) Regulations made under subsection (1) may provide for\\nexemption\\nfrom\\ntax\\nof\\nincome\\nderived\\nby\\nan\\napproved\\nIncome Tax Act 1947\\n889\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nheadquarters company from the provision of any qualifying service\\nif —\\n(a) the qualifying service and the office, associated company\\nor person to whom the service is rendered have been\\napproved\\nin\\nrelation\\nto\\nthe\\napproved\\nheadquarters\\ncompany for the purposes of the exemption from tax; and\\n(b) the\\napproved\\nheadquarters\\ncompany\\nhas\\nglobal\\nresponsibility for the provision of any qualifying service.\\n(4) In this section —\\n“approved” means approved by the Minister or such person as\\nthe Minister appoints;\\n“associated company”, in relation to an approved headquarters\\ncompany, means a company —\\n(a) the operations of which are or can be controlled,\\ndirectly or indirectly, by that headquarters company;\\n(b) which controls or can control, directly or indirectly,\\nthe operations of that headquarters company; or\\n(c) the operations of which are or can be controlled,\\ndirectly or indirectly, by a person or persons who\\ncontrol or can control, directly or indirectly, the\\noperations of that headquarters company;\\n“headquarters company” means a company carrying on the\\nbusiness in Singapore of providing management, technical or\\nother supporting services to its offices outside Singapore or to\\nits associated companies outside Singapore.\\n[34/2016]\\n(5) For the purposes of subsection (4), a company is deemed to be\\nan associated company in relation to an approved headquarters\\ncompany if —\\n(a) at least 25% of the total number of its issued shares are\\nbeneficially owned, directly or indirectly, by the approved\\nheadquarters company; or\\nIncome Tax Act 1947\\n2020 Ed.\\n890\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) at least 25% of the total number of the issued shares of the\\napproved headquarters company are beneficially owned,\\ndirectly or indirectly, by the firstmentioned company.\\n[43E\\nConcessionary rate of tax for Finance and Treasury Centre\\n43E.—(1) Despite section 43, the Minister may by regulations\\nprovide that tax at the concessionary rate specified in subsection (1A)\\nis levied and must be paid for each year of assessment upon such\\nincome as the Minister may specify of a company derived from —\\n(a) the operation of its approved Finance and Treasury Centre\\nin respect of such qualifying activities carried out on its\\nown account as may be prescribed; or\\n(b) such prescribed qualifying services as may be provided by\\nits approved Finance and Treasury Centre to —\\n(i) its\\noffices\\nand\\nassociated\\ncompanies\\noutside\\nSingapore; or\\n(ii) such of its offices and associated companies in\\nSingapore as are approved on or after 18 February\\n2005,\\nand those regulations may provide for the deduction of losses\\notherwise than in accordance with section 37(3).\\n[34/2016]\\n(1A) In subsection (1), the concessionary rate is —\\n(a) in the case of a Finance and Treasury Centre approved as\\nsuch on or before 24 March 2016, 10%; or\\n(b) in any other case, 8%.\\n[34/2016]\\n(2) The concessionary rate of tax mentioned in subsection (1)\\napplies to an approved Finance and Treasury Centre —\\n(a) in respect of any qualifying service only where the\\nqualifying service and the office or associated company\\nto whom the service is rendered have been approved in\\nrelation to that Centre for such concessionary rate; and\\nIncome Tax Act 1947\\n891\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) in respect of any qualifying activity only where the\\nqualifying activity has been approved in relation to that\\nCentre for such concessionary rate.\\n[32/2019]\\n(2A) The Minister or an authorised body may, subject to such\\nconditions as the Minister or authorised body may impose, approve a\\nFinance and Treasury Centre for a company for the purposes of this\\nsection.\\n[32/2019]\\n[Act 41 of 2020 wef 12/04/2024]\\n(3) In this section —\\n“approved” means approved by the Minister or an authorised\\nbody;\\n[Act 41 of 2020 wef 12/04/2024]\\n“associated company”, in relation to a company with an\\napproved Finance and Treasury Centre, means a company —\\n(a) the operations of which are or can be controlled,\\ndirectly or indirectly, by the company with the\\napproved Centre;\\n(b) which controls or can control, directly or indirectly,\\nthe operations of the company with the approved\\nCentre; or\\n(c) the operations of which are or can be controlled,\\ndirectly or indirectly, by a person or persons who\\ncontrol or can control, directly or indirectly, the\\noperations of the company with the approved Centre;\\n“Finance and Treasury Centre” means a division or department\\nof a company which provides treasury, investment or\\nfinancial services in Singapore for its offices or its\\nassociated companies.\\n[34/2016]\\n(4) For the purposes of subsection (3), a company is deemed to be\\nan associated company in relation to a company with an approved\\nFinance and Treasury Centre if —\\nIncome Tax Act 1947\\n2020 Ed.\\n892\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(a) at least 25% of the total number of its issued shares are\\nbeneficially owned, directly or indirectly, by the company\\nwith the approved Centre; or\\n(b) at least 25% of the total number of issued shares of the\\ncompany with the approved Centre are beneficially owned,\\ndirectly or indirectly, by the firstmentioned company.\\n(5) No Finance and Treasury Centre may be approved as an\\napproved Finance and Treasury Centre under this section after\\n31 December 2026.\\n[43G\\n[34/2016; 41/2020]\\nConcessionary rate of tax for offshore leasing of machinery and\\nplant\\n43F.—(1) Despite section 43, tax at the rate of 10% is to be levied\\nand paid for each year of assessment upon the income of a leasing\\ncompany accruing in or derived from Singapore in respect of offshore\\nleasing of any machinery or plant or such other activity as may be\\nprescribed by regulations.\\n[34/2016]\\n(1A) This section does not apply to any income accruing in or\\nderived from Singapore on or after 1 January 2016.\\n[2/2016]\\n(2) In determining the income of a leasing company from offshore\\nleasing —\\n(a) the allowances under section 19, 19A, 20, 21, 22 or 23\\nmust be taken into account even if no claim for such\\nallowances has been made;\\n(b) the allowances under section 19, 19A, 20, 21, 22 or 23 in\\nrespect of offshore finance leasing in any year of\\nassessment after deduction against the income from such\\nleasing are available as a deduction against any income\\nfrom onshore finance leasing for that year of assessment,\\nand any balance of the allowances is not, subject to\\nparagraph (c), available as a deduction against any other\\nincome or available for transfer under section 37B;\\nIncome Tax Act 1947\\n893\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) where the leasing company ceases to derive income from\\nfinance leasing in the basis period for any year of\\nassessment, any balance of the allowances in respect of\\nfinance leasing after the deduction in paragraph (b) is\\navailable as a deduction against any other income for that\\nyear of assessment and for any subsequent year of\\nassessment in accordance with section 23; and\\n(d) the Comptroller must determine the manner and extent to\\nwhich —\\n(i) allowances under section 19, 19A, 20, 21, 22 or 23\\nand any expenses and donations allowable under this\\nAct are to be deducted; and\\n(ii) any loss may be deducted under section 37.\\n(3) Subsection (2) applies, with the necessary modifications, in\\ndetermining the income of a leasing company from any activity\\nprescribed by regulations made under subsection (1) as if such\\nincome were income from offshore operating leasing.\\n(4) [Deleted by Act 53 of 2007]\\n(5) [Deleted by Act 53 of 2007]\\n(6) Despite subsection (1), a leasing company may, at any time,\\nelect that the whole of its income accruing in or derived from\\nSingapore in respect of offshore leasing of any machinery or plant be\\ntaxed at the rate prescribed by section 43(1)(a).\\n(7) An election under subsection (6) must be made by a leasing\\ncompany by written notice to the Comptroller and is irrevocable.\\n(8) Where a leasing company has made an election under\\nsubsection (6) —\\n(a) subsections (1), (2) and (3) do not apply to the income of\\nthe\\nleasing\\ncompany\\nfor\\nthe\\nyear\\nof\\nassessment\\nimmediately following the year in which the election is\\nmade and for subsequent years of assessment; and\\n(b) any allowance or the balance thereof in respect of finance\\nleasing which was not deducted against the income of the\\nleasing company for any year of assessment during which\\nIncome Tax Act 1947\\n2020 Ed.\\n894\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthe concessionary rate prescribed by subsection (1) applies\\nis available as a deduction against the income from finance\\nleasing for the first year of assessment to which\\nparagraph (a) applies and for any subsequent year of\\nassessment.\\n(9) In this section —\\n“finance lease”, “finance leasing” and “onshore finance leasing”\\nhave the meanings given by section 10C(3);\\n“leasing company” means any company carrying on a business\\nof leasing machinery or plant;\\n“offshore finance leasing” means the offshore leasing of any\\nmachinery or plant under any finance lease;\\n“offshore leasing” means the leasing of any machinery or plant,\\nother than those which have been treated as though they had\\nbeen sold pursuant to regulations made under section 10C(1),\\nwhere such machinery or plant is used outside Singapore, and\\nthe payments under the lease —\\n(a) are in currencies other than Singapore dollars; and\\n(b) are not deductible against any income accruing in or\\nderived from Singapore;\\n“offshore operating leasing” means the offshore leasing of any\\nmachinery or plant, other than offshore finance leasing.\\n[43I\\nConcessionary rate of tax for trustee company\\n43G.—(1) Despite section 43, the Minister may by regulations\\nprovide that tax at the rate of 10% is to be levied and paid for each\\nyear of assessment upon such income as the Minister may specify of\\nan approved trustee company derived by it from such services as may\\nbe prescribed; and those regulations may provide for exemption from\\ntax of any such income and for the deduction of losses otherwise than\\nin accordance with section 37(3).\\n[34/2016]\\nIncome Tax Act 1947\\n895\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(2) In this section, “trustee company” means a company that is a\\nlicensed trust company within the meaning of the Trust Companies\\nAct 2005, or that is exempted under that Act from holding a trust\\nbusiness licence within the meaning of that Act.\\n(3) The Minister or such person as the Minister may appoint may\\napprove a trustee company as an approved trustee company for the\\npurposes of this section.\\n(4) Any approval under subsection (3) must be for a period not\\nexceeding 10 years as the Minister or the person appointed by the\\nMinister may specify, and is subject to such conditions as the Minister\\nmay impose.\\n(5) No trustee company may be approved under subsection (3) on\\nor after 1 April 2016.\\n(6) A trustee company that is an approved trustee company\\nimmediately before 1 April 2011 remains as an approved trustee\\ncompany until 31 March 2021, unless its approval is revoked earlier.\\n(7) The trustee company mentioned in subsection (6) remains as an\\napproved trustee company subject to such conditions as the Minister\\nmay impose.\\n[43J\\nConcessionary rate of tax for income derived from debt\\nsecurities\\n43H.—(1) Despite section 43, the Minister may by regulations\\nprovide that tax at the rate of 10% is to be levied and paid for each\\nyear of assessment upon —\\n(a) interest derived by any company from any qualifying debt\\nsecurities;\\n(aa) discount derived by any company from any qualifying debt\\nsecurities issued during the period from 17 February 2006\\nto 31 December 2028 (both dates inclusive);\\n[Act 30 of 2023 wef 30/10/2023]\\n(ab) any amount payable to any company from any Islamic debt\\nsecurities which are qualifying debt securities, and issued\\nIncome Tax Act 1947\\n2020 Ed.\\n896\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nduring the period from 1 January 2005 to 31 December\\n2028 (both dates inclusive);\\n[Act 30 of 2023 wef 30/10/2023]\\n(ac) any early redemption fee or redemption premium derived\\nby any company from qualifying debt securities issued\\nduring the period from 15 February 2007 to 31 December\\n2028 (both dates inclusive); and\\n[Act 30 of 2023 wef 15/02/2023]\\n[Act 30 of 2023 wef 30/10/2023]\\n(ad) such other income derived by any company that is directly\\nattributable to qualifying debt securities issued on or after a\\nprescribed date, as may be prescribed by regulations.\\n[37/2014; 34/2016; 45/2018; 41/2020]\\n(2) Subsection (1)(a), (aa), (ab), (ac) or (ad) (as the case may be)\\ndoes not, unless otherwise approved by the Minister or an authorised\\nbody, apply to —\\n(a) any interest derived from any qualifying debt securities\\nissued\\nduring\\nthe\\nperiod\\nfrom\\n10\\nMay\\n1999\\nto\\n31 December 2028 (both dates inclusive);\\n[Act 30 of 2023 wef 30/10/2023]\\n(b) any discount from any qualifying debt securities issued\\nduring the period from 17 February 2006 to 31 December\\n2028 (both dates inclusive);\\n[Act 30 of 2023 wef 30/10/2023]\\n(c) any amount payable from any Islamic debt securities\\nwhich are qualifying debt securities, and issued during the\\nperiod from 1 January 2005 to 31 December 2028;\\n[Act 30 of 2023 wef 30/10/2023]\\n(d) any early redemption fee or redemption premium from\\nqualifying debt securities issued during the period from\\n15 February 2007 to 31 December 2028 (both dates\\ninclusive); and\\n[Act 30 of 2023 wef 15/02/2023]\\n[Act 30 of 2023 wef 30/10/2023]\\n(e) such other income directly attributable to qualifying debt\\nsecurities issued on or after a prescribed date, as may be\\nprescribed by regulations,\\nIncome Tax Act 1947\\n897\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nwhere 50% or more of those securities which are outstanding at any\\ntime during the life of the issue is beneficially held or funded, directly\\nor indirectly, by related parties of the issuer of those securities and\\nwhere such income is derived by —\\n(f) any company which is a related party of the issuer of those\\nsecurities; or\\n(g) any company where the funds used by such company to\\nacquire those securities are obtained, directly or indirectly,\\nfrom any related party of the issuer of those securities.\\n[37/2014; 45/2018; 41/2020]\\n[Act 41 of 2020 wef 06/12/2022]\\n(2A) Subsection (1) does not apply to income from qualifying debt\\nsecurities derived by a financial sector incentive (standard tier)\\ncompany.\\n(2B) Subsection (1) does not apply to income derived by a financial\\nsector incentive (capital market) company from qualifying debt\\nsecurities on or after 1 January 2014.\\n[45/2018]\\n(3) Regulations made under subsection (1) may provide for\\nexemption from tax of income derived by a primary dealer from\\ntrading in any Singapore Government securities during the period\\nfrom 27 February 1999 to 31 December 2028 (both dates inclusive),\\nand for deduction of losses otherwise than in accordance with\\nsection 37(3).\\n[37/2014; 45/2018; 41/2020]\\n[Act 30 of 2023 wef 30/10/2023]\\n(3A) A primary dealer mentioned in subsection (3) may elect in\\naccordance with subsection (3B) not to be subject to the regulations\\nmade under subsection (1); and if the primary dealer so elects, the\\nregulations cease to apply to the income of that primary dealer for the\\nyear of assessment for which the election is made and for subsequent\\nyears of assessment.\\n[37/2014]\\n(3B) The election mentioned in subsection (3A) must be made by\\nthe primary dealer by written notice to the Comptroller —\\nIncome Tax Act 1947\\n2020 Ed.\\n898\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(a) at the time of lodgment of the return of income for a year of\\nassessment; or\\n(b) at such further time as the Comptroller may allow.\\n[37/2014]\\n(3C) The election made by a primary dealer under subsection (3A)\\nis irrevocable.\\n[37/2014]\\n(4) In this section —\\n[Deleted by Act 30 of 2023 wef 15/02/2023]\\n“debt securities” means bonds, notes, commercial papers,\\ntreasury bills, certificates of deposits, and AT1 instruments\\nwithin the meaning of section 10I(2);\\n“early redemption fee”, “financial institution”, “qualifying debt\\nsecurities” and “redemption premium” have the meanings\\ngiven by section 13(16);\\n[Act 30 of 2023 wef 15/02/2023]\\n“financial sector incentive (capital market) company” means a\\ncompany approved as such under section 43J;\\n“financial sector incentive (standard tier) company” means a\\ncompany approved as such under section 43J;\\n“Islamic debt securities” means debt securities and trust\\ncertificates —\\n(a) which are endorsed by any Shari’ah council or body,\\nor by any committee formed for the purpose of\\nproviding guidance on compliance with Shari’ah\\nlaw; and\\n(b) the amounts payable from such securities and trust\\ncertificates are periodic and supported by a regular\\nstream of receipts from underlying assets;\\n“primary dealer” means any financial institution appointed by\\nthe Monetary Authority of Singapore as a primary dealer\\nunder section 29A of the Government Securities Act 1992;\\nIncome Tax Act 1947\\n899\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“Singapore Government securities” means debt securities issued\\nunder the Government Securities Act 1992, the repealed\\nLocal Treasury Bills Act 1923, the Significant Infrastructure\\nGovernment Loan Act 2021 or by the Government under any\\nother written law, and is deemed to include any issue of bills\\nand notes by the Monetary Authority of Singapore that are\\napproved by the Minister for the purposes of this Act;\\n[Act 35 of 2021 wef 31/01/2022]\\n“trust certificates” means certificates evidencing beneficial\\nownership in underlying assets.\\n[37/2014; 45/2018; 32/2019; 15/2021]\\n(5) Subsections (1)(a), (aa), (ab), (ac) and (ad) and (2) and\\nregulations made under any of those provisions apply to a body of\\npersons for the year of assessment 2010 and subsequent years of\\nassessment.\\n[43N\\nConcessionary rate of tax for global trading company and\\nqualifying company\\n43I.—(1) Despite section 43, the Minister may by regulations\\nprovide that tax at the rate of 5% or 10% is to be levied and paid for\\neach year of assessment upon —\\n(a) such income as the Minister may specify of an approved\\nglobal trading company —\\n(i) that is derived by it from such prescribed qualifying\\ntransactions in such prescribed commodities as the\\nMinister or an authorised body may specify to the\\ncompany;\\n[Act 41 of 2020 wef 12/04/2024]\\n(ii) that is derived by it in the basis period for the year of\\nassessment 2012 or a subsequent year of assessment,\\nfrom prescribed qualifying transactions in any\\nderivative instrument; or\\n(iii) that is derived by it on or after 19 February 2020\\nfrom the carrying on of such prescribed qualifying\\nstructured\\ncommodity\\nfinancing\\nactivities,\\nIncome Tax Act 1947\\n2020 Ed.\\n900\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nprescribed treasury activities or prescribed advisory\\nservices in relation to mergers and acquisitions, as\\nthe Minister or an authorised body may specify to the\\ncompany; and\\n[Act 41 of 2020 wef 12/04/2024]\\n(b) such income as the Minister may specify of an approved\\nqualifying company that is derived on or after 21 May\\n2010 from the carrying on of such prescribed qualifying\\nstructured commodity financing activities, prescribed\\ntreasury activities or prescribed advisory services in\\nrelation to mergers and acquisitions, as the Minister or\\nan authorised body may specify to the company,\\nand those regulations may provide for the deduction of losses\\notherwise than in accordance with section 37(3).\\n[34/2016; 41/2020]\\n[Act 41 of 2020 wef 12/04/2024]\\n(1AA) Subject to the regulations under subsection (1), the income\\nof an approved global trading company or approved qualifying\\ncompany mentioned in that subsection —\\n(a) is chargeable with tax at the rate of 5% if the company has\\nbeen approved for that rate; or\\n(b) is chargeable with tax at the rate of 10% if the company has\\nbeen approved for that rate.\\n[32/2019]\\n(1AB) For the purposes of this section, the Minister or an\\nauthorised body may, subject to such conditions as the Minister or\\nauthorised body may impose, approve —\\n(a) a global trading company as an approved global trading\\ncompany; or\\n(b) a qualifying company as an approved qualifying company.\\n[32/2019]\\n[Act 41 of 2020 wef 12/04/2024]\\n(1A) No approval may be granted under this section to a global\\ntrading company after 31 December 2026.\\n[41/2020]\\nIncome Tax Act 1947\\n901\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(1B) No approval may be granted under this section to a qualifying\\ncompany after 31 March 2021, and any approval granted to a\\nqualifying company must be for a period that commences on or\\nbefore that date.\\n[41/2020]\\n(2) [Deleted by Act 32 of 2019]\\n(3) In this section —\\n“global trading company” means a company that carries on the\\nbusiness\\nof\\ninternational\\ntrading\\nof\\ncommodities\\nor\\ncommodities derivatives, or of brokering international\\ntrades in commodities, or both;\\n“qualifying company” means —\\n(a) an approved company that carries on the business of\\ninternational trading of commodities or commodities\\nderivatives; or\\n(b) a wholly‑owned subsidiary of another company,\\nwhere the other company carries on the business of\\ninternational trading of commodities or commodities\\nderivatives,\\nthat\\ncarries\\non\\nany\\nqualifying\\nstructured\\ncommodity\\nfinancing activities, treasury activities, or advisory services\\nin relation to mergers and acquisitions, prescribed under\\nsubsection (1).\\n[43P\\n[34/2016; 39/2017; 32/2019]\\nConcessionary rate of tax for financial sector incentive\\ncompany\\n43J.—(1) Despite section 43, the Minister may by regulations\\nprovide that tax at the rate of 5%, 10%, 12% or 13.5% is to be levied\\nand paid for each year of assessment upon such income as the\\nMinister may specify, derived on or after 1 January 2004 by a\\nfinancial sector incentive company from such qualifying activities as\\nmay be prescribed, and those regulations may provide for the\\ndeduction of losses otherwise than in accordance with section 37(3).\\n[39/2017]\\nIncome Tax Act 1947\\n2020 Ed.\\n902\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(2) The Minister or an authorised body may, subject to such\\nconditions as the Minister or authorised body may impose, approve a\\ncompany carrying on such qualifying activities as may be prescribed,\\nas a financial sector incentive company for the purposes of this\\nsection, and the Minister or authorised body may approve different\\nclasses of financial sector incentive companies for the purposes of\\nthis section.\\n[32/2019]\\n[Act 41 of 2020 wef 06/12/2022]\\n(2A) Regulations under subsection (1) may make transitional\\nprovisions to apply the rate of tax of 12% to —\\n(a) any company which holds membership of any class or\\ndescription of a futures market, or of a clearing house for\\nthe futures market, maintained by the Singapore Exchange\\nLimited or any of its subsidiaries; and\\n(b) a member of the corporation known as the Singapore\\nCommodity Exchange Ltd,\\nwhich has given notice within a specified period to the Monetary\\nAuthority of Singapore for the purposes of the application of these\\ntransitional provisions, in respect of its income derived on or after\\n1 January 2011 but on or before 31 December 2013 from specified\\nqualifying activities.\\n[43Q\\n[34/2016]\\nConcessionary rate of tax for provision of processing services\\nto financial institutions\\n43K.—(1) Despite section 43, the Minister may by regulations\\nprovide that tax at the rate of 5% is to be levied and paid for each year\\nof assessment upon such income as the Minister may specify of an\\napproved company derived by it on or after 27 February 2004 from\\nthe provision of prescribed processing services in Singapore to any\\nfinancial institution or another approved company; and those\\nregulations may provide for the deduction of losses of an approved\\ncompany otherwise than in accordance with section 37(3).\\nIncome Tax Act 1947\\n903\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(2) The Minister or a person appointed by the Minister may, subject\\nto such conditions as the Minister or appointed person may impose,\\napprove a company as an approved company for the purposes of this\\nsection.\\n[32/2019]\\n(3) No approval under this section may be granted to any company\\non or after 27 February 2009.\\n(4) In this section, “financial institution” means —\\n(a) any institution in Singapore that is licensed or approved by\\nthe Monetary Authority of Singapore, or exempted from\\nsuch licensing or approval, under any written law\\nadministered by the Monetary Authority of Singapore; or\\n(b) any institution outside Singapore that is licensed or\\napproved, or exempted from such licensing or approval,\\nby its financial supervisory authority for the carrying on of\\nfinancial activities.\\n[43R\\nConcessionary rate of tax for shipping investment manager\\n43L.—(1) Despite section 43, the Minister may by regulations\\nprovide that tax at the rate of 10% is to be levied and paid for each\\nyear of assessment upon such income as the Minister may specify of\\nan approved shipping investment manager derived by it on or after\\n1 March 2006 from —\\n(a) managing an approved shipping investment enterprise; or\\n(b) such other services or activities carried out for an approved\\nshipping investment enterprise as may be prescribed.\\n(2) Regulations made under subsection (1) may provide for the\\ndeduction of losses otherwise than in accordance with section 37(3).\\n(3) The Minister or an authorised body may, subject to such\\nconditions as the Minister or authorised body may impose, approve a\\nshipping investment manager as an approved shipping investment\\nmanager for the purposes of this section.\\n[32/2019]\\n[Act 41 of 2020 wef 12/04/2024]\\nIncome Tax Act 1947\\n2020 Ed.\\n904\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(4) Approval of a shipping investment manager under this section\\nmay be granted between 1 March 2006 and 28 February 2011 (both\\ndates inclusive).\\n[37/2014]\\n(4A) Approval of a shipping investment manager under this section\\nmay be granted between 1 March 2011 and 31 December 2026 (both\\ndates inclusive) for such period not exceeding 5 years as the Minister\\nor authorised body may specify, except that the Minister or authorised\\nbody may extend the period so specified for such further periods as\\nthe Minister or authorised body thinks fit.\\n[37/2014; 2/2016; 41/2020]\\n[Act 27 of 2021 wef 12/04/2024]\\n(5) In this section —\\n“approved” means approved by the Minister or an authorised\\nbody;\\n[Act 41 of 2020 wef 12/04/2024]\\n“shipping investment enterprise” has the meaning given by\\nsection 13P;\\n“shipping\\ninvestment\\nmanager”\\nmeans\\nany\\ncompany\\nincorporated in Singapore.\\n[43W\\nConcessionary rate of tax for trust income to which beneficiary\\nis entitled\\n43M.—(1) Where any beneficiary of a trust who is resident in\\nSingapore is entitled to any share of the statutory income of the trust,\\nthat share is, if it would have been subject to a concessionary rate of\\ntax under any provision of this Part had it been derived or received\\ndirectly by the beneficiary rather than the trustee of the trust, subject\\nto the same concessionary rate of tax.\\n(2) This section does not apply to —\\n(a) any income of a real estate investment trust within the\\nmeaning of section 43(10);\\n(b) any income of a designated unit trust within the meaning of\\nsection 35(14);\\nIncome Tax Act 1947\\n905\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) [Deleted by Act 37 of 2014]\\n(d) any income of a trust fund prescribed under section 13C;\\n(e) any income of a foreign trust specified under section 13F;\\n(f) any income of a locally‑administered trust prescribed\\nunder section 13N;\\n(g) any income of a trust the trustee of which is a prescribed\\nperson under section 13D; or\\n(h) any income of an approved trust fund referred to in the\\ndefinition of “approved person” under section 13U(5), or\\nof a trust fund that is a feeder fund or master fund approved\\nunder section 13U.\\n[43X\\n[37/2014]\\nConcessionary rate of tax for estate income received by\\nbeneficiary, etc.\\n43MA. Where any person resident in Singapore is a beneficiary of\\nan estate administered in Singapore, and any share of the statutory\\nincome of the estate is received by, distributed to or applied to the\\nbenefit of that person, that share is, if it would have been subject to a\\nconcessionary rate of tax under any provision of this Part had it been\\nderived or received directly by that person instead of the executor of\\nthe estate, subject to the same concessionary rate of tax.\\n[Act 30 of 2023 wef 30/10/2023]\\nConcessionary rate of tax for leasing of aircraft and aircraft\\nengines\\n43N.—(1) Despite section 43, tax at the following rate is to be\\nlevied, and paid, for each year of assessment upon the income of an\\napproved aircraft leasing company accruing in or derived from\\nSingapore in respect of the leasing of any aircraft or aircraft engine or\\nsuch other activity as the Minister may by regulations prescribe:\\n(a) where the company is approved before 1 April 2017,\\n5% or 10%, as specified by the Minister or such person as\\nthe Minister may appoint;\\nIncome Tax Act 1947\\n2020 Ed.\\n906\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) where the company is approved on or after 1 April\\n2017, 8%.\\n[39/2017]\\n(1A) Despite subsection (1), where —\\n(a) a company was approved as an approved aircraft leasing\\ncompany on or before 31 March 2017;\\n(b) the company is approved again as an approved aircraft\\nleasing company at any time on or after 1 April 2017;\\n(c) the period of approval in paragraph (b) (called in this\\nsubsection the current approval period) starts immediately\\nupon the expiry of the period of the approval in\\nparagraph (a) (called in this subsection the previous\\napproval period); and\\n(d) the company elects to apply the concessionary rate of tax\\nspecified to it under subsection (1)(a) for the previous\\napproval period, to the company’s income that accrues in\\nor is derived from Singapore between the date of\\ncommencement of the current approval period and\\n31 December 2027 (both dates inclusive), in respect of\\nan aircraft or aircraft engine to which this subsection\\napplies,\\nthen that concessionary rate of tax applies to such income if the\\ncompany remains an approved aircraft leasing company at the time\\nthe income accrues to or is derived by the company.\\n[45/2018]\\n(1AA) To avoid doubt, the approval in subsection (1A)(b) includes\\nan approval made under subsection (2) as in force immediately before\\nthe date of commencement of section 61(26) of the Income Tax\\n(Amendment) Act 2020.\\n[Act 41 of 2020 wef 12/04/2024]\\n(1B) Subsection (1A) —\\n(a) applies to an aircraft or aircraft engine that the company\\neither owned (whether legally or beneficially) or of which\\nit was a lessee under a finance lease treated as a sale under\\nIncome Tax Act 1947\\n907\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nsection 10C, as at the last day of the previous approval\\nperiod; and\\n(b) does not apply to any aircraft or aircraft engine that —\\n(i) has been disposed of by the company after that day\\nand then re‑acquired by or leased back to the\\ncompany; or\\n(ii) has not been delivered to the company as of that day.\\n[45/2018]\\n(1C) The election under subsection (1A) must be made by written\\nnotice to the Comptroller at the time of lodgment of the return of\\nincome for the year of assessment relating to the basis period in which\\nthe approval in subsection (1A)(b) is given or within such extended\\ntime as the Comptroller may allow.\\n[45/2018]\\n(2) The Minister or an authorised body may, subject to such\\nconditions as the Minister or authorised body may impose, approve\\nan aircraft leasing company as an approved aircraft leasing company\\nfor the purposes of this section.\\n[32/2019]\\n[Act 41 of 2020 wef 12/04/2024]\\n(3) Tax at the concessionary rate of the income of an approved\\naircraft leasing company under subsection (1) is for a period not\\nexceeding 5 years, except that the Minister or an authorised body may\\nextend that period for a further period or periods, each of which must\\nnot exceed 5 years.\\n[Act 41 of 2020 wef 12/04/2024]\\n(4) Approval may be granted under this section between 1 March\\n2007 and 31 December 2027 (both dates inclusive).\\n[37/2014; 39/2017]\\n[Act 33 of 2022 wef 04/11/2022]\\n(5) In determining the income of an approved aircraft leasing\\ncompany from the leasing of any aircraft or aircraft engine —\\n(a) the allowances under section 19, 19A, 20, 21, 22 or 23\\nmust be taken into account even if no claim for such\\nallowances has been made;\\nIncome Tax Act 1947\\n2020 Ed.\\n908\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) the allowances under section 19, 19A, 20, 21, 22 or 23 in\\nrespect of finance leasing in any year of assessment must\\nbe deducted against the income from such leasing for that\\nyear of assessment, and any balance of the allowances is\\nnot, subject to paragraph (c), available as a deduction\\nagainst any other income or available for transfer under\\nsection 37B;\\n(c) where the approved aircraft leasing company ceases to\\nderive income from finance leasing in the basis period for\\nany year of assessment, any balance of the allowances in\\nrespect of finance leasing after the deduction against the\\nincome from such leasing is available as a deduction\\nagainst any other income for that year of assessment and\\nfor any subsequent year of assessment in accordance with\\nsection 23; and\\n(d) the Comptroller must determine the manner and extent to\\nwhich —\\n(i) allowances under section 19, 19A, 20, 21, 22 or 23\\nand any expenses and donations allowable under this\\nAct are to be deducted; and\\n(ii) any loss may be deducted under section 37.\\n(6) Subsection (5) applies, with the necessary modifications, in\\ndetermining the income of an approved aircraft leasing company\\nfrom\\nany\\nactivity\\nprescribed\\nby\\nregulations\\nmade\\nunder\\nsubsection (1) as if such income were income from operating leasing.\\n(7) In this section —\\n“aircraft leasing company” means a company incorporated and\\nresident in Singapore or a registered business trust, carrying\\non a business of leasing aircraft or aircraft engines;\\n“finance leasing”, in relation to any aircraft or aircraft engine,\\nmeans a lease of the aircraft or aircraft engine (including any\\narrangement or agreement in connection with the lease)\\nwhich has the effect of transferring substantially the\\nobsolescence, risks or rewards incidental to ownership of\\nsuch aircraft or aircraft engine to the lessee;\\nIncome Tax Act 1947\\n909\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“leasing of any aircraft or aircraft engine” means the leasing of\\nany aircraft or aircraft engine, other than one which has been\\ntreated as though it had been sold pursuant to regulations\\nmade under section 10C(1);\\n“operating leasing”, in relation to any aircraft or aircraft engine,\\nmeans the leasing of the aircraft or aircraft engine, other than\\nfinance leasing.\\n[43Y\\n[32/2019]\\nConcessionary rate of tax for aircraft investment manager\\n43O.—(1) Despite section 43, the Minister may by regulations\\nprovide that tax at the rate of 10% is to be levied and paid for each\\nyear of assessment upon such income as the Minister may specify of\\nan approved aircraft investment manager derived by it on or after\\n1 March 2007 from —\\n(a) managing an approved aircraft leasing company; or\\n(b) such other services or activities carried out for an approved\\naircraft leasing company as may be prescribed by\\nregulations.\\n(2) Regulations made under subsection (1) may provide for the\\ndeduction of losses otherwise than in accordance with section 37(3).\\n(3) The Minister or an authorised body may, subject to such\\nconditions as the Minister or authorised body may impose, approve\\nan aircraft investment manager as an approved aircraft investment\\nmanager for the purposes of this section.\\n[32/2019]\\n[Act 41 of 2020 wef 12/04/2024]\\n(4) Approval may be granted under this section between 1 March\\n2007 and 31 December 2027 (both dates inclusive).\\n[37/2014; 39/2017]\\n[Act 33 of 2022 wef 04/11/2022]\\n(5) In this section —\\n“aircraft investment manager” means any company incorporated\\nin Singapore;\\nIncome Tax Act 1947\\n2020 Ed.\\n910\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“aircraft\\nleasing\\ncompany”\\nhas\\nthe\\nmeaning\\ngiven\\nby\\nsection 43N;\\n“approved” means approved by the Minister or an authorised\\nbody.\\n[Act 41 of 2020 wef 12/04/2024]\\n[43Z\\nConcessionary rate of tax for container investment enterprise\\n43P.—(1) Despite section 43 but subject to subsection (5), tax at\\nthe rate of 5% or 10% as the Minister or an authorised body may\\nspecify, is to be levied and paid for each year of assessment upon the\\nincome of an approved container investment enterprise accruing in or\\nderived from Singapore from —\\n(a) the leasing of any container owned by the enterprise\\nacquired before or during the period of approval of the\\nenterprise mentioned in subsection (4) and used for the\\ninternational transportation of goods;\\n(b) foreign exchange and risk management activities which are\\ncarried out in connection with and incidental to the leasing\\nmentioned in paragraph (a);\\n(c) for the year of assessment 2013 and subsequent years of\\nassessment, the leasing of any intermodal equipment\\nowned by the enterprise acquired before or during the\\nperiod of approval of the enterprise mentioned in\\nsubsection\\n(4),\\nwhich\\nis\\nincidental\\nto\\nthe\\nleasing\\nmentioned in paragraph (a);\\n(d) for the year of assessment 2013 and subsequent years of\\nassessment, foreign exchange and risk management\\nactivities which are carried out in connection with and\\nincidental to the leasing mentioned in paragraph (c);\\n(e) the leasing of any container used for international\\ntransportation of goods, if the container was —\\n(i) acquired by an approved related party before or\\nduring the period of the approval of the related party\\nunder subsection (4); and\\nIncome Tax Act 1947\\n911\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(ii) leased by the approved related party to the approved\\ncontainer investment enterprise;\\n(f) the leasing of any intermodal equipment that is incidental\\nto the lease mentioned in paragraph (e), if the intermodal\\nequipment was —\\n(i) acquired by an approved related party before or\\nduring the period of the approval of the related party\\nunder subsection (4); and\\n(ii) leased by the approved related party to the approved\\ncontainer investment enterprise; and\\n(g) foreign exchange and risk management activities that are\\ncarried out in connection with and incidental to the leases\\nmentioned in paragraphs (e) and (f).\\n[32/2019]\\n[Act 41 of 2020 wef 12/04/2024]\\n(1A) Subsection (1)(e), (f) and (g) only applies to income derived\\non or after 12 December 2018.\\n[32/2019]\\n(2) Subsection (1)(a), (b), (c) or (d) continues to apply to a\\ncontainer investment enterprise the approval of which has expired or\\nbeen withdrawn, but which continues to derive income of the type\\nmentioned in that provision in relation to a container or an intermodal\\nequipment acquired before or during the period of approval of the\\nenterprise, provided that the enterprise has by the date of the expiry or\\nbefore the withdrawal of its approval fulfilled all the conditions\\nmentioned in subsection (4), and any reference in this section to an\\napproved container investment enterprise is to be construed\\naccordingly.\\n[32/2019]\\n(2A) Subsection (1)(e), (f) or (g) continues to apply to a container\\ninvestment enterprise the approval of which has expired or been\\nwithdrawn, but that continues to derive income of the type mentioned\\nin that provision if both the container investment enterprise and the\\napproved related party have by the date of the expiry or before the\\nIncome Tax Act 1947\\n2020 Ed.\\n912\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nwithdrawal, fulfilled all the conditions of their respective approvals\\nunder subsection (4).\\n[32/2019]\\n(2B) For the purpose of subsection (2A), the container investment\\nenterprise is treated under this section as an approved container\\ninvestment enterprise.\\n[32/2019]\\n(2C) Subsection (1)(a), (c), (e) and (f) does not apply to income\\nderived on or after 12 December 2018 from the leasing of a container\\nor intermodal equipment that is acquired by the approved container\\ninvestment enterprise or the approved related party by way of a\\nfinance lease entered into with an entity that is not an approved\\nrelated party.\\n[32/2019]\\n(3) The Minister or an authorised body may, at any time between\\n1 April 2008 and 31 December 2026 (both dates inclusive), approve a\\ncontainer investment enterprise or a related party of an approved\\ncontainer investment enterprise for the purposes of subsection (1).\\n[37/2014; 2/2016; 32/2019; 41/2020]\\n[Act 41 of 2020 wef 12/04/2024]\\n(4) The approval under subsection (3) is subject to such conditions\\nas the Minister may specify, and must —\\n(a) where the approval is granted during the period between\\n1 April 2008 and 28 February 2011 (both dates inclusive),\\nbe for such period not exceeding 10 years, as the Minister\\nmay specify; and\\n(b) where the approval is granted during the period between\\n1 March 2011 and 31 December 2026 (both dates\\ninclusive), be for such period not exceeding 5 years, as\\nthe Minister may specify,\\nexcept that the Minister may extend the period so specified for such\\nfurther periods as the Minister thinks fit.\\n[37/2014; 2/2016; 41/2020]\\n(4A) A reference to the Minister in subsection (4), in the case of an\\napproval granted on or after the date of commencement of\\nIncome Tax Act 1947\\n913\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nsection 38(1)(a) of the Income Tax (Amendment) Act 2021, includes\\nthe authorised body.\\n[Act 27 of 2021 wef 12/04/2024]\\n(5) The Minister or an authorised body may, in respect of any\\ncontainer, class of containers, intermodal equipment or class of\\nintermodal equipment, specify a period not exceeding a period of\\n15 years, during which the income from the leasing of such container,\\nclass of containers, intermodal equipment or class of intermodal\\nequipment is subject to the applicable concessionary tax rate under\\nsubsection (1).\\n[Act 41 of 2020 wef 12/04/2024]\\n(6) In determining the income of an approved container investment\\nenterprise from the leasing of any container or intermodal\\nequipment —\\n(a) the allowances under section 19, 19A, 20, 21, 22 or 23\\n(other\\nthan\\nallowances\\nmade\\nto\\nthe\\nlessee\\nunder\\nregulations made under section 10C) must be taken into\\naccount even if no claim for such allowances has been\\nmade;\\n(b) the allowances under section 19, 19A, 20, 21, 22 or 23\\n(other\\nthan\\nallowances\\nmade\\nto\\nthe\\nlessee\\nunder\\nregulations made under section 10C) in respect of\\nfinance leasing in any year of assessment must be\\ndeducted against the income from such leasing for that\\nyear of assessment, and any balance of the allowances is\\nnot, subject to paragraph (c), available as a deduction\\nagainst any other income or available for transfer under\\nsection 37B;\\n(c) where the approved container investment enterprise ceases\\nto derive income from finance leasing in the basis period\\nfor any year of assessment, any balance of the allowances\\nin respect of finance leasing after the deduction against the\\nincome from such leasing is available as a deduction\\nagainst any other income for that year of assessment and\\nfor any subsequent year of assessment in accordance with\\nsection 23; and\\nIncome Tax Act 1947\\n2020 Ed.\\n914\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(d) the Comptroller must determine the manner and extent to\\nwhich —\\n(i) allowances under section 19, 19A, 20, 21, 22 or 23\\nand any expenses and donations allowable under this\\nAct are to be deducted; and\\n(ii) any loss may be deducted under section 37.\\n[2/2016]\\n(7) In this section —\\n“approved” means approved by the Minister or an authorised\\nbody;\\n[Act 41 of 2020 wef 12/04/2024]\\n“container” means a sea‑container used for the international\\ntransportation of goods and that adheres to the standards\\ndefined by the Institute of International Container Lessors or\\nthe International Organization for Standardization for such\\nsea‑container, or (for the year of assessment 2013 and\\nsubsequent\\nyears\\nof\\nassessment)\\nby\\nany\\nof\\nthose\\norganisations or any other equivalent organisation for such\\nsea‑container;\\n“container investment enterprise” means —\\n(a) a company incorporated and resident in Singapore; or\\n(b) a registered business trust;\\n“finance leasing”, in relation to any container or intermodal\\nequipment, means a lease of the container or intermodal\\nequipment (including any arrangement or agreement in\\nconnection\\nwith\\nthe\\nlease)\\nwhich\\nhas\\nthe\\neffect\\nof\\ntransferring substantially the obsolescence, risks or rewards\\nincidental to ownership of such container or intermodal\\nequipment to the lessee;\\n“intermodal equipment” means any trailer, flatcar, car rack or\\nother equipment, which facilitates the transportation of\\ncontainers from one mode of transport to another;\\n“registered business trust” has the meaning given by the\\nBusiness Trusts Act 2004;\\nIncome Tax Act 1947\\n915\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“related party”, in relation to an approved container investment\\nenterprise, means —\\n(a) any entity that is related to the approved container\\ninvestment enterprise in such manner as may be\\nprescribed by rules made under section 7; or\\n(b) any other entity that is approved by the Minister or\\nauthorised body in any particular case to be a related\\nparty\\nof\\nthe\\napproved\\ncontainer\\ninvestment\\nenterprise.\\n[32/2019; 27/2021]\\n[Act 27 of 2021 wef 12/04/2024]\\n(8) Rules made for the purpose of the definition of “related party” in\\nsubsection (7) may be made to take effect from (and including)\\n12 December 2018.\\n[43ZA\\n[32/2019]\\nConcessionary rate of tax for container investment manager\\n43Q.—(1) Despite section 43, the Minister may by regulations\\nprovide that tax at the rate of 10% is to be levied and paid for each\\nyear of assessment upon such income as the Minister may specify of\\nan approved container investment manager derived by it on or after\\n1 April 2008 from —\\n(a) managing an approved container investment enterprise; or\\n(b) such other services or activities carried out for an approved\\ncontainer investment enterprise as may be prescribed.\\n(2) Regulations made under subsection (1) may provide for the\\ndeduction of losses otherwise than in accordance with section 37(3).\\n(3) The Minister or an authorised body may, subject to such\\nconditions as the Minister or authorised body may impose, approve a\\ncontainer investment manager as an approved container investment\\nmanager for the purposes of this section.\\n[32/2019]\\n[Act 41 of 2020 wef 12/04/2024]\\nIncome Tax Act 1947\\n2020 Ed.\\n916\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(4) Approval of a container investment manager under this section\\nmay be granted between 1 April 2008 and 28 February 2011 (both\\ndates inclusive).\\n[37/2014]\\n(4A) Approval of a container investment manager under this\\nsection may be granted between 1 March 2011 and 31 December\\n2026 (both dates inclusive) for such period not exceeding 5 years as\\nthe Minister or authorised body may specify, except that the Minister\\nor authorised body may extend the period so specified for such further\\nperiods as the Minister or authorised body thinks fit.\\n[37/2014; 2/2016; 41/2020]\\n[Act 27 of 2021 wef 12/04/2024]\\n(5) In this section —\\n“approved” means approved by the Minister or an authorised\\nbody;\\n[Act 41 of 2020 wef 12/04/2024]\\n“container investment enterprise” has the meaning given by\\nsection 43P;\\n“container\\ninvestment\\nmanager”\\nmeans\\nany\\ncompany\\nincorporated in Singapore.\\n[43ZB\\nConcessionary rate of tax for approved insurance brokers\\n43R.—(1) Despite section 43, the Minister may by regulations\\nprovide that tax at the rate of 10% is to be levied and paid for each\\nyear of assessment upon such income of an approved insurance\\nbroker as the Minister may specify that is derived by it on or after a\\nprescribed date from the provision of such direct insurance broking,\\nreinsurance broking or advisory services relating to the insurance\\nsector as may be prescribed.\\n[45/2018]\\n(2) Regulations made under subsection (1) may provide for the\\ndeduction of losses otherwise than in accordance with section 37(3).\\n(3) The Minister or an authorised body may, subject to such\\nconditions as the Minister or authorised body may impose, approve a\\nIncome Tax Act 1947\\n917\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\ncompany that is a direct insurance broker, general reinsurance broker\\nor life reinsurance broker, as an approved insurance broker for the\\npurposes of this section.\\n[32/2019]\\n[Act 41 of 2020 wef 06/12/2022]\\n(4) Approval may be granted under this section between 1 April\\n2008 and 31 December 2028 (both dates inclusive).\\n[37/2014; 45/2018]\\n[Act 30 of 2023 wef 30/10/2023]\\n(5) In this section, “direct insurance broker”, “general reinsurance\\nbroker” and “life reinsurance broker” have the meanings given by\\nsection 2 of the Insurance Act 1966.\\n[43ZC\\n[32/2019]\\nConcessionary rate of tax for income derived from managing\\nqualifying registered business trust or company\\n43S.—(1) Despite section 43, the Minister may by regulations\\nprovide that tax at the rate of 10% is to be levied and paid for each\\nyear of assessment upon such income as the Minister may specify\\nderived on or after 1 April 2008 —\\n(a) by an approved trustee‑manager of a qualifying registered\\nbusiness trust from providing services in such capacity in\\nrespect of such infrastructure asset or project situated\\noutside Singapore as may be prescribed by regulations\\n(called in this section a prescribed offshore infrastructure\\nasset or project); and\\n(b) by an approved fund management company from —\\n(i) managing a qualifying company in respect of any\\nprescribed offshore infrastructure asset or project; or\\n(ii) arranging, on behalf of a qualifying company, any\\nloan of designated securities under a securities\\nlending\\narrangement\\nin\\nwriting\\nto\\nanother\\nqualifying company.\\n(2) Regulations made under subsection (1) may provide for the\\ndeduction of losses otherwise than in accordance with section 37(3).\\nIncome Tax Act 1947\\n2020 Ed.\\n918\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(3) For the purposes of this section, the Minister or an authorised\\nbody may, subject to such conditions as the Minister or authorised\\nbody may impose —\\n(a) approve a trustee‑manager of a qualifying registered\\nbusiness trust as an approved trustee‑manager; or\\n(b) approve a fund management company as an approved fund\\nmanagement company.\\n[32/2019]\\n[Act 41 of 2020 wef 06/12/2022]\\n(4) Approval may be granted under this section between 1 April\\n2008 and 31 December 2022 (both dates inclusive).\\n[37/2014; 39/2017]\\n(5) In this section —\\n“designated securities” means —\\n(a) stocks, shares, bonds or other securities, denominated\\nin any foreign currency, issued by a company which\\nis neither incorporated in Singapore nor resident in\\nSingapore; or\\n(b) bonds denominated in any foreign currency issued by\\nany foreign government;\\n“fund management company” means any company incorporated\\nin Singapore;\\n“qualifying company”, in relation to an approved fund\\nmanagement company, means any company incorporated in\\nSingapore which —\\n(a) is listed or to be listed on any exchange in Singapore\\nwithin one year from the date the approved fund\\nmanagement company is so approved; and\\n(b) owns any offshore infrastructure asset or any asset\\nused in an offshore infrastructure project, or debt\\nsecurities or shares of any company that owns any\\noffshore infrastructure asset or any asset used in an\\noffshore infrastructure project;\\nIncome Tax Act 1947\\n919\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“qualifying registered business trust”, in relation to an approved\\ntrustee‑manager,\\nmeans\\nany\\nregistered\\nbusiness\\ntrust\\nwhich —\\n(a) is listed or to be listed on any exchange in Singapore\\nwithin\\none\\nyear\\nfrom\\nthe\\ndate\\nthe\\napproved\\ntrustee‑manager is so approved; and\\n(b) owns any offshore infrastructure asset or any asset\\nused in an offshore infrastructure project, or debt\\nsecurities or shares of any company that owns any\\noffshore infrastructure asset or any asset used in an\\noffshore infrastructure project;\\n“registered business trust” and “trustee‑manager” have the\\nmeanings given by the Business Trusts Act 2004.\\n[43ZD\\n[32/2019]\\nConcessionary rate of tax for ship broking and forward freight\\nagreement trading\\n43T.—(1) Despite section 43, tax at the rate of 10% is to be levied\\nand paid for each year of assessment upon such amount of —\\n(a) fees or commissions derived in the period between 1 April\\n2010 and 31 May 2011 (both dates inclusive) by an\\napproved company from ship broking; and\\n(b) gains derived in the period between 1 April 2010 and\\n31 May 2011 (both dates inclusive) by an approved\\ncompany from forward freight agreement trading,\\nwhich in the aggregate are in excess of the base amount.\\n(2) Approval may be granted under this section between 1 April\\n2010 and 31 May 2011 (both dates inclusive) to a company for a\\nperiod of 5 years, subject to such conditions as the Minister may\\nimpose.\\n[37/2014]\\nIncome Tax Act 1947\\n2020 Ed.\\n920\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(3) The base amount mentioned in subsection (1) is —\\n(a) where the approved company had carried out the ship\\nbroking or forward freight agreement trading or both\\n(called in this paragraph such activity) in Singapore at any\\ntime during the period of 3 years immediately preceding\\nthe date on which approval is granted under this section,\\nthe amount ascertained by dividing the net profit before tax\\nas shown in the audited accounts of the approved company\\nthat is derived from carrying out such activity during that\\nperiod by the actual number of months in that period in\\nwhich such activity was carried out and multiplying by 12;\\n(b) where the approved company had not carried out the ship\\nbroking or forward freight agreement trading in Singapore,\\nat any time during the period of 3 years immediately\\npreceding the date on which approval is granted under this\\nsection, zero; or\\n(c) such amount as the Minister may specify in substitution for\\nthe amount mentioned in paragraph (a) or (b).\\n(4) In determining the income of an approved company from the\\ncarrying out of ship broking or forward freight agreement trading or\\nboth in Singapore —\\n(a) the allowances under section 19, 19A, 20, 21, 22 or 23\\nmust be taken into account even if no claim for such\\nallowances has been made; and\\n(b) the Comptroller must determine the manner and extent to\\nwhich —\\n(i) allowances under section 19, 19A, 20, 21, 22 or 23\\nand any expenses and donations allowable under this\\nAct are to be deducted; and\\n(ii) any loss may be deducted under section 37.\\n(5) In this section —\\n“approved company” means a company which —\\n(a) is incorporated and resident in Singapore;\\nIncome Tax Act 1947\\n921\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) carries on the business of ship broking or forward\\nfreight agreement trading or both in Singapore; and\\n(c) is approved by the Minister, or such person as the\\nMinister may appoint, for the purpose of this section;\\n“forward freight agreement trading” means the undertaking of a\\nposition under a forward freight agreement trade where such\\ntrade is in connection with shipping freight rates;\\n“ship broking” means —\\n(a) the broking of sale and purchase of vessels (including\\nthe activity of valuing the vessels);\\n(b) the matching of vessel owners (which intend to build\\nnew vessels) to shipyards based on the vessel\\nowners’ requirements;\\n(c) the matching of vessels to —\\n(i) cargoes; or\\n(ii) vessel owners and vessel charterers;\\n(d) the valuation of vessels; or\\n(e) the matching of forward freight agreement traders\\nwhere the forward freight agreement trade is in\\nconnection with shipping freight rates,\\nand includes the provision of research, consultancy or\\nadvisory services using information derived from the\\nbusiness of carrying on any of the activities referred to in\\nparagraphs (a) to (e), where the total sum of the fees (called in\\nthis definition the said sum) derived by the approved\\ncompany from the research, consultancy and advisory\\nservices in the basis period for the year of assessment\\nconcerned is not more than 20% of the sum of —\\n(f) the total fees and commissions derived by the\\napproved\\ncompany\\nfrom\\nall\\nof\\nthe\\nactivities\\nreferred to in paragraphs (a) to (e) in the basis\\nperiod for that year of assessment; and\\n(g) the said sum,\\nIncome Tax Act 1947\\n2020 Ed.\\n922\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nunless the Minister otherwise allows.\\n[43ZE\\nConcessionary rate of tax for shipping‑related support services\\n43U.—(1) Despite section 43, tax at the rate of 10% is to be levied\\nand paid for each year of assessment upon the amount of income in\\nsubsection (1A) of an approved company derived on or after the\\nservice approval date and during the period of its approval under\\nsubsection (2) (but not any extended period of its approval under\\nsubsection (5A)), from providing in or from Singapore any\\nshipping‑related\\nsupport\\nservice\\napproved\\nfor\\nit\\nunder\\nsubsection (2A).\\n[2/2016]\\n(1A) In subsection (1), the amount of the income is that which\\nexceeds\\nthe\\nbase\\namount\\ncalculated\\nin\\naccordance\\nwith\\nsubsection (4).\\n[2/2016]\\n(2) Approval may be granted under this section between 1 June\\n2011 and 31 December 2026 (both dates inclusive) to a company for a\\nperiod of 5 years; and may be given subject to such conditions as the\\nMinister or authorised body may impose.\\n[37/2014; 2/2016; 41/2020]\\n[Act 27 of 2021 wef 12/04/2024]\\n(2A) The Minister or authorised body must approve for the\\ncompany one or more shipping‑related support services for the\\npurposes of subsection (1) at the time of granting the approval, and\\nmay approve for the company additional shipping‑related support\\nservices during the period it is approved.\\n[2/2016]\\n[Act 41 of 2020 wef 12/04/2024]\\n(3) A company that is deemed an approved company on 1 June\\n2011 by virtue of regulations made under subsection (7), is deemed to\\nhave been approved for such period not exceeding 10 years from that\\ndate as the Minister may specify in the regulations.\\n(4) The base amount mentioned in subsection (1A) or (5E) is\\ncalculated in accordance with the following provisions:\\nIncome Tax Act 1947\\n923\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(a) where the approved company had provided one or more of\\nthe shipping‑related support services approved for it at any\\ntime during the period of 3 years immediately before the\\ndate of its approval, the base amount is ascertained by\\ndividing the aggregate net profit before tax as shown in its\\naudited accounts (or such other accounts as the Minister or\\nauthorised body may approve for the company) that is\\nderived from providing all of those services during that\\nperiod by the actual number of months (a period of less\\nthan a month being reckoned as one month) during that\\nperiod in which those services were provided and\\nmultiplying by 12;\\n[Act 41 of 2020 wef 12/04/2024]\\n(b) where the company had not provided any of the\\nshipping‑related support services approved for it at any\\ntime during the period of 3 years immediately before the\\ndate of its approval, the base amount is zero; or\\n(c) such amount as the Minister may specify in substitution for\\nthe amount mentioned in paragraph (a) or (b).\\n[2/2016; 41/2020]\\n(5) The base amount determined in accordance with subsection (4)\\napplies to the approved company for the entire duration of the period\\nof its approval (but not any extended period of its approval under\\nsubsection (5A)), unless the Minister otherwise decides.\\n[2/2016; 41/2020]\\n(5A) The Minister or authorised body may extend the period of any\\napproval under subsection (2) for further periods of 5 years at any one\\ntime, and the extension is subject to the company satisfying such\\nconditions as the Minister or authorised body has imposed on it at the\\ntime of granting the extension.\\n[2/2016]\\n[Act 41 of 2020 wef 12/04/2024]\\n(5B) The Minister or authorised body must approve for the\\ncompany one or more shipping‑related support services for the\\npurposes of subsection (5C) or (5CA) at the time of granting the\\nextension,\\nand\\nmay\\napprove\\nfor\\nthe\\ncompany\\nadditional\\nIncome Tax Act 1947\\n2020 Ed.\\n924\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nshipping‑related support services during any extended period of its\\napproval.\\n[2/2016; 41/2020]\\n[Act 41 of 2020 wef 12/04/2024]\\n(5C) Despite section 43, where an approved company whose period\\nof approval is extended under subsection (5A) did not make an\\nelection under subsection (5F) for the extended period, then tax at the\\nrate of A% is levied and must be paid for each year of assessment\\nupon the amount of its income in subsection (5D) that is derived on or\\nafter the service approval date and during the extended period, from\\nproviding in or from Singapore any shipping‑related support service\\napproved for it under subsection (5B).\\n[41/2020]\\n(5CA) Despite section 43, where an approved company whose\\nperiod of approval is extended under subsection (5A) made an\\nelection under subsection (5F) for the extended period, then tax at the\\nrate of (0.5 + A)% is levied and must be paid for each year of\\nassessment upon the amount of its income in subsection (5E) that is\\nderived on or after the service approval date and during the extended\\nperiod, from providing in or from Singapore any shipping‑related\\nsupport service approved for it under subsection (5B).\\n[41/2020]\\n(5CB) In subsections (5C) and (5CA), “A” is the concessionary rate\\nof tax applicable to the income of the approved company from\\nproviding in or from Singapore any shipping‑related support service\\napproved for it under subsection (2A) or (5B) (as the case may be)\\nimmediately before the commencement of the extended period\\nconcerned of its approval under subsection (5A).\\n[41/2020]\\n(5D) In subsection (5C), the amount of the income is that which\\nexceeds\\nthe\\nbase\\namount\\ncalculated\\nin\\naccordance\\nwith\\nsubsection (5I).\\n[2/2016]\\n(5E) In subsection (5CA), the amount of the income is that which\\nexceeds the base amount immediately before the commencement of\\nthe extended period concerned of its approval under subsection (5A),\\nIncome Tax Act 1947\\n925\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nwhich is calculated in accordance with subsection (4) or (5I), as the\\ncase may be.\\n[41/2020]\\n(5F) An approved company whose period of approval is extended\\nunder subsection (5A) may make an election for an amount of its\\nincome mentioned in subsection (5CA) that is derived on or after the\\nservice approval date and during the extended period, from providing\\nin or from Singapore any shipping‑related support service approved\\nfor it under subsection (5B), to be taxed in accordance with\\nsubsection (5CA).\\n[41/2020]\\n(5G) An election under subsection (5F) must be made in such form\\nand manner and within such reasonable time as the Minister or\\nauthorised body may allow, and must be accompanied by such\\nparticulars as the Minister or authorised body determines.\\n[2/2016; 41/2020]\\n[Act 41 of 2020 wef 12/04/2024]\\n(5H) An election under subsection (5F) is irrevocable for the\\nextended period of its approval in which the election is made.\\n[41/2020]\\n(5I) The base amount mentioned in subsection (5D) or (5E) is\\ndetermined as follows:\\n(a) where the approved company had provided one or more of\\nthe shipping‑related support services approved for it under\\nsubsection (5B) at any time during the period of 3 years\\nimmediately before the date the extension is granted under\\nsubsection (5A), the base amount is ascertained by the\\nformula\\nA\\nB   \\u0003 12;\\nwhere A is the total net profit before tax as shown in the\\ncompany’s audited accounts (or such other accounts as\\nthe Minister or authorised body may approve for the\\ncompany) that is derived from providing all of those\\nservices during that period of 3 years; and\\nIncome Tax Act 1947\\n2020 Ed.\\n926\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nB is the actual number of months (a period of less than a\\nmonth being reckoned as one month) during that period\\nin which those services were provided;\\n[Act 41 of 2020 wef 12/04/2024]\\n(b) where the company had not provided any of the\\nshipping‑related support services approved for it under\\nsubsection (5B) at any time during the period mentioned in\\nparagraph (a), the base amount is zero;\\n(c) the Minister may in a particular case specify an amount in\\nsubstitution for the amount mentioned in paragraph (a)\\nor (b).\\n[2/2016; 41/2020]\\n(5J) The\\nbase\\namount\\ndetermined\\nin\\naccordance\\nwith\\nsubsection (5I) applies to the approved company for the entire\\nduration of the extended period concerned of its approval under\\nsubsection (5A), unless the Minister otherwise decides.\\n[2/2016; 41/2020]\\n(6) In determining the income of an approved company from the\\nprovision of shipping‑related support services approved for it —\\n(a) the allowances under section 19, 19A, 20, 21, 22 or 23\\nmust be taken into account even if no claim for such\\nallowances has been made; and\\n(b) the Comptroller must determine the manner and extent to\\nwhich —\\n(i) allowances under section 19, 19A, 20, 21, 22 or 23\\nand any expenses and donations allowable under this\\nAct are to be deducted; and\\n(ii) any loss may be deducted under section 37.\\n(7) For the purposes of this section, the Minister may make\\nregulations —\\n(a) to deem a company which, immediately before 1 June\\n2011, was —\\nIncome Tax Act 1947\\n927\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(i) a development and expansion company within the\\nmeaning of section 20 of the Economic Expansion\\nIncentives (Relief from Income Tax) Act 1967\\nengaged in ship management services, ship agency,\\nlogistics or freight forwarding, being activities\\nprescribed\\nas\\nqualifying\\nactivities\\nwithin\\nthe\\nmeaning of that section, and which, in the case of\\na\\ncompany\\nengaged\\nin\\nlogistics\\nor\\nfreight\\nforwarding, is a company —\\n(A) whose operations are or can be controlled,\\ndirectly or indirectly, by another company,\\nbeing one that owns or operates ships;\\n(B) which controls or can control, directly or\\nindirectly,\\nthe\\noperations\\nof\\nsuch\\nother\\ncompany; or\\n(C) whose operations are or can be controlled,\\ndirectly or indirectly, by a person or persons\\nwho\\ncontrol\\nor\\ncan\\ncontrol,\\ndirectly\\nor\\nindirectly,\\nthe\\noperations\\nof\\nsuch\\nother\\ncompany; or\\n(ii) an approved company under section 43T,\\n(a) as an approved company for the purpose of this section\\nfrom that date;\\n(b) to provide for such transitional, supplementary and\\nconsequential matters as the Minister may consider\\nnecessary\\nor\\nexpedient\\nin\\nrelation\\nto\\na\\ncompany\\nmentioned in\\nparagraph (a), including\\nproviding a\\ndifferent base amount for the purposes of subsection (1);\\nand\\n(c) generally to give effect to or to carry out the purposes of\\nthis section.\\nIncome Tax Act 1947\\n2020 Ed.\\n928\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(8) In this section —\\n“approved” means approved by the Minister or an authorised\\nbody;\\n[Act 41 of 2020 wef 12/04/2024]\\n“approved company” means a company which —\\n(a) is incorporated and resident in Singapore;\\n(b) carries on the business of providing shipping‑related\\nsupport services; and\\n(c) is approved for the purpose of this section;\\n“approved related company”, in relation to an approved\\ncompany, means a related company approved at any time\\nfor the approved company for the purpose of the definition of\\n“corporate service”;\\n“container” has the meaning given by section 43P(7);\\n“corporate service” means any of the following services\\nprovided by an approved company to an approved related\\ncompany:\\n(a) sourcing, procurement and distribution of materials\\nand components, products or services for use in the\\nbusiness of the approved related company (excluding\\nmarketing control, planning and brand management);\\n(b) training of crew and staff;\\n(c) crew management (such as recruitment and selection\\nof qualified and trained seafarers, budgeting and\\nstrategic planning in relation to crew requirements,\\noverseeing crew welfare, managing relations with\\nlabour unions, handling insurance matters relating to\\ncrew, and maintaining personnel data to facilitate\\nsearches, planning and analysis);\\n(d) business planning, development and co‑ordination\\n(including\\nthe\\nperformance\\nof\\neconomic\\nor\\ninvestment research and analysis) of information\\nIncome Tax Act 1947\\n929\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nand processes to improve standards of services or\\nproducts;\\n(e) [Deleted by Act 39 of 2017]\\n(f) general management and administration (such as risk\\nmanagement,\\ninternal\\naudit,\\nbudgeting\\nand\\nforecasting,\\nbut\\nexcluding\\nintellectual\\nproperty\\nmanagement);\\n(g) technical support services (such as marine and\\noffshore engineering technical support, accounting\\nand tax consultancy services and actuary services);\\n(h) human resource services;\\n(i) financial and treasury services (such as providing\\ncredit administration and control, arranging credit\\nfacilities, managing funds, and providing guarantees,\\nperformance bonds, standby letters of credit and\\nservices relating to remittances, arranging interest\\nand currency swaps);\\n(j) legal services;\\n(k) corporate finance advisory services;\\n(l) information technology support services,\\nand only services provided to an approved related company\\nof that company are treated as “corporate service” in\\ndetermining\\nif\\nthe\\napproved\\ncompany\\nhas\\nprovided\\nshipping‑related support service which is corporate service\\nfor the purposes of subsections (4) and (5I);\\n“finance leasing” has the meaning given by section 13P(20) or\\n43P(7);\\n“forward freight agreement trading” means the undertaking of a\\nposition under a forward freight agreement trade where such\\ntrade is in connection with shipping freight rates;\\n“freight forwarding and logistics service” means managing a\\ncustomer’s freight, supply chain or logistics process flow;\\nIncome Tax Act 1947\\n2020 Ed.\\n930\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“prescribed ship management services” has the meaning given\\nby section 13A(16);\\n“related company”, in relation to an approved company, means a\\ncompany that is carrying on a shipping‑related business\\nand —\\n(a) whose operations are or can be controlled, directly or\\nindirectly, by the approved company;\\n(b) which controls or can control, directly or indirectly,\\nthe operations of the approved company; or\\n(c) whose operations are or can be controlled, directly or\\nindirectly, by a person or persons who control or can\\ncontrol, directly or indirectly, the operations of the\\napproved company;\\n“service approval date”, in relation to any shipping‑related\\nsupport service approved for an approved company under\\nsubsection (2A) or (5B), means the date the service is\\napproved for that company under that subsection or, in the\\ncase of corporate service to be provided by the company to its\\napproved related company, the date the related company is\\napproved as such;\\n“ship” has the meaning given by section 2(1) of the Merchant\\nShipping Act 1995;\\n“ship agency” means the activities performed on behalf of a\\nshipping enterprise in relation to their vessels, masters and\\ncrews, cargoes and customers;\\n“ship broking” means —\\n(a) the broking of sale and purchase of vessels (including\\nthe activity of valuing the vessels);\\n(b) the matching of vessel owners (which intend to build\\nnew vessels) to shipyards based on the vessel\\nowners’ requirements;\\n(c) the matching of vessels to —\\n(i) cargoes; or\\nIncome Tax Act 1947\\n931\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(ii) vessel owners and vessel charterers;\\n(d) the valuation of vessels; or\\n(e) the matching of forward freight agreement traders\\nwhere the forward freight agreement trade is in\\nconnection with shipping freight rates,\\nand includes the services mentioned in subsection (9);\\n“shipping‑related business” means any of the following:\\n(a) carriage of passengers, mail, livestock or goods by\\nany ship;\\n(b) charter or finance leasing of any ship to any person;\\n(c) use of any ship as a dredger, seismic ship or ship used\\nfor offshore oil and gas activity;\\n(d) use of any ship for towing or salvage operations;\\n(e) leasing (including finance leasing) of any container\\nused for the international transportation of goods;\\n(f) managing an entity which is in the business of\\ncarrying on the charter or leasing (including finance\\nleasing) of containers used for the international\\ntransportation of goods, or ships;\\n(g) ship broking;\\n(h) forward freight agreement trading;\\n(i) ship agency;\\n(j) prescribed ship management services;\\n(k) freight and logistics services in respect of a ship;\\n(l) marine insurance;\\n(m) offshore and marine engineering (including ship\\nrepair and conversion, ship building and offshore\\nengineering);\\n(n) maritime law and arbitration;\\n(o) shipping finance;\\nIncome Tax Act 1947\\n2020 Ed.\\n932\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(p) maritime research and development;\\n(q) use of any ship for offshore renewable energy activity\\nor offshore mineral activity;\\n“shipping‑related support service” means any of the following:\\n(a) ship broking;\\n(b) forward freight agreement trading;\\n(c) prescribed ship management services;\\n(d) ship agency;\\n(e) freight forwarding and logistics service;\\n(f) corporate service.\\n[2/2016; 34/2016; 39/2017]\\n(9) In this section, “ship broking” includes —\\n(a) for the purpose of subsections (1), (2A), (5B), (5C) and\\n(5CA), the provision of research, consultancy or advisory\\nservices using information derived from the business of\\ncarrying\\non\\nany\\nof\\nthe\\nactivities\\nreferred\\nto\\nin\\nparagraphs (a) to (e) of the definition of “ship broking”\\nin subsection (8), where the total sum of the fees derived by\\nthe approved company from the research, consultancy and\\nadvisory services in the basis period for the year of\\nassessment concerned (called in this paragraph the said\\nsum) is not more than 20% of the sum of —\\n(i) the total fees and commissions derived by the\\napproved\\ncompany\\nfrom\\nall\\nof\\nthose\\nother\\nactivities in the basis period for that year of\\nassessment; and\\n(ii) the said sum,\\n(a) or where the Minister otherwise allows such services to be\\nconsidered “ship broking”; and\\n(b) for the purpose of subsections (4) and (5I), the provision,\\nwithin any financial year or part thereof of the approved\\ncompany\\nthat\\nfalls\\nwithin\\nthe\\nperiod\\nof\\n3\\nyears\\nimmediately before the date of its approval, of research,\\nIncome Tax Act 1947\\n933\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nconsultancy or advisory services using information derived\\nfrom the business of carrying on any of the activities\\nreferred to in paragraphs (a) to (e) of the definition of “ship\\nbroking” in subsection (8), where the total sum of the fees\\nderived by the approved company from the research,\\nconsultancy and advisory services in that financial year or\\npart thereof (called in this paragraph the said sum) is not\\nmore than 20% of the sum of —\\n(i) the total fees and commissions derived by the\\napproved\\ncompany\\nfrom\\nall\\nof\\nthose\\nother\\nactivities in that financial year or part thereof; and\\n(ii) the said sum,\\n(b) or where the Minister otherwise allows such services to be\\nconsidered “ship broking”.\\n[2/2016; 41/2020]\\n(10) For the purposes of the definition of “related company” in\\nsubsection (8), a company (called in this subsection the first\\ncompany) is deemed to be a related company of another company\\nif —\\n(a) at least 25% of the total number of its issued shares are\\nbeneficially owned, directly or indirectly, by the other\\ncompany;\\n(b) at least 25% of the total number of the issued shares of the\\nother\\ncompany\\nare\\nbeneficially\\nowned,\\ndirectly\\nor\\nindirectly, by the first company; or\\n(c) at least 25% of the total number of issued shares in each of\\nthe 2 companies are beneficially owned, directly or\\nindirectly, by a third company.\\n[43ZF\\nConcessionary rate of tax for income derived from managing\\napproved venture company\\n43V.—(1) Despite section 43, tax at the rate of 5% is to be levied\\nand paid for each year of assessment upon the management fees and\\nperformance bonus derived by an approved fund management\\nIncome Tax Act 1947\\n2020 Ed.\\n934\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\ncompany on or after 1 April 2015 from managing authorised\\ninvestments of an approved venture company under section 13G.\\n[2/2016; 41/2020]\\n(2) The Minister or an authorised body may approve a fund\\nmanagement company for the purposes of subsection (1) at any time\\nbetween 1 April 2015 and 31 December 2025 (both dates inclusive).\\n[2/2016; 41/2020]\\n[Act 41 of 2020 wef 12/04/2024]\\n(3) The Minister or authorised body may, when granting the\\napproval, impose such conditions on the fund management company\\nas the Minister or authorised body considers appropriate.\\n[2/2016]\\n[Act 41 of 2020 wef 12/04/2024]\\n(4) The approval under subsection (2) is for a period specified by\\nthe Minister or authorised body which must not exceed 10 years,\\nexcept that the Minister or authorised body may extend the period for\\nfurther periods not exceeding 5 years at any one time.\\n[2/2016]\\n[Act 41 of 2020 wef 12/04/2024]\\n(5) Despite\\nsubsection\\n(4),\\nan\\napproval\\ngranted\\nunder\\nsubsection (2) on or after 1 April 2020, and any extension of such\\napproval, must each be for a period that does not exceed 5 years.\\n[41/2020]\\n(6) In\\ndetermining\\nthe\\namount\\nof\\nincome\\nsubject\\nto\\nthe\\nconcessionary rate of tax under subsection (1) —\\n(a) the allowances under section 19, 19A, 20, 21, 22 or 23\\nmust be taken into account even if no claim for such\\nallowances has been made; and\\n(b) the Comptroller must determine the manner and extent to\\nwhich —\\n(i) allowances under section 19, 19A, 20, 21, 22 or 23\\nand any expenses and donations allowable under this\\nAct are to be deducted; and\\n(ii) any loss may be deducted under section 37.\\n[2/2016]\\nIncome Tax Act 1947\\n935\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(7) In this section —\\n“authorised\\ninvestments”\\nhas\\nthe\\nmeaning\\ngiven\\nby\\nsection 13G(18);\\n“fund management company” means a company incorporated in\\nSingapore that is a fund manager.\\n[43ZG\\n[2/2016; 34/2016; 41/2020]\\nConcessionary rate of tax for international growth company\\n43W.—(1) Despite section 43, the Minister may by regulations\\nprovide that tax at the rate of 10% is to be levied and paid upon the\\nincome derived by an approved international growth company from\\ncarrying on all of its qualifying activities within a basis period, or a\\npart of a basis period, that falls within its approval period, which in\\ntotal exceeds the base amount mentioned in subsection (6).\\n[2/2016]\\n(2) Subsection (1) does not apply to income from any of the\\nactivities mentioned in that subsection that is carried on a date that\\nfalls outside of that activity’s concessionary period.\\n[2/2016]\\n(3) The Minister or such person as the Minister may appoint may, at\\nany time between 1 April 2015 and 31 August 2017 (both dates\\ninclusive), approve a company as an international growth company\\nfor a period not exceeding 5 years; and the approval may be given\\nsubject to such conditions as the Minister or appointed person may\\nimpose.\\n[2/2016; 39/2017]\\n(4) When granting the approval, the Minister or appointed person\\nmust specify for the international growth company —\\n(a) the date of its approval and its approval period;\\n(b) one or more qualifying activities; and\\n(c) a concessionary period for each of those activities.\\n[2/2016]\\nIncome Tax Act 1947\\n2020 Ed.\\n936\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(5) The Minister or appointed person may at any time during the\\nperiod the international growth company remains approved specify\\nfor it —\\n(a) one or more additional qualifying activities; and\\n(b) a concessionary period for each of those activities.\\n[2/2016]\\n(6) The base amount mentioned in subsection (1) is ascertained in\\naccordance with the following provisions:\\n(a) where the approved international growth company had, at\\nany time during the period of 3 years immediately before\\nthe date of its approval, carried on one or more of the\\nqualifying activities specified for it under subsection (4),\\nthe base amount is ascertained by the formula\\nA\\nB \\u0003 12;\\nwhere A is the total net profit before tax as shown in its audited\\naccounts (or such other accounts as the Minister or\\nappointed person may approve for the company) that is\\nderived from carrying on the qualifying activity or\\nactivities during that period; and\\nB is the actual number of months (a period of less than a\\nmonth being reckoned as one month) during that period\\nin which the qualifying activity or activities was or were\\ncarried out;\\n(b) where the approved international growth company had not\\ncarried on any of those qualifying activities during the\\nperiod of 3 years immediately before the date of its\\napproval, the base amount is zero;\\n(c) the Minister or appointed person may specify an amount in\\nsubstitution for the amount mentioned in paragraph (a)\\nor (b).\\n[2/2016]\\nIncome Tax Act 1947\\n937\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(7) The base amount determined in accordance with subsection (6)\\napplies for the entire duration of the company’s approval period,\\nunless the Minister or appointed person decides otherwise.\\n[2/2016]\\n(8) In determining the income of an approved international growth\\ncompany from carrying on its qualifying activities —\\n(a) the allowances under section 16, 17, 18, 18B, 18C, 19,\\n19A, 20, 21, 22 or 23 must be taken into account even if no\\nclaim for such allowances has been made; and\\n(b) the Comptroller must determine the manner and extent to\\nwhich —\\n(i) allowances under section 16, 17, 18, 18B, 18C, 19,\\n19A, 20, 21, 22 or 23 and any expenses and\\ndonations allowable under this Act are to be\\ndeducted; and\\n(ii) any loss may be deducted under section 37.\\n[2/2016]\\n(9) In this section —\\n“approval period”, in relation to an approved international\\ngrowth company, means the period of its approval as such a\\ncompany under subsection (3);\\n“concessionary period”, in relation to a qualifying activity of an\\napproved\\ninternational\\ngrowth\\ncompany,\\nmeans\\nthe\\nconcessionary period specified for that activity under\\nsubsection (4) or (5);\\n“international growth company” means a company incorporated\\nand resident in Singapore which carries on, or which intends\\nto carry on, a trade or business which involves —\\n(a) the export of goods to a country outside Singapore;\\n(b) the performance of services in a country outside\\nSingapore; or\\n(c) the\\nperformance\\nof\\nservices\\nfor\\na\\nperson\\nor\\npermanent establishment outside Singapore,\\nIncome Tax Act 1947\\n2020 Ed.\\n938\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nwhether or not it also carries on or intends to carry on any\\nother trade or business;\\n“qualifying activity”, in relation to an approved international\\ngrowth company, means an activity specified for the\\ncompany under subsection (4) or (5), being one of the\\nactivities prescribed for the purposes of this section in\\nregulations made under this section.\\n[43ZH\\n[2/2016]\\nConcessionary rate of tax for intellectual property income\\n43X.—(1) Despite section 43 and subject to this section, the\\nconcessionary rate of tax under subsection (5) applies for each year of\\nassessment upon a percentage determined in accordance with\\nregulations of qualifying intellectual property income of an\\napproved company, that is derived —\\n(a) from a qualifying IPR elected by the approved company\\nfor that year of assessment under subsections (7) and (8);\\nand\\n(b) in so much of the basis period for that year of assessment as\\nfalls within the tax relief period applicable to the approved\\ncompany.\\n[45/2018]\\n(2) The Minister or an authorised body may approve a company as\\nan approved company (subject to such terms and conditions as the\\nMinister or authorised body may specify), but not after 31 December\\n2028.\\n[45/2018]\\n[Act 30 of 2023 wef 30/10/2023]\\n[Act 41 of 2020 wef 12/04/2024]\\n(3) The Minister or authorised body may —\\n(a) specify an initial tax relief period for an approved company\\nthat does not exceed 10 years;\\n(b) specify a commencement date for the initial tax relief\\nperiod that is not earlier than 1 July 2018; and\\nIncome Tax Act 1947\\n939\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) extend the tax relief period for a further period or periods,\\nnot exceeding 10 years for each period, as the Minister or\\nauthorised body may determine.\\n[45/2018]\\n[Act 41 of 2020 wef 12/04/2024]\\n(4) Where the commencement date for the initial tax relief period is\\na date before the company becomes an approved company, then for\\nthe purposes of subsection (1), the company is treated as an approved\\ncompany beginning on the commencement date.\\n[45/2018]\\n(5) For the purpose of subsection (1), the concessionary rate of tax\\nfor an approved company is a rate determined in accordance with the\\nformula A + B, where —\\n(a) A is a base rate of 5% or 10% as the Minister or authorised\\nbody may determine; and\\n[Act 41 of 2020 wef 12/04/2024]\\n(b) B is the sum of every rate increase specified by the\\nMinister or authorised body to the approved company in\\naccordance with subsection (6).\\n[45/2018; 41/2020]\\n[Act 41 of 2020 wef 12/04/2024]\\n(6) For the purposes of subsection (5)(b), the Minister or authorised\\nbody must specify to an approved company, for the 3rd, 4th, 5th and\\n7th 5-year period of its tax relief period, a rate increase of at least\\n0.5% that applies to the years of assessment of all the basis periods\\nwithin each of those 5-year periods.\\n[Act 30 of 2023 wef 30/10/2023]\\n[Act 41 of 2020 wef 12/04/2024]\\n(7) Subject to subsection (8), an approved company must elect a\\nqualifying IPR to which subsection (1) is to apply for any year of\\nassessment —\\n(a) in the form and manner determined by the Comptroller;\\nand\\n(b) at the time the approved company lodges its return of\\nincome for that year of assessment, or by such later time as\\nthe Comptroller may allow in any particular case.\\n[45/2018]\\nIncome Tax Act 1947\\n2020 Ed.\\n940\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(8) An election of any qualifying IPR made under subsection (7) for\\na year of assessment is irrevocable, and the approved company is\\ntreated as making an election for the same qualifying IPR for each\\nsubsequent year of assessment.\\n[45/2018]\\n(9) To avoid doubt, subsections (7) and (8) do not prevent an\\napproved company from electing for any year of assessment, any\\nqualifying IPR not already elected or treated as elected under those\\nsubsections.\\n[45/2018]\\n(10) The approved company must, in such circumstances as the\\nComptroller may determine and in such form and manner as the\\nComptroller may require, provide the Comptroller with such\\ninformation and documents as the Comptroller may require for the\\npurposes of determining the applicability of subsection (1) in a\\nparticular case.\\n[45/2018]\\n(11) The Minister may make regulations to provide for any of the\\nfollowing:\\n(a) the\\ndetermination\\nof\\nthe\\npercentage\\nof\\nqualifying\\nintellectual property income of an approved company for\\nthe purposes of subsection (1);\\n(b) the\\nintellectual\\nproperty\\nincome\\nthat\\nis\\nqualifying\\nintellectual property income for this section;\\n(c) the deduction (otherwise than in accordance with this Act),\\nfrom the qualifying intellectual property income of an\\napproved company, of —\\n(i) allowances attributable to the income; and\\n(ii) expenses, losses and donations allowable under this\\nAct,\\n(c) including deduction of these allowances, expenses, losses\\nand donations in such manner and to such extent as the\\nComptroller may determine;\\n(d) the circumstances under which a prescribed amount of\\nqualifying intellectual property income that has been\\nIncome Tax Act 1947\\n941\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nassessed to tax at the concessionary rate in subsection (1)\\nmay be deemed as income chargeable to tax at the rate of\\ntax in section 43(1)(a) for a specified year of assessment;\\n(da) the circumstances under which a prescribed amount of\\nexpenses,\\nallowances\\nor\\ndonations\\ndeducted\\nfrom\\nqualifying intellectual property income of an approved\\ncompany may be deemed as a loss;\\n(db) the treatment of the loss mentioned in paragraph (da),\\nincluding disregarding any part of it, or making available\\nany part of it for —\\n(i) deduction against any income subject to tax at the\\nrate specified in section 43(1)(a) for a specified year\\nof assessment in accordance with this Act;\\n(ii) deduction against any income for any preceding or\\nsubsequent year of assessment in accordance with\\nthis Act; and\\n(iii) transfer under section 37B;\\n(dc) the application of the provisions of this Act for the purpose\\nof the deductions and transfer in paragraph (db) with such\\nmodifications as may be prescribed;\\n(e) the records to be kept by an approved company;\\n(f) generally to give effect to or carry out the purposes of this\\nsection.\\n[45/2018; 27/2021]\\n(12) To avoid doubt, any regulations made under subsection (11)(e)\\ndo not affect the generality of section 67.\\n[45/2018]\\n(13) In this section —\\n“qualifying intellectual property income” means any intellectual\\nproperty income prescribed by the Minister in regulations\\nmade under this section;\\nIncome Tax Act 1947\\n2020 Ed.\\n942\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“qualifying intellectual property right” or “qualifying IPR”\\nmeans any intellectual property right prescribed by the\\nMinister in regulations made under this section.\\n[43ZI\\n[45/2018]\\nPART 12\\nDEDUCTION OF TAX AT SOURCE\\n44. [Repealed by Act 19 of 2013]\\n44A. [Repealed by Act 19 of 2013]\\nWithholding of tax in respect of interest paid to non‑resident\\npersons\\n45.—(1) Where a person is liable to pay to another person not\\nknown to the firstmentioned person to be resident in Singapore any\\ninterest which is chargeable to tax under this Act, the firstmentioned\\nperson must —\\n(a) deduct therefrom tax —\\n(i) where the person to be paid is an individual or a\\nHindu joint family, at the rate of 24%;\\n[Act 33 of 2022 wef 01/01/2023]\\n(ii) where the person to be paid is any other person, at the\\nrate of 17%; or\\n(iii) where section 43(3) or (3A) is applicable to the\\nperson to be paid, at the rate specified in that\\nprovision,\\n(a) on every dollar of the interest; and\\n(b) immediately give notice of the deduction of tax and pay to\\nthe Comptroller the amount so deducted,\\nand every such amount deducted is a debt due from the firstmentioned\\nperson to the Government and is recoverable in the manner provided\\nby section 89.\\n[2/2016]\\nIncome Tax Act 1947\\n943\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(1A) Despite subsection (1), tax must be deducted at the rate of\\n18% on every payment (other than payment subject to tax at the rate\\nspecified in section 43(3) or (3A)) made on or after 1 January 2009\\nwhich would be assessable on the person receiving the payment for\\nthe year of assessment 2009.\\n(1B) The notice under subsection (1)(b) must be given using the\\nelectronic service, except that the Comptroller may in any particular\\ncase or class of cases permit the notice to be given in any other\\nmanner.\\n[2/2016]\\n(1C) The Minister may, by rules made under section 7, substitute\\nthe rate in subsection (1)(a)(i), (ii) or (iii) with a higher or lower rate\\n(including 0%) for any person or class of persons that is or are subject\\nto that subsection, and subsection (1) applies to that person or class of\\npersons accordingly.\\n[34/2016]\\n(1D) The rules mentioned in subsection (1C) may —\\n(a) provide that the substitute rate applies only if such\\nconditions as may be specified in the rules are satisfied;\\nand\\n(b) prescribe different substitute rates for different persons or\\nclasses of persons.\\n[34/2016]\\n(2) The Comptroller may —\\n(a) if he or she thinks fit, allow any person or class of persons\\nto give notice of the deduction of tax and make payment of\\nthe amount so deducted within such other period and\\nsubject to such conditions as the Comptroller may\\ndetermine; and\\n(b) by written notice require any person who pays such interest\\nto deduct and account for tax at a higher or lower rate than\\nthe rate in subsection (1)(a)(i), (ii) or (iii), or the rate\\nprescribed by rules mentioned in subsection (1C) in\\nsubstitution for that rate (as the case may be) on every\\nIncome Tax Act 1947\\n2020 Ed.\\n944\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\ndollar of such interest or permit such interest to be paid\\nwithout deduction of tax.\\n[2/2016; 34/2016]\\n(3) Where a person fails to make a deduction of tax which the\\nperson is required to make under subsection (1), any amount which\\nthe person fails to deduct is a debt due from the person to the\\nGovernment and is recoverable as such.\\n(4) If the amount of tax which is required to be deducted under\\nsubsection (1) is not paid to the Comptroller —\\n(a) by the 15th day of the second month following the month\\nin which the interest from which the tax is to be deducted is\\npaid, or such other date as may be allowed under\\nsubsection (2)(a), a sum equal to 5% of such amount of\\ntax is payable; and\\n(b) within 30 days after the time specified in paragraph (a), an\\nadditional penalty of 1% of such amount of tax is payable\\nfor each completed month that the tax remains unpaid, but\\nthe total additional penalty under this paragraph must not\\nexceed 15% of the amount of tax outstanding.\\n[34/2016]\\n(5) Without affecting any other provision of this Act, if any person\\nafter deducting any tax under subsection (1) fails to give notice of\\nsuch deduction to the Comptroller in the manner referred to in\\nsubsection (1B) and by the time specified in subsection (4)(a), the\\nperson shall be guilty of an offence and shall on conviction pay a\\npenalty equal to 3 times the amount of tax so deducted and shall also\\nbe liable to a fine not exceeding $10,000 or to imprisonment for a\\nterm not exceeding 3 years or to both.\\n[2/2016; 39/2017]\\n(6) Where an individual has been convicted for 3 or more offences\\nunder this section, the imprisonment the individual shall be liable to\\nshall be not less than 6 months.\\n(7) The Comptroller may —\\n(a) compound an offence under subsection (5) and may before\\njudgment stay or compound any proceedings thereunder;\\nand\\nIncome Tax Act 1947\\n945\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) for any good cause remit the whole or any part of the\\npenalty payable under subsection (4).\\n(8) For the purposes of this section —\\n(a) the manager or principal officer of a company is\\nanswerable for doing all such acts, matters and things as\\nare required to be done by the company under this section;\\nand\\n(b) interest is deemed to have been paid by a person to another\\nperson although it is not actually paid over to the other\\nperson but is reinvested, accumulated, capitalised, carried\\nto any reserve or credited to any account however\\ndesignated, or otherwise dealt with on behalf of the other\\nperson.\\n(9) This section does not apply to —\\n(a) any interest derived from any qualifying debt securities\\nissued during the period from 27 February 1999 to\\n31 December 2028 (both dates inclusive), subject to such\\nconditions as the Minister may impose;\\n[Act 30 of 2023 wef 30/10/2023]\\n(b) any interest derived from any qualifying project debt\\nsecurities issued during the period from 1 November 2006\\nto 31 December 2025 (both dates inclusive), subject to\\nsuch conditions as the Minister may impose;\\n[Act 33 of 2022 wef 04/11/2022]\\n(c) any interest liable to be paid on or after 21 February 2014\\nby a person to a branch in Singapore of a company\\nincorporated outside Singapore and not known to the\\nperson to be resident in Singapore.\\n[37/2014; 45/2018]\\n(10) In this section, “qualifying debt securities” and “qualifying\\nproject debt securities” have the meanings given by section 13(16).\\n(11) To avoid doubt, in this section, “interest” includes the part of\\nany payment liable to be made by a lessee to a lessor under a finance\\nlease of any machinery or plant treated as sold by the lessor to the\\nIncome Tax Act 1947\\n2020 Ed.\\n946\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nlessee pursuant to regulations made under section 10C(1), that is\\nincome of the lessor under section 10C(2A).\\n[45/2018]\\nApplication of section 45 to royalties, management fees, etc.\\n45A.—(1) Section 45(1) to (8) applies in relation to the payment of\\nany income referred to in section 12(6) or (7) by any person to another\\nperson not known to the firstmentioned person to be resident in\\nSingapore as those provisions apply to any interest paid by a person\\n(X) to another person (Y) not known to X to be resident in Singapore\\nand, for the purpose of such application, any reference in those\\nprovisions to interest is a reference to the income referred to in\\nsection 12(6) or (7).\\n(2) Subject to such conditions as the Minister may impose,\\nsubsection (1) does not apply to any discount from any qualifying\\ndebt securities issued during the period from 17 February 2006 to\\n31 December 2028 (both dates inclusive).\\n[37/2014; 45/2018; 41/2020]\\n[Act 30 of 2023 wef 30/10/2023]\\n(2A) Subsection (1) does not apply to any amount payable from any\\nIslamic debt securities which are qualifying debt securities, and\\nissued during the period from 1 January 2005 to 31 December 2028\\n(both dates inclusive), subject to such conditions as the Minister may\\nimpose.\\n[37/2014; 45/2018]\\n[Act 30 of 2023 wef 30/10/2023]\\n(2B) Subject to such conditions as the Minister may impose,\\nsubsection (1) does not apply to —\\n(a) any early redemption fee or redemption premium from any\\nqualifying debt securities issued during the period from\\n15 February 2007 to 31 December 2028 (both dates\\ninclusive); or\\n[Act 30 of 2023 wef 15/02/2023]\\n[Act 30 of 2023 wef 30/10/2023]\\n(b) any discount, early redemption fee or redemption premium\\nfrom any qualifying project debt securities issued during\\nIncome Tax Act 1947\\n947\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthe period from 15 February 2007 to 31 December 2025\\n(both dates inclusive).\\n[37/2014; 45/2018]\\n[Act 33 of 2022 wef 04/11/2022]\\n[Act 30 of 2023 wef 15/02/2023]\\n(2C) Subject to such conditions as the Minister may impose,\\nsubsection (1) does not apply to —\\n(a) such other income directly attributable to any qualifying\\ndebt securities issued on or after a prescribed date, as may\\nbe prescribed by regulations; or\\n(b) such other income directly attributable to any qualifying\\nproject debt securities issued on or after a prescribed date,\\nas may be prescribed by regulations.\\n(2D) Subsection (1) does not apply to any payment liable to be\\nmade on or after 17 February 2012 under any agreement or\\narrangement for the charter of any ship.\\n(2DA) To avoid doubt, the reference to a charter of a ship in\\nsubsection (2D) excludes a finance lease of the ship.\\n[41/2020]\\n(2E) Subsection (1) does not apply to any payment liable to be\\nmade on or after 21 February 2014 by a person to a branch in\\nSingapore of a company incorporated outside Singapore and not\\nknown to the person to be resident in Singapore.\\n[37/2014]\\n(3) In this section —\\n[Deleted by Act 30 of 2023 wef 15/02/2023]\\n“early redemption fee”, “qualifying debt securities”, “qualifying\\nproject debt securities” and “redemption premium” have the\\nmeanings given by section 13(16);\\n[Act 30 of 2023 wef 15/02/2023]\\n“finance lease”, in relation to a ship, means a lease of the ship\\n(including any arrangement or agreement made in connection\\nwith the lease) that has the effect of transferring substantially\\nthe obsolescence, risks or rewards incidental to ownership of\\nthe ship to the lessee;\\nIncome Tax Act 1947\\n2020 Ed.\\n948\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“Islamic\\ndebt\\nsecurities”\\nhas\\nthe\\nmeaning\\ngiven\\nby\\nsection 43H(4);\\n“ship” has the meaning given by section 2(1) of the Merchant\\nShipping Act 1995.\\n[2/2016; 41/2020]\\nTax deemed withheld and recoverable from person in breach of\\ncondition imposed under section 13(4)\\n45AA.—(1) Subsection (1A) applies where a notification has been\\nmade under section 13(4) to exempt from tax (wholly or in part)\\npayments made by a person to a non‑resident person under section 45\\nor 45A, and —\\n(a) the exemption is on the basis that the firstmentioned person\\nor a particular matter is approved by the Minister, an\\nauthorised body or a person appointed by the Minister\\nunder a section specified in the Fourth Schedule, and the\\napproval is revoked under section 105R after any such\\npayment has been made; or\\n[Act 41 of 2020 wef 06/12/2022]\\n(b) the firstmentioned person contravenes any condition\\nimposed by the Minister under the notification (whether\\na condition precedent or a condition subsequent) after any\\nsuch payment has been made.\\n[32/2019]\\n(1A) The amount of tax which, but for —\\n(a) in the case of subsection (1)(a) — the approval of the\\nfirstmentioned person or the matter; or\\n(b) in the case of subsection (1)(b) — the notification,\\nwould have been deductible by the firstmentioned person from that\\npayment —\\n(c) is deemed to have been deducted from that payment;\\n(d) is a debt due from the firstmentioned person to the\\nGovernment; and\\n(e) is recoverable in the manner provided in section 89.\\n[32/2019]\\nIncome Tax Act 1947\\n949\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(2) The amount recoverable under subsection (1A) is payable at the\\nplace stated in a notice served by the Comptroller on the person\\nwithin one month after the service of the notice.\\n[32/2019]\\n(3) The Comptroller may, in his or her discretion and subject to\\nsuch conditions (including the imposition of interest) as the\\nComptroller may impose, extend the time limit within which\\npayment under subsection (2) is to be made.\\n(4) If the amount recoverable under subsection (1A) is not paid to\\nthe Comptroller —\\n(a) within the period referred to in subsection (2) or such\\nfurther period as may be allowed under subsection (3), a\\nsum equal to 5% of such amount is payable; and\\n(b) within 30 days after the time specified in paragraph (a), an\\nadditional penalty of 1% of such amount is payable for\\neach completed month that such amount remains unpaid,\\nbut the total additional penalty under this paragraph must\\nnot exceed 15% of such amount.\\n[32/2019]\\n(5) The penalty is recoverable in the manner provided in section 89.\\n(6) The Comptroller may for any good cause remit the whole or any\\npart of the penalty payable under subsection (4).\\n(7) The Minister may, subject to such conditions as the Minister\\nmay determine, remit the whole or any part of the amount recoverable\\nunder subsection (1A).\\n[32/2019]\\n(8) If any condition mentioned in subsection (7) is breached, then\\nthe amount remitted is a debt due from the person granted the\\nremission to the Government and is recoverable in the manner\\nprovided by section 89; and subsections (2) to (6) apply accordingly.\\nApplication of section 45 to non‑resident director’s\\nremuneration\\n45B.—(1) Section 45 applies in relation to the payment of any\\nremuneration by a company to any director of the company who is not\\nresident in Singapore as that section applies to any interest paid by a\\nIncome Tax Act 1947\\n2020 Ed.\\n950\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nperson (X) to another person (Y) not known to X to be resident in\\nSingapore and, for the purpose of such application, any reference in\\nthat section to interest is a reference to such remuneration.\\n(2) For the purposes of this section, the references to interest therein\\nare references to interest which is subject to deduction of tax at the\\nrate of 24% on every dollar of the interest.\\n[2/2016]\\n[Act 33 of 2022 wef 01/01/2023]\\nApplication of section 45 to distribution by unit trust\\n45C.—(1) Section 45 applies in relation to any distribution made\\nby a unit trust which is deemed to be income under section 10(19),\\n(20) and (21) as that section applies to any interest paid by a\\nperson (X) to another person (Y) not known to X to be resident in\\nSingapore and, for the purpose of such application, any reference in\\nthat section to interest is a reference to such distribution.\\n(2) Subsection (1) does not apply to any distribution which is made\\non or after 28 February 1998 by a designated unit trust referred to in\\nsection 35(12).\\n[37/2014]\\n(3) Subsection (1) does not apply to any distribution made on or\\nafter 1 January 2015 by a unit trust to a branch in Singapore of a\\ncompany incorporated outside Singapore and not known to the\\ntrustee of the unit trust to be resident in Singapore.\\n[37/2014]\\nApplication of section 45 to gains from real property\\ntransaction\\n45D.—(1) Where any person whose income arising from the\\ndisposal\\nof\\nany\\nreal\\nproperty\\nis\\nchargeable\\nto\\ntax\\nunder\\nsection 10(1)(a) is a non‑resident person, any designated person\\nmust, before paying to the non‑resident person any money which is\\nthe whole or part of the consideration for the disposal of the real\\nproperty, despite any other written law, immediately deduct\\ntherefrom tax at the rate of 15% on every dollar of such payment.\\n(2) Any designated person who has deducted any money under\\nsubsection (1) must immediately give notice of the deduction of tax to\\nIncome Tax Act 1947\\n951\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthe Comptroller and must, despite any other written law, pay the\\namount so deducted to the Comptroller by the 15th day of the second\\nmonth following the month in which the deduction was made and\\nevery such amount is a debt due from the designated person to the\\nGovernment and is recoverable in the manner provided by section 89.\\n[2/2016]\\n(2A) The notice under subsection (2) must be given using the\\nelectronic service, except that the Comptroller may in any particular\\ncase or class of cases permit the notice to be given in any other\\nmanner.\\n[2/2016]\\n(3) Section 45(2) to (8) applies, with the necessary modifications,\\nto any designated person as those provisions apply to any person\\nreferred to therein.\\n(4) For the purpose of payment of any tax due from any income\\nwhich is chargeable to tax under section 10(1)(a) in respect of any\\ndisposal of any real property which is owned by 2 or more persons as\\njoint owners, the designated person deducting the tax must retain\\nsuch amount as is presumed under subsection (5) to be owned by any\\nnon‑resident person and pay over the tax due from such amount to the\\nComptroller.\\n(5) It is presumed, until the contrary is proved, that the persons who\\nown any real property as joint owners share the proceeds of disposal\\nof the real property in equal shares.\\n(5A) This section does not apply to any payment made on or after\\n1 January 2015 by a designated person to a branch in Singapore of a\\ncompany incorporated outside Singapore and is a non‑resident\\nperson.\\n[37/2014]\\n(6) In this section —\\n“designated person”, in relation to any disposal of any real\\nproperty —\\n(a) in the case where an advocate and solicitor acts for\\nthe buyer of the real property in such disposal, means\\nthat advocate and solicitor; and\\nIncome Tax Act 1947\\n2020 Ed.\\n952\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) in any other case, means the buyer of the real\\nproperty;\\n“land” includes land of any tenure wherever situated in\\nSingapore, whether or not held apart from the surface, and\\nbuildings or parts thereof (whether completed or otherwise\\nand whether divided horizontally, vertically or in any other\\nmanner) and tenements and hereditaments, corporeal and\\nincorporeal, and any estate or interest therein;\\n“non‑resident person” means a person who is not known to be\\nresident in Singapore to the designated person;\\n“real property”, in relation to a disposal of which the income is\\nchargeable to tax under section 10(1)(a), means any land and\\nany interest, option or other right in or over any land.\\nApplication of section 45 to withdrawals by non‑citizen SRS\\nmembers, etc.\\n45E.—(1) Subject to subsections (2) and (2A), section 45 applies in\\nrelation to —\\n(a) any withdrawal made —\\n(i) under section 10G or after the balance (excluding\\nany life annuity) remaining in the SRS account is\\ndeemed withdrawn under section 10G(6) or (7) by an\\nSRS member who is not a citizen of Singapore from\\nhis or her SRS account; or\\n(ii) after the sum standing in the SRS account is deemed\\nwithdrawn under section 10G(9) by the legal\\npersonal representative of a deceased SRS member\\nwho is not a citizen of Singapore from the SRS\\naccount,\\n(a) as that section applies to any interest paid by a person (X)\\nto another person (Y) not known to X to be resident in\\nSingapore and, for the purpose of such application, any\\nreference in that section to interest is a reference to such\\nwithdrawal from the SRS account; and\\nIncome Tax Act 1947\\n953\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) any payment of any penalty under section 10G(2) which is\\nimposed on any SRS member and paid by an SRS operator\\nto the Comptroller as that section applies to any interest\\npaid by a person (X) to another person (Y) not known to X\\nto be resident in Singapore and, for the purposes of such\\napplication, any reference in that section to interest payable\\nis a reference to the penalty so payable by the SRS operator\\nto the Comptroller.\\n[2/2016]\\n(2) For the purpose of subsection (1)(a), where a withdrawal is\\nmade —\\n(a) under section 10G(3) or (8) or after the balance (excluding\\nany life annuity) remaining in the SRS account is deemed\\nwithdrawn under section 10G(6) or (7) by an SRS member;\\nor\\n(b) after the sum standing in the SRS account is deemed\\nwithdrawn under section 10G(9),\\nsection 45 applies only in relation to 50% of the amount withdrawn\\nfrom the SRS account.\\n(2A) For the purposes of subsection (1)(a), where a withdrawal of\\nall the funds standing in the SRS account of an SRS member is made\\non the ground in section 10G(3G), section 45 applies only in relation\\nto an amount determined in the following manner:\\nA\\nA þ B \\u0003 C;\\nwhere A is the amount of funds withdrawn from the SRS account\\non that ground;\\nB is the total value of the investment that is deducted from\\nthe balance in the SRS account (if any) on that ground;\\nand\\nC is the amount of the SRS member’s income chargeable to\\nIncome Tax Act 1947\\n2020 Ed.\\n954\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\ntax\\nunder\\nsection\\n10(1)(g)\\nas\\ndetermined\\nunder\\nsection 10G(3G).\\n[2/2016]\\n(2B) In subsection (2A) —\\n(a) the reference to a deduction of an investment from the\\nbalance in an SRS account is to be construed in accordance\\nwith section 10G(3F); and\\n(b) the value of such investment is determined in accordance\\nwith the regulations made under section 10G(11).\\n[2/2016]\\n(3) For the purposes of this section, the amount to be deducted\\nunder section 45 in respect of withdrawals from the SRS account of\\nan SRS member —\\n(a) under subsection (1)(a), is the amount computed based on\\nthe rate of 24%; and\\n[Act 33 of 2022 wef 01/01/2023]\\n(b) under subsection (1)(b), is the total penalty deducted by the\\nSRS operator from the amount so withdrawn from the SRS\\naccount.\\n[2/2016]\\n(4) Subject to subsection (5), this section does not apply to any\\nwithdrawal by an SRS member who is not a citizen of Singapore if the\\namount of withdrawal from the member’s SRS account in any year\\ndoes not exceed the amount of contribution to the member’s SRS\\naccount in that year.\\n(5) Where a deduction for SRS contributions has been allowed in\\nany year to an SRS member who is not a citizen of Singapore under\\nan assessment made under section 73(1)(b) and within that year the\\nSRS member applies to withdraw an amount up to the amount the\\nSRS member has contributed in that year, the SRS operator must\\nrelease the amount applied to the SRS member after deducting tax at\\nthe rate of 24% on every dollar withdrawn.\\n[2/2016]\\n[Act 33 of 2022 wef 01/01/2023]\\nIncome Tax Act 1947\\n955\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(6) To avoid doubt, a reference to a withdrawal from an SRS\\naccount in this section is a reference to an actual withdrawal of funds,\\nand excludes a deemed withdrawal of funds under section 10G(3E).\\n[2/2016]\\nApproval of deduction of investment from SRS account of\\nnon‑citizen\\n45EA.—(1) This section applies to an investment made using funds\\nfrom an SRS account of an SRS member who is not a citizen of\\nSingapore.\\n[37/2014]\\n(2) Before approving the deduction of the investment from the\\nbalance in the SRS account, an SRS operator must comply with\\nsubsection (3), unless the Comptroller has waived such compliance\\nby written notice to the SRS operator.\\n[37/2014]\\n(3) Subject to subsection (3A), the SRS operator must collect from\\nthe SRS member or (if the SRS member is deceased) the SRS\\nmember’s legal personal representative tax at the rate of 24% on an\\namount that is equal to 50% of the total value of the investment to be\\ndeducted from the balance in the SRS account.\\n[37/2014; 2/2016]\\n[Act 33 of 2022 wef 01/01/2023]\\n(3A) If the deduction of the investment from the balance in the SRS\\naccount is to be made on the ground in section 10G(3G), the amount\\non which tax is to be collected under subsection (3) is determined in\\nthe following manner:\\nB\\nA þ B \\u0003 C;\\nwhere A is the amount of funds to be actually withdrawn from the\\nSRS account on that ground, if any;\\nB is the total value of the investment that is to be deducted\\nfrom the balance in the SRS account; and\\nC is the amount of the SRS member’s income chargeable to\\nIncome Tax Act 1947\\n2020 Ed.\\n956\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\ntax\\nunder\\nsection\\n10(1)(g)\\nas\\ndetermined\\nunder\\nsection 10G(3G).\\n[2/2016]\\n(3B) The Minister may, by rules made under section 7, substitute\\nthe rate in subsection (3) with a higher or lower rate (including 0%)\\nfor any SRS member or class of SRS members that is or are subject to\\nthat subsection, and subsection (3) applies to that SRS member or\\nclass of SRS members accordingly.\\n[34/2016]\\n(3C) The rules mentioned in subsection (3B) may —\\n(a) provide that the substitute rate applies only if such\\nconditions as may be specified in the rules are satisfied;\\nand\\n(b) prescribe different substitute rates for different SRS\\nmembers or classes of SRS members.\\n[34/2016]\\n(4) In subsections (3) and (3A), the value of an investment is\\nreckoned\\nin\\naccordance\\nwith\\nthe\\nregulations\\nmade\\nunder\\nsection 10G(11).\\n[37/2014; 2/2016]\\n(5) If the Comptroller has given a written notice to the SRS operator\\nrequiring the SRS operator to collect tax at a higher or lower rate than\\n24% or the rate prescribed by the rules mentioned in subsection (3B)\\nin substitution for it, then the reference to the rate of 24% or the\\nsubstitute rate is a reference to the higher or lower rate.\\n[2/2016; 34/2016]\\n[Act 33 of 2022 wef 01/01/2023]\\n(6) The amount of tax collected under subsection (3) is a debt due\\nfrom the SRS operator to the Government and is recoverable in the\\nmanner provided in section 89.\\n[37/2014]\\n(7) Where an SRS operator fails to collect the tax under\\nsubsection (3), the amount not collected is a debt due from the\\nSRS operator to the Government and is recoverable in the manner\\nprovided in section 89.\\n[37/2014]\\nIncome Tax Act 1947\\n957\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(8) If the amount of tax which is required to be collected under\\nsubsection (3) is not paid to the Comptroller —\\n(a) by the 15th day of the second month following the month\\nin which the date the SRS operator approves the deduction\\nfalls or by such later date as the Comptroller may allow, a\\nsum equal to 5% of such amount of tax is payable; and\\n(b) within 30 days after the time specified in paragraph (a), an\\nadditional penalty of 1% of such amount of tax is payable\\nfor each completed month that the tax remains unpaid, but\\nthe total additional penalty under this paragraph must not\\nexceed 15% of the amount of tax outstanding.\\n[37/2014]\\n(9) An SRS operator must, after collecting the tax under\\nsubsection (3), give written notice of such collection to the\\nComptroller by the time specified in subsection (8)(a) and in the\\nmanner mentioned in subsection (9A), and if the SRS operator fails to\\ndo so, the SRS operator shall be guilty of an offence and shall on\\nconviction pay a penalty equal to 3 times the amount of tax so\\ncollected and shall also be liable to a fine not exceeding $10,000.\\n[37/2014; 34/2016]\\n(9A) The notice under subsection (9) must be given using the\\nelectronic service, except that the Comptroller may in any particular\\ncase or class of cases permit the notice to be given in any other\\nmanner.\\n[34/2016]\\n(10) The Comptroller may —\\n(a) compound an offence under subsection (9); and\\n(b) for any good cause remit the whole or any part of the\\npenalty payable under subsection (8).\\n[37/2014]\\n(11) In this section —\\n(a) a reference to an SRS operator approving the deduction of\\nan investment from the balance in an SRS account is a\\nreference to the SRS operator approving the deduction of\\nthe sums representing the investment from the balance in\\nIncome Tax Act 1947\\n2020 Ed.\\n958\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthe SRS account in accordance with the regulations made\\nunder section 10G(11); and\\n(b) a reference to the date of approval by an SRS operator of a\\ndeduction of an investment from the balance in an SRS\\naccount is a reference to the date the SRS operator\\napproves a deduction of the sums representing the\\ninvestment from the balance in the SRS account in\\naccordance with those regulations.\\n[37/2014]\\nApplication of section 45 to income from profession or vocation\\ncarried on by non‑resident individual, etc.\\n45F.—(1) Subject to subsections (1A), (2) and (2A), section 45\\napplies in relation to the payment of any income accruing in or\\nderived from Singapore on or after 3 May 2002 from —\\n(a) any profession or vocation (other than that derived by any\\npublic entertainer as defined in section 40A) by any person\\nto any individual referred to in section 43(4)(a) not known\\nto the person to be resident in Singapore; or\\n(b) any profession or vocation by any person to any foreign\\nfirm referred to in section 43(4)(b),\\nas section 45 applies to any interest paid by a person (X) to another\\nperson (Y) not known to X to be resident in Singapore and, for the\\npurpose of such application, any reference in that section to interest is\\na reference to such payment.\\n[Act 33 of 2022 wef 04/11/2022]\\n[Act 30 of 2023 wef 30/10/2023]\\n(1A) Subject to subsections (2) and (2A), section 45 applies in\\nrelation to the payment of any income derived from Singapore during\\nthe period from 1 April 2023 to 31 December 2027 (both dates\\ninclusive) by any person —\\n(a) to an individual not known to the person to be resident in\\nSingapore, for acting as an arbitrator;\\n(b) to a qualifying mediator not known to the person to be\\nresident in Singapore, for providing services of a mediator\\nfor a mediation —\\nIncome Tax Act 1947\\n959\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(i) that takes place in Singapore; or\\n(ii) that would have taken place in Singapore but for the\\nsettlement of the dispute or withdrawal of the claim\\nin question; or\\n(c) to an individual not known to the person to be resident in\\nSingapore, for providing the services of a mediator for a\\nqualifying mediation —\\n(i) that takes place in Singapore; or\\n(ii) that would have taken place in Singapore but for the\\nsettlement of the dispute or withdrawal of the claim\\nin question,\\nas section 45 applies to any interest paid by a person (X) to another\\nperson (Y) not known to X to be resident in Singapore and, for the\\npurpose of such application, any reference in that section to interest is\\na reference to such payment.\\n[Act 33 of 2022 wef 04/11/2022]\\n[Act 30 of 2023 wef 30/10/2023]\\n(2) The deduction of tax under section 45 is at the rate of —\\n(a) 15% for the purpose of subsection (1); and\\n(b) 10% for the purpose of subsection (1A).\\n[Act 33 of 2022 wef 04/11/2022]\\n(2A) Where an individual or a foreign firm to which section 43(4)\\nor (4A) applies makes an irrevocable option under section 43(5) to be\\ntaxed under section 43(1)(b) on any payment of income accruing in or\\nderived from Singapore by the individual or foreign firm, the\\napplication of section 45 by subsections (1), (1A) and (2) is further\\nmodified as follows:\\n(a) the reference to the payment of income to the individual or\\nforeign firm is to such payment after deducting any\\nexpenditure\\nthat\\nthe\\nperson\\nmaking\\nthe\\npayment\\nreasonably believes is wholly and exclusively incurred\\nby the individual or foreign firm in the production of that\\nincome;\\nIncome Tax Act 1947\\n2020 Ed.\\n960\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) the deduction of tax under section 45 for such payment is at\\nthe rate specified in section 43(1)(b).\\n[Act 30 of 2023 wef 30/10/2023]\\n(3) In this section, “arbitrator”, “qualifying mediation” and\\n“qualifying mediator” have the meanings given by section 43(10).\\n[Act 33 of 2022 wef 04/11/2022]\\nApplication of section 45 to distribution from any real estate\\ninvestment trust\\n45G.—(1) Subject to subsections (2) and (3) and such conditions as\\nthe Comptroller may impose, section 45 applies in relation to any\\ndistribution by a trustee of any real estate investment trust or by a\\ntrustee of any approved REIT exchange‑traded fund —\\n(a) to any person (other than an individual) not known to the\\ntrustee to be resident in Singapore to whom section 43(3B),\\n(3C), (3D) or (3E) applies; or\\n(b) to any other person not known to the trustee to be —\\n(i) an individual;\\n(ii) a company incorporated and resident in Singapore;\\n(iii) a branch in Singapore of a company incorporated\\noutside\\nSingapore\\nthat\\nhas\\nobtained\\nthe\\nComptroller’s approval for distributions to be made\\nby the trust to it without deduction of tax; or\\n(iv) a body of persons incorporated or registered in\\nSingapore, including a charity registered under the\\nCharities Act 1994 or established by any written law,\\na town council, a statutory board, a co‑operative\\nsociety registered under the Co‑operative Societies\\nAct 1979 or a trade union registered under the Trade\\nUnions Act 1940,\\nas that section applies to any interest paid by a person (X) to another\\nperson (Y) not known to X to be resident in Singapore and, for the\\npurpose of such application, any reference in that section to interest is\\na reference to such distribution.\\n[45/2018; 32/2019]\\nIncome Tax Act 1947\\n961\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(2) For the purpose of subsection (1)(a), the deduction of tax under\\nsection 45 is at the rate of 10% on —\\n(a) every dollar of a distribution by the trustee of the real estate\\ninvestment trust made during the period from 18 February\\n2005 to 31 December 2025 (both dates inclusive); and\\n(b) every dollar of a distribution made by the trustee of the\\napproved REIT exchange‑traded fund made during the\\nperiod from 1 July 2018 to 31 December 2025 (both dates\\ninclusive).\\n[45/2018; 32/2019]\\n(3) For the purpose of subsection (1)(b), the deduction of tax under\\nsection 45 is at the applicable rate specified under section 43(1) on\\nevery dollar of such distribution.\\n(4) Subsection (1) does not apply to any distribution made by the\\ntrustee of the real estate investment trust or the trustee of the approved\\nREITexchange‑traded fund, where tax has been paid by the trustee on\\nthe income from which the distribution is made.\\n[45/2018]\\n(4A) Subsection (1) does not apply to any distribution made on or\\nafter 1 January 2015 by a trustee of a real estate investment trust or a\\ntrustee of an approved REIT exchange‑traded fund to a branch in\\nSingapore of a company incorporated outside Singapore and not\\nknown to the trustee to be resident in Singapore.\\n[37/2014; 45/2018]\\n(4B) Subsection (1) does not apply to any distribution made to an\\norganisation that is declared by an order under section 2(1) of the\\nInternational Organisations (Immunities and Privileges) Act 1948 as\\nan organisation of which the Government and the government or\\ngovernments of one or more foreign sovereign Powers are members,\\nif that distribution is exempt from tax by reason of that order.\\n[34/2016]\\n(5) Subsection (1) does not apply to any distribution made during\\nthe period from 1 July 2018 to 31 December 2025 (both dates\\ninclusive) by a trustee of a real estate investment trust to a trustee of\\nan approved REIT exchange‑traded fund.\\n[45/2018; 32/2019]\\nIncome Tax Act 1947\\n2020 Ed.\\n962\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(6) In this section, “approved REIT exchange‑traded fund” and\\n“real\\nestate\\ninvestment\\ntrust”\\nhave\\nthe\\nmeanings\\ngiven\\nby\\nsection 43(10).\\n[45/2018]\\nApplication of section 45 to income derived as public\\nentertainer\\n45GA.—(1) Subject to subsections (2), (2A) and (2B), section 45\\napplies in relation to the payment by any person to any public\\nentertainer or the public entertainer’s representative, not known to the\\nperson to be resident in Singapore, of any income derived from\\nSingapore as a public entertainer on or after 1 January 2008 as that\\nsection applies to any interest paid by a person (X) to another person\\n(Y) not known to X to be resident in Singapore and, for the purpose of\\nsuch application, any reference in that section to interest is a reference\\nto such payment.\\n[Act 30 of 2023 wef 30/10/2023]\\n(2) For the purpose of this section and subject to subsection (2A),\\nthe deduction of tax under section 45 is at the rate of 15%.\\n(2A) For the purpose of this section, the deduction of tax under\\nsection 45 is at the rate of 10% of such income derived during the\\nperiod from 22 February 2010 to 31 March 2022 (both dates\\ninclusive).\\n[37/2014; 41/2020]\\n(2B) The reference in subsection (1) to income is to the amount of\\nthe income after deducting any expenditure which the person making\\nthe payment reasonably believes is wholly and exclusively incurred\\nby the public entertainer in the production of that income.\\n[Act 30 of 2023 wef 30/10/2023]\\n(3) In this section, “public entertainer” has the meaning given by\\nsection 40A.\\nApplication of section 45 to commission or other payment of\\nlicensed international market agent\\n45H.—(1) Subject to subsection (2), section 45 applies in relation\\nto the payment of any commission or other payment by any person to\\na licensed international market agent not known to the person to be\\nIncome Tax Act 1947\\n963\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nresident in Singapore for organising or conducting a casino marketing\\narrangement with a casino operator in Singapore as section 45 applies\\nto any interest paid by a person (X) to another person (Y) not known to\\nX to be resident in Singapore and, for the purpose of such application,\\nany reference in that section to interest is a reference to such\\ncommission or payment.\\n(2) For the purpose of this section, the deduction of tax under\\nsection 45 is at the rate of 3%.\\n(2A) Subsection (1) does not apply to any payment liable to be\\nmade on or after 1 January 2015 by any person to a branch in\\nSingapore of a licensed international market agent, being a company\\nincorporated outside Singapore and not known to the person to be\\nresident in Singapore.\\n[37/2014]\\n(3) In this section, “casino marketing arrangement”, “casino\\noperator” and “international market agent” have the meanings\\ngiven by the Casino Control Act 2006.\\nSections 45 and 45A not applicable to certain payments\\n45I.—(1) Sections 45(1) to (8) and 45A(1) do not apply to any\\nincome referred to in section 12(6) which is liable to be paid by a\\nperson mentioned in subsection (2), if the payment is liable to be\\nmade —\\n(a) at any time during the period from 17 February 2012 to\\n31 December 2026 (both dates inclusive) (called in this\\nsection the relevant period) under —\\n(i) a contract which took effect before 17 February\\n2012;\\n(ii) a contract which was extended or renewed, where the\\nextension or renewal took effect before 17 February\\n2012; or\\n(iii) a debt security which was issued before 17 February\\n2012;\\n(b) under a contract which took effect on a date which falls\\nwithin the relevant period;\\nIncome Tax Act 1947\\n2020 Ed.\\n964\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) under a contract which was extended or renewed where —\\n(i) the extension or renewal took effect on a date which\\nfalls within the relevant period; and\\n(ii) the payment is made on or after the date on which\\nsuch extension or renewal took effect;\\n[Act 33 of 2022 wef 04/11/2022]\\n(ca) under a contract which was varied where —\\n(i) the variation takes effect on a date which falls within\\nthe period from the date on which the Income Tax\\n(Amendment) Act 2022 is published in the Gazette,\\nto 31 December 2026 (both dates inclusive); and\\n(ii) the payment is made on or after the date the variation\\ntakes effect; or\\n[Act 33 of 2022 wef 04/11/2022]\\n(d) under a debt security which was issued on a date which\\nfalls within the relevant period.\\n[27/2021]\\n(2) Subsection (1) applies to the following persons:\\n(a) a bank or merchant bank licensed under the Banking\\nAct 1970;\\n(b) a finance company licensed under the Finance Companies\\nAct 1967;\\n(c) a person who —\\n(i) holds a capital markets services licence under the\\nSecurities and Futures Act 2001 for dealing in capital\\nmarkets products and advising on corporate finance;\\n(ii) is involved or will be involved in the underwriting of\\ndebt or equity issuances; and\\n(iii) has been approved before 17 February 2012 for the\\npurposes of the Income Tax (Exemption of Interest\\nand\\nOther\\nPayments\\nfor\\nEconomic\\nand\\nTechnological Development) Notification 2012.\\n[4/2017; 1/2020]\\nIncome Tax Act 1947\\n965\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(3) Sections 45(1) to (8) and 45A(1) do not apply to any income\\nmentioned in section 12(6) which is liable to be paid by a person\\nwho —\\n(a) holds a capital markets services licence under the\\nSecurities and Futures Act 2001 for dealing in capital\\nmarkets products and advising on corporate finance;\\n(b) is involved or will be involved in the underwriting of debt\\nor equity issuances; and\\n(c) is approved for the purposes of this section, where the\\napproval was given on a date (called in this subsection the\\napproval date) within the relevant period by the Minister or\\nan authorised body,\\nif the payment is liable to be made —\\n(d) at any time during the period from the approval date to\\n31 December 2026 (both dates inclusive) under —\\n(i) a contract which took effect before the approval date;\\n(ii) a contract which was extended or renewed, where the\\nextension or renewal took effect before the approval\\ndate; or\\n(iii) a debt security which was issued before the approval\\ndate;\\n(da) at any time during the period from the date on which the\\nIncome Tax (Amendment) Act 2022 is published in the\\nGazette to 31 December 2026 (both dates inclusive) under\\na contract which was varied, where the variation takes\\neffect on or after the date on which the Income Tax\\n(Amendment) Act 2022 is published in the Gazette and\\nbefore the approval date;\\n[Act 33 of 2022 wef 04/11/2022]\\n(e) under a contract which took effect on a date which falls\\nwithin the period from the approval date to 31 December\\n2026 (both dates inclusive);\\nIncome Tax Act 1947\\n2020 Ed.\\n966\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(f) under a contract which was extended or renewed where —\\n(i) the extension or renewal took effect on a date which\\nfalls within the period from the approval date to\\n31 December 2026 (both dates inclusive); and\\n(ii) the payment is made on or after the date on which\\nsuch extension or renewal takes effect;\\n[Act 33 of 2022 wef 04/11/2022]\\n(fa) under a contract which was varied where —\\n(i) the variation takes effect on a date which falls within\\nthe period from the date on which the Income Tax\\n(Amendment) Act 2022 is published in the Gazette\\nor\\nthe\\napproval\\ndate\\n(whichever\\nis\\nlater)\\nto\\n31 December 2026 (both dates inclusive); and\\n(ii) the payment is made on or after the date the variation\\ntakes effect; or\\n[Act 33 of 2022 wef 04/11/2022]\\n(g) under a debt security which is issued on a date which falls\\nwithin the period from the approval date to 31 December\\n2026 (both dates inclusive).\\n[4/2017; 27/2021]\\n[Act 41 of 2020 wef 06/12/2022]\\n(4) The approval by the Minister or authorised body under\\nsubsection (3)(c) is subject to such conditions as the Minister or\\nauthorised body may impose.\\n[Act 41 of 2020 wef 06/12/2022]\\n(5) This section does not apply to any payment of income referred\\nto in section 12(6) which the Comptroller is satisfied is made in\\nconnection with an arrangement the purpose or effect of which is one\\nreferred to in section 33(1).\\nApplication of section 45, etc., to Government\\n45J.—(1) Subject\\nto\\nthe\\nmodifications\\nin\\nsubsection\\n(2),\\nsections 45, 45A, 45F and 45GA apply to the payment of any\\nincome described in those sections that is liable to be made by the\\nGovernment to a person not known to the Government to be resident\\nin Singapore, as they apply to the payment of such income liable to be\\nIncome Tax Act 1947\\n967\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nmade by a person to another person not known to the firstmentioned\\nperson to be resident in Singapore.\\n[32/2019]\\n(2) The modifications are —\\n(a) any amount deducted by the Government under section 45,\\n45A, 45F or 45GA does not constitute a debt due to the\\nGovernment and is not recoverable in the manner provided\\nby section 89; and\\n(b) section 45(3), (4), (5), (6) and (7) (including those\\nprovisions as applied by sections 45A, 45F and 45GA)\\ndoes not apply.\\n[32/2019]\\nPART 13\\nALLOWANCES FOR TAX CHARGED\\nTax deducted from interests, etc.\\n46.—(1) Any tax —\\n(a) which a person has deducted from any interest or other\\npayment under section 45, 45A, 45C, 45D, 45E(1)(a),\\n45GA or 45H or has deducted from any remuneration\\nunder section 45B;\\n(b) applicable to the share to which any person is entitled in the\\nincome of a body of persons (other than trustees);\\n(c) which a person has deducted from any payment under\\nsection 45F in respect of income accrued to or derived by\\nany person who has made an option under section 43(5); or\\n(d) which a trustee of a real estate investment trust or a trustee\\nof an approved REIT exchange‑traded fund has deducted\\nfrom any distribution to any person referred to in\\nsection 45G(1)(b),\\nmust, when the income from which the tax has been deducted or when\\nthe share mentioned in paragraph (b) is included in the chargeable\\nIncome Tax Act 1947\\n2020 Ed.\\n968\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nincome of any person, be set‑off for the purpose of collection against\\nthe tax charged on that chargeable income.\\n[45/2018]\\n(1A) [Deleted by Act 19 of 2013]\\n(2) Any tax which has been collected under section 45EA must,\\nwhen the income in respect of which the tax has been collected is\\nincluded in the chargeable income of the SRS member in question, be\\nset‑off for the purpose of collection against the tax charged on that\\nchargeable income.\\n[2/2016]\\n(3) The reference in subsection (2) to income in respect of which\\ntax has been collected is a reference to —\\n(a) the amount deemed as income of the SRS member under\\nsection 10G(3) or (3G) (as the case may be) wholly or\\npartly because of the deduction of any investment from the\\nbalance in the SRS account for which the tax has been\\ncollected; or\\n(b) the amount deemed as income of the SRS member under\\nsection 10G(6), (7) or (9) (as the case may be), if the\\ndeduction of any investment from the balance in the SRS\\naccount for which the tax has been collected is made\\nafter —\\n(i) the balance (excluding any life annuity) remaining in\\nthe SRS account is deemed withdrawn under\\nsection 10G(6) or (7); or\\n(ii) the sum standing in the SRS account is deemed\\nwithdrawn under section 10G(9),\\n(b) as the case may be.\\n[2/2016]\\n47. [Repealed by Act 45 of 2018]\\nPART 14\\nRELIEF AGAINST DOUBLE TAXATION\\n48. [Repealed by Act 27 of 2009]\\nIncome Tax Act 1947\\n969\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nAvoidance of double taxation arrangements\\n49.—(1) If the Minister by order declares that arrangements\\nspecified in the order have been made with the government of any\\ncountry outside Singapore with a view to affording relief from double\\ntaxation in relation to tax under this Act and any tax of a similar\\ncharacter imposed by the laws of that country, and that it is expedient\\nthat those arrangements should have effect, the arrangements have\\neffect despite anything in any written law.\\n(2) Any arrangements made with the government of another\\ncountry —\\n(a) may provide for liability to tax by one country and for\\nexemption from tax by the other country;\\n(b) may provide for exemption, wholly or partly and with or\\nwithout conditions, from tax in either or both countries and\\nfor any income so exempted to be taken into account in\\ndetermining the effective rate of tax to be applicable to\\nother income;\\n(c) may deem the source of income to be wholly or partly in\\neither or both of such countries; and\\n(d) may provide for the charge to tax by the country in which\\nthe source is deemed to be situated, of any income derived\\nfrom such source.\\n(2A) In subsection (2)(b), “effective rate of tax” means the rate of\\ntax as ascertained in accordance with the formula\\nA\\nB þ C ;\\nwhere A is the tax payable before allowance of credit under any\\narrangements having effect under this section on B + C\\ncomputed in accordance with the provisions of this Act;\\nB is the exempt income; and\\nC is the other income.\\n(3) [Deleted by Act 27 of 2009]\\nIncome Tax Act 1947\\n2020 Ed.\\n970\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(4) Any order made under this section may be revoked by a\\nsubsequent order.\\n(5) Where any arrangements have effect by virtue of this section,\\nthe obligation as to secrecy imposed by section 6 does not prevent the\\ndisclosure to any authorised officer of the government with which the\\narrangements are made of such information as is required to be\\ndisclosed under the arrangements.\\n(6) The Minister may make rules for carrying out the provisions of\\nany arrangements having effect under this section.\\n(7) The Minister may by order amend the provisions of any\\narrangements that have effect under subsection (1), in order to give\\neffect to Singapore’s obligations under the Multilateral Convention to\\nImplement Tax Treaty Related Measures to Prevent Base Erosion and\\nProfit Shifting done at Paris on 24 November 2016 (as amended from\\ntime to time).\\n[39/2017]\\n(8) Where the provisions of any arrangements that have effect\\nunder subsection (1) are amended by an order under subsection (7),\\nthen those provisions have effect under subsection (1) as amended by\\nthat order.\\n[39/2017]\\nTax credits\\n50.—(1) This section has effect where, under arrangements having\\neffect under section 49, tax payable in respect of any income in the\\nterritory with the government of which the arrangements are made is\\nto be allowed as a credit against tax payable in respect of that income\\nin Singapore.\\n(2) The amount of the income tax chargeable in respect of the\\nincome is reduced by the amount of the credit; except that credit is not\\nallowed against income tax for any year of assessment unless the\\nperson entitled to the income is resident in Singapore during that year.\\n(3) The credit must not exceed the amount which would be\\nproduced by computing the amount of the income in accordance with\\nthe provisions of this Act and then charging it to income tax at a rate\\nascertained by dividing the income tax chargeable (before allowance\\nIncome Tax Act 1947\\n971\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nof credit under any arrangements having effect under section 49) on\\nthe assessable income of the person entitled to the income by the\\namount of the person’s assessable income.\\n(4) Without limiting subsection (3), the total credit to be allowed to\\na person for any year of assessment for foreign tax under all\\narrangements having effect under section 49 must not exceed the total\\nincome tax payable by the person for that year of assessment,\\nexcluding any tax payable by the person under section 45.\\n(5) In computing the amount of the income —\\n(a) no deduction is allowed in respect of foreign tax (whether\\nin respect of the same or any other income);\\n(b) where the income tax chargeable depends on the amount\\nreceived in Singapore, that amount is to be increased by the\\nappropriate amount of the foreign tax in respect of the\\nincome; and\\n(c) where the income includes a dividend and under the\\narrangements foreign tax not chargeable directly or by\\ndeduction in respect of the dividend is to be taken into\\naccount in considering whether any (and if so what) credit\\nis to be given against income tax in respect of the dividend,\\nthe amount of the income is to be increased by the amount\\nof the foreign tax not so chargeable that falls to be taken\\ninto account in computing the amount of the credit.\\n(6) Subsection (5)(a) and (b) applies to the computation of\\nassessable income for the purposes of determining the rate\\nmentioned in subsection (3), and applies to such computation in\\nrelation to all income in the case of which credit falls to be given for\\nforeign tax under arrangements for the time being in force under\\nsection 49.\\n(7) Where —\\n(a) the arrangements provide, in relation to dividends of some\\nclasses, but not in relation to dividends of other classes,\\nthat foreign tax not chargeable directly or by deduction in\\nrespect of dividends is to be taken into account in\\nIncome Tax Act 1947\\n2020 Ed.\\n972\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nconsidering whether any (and if so what) credit is to be\\ngiven against income tax in respect of the dividends; and\\n(b) a dividend is paid that is not of a class in relation to which\\nthe arrangements so provide,\\nthen, if the dividend is paid to a company which controls, directly or\\nindirectly, not less than one‑half of the voting power in the company\\npaying the dividend, credit is to be allowed as if the dividend were a\\ndividend of a class in relation to which the arrangements so provide.\\n(8) Credit is not allowed under the arrangements against income tax\\nchargeable in respect of the income of any person for any year of\\nassessment if the person elects that credit is not to be allowed in the\\ncase of the person’s income for that year.\\n(9) Any claim for an allowance by way of credit must be made not\\nlater than 2 years after the end of the year of assessment to which the\\nclaim relates (if the year of assessment is the year of assessment 2021\\nor a previous year of assessment), or 4 years after the end of the year\\nof assessment to which the claim relates (if the year of assessment is\\nany other year of assessment), and in the event of any dispute as to the\\namount allowable the claim is subject to objection and appeal in like\\nmanner as an assessment.\\n[27/2021]\\n(10) Where the amount of any credit given under the arrangements\\nis rendered excessive or insufficient by reason of any adjustment of\\nthe amount of any tax payable either in Singapore or elsewhere,\\nnothing in this Act limiting the time for the making of assessments or\\nclaims for relief applies to any assessment or claim to which the\\nadjustment gives rise, being an assessment or claim made not later\\nthan 3 years from the time when all such assessments, adjustments\\nand other determinations have been made, whether in Singapore or\\nelsewhere, as are material in determining whether any (and if so\\nwhat) credit falls to be given.\\n[27/2021]\\n(11) If the amount of any credit given under the arrangements to a\\nperson is rendered excessive by reason of any adjustment of the\\namount of any tax payable in any territory outside Singapore, the\\nperson must give the Comptroller a written notice of the particulars of\\nIncome Tax Act 1947\\n973\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthe adjustment, in the manner specified by the Comptroller, within\\none year after the adjustment is made.\\n[27/2021]\\n(11A) Any person who, without reasonable excuse, fails to comply\\nwith subsection (11) shall be guilty of an offence and shall be liable\\non conviction to a penalty not exceeding the amount of the excess\\ncredit under subsection (11).\\n[27/2021]\\n(11B) The\\nComptroller\\nmay\\ncompound\\nany\\noffence\\nunder\\nsubsection (11A).\\n[27/2021]\\n(12) In this section —\\n“foreign tax” means any tax payable in that territory which\\nunder the arrangements is to be so allowed;\\n“income tax” means tax chargeable under this Act.\\nUnilateral tax credits\\n50A.—(1) Even if there are no arrangements in force under\\nsection 49 with the government of any territory outside Singapore,\\ntax credit under section 50 must, subject to this section, be given to\\nany person resident in Singapore for tax payable under the law of that\\nterritory in respect of —\\n(a) any income derived from any professional, consultancy\\nand other services rendered in that territory;\\n(b) any royalty derived from that territory, where the payment\\nis not —\\n(i) borne, directly or indirectly, by a person resident in\\nSingapore\\nor\\na\\npermanent\\nestablishment\\nin\\nSingapore (except in respect of any business\\ncarried on outside Singapore through a permanent\\nestablishment outside Singapore); or\\n(ii) deductible against any income accruing in or derived\\nfrom Singapore;\\n(c) any dividend derived from that territory;\\nIncome Tax Act 1947\\n2020 Ed.\\n974\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(d) any income from employment in that territory;\\n(e) any profit derived from outside Singapore by a branch in\\nthat territory of a company resident in Singapore;\\n(f) any income derived from any trade or business carried on\\nin that territory through a permanent establishment in that\\nterritory;\\n(g) any discount or premium from debt securities or interest\\nderived from that territory where the payment is not —\\n(i) borne, directly or indirectly, by a person resident in\\nSingapore\\nor\\na\\npermanent\\nestablishment\\nin\\nSingapore (except in respect of any business\\ncarried on outside Singapore through a permanent\\nestablishment outside Singapore); or\\n(ii) deductible against any income accruing in or derived\\nfrom Singapore;\\n(h) any rent or other income ancillary to the holding of\\nimmovable properties located in that territory but not\\nincluding gains from the disposal of such immovable\\nproperties derived from a trade or business carried on in\\nSingapore;\\n[Act 30 of 2023 wef 01/01/2024]\\n(ha) any gains treated as income under section 10L; and\\n[Act 30 of 2023 wef 01/01/2024]\\n(i) any gains or profits of an income nature not falling within\\nany of the preceding paragraphs that is derived from that\\nterritory.\\n(2) Where any dividend in respect of which tax credit is given under\\nsubsection (1)(c) is paid by a company which is resident outside\\nSingapore to a person resident in Singapore who owns not less than\\n25% of the total number of issued shares of the company paying the\\ndividend, the tax credit must take into account any tax paid by that\\ncompany in the country in which it is resident in respect of its income\\nout of which the dividend is paid.\\n(3) Where under arrangements for the time being in force under\\nsection 49 with the government of any territory outside Singapore no\\nIncome Tax Act 1947\\n975\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nprovision is made for tax credit in respect of income out of which any\\ndividend is paid by a company resident in that territory, tax credit\\nunder section 50 in respect of such income must be given to any\\nperson resident in Singapore who owns not less than 25% of the total\\nnumber of issued shares of the company paying the dividend.\\n(4) Section 50 applies, with the necessary modifications, for the\\npurposes of this section as if any territory to which this section and the\\nregulations have effect were a territory with which arrangements have\\nbeen made under section 49.\\n(5) Any person granted any tax credit under subsection (1) on any\\nincome must not be given any tax credit under section 50 in respect of\\nthat income.\\n(6) The Minister may, in any particular case, waive the requirement\\nof 25% share ownership mentioned in subsections (2) and (3).\\n(7) In this section, “debt securities” has the meaning given by\\nsection 43H(4).\\nTax credits for trust income to which beneficiary is entitled\\n50B.—(1) Where —\\n(a) a trustee of a trust receives income in Singapore from\\noutside Singapore (called in this section the income) for\\nwhich a tax credit is allowable under this Part against the\\ntax payable in respect of the income; and\\n(b) any beneficiary of the trust who is resident in Singapore is\\nentitled to a share of the income,\\nthe tax credit in respect of that share must be given to the beneficiary\\ninstead of the trustee.\\n(2) The tax credit to be given to a beneficiary under subsection (1)\\nis computed in accordance with section 50 or 50A (as the case may\\nbe) as if the income had been received directly by the beneficiary\\nrather than the trustee.\\n(3) This section does not apply to —\\n(a) any income of a real estate investment trust within the\\nmeaning of section 43(10);\\nIncome Tax Act 1947\\n2020 Ed.\\n976\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) any income of a designated unit trust within the meaning of\\nsection 35(14);\\n(c) [Deleted by Act 37 of 2014]\\n(d) any income of a trust fund prescribed under section 13C;\\n(e) any income of a foreign trust specified under section 13F;\\n(f) any income of a locally‑administered trust prescribed\\nunder section 13N;\\n(g) any income of a trust the trustee of which is a prescribed\\nperson under section 13D; or\\n(h) any income of an approved trust fund referred to in the\\ndefinition of “approved person” under section 13U(5), or\\nof a trust fund that is a feeder fund or master fund approved\\nunder section 13U.\\n[37/2014]\\nTax credits for estate income received by beneficiary, etc.\\n50BA.—(1) Where an executor of an estate administered in\\nSingapore receives income in Singapore from outside Singapore\\n(called in this section the income) for which a tax credit is allowable\\nunder this Part against the tax payable in respect of the income, and\\nany share of the income is —\\n(a) received by or distributed to a beneficiary who is resident\\nin Singapore; or\\n(b) applied to the benefit of such beneficiary,\\nthe tax credit in respect of that share must be given to the beneficiary\\ninstead of the executor.\\n(2) The tax credit to be given to a beneficiary under subsection (1)\\nis computed in accordance with section 50 or 50A (as the case may\\nbe) as if the share of the income had been received in Singapore\\ndirectly by the beneficiary rather than the executor of the estate.\\n[Act 30 of 2023 wef 30/10/2023]\\nIncome Tax Act 1947\\n977\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nPooling of credits\\n50C.—(1) Where, for the year of assessment 2012 or a subsequent\\nyear of assessment, a person is entitled to 2 or more tax credits under\\nany other provision of this Part, the person may elect to be given a\\npooled credit for that year of assessment in lieu of any 2 or more of\\nthose credits (called in this section the replaced credits).\\n(2) Subsection (1) only applies if the income that is the subject of\\neach replaced credit (called in this section the elected income)\\nsatisfies all of the following conditions:\\n(a) tax under the law of the territory from which the income is\\nderived that is of a similar character to income tax (by\\nwhatever name called) has been paid on the income;\\n(b) at the time the income is received in Singapore by the\\nperson, the highest rate of tax of a similar character to\\nincome tax (by whatever name called) levied under the law\\nof that territory on any gains or profits from any trade or\\nbusiness carried on by a company in that territory at that\\ntime, is not less than 15%;\\n(c) the income tax payable under this Act on the income for the\\nyear of assessment (before allowance of any credit under\\nthis Part) is not nil.\\n(3) The total amount of the income tax chargeable to the person in\\nrespect of all the elected income is reduced by the amount of the\\npooled credit.\\n(4) The amount of the pooled credit is the lower of —\\n(a) the aggregate of the income tax chargeable for the year of\\nassessment on all the elected income; and\\n(b) the aggregate of the taxes paid on all the elected income in\\nthe territory or territories outside Singapore from which the\\nelected income is derived.\\n(5) In subsection (4)(a), the aggregate of the income tax chargeable\\nfor the year of assessment on all the elected income is ascertained\\nby —\\nIncome Tax Act 1947\\n2020 Ed.\\n978\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(a) computing the amount of the income that is the subject of\\neach replaced credit in accordance with the provisions of\\nthis Act, and then charging it to income tax at a rate\\nascertained by dividing the income tax chargeable (before\\nallowance of any credit under this Part) on the assessable\\nincome of the person by the amount of the person’s\\nassessable income; and\\n(b) aggregating the amounts computed in accordance with\\nparagraph (a) of all the replaced credits.\\n(6) Sections 50(5), (6), (9), (10), (11), (11A), (11B) and (12),\\n50A(2),\\n50B(2)\\nand\\n50BA(2)\\napply,\\nwith\\nthe\\nnecessary\\nmodifications, for the purposes of this section.\\n[32/2019; 27/2021]\\n[Act 30 of 2023 wef 30/10/2023]\\n(7) To avoid doubt, sections 50, 50A, 50B and 50BA (as applicable)\\ncontinue to apply to any income that is the subject of a credit allowed\\nunder any other provision of this Part for which no election under this\\nsection is made.\\n[Act 30 of 2023 wef 30/10/2023]\\nPART 15\\nPERSONS CHARGEABLE\\nHusband and wife\\nIncome of wife\\n51.—(1) The income of a married woman must for the purposes of\\nthis Act be charged in her own name.\\n(2) [Deleted by Act 22 of 2011]\\n(3) For the purposes of this Act, a married woman is treated as\\nliving with her husband unless —\\n(a) they are separated under an order of court of competent\\njurisdiction or by deed of separation;\\n(b) they are in fact separated in such circumstances that the\\nseparation is likely to be permanent; or\\nIncome Tax Act 1947\\n979\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) she is, and her husband is not, resident in Singapore.\\nTrustees, agents and curators\\nChargeability of trustees, etc.\\n52.—(1) A receiver appointed by the court, a trustee, a guardian, a\\ncurator or a committee, having the direction, control or management\\nof any property or concern on behalf of any incapacitated person is\\nchargeable to tax in like manner and to the like amount as such person\\nwould be chargeable if the person were not an incapacitated person.\\n(2) This section is not to be construed to make any person\\nchargeable to tax in respect of an incapacitated person, liable in\\nsuch respect, for a greater amount of tax than that for which the\\nincapacitated person would have been liable had no receiver, trustee,\\nguardian, curator or committee been appointed.\\nChargeability of agent of person residing out of Singapore\\n53.—(1) A person not resident in Singapore (called in this section a\\nnon‑resident person) is assessable and chargeable to tax either\\ndirectly or in the name of the person’s trustee, guardian, or\\ncommittee, or of any attorney, factor, agent, receiver, branch or\\nmanager, whether such attorney, factor, agent, receiver, branch or\\nmanager has the receipt of the income or not, in like manner and to the\\nlike amount as such non‑resident person would be assessed and\\ncharged if the person were resident in Singapore and in the actual\\nreceipt of such income; except that in the case of any individual who\\nis not resident in Singapore, no deduction is allowed under section 39.\\n[41/2020]\\n(1A) A non‑resident person is assessable and chargeable in respect\\nof any income arising, directly or indirectly, through or from any\\nattorneyship,\\nfactorship,\\nagency,\\nreceivership,\\nbranch\\nor\\nmanagement, and is so assessable and chargeable in the name of\\nthe attorney, factor, agent, receiver, branch or manager.\\n(2) A non‑resident beneficiary of the estate of a deceased person is,\\nwhere the estate is being administered in Singapore, assessable and\\nchargeable in respect of the income received by or distributed to the\\nnon‑resident beneficiary or applied to the non‑resident beneficiary’s\\nIncome Tax Act 1947\\n2020 Ed.\\n980\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nbenefit in the name of the executor of the estate as if the executor\\nwere an agent of the non‑resident beneficiary.\\n(2A) Where a non‑resident person carries on business with a\\nresident person and it appears to the Comptroller that, owing to the\\nclose connection between the resident person and the non‑resident\\nperson and to the substantial control exercised by the non‑resident\\nperson over the resident person, the course of business between those\\npersons can be so arranged and is so arranged that the business done\\nby the resident person pursuant to the resident person’s connection\\nwith the non‑resident person produces to the resident person either no\\nprofits or less than the ordinary profits which might be expected to\\narise from that business, the non‑resident person is assessable and\\nchargeable to tax in the name of the resident person as if the resident\\nperson were an agent of the non‑resident person.\\n(3) Where the true amount of the gains or profits of any\\nnon‑resident person chargeable with tax in the name of a resident\\nperson cannot in any case be readily ascertained, the Comptroller\\nmay, if he or she thinks fit, assess and charge the non‑resident person\\non a fair and reasonable percentage of the turnover of the business\\ndone by the non‑resident person through or with the resident person in\\nwhose name the non‑resident person is chargeable as aforesaid, and in\\nsuch case the provisions of this Act relating to the delivery of returns\\nor particulars by persons acting on behalf of others extend so as to\\nrequire returns or particulars to be furnished by the resident person of\\nthe business so done by the non‑resident person through or with the\\nresident person, in the same manner as returns or particulars are to be\\ndelivered by persons acting for incapacitated or non‑resident persons\\nof income to be charged.\\n(3A) The amount of the percentage under subsection (3) must in\\neach case be determined with regard to the nature of the business and\\nis, when determined by the Comptroller, subject to appeal in\\naccordance with the provisions of Part 18.\\n(4) This section does not render a non‑resident person chargeable in\\nthe name of a broker or general commission agent or other agent\\nwhere such broker, general commission agent or agent is not an\\nauthorised person carrying on the regular agency of the non‑resident\\nIncome Tax Act 1947\\n981\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nperson, or person chargeable as if the person were an agent pursuant\\nto subsections (2A) and (3), in respect of gains or profits arising from\\nsales or transactions carried out through such a broker or agent.\\n(5) The fact that a non‑resident person executes sales or carries out\\ntransactions with other non‑resident persons in circumstances which\\nwould make the non‑resident person chargeable pursuant to\\nsubsections (2A) and (3) in the name of a resident person does not\\nof itself make the non‑resident person chargeable in respect of gains\\nor profits arising from those sales or transactions.\\n(6) Where a non‑resident person is chargeable to tax in the name of\\nany attorney, factor, agent, receiver or manager, in respect of any\\ngains or profits arising from the sale of goods or produce\\nmanufactured or produced outside Singapore by the non‑resident\\nperson, the person in whose name the non‑resident person is so\\nchargeable may, if the person thinks fit, apply to the Comptroller to\\nhave the assessment to tax in respect of those gains or profits made or\\namended on the basis of the profits which might reasonably be\\nexpected to have been earned by a merchant or, where the goods are\\nretailed by or on behalf of the manufacturer or producer, by a retailer\\nof the goods sold, who had bought from the manufacturer or producer\\ndirect, and on proof to the Comptroller’s satisfaction of the amount of\\nthe profits on that basis, the assessment must be made or amended\\naccordingly.\\n(7) The master of any ship (within the meaning of section 2(1) of\\nthe Merchant Shipping Act 1995) and the captain of any aircraft\\nowned or chartered by a non‑resident person who is chargeable under\\nsection 12(2) are (though not to the exclusion of any other agent)\\ndeemed the agents of such non‑resident person for all the purposes of\\nthis Act.\\n[2/2016]\\n(8) The income of any non‑resident partner or partners from a\\npartnership is assessable in the name of the partnership or of any\\nresident partner or of any agent of the partnership in Singapore, and\\nthe tax charged thereon is recoverable by all means provided in this\\nAct out of the assets of the partnership or from any partner or from\\nany such agent.\\nIncome Tax Act 1947\\n2020 Ed.\\n982\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nLiability of person chargeable in respect of incapacitated\\nperson\\n54. The person who is chargeable in respect of an incapacitated\\nperson, or in whose name a non‑resident person is chargeable, is\\nanswerable for all matters required to be done by virtue of this Act for\\nthe assessment of the income of any person for whom the\\nfirstmentioned person acts and for paying the tax chargeable thereon.\\nLiability of managers of companies or bodies of persons\\n55. The manager or principal officer in Singapore of every\\ncompany or body of persons is answerable for doing all such acts,\\nmatters and things as are required to be done by virtue of this Act for\\nthe assessment of the company or body of persons and payment of\\ntax.\\nIndemnification of representative\\n56. Every person answerable under this Act for the payment of tax\\non behalf of another person may retain out of any money coming to\\nthe firstmentioned person’s hands on behalf of the other person so\\nmuch thereof as is sufficient to pay the tax; and must be and is\\nindemnified against any person whatsoever for all payments made by\\nthe firstmentioned person pursuant to and by virtue of this Act.\\nPower to appoint agent, etc., for recovery of tax\\n57.—(1) The Comptroller may by written notice, if the Comptroller\\nthinks it necessary, declare any person to be the agent of any other\\nperson.\\n(1A) The person (X) declared the agent under subsection (1) is the\\nagent of such other person for the purposes of this Act and may be\\nrequired to pay any tax due from any moneys, including pensions,\\nsalary, wages or any other remuneration, which, at the date of the\\nreceipt of the notice or at any time during the period of 90 days\\nthereafter, may be held by X for or due by X to the person whose agent\\nX has been declared to be.\\n(1B) In default of payment under subsection (1A), the tax is\\nrecoverable from the agent in the manner provided by section 89.\\nIncome Tax Act 1947\\n983\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(2) For the purposes of this section, the Comptroller may require\\nany person to give the Comptroller information as to any moneys,\\nfunds or other assets which may be held by the person for, or of any\\nmoneys due by the person to, any other person.\\n(3) Where any person declared by the Comptroller to be the agent of\\nany other person under subsection (1) is aggrieved by such\\ndeclaration the person may, by written notice to the Comptroller\\nwithin 14 days, or within such further time as the Comptroller may\\nallow, object to the declaration.\\n(4) The Comptroller must examine the objection and may cancel,\\nvary or confirm the declaration.\\n(5) Where the objector is aggrieved by the Comptroller’s decision\\non the objection, the objector may appeal against such decision to the\\nBoard of Review and the provisions of Part 18 apply with the\\nnecessary modifications.\\n(5A) For the purposes of payment of any tax due from any moneys\\nreferred to in subsection (1A) in a joint account at any bank or from\\nthe proceeds of sale of any immovable property owned by 2 or more\\npersons as joint owners, the following provisions apply:\\n(a) the\\nperson\\ndeclared\\nby\\nthe\\nComptroller\\nunder\\nsubsection (1) to be the agent of any person who is an\\nowner of such moneys must —\\n(i) within 14 days of the receipt of the notice under\\nsubsection (1A), send a notice by registered post\\naddressed to every owner of such moneys at the\\naddress last known to the agent informing the owner\\nof such declaration; and\\n(ii) retain such amount of the moneys as is presumed\\nunder paragraph (b) to be owned by the person from\\nwhom tax is due and subject to paragraph (e) within\\n42\\ndays\\nof\\nthe\\nreceipt\\nof\\nthe\\nnotice\\nunder\\nsubsection (1A) pay over the tax due from such\\namount to the Comptroller;\\n(b) it is presumed, until the contrary is proved, that the holders\\nof a joint account at any bank have equal share of the\\nIncome Tax Act 1947\\n2020 Ed.\\n984\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nmoneys in the account as at the date of receipt of the notice\\nunder subsection (1A) and that the joint owners of any\\nimmovable property share the proceeds of sale of the\\nproperty equally;\\n(c) any owner of such moneys who objects to the share\\npresumed under paragraph (b) must give written notice of\\nthe owner’s objection to the person declared to be the agent\\nunder subsection (1) within 28 days of the receipt of the\\nnotice of the agent under paragraph (a)(i), or within such\\nfurther period as the Comptroller may allow, and furnish\\nproof as to the owner’s share of the moneys;\\n(d) where an objection under paragraph (c) has been received,\\nthe person declared to be the agent must —\\n(i) retain the amount of such moneys referred to in\\nparagraph (a)(ii) until such time as the Comptroller\\nby notice under paragraph (e) informs the person of\\nthe Comptroller’s decision on the objection; and\\n(ii) inform the Comptroller of the objection within\\n7 days of the receipt of the objection;\\n(e) the Comptroller must consider the objection and must by\\nwritten notice inform the person declared to be the agent of\\nthe Comptroller’s decision and the agent must, despite any\\nappeal under paragraph (f), pay over any tax due from the\\nshare of moneys decided by the Comptroller as the amount,\\nnot exceeding the amount presumed under paragraph (b) to\\nbe the share of the person by whom the tax is payable, held\\nby the agent for or due by the agent to the person; and\\n(f) any owner of such moneys aggrieved by the Comptroller’s\\ndecision under paragraph (e) may appeal against the\\ndecision to the Board of Review and the provisions of\\nPart 18 apply, with the necessary modifications, to the\\nappeal.\\n(6) Where an agent makes any payment of moneys to the\\nComptroller under this section —\\nIncome Tax Act 1947\\n985\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(a) the agent is deemed to have been acting under the authority\\nof the person by whom the tax is payable (called in this\\nsection the defaulting taxpayer);\\n(b) the agent is indemnified in respect of the payment to the\\nComptroller;\\n(c) the amount of the tax due from the defaulting taxpayer is\\nreduced by the amount paid by the agent to the\\nComptroller; and\\n(d) the amount of the reduction is, to the extent of that amount,\\ndeemed to have been paid to the defaulting taxpayer in\\naccordance with any law, contract or scheme governing the\\npayment of moneys held by the agent for or due from the\\nagent to the defaulting taxpayer.\\n(6A) Where —\\n(a) an amount of tax is due from any person under this Act\\notherwise than as an agent under this section;\\n(b) except for this subsection, an amount is or would, at any\\ntime during the period of 90 days after the date of the\\nreceipt of the notice in paragraph (c), be payable by the\\nGovernment to the defaulting taxpayer by or under any\\nwritten law, contract or scheme; and\\n(c) before payment of the amount mentioned in paragraph (b)\\nis made to the defaulting taxpayer, the Comptroller serves\\nnotice on any public officer (including an employee\\nappointed under section 9(3) of the Inland Revenue\\nAuthority of Singapore Act 1992) by whom the payment\\nis to be made that the tax is due from the defaulting\\ntaxpayer,\\nthen the public officer is, despite any other written law, contract or\\nscheme, entitled to reduce the amount mentioned in paragraph (b) by\\nthe amount of the whole or any part of the tax mentioned in\\nparagraph (a), and if the public officer makes such a reduction —\\n(d) the amount of the tax mentioned in paragraph (a) is\\nreduced by the amount of the reduction; and\\nIncome Tax Act 1947\\n2020 Ed.\\n986\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(e) the amount of the reduction is, to the extent of such\\namount, deemed to have been paid to the defaulting\\ntaxpayer in accordance with any law, contract or scheme\\ngoverning\\nthe\\npayment\\nof\\nmoneys\\nreferred\\nto\\nin\\nparagraph (b) to the defaulting taxpayer.\\n(7) In this section —\\n“joint account” means any account in the names of 2 or more\\npersons but excludes any partnership account, trust account\\nand any account where a minor is one of the joint account\\nholders;\\n“tax” includes any penalty or any other money which a person is\\nliable to pay to the Comptroller under this Act.\\nDeceased persons\\n58.—(1) Where an individual (X) dies, then as respects income\\narising before X’s death all rights and duties which would have\\nattached to X, and any liability to be charged with or to pay tax to\\nwhich X would have been subject under this Act if X had not died,\\npass to X’s executor, and the amount of any tax payable by the\\nexecutor under this section is a debt due from and payable out of X’s\\nestate.\\n(2) Any assessment or additional assessment on any such income\\nmust not be made later than the end of the third year of assessment\\nfollowing that in which X died.\\n(3) Where, by reason of the death of an individual (X), a trade,\\nbusiness, profession, vocation or employment ceases to be carried on\\nor exercised by X or the income from any other source ceases, and\\nsection 35 applies, X’s executor is liable for the tax for which X would\\nhave been liable if X had not died but, except in the case of dividends,\\na cessation had taken place at the date of X’s death.\\n(4) In the case of an individual dying during the year preceding the\\nyear of assessment, if his or her executor distributes the estate before\\nthe commencement of the year of assessment, such executor must pay\\nany tax for that year of assessment at the rate or rates in force at the\\nIncome Tax Act 1947\\n987\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\ndate of distribution of the estate, if the rate of tax for that year of\\nassessment has not been varied at that date.\\nDuty of liquidator on winding up of company or limited\\nliability partnership\\n59.—(1) Where a company or a limited liability partnership is\\nbeing wound up, the liquidator of the company or limited liability\\npartnership (as the case may be) is answerable for doing all such acts,\\nmatters and things as are required to be done under this Act in relation\\nto the affairs of the company or the limited liability partnership.\\n(2) Where a company is being wound up, the liquidator of the\\ncompany must not distribute any of the assets of the company to its\\nshareholders unless the liquidator has made provision for the\\npayment in full of any tax which may be found payable by the\\ncompany.\\nChargeability of joint trustees\\n60. Where 2 or more persons act in the capacity of trustees of a trust\\nthey may be charged jointly or severally with the tax with which they\\nare chargeable in that capacity and are jointly and severally liable for\\npayment of the same.\\n61. [Repealed by Act 29 of 2012]\\nPART 16\\nRETURNS\\nNotice of chargeability and returns\\n62.—(1) The Comptroller may, by notice in the Gazette, require\\nevery person to furnish to the Comptroller in such form and manner\\nas the Comptroller may determine, within a reasonable time specified\\nin the notice or such extended time as the Comptroller may allow, a\\nreturn of income for the year of assessment specified in the notice and\\nsuch particulars as may be required for the purpose of ascertaining the\\nincome (if any) for which —\\n(a) the person is chargeable under this Act; and\\nIncome Tax Act 1947\\n2020 Ed.\\n988\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) in the case of a precedent partner or such other person\\nreferred to in section 71, each partner in the partnership is\\nchargeable.\\n(2) The Comptroller may, in any notice made under subsection (1),\\nexempt from liability to furnish returns such classes of persons as the\\nComptroller thinks fit, and any person so exempted need not furnish a\\nreturn under that subsection unless the person is required by the\\nComptroller to do so under subsection (3).\\n(3) Despite subsection (1), the Comptroller may, by written notice,\\nrequire any person to furnish to the Comptroller in such form and\\nmanner and within such reasonable time as the Comptroller may\\ndetermine, with a return of income and such particulars as may be\\nrequired for the purpose of ascertaining the income (if any) for which\\nsuch person is chargeable under this Act.\\n(4) Every person chargeable with tax for any year of assessment\\nwho has not been required within 3 months after the commencement\\nof such year of assessment to make a return of the person’s income for\\nthat year as provided in subsection (1) or (3) must, within 14 days\\nafter the end of that period, give notice to the Comptroller that the\\nperson is so chargeable.\\n(5) Any individual who arrives in Singapore during any year of\\nassessment must give such notice within one month of the date of the\\nindividual’s arrival.\\n(6) A company licensed under the Insurance Act 1966 to carry on\\ninsurance business in Singapore that is required under subsection (1)\\nto furnish a tax computation with its return of income, must furnish to\\nthe Comptroller a tax computation that is prepared in accordance with\\nits MAS return along with such additional information as the\\nComptroller may reasonably require for making an assessment.\\n[Act 33 of 2022 wef 04/11/2022]\\n(7) Subsection (6) has effect for any year of assessment for a basis\\nperiod beginning on or after 1 January 2023, or such earlier basis\\nperiod as may be approved by the Comptroller in a particular case.\\n[Act 33 of 2022 wef 04/11/2022]\\nIncome Tax Act 1947\\n989\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(8) The Minister may make regulations to provide for any\\ntransitional, supplementary and consequential matters relating to\\nsubsections (6) and (7).\\n[Act 33 of 2022 wef 04/11/2022]\\n(9) In this section, “MAS return” has the meaning given by\\nsection 34AAA(14).\\n[Act 33 of 2022 wef 04/11/2022]\\nThe basic rule: Singapore dollar to be used\\n62A. Subject to section 62B, where a person carrying on a trade,\\nbusiness,\\nprofession\\nor\\nvocation\\nis\\nrequired\\nto\\nfurnish\\ntax\\ncomputations and particulars of income with a return of income\\nmade under section 62 or 71, the tax computations and particulars of\\nincome must be denominated in Singapore dollar.\\nCurrency other than Singapore dollar to be used in certain\\ncircumstances\\n62B.—(1) Where a person maintains the person’s financial\\naccounts in respect of any trade, business, profession or vocation\\ncarried on by the person in a functional currency other than Singapore\\ndollar in accordance with financial reporting standards in Singapore,\\nthe person who is required to furnish tax computations and particulars\\nof income with a return of income made under section 62 or 71 must\\nfurnish such computations and particulars of income denominated in\\nthat functional currency in the manner prescribed under this section.\\n(2) The amount of chargeable income (after deducting the amount\\nnot charged to tax under section 43(6) or (6C)) of any company for\\nany year of assessment must be converted to an equivalent amount in\\nSingapore dollar, and the amount of tax which has been deducted or is\\ndeductible from any interest under section 45 derived by the company\\nmust remain denominated in Singapore dollar.\\n[45/2018]\\n(3) The amount of statutory income from any trade, business,\\nprofession or vocation carried on by any individual for any basis\\nperiod and the amount of donation made by the individual during any\\nyear must be converted to an equivalent amount in Singapore dollar,\\nand any amount of allowances, losses or donations which remains\\nIncome Tax Act 1947\\n2020 Ed.\\n990\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nunabsorbed at the end of any basis period or at the end of any year (as\\nthe case may be) must be carried forward to the next basis period or\\nnext year denominated in Singapore dollar.\\n(4) In respect of any partnership, the income of a partner from the\\npartnership and the partner’s share of donation made by the\\npartnership for any year of assessment must be converted to an\\nequivalent amount in Singapore dollar, and any amount of\\nallowances, losses or donations which remains unabsorbed at the\\nend of any basis period or at the end of any year (as the case may be)\\nmust be carried forward to the next basis period or next year\\ndenominated in Singapore dollar in the tax computation of each\\npartner.\\n(5) Despite anything in this section, a person who is required to\\nfurnish tax computations and particulars of income with a return of\\nincome made under section 62 or 71 to whom this section applies\\nmust declare any information required in any return of income in\\nSingapore dollar.\\n(6) Subject to subsection (7), the rate of exchange applicable for the\\npurposes of converting any amount in Singapore dollar to an\\nequivalent amount in a non‑Singapore dollar functional currency,\\nor any amount in a non‑Singapore dollar functional currency to an\\nequivalent amount in Singapore dollar (as the case may be) is —\\n(a) the average rate of exchange, as made available by the\\nMonetary Authority of Singapore, calculated on the basis\\nof the rate of exchange at the end of each month for the\\naccounting period that constitutes the basis period for the\\nyear of assessment; or\\n(b) where no such average rate of exchange is made available\\nby the Monetary Authority of Singapore, such rate of\\nexchange as the Comptroller may determine.\\n(7) Despite subsection (6), for the purposes of an election under\\nsection 24 or 25, where the buyer and seller or the transferee and\\ntransferor (as the case may be) of any property each uses a different\\nfunctional currency, the rate of exchange applicable is the rate of\\nIncome Tax Act 1947\\n991\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nexchange prevailing as at the date of sale or transfer (as the case may\\nbe) of the property.\\n[27/2021]\\n(8) Despite subsection (6), where a person has furnished a tax\\ncomputation and particulars of income with a return of income in\\nSingapore dollar, and is required under subsection (9) or has obtained\\nthe Comptroller’s approval under subsection (10) (as the case may\\nbe) to furnish a tax computation and particulars of income with a\\nreturn of income in a non‑Singapore dollar functional currency for\\nany year of assessment, such person must convert the amounts\\ndenominated in Singapore dollar into the equivalent amount in the\\nfunctional currency in accordance with the regulations made under\\nsubsection (11).\\n(9) This section has effect for accounting periods beginning on or\\nafter 1 January 2003.\\n(10) This section also has effect for accounting periods beginning\\nbefore 1 January 2003 of a person which had been approved by the\\nComptroller to furnish tax computations and particulars of income\\nwith a return of income made under section 62 or 71 denominated in a\\nfunctional currency other than Singapore dollar for those accounting\\nperiods.\\n(10A) This section does not apply to any company licensed under\\nthe Insurance Act 1966 to carry on insurance business in Singapore,\\nin respect of an accounting period beginning on or after 1 January\\n2023, or such earlier accounting period as may be approved by the\\nComptroller in a particular case.\\n[Act 33 of 2022 wef 04/11/2022]\\n(11) For the purposes of this section, the Minister may make\\nregulations to provide for —\\n(a) such transitional, supplementary and consequential matters\\nas the Minister may consider necessary or expedient; and\\n(b) generally giving effect to or for carrying out the purposes\\nof this section.\\nIncome Tax Act 1947\\n2020 Ed.\\n992\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nFurnishing of estimate of chargeable income if no return is\\nmade under section 62\\n63.—(1) Subject to subsection (1AAA), and unless exempted by\\nrules mentioned in subsection (3), every person, not being an\\nindividual, who has not made a return under section 62 for any year of\\nassessment must, within 3 months after the end of the accounting\\nperiod relating to that year of assessment, or such extended time as\\nthe Comptroller may allow, furnish to the Comptroller an estimate of\\nthe person’s chargeable income.\\n[34/2016]\\n[Act 33 of 2022 wef 04/11/2022]\\n(1AAA) Unless exempted by rules mentioned in subsection (3),\\nevery insurer (other than a captive insurer or a marine mutual insurer)\\nwho has not made a return under section 62 for the year of assessment\\nfor an accounting period beginning on or after 1 January 2023 must,\\nwithin 3 months after the end of the calendar year preceding the year\\nof assessment or such extended time as the Comptroller may allow,\\nfurnish to the Comptroller an estimate of the insurer’s chargeable\\nincome.\\n[Act 33 of 2022 wef 04/11/2022]\\n(1AA) A person mentioned in subsection (1) or (1AAA) must\\nfurnish the estimate of the person’s chargeable income for a year of\\nassessment using the electronic service if rules mentioned in\\nsubsection (3) require a class of persons to furnish their estimates\\nfor that year of assessment using the electronic service, and the\\nperson belongs to that class.\\n[34/2016]\\n[Act 33 of 2022 wef 04/11/2022]\\n(1A) Unless exempted by rules mentioned in subsection (3), every\\nindividual carrying on or exercising any trade, business, profession or\\nvocation who has not made a return under section 62 for any year of\\nassessment must, within 3 months after the end of the accounting\\nperiod relating to that year of assessment, or such extended time as\\nthe Comptroller may allow, furnish to the Comptroller an estimate of\\nthe individual’s chargeable income.\\n[34/2016]\\n[Act 33 of 2022 wef 04/11/2022]\\nIncome Tax Act 1947\\n993\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(2) Any person who fails or neglects without reasonable excuse to\\nfurnish the estimate of the person’s chargeable income as required\\nunder subsection (1), (1AAA), (1AA) or (1A) shall be guilty of an\\noffence.\\n[34/2016]\\n[Act 33 of 2022 wef 04/11/2022]\\n(3) The Minister may, by rules made under section 7, do any of the\\nfollowing:\\n(a) require\\na\\nspecified\\nclass\\nof\\npersons\\nsubject\\nto\\nsubsection (1) or (1AAA) to furnish the estimate of their\\nchargeable income for any year of assessment under that\\nsubsection using the electronic service;\\n[Act 33 of 2022 wef 04/11/2022]\\n(b) exempt any person or class of persons from subsection (1),\\n(1AAA) or (1A) in respect of one or more years of\\nassessment, subject to such conditions as may be specified\\nin the rules.\\n[34/2016]\\n[Act 33 of 2022 wef 04/11/2022]\\n(4) In this section —\\n“captive insurer” and “marine mutual insurer” have the\\nmeanings given by section 2 of the Insurance Act 1966;\\n“insurer” means any company licensed under the Insurance Act\\n1966 to carry on insurance business in Singapore.\\n[Act 33 of 2022 wef 04/11/2022]\\nComptroller may call for further returns\\n64. The Comptroller may give written notice to any person when\\nand as often as the Comptroller thinks necessary requiring the person\\nto furnish within a reasonable time limited by such notice fuller or\\nfurther returns respecting any matter as to which a return is required\\nby or under this Act.\\nPower to call for returns\\n65.—(1) For the purpose of obtaining full information in respect of\\na person’s income, the Comptroller may give notice to the person\\nIncome Tax Act 1947\\n2020 Ed.\\n994\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nrequiring the person to complete and return to the Comptroller, within\\nthe time specified in the notice, a return specified in the notice.\\n[34/2016]\\n(2) The time specified in the notice must not be less than 30 days\\nafter the date of service of the notice on the person.\\n[34/2016]\\nStatement of bank accounts, assets, etc.\\n65A. The Comptroller may give written notice to any person\\nrequiring the person to furnish within the time limited by such notice,\\nnot being less than 30 days from the date of service of such notice, a\\nstatement containing particulars of —\\n(a) all banking accounts, whether current or deposit, business\\nor private, in the person’s own name or in the name or\\nnames of the person’s wife or wives, or in any other name,\\nin which the person is or has been interested, or on which\\nthe person has or has had power to operate, jointly or\\nsolely, and which are in existence or which have existed at\\nany time during the period stated in the notice;\\n(b) all savings and loan accounts, deposits, building society\\nand co‑operative society accounts, in regard to which the\\nperson has, or has had, any interest or power to operate\\njointly or solely during the periods aforesaid;\\n(c) all assets, other than those referred to in paragraph (a) or\\n(b) which the person and the person’s wife or wives\\npossess, or have possessed, during the period aforesaid;\\n(d) all sources of income not referred to in paragraph (a), (b) or\\n(c) and the income derived therefrom; and\\n(e) all facts bearing upon the person’s liability to income tax to\\nwhich the person is, or has been, liable.\\nPower of Comptroller to obtain information\\n65B.—(1) The Comptroller or any officer authorised by the\\nComptroller in that behalf —\\nIncome Tax Act 1947\\n995\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(a) must at all times have full and free access to all buildings,\\nplaces, documents, computers, computer programs and\\ncomputer software (whether installed in a computer or\\notherwise) for any of the purposes of this Act;\\n(b) must have access to any information, code or technology\\nwhich has the capability of retransforming or unscrambling\\nencrypted data contained or available to such computers\\ninto readable and comprehensive format or text for any of\\nthe purposes of this Act;\\n(c) is entitled —\\n(i) without fee or reward, to inspect, copy or make\\nextracts\\nfrom\\nany\\nsuch\\ndocument,\\ncomputer,\\ncomputer program, computer software or computer\\noutput; and\\n(ii) at any reasonable time to inspect and check the\\noperation of any computer, device, apparatus or\\nmaterial which is or has been in use in connection\\nwith anything to which this section applies;\\n(d) may take possession of any such document, computer,\\ndevice,\\napparatus,\\nmaterial,\\ncomputer\\nprogram\\nor\\ncomputer software where in his or her opinion —\\n(i) the\\ninspection,\\nchecking,\\ncopying\\nthereof\\nor\\nextraction\\ntherefrom\\ncannot\\nreasonably\\nbe\\nperformed without taking possession;\\n(ii) any such items may be interfered with or destroyed\\nunless possession is taken; or\\n(iii) any such items may be required as evidence in\\nproceedings for an offence under this Act or in\\nproceedings for the recovery of tax or penalty, or in\\nproceedings by way of an appeal against an\\nassessment;\\n(e) is entitled to require —\\n(i) the person by whom or on whose behalf the\\ncomputer is or has been used, or any person having\\nIncome Tax Act 1947\\n2020 Ed.\\n996\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\ncharge of, or otherwise concerned with the operation\\nof the computer, device, apparatus or material to\\nprovide the Comptroller or officer with such\\nreasonable assistance as the Comptroller or officer\\nmay require for the purposes of this section; and\\n(ii) any person in possession of decryption information\\nto grant the Comptroller or officer access to such\\ndecryption information necessary to decrypt data\\nrequired for the purpose of this section; and\\n(f) is entitled to require a person in or at the building or place,\\nand who appears to the Comptroller or officer to be\\nacquainted with —\\n(i) any facts or circumstances concerning the person’s\\nor another person’s income, assets or liabilities; or\\n(ii) any facts or circumstances that are relevant to an\\ninvestigation of, or the prosecution of a person for, an\\noffence under this Act,\\n(f) to do either or both of the following:\\n(iii) answer any question to the best of that person’s\\nknowledge, information and belief;\\n(iv) take reasonable steps to produce a document for\\ninspection.\\n[34/2016; 45/2018]\\n(1A) The Comptroller or a specially authorised officer may, for the\\npurpose of investigating an offence under section 37M(3) or (4),\\n37S(3) or (4), 96 or 96A, break open any outer or inner door or\\nwindow, or use any other reasonable means, to gain entry to a\\nbuilding or place.\\n[45/2018]\\n[Act 30 of 2023 wef 30/10/2023]\\n(1B) The Comptroller or a specially authorised officer may only\\nexercise the power under subsection (1A) if —\\n(a) he or she has reason to believe that there is in that building\\nor place any document or thing that may be, or that\\ncontains information that may be —\\nIncome Tax Act 1947\\n997\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(i) relevant to the investigation; or\\n(ii) required as evidence in proceedings for the offence\\nbeing investigated;\\n(b) he or she has reason to believe that the document or thing is\\nlikely to be concealed, removed or destroyed, or the\\ninformation is likely to be deleted, by any person; and\\n(c) he or she is unable to gain entry to that building or place\\nafter stating his or her authority and purpose and\\ndemanding such entry.\\n[45/2018]\\n(1C) To avoid doubt, the Comptroller or a specially authorised\\nofficer who has gained entry to a building or place by exercising his\\nor her power under subsection (1A), may exercise any of his or her\\npowers under subsection (1) after such entry.\\n[45/2018]\\n(1D) The Comptroller or a specially authorised officer may, after\\ngaining entry into a building or place under subsection (1) or (1A) for\\nthe purpose of investigating an offence under this Act, search or cause\\nto be searched a person found in the building or place for any\\ndocument or thing which may be relevant for the investigation, or is\\nrequired as evidence in proceedings for that offence.\\n[45/2018]\\n(1E) A reference in subsection (1D) to an offence under this Act\\nexcludes an offence under section 65C as applied by section 105F or\\nby section 105N, or an offence under section 105M.\\n[45/2018]\\n(1F) A woman must not be searched except by a woman.\\n[45/2018]\\n(2) A person is not obliged under this section to disclose (including\\nthrough the production of a document) —\\n(a) any information which the person is under any statutory\\nobligation (other than sections 128, 128A, 129 and 131 of\\nthe Evidence Act 1893) to observe secrecy; or\\n(b) any information subject to legal privilege.\\n[34/2016]\\nIncome Tax Act 1947\\n2020 Ed.\\n998\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(3) The Comptroller may by notice require any person to give\\norally, in writing, or through the electronic service —\\n(a) any information concerning the person’s or any other\\nperson’s income, assets or liabilities that is relevant for the\\npurposes of this Act; or\\n(b) any information that is relevant for an investigation of, or\\nthe prosecution of a person for, an offence under this Act.\\n[45/2018]\\n(3A) The time for compliance with a notice under subsection (3) is\\n21 days from the date of service of the notice or such other period as\\nthe Comptroller considers appropriate.\\n(3B) The Comptroller may by notice require any person to attend\\npersonally before the Comptroller or an officer authorised by the\\nComptroller, at the place and time specified in the notice, to do one or\\nboth of the following:\\n(a) provide,\\nto\\nthe\\nbest\\nof\\nthat\\nperson’s\\nknowledge,\\ninformation and belief —\\n(i) any information concerning the person’s or any other\\nperson’s income, assets or liabilities that is relevant\\nfor the purposes of this Act; or\\n(ii) any information that is relevant for an investigation\\nof, or the prosecution of a person for, an offence\\nunder this Act;\\n(b) take reasonable steps to produce for inspection any\\ndocument concerning such income, assets or liabilities,\\nor that contains such information.\\n[34/2016; 45/2018]\\n(3C) The power to require a person to provide information or\\nproduce a document under subsection (1)(f) or (3), or when in\\nattendance before the Comptroller or an authorised officer pursuant to\\na notice under subsection (3B), includes the power —\\n(a) to require that person, or any person who is or was an\\nofficer or employee of that person, to provide an\\nexplanation of the information or document;\\nIncome Tax Act 1947\\n999\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) if the information is not provided or the document is not\\nproduced, to require that person to state, to the best of the\\nperson’s knowledge and belief, where it is;\\n(c) if the information is recorded otherwise than in legible\\nform, to require the information to be made available to the\\nComptroller or authorised officer (as the case may be) in\\nlegible form; and\\n(d) in the case of a document, to inspect, copy or make extracts\\nfrom the document without fee or reward, and to take\\npossession of the document if in the Comptroller’s or\\nauthorised officer’s opinion —\\n(i) the\\ninspection,\\ncopying\\nor\\nextraction\\ncannot\\nreasonably be performed without taking possession\\nof the document;\\n(ii) the document may be interfered with or destroyed\\nunless possession of the document is taken; or\\n(iii) the document may be required as evidence in\\nproceedings for an offence under this Act or in\\nproceedings for the recovery of tax or penalty, or in\\nproceedings by way of an appeal against an\\nassessment.\\n[34/2016]\\n(3D) A\\nstatement\\nmade\\nby\\nany\\nperson\\nasked\\nunder\\nsubsection (1)(f), or when in attendance before the Comptroller or\\nan authorised officer pursuant to a notice under subsection (3B),\\nmust —\\n(a) be reduced to writing;\\n(b) be read over to the person;\\n(c) if the person does not understand English, be interpreted\\nfor the person in a language that the person understands;\\nand\\n(d) be signed by the person.\\n[34/2016]\\nIncome Tax Act 1947\\n2020 Ed.\\n1000\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(3E) In this section —\\n“document” includes, in addition to a document in writing —\\n(a) any map, plan, graph or drawing;\\n(b) any photograph;\\n(c) any label, marking or other writing which identifies\\nor describes anything of which it forms a part, or to\\nwhich it is attached by any means;\\n(d) any disc, tape, soundtrack or other device in which\\nsounds or other data (not being visual images) are\\nembodied so as to be capable (with or without the aid\\nof some other equipment) of being reproduced from\\nit;\\n(e) any film (including microfilm), negative, tape, disc\\nor other device in which one or more visual images\\nare embodied so as to be capable (with or without the\\naid of some other equipment) of being reproduced\\nfrom it; and\\n(f) any paper or other material on which there are marks,\\nimpressions, figures, letters, symbols or perforations\\nhaving a meaning for persons qualified to interpret\\nthem;\\n“writing” includes any mode of representing or reproducing\\nwords, figures, drawings or symbols in a visible form.\\n[34/2016]\\n(4) In this section, “computer” and “computer output” have the\\nmeanings given by the Computer Misuse Act 1993.\\n[9/2018]\\nFailure to comply with section 64, 65, 65A or 65B\\n65C.—(1) Any person who, without reasonable excuse —\\n(a) fails, neglects or refuses to comply with any notice or\\nrequirement of the Comptroller or an officer authorised by\\nthe Comptroller under section 64, 65, 65A or 65B, or a\\ndemand for information; or\\nIncome Tax Act 1947\\n1001\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) hinders or obstructs the Comptroller, or any officer\\nauthorised by the Comptroller, in the performance or\\nexecution of his or her duties or of anything which he or\\nshe is empowered or required to do under section 65B,\\nshall be guilty of an offence.\\n[34/2016]\\n(2) Any person guilty of an offence under subsection (1) shall be\\nliable on conviction to a fine not exceeding $10,000 or to\\nimprisonment for a term not exceeding 12 months or to both and,\\nin the case of a continuing offence, to a further fine not exceeding\\n$100 for every day or part of a day during which the offence\\ncontinues after conviction.\\n[34/2016]\\n(3) The\\nComptroller\\nmay\\ncompound\\nany\\noffence\\nunder\\nsubsection (1).\\n(4) The generality of the term “reasonable excuse” in subsection (1)\\nis not affected by section 65B(2).\\n(5) Except as provided under section 65B(2), it is not a defence to a\\ncharge under subsection (1) for a failure to provide any information or\\nproduce any document sought by a notice mentioned in section 65B,\\nthat the person is under a duty of secrecy in respect of that\\ninformation or the contents of that document (called in this section a\\ndisplaced duty of secrecy).\\n[34/2016]\\n(6) A person who in good faith complies with a notice referred to in\\nsection 65B is not treated as being in breach of a displaced duty of\\nsecrecy.\\n(7) No civil or criminal action for a breach of a displaced duty of\\nsecrecy, other than a criminal action for an offence under\\nsubsection\\n(8),\\nshall\\nlie\\nagainst\\nthe\\nperson\\nreferred\\nto\\nin\\nsubsection (6) —\\n(a) for producing any document or providing any information\\nif the person had done so in good faith in compliance with\\nthe notice under section 65B; or\\nIncome Tax Act 1947\\n2020 Ed.\\n1002\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) for doing or omitting to do any act if the person had done or\\nomitted to do the act in good faith and as a result of\\ncomplying with such a notice.\\n(7A) In subsections (5), (6) and (7) —\\n(a) a reference to a notice under section 65B to provide\\ninformation includes a reference to a requirement to\\nprovide information under section 65B(1)(f) and a\\ndemand for information; and\\n(b) a reference to a notice under section 65B to produce a\\ndocument includes a reference to a requirement to produce\\na document under section 65B(1)(f).\\n[34/2016]\\n(8) Any person who, in purported compliance with a notice or\\nrequirement of the Comptroller or an officer authorised by the\\nComptroller under section 64, 65, 65A or 65B, or with a demand for\\ninformation,\\nproduces\\nany\\ndocument\\nwhich\\ncontains\\nany\\ninformation, or provides any information, known to the person to\\nbe false or misleading in a material particular —\\n(a) without indicating to the Comptroller or the officer that the\\ninformation is false or misleading and the part that is false\\nor misleading; and\\n(b) without providing correct information to the Comptroller\\nor the officer if the person is in possession of, or can\\nreasonably acquire, the correct information,\\nshall be guilty of an offence and shall be liable on conviction to a fine\\nnot exceeding $10,000 or to imprisonment for a term not exceeding\\n2 years or to both.\\n[34/2016]\\n(9) A person shall not be convicted of an offence under this section\\nfor failing or neglecting to comply with a notice issued by the\\nComptroller under section 64, 65, 65A or 65B unless the notice was\\nserved on the person personally or by registered post.\\n[19/2013]\\n(10) In this section, “demand for information” means a demand by\\nthe Comptroller or an officer authorised by the Comptroller to answer\\nIncome Tax Act 1947\\n1003\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\na question when in attendance before the Comptroller or the officer\\npursuant to a notice under section 65B(3B).\\n[34/2016]\\nSection 65B notice applies despite duty of secrecy under\\nBanking Act 1970 or Trust Companies Act 2005\\n65D.—(1) This section applies where —\\n(a) the\\nComptroller\\nrequires\\nany\\ninformation\\nfor\\nthe\\nadministration of this Act, other than for an investigation\\nor a prosecution for an offence alleged or suspected to have\\nbeen committed under this Act;\\n(b) the information is protected from unauthorised disclosure\\nunder either of the following laws (called in this section the\\nrelevant laws):\\n(i) section 47 of the Banking Act 1970 including that\\nsection as applied by section 55ZI(1) of that Act;\\n(ii) section 49 of the Trust Companies Act 2005; and\\n(c) a person is given a notice, or is required, under section 65B\\nto provide the information or to produce a document\\ncontaining the information.\\n[34/2016; 1/2020]\\n(2) Despite anything in section 65B(2)(a), a person issued with a\\nnotice or requirement mentioned in subsection (1)(c) is not excused\\nfrom providing the information or document by reason only that the\\nperson is under a statutory obligation to observe secrecy under a\\nrelevant law, and that notice has effect despite the relevant law.\\n[34/2016]\\n(3) A person who in good faith complies with a notice or\\nrequirement mentioned in subsection (1)(c) is not treated as being\\nin breach of the relevant law.\\n[34/2016]\\n(4) No action for a breach of the relevant law shall lie against the\\nperson mentioned in subsection (3) —\\n(a) for producing any document or providing any information\\nif the person had done so in good faith in compliance with a\\nnotice or requirement mentioned in subsection (1)(c); or\\nIncome Tax Act 1947\\n2020 Ed.\\n1004\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) for doing or omitting to do any act if the person had done or\\nomitted to do the act in good faith and as a result of\\ncomplying with such a notice or requirement.\\n[34/2016]\\n(5) In this section, a notice under section 65B to provide\\ninformation includes a demand for information as defined in\\nsection 65C(10).\\n[34/2016]\\nSection 65B notice may be subject to confidentiality duty\\n65E.—(1) Where the Comptroller issues a notice to any person\\nunder section 65B and states that the notice must be kept confidential,\\nthe person (including an officer, employee or agent of the person)\\nmust not disclose any information relating to the notice to any other\\nperson.\\n(2) Subsection (1) does not apply to the disclosure of any\\ninformation relating to the notice to an advocate and solicitor for\\nthe purpose of seeking legal advice on the notice, if (and only if) the\\nperson who discloses the information informs the advocate and\\nsolicitor of the Comptroller’s requirement that the notice be kept\\nconfidential.\\n(3) The advocate and solicitor to whom information is disclosed in\\naccordance with subsection (2) is subject to subsection (1) as if he or\\nshe is the person given the notice under subsection (1).\\n(4) Any person who contravenes subsection (1) shall be guilty of an\\noffence and shall be liable on conviction to a fine not exceeding\\n$1,000 and in default of payment to imprisonment for a term not\\nexceeding 6 months.\\n(5) The\\nComptroller\\nmay\\ncompound\\nany\\noffence\\nunder\\nsubsection (4).\\n(6) A person who in good faith complies with subsection (1) is not\\ntreated as being in breach of any duty to disclose the information to\\nany person, whether imposed by written law, rule of law, any contract\\nor any rule of professional conduct; and no criminal or civil action for\\na breach of such duty shall lie against the firstmentioned person.\\nIncome Tax Act 1947\\n1005\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nArrest of person\\n65F.—(1) The Comptroller or a specially authorised officer (called\\nin this section and sections 65G, 65H and 65I an arresting officer)\\nmay arrest without warrant any person whom the arresting officer\\nreasonably believes —\\n(a) has committed an offence under section 37M(3) or (4),\\n37S(3) or (4), 96 or 96A; or\\n[Act 30 of 2023 wef 30/10/2023]\\n(b) is doing any of the following:\\n(i) destroying or attempting to destroy any document or\\nthing with a view to hindering or obstructing the\\nComptroller,\\nor\\nan\\nofficer\\nauthorised\\nunder\\nsection 4(1) to investigate offences under this Act,\\nin the exercise of his or her powers;\\n(ii) deleting or attempting to delete any information\\ncontained in any thing with a view to hindering or\\nobstructing the Comptroller or an officer mentioned\\nin sub‑paragraph (i), in the exercise of his or her\\npowers;\\n(iii) resisting or attempting to resist, without reasonable\\nexcuse, the taking of any document or thing by the\\nComptroller\\nor\\nan\\nofficer\\nmentioned\\nin\\nsub‑paragraph (i),\\n(b) being any document, thing or information that may be\\nrelevant to an investigation of an offence under this Act, or\\nthat may be required as evidence in proceedings for an\\noffence under this Act.\\n[45/2018]\\n(2) A reference in subsection (1)(b) to an offence under this Act\\nexcludes an offence under section 65C as applied by section 105F or\\nby section 105N, and an offence under section 105M.\\n[45/2018]\\n(3) An arresting officer may search or cause to be searched an\\narrested person.\\n[45/2018]\\nIncome Tax Act 1947\\n2020 Ed.\\n1006\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(4) A woman must not be searched except by a woman.\\n[45/2018]\\n(5) An arresting officer making an arrest must, without unnecessary\\ndelay and subject to subsection (8) and the rules mentioned in\\nsubsection (10), take or send an arrested person before a Magistrate’s\\nCourt.\\n[45/2018]\\n(6) An arresting officer must not detain in custody an arrested\\nperson for a longer period than under the circumstances of the case is\\nreasonable.\\n[45/2018]\\n(7) Such period must not exceed 48 hours, excluding the time\\nnecessary for the journey from the place of arrest to the Magistrate’s\\nCourt.\\n[45/2018]\\n(8) An arrested person must not be released except —\\n(a) on the person’s own bond;\\n(b) on bail by a Magistrate or an arresting officer; or\\n(c) under the special order in writing by a Magistrate or an\\narresting officer.\\n[45/2018]\\n(9) If any arrested person escapes, he or she may, at any time\\nafterwards, be arrested in accordance with this section and\\nsection 65G.\\n[45/2018]\\n(10) The Minister may make rules under section 7 to provide for —\\n(a) any matter relating to the release of any person on any\\nbond, bail or special order under subsection (8); and\\n(b) the arrest of any person with or without warrant by an\\narresting officer for a breach of the conditions of a bond,\\nbail or special order or other specified circumstances.\\n[45/2018]\\nIncome Tax Act 1947\\n1007\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nNo unnecessary restraint\\n65G.—(1) In making an arrest, an arresting officer must touch or\\nconfine the body of a person to be arrested unless the person submits\\nto arrest by word or action.\\n[45/2018]\\n(2) If the person forcibly resists, or tries to evade arrest, the\\narresting officer may use all reasonable means necessary to make the\\narrest.\\n[45/2018]\\n(3) An arrested person must not be subject to more restraint than is\\nnecessary to prevent the person’s escape.\\n[45/2018]\\n(4) An arresting officer may use handcuffs or any similar means of\\nrestraint on an arrested person to prevent the person from —\\n(a) inflicting any bodily injury to himself or herself, or others;\\n(b) damaging any property;\\n(c) creating any disturbance; or\\n(d) escaping from custody.\\n[45/2018]\\n(5) The handcuffs or means of restraint must not be used for the\\npurpose of punishment.\\n[45/2018]\\nArresting officer to be armed\\n65H. An arresting officer may be provided with such batons and\\naccoutrements as may be necessary for the effective discharge of his\\nor her duties under sections 65F and 65G.\\n[45/2018]\\nSearch of place entered by person sought to be arrested\\n65I.—(1) If an arresting officer has reason to believe that a person\\nto be arrested under section 65F(1) is inside any building or place and\\ndemands entry to that building or place, any person who resides in or\\nis in charge of the building or place must allow the arresting officer\\nfree entry and provide all reasonable facilities for a search in it.\\n[45/2018]\\nIncome Tax Act 1947\\n2020 Ed.\\n1008\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(2) If entry to that building or place cannot be gained under\\nsubsection (1), it is lawful for the arresting officer to enter and search\\nthe building or place.\\n[45/2018]\\n(3) After stating his or her authority and purpose and demanding\\nentry to a building or place, the arresting officer who is unable to\\nobtain entry may, for the purposes of subsection (2), break open any\\nouter or inner door or window or use any other reasonable means to\\ngain such entry.\\n[45/2018]\\nArrested person may be orally examined\\n65J.—(1) The\\nComptroller\\nor\\nan\\nofficer\\nauthorised\\nunder\\nsection 4(1) to investigate offences under this Act (called in this\\nsection an investigation officer), may examine orally a person\\narrested under section 65F(1).\\n[45/2018]\\n(2) A person examined by an investigation officer need not state\\nanything which —\\n(a) the person is under any statutory obligation (other than\\nsections 128, 128A, 129 and 131 of the Evidence\\nAct 1893) to observe secrecy; or\\n(b) is subject to legal privilege.\\n[45/2018]\\n(3) A statement made by an arrested person must —\\n(a) be reduced to writing;\\n(b) be read over to the person;\\n(c) if the person does not understand English, be interpreted\\nfor the person in a language that the person understands;\\nand\\n(d) be signed by the person.\\n[45/2018]\\n(4) Any person who, without reasonable excuse, fails or refuses to\\nanswer any question when examined under subsection (1) shall be\\nguilty of an offence and shall be liable on conviction to a fine not\\nIncome Tax Act 1947\\n1009\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nexceeding $10,000 or to imprisonment for a term not exceeding\\n12 months or to both.\\n[45/2018]\\n(5) The\\nComptroller\\nmay\\ncompound\\nany\\noffence\\nunder\\nsubsection (4).\\n[45/2018]\\n(6) The generality of the term “reasonable excuse” in subsection (4)\\nis not affected by subsection (2).\\n[45/2018]\\n(7) Except as provided under subsection (2), it is not a defence to a\\ncharge under subsection (4) for a failure to provide any information\\ndemanded by an investigation officer that the person is under a duty\\nof secrecy in respect of that information (called in this section a\\ndisplaced duty of secrecy).\\n[45/2018]\\n(8) A person who in good faith provides information demanded by\\nan investigation officer under subsection (1) is not treated as being in\\nbreach of a displaced duty of secrecy.\\n[45/2018]\\n(9) No civil or criminal action for a breach of a displaced duty of\\nsecrecy, other than a criminal action for an offence under\\nsubsection (10), lies against the person mentioned in subsection (8)\\nfor providing any information if the person had done so in good faith\\nin compliance with a demand of an investigation officer under\\nsubsection (1).\\n[45/2018]\\n(10) Any person who, in purported compliance with a demand of an\\ninvestigation officer under subsection (1), provides any information\\nknown to the person to be false or misleading in a material\\nparticular —\\n(a) without indicating to the investigation officer that the\\ninformation is false or misleading and the part that is false\\nor misleading; and\\n(b) without providing correct information to the investigation\\nofficer if the person is in possession of, or can reasonably\\nacquire, the correct information,\\nIncome Tax Act 1947\\n2020 Ed.\\n1010\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nshall be guilty of an offence and shall be liable on conviction to a fine\\nnot exceeding $10,000 or to imprisonment for a term not exceeding\\n2 years or to both.\\n[45/2018]\\nDisposal of item furnished or seized\\n65K.—(1) Any item furnished to or seized by the Comptroller or an\\nofficer authorised by the Comptroller under section 65A or 65B\\nmust —\\n(a) where the item is produced in any criminal proceedings, be\\ndealt with in accordance with section 364 of the Criminal\\nProcedure Code 2010; or\\n(b) in any other case, be dealt with in accordance with\\nsubsections (2), (3) and (4).\\n[45/2018]\\n(2) The Comptroller or an officer authorised by the Comptroller\\nmust serve a notice on the owner of the item instructing the owner to\\ntake custody of it within the period specified in the notice, which must\\nbe at least 5 days after the date of service of the notice.\\n[45/2018]\\n(3) If the owner fails to take custody of the item within the period\\nspecified in the notice, or where the owner is unknown or cannot be\\nfound, then —\\n(a) if the item is a document (other than one specified in\\nparagraph (d) or (e) of the definition of “document” in\\nsection 65B(3E)), the item may be disposed of in such\\nmanner as the Comptroller directs; or\\n(b) if the item is anything not specified in paragraph (a), the\\nComptroller must make a report of this to a Magistrate.\\n[45/2018]\\n(4) The\\nMagistrate\\nto\\nwhom\\na\\nreport\\nis\\nmade\\nunder\\nsubsection (3)(b) may order the item to be forfeited or disposed of\\nin such manner as the Magistrate thinks fit.\\n[45/2018]\\n(5) This section does not affect any right to retain or dispose of any\\nitem which may exist in law apart from this section.\\n[45/2018]\\nIncome Tax Act 1947\\n1011\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nReturns to be deemed to be furnished by due authority\\n66.—(1) A return, statement or form purporting to be furnished\\nunder this Act by or on behalf of any person is for all purposes\\ndeemed to have been furnished by that person or by that person’s\\nauthority (as the case may be) unless the contrary is proved.\\n(2) Any person signing any such return, statement or form is\\ndeemed to be cognizant of all matters therein.\\nKeeping of books of account and giving of receipts\\n67.—(1) Subject to subsection (3), every person carrying on or\\nexercising any trade, business, profession or vocation —\\n(a) must keep and retain in safe custody sufficient records for a\\nperiod of 5 years from the year of assessment to which any\\nincome relates to enable the person’s income and allowable\\ndeductions under this Act to be readily ascertained by the\\nComptroller or any officer authorised in that behalf by the\\nComptroller; and\\n(b) must, if the gross receipts from such trade, business,\\nprofession or vocation in the preceding calendar year\\nexceeded $18,000 from the sale of goods, or $12,000 from\\nthe performance of services, issue a printed receipt serially\\nnumbered for every sum received in respect of goods sold\\nor services performed in the course of or in connection\\nwith such trade, business, profession or vocation, and must\\nretain a duplicate of every such receipt.\\n(2) Where a machine is used for recording sales, a receipt may be\\ndispensed with if the Comptroller is satisfied that —\\n(a) such machine automatically records all sales made; and\\n(b) the total of all sales made in each day is transferred at the\\nend of the day to a record of sales.\\n(3) The Comptroller may by written notice to any person carrying\\non or exercising any trade, business, profession or vocation, or by a\\nnotice in the Gazette in respect of any class or description of any such\\nperson, prescribe —\\nIncome Tax Act 1947\\n2020 Ed.\\n1012\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(a) the form of the records to be kept under subsection (1)(a),\\nand the manner in which such records must be kept and\\nretained; and\\n(b) the form of the receipts to be issued and the duplicates to be\\nretained under subsection (1)(b), and the manner in which\\nsuch receipts must be issued and such duplicates must be\\nretained,\\nand every such person is bound to comply with such notice.\\n(4) The Comptroller may waive all or any of the provisions of\\nsubsection (1) in respect of any person or records or any class or\\ndescription of persons or records.\\n(5) In this section, “records” includes —\\n(a) books of account recording receipts or payments or income\\nor expenditure;\\n(b) invoices, vouchers, receipts, and such other documents as\\nin the Comptroller’s opinion are necessary to verify the\\nentries in any books of account; and\\n(c) any records relating to any trade, business, profession or\\nvocation.\\nOfficial information and secrecy, and returns by employer\\n68.—(1) The\\nComptroller\\nmay\\nrequire\\nany\\nofficer\\nin\\nthe\\nemployment of the Government or of any public authority or body\\ncorporate constituted by statute to supply such particulars as may be\\nrequired for the purposes of this Act and which may be in the\\npossession of the officer.\\n(1A) No such officer is by virtue of this section obliged to disclose\\nany particulars as to which he or she is under any statutory obligation\\nto observe secrecy.\\n(2) The Comptroller may, by notice in the Gazette, require every\\nemployer to prepare and deliver to the Comptroller or any person\\nspecified in the notice, for any year specified in the notice and within\\nthe time limited thereby, a return in such form as the Comptroller may\\ndetermine containing —\\nIncome Tax Act 1947\\n1013\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(a) the names and places of residence of such classes of\\npersons employed by the employer as may be specified in\\nthe notice; and\\n(b) the full amount of remuneration, whether in cash or\\notherwise, paid or payable to those persons in respect of\\nsuch employment,\\nand every employer is bound to comply with any such notice within\\nthe time for compliance limited thereby, or such extended time as the\\nComptroller may allow.\\n[Act 33 of 2022 wef 04/11/2022]\\n(2A) It is not necessary to deliver nil returns under subsection (2).\\n(2B) Where an employer has granted an individual, other than a\\ndirector to whom subsection (2C) applies, any right or benefit to\\nacquire shares in any company incorporated in Singapore, the\\nemployer must submit a return in the form and manner specified in\\nsubsection (2) including any gain or profit derived by the individual\\nas computed under section 10(6), even if the individual has ceased to\\nbe employed by the employer at the time the gain or profit is derived.\\n(2C) Where an employer, being a company, has granted a director\\nof the company who is not resident in Singapore any right or benefit\\nto acquire shares in any company incorporated in Singapore, the\\nemployer must submit a return, in such form as the Comptroller may\\ndetermine, of any gain or profit derived by the non‑resident director\\nwhen the right or benefit is exercised, assigned, released or acquired\\nas computed under section 10(6) within 30 days of such exercise,\\nassignment, release or acquisition (as the case may be), even if the\\nnon‑resident director may have ceased to be employed by the\\ncompany at the time the gain or profit is derived.\\n(3) Where the employer is a company or a body of persons, the\\nmanager or principal officer is deemed to be the employer for the\\npurposes of this section, and any director of a company, or person\\nengaged in the management of a company, is deemed to be a person\\nemployed.\\n(4) Where an employer commences to employ in Singapore an\\nindividual who is or is likely to be chargeable to tax under\\nsection 10(1)(b), the employer must give written notice thereof to\\nIncome Tax Act 1947\\n2020 Ed.\\n1014\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthe Comptroller not later than 3 months after the date of\\ncommencement of such employment, stating the full name and\\naddress of the individual, the date of commencement and the terms of\\nemployment.\\n(5) Where an employer ceases or is about to cease to employ in\\nSingapore an individual who is not a citizen of Singapore and who is\\nor is likely to be chargeable to tax under section 10(1)(b), the\\nemployer must give written notice thereof to the Comptroller not later\\nthan one month before such individual ceases to be employed in\\nSingapore, stating the name and address of the individual and the\\nexpected date of cessation.\\n(6) The employer of any individual who is chargeable to tax under\\nsection 10(1)(b) and who is to the knowledge of such employer about\\nto leave or intending to leave Singapore for any period exceeding\\n3 months, must give written notice to the Comptroller of the expected\\ndate of departure of such individual. Such notice must be given not\\nlater than one month before the expected date of departure.\\n(6A) Subsection (6) does not apply in the case of an individual who\\nis required in the course of his or her employment to leave Singapore\\nat frequent intervals or who is a citizen of Singapore.\\n(7) Where an employer has in the employer’s possession any\\nmoneys whatsoever which are or may be payable to or for the benefit\\nof an employee who has ceased or is about to cease to be employed by\\nthe employer in Singapore, the employer must not, without the\\nComptroller’s permission, pay any part of such moneys to or for the\\nbenefit of such employee until the expiry of 30 days after the receipt\\nby the Comptroller of such notice as is required to be given under\\nsubsection (5).\\n(8) Where any person ceases or is about to cease being a partner,\\nand such person is likely to be chargeable to tax in Singapore, the\\npartners present in Singapore must, unless it is impracticable to do so,\\ngive one month’s notice in writing to the Comptroller before such\\nperson ceases to be a partner, stating the name and address of such\\nperson and the expected date of such person ceasing to be a partner.\\n(9) Where any partner is leaving or intending to leave Singapore for\\nany period exceeding 3 months and is likely to be chargeable to tax in\\nIncome Tax Act 1947\\n1015\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nSingapore, the partners present in Singapore must, unless it is\\nimpracticable to do so, give one month’s notice in writing to the\\nComptroller of the expected date of departure of such partner.\\n(10) Subsection (9) does not apply in the case of a partner who is\\nrequired in the course of the partner’s business to leave Singapore at\\nfrequent intervals.\\n(11) Where any person who has ceased or is about to cease being a\\npartner in Singapore has moneys due or payable to that person from\\nthe partnership, the partners present in Singapore must not, without\\nthe Comptroller’s written permission, pay such moneys or any part\\nthereof to that person.\\n(12) The Comptroller may under subsection (5), (6), (8) or (9), in\\nany particular case or class of cases —\\n(a) accept such shorter period of notice as the Comptroller\\nmay consider reasonable;\\n(b) accept the notice mentioned in that subsection within such\\ntime after the occurrence of the event mentioned in that\\nsubsection as the Comptroller may consider reasonable; or\\n(c) waive the requirement for a notice under that subsection\\nsubject to conditions.\\n[34/2016]\\n(13) Subsection (5), (6), (8) or (9) (as the case may be) applies to a\\ncase to which subsection (12)(a) applies as if the reference to the\\nperiod of one month is a reference to the shorter period.\\n[34/2016]\\n(14) In a case where subsection (12)(b) applies, the employer or\\npartners (as the case may be) need not comply with subsection (5),\\n(6), (8) or (9) (as the case may be) but must, within the time\\nmentioned in subsection (12)(b), give notice to the Comptroller of —\\n(a) in the case of subsection (5), the name and address of the\\nindividual and the actual date of cessation of the\\nindividual’s employment;\\n(b) in the case of subsection (6), the actual date of departure of\\nthe individual;\\nIncome Tax Act 1947\\n2020 Ed.\\n1016\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) in the case of subsection (8), the name and address of the\\nperson and the actual date of the person’s cessation as a\\npartner; or\\n(d) in the case of subsection (9), the actual date of departure of\\nthe partner.\\n[34/2016]\\nDuty to collect and retain information of certain persons, etc.\\n68A.—(1) The Minister may make rules under section 7 to\\nprescribe a class of persons to whom this section applies.\\n(2) The Comptroller may —\\n(a) by written notice require any person (X) that falls within a\\nprescribed class of persons to collect, keep and retain in\\nsafe custody for a specified period not exceeding 5 years,\\nspecified\\nidentification\\ninformation\\nand\\nincome\\ninformation of any person or each person within a class\\n(Y) (including information of any outgoings and expenses\\nincurred by Y) that entered into an agreement or\\narrangement of a specified description with X for Y to\\ncarry on any trade, business, profession or vocation for\\nwhich Y derives income chargeable to tax under this Act;\\nand\\n(b) by written notice to X, require X to provide the Comptroller\\nor any person specified in the written notice, any\\ninformation retained under paragraph (a) in the form and\\nmanner and within the time specified in the notice, or any\\nextension of such time by the Comptroller in any particular\\ncase.\\n(3) Any person who, without reasonable excuse, fails to comply\\nwith any requirement under subsection (2)(a) or (b) shall be guilty of\\nan offence.\\n(4) In this section, “person” includes a partnership, and the\\nreference in subsection (2)(a) to income of Y that is chargeable to\\ntax is, in a case where Y is a partnership, to the income of the partners\\nof Y.\\n[Act 30 of 2023 wef 30/10/2023]\\nIncome Tax Act 1947\\n1017\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nLists to be prepared by representative or agent\\n69. Every person (X) who, in whatever capacity, is in receipt of any\\nmoney or value being income arising from any of the sources\\nmentioned in this Act of or belonging to any other person (Y) who is\\nchargeable in respect thereof, or who would be so chargeable if Y\\nwere resident in Singapore and not an incapacitated person, must\\nwhenever required to do so by any notice from the Comptroller,\\nprepare and deliver within the period mentioned in the notice a return\\nsigned by X, containing —\\n(a) a true and correct statement of all such income; and\\n(b) the name and address of every person to whom the income\\nbelongs.\\nOccupiers to furnish return of rent payable\\n70. The Comptroller may give written notice to any person (X) who\\nis the occupier of any land or premises requiring X to furnish within\\nthe time limited by such notice, not being less than 30 days from the\\ndate of service of such notice, a return containing —\\n(a) the name and address of the owner of such land or premises\\nor the name and address of the person to whom X pays rent\\ntherefor; and\\n(b) a true and correct statement of the rent payable and any\\nother consideration passing in respect of such occupation.\\nReturn to be made by partnership\\n71.—(1) Where a trade, business, profession or vocation is carried\\non by 2 or more persons jointly, the precedent partner, that is to say,\\nthe partner who, of the partners personally present in Singapore —\\n(a) is first named in the agreement of partnership;\\n(b) if there is no agreement, is specified by name or initial\\nsingly or with precedence to the other partners in the usual\\nname of the firm; or\\n(c) is the precedent acting partner if the partner named with\\nprecedence is not an acting partner,\\nIncome Tax Act 1947\\n2020 Ed.\\n1018\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nmust, when required by the Comptroller by written notice or by notice\\nin the Gazette under section 62(1), make and deliver a return of the\\nincome of the partnership for any year, such income being ascertained\\nin accordance with the provisions of this Act, and declare therein the\\nnames and addresses of the other partners in the firm together with the\\namount of the share of the income to which each partner was entitled\\nfor that year.\\n(2) Where —\\n(a) in the case of a limited partnership, no general partner is\\npersonally present in Singapore; or\\n(b) in the case of all other types of partnerships, no partner is\\npersonally present in Singapore,\\nthe return must be made and delivered by the attorney, agent, manager\\nor factor of the firm in Singapore.\\n(3) If a return in relation to the partnership for any year of\\nassessment has not been made, the person required to make the return\\nunder subsection (1) or (2) (as the case may be) must, within 3 months\\nafter the end of the accounting period relating to that year of\\nassessment, or such extended time as the Comptroller may allow,\\nfurnish to the Comptroller an estimate of the income from all sources\\nof the partnership, and the names and identification numbers of all the\\npartners together with the amount of the share of the income to which\\neach partner was entitled for that year.\\n[Act 33 of 2022 wef 04/11/2022]\\n(3A) The Minister may, by rules made under section 7, exempt any\\nperson or class of persons from subsection (3), subject to such\\nconditions as may be specified in the rules.\\n[34/2016]\\n(4) In this section, “general partner” has the meaning given by the\\nLimited Partnerships Act 2008.\\n71A. [Repealed by Act 49 of 2004]\\nIncome Tax Act 1947\\n1019\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nPART 17\\nASSESSMENTS AND OBJECTIONS\\nComptroller to make assessments\\n72.—(1) The Comptroller must proceed to assess every person\\nchargeable with tax as soon as may be after the expiry of the time\\nallowed to such person for the delivery of the return provided for in\\nsection 62 or, if the person is exempted from the liability to deliver a\\nreturn under section 62(2), after the expiry of the time that would\\nhave been allowed to the person for the delivery of the return if the\\nperson had not been so exempted.\\n(2) Where a person has delivered a return, the Comptroller may —\\n(a) accept the return and make an assessment accordingly; or\\n(b) refuse to accept the return and, to the best of the\\nComptroller’s judgment, determine the amount of the\\nchargeable income of the person and make an assessment\\naccordingly.\\n(3) Where a person has not delivered a return and the Comptroller is\\nof the opinion that such person is liable to pay tax, the Comptroller\\nmay, according to the best of the Comptroller’s judgment, determine\\nthe amount of the chargeable income of such person and make an\\nassessment accordingly, but such assessment does not affect any\\nliability otherwise incurred by such person by reason of the person’s\\nfailure or neglect to deliver a return.\\nAdvance assessments\\n73.—(1) Despite section 72, where —\\n(a) in any year of assessment a person ceases to carry on a\\ntrade, business, profession, vocation or employment; or\\n(b) the Comptroller is of the opinion that any person\\npossessing\\na\\nsource\\nof\\nincome\\nis\\nabout\\nto\\nleave\\nSingapore and is likely to cease to possess that source in\\nthe year of assessment in which the person leaves\\nSingapore or in the following 2 years,\\nIncome Tax Act 1947\\n2020 Ed.\\n1020\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthe Comptroller may make such assessment or additional assessments\\nas may be necessary to bring to charge the full amount of the income\\nfrom all sources derived or to be derived by such person up to the year\\nin which the source of income ceases or is likely to cease.\\n(2) Where the income of a person is ascertained under section 27,\\nthe Comptroller may make an assessment in respect of any income of\\nsuch person within the year in which the income is deemed to accrue.\\n(2A) Despite any other provisions of this Act, the Comptroller may\\nmake an assessment on an individual to whom section 10(7B) or (7C)\\napplies within the year in which the income accrues or is deemed to\\naccrue to the individual, as the case may be.\\n(2B) Despite any other provisions of this Act, where income\\naccrues under section 10(6) to a director of a company who is not\\nresident in Singapore, the Comptroller may make an assessment in\\nrespect of that income within the year in which the income accrues to\\nthe director.\\n(3) The Comptroller may, if he or she thinks fit, at any time during\\nany year make an assessment in respect of the income derived by any\\nperson carrying on or exercising any trade, business, profession or\\nvocation up to that year.\\n(3A) In\\nmaking\\nan\\nassessment\\nunder\\nsubsection\\n(3),\\nthe\\nComptroller may have regard to the estimate of chargeable income\\nfurnished under section 63 or he or she may make an assessment\\naccording to the best of his or her judgment where such estimate of\\nchargeable income has not been furnished or has been rejected by him\\nor her.\\n(4) Where the Comptroller has exercised his or her powers to make\\nan advance assessment under this section, such assessment must be\\nmade on the assumption that —\\n(a) the provisions of this Act in force during the year of\\nassessment in which such assessment is made will continue\\nin force for the year of assessment for which such\\nassessment is made; and\\n(b) if such person so assessed is an individual, the personal\\ncircumstances of that person will be the same in the year of\\nIncome Tax Act 1947\\n1021\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nassessment as they were when such assessment is in fact\\nmade.\\n(5) If it appears to the Comptroller that by reason of such\\nassumption an advance assessment so made has become less\\nfavourable to that person than it would have been if made under\\nsection 35(1), the Comptroller must amend such assessment as to the\\nComptroller seems reasonable.\\n(6) This section does not affect the Comptroller’s right to make any\\nadditional assessment due to any change of circumstances and\\nwithout prejudice to the generality of section 74.\\nAdditional assessments\\n74.—(1) Where it appears to the Comptroller that any person liable\\nto tax has not been assessed or has been assessed at a less amount than\\nthat which ought to have been charged, the Comptroller may, within\\nthe year of assessment or within 6 years (if the year of assessment is\\n2007 or a preceding year of assessment) or 4 years (if the year of\\nassessment is 2008 or a subsequent year of assessment) after the\\nexpiry of that year of assessment, assess that person at such amount or\\nadditional amount as according to the Comptroller’s judgment ought\\nto have been charged.\\n(2) Despite subsection (1), where, in the Comptroller’s opinion, any\\nform of fraud or wilful default has been committed by or on behalf of\\nany person in connection with or in relation to tax, the Comptroller\\nmay, for the purpose of making good any loss of tax attributable to\\nfraud or wilful default, assess that person at any time.\\n(2A) Despite subsection (1), an assessment under that subsection\\nmay be made at any time if it is carried out pursuant to an agreement\\nwith an authority of a country outside Singapore, that is made in\\naccordance with the procedure under an avoidance of double taxation\\narrangement with the government of that country, for resolving\\ndifficulties or doubts arising out of the interpretation or application of\\nthat arrangement (commonly called a mutual agreement procedure).\\n[39/2017; 27/2021]\\nIncome Tax Act 1947\\n2020 Ed.\\n1022\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(2B) Subsection (2A) applies to —\\n(a) an agreement (other than one mentioned in paragraph (b))\\nentered into on or after 26 October 2017; and\\n(b) an agreement on the appropriate criteria to be used to\\nascertain the transfer pricing of a person’s transactions\\nwith the person’s related parties over a specified period\\n(commonly called an advance pricing arrangement),\\nentered into on or after 16 November 2021.\\n[27/2021]\\n(3) The provisions of this Act as to notice of assessment, appeal and\\nother proceedings under this Act apply to any assessment or\\nadditional assessment made under subsection (1) or (2) and to tax\\ncharged thereunder.\\n(4) This section also applies, with the necessary modifications, to\\nany assessment made under subsection (1) or (2) which results in any\\nunabsorbed allowances or losses.\\n(5) To avoid doubt, the Comptroller may also make an assessment\\nunder this section on a person in a case where —\\n(a) the Comptroller made an advance assessment on the\\nperson for a year of assessment; and\\n(b) because of a subsequent amendment to any written law that\\napplies retroactively to that year of assessment, the person\\nbecomes liable to a higher amount of tax.\\n[39/2017]\\n(6) In this section, “avoidance of double taxation agreement”\\nmeans an arrangement having effect under section 49.\\n[39/2017]\\n[Act 33 of 2022 wef 04/11/2022]\\nRevised assessments as relief for late GST registration\\n74A. Where —\\n(a) any person liable to tax, being required to be registered\\nunder the Goods and Services Tax Act 1993, has failed to\\ndo so, and has been so registered on or after 1 December\\n2005; and\\nIncome Tax Act 1947\\n1023\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) the person’s income chargeable to tax for any year of\\nassessment relating to a basis period for which the person\\nought to have been so registered includes an amount in\\nrespect of output tax paid or payable under the Goods and\\nServices Tax Act 1993,\\nthe Comptroller must according to the best of the Comptroller’s\\njudgment give, by way of revision of any assessment made on the\\nperson for that year of assessment, relief in respect of the amount so\\npaid or payable.\\nWaiver of small assessments\\n75. Where it appears to the Comptroller that the amount of any tax\\nor additional tax to which any person is liable does not exceed $15 or\\nsuch other amount as the Minister may by order prescribe, the\\nComptroller may waive the assessment of such tax.\\nService of notices of assessment and revision of assessment\\n76.—(1) The Comptroller must cause each person assessed to tax to\\nbe served, in accordance with section 8(1), with —\\n(a) where tax is payable, a notice stating the amount of the\\nperson’s chargeable income together with the amount of\\ntax payable and the place at which such payment should be\\nmade; or\\n(b) where no tax is payable, a notice to that effect,\\nand in either case the Comptroller must inform the person assessed to\\ntax of the person’s rights under subsections (2) and (3) and (if\\napplicable) the person’s duty under subsection (8).\\n(2) If any person disputes the assessment, the person may apply to\\nthe Comptroller, by written notice of objection, to review and to\\nrevise the assessment made upon the person.\\n(2A) If the objection is made to any assessment, being one which —\\n(a) is made on or after 20 December 2011; and\\n(b) amends a previous assessment in any particular,\\nIncome Tax Act 1947\\n2020 Ed.\\n1024\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nthen a person’s right to object to the assessment is limited to a right to\\nobject against the amendment in respect of, or matters relating to, that\\nparticular.\\n(2B) In subsection (2A), the reference to an assessment which\\namends a previous assessment in any particular includes one which\\namends the amount of unabsorbed losses, allowances or donations in\\nthat previous assessment that may be carried forward but the tax\\npayable remains nil.\\n(3) Such application must state precisely the grounds of the\\nperson’s objections to the assessment and must be made within —\\n(a) if the person is a company and the notice of assessment is\\nserved on the person on or after 1 January 2014, 2 months;\\nor\\n(b) in any other case, 30 days,\\nfrom the date of the service of the notice of assessment.\\n[34/2016]\\n(4) The Comptroller upon being satisfied that, owing to absence,\\nsickness or other reasonable cause, the person disputing the\\nassessment was prevented from making the application within the\\nperiod referred to in subsection (3), must extend the period as may be\\nreasonable in the circumstances.\\n(5) On\\nreceipt\\nof\\nthe\\nnotice\\nof\\nobjection\\nmentioned\\nin\\nsubsection (2), the Comptroller may —\\n(a) require the person giving the notice of objection to furnish\\nsuch particulars as the Comptroller may consider necessary\\nwith respect to the person’s income assessed and to\\nproduce all books or other documents in the person’s\\ncustody or under the person’s control relating to such\\nincome; and\\n(b) summon any person who the Comptroller thinks is able to\\ngive evidence respecting the assessment to attend before\\nthe Comptroller and may examine that person on oath or\\notherwise.\\nIncome Tax Act 1947\\n1025\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(6) In the event of any person who has objected to an assessment\\nmade upon that person —\\n(a) agreeing with the Comptroller as to the amount at which\\nthat person is liable to be assessed, the assessment must be\\namended accordingly, and notice of the revised assessment\\nmust be served upon that person; or\\n(b) failing to agree with the Comptroller as to the amount at\\nwhich that person is liable to be assessed, the Comptroller\\nmust give that person notice of refusal to amend the\\nassessment and may revise the assessment to such amount\\nas the Comptroller may determine, according to the best of\\nthe Comptroller’s judgment, and the Comptroller must\\ngive that person notice of the revised assessment and of the\\ntax payable, or the amount of refund of tax (as a result of\\nthe operation of section 46) or unabsorbed allowances,\\nlosses or donations, together with notice of refusal to\\namend the revised assessment.\\n(7) Wherever requisite, any reference in this Act to an assessment\\nor an additional assessment includes a reference to an assessment or\\nadditional assessment as revised under subsection (6)(b).\\n(8) If any incorrect information appears in a notice of assessment\\nfor any year of assessment served on a person who is exempted from\\nthe liability to furnish a return under section 62(2), the person must,\\nwithin 30 days from the date of service of the notice or such extended\\ntime as the Comptroller may allow, inform the Comptroller by written\\nnotice —\\n(a) if the incorrect information relates to any understatement\\nor omission of income, of the correct amount of income\\nfrom every source for that year of assessment; or\\n(b) if the incorrect information relates to any deduction or\\nrelief which is excessive or which is wrongly granted, of\\nthe correct amount of deduction or relief for that year of\\nassessment or the fact that the deduction or relief is\\nwrongly granted, as the case may be.\\nIncome Tax Act 1947\\n2020 Ed.\\n1026\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(9) The Minister may, by rules made under section 7, substitute a\\nlonger period for a period in subsection (3) or (8) for all persons or\\ncases, any class of persons or cases, or any person or case, and\\nsubsection (3) or (8) (as the case may be) applies accordingly to all\\npersons or cases, the class of persons or cases, or the person or case.\\n[34/2016]\\n(10) The rules mentioned in subsection (9) may —\\n(a) provide that the substitute period applies only if such\\nconditions as may be specified in the rules are satisfied;\\nand\\n(b) prescribe different substitute periods for different persons\\nor cases and classes of persons or cases.\\n[34/2016]\\nErrors and defects in assessment and notice\\n77.—(1) No assessment, warrant or other proceeding purporting to\\nbe made in accordance with the provisions of this Act is to be\\nquashed, or is deemed to be void or voidable, for want of form, or is\\naffected by reason of a mistake, defect or omission therein, if it is in\\nsubstance and effect in conformity with or according to the intent and\\nmeaning of this Act, and if the person assessed or intended to be\\nassessed or affected thereby is designated therein according to\\ncommon intent and understanding.\\n(2) An assessment must not be impeached, and is not affected —\\n(a) by reason of a mistake therein as to —\\n(i) the name or surname of a person liable;\\n(ii) the description of any income; or\\n(iii) the amount of tax charged; and\\n(b) by reason of any variance between the assessment and the\\nnotice thereof.\\n(3) In cases of assessment, the notice thereof must be duly served\\non the person intended to be charged and such notice must contain in\\nsubstance and effect the particulars on which the assessment is made.\\nIncome Tax Act 1947\\n1027\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nPART 18\\nAPPEALS\\nBoard of Review\\n78.—(1) For the purpose of hearing appeals in the manner\\nhereinafter provided, there is to be a Board of Review (called in\\nthis Part the Board) consisting of not more than 30 members\\nappointed from time to time by the Minister.\\n(2) Members of the Board hold office for such period as may be\\ndetermined by the Minister and are eligible for re‑appointment.\\n(3) The Minister may at any time remove any member of the Board\\nfrom office without assigning any reason.\\n(4) A member may resign his or her office by written notice to the\\nMinister.\\n(5) The Minister may appoint from amongst the members of the\\nBoard —\\n(a) a Chairperson of the Board; and\\n(b) such number of Deputy Chairpersons of the Board as the\\nMinister thinks fit.\\n(6) No person may be appointed as Chairperson of the Board or\\nDeputy Chairperson of the Board unless the person is either qualified\\nto be a District Judge or is an accountant.\\n(7) The Minister may appoint any Deputy Chairperson of the Board\\nas a temporary Chairperson of the Board during the temporary\\nincapacity (from illness or otherwise) or absence of the Chairperson\\nof the Board.\\n[Act 33 of 2022 wef 21/08/2023]\\n(8) The Minister may appoint a secretary or secretaries to the Board\\nand such other officers and employees of the Board as may be\\nnecessary.\\n(9) All the powers, functions and duties of the Board may be\\nexercised, discharged and performed by any committee of the Board\\nconsisting of not less than 3 members of the Board appointed by the\\nIncome Tax Act 1947\\n2020 Ed.\\n1028\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nChairperson of the Board, at least one of whom must be the\\nChairperson of the Board or a Deputy Chairperson of the Board.\\n[Act 33 of 2022 wef 21/08/2023]\\n(10) However, the Chairperson of the Board may, having regard to\\nthe facts and circumstances of a particular case, appoint a single\\nmember of the Board, being the Chairperson or a Deputy Chairperson\\nof the Board, to exercise, discharge and perform the powers,\\nfunctions and duties of the Board for that case.\\n[Act 33 of 2022 wef 21/08/2023]\\n(11) Any act, finding or decision of any such committee or member\\nis deemed to be the act, finding or decision of the Board, and (unless\\nthe context otherwise requires) any reference to the Board in this Act\\nis to such committee or member.\\n[Act 33 of 2022 wef 21/08/2023]\\n(12) The secretary must inform each member appointed under\\nsubsection (9) or (10) of his or her appointment, and it is the duty of\\nthe member to attend any proceedings specified by the secretary.\\n[Act 33 of 2022 wef 21/08/2023]\\n(13) [Deleted by Act 33 of 2022 wef 21/08/2023]\\n(14) All matters coming before the Board or a committee of the\\nBoard at any sitting thereof must be decided by a majority of votes of\\nthe members of the Board present, and, in the event of an equality of\\nvotes, the Chairperson of the Board, the Deputy Chairperson of the\\nBoard or such other member as may be presiding (as the case may be)\\nhas a second or casting vote.\\n(15) Members of the Board are entitled to receive such fees and\\nallowances as the Minister may determine.\\n[Act 33 of 2022 wef 21/08/2023]\\n(16) The Minister may make regulations —\\n(a) prescribing any matter required or permitted to be\\nprescribed under this Part;\\n(b) providing for the form and manner in which appeals are to\\nbe made to the Board;\\n(c) providing for when an objection to the appointment of a\\nmember under subsection (9) or (10) to hear an appeal may\\nbe made, and how such objection is to be dealt with;\\nIncome Tax Act 1947\\n1029\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(d) providing for the procedure to be adopted by the Board for\\nthe Board’s meetings and for proceedings before the\\nBoard, and the records to be kept by the Board;\\n(e) prescribing the fees to be paid in respect of any appeal\\nunder this Part;\\n(f) prescribing the costs in respect of appeals to the Board;\\n(g) providing for any matter which the Minister considers\\nincidental or expedient for the proper and efficient conduct\\nof proceedings before the Board;\\n(h) providing that the Chairperson or a Deputy Chairperson of\\nthe Board may issue directions for carrying out any\\nregulations; and\\n(i) providing for any other matter that is necessary or\\nconvenient for carrying out or giving effect to the\\nprovisions of this Part.\\n[Act 33 of 2022 wef 21/08/2023]\\nRight of appeal\\n79.—(1) Any person who, being aggrieved by an assessment made\\nupon the person, has failed to agree with the Comptroller in the\\nmanner provided in section 76(6) may appeal to the Board by lodging\\nwith the secretary —\\n(a) within 30 days after the date of the Comptroller’s refusal to\\namend the assessment, a notice of appeal; and\\n(b) within 30 days after the date on which the notice of appeal\\nwas lodged, a petition of appeal containing a statement of\\nthe grounds of appeal.\\n[Act 33 of 2022 wef 21/08/2023]\\n(2) The notice of appeal and petition of appeal must be made in the\\nform and manner prescribed in the regulations under section 78(16).\\n[Act 33 of 2022 wef 21/08/2023]\\n(3) The notice of appeal is deemed to be withdrawn if no petition of\\nappeal containing a statement of the grounds of appeal is lodged with\\nthe secretary in accordance with subsection (1)(b).\\n[Act 33 of 2022 wef 21/08/2023]\\nIncome Tax Act 1947\\n2020 Ed.\\n1030\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(4) [Deleted by Act 33 of 2022 wef 21/08/2023]\\n(5) [Deleted by Act 33 of 2022 wef 21/08/2023]\\n(6) [Deleted by Act 33 of 2022 wef 21/08/2023]\\n(7) [Deleted by Act 33 of 2022 wef 21/08/2023]\\n(8) [Deleted by Act 33 of 2022 wef 21/08/2023]\\n(9) [Deleted by Act 33 of 2022 wef 21/08/2023]\\n(10) [Deleted by Act 33 of 2022 wef 21/08/2023]\\n(11) The Chairperson of the Board may, in his or her discretion and\\non such terms as he or she thinks fit, permit any person to proceed\\nwith an appeal even if the notice of appeal or petition of appeal was\\nnot lodged within the time limited therefor by this section, if it is\\nshown to the Chairperson’s satisfaction that the person was prevented\\nfrom lodging the notice or petition in due time owing to absence,\\nsickness or other reasonable cause and that there has been no\\nunreasonable delay on the person’s part.\\n(12) Except with the consent of the Board and on such terms as the\\nBoard may determine, an appellant may not at the hearing of the\\nappellant’s appeal rely on any grounds of appeal other than the\\ngrounds stated in the appellant’s petition of appeal.\\nHearing and disposal of appeals\\n80.—(1) On receipt of a petition of appeal, the secretary must\\nimmediately forward one copy of it to the Comptroller, and must —\\n(a) as soon as possible thereafter fix the hearing; and\\n(b) not later than 14 days before the hearing (or such shorter\\nperiod as the appellant and the Comptroller may agree),\\ngive notice of the hearing of the appeal to both the\\nappellant and the Comptroller.\\n[Act 33 of 2022 wef 21/08/2023]\\n[Act 30 of 2023 wef 30/10/2023]\\n(2) The appellant and the Comptroller may be represented by an\\nadvocate and solicitor or an accountant (but by no one else) at a\\nhearing of an appeal before the Board.\\n[Act 33 of 2022 wef 21/08/2023]\\nIncome Tax Act 1947\\n1031\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(3) The Board may for any reasonable cause postpone the hearing\\nof an appeal for such reasonable time as the Board thinks necessary.\\n[Act 33 of 2022 wef 21/08/2023]\\n(4) The onus of proving that the assessment is excessive or that the\\namount of any unabsorbed losses, allowances or donations that may\\nbe carried forward ought to be of a higher amount than that assessed\\n(as the case may be), is on the appellant.\\n(5) The Board has the following powers:\\n(a) to summon to attend at the hearing of an appeal any person\\nwhom it may consider able to give evidence respecting the\\nappeal, to examine such person as a witness either on oath\\nor otherwise and to require such person to produce such\\nbooks, papers or documents as the Board may think\\nnecessary for the purposes of the appeal;\\n(b) to allow any person so attending any reasonable expenses\\nnecessarily incurred by the person in so attending; such\\nexpenses form part of the costs of the appeal and, pending\\nand subject to any order by the Board as to such costs, must\\nbe paid by the appellant or the Comptroller, as the Board\\nmay direct;\\n(c) all the powers of a District Court with regard to the\\nenforcement of attendance of witnesses, hearing evidence\\non oath and punishment for contempt;\\n(d) subject to section 79(12), to admit or reject any evidence\\nadduced, whether oral or documentary and whether\\nadmissible or inadmissible under the provisions of any\\nwritten law for the time being in force relating to the\\nadmissibility of evidence.\\n(5A) Pursuant to subsection (5)(c), the Board may issue to a\\nSuperintendent of Prisons appointed under section 20 of the Prisons\\nAct 1933, an order to the same effect as an order under section 38 of\\nthat Act, for the purpose of producing a prisoner for examination\\nbefore the Board.\\n[Act 33 of 2022 wef 21/08/2023]\\nIncome Tax Act 1947\\n2020 Ed.\\n1032\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(6) Every person examined as a witness by or before the Board,\\nwhether on oath or otherwise, is legally bound to state the truth and to\\nproduce such books, papers or documents as the Board may require.\\n(7) The costs of an appeal are in the discretion of the Board and\\nmust either be fixed by the Board or, on the order of the Board,\\nassessed by the Registrar, the Deputy Registrar or an Assistant\\nRegistrar of the Supreme Court, in accordance with regulations made\\nunder section 78(16).\\n[Act 33 of 2022 wef 21/08/2023]\\n(8) Where the Comptroller is awarded costs of an appeal, the\\nComptroller is entitled to his or her full costs of the appeal, including\\na fee for any counsel appearing on the Comptroller’s behalf in the\\nappeal, and the amount of such costs is to be added to the tax charged\\n(if any) and is recoverable as if it were tax imposed under this Act and\\npayable by the appellant.\\n(9) Despite anything in section 85, the Board may, on the\\napplication of the Comptroller made at any time after notice of\\nappeal has been given, require the appellant to furnish security, in\\nsuch sum and within such time as may be specified, for payment of\\ntax, and if security is not furnished in the sum and within the time\\nspecified, the tax assessed by the Comptroller becomes payable and\\nrecoverable immediately.\\n(10) The Board may, after hearing an appeal, confirm, reduce,\\nincrease or annul the assessment (including the amount of any\\nunabsorbed losses, allowances or donations that may be carried\\nforward) or make such order thereon as it thinks fit.\\n(11) [Deleted by Act 33 of 2022 wef 21/08/2023]\\n(12) Every member of the Board, when and so long as he or she is\\nacting as such, is deemed to be a public servant within the meaning of\\nthe Penal Code 1871 and enjoys the same judicial immunity as is\\nenjoyed by a District Judge.\\n(13) All proceedings in appeals to the Board under this Act are\\ndeemed to be judicial proceedings within the meaning of the Penal\\nCode 1871.\\nIncome Tax Act 1947\\n1033\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(14) Notice of the amount of tax payable under the assessment as\\ndetermined by the Board must be served by the Comptroller either\\npersonally or by registered post upon the appellant.\\n(15) Regulations made under section 78(16) may provide for the\\nconduct of proceedings before the Board through electronic\\ncommunication, video conferencing, tele-conferencing or other\\nelectronic means, under specified circumstances.\\n[Act 33 of 2022 wef 21/08/2023]\\n(16) A member of the Board before whom proceedings are\\nconducted in the manner described in subsection (15) in those\\nspecified circumstances is deemed to be present and sitting at those\\nproceedings.\\n[Act 33 of 2022 wef 21/08/2023]\\nHearing of appeal by committee where member becomes\\nunavailable\\n80A.—(1) This section applies to an appeal before a committee of\\nthe Board, and a reference in this section to a member of the Board is\\nto a member of the Board that is part of the committee.\\n[Act 33 of 2022 wef 21/08/2023]\\n(1A) Despite anything in this Part, if —\\n(a) in the course of an appeal or in the case of a reserved\\njudgment in any appeal; or\\n(b) after an appeal has been determined but before the making\\nof any ancillary order,\\nany member of the Board hearing the appeal resigns or is unable\\nbecause of illness or any other cause, to continue to hear or determine\\nthe appeal or to make the ancillary order, the remaining members of\\nthe Board (if 2 or more) must hear or determine the appeal or make\\nthe ancillary order, unless any party objects.\\n[Act 33 of 2022 wef 21/08/2023]\\n[Act 30 of 2023 wef 30/10/2023]\\nIncome Tax Act 1947\\n2020 Ed.\\n1034\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(2) In subsection (1A), the Board is deemed to be duly constituted\\nfor the purposes of the appeal despite the member’s resignation or\\ninability to act.\\n[39/2017]\\n[Act 33 of 2022 wef 21/08/2023]\\n(3) Despite section 78(14), in a case under subsection (1A) —\\n(a) where there are more than 2 members of the Board\\nremaining, the appeal is to be decided or the ancillary order\\nis to be made in accordance with the decision of the\\nmajority of the remaining members of the Board and, if\\nthere is an equality of votes, the Chairperson of the Board\\nor, in the Chairperson’s absence, the member presiding has\\na second or casting vote; or\\n[Act 33 of 2022 wef 21/08/2023]\\n(b) where there are only 2 members of the Board remaining,\\nthe appeal is to be decided or the ancillary order is to be\\nmade in accordance with the unanimous decision of both\\nmembers.\\n[39/2017]\\n[Act 33 of 2022 wef 21/08/2023]\\n(4) In the case in subsection (1A)(a), the appeal must be reheard —\\n(a) if any party objects to the proceedings continuing before\\nthe\\nremaining\\nmembers\\nof\\nthe\\nBoard\\nunder\\nsubsection (1A); or\\n[Act 33 of 2022 wef 21/08/2023]\\n[Act 30 of 2023 wef 30/10/2023]\\n(b) if the appeal is heard or determined by only 2 remaining\\nmembers of the Board and they are unable to reach a\\nunanimous decision.\\n[39/2017]\\n[Act 33 of 2022 wef 21/08/2023]\\n(5) In the case in subsection (1A)(b), another committee of the\\nBoard (which may include the remaining members of the Board) is to\\nbe constituted under section 78(9) to make the ancillary order if —\\nIncome Tax Act 1947\\n1035\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(a) any party objects to the remaining members of the Board\\nmaking the ancillary order; or\\n[Act 30 of 2023 wef 30/10/2023]\\n(b) the order is to be made by only 2 remaining members of the\\nBoard and they are unable to reach a unanimous decision.\\n[Act 33 of 2022 wef 21/08/2023]\\nHearing of appeal by single member where member becomes\\nunavailable\\n80B.—(1) Despite anything in this Part, if an appeal is before a\\nsingle member of the Board, and —\\n(a) in the course of an appeal or in the case of a reserved\\njudgment in any appeal; or\\n(b) after an appeal has been determined but before the making\\nof any ancillary order,\\nthe member of the Board hearing the appeal resigns or is unable\\nbecause of illness or any other cause, to continue to hear or determine\\nthe appeal or to make the ancillary order, the Chairperson of the\\nBoard is to appoint another member of the Board in accordance with\\nsection 78(10) to hear and determine the appeal or to make the\\nancillary order.\\n(2) In the case in subsection (1)(a), the member of the Board\\nappointed under subsection (1) must rehear the appeal if —\\n(a) any party objects to the proceedings continuing before the\\nmember; or\\n(b) the member determines that it would be in the interests of\\njustice to do so.\\n[Act 33 of 2022 wef 21/08/2023]\\nAppeals to General Division of High Court\\n81.—(1) Except as provided in this section, the decision of the\\nBoard is final.\\n[40/2019]\\n(2) In any case in which the amount of tax payable, tax to be\\nrefunded as a result of the operation of section 46 or notional tax\\nbenefit, as determined by the Board (excluding the amount of any\\nIncome Tax Act 1947\\n2020 Ed.\\n1036\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\ncosts awarded) exceeds $200, the appellant or the Comptroller may\\nappeal to the General Division of the High Court from the decision of\\nthe Board upon any question of law or of mixed law and fact.\\n[40/2019]\\n(3) The procedure governing and the costs of any such appeal to the\\nGeneral Division of the High Court are as provided for in the Rules of\\nCourt.\\n[40/2019]\\n(4) The General Division of the High Court is to hear and determine\\nany such appeal and may confirm, reduce, increase or annul the\\nassessment (including the amount of any unabsorbed losses,\\nallowances or donations that may be carried forward) determined\\nby the Board and make such further or other order on such appeal,\\nwhether as to costs or otherwise, as the General Division of the High\\nCourt may think fit.\\n[40/2019]\\n(5) There is to be such further right of appeal from decisions of the\\nGeneral Division of the High Court under this section as exists in the\\ncase of decisions made by the General Division of the High Court in\\nthe exercise of its original civil jurisdiction.\\n[40/2019]\\n(6) [Deleted by Act 2 of 2012]\\n(7) In this section, “notional tax benefit”, in relation to a year of\\nassessment, means an amount ascertained in accordance with the\\nformula\\nA1 \\u0001 B1\\nð\\nÞ \\u0003 C\\n½\\n‹ þ\\nA2 \\u0001 B2\\nð\\nÞ \\u0003 C\\n½\\n‹ þ\\nA3 \\u0001 B3\\nð\\nÞ \\u0003 C\\n½\\n‹;\\nwhere A1 is the amount of unabsorbed losses as at the end of the\\nbasis period for the year of assessment claimed by a\\nperson;\\nA2 is\\nthe\\namount\\nof\\nunabsorbed\\nallowances\\nunder\\nsection 16, 17, 18B, 18C, 19, 19A, 19B, 19C, 19D or\\n20 claimed by the person for the year of assessment;\\nA3 is the amount of unabsorbed donations as at the end of the\\nbasis period for the year of assessment claimed by the\\nperson;\\nIncome Tax Act 1947\\n1037\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nB1 is the amount of unabsorbed losses as at the end of the\\nbasis period for the year of assessment as determined by\\nthe Comptroller;\\nB2 is\\nthe\\namount\\nof\\nunabsorbed\\nallowances\\nunder\\nsection 16, 17, 18B, 18C, 19, 19A, 19B, 19C, 19D or\\n20 for the year of assessment as determined by the\\nComptroller;\\nB3 is the amount of unabsorbed donations as at the end of the\\nbasis period for the year of assessment as determined by\\nthe Comptroller; and\\nC is —\\n(a) in the case of an individual resident in Singapore, the\\nhighest rate of tax specified in Part A of the Second\\nSchedule in respect of the year of assessment; and\\n(b) in any other case, the rate of tax applicable to the\\nperson for the year of assessment as specified in\\nsection 43(1).\\nCases stated for General Division of High Court\\n82.—(1) The Board may at any time and in regard to any appeal,\\nwith or without proceeding to the determination of the appeal, state a\\ncase on a question of law for the opinion of the General Division of\\nthe High Court.\\n[40/2019]\\n(2) A stated case must set forth the facts and any finding of fact by\\nthe Board, the decision (if any) of the Board, and the question for the\\nopinion of the General Division of the High Court, and must be\\nsigned by the officiating chairperson or, in the chairperson’s absence,\\nby any other member attending the sitting at which the appeal was\\nheard.\\n[40/2019]\\n(3) The secretary must transmit the case, when stated and signed as\\naforesaid, to the General Division of the High Court, and must\\nforward a copy thereof to the appellant and to the Comptroller.\\n[40/2019]\\nIncome Tax Act 1947\\n2020 Ed.\\n1038\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(4) The General Division of the High Court may cause a stated case\\nto be sent back for amendment and thereupon the case must be\\namended accordingly.\\n[40/2019]\\n(5) In considering any stated case, the General Division of the High\\nCourt is to afford opportunity for argument thereon to be put forward\\nby or on behalf of the appellant and the Comptroller.\\n[40/2019]\\n(6) The General Division of the High Court is to hear and determine\\nany question of law arising on a stated case and may in accordance\\nwith its decision thereon confirm, reduce, increase or annul any\\nassessment (including the amount of any unabsorbed losses,\\nallowances or donations that may be carried forward) determined\\nby the Board in the appeal, or may remit the case to the Board with the\\nopinion of the General Division of the High Court thereon.\\n[40/2019]\\n(7) Where a case is so remitted by the General Division of the High\\nCourt, the Board is bound by the opinion of the General Division of\\nthe High Court and must give effect thereto by its decision in the\\nappeal or (as the case may be) by revising any previous decision made\\nby it in the appeal to the extent (if any) to which that previous\\ndecision does not accord with the opinion of the General Division of\\nthe High Court.\\n[40/2019]\\nProceedings before Board\\n83.—(1) Subject to subsections (2) and (3), all proceedings before\\nthe Board must be heard in private.\\n[32/2019]\\n[Act 25 of 2021 wef 01/04/2022]\\n(2) Where the Comptroller or the taxpayer applies to the Board that\\nthe proceedings be heard by way of a hearing open to the public, the\\nBoard may direct that the proceedings be so heard, despite any\\nobjection from the other party to the proceedings.\\n[32/2019]\\n(3) Where in the opinion of the Board any proceedings heard in\\nprivate ought to be reported, the Board may publish or authorise the\\npublication of the facts of the case, the arguments and the decision\\nIncome Tax Act 1947\\n1039\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nrelating to these proceedings without disclosing the name of the\\ntaxpayer concerned.\\n[32/2019]\\n[Act 25 of 2021 wef 01/04/2022]\\nAssessments to be final and conclusive\\n84.—(1) Except as expressly provided in this Act, where no valid\\nnotice of appeal has been lodged within the time limited by this Part\\nagainst an assessment, or where an assessment has been determined\\non appeal, the assessment as made or agreed to under section 76(6), or\\ndetermined on appeal (as the case may be) is final and conclusive for\\nthe purposes of this Act.\\n(2) This section does not prevent the Comptroller from making any\\nassessment or additional assessment under section 74 which does not\\ninvolve reopening any matter which has been determined on appeal.\\nPART 19\\nCOLLECTION, RECOVERY AND REPAYMENT OF TAX\\nTime within which payment is to be made\\n85.—(1) Subject to section 91, tax for any year of assessment levied\\nin accordance with the provisions of this Act is, despite any objection\\nor appeal against the assessment on which the tax is levied, payable at\\nthe place stated in the notice given under section 76 within one month\\nafter the service of the notice.\\n(2) The Comptroller may, in his or her discretion and subject to\\nsuch terms and conditions, including the imposition of interest, as he\\nor she may impose, extend the time limit within which payment is to\\nbe made.\\nRecovery of tax from persons leaving Singapore\\n86.—(1) Where the Comptroller is of the opinion that any person is\\nabout or likely to leave Singapore without paying all tax assessed\\nupon the person, the Comptroller may issue a certificate containing\\nparticulars of such tax and a direction to the Commissioner of Police\\nor the Controller of Immigration, or both, that such person be\\nIncome Tax Act 1947\\n2020 Ed.\\n1040\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nprevented from leaving Singapore without paying the tax or\\nfurnishing security to the Comptroller’s satisfaction for payment\\nthereof.\\n(2) Subject to the provisions of any order issued or made under any\\nlaw for the time being in force relating to banishment or immigration,\\nthe Commissioner of Police or the Controller of Immigration, or both,\\nas the case may be, must thereupon take, or cause to be taken by any\\npolice officer or immigration officer, such measures as may be\\nnecessary to prevent the person named in the direction from leaving\\nSingapore until payment of the tax has been made or secured as\\naforesaid, including the use of such force as may be necessary and, if\\nappropriate, the detention of any passport, certificate of identity or\\ntravel document and any exit permit or other document authorising\\nsuch person to leave Singapore.\\n(3) At the time of issue of the certificate, the Comptroller must issue\\nto such person a notification thereof; but the non‑receipt thereof does\\nnot invalidate any proceedings under this section.\\n[Act 33 of 2022 wef 04/11/2022]\\n(4) Payment of the tax to an officer in charge of a police station or to\\nan immigration officer or production of a certificate signed by the\\nComptroller, a Deputy Comptroller or an Assistant Comptroller\\nstating that the tax has been paid or secured is sufficient authority for\\nallowing such person to leave Singapore.\\n(5) Any person who, knowing that a direction has been issued under\\nthis section for the prevention of the person’s departure from\\nSingapore, voluntarily leaves or attempts to leave Singapore\\nwithout paying all tax assessed upon the person or furnishing\\nsecurity to the Comptroller’s satisfaction for payment thereof shall be\\nguilty of an offence and may be arrested, without warrant, by any\\npolice officer or immigration officer.\\n(6) No civil or criminal proceedings may be instituted or\\nmaintained against the Government, the Commissioner of Police,\\nthe Controller of Immigration or any other police officer or\\nimmigration officer, in respect of anything lawfully done under the\\nauthority of this section.\\nIncome Tax Act 1947\\n1041\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(7) In this section, “tax” includes any interest imposed under\\nsection 85(2).\\nPenalty for non‑payment of tax and enforcement of payment\\n87.—(1) Subject to subsection (2), if any tax is not paid within the\\nperiods prescribed in section 85 —\\n(a) a sum equal to 5% of the amount of tax payable is added\\nthereto, and the provisions of this Act relating to the\\ncollection and recovery of tax apply to the collection and\\nrecovery of such sum;\\n(b) the Comptroller must serve a demand note upon the person\\nassessed and if payment is not made within one month\\nfrom the date of the service of such demand note, the\\nComptroller\\nmay\\nproceed\\nto\\nenforce\\npayment\\nas\\nhereinafter provided;\\n(c) despite paragraphs (a) and (b), if the amount of tax\\noutstanding is not paid within 60 days of the imposition of\\nthe penalty as provided by paragraph (a), an additional\\npenalty of 1% of the tax outstanding is payable for each\\ncompleted month that the tax remains unpaid, but the total\\nadditional penalty must not exceed 12% of the amount of\\ntax outstanding, and the provisions of this Act relating to\\nthe collection and recovery of tax apply to the collection\\nand recovery of such additional penalty; and\\n(d) penalties imposed under paragraphs (a), (b) and (c) are not\\ndeemed to be part of the tax paid for the purpose of\\nclaiming relief under any of the provisions of this Act.\\n(2) The Comptroller may for any good cause shown remit the whole\\nor any part of the penalty due under subsection (1).\\n(3) In this section, “tax” includes any interest imposed under\\nsection 85(2).\\nIncome Tax Act 1947\\n2020 Ed.\\n1042\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nChange of address\\n88.—(1) Subject to subsection (2), every person liable to pay\\nincome tax under the provisions of this Act must inform the\\nComptroller in writing of any change in the person’s address.\\n(2) Where a person liable to pay income tax uses his or her\\nresidential address for the purposes of this Act, then, if the person has\\nchanged his or her residential address and has made a report of the\\nchange under section 10 of the National Registration Act 1965 —\\n(a) the person is deemed to have informed the Comptroller of\\nthe change of his or her residential address in compliance\\nwith subsection (1); and\\n(b) the new residential address as reported by the person under\\nsection 10 of the National Registration Act 1965 is, unless\\nthe person informs the Comptroller in writing to the\\ncontrary, deemed to be his or her last known address for the\\npurpose of subsection (3).\\n(3) Any notice or process given or served upon any person by\\nposting the same or a copy thereof by registered post to the person at\\nhis or her last known address is, despite section 8(3), deemed to have\\nbeen duly given or served and is conclusive evidence of the fact of\\nservice.\\nSuit for tax by Comptroller\\n89.—(1) Despite the provisions of any other written law, tax,\\ninterest and any penalty imposed under this Act and any sum due to\\nthe Government under section 45 or 45EA, may be sued for by way of\\na specially endorsed originating claim.\\n[37/2014]\\n[Act 25 of 2021 wef 01/04/2022]\\n(2) The Comptroller may, in his or her own name, sue for any such\\ntax, interest, penalty or other sum due and is entitled to all costs\\nallowed by law against the person liable thereto.\\n(3) The Comptroller may appear personally or by counsel in any\\nsuit instituted under this section.\\nIncome Tax Act 1947\\n1043\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(4) In any suit under this section, the production of a certificate\\nsigned by the Comptroller giving the name and address of the\\ndefendant and the amount of tax, interest or penalty due by the\\ndefendant is sufficient evidence of the amount so due and sufficient\\nauthority for the court to give judgment for that amount.\\n(5) In addition to any other powers of collection and recovery\\nprovided in this Act, the Comptroller may, with the approval of the\\nMinister and, where the tax charged on the income of any person who\\ncarries on the business of shipowner or charterer or of air transport\\nhas been in default for more than 3 months, whether the person is\\nassessed directly or in the name of some other person, issue to the\\nDirector‑General of Customs, or other authority by whom clearance\\nmay be granted, a certificate containing the name or names of the\\nperson and particulars of the tax in default.\\n(6) On receipt of such a certificate, the Director‑General of\\nCustoms or other authority is empowered and required to refuse\\nclearance from any port, aerodrome or airport in Singapore to any\\nship or aircraft owned wholly or partly or chartered by that person\\nuntil the tax has been paid.\\n(7) No civil or criminal proceedings may be instituted or\\nmaintained\\nagainst\\nthe\\nGovernment,\\nthe\\nDirector‑General\\nof\\nCustoms or other authority in respect of a refusal of clearance\\nunder this section, nor does the fact that a ship or an aircraft is\\ndetained under this section affect the liability of the owner, charterer,\\nor agent to pay harbour or other dues and charges for the period of\\ndetention.\\n(8) In subsections (6) and (7), “ship” has the meaning given by\\nsection 2(1) of the Merchant Shipping Act 1995.\\n[2/2016]\\nStatement of Comptroller sufficient\\n90.—(1) In any civil or criminal proceedings under this Act, every\\nstatement purporting to be under the hand of the Comptroller\\ncontained in the information, complaint, declaration or claim is prima\\nfacie evidence of the matter stated therein.\\nIncome Tax Act 1947\\n2020 Ed.\\n1044\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(2) This section applies to any matter so stated although —\\n(a) evidence in support or rebuttal of the matter stated or of\\nany other matter is given; or\\n(b) the matter stated is a mixed question of law and fact, but in\\nsuch case the statement is prima facie evidence of the fact\\nonly.\\n(3) This section does not apply to —\\n(a) a statement of the intent of the defendant; or\\n(b) proceedings for an offence punishable by imprisonment.\\nDeduction of tax from emoluments and pensions\\n91.—(1) Where any income chargeable under section 10(1)(b) or\\n(e) is payable to any individual, deductions on account of tax which is\\nor will be payable by the individual for any year of assessment must,\\nif the Comptroller so directs, be made out of the income or any arrears\\nthereof.\\n(2) Subject to any rules made under section 7, deductions\\nauthorised by this section must be made at such times and in such\\namounts as the Comptroller directs whether or not the tax has been\\nassessed; except that if on the assessment becoming final and\\nconclusive it appears that the deductions made exceed the tax\\npayable, the tax overpaid by means of the previous deductions must\\nbe repaid.\\n(3) Where any deduction has been made from the income so\\nchargeable of any individual, the individual has the same right of\\nobjection or appeal against the deduction as he or she has against an\\nassessment made upon him or her.\\n(4) Any amount deducted pursuant to any direction given by the\\nComptroller under this section must be paid by the employer to the\\nComptroller within 10 days after the date of the deduction, and if any\\nsuch amount is not paid —\\n(a) within that period of 10 days, a penalty equal to 5% of that\\namount is payable by the employer to the Comptroller;\\nIncome Tax Act 1947\\n1045\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) within one month after the date of the deduction, an\\nadditional penalty equal to 1% of that amount is payable by\\nthe employer to the Comptroller for each completed month\\nthat the amount remains unpaid, but the total additional\\npenalty must not exceed 12% of the amount outstanding.\\n(5) The Comptroller may for any good cause shown remit the whole\\nor any part of the penalty due under subsection (4).\\n(6) If and so far as any such income is paid without deduction of tax\\nas aforesaid, the tax may be collected and payment thereof enforced\\nin accordance with sections 85, 86 and 87.\\n(7) For the purpose of section 85, the Comptroller must determine\\nthe period within which the tax is payable.\\n(8) An employer who fails to comply with section 68(7) is liable to\\npay the full amount of the tax which by reason of such failure cannot\\nbe recovered from such employee.\\n(9) The Comptroller must apply any amount recovered by or paid to\\nhim or her in or towards payment of the tax payable by the employee.\\n(10) The employer may recover from the employee any amount\\nwhich the employer has paid to the Comptroller or which has been\\nrecovered\\nfrom\\nthe\\nemployer\\nby\\nthe\\nComptroller\\nunder\\nsubsection (8).\\n(11) Any partner who fails to comply with section 68(11) is liable to\\npay the amount of the tax which by reason of such failure cannot be\\nrecovered from the person who has ceased to be a partner.\\n(12) The liability of a remaining partner under subsection (11) must\\nnot exceed the amount paid by that partner in contravention of\\nsection 68(11).\\n(13) Subsection (11) does not preclude a partner who pays any\\namount of tax under that subsection from recovering such amount\\nfrom the person who has ceased to be a partner.\\nRemission, reduction or refund of tax\\n92.—(1) The Comptroller may remit, wholly or in part, the tax\\npayable by any person on the ground of poverty.\\nIncome Tax Act 1947\\n2020 Ed.\\n1046\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(2) The Minister may at any time, in his or her discretion and\\nsubject to such conditions as the Minister may impose, remit, reduce\\nor refund, wholly or in part, the tax that is or will be payable or that is\\npaid by any person.\\n(2A) The Minister may, by order in the Gazette, remit, reduce or\\nrefund, wholly or in part, the tax that is or will be payable or that is\\npaid by any class of persons, subject to such conditions as the\\nMinister may specify in the order.\\n(2B) Where the Minister is satisfied that a person to whom a\\nremission, reduction or refund of tax is granted fails to comply with\\nany condition imposed under subsection (2) or (2A) (whether a\\ncondition precedent or condition subsequent), an amount equal to the\\namount of tax so remitted, reduced or refunded is recoverable as a\\ndebt due to the Government.\\n(2C) The amount recoverable under subsection (2B) is payable at\\nthe place stated in a notice served by the Comptroller on the person\\nwithin one month after the service of the notice.\\n(2D) The Comptroller may, in his or her discretion and subject to\\nsuch terms and conditions (including the imposition of interest) as the\\nComptroller may impose, extend the time limit within which payment\\nis to be made.\\n(2E) Sections 86(1) to (6), 87(1) and (2), 89, 90 and 91 apply to the\\ncollection and recovery by the Comptroller of the amount recoverable\\nunder\\nsubsection\\n(2B)\\nand\\nany\\ninterest\\nimposed\\nunder\\nsubsection (2D) as they apply to the collection and recovery of tax.\\n(3) [Deleted by Act 19 of 2013]\\n(4) The Minister may make rules for the purpose of giving effect to\\nthis section.\\nRemission of tax of companies for year of assessment 2011\\n92A.—(1) Subject to subsection (2), there is to be remitted the tax\\npayable for the year of assessment 2011 by a company an amount\\nequal to the lower of —\\nIncome Tax Act 1947\\n1047\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(a) 20% of the tax payable for that year of assessment\\n(excluding any tax levied and paid or payable pursuant\\nto section 43(3), (3A) and (3B)); and\\n(b) $10,000,\\nwhere the Comptroller is satisfied that the remission of tax would be\\nbeneficial to the company.\\n(2) No remission under subsection (1) may be granted to a company\\nwhere the company qualifies for the cash grant under section 92B.\\nCash grant for companies for year of assessment 2011\\n92B.—(1) Where a company has made a contribution to the Central\\nProvident Fund in respect of any of its employees during the basis\\nperiod for the year of assessment 2011, and —\\n(a) the company is not liable to pay tax for the year of\\nassessment 2011;\\n(b) the specified amount is greater than 20% of the tax payable\\nby the company for that year of assessment (excluding any\\ntax levied and paid or payable pursuant to section 43(3),\\n(3A) and (3B)); or\\n(c) the company makes a written election for a cash grant\\nunder this section in lieu of the remission under\\nsection 92A, and the Comptroller is satisfied that the\\ncash grant would be more beneficial to the company than\\nthe remission,\\nthen there is, in lieu of the remission of tax under section 92A, to be\\nmade to the company for the year of assessment 2011 a cash grant of\\nthe specified amount.\\n(2) The election under subsection (1)(c) must be made to the\\nComptroller at the time the company furnishes a return of its income\\nfor the year of assessment 2011 or within such further time as the\\nComptroller may allow.\\n(3) The cash grant under subsection (1) is exempt from tax in the\\nhands of the company.\\nIncome Tax Act 1947\\n2020 Ed.\\n1048\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(4) Where a company receives a cash grant under subsection (1) —\\n(a) without having satisfied all the requirements in this\\nsection; or\\n(b) that is in excess of that which may be given to it under this\\nsection,\\nthe amount of the cash grant or the excess amount of the cash grant\\n(as the case may be) is recoverable by the Comptroller from the\\ncompany as a debt due to the Government.\\n(5) The Comptroller must send the company a notice specifying the\\namount to be repaid under subsection (4), and the company must pay\\nthe amount at the place stated in the notice within one month after the\\nservice of the notice.\\n(6) The Comptroller may, in his or her discretion and subject to\\nsuch terms and conditions as the Comptroller may impose, extend the\\ntime limit within which payment under subsection (5) is to be made.\\n(7) Sections 86(1) to (6), 87(1) and (2), 89, 90 and 91 apply to the\\ncollection and recovery by the Comptroller of the amounts\\nrecoverable under subsection (5) as they apply to the collection\\nand recovery of tax.\\n(8) Where any tax, duty, interest or penalty is due by the\\ncompany —\\n(a) under this Act to the Comptroller of Income Tax;\\n(b) under the Goods and Services Tax Act 1993 to the\\nComptroller of Goods and Services Tax;\\n(c) under the Property Tax Act 1960 to the Comptroller of\\nProperty Tax; or\\n(d) under the Stamp Duties Act 1929 to the Commissioner of\\nStamp Duties,\\nthen the amount of cash grant made by the Comptroller to the\\ncompany must be reduced by the amount so due; and the amount of\\nthe reduction is deemed to be tax, duty, interest or penalty paid by the\\ncompany under the relevant Act and must (if it is due under an Act\\nother than this Act) be paid by the Comptroller to the Comptroller of\\nIncome Tax Act 1947\\n1049\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nGoods and Services Tax, the Comptroller of Property Tax or the\\nCommissioner of Stamp Duties, as the case may be.\\n(9) In this section, “specified amount” means —\\n(a) 5% of the gross amount of the income derived by a\\ncompany from its principal activities in the basis period for\\nthe year of assessment 2011; or\\n(b) $5,000,\\nwhichever is the lower.\\nCash grant for companies for year of assessment 2012\\n92C.—(1) Where a company carrying on business in Singapore has\\nmade a contribution to the Central Provident Fund in respect of at\\nleast one of its qualifying employees during the basis period for the\\nyear of assessment 2012, there is to be made to the company for the\\nyear of assessment 2012 a cash grant of —\\n(a) 5% of the gross amount of the income derived by the\\ncompany from its principal activities in the basis period for\\nthe year of assessment 2012; or\\n(b) $5,000,\\nwhichever is the lower.\\n(2) No cash grant under subsection (1) may be made if the company\\nhas ceased to carry on business in Singapore.\\n(3) The Minister may waive the requirement under subsection (1) in\\nrespect of the contribution to the Central Provident Fund by the\\ncompany if the Minister is satisfied that it is just and equitable to do\\nso.\\n(4) The cash grant under subsection (1) is exempt from tax in the\\nhands of the company.\\n(5) Section 92B(4) to (8) applies, with the necessary modifications,\\nto this section.\\n(6) In this section, “qualifying employee” means an employee of\\nthe company based on the payroll for any month within its basis\\nIncome Tax Act 1947\\n2020 Ed.\\n1050\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nperiod for the year of assessment 2012, but excludes any employee\\nwho is also a shareholder of the company.\\n(7) In the application (by virtue of section 36B) of this section to a\\nregistered business trust, a reference to a contribution by a company\\nto the Central Provident Fund in respect of at least one of its\\nqualifying employees is a reference to a contribution by the\\ntrustee‑manager of the business trust to the Central Provident Fund\\nin respect of at least one of its employees, being one —\\n(a) who is an employee of the trustee‑manager according to\\nthe payroll for any month within the basis period of the\\ntrust for the year of assessment 2012; and\\n(b) whose sole duty is assisting in managing or operating the\\ntrust,\\nbut excluding any employee who is also a unitholder of the trust.\\nRemission of tax of companies for years of assessment 2013,\\n2014 and 2015\\n92D. Where the Comptroller is satisfied that the remission of tax\\nwould be beneficial to a company, then there is to be remitted the tax\\npayable for each of the years of assessment 2013, 2014 and 2015 by\\nthe company of an amount equal to the lower of the following:\\n(a) 30% of the tax payable for that year of assessment\\n(excluding any tax levied and paid or payable pursuant\\nto section 43(3), (3A) and (3B));\\n(b) $30,000.\\nRemission of tax of companies for year of assessment 2016\\n92E. Where the Comptroller is satisfied that the remission of tax\\nwould be beneficial to a company, then there is to be remitted the tax\\npayable for the year of assessment 2016 by the company of an amount\\nequal to the lower of the following:\\n(a) 50% of the tax payable for that year of assessment\\n(excluding any tax levied and paid or payable pursuant\\nto section 43(3), (3A) and (3B));\\nIncome Tax Act 1947\\n1051\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) $20,000.\\n[2/2016; 34/2016; 39/2017]\\nRemission of tax of companies for year of assessment 2017\\n92F. Where the Comptroller is satisfied that the remission of tax\\nwould be beneficial to a company, then there is to be remitted the tax\\npayable for the year of assessment 2017 by the company of an amount\\nequal to the lower of the following:\\n(a) 50% of the tax payable for that year of assessment\\n(excluding any tax levied and paid or payable pursuant\\nto section 43(3), (3A) and (3B));\\n(b) $25,000.\\n[39/2017]\\nRemission of tax of companies for year of assessment 2018\\n92G. Where the Comptroller is satisfied that the remission of tax\\nwould be beneficial to a company, then there is to be remitted the tax\\npayable for the year of assessment 2018 by the company of an amount\\nequal to the lower of the following:\\n(a) 40% of the tax payable for that year of assessment\\n(excluding any tax levied and paid or payable pursuant\\nto section 43(3), (3A) and (3B));\\n(b) $15,000.\\n[39/2017; 45/2018]\\nRemission of tax of companies for year of assessment 2019\\n92H. Where the Comptroller is satisfied that the remission of tax\\nwould be beneficial to a company, then there is to be remitted the tax\\npayable for the year of assessment 2019 by the company of an amount\\nequal to the lower of the following:\\n(a) 20% of the tax payable for that year of assessment\\n(excluding any tax levied and paid or payable pursuant\\nto section 43(3), (3A) and (3B));\\n(b) $10,000.\\n[45/2018]\\nIncome Tax Act 1947\\n2020 Ed.\\n1052\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nRemission of tax of companies for year of assessment 2020\\n92I. Where the Comptroller is satisfied that the remission of tax\\nwould be beneficial to a company, then there is to be remitted the tax\\npayable for the year of assessment 2020 by the company of an amount\\nequal to the lower of the following:\\n(a) 25% of the tax payable for that year of assessment\\n(excluding any tax levied and paid or payable pursuant\\nto section 43(3), (3A) and (3B));\\n(b) $15,000.\\n[41/2020]\\nRepayment of tax\\n93.—(1) If it is proved to the Comptroller’s satisfaction that any\\nperson for any year of assessment has paid tax, by deduction or\\notherwise, in excess of the amount payable under the provisions of\\nthis Act, such person is entitled to have the amount so paid in excess\\nrefunded.\\n(2) Every claim for repayment under this section must be made\\nwithin 6 years (if the year of assessment to which the claim relates is\\n2007 or a preceding year of assessment) or 4 years (if the year of\\nassessment to which the claim relates is 2008 or a subsequent year of\\nassessment) from the end of the year of assessment to which the claim\\nrelates.\\n(3) This section does not operate to extend any time limit for appeal\\nor validate any objection or appeal which is otherwise invalid or\\nauthorise the revision of any assessment or other matter which has\\nbecome final and conclusive.\\n(4) [Deleted by Act 19 of 2013]\\n(5) Where through death, incapacity, bankruptcy, liquidation or\\nother cause a person who would, but for such cause, have been\\nentitled to make a claim under subsection (1) is unable to do so, the\\nperson’s executor, trustee or receiver (as the case may be) is entitled\\nto have refunded to the executor, trustee or receiver for the benefit of\\nsuch person or the person’s estate any tax paid in excess within the\\nmeaning of subsection (1).\\nIncome Tax Act 1947\\n1053\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(6) The Comptroller must certify any amount repayable under this\\nsection and must cause repayment to be made immediately.\\n(7) Where an order or decision by the Board of Review or by any\\ncourt gives rise to any claim for a refund of tax, the Comptroller may,\\nwhere the Comptroller has given written notice of the Comptroller’s\\nintention to appeal against such order or decision, withhold the refund\\nuntil such time as the appeal is finally determined.\\n(8) Where a refund is withheld under subsection (7), the\\nComptroller\\nmust\\npay\\ninterest\\nat\\nthe\\nrate\\nmentioned\\nin\\nsubsection (9) with effect from the date of the order or decision\\nappealed against on the amount of refund ultimately determined to be\\ndue as a result of any appeal.\\n[2/2016]\\n(9) In subsection (8), the rate of interest is —\\n(a) for any part of the period for which interest is payable\\n(called in this subsection the interest period) up to and\\nincluding 30 June 2016, 5% per annum;\\n(b) for any part of the interest period that is later but falling\\nbefore the publication date, the average of the prime\\nlending rates for such months in the previous year as are\\nprescribed by rules made under section 7;\\n(c) for any part of the interest period falling on or after the\\npublication date but within the period between 1 January\\nand 31 March (both dates inclusive) of any year before\\n2025, the prime lending rate for the year that is 2 years\\nbefore that year;\\n[Act 30 of 2023 wef 30/10/2023]\\n(d) for any part of the interest period falling on or after the\\npublication date but within the period between 1 April and\\n31 December (both dates inclusive) of any year before\\n2024, the prime lending rate for the previous year; or\\n[Act 30 of 2023 wef 30/10/2023]\\n(e) for any part of the interest period falling on or after 1 April\\n2024, the rate as prescribed by rules made under section 7.\\n[Act 30 of 2023 wef 30/10/2023]\\n[34/2016]\\nIncome Tax Act 1947\\n2020 Ed.\\n1054\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(10) In subsection (9), “publication date” means 29 December\\n2016.\\n[34/2016]\\n(11) In subsection (9)(c) and (d), the prime lending rate for any year\\nis the average of the prime lending rates for the months of October,\\nNovember and December of that year, or such other months\\nprescribed by rules made under section 7 in their place, of such\\nfinancial institution or financial institutions in Singapore as the\\nMinister may determine, rounded to the nearest 0.5%, or another\\npercentage prescribed by rules made under that section in its place.\\n[34/2016]\\n(12) Rules\\nmade\\nunder\\nsection\\n7\\nfor\\nthe\\npurpose\\nof\\nsubsection (9)(e) may prescribe different rates for different parts of\\nthe interest period.\\n[Act 30 of 2023 wef 30/10/2023]\\nRelief in respect of error or mistake\\n93A.—(1) If any person alleges that for any year of assessment —\\n(a) an assessment is excessive; or\\n(b) any unabsorbed loss, allowance or donation that may be\\ncarried forward ought to be of a higher amount than that set\\nout in an assessment,\\nby reason of some error or mistake —\\n(c) in the return or statement made by the person for the\\npurposes of the assessment; or\\n(d) where the person is exempted from liability to furnish a\\nreturn under section 62(2), in the notice of assessment\\nserved on the person,\\nthe person may, at any time not later than 6 years (if the year of\\nassessment within which the assessment was made is 2007 or a\\npreceding year of assessment) or 4 years (if the year of assessment\\nwithin which the assessment is made is 2008 or a subsequent year of\\nassessment) after the end of the year of assessment within which the\\nassessment was made, make an application in writing to the\\nComptroller for relief.\\nIncome Tax Act 1947\\n1055\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(1A) An application by a person on the basis of an error or a\\nmistake, for the year of assessment 2019 or any subsequent year of\\nassessment, in the amount of any income, expense, outgoing or loss in\\nconnection with any transaction between the person and a related\\nparty of the person, must be supported by transfer pricing\\ndocumentation for that transaction that satisfies section 34F(5).\\n[39/2017]\\n[Act 33 of 2022 wef 04/11/2022]\\n(1B) To avoid doubt, subsection (1A) applies whether or not the\\nperson is a company, firm, partner of a partnership or trustee of a trust\\nto which section 34F applies.\\n[39/2017]\\n(2) On receiving the application, the Comptroller must inquire into\\nthe matter and must, subject to this section, give, by way of\\nrepayment of tax or an amendment to the assessment, such relief in\\nrespect of the error or mistake as appears to the Comptroller to be\\nreasonable and just.\\n(3) No relief by way of repayment of tax may be given under this\\nsection in respect of an error or a mistake as to the basis on which the\\nliability of the applicant ought to have been computed when the return\\nor statement was in fact made on the basis of or in accordance with\\nthe practice of the Comptroller generally prevailing at the time when\\nthe return or statement was made.\\n(3A) No amendment may be made to the assessment under this\\nsection when the return or statement was in fact made on the basis of\\nor in accordance with the practice of the Comptroller generally\\nprevailing at the time when the return or statement was made.\\n(4) In\\ndetermining\\nany\\napplication\\nunder\\nthis\\nsection,\\nthe\\nComptroller must have regard to all the relevant circumstances of\\nthe case, and in particular must consider whether the granting of relief\\nwould result in the exclusion from charge to tax of income of the\\napplicant, and for this purpose the Comptroller may take into\\nconsideration the liability of the applicant and assessments made\\nupon the applicant in respect of other years.\\n(5) Section 79\\napplies\\nin\\nrespect\\nof an\\nappeal\\nagainst a\\ndetermination of the Comptroller under this section except that no\\nIncome Tax Act 1947\\n2020 Ed.\\n1056\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nsuch appeal may be entertained until the sum of $250 has been\\ndeposited with the secretary to the Board of Review.\\n(6) The sum mentioned in subsection (5) must be refunded in the\\nevent of the appeal being allowed.\\n(7) The Board of Review may, if in its opinion the appeal was\\nvexatious or frivolous, order that the whole or any part of the\\naforesaid sum be forfeited and awarded to the Comptroller as costs.\\nPART 20\\nOFFENCES AND PENALTIES\\nGeneral penalties\\n94.—(1) Except as provided in section 94A, any person who\\ncontravenes any of the provisions of this Act shall be guilty of an\\noffence.\\n(2) Any person guilty of an offence under this section for which no\\nother penalty is provided shall be liable on conviction to a fine not\\nexceeding $5,000 and in default of payment to imprisonment for a\\nterm not exceeding 6 months.\\n[27/2021]\\n(3) Except in the case of a notice in the Gazette under section 68(2),\\nno person shall be liable to prosecution for an offence under this\\nsection in respect of failure to comply with the terms of any notice\\nissued under the provisions of this Act unless the notice has been\\nserved on the person personally or by registered post.\\n(4) [Deleted by Act 19 of 2013]\\n(5) [Deleted by Act 19 of 2013]\\n(6) The Comptroller may compound any offence punishable under\\nthis section (including an offence for the contravention of a provision\\nthat has been repealed), and may before judgment stay or compound\\nany proceedings thereunder.\\nPenalty for failure to make return\\n94A.—(1) Any person who fails or neglects without reasonable\\nexcuse to comply with any provision of section 62 or 71(1) shall be\\nIncome Tax Act 1947\\n1057\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nguilty of an offence and shall be liable on conviction to a fine not\\nexceeding $5,000 and in default of payment to imprisonment for a\\nterm not exceeding 6 months.\\n[27/2021]\\n(2) Where any person has been convicted of an offence —\\n(a) for failing to comply with section 62(3) and such\\nconviction is subsequent to a conviction for an offence\\nfor failing to comply with section 62(1);\\n(b) for failing to comply with any provision of section 62 or\\n71(1) and such conviction is a second or subsequent\\nconviction; or\\n(c) for failing to comply with any provision of section 71(1)\\nand such conviction is subsequent to a conviction for an\\noffence for failing to comply with any provision of\\nsection 62,\\nin respect of the same year of assessment, the person shall be liable to\\na further penalty of $100 for every day during which the offence is\\ncontinued after such conviction.\\n[27/2021]\\n(3) Any person who fails or neglects without reasonable excuse to\\ncomply with section 62 or 71(1) in respect of any year of assessment\\nfor 2 years or more shall be guilty of an offence and shall be liable on\\nconviction to —\\n(a) a penalty equal to double the amount of tax which the\\nComptroller assesses the person to be liable for that year of\\nassessment\\nafter\\ndetermining,\\nto\\nthe\\nbest\\nof\\nthe\\nComptroller’s judgment, the amount of the person’s\\nchargeable income; and\\n(b) a fine not exceeding $5,000,\\nand in default of payment to imprisonment for a term not exceeding\\n6 months.\\n[27/2021]\\n(4) Except in the case of a notice in the Gazette under section 62(1),\\nno person shall be liable to prosecution for an offence under this\\nsection in respect of failure to comply with the terms of any notice\\nIncome Tax Act 1947\\n2020 Ed.\\n1058\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nissued under the provisions of this Act unless the notice has been\\nserved on the person personally or by registered post.\\n(5) The Comptroller may compound any offence punishable under\\nthis section.\\nPenalty for incorrect return, etc.\\n95.—(1) Subject to the provisions of Part 18, every person who —\\n(a) makes an incorrect return by omitting or understating any\\nincome of which the person is required by this Act to make\\na return;\\n(b) gives any incorrect information in relation to any matter\\naffecting the person’s own liability to tax or the liability of\\nany other person or of a partnership; or\\n(c) fails to comply with section 76(8),\\nshall be guilty of an offence for which, on conviction, the person shall\\npay a penalty equal to —\\n(d) the amount of tax;\\n(e) the amount of PIC bonus; or\\n(f) the amount of tax and the amount of PIC bonus,\\nas the case may be, that has been undercharged, obtained, or\\nundercharged and obtained as a result of the incorrect return or\\ninformation or failure, or that would have been so undercharged,\\nobtained, or undercharged and obtained if the return or information\\nhad been accepted as correct or if a notice had not been provided in\\naccordance with section 76(8).\\n(2) Every person who without reasonable excuse or through\\nnegligence —\\n(a) makes an incorrect return by omitting or understating any\\nincome of which the person is required by this Act to make\\na return;\\n(b) gives any incorrect information in relation to any matter\\naffecting the person’s own liability to tax or the liability of\\nany other person or of a partnership; or\\nIncome Tax Act 1947\\n1059\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) fails to comply with section 76(8),\\nshall be guilty of an offence for which, on conviction, the person shall\\npay a penalty equal to double —\\n(d) the amount of tax;\\n(e) the amount of PIC bonus; or\\n(f) the amount of tax and the amount of PIC bonus,\\nas the case may be, that has been undercharged, obtained, or\\nundercharged and obtained as a result of the incorrect return or\\ninformation or failure, or that would have been so undercharged,\\nobtained, or undercharged and obtained if the return or information\\nhad been accepted as correct or if a notice had not been provided in\\naccordance with section 76(8), and shall also be liable to a fine not\\nexceeding $5,000 or to imprisonment for a term not exceeding 3 years\\nor to both.\\n(3) The Comptroller may compound any offence punishable under\\nsubsection (1) or (2), and may before judgment stay or compound any\\nproceedings thereunder.\\n(3A) In this section, a reference to the amount of PIC bonus that has\\nbeen obtained by a person as a result of an incorrect return or\\ninformation, or that would have been so obtained if the return or\\ninformation had been accepted as correct, excludes an amount of PIC\\nbonus that the person is entitled to.\\n[37/2014]\\n(4) In this\\nsection, “PIC bonus” means a payment under\\nsection 37H.\\nTax evasion and wilful action to obtain PIC bonus\\n96.—(1) Any person who wilfully with intent to evade or to assist\\nany other person to evade tax, or to obtain or to assist any other person\\nto obtain a PIC bonus or a higher amount of PIC bonus, or both —\\n(a) omits from a return made under this Act any income which\\nshould be included;\\n(b) makes any false statement or entry in any return made\\nunder this Act or in any notice made under section 76(8);\\nIncome Tax Act 1947\\n2020 Ed.\\n1060\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) gives any false answer, whether verbally or in writing, to\\nany question or request for information asked or made in\\naccordance with the provisions of this Act; or\\n(d) fails to comply with section 76(8),\\nshall be guilty of an offence for which, on conviction, the person shall\\npay a penalty of treble —\\n(e) the amount of tax;\\n(f) the amount of PIC bonus; or\\n(g) the amount of tax and the amount of PIC bonus,\\nas the case may be, that has been undercharged, obtained, or\\nundercharged and obtained as a result of the offence, or that would\\nhave been undercharged, obtained, or undercharged and obtained if\\nthe offence had not been detected, and shall also be liable to a fine not\\nexceeding $10,000 or to imprisonment for a term not exceeding\\n3 years or to both.\\n(2) When an individual has been convicted for —\\n(a) 3 or more offences under this section, section 37M(3) or\\nsection 37S(3); or\\n[Act 30 of 2023 wef 30/10/2023]\\n(b) one offence under this section and one offence under\\nsection 96A, 37M(4) or 37S(4),\\nthe imprisonment the individual shall be liable to shall not be less\\nthan 6 months.\\n[Act 30 of 2023 wef 30/10/2023]\\n(3) Whenever in any proceedings under this section it is proved that\\nany false statement or entry is made in any return furnished under this\\nAct or notice made under section 76(8) by or on behalf of any person,\\nthat person is presumed, until the contrary is proved, to have made\\nthat false statement or entry with intent to evade tax, to obtain a PIC\\nbonus or a higher amount of PIC bonus, or both, as the case may be.\\n(4) The Comptroller may compound any offence under this section\\nand may before judgment stay or compound any proceedings\\nthereunder.\\nIncome Tax Act 1947\\n1061\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(4A) In this section, a reference to the amount of PIC bonus that has\\nbeen obtained by a person as a result of an offence, or that would have\\nbeen so obtained if the offence had not been detected, excludes an\\namount of PIC bonus that the person is entitled to.\\n[37/2014]\\n(5) In this\\nsection, “PIC bonus” means a payment under\\nsection 37H.\\nSerious fraudulent tax evasion and action to obtain PIC bonus\\n96A.—(1) Any person who wilfully with intent to evade or to assist\\nany other person to evade tax, or to obtain or to assist any other person\\nto obtain a PIC bonus or a higher amount of PIC bonus, or both —\\n(a) prepares or maintains or authorises the preparation or\\nmaintenance of any false books of account or other records\\nor falsifies or authorises the falsification of any books of\\naccount or records; or\\n(b) makes use of any fraud, art or contrivance or authorises the\\nuse of any such fraud, art or contrivance,\\nshall be guilty of an offence for which, on conviction, the person shall\\npay a penalty of 4 times —\\n(c) the amount of tax;\\n(d) the amount of PIC bonus; or\\n(e) the amount of tax and the amount of PIC bonus,\\nas the case may be, that has been undercharged, obtained, or\\nundercharged and obtained as a result of the offence, or that would\\nhave been undercharged, obtained, or undercharged and obtained if\\nthe offence had not been detected, and shall also be liable to a fine not\\nexceeding $50,000 or to imprisonment for a term not exceeding\\n5 years or to both.\\n(2) When an individual has been convicted for —\\n(a) 2 or more offences under this section, section 37M(4) or\\nsection 37S(4); or\\n[Act 30 of 2023 wef 30/10/2023]\\nIncome Tax Act 1947\\n2020 Ed.\\n1062\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) one offence under this section and one offence under\\nsection 96, 37M(3) or 37S(3),\\nthe imprisonment the individual shall be liable to shall not be less\\nthan 6 months.\\n[Act 30 of 2023 wef 30/10/2023]\\n(3) Where in any proceedings under this section it is proved that any\\nfalse statement or entry is made in any books of account or other\\nrecords maintained by or on behalf of any person, that person is\\npresumed, until the contrary is proved, to have made that false\\nstatement or entry with intent to evade tax, to obtain a PIC bonus or a\\nhigher amount of PIC bonus, or both, as the case may be.\\n(4) The Comptroller may compound any offence under this section\\nand may before judgment stay or compound any proceedings\\nthereunder.\\n(4A) In this section, a reference to the amount of PIC bonus that has\\nbeen obtained by a person as a result of an offence, or that would have\\nbeen so obtained if the offence had not been detected, excludes an\\namount of PIC bonus that the person is entitled to.\\n[37/2014]\\n(5) In this\\nsection, “PIC bonus” means a payment under\\nsection 37H.\\nPenalties for offences by authorised and unauthorised persons\\n97. Any person who —\\n(a) being a person appointed for the due administration of this\\nAct or any assistant employed in connection with the\\nassessment and collection of tax —\\n(i) demands from any person an amount in excess of the\\nauthorised assessment or tax;\\n(ii) withholds for the person’s own use or otherwise any\\nportion of the amount of tax collected;\\n(iii) renders a false return, whether verbal or in writing, of\\nthe amounts of tax collected or received by the\\nperson; or\\nIncome Tax Act 1947\\n1063\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(iv) defrauds any person, embezzles any money or\\notherwise uses the person’s position so as to deal\\nwrongfully either with the Comptroller or any other\\nindividual; or\\n(b) not being authorised under this Act to do so, collects or\\nattempts to collect tax under this Act,\\nshall be guilty of an offence and shall be liable on conviction to a fine\\nnot exceeding $10,000 or to imprisonment for a term not exceeding\\n3 years or to both.\\nPenalty for obstructing Comptroller or officers\\n98.—(1) Any person who obstructs or hinders the Comptroller or\\nany officer in the discharge of his or her duties or the exercise of his or\\nher powers under this Act shall be guilty of an offence and shall be\\nliable on conviction to a fine not exceeding $10,000 or to\\nimprisonment for a term not exceeding 12 months or to both.\\n[45/2018]\\n(2) The\\nComptroller\\nmay\\ncompound\\nan\\noffence\\nunder\\nsubsection (1).\\n[45/2018]\\nTax to be payable despite any proceedings for penalties\\n99. The institution of proceedings for, or the imposition of, a\\npenalty, fine or term of imprisonment under this Act does not relieve\\nany person from liability to payment of any tax for which the person\\nis or may be liable.\\nProvisions relating to penalty\\n100.—(1) Any interest imposed under section 85(2) or penalty\\nimposed under this Act is not deemed to be part of the tax paid for the\\npurposes of claiming relief under any of the provisions of this Act.\\n(2) Any penalty imposed under section 13D(2), (4) or (6), 13O(3)\\nor (5), 37(18B), 45(4), 87(1) or 91(4) is deemed to be interest on tax\\nfor the purposes of section 33(2) of the Limitation Act 1959.\\n[32/2019; 41/2020]\\nIncome Tax Act 1947\\n2020 Ed.\\n1064\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nConsent for prosecution\\n101.—(1) No prosecution may be commenced in respect of an\\noffence under section 37L, 37M, 37S, 45(5), 94, 94A, 95, 96, 96A or\\n105M except at the instance or with the consent of the Comptroller or\\nthe Public Prosecutor.\\n[2/2016]\\n[Act 30 of 2023 wef 30/10/2023]\\n(2) The Comptroller may authorise either generally or specifically\\nan officer to compound any offence under sections 34F(8), 37L, 37M\\n(except subsection (4)), 37S (except subsection (4)), 45(5), 50(11A)\\n(including that provision as applied by section 50A(4) or 50C(6)), 94,\\n94A, 95, 96, 96A, 105M(1) and (1B), and section 50(11B) in Part 3 of\\nthe Third Schedule (including that provision as applied by\\nsection 50A(4) or 50C(6) in Part 3 of the Third Schedule).\\n[2/2016; 32/2019; 27/2021]\\n[Act 30 of 2023 wef 30/10/2023]\\n(3) No prosecution may be commenced in respect of an offence\\nunder section 6, 97 or 98 except at the instance or with the consent of\\nthe Public Prosecutor.\\n[Act 30 of 2023 wef 30/10/2023]\\nService of summons\\n102.—(1) Every summons issued by a court against any person in\\nconnection with any offence under this Act may be served on the\\nperson —\\n(a) by delivering the summons to the person or to some adult\\nmember of the person’s family at his or her last known\\nplace of residence;\\n(b) by leaving the summons at the person’s usual or last known\\nplace of residence or business in an envelope addressed to\\nthe person;\\n(c) by sending the summons by registered post addressed to\\nthe person at the person’s usual or last known place of\\nresidence or business; or\\nIncome Tax Act 1947\\n1065\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(d) where the person is a body of persons or a company —\\n(i) by delivering the summons to the secretary or other\\nlike officer of the body of persons or company at its\\nregistered office or principal place of business; or\\n(ii) by\\nsending\\nthe\\nsummons\\nby\\nregistered\\npost\\naddressed to the body of persons or company at its\\nregistered office or principal place of business.\\n(2) Any summons sent by registered post to any person in\\naccordance with subsection (1) is deemed to be duly served on the\\nperson to whom the letter is addressed at the time when the letter\\nwould in the ordinary course of post be delivered and in proving\\nservice of the summons, it is sufficient to prove that the envelope\\ncontaining the summons was properly addressed, stamped and posted\\nby registered post.\\nNotice to attend court\\n102A.—(1) Where the Comptroller has reasonable grounds to\\nbelieve that a person has committed an offence under this Act (or any\\nsubsidiary legislation made under this Act) that is punishable by a\\nfine or by an imprisonment term not exceeding 12 months or both, the\\nComptroller may, in lieu of applying to a court for a summons, serve\\non that person a written notice, containing such information as may\\nbe prescribed by rules made under section 7, requiring that person to\\nattend at the court described, at the time and on the date specified in\\nthe notice.\\n(2) The Comptroller must, if so required by a court, produce a copy\\nof the notice to the court.\\n(3) The notice may be served on the person alleged to have\\ncommitted the offence in the manner provided in section 102, as if it\\nwere a summons issued by a court.\\n(4) On a person appearing before a court pursuant to such notice,\\nthe court is to proceed as though the person were produced before the\\ncourt under section 153 of the Criminal Procedure Code 2010.\\nIncome Tax Act 1947\\n2020 Ed.\\n1066\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(5) If a person on whom such notice has been served fails to appear\\nbefore a court in accordance with the notice, the court may, if satisfied\\nthat the notice was duly served —\\n(a) issue a warrant for the arrest of the person, unless that\\nperson has before that date been permitted to compound\\nthe offence; or\\n(b) proceed with the matter in the absence of the person\\npursuant to section 156 of the Criminal Procedure\\nCode 2010, and a reference in that section to a summons\\nor notice to attend court is to a written notice served under\\nthis section.\\n(6) Upon a person arrested pursuant to a warrant issued under\\nsubsection (5)(a) being produced before a court, the court is to\\nproceed as though the person were produced under section 153 of the\\nCriminal Procedure Code 2010.\\n(7) The Comptroller may, at any time before the date specified in\\nthe notice, cancel the notice.\\n[Act 30 of 2023 wef 01/01/2024]\\nSaving for criminal proceedings\\n103. The provisions of this Act do not affect any criminal\\nproceedings under any other written law.\\nAdmissibility of certain statements and documents as evidence\\n104.—(1) Statements made or documents produced by or on behalf\\nof any person are not inadmissible in evidence against the person in\\nany proceedings to which this section applies by reason only that the\\nperson was or may have been induced to make the statements or\\nproduce the documents by any inducement or promise lawfully given\\nor made by a person having any official duty under, or being\\nemployed in the administration of, this Act.\\n(2) This section applies to any proceedings against the person in\\nquestion —\\n(a) under section 37L, 37M, 37S, 95, 96 or 96A; or\\n[Act 30 of 2023 wef 30/10/2023]\\nIncome Tax Act 1947\\n1067\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) for the recovery of any sum due from the person, whether\\nby way of tax or penalty.\\n[2/2016]\\nProtection of informers\\n104A.—(1) Except as provided in subsection (3), no witness in any\\ncivil or criminal proceedings commenced on or after 16 November\\n2021 is obliged or permitted —\\n(a) to disclose the identity of an informer who has given any\\ninformation (whether the information is given before, on or\\nafter that date) with respect to an offence under this Act; or\\n(b) to answer any question if the answer to the question would\\nlead, or would tend to lead, to the discovery of the identity\\nof the informer.\\n[27/2021]\\n(2) If any document which is in evidence or liable to inspection in\\nany civil or criminal proceedings contains any entry in which any\\ninformer is named or described or which may lead to the discovery of\\nthe informer’s identity, the court must cause the entry to be concealed\\nfrom view or to be obliterated so far only as may be necessary to\\nprotect the informer from discovery.\\n[27/2021]\\n(3) If —\\n(a) in any proceedings for an offence under any written law,\\nthe court, after full enquiry into the case, believes that the\\ninformer wilfully made a material statement which the\\ninformer knew or believed to be false or did not believe to\\nbe true; or\\n(b) in any other proceedings, the court is of the opinion that\\njustice cannot be fully done between the parties to the\\nproceedings without the discovery of the informer,\\nthe court may permit enquiry and require full disclosure concerning\\nthe informer.\\n[27/2021]\\nIncome Tax Act 1947\\n2020 Ed.\\n1068\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(4) In this section, a reference to civil proceedings includes any\\nproceedings before the Board of Review.\\n[27/2021]\\nJurisdiction of court\\n105. Despite any provision to the contrary in the Criminal\\nProcedure Code 2010, a District Court or a Magistrate’s Court has\\njurisdiction to try any offence under this Act and has power to impose\\nthe full penalty or punishment in respect of the offence.\\nPART 20A\\nEXCHANGE OF INFORMATION UNDER AVOIDANCE\\nOF DOUBLE TAXATION ARRANGEMENTS AND\\nEXCHANGE OF INFORMATION ARRANGEMENTS\\nInterpretation of this Part\\n105A.—(1) In this Part —\\n“avoidance\\nof\\ndouble\\ntaxation\\narrangement”\\nmeans\\nan\\narrangement having effect under section 49;\\n“competent authority”, in relation to a prescribed arrangement,\\nmeans a person or an authority whom the Comptroller is\\nsatisfied is authorised to make a request to the Comptroller\\nfor information —\\n(a) if it is an avoidance of double taxation arrangement,\\nunder the EOI provision of the arrangement; or\\n(b) if it is an EOI arrangement, under the provisions of\\nthe arrangement;\\n“exchange of information arrangement” or “EOI arrangement”\\nmeans an arrangement having effect under section 105BA;\\n“exchange of information provision” or “EOI provision”, in\\nrelation to an avoidance of double taxation arrangement,\\nmeans a provision in that arrangement which provides\\nexpressly for the exchange of information concerning the\\ntax positions of persons;\\nIncome Tax Act 1947\\n1069\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n“prescribed arrangement” means an avoidance of double\\ntaxation arrangement which contains an EOI provision, or\\nan EOI arrangement;\\n“tax position”, in relation to a person, means the person’s\\nposition —\\n(a) as regards any tax —\\n(i) of the country with whose government the\\navoidance of double taxation arrangement or\\nEOI arrangement in question was made; and\\n(ii) that is covered by the EOI provision of the\\navoidance of double taxation arrangement or\\nby the EOI arrangement; or\\n(b) as regards —\\n(i) past, present and future liability to pay any tax\\nmentioned in paragraph (a);\\n(ii) penalties, interest and other amounts that have\\nbeen paid, or are or may be payable, by or to the\\nperson in connection with any such tax; and\\n(iii) claims, elections, applications and notices that\\nhave been or may be made or given in\\nconnection with any such tax.\\n(2) A reference in this Part to the tax position of a person includes a\\nreference to the tax position of —\\n(a) a person (not being an individual) that has ceased to exist;\\nand\\n(b) an individual who has died.\\n(3) A reference in this Part to the tax position of a person is a\\nreference to the person’s tax position at any time or in relation to any\\nperiod, unless otherwise stated in the prescribed arrangement in\\nquestion.\\n(4) To avoid doubt, the reference to tax in the definition of “tax\\nposition” in subsection (1) is a reference to any type of tax that is\\ncovered by the EOI provision of the avoidance of double taxation\\nIncome Tax Act 1947\\n2020 Ed.\\n1070\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\narrangement in question or by the EOI arrangement in question, and\\nis not limited to income tax or tax of a similar character.\\n(5) In relation to an EOI arrangement which is a multilateral treaty\\nreferred to in section 105BA(1A) —\\n(a) the reference in the definition of “competent authority” to a\\nperson or an authority authorised under the provisions of\\nthe EOI arrangement to make a request to the Comptroller\\nfor information is a reference to a person or an authority of\\na country that is a Party to the treaty authorised to make\\nsuch a request; and\\n(b) the reference in the definition of “tax position” to any tax\\nof\\nthe\\ncountry\\nwith\\nwhose\\ngovernment\\nthe\\nEOI\\narrangement was made and that is covered by the\\narrangement, is a reference to any tax of a country that is\\na Party to the treaty and covered by the treaty.\\n[37/2014]\\nPurpose of this Part\\n105B. The purpose of this Part is to facilitate the disclosure of\\ninformation to a competent authority —\\n(a) under an avoidance of double taxation arrangement in\\naccordance with the EOI provision in that arrangement; or\\n(b) under and in accordance with an EOI arrangement.\\nExchange of information arrangement\\n105BA.—(1) If the Minister by order declares that an arrangement\\nspecified in the order has been made with the government of any\\ncountry, or the governments of 2 or more countries, outside Singapore\\nfor the exchange of information concerning the tax positions of\\npersons (whether upon request by an authority of a country to the\\narrangement or otherwise), and that it is expedient that that\\narrangement should have effect, then the arrangement has effect\\ndespite anything in any written law.\\n[37/2014; 2/2016]\\n(1A) An arrangement under subsection (1) includes a multilateral\\ntreaty to which Singapore is a Party, the purpose or one of the\\nIncome Tax Act 1947\\n1071\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\npurposes of which is the exchange of information concerning the tax\\npositions of persons (whether upon request by an authority of a Party\\nto the treaty or otherwise).\\n[37/2014; 2/2016]\\n(2) An order made under this section may be revoked by a\\nsubsequent order.\\n(3) Where an arrangement has effect by virtue of this section, the\\nobligation as to secrecy imposed by section 6 does not prevent the\\ndisclosure to the competent authority under the arrangement of such\\ninformation as is required to be disclosed under the arrangement.\\n105C. [Repealed by Act 19 of 2013]\\nRequest for information\\n105D.—(1) The\\ncompetent\\nauthority\\nunder\\na\\nprescribed\\narrangement\\nmay\\nmake\\na\\nrequest\\nto\\nthe\\nComptroller\\nfor\\ninformation\\nconcerning\\nthe\\ntax\\nposition\\nof\\nany\\nperson\\nin\\naccordance with —\\n(a) if it is an avoidance of double taxation arrangement, the\\nEOI provision of that arrangement; or\\n(b) if it is an EOI arrangement, the provisions of that\\narrangement.\\n(2) Unless the Comptroller otherwise permits, the request must set\\nout the information prescribed in the Eighth Schedule.\\n(3) Every request is subject to and must be dealt with in accordance\\nwith the terms of the prescribed arrangement.\\n(4) For the purposes of subsection (3), the terms of the prescribed\\narrangement are not to be construed in such a way as to prevent the\\nComptroller from complying with, or to permit the Comptroller to\\ndecline to comply with, a request for information merely because —\\n(a) Singapore does not need the information for its own tax\\npurposes; or\\n(b) the information is held by a bank or other financial\\ninstitution, a nominee or a person acting in an agency or a\\nIncome Tax Act 1947\\n2020 Ed.\\n1072\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nfiduciary capacity, or it relates to the ownership interests in\\nan entity.\\nComptroller to serve notice of request on certain persons\\n105E.—(1) After receipt of a request under section 105D for any\\ninformation which, in the Comptroller’s opinion, is information\\nmentioned in subsection (2), the Comptroller must serve notice of the\\nrequest on the person identified in the request as the person in relation\\nto whom the information is sought.\\n(1A) Where the request mentioned in subsection (1), in the\\nComptroller’s opinion, does not contain sufficient information for\\nthe Comptroller to serve notice under subsection (1), the Comptroller\\nmust, after he or she discovers such information from information\\nalready\\nin\\nthe\\nComptroller’s\\npossession\\nor\\nobtained\\nunder\\nsection 105F or 105G, serve notice of the request on that person.\\n[37/2014]\\n(2) The information mentioned in subsection (1) or (1A) is\\ninformation that is protected from unauthorised disclosure under —\\n(a) section 47 of the Banking Act 1970 including that section\\nas applied by section 55ZI(1) of that Act; or\\n(b) section 49 of the Trust Companies Act 2005.\\n[37/2014; 1/2020]\\n(3) [Deleted by Act 19 of 2013]\\n(4) Notice under subsection (1) or (1A) need not be served on any\\nperson —\\n(a) if the Comptroller —\\n(i) does not have any information of the person upon\\nwhom service may be effected in accordance with\\nsection 8;\\n(ii) is of the opinion that this is likely to prevent or\\nunduly delay the effective exchange of information\\nunder the prescribed arrangement; or\\n(iii) is of the opinion that this is likely to prejudice any\\ninvestigation into any alleged breach of any law\\nIncome Tax Act 1947\\n1073\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nrelating to tax of the country of the competent\\nauthority making the request (whether the breach\\nwould result in the imposition of a criminal or civil\\npenalty); or\\n(b) on such other ground as may be prescribed under\\nsection 105H.\\n[37/2014]\\n(5) Rules made under section 105H may provide for the particulars\\nto be given in a notice under subsection (1) or (1A).\\n[37/2014]\\nPower of Comptroller to obtain information\\n105F.—(1) Sections 65 to 65D (except section 65B(1D)) have\\neffect for the purpose of enabling the Comptroller to obtain any\\ninformation for the purpose of complying with a request under\\nsection 105D; and section 65E also has effect in relation to a notice\\nissued under section 65B for the purpose of complying with such a\\nrequest.\\n[45/2018]\\n(2) For the purpose of subsection (1) —\\n(a) the reference in section 65 to the purpose of obtaining full\\ninformation in respect of any person’s income is a\\nreference to the purpose mentioned in subsection (1);\\n(b) a reference in section 65B to the purposes of this Act is a\\nreference to the purpose mentioned in subsection (1); and\\n(c) references in section 65B to proceedings for an offence\\nunder this Act, proceedings for the recovery of tax or\\npenalty and proceedings by way of an appeal against an\\nassessment are references to proceedings for an offence\\nunder the law relating to tax of the country of the\\ncompetent authority making the request, proceedings for\\nthe recovery of tax or penalty under such law, and\\nproceedings by way of an appeal against an assessment\\nor equivalent procedure under such law, respectively.\\nIncome Tax Act 1947\\n2020 Ed.\\n1074\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nPower of Comptroller to obtain information from other\\nauthorities\\n105G.—(1) For the purpose of complying with a request under\\nsection 105D, the Comptroller may request the Comptroller of Goods\\nand Services Tax, the Comptroller of Property Tax, the Chief\\nAssessor or the Commissioner of Stamp Duties to transmit\\ninformation in his or her possession to the Comptroller.\\n(2) Despite any obligation as to secrecy imposed under any written\\nlaw or rule of law, the Comptroller of Goods and Services Tax, the\\nComptroller\\nof\\nProperty\\nTax,\\nthe\\nChief\\nAssessor\\nor\\nthe\\nCommissioner of Stamp Duties may transmit to the Comptroller\\ninformation requested by him or her under subsection (1).\\nInformation may be used for administration of Act\\n105GA. To\\navoid\\ndoubt,\\nany\\ninformation\\nobtained\\nunder\\nsection 105F or 105G may be used not only for the purpose of\\ncomplying with a request under section 105D, but also for any\\npurpose connected with the administration of this Act, including the\\ninvestigation or a prosecution for an offence alleged or suspected to\\nhave been committed under this Act.\\nRules for purposes of this Part\\n105H. The Minister may make rules —\\n(a) to prescribe anything which may be prescribed under this\\nPart; and\\n(b) for the purposes of carrying out the provisions of this Part.\\nConfidentiality requirements for judicial review proceedings\\n105HA.—(1) This section applies to a judicial review instituted by\\nany person in respect of —\\n(a) any action taken by the Comptroller to obtain information\\nto comply with a request made under section 105D;\\n(b) any disclosure or intended disclosure by the Comptroller of\\ninformation pursuant to an arrangement that has effect\\nunder section 49 or 105BA; or\\nIncome Tax Act 1947\\n1075\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) any action taken by the Comptroller under this Part or a\\nfailure to take such action,\\nas well as any proceedings in court (however instituted) for a\\nliquidated sum, damages, equitable relief or restitution if a\\nMandatory\\nOrder,\\nProhibiting\\nOrder,\\nQuashing\\nOrder\\nor\\ndeclaration is made pursuant to the judicial review.\\n[37/2014]\\n(2) In any proceedings to which this section applies, no person may\\ninspect or take a copy of any of the following documents without the\\npermission of court:\\n(a) a request made under section 105D;\\n(b) any document relating to the request which is given by or\\nto the Comptroller, to or by the competent authority or a\\nperson acting on behalf of the competent authority.\\n[37/2014]\\n[Act 25 of 2021 wef 01/04/2022]\\n(3) Permission is not to be given under subsection (2) in relation to\\nany document if the court is satisfied that the competent authority has\\nrequested the Comptroller not to disclose that document to any\\nperson.\\n[37/2014]\\n[Act 25 of 2021 wef 01/04/2022]\\n(4) A court may, in any proceedings to which this section applies,\\non the application of the Comptroller, make such order as it may\\nconsider necessary to ensure the confidentiality of anything relating\\nto those proceedings.\\n[37/2014]\\n(5) Every application, affidavit or other document filed with the\\ncourt for the purpose of any proceedings to which this section applies\\nis to be sealed upon the request of the applicant or the Comptroller.\\n[37/2014]\\n(6) All proceedings to which this section applies are to be heard in\\nprivate.\\n[37/2014]\\n[Act 25 of 2021 wef 01/04/2022]\\nIncome Tax Act 1947\\n2020 Ed.\\n1076\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(7) No information relating to any proceedings to which this section\\napplies may be published without the permission of court; and\\npermission is not to be given unless the court is satisfied that the\\ninformation, if published in accordance with such directions as it may\\ngive, would not reveal any matter that —\\n(a) the Comptroller;\\n(b) the person from whom the Comptroller obtains the\\ninformation; or\\n(c) the person in relation to whom information is sought,\\nreasonably wishes to remain confidential.\\n[37/2014]\\n[Act 25 of 2021 wef 01/04/2022]\\n(8) In this section, “judicial review” includes proceedings instituted\\nby way of —\\n(a) an application for a Mandatory Order, a Prohibiting Order\\nor a Quashing Order; or\\n(b) an application for a declaration or an injunction, or any\\nother suit or action, relating to or arising out of any matter\\nreferred to in subsection (1)(a) to (c).\\n[37/2014]\\nPART 20B\\nINTERNATIONAL AGREEMENTS TO\\nIMPROVE TAX COMPLIANCE\\nInterpretation of this Part\\n105I. In this Part —\\n“Action 13 Report” means the Transfer Pricing Documentation\\nand Country‑by‑Country Reporting, Action 13 — 2015 Final\\nReport\\npublished\\nby\\nthe\\nOrganisation\\nfor\\nEconomic\\nCo‑operation and Development on 5 October 2015;\\n“CbCR exchange agreement” means a bilateral or multilateral\\nagreement that is based on a model agreement in the\\nIncome Tax Act 1947\\n1077\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nAction 13 Report, and that requires the exchange of\\ncountry‑by‑country reports;\\n“competent\\nauthority\\nagreement”\\nmeans\\na\\nbilateral\\nor\\nmultilateral\\nagreement\\nto\\nimprove\\ninternational\\ntax\\ncompliance based on the standard for automatic exchange\\nof financial account information in tax matters developed by\\nthe\\nOrganisation\\nfor\\nEconomic\\nCo‑operation\\nand\\nDevelopment;\\n“country‑by‑country report” means a report by that name\\nmentioned in the Action 13 Report, to be made in the\\nformat set out in the Report;\\n“international tax compliance agreement” means an agreement\\nor arrangement that is declared by the Minister, by an order\\nunder section 105K, as an international tax compliance\\nagreement;\\n“person” has the meaning given by section 2(1) and includes a\\npartnership.\\n[15/2016; 34/2016]\\nPurpose of this Part\\n105J. The purpose of this Part is to implement Singapore’s\\nobligations under an international tax compliance agreement, and\\nto enable country‑by‑country reports to be filed with the Comptroller\\nin accordance with the Action 13 Report.\\n[34/2016]\\nInternational tax compliance agreements\\n105K.—(1) The Minister may by order declare any of the following\\nas an international tax compliance agreement for the purposes of this\\nPart:\\n(a) the agreement reached between the Government and the\\nGovernment of the United States of America to facilitate\\ncompliance by financial institutions and other persons in\\nSingapore with the Foreign Account Tax Compliance Act\\nof the United States of America (FATCA);\\nIncome Tax Act 1947\\n2020 Ed.\\n1078\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(aa) a competent authority agreement between —\\n(i) the Government and —\\n(A) the government of another country; or\\n(B) the governments of 2 or more countries; or\\n(ii) the\\nMinister\\nor\\nthe\\nMinister’s\\nauthorised\\nrepresentative and —\\n(A) the authority of another country that exercises a\\npower or carries out a duty corresponding to a\\npower or duty of the Minister or representative;\\nor\\n(B) the authorities of 2 or more countries that\\nexercise\\npowers\\nor\\ncarry\\nout\\nduties\\ncorresponding to a power or duty of the\\nMinister or representative;\\n(ab) a CbCR exchange agreement between —\\n(i) the Government and —\\n(A) the government of another country; or\\n(B) the governments of 2 or more countries; or\\n(ii) the\\nMinister\\nor\\nthe\\nMinister’s\\nauthorised\\nrepresentative and —\\n(A) the authority of another country that exercises a\\npower or carries out a duty corresponding to a\\npower or duty of the Minister or representative;\\nor\\n(B) the authorities of 2 or more countries that\\nexercise\\npowers\\nor\\ncarry\\nout\\nduties\\ncorresponding to a power or duty of the\\nMinister or representative;\\n(b) any agreement modifying or supplementing an agreement\\nin paragraph (a), (aa) or (ab);\\nIncome Tax Act 1947\\n1079\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) any other agreement or arrangement that makes provision\\ncorresponding, or substantially similar, to that made by an\\nagreement in paragraph (a), (aa), (ab) or (b), between —\\n(i) the Government and —\\n(A) the government of another country; or\\n(B) the governments of 2 or more countries; or\\n(ii) the\\nMinister\\nor\\nthe\\nMinister’s\\nauthorised\\nrepresentative and —\\n(A) the authority of another country that exercises a\\npower or carries out a duty corresponding to a\\npower or duty of the Minister or representative;\\nor\\n(B) the authorities of 2 or more countries that\\nexercise\\npowers\\nor\\ncarry\\nout\\nduties\\ncorresponding to a power or duty of the\\nMinister or representative.\\n[15/2016; 34/2016; 39/2017]\\n(2) An order under subsection (1) may only take effect on or after\\nthe date on which the agreement or arrangement enters into force for\\nSingapore or, where there is more than one agreement or arrangement\\nunder the order, may only take effect in relation to each agreement or\\narrangement on or after the date on which that agreement or\\narrangement enters into force for Singapore.\\n[39/2017]\\nProvision of information to Comptroller\\n105L.—(1) Subject to subsection (5), a person falling within any\\ndescription of persons prescribed by regulations (called in this section\\na prescribed person) must provide the Comptroller (or such other\\nperson as may be authorised by the Comptroller) with information of\\na description prescribed by those regulations.\\n[15/2016]\\nIncome Tax Act 1947\\n2020 Ed.\\n1080\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(1A) The information under subsection (1) must be provided —\\n(a) at such times and frequency as may be prescribed by the\\nregulations or as the Comptroller may in any particular\\ncase allow;\\n(b) in such form and manner as may be prescribed by the\\nregulations or as the Comptroller may in any particular\\ncase allow; and\\n(c) using the electronic service, except that the Comptroller\\nmay in any particular case or class of cases permit the\\ninformation to be given in any other manner.\\n[15/2016]\\n(1B) In subsection (1), the reference to a person falling within any\\ndescription of persons prescribed by regulations —\\n(a) excludes one given a written notice by the Comptroller\\npursuant\\nto\\na\\nregulation\\nmade\\nunder\\nsection 105P(2)(ba)(i); and\\n(b) includes one given a written notice by the Comptroller\\npursuant\\nto\\na\\nregulation\\nmade\\nunder\\nsection 105P(2)(ba)(ii).\\n[34/2016]\\n(2) A prescribed person is not excused from providing the\\ninformation by reason only that the person is under a duty not to\\ncollect, use or disclose that information, whether imposed by written\\nlaw, rule of law, any contract or any rule of professional conduct, in\\nrespect of that information.\\n[2/2016]\\n(3) A prescribed person who in good faith and with reasonable care\\ndoes any act for the purpose of complying with subsection (1) is not to\\nbe treated as being in breach of any duty mentioned in subsection (2).\\n[2/2016]\\n(4) No civil or criminal action for a breach of any such duty, other\\nthan a criminal action for an offence under section 105M(3), shall lie\\nagainst the prescribed person —\\nIncome Tax Act 1947\\n1081\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(a) for producing any document or providing any information\\nif the person had done so in good faith and with reasonable\\ncare in compliance with subsection (1); or\\n(b) for doing or omitting to do any act if the person had done or\\nomitted to do the act in good faith and with reasonable care\\nand for the purpose of, or as a result of complying with\\nsubsection (1).\\n[2/2016]\\n(5) Despite subsection (2), subsection (1) does not apply to any\\ninformation subject to legal privilege.\\nOffences\\n105M.—(1) Any person who, without reasonable excuse, fails or\\nneglects to comply with —\\n(a) section 105L(1); or\\n(b) any regulation made under section 105P that requires the\\nperson to apply to the Comptroller for registration or report\\nany information to the Comptroller,\\nshall be guilty of an offence.\\n[27/2021]\\n(1A) Any\\nperson\\nwho\\nis\\nconvicted\\nof\\nan\\noffence\\nunder\\nsubsection (1) shall be liable —\\n(a) to a fine not exceeding $5,000 and in default of payment to\\nimprisonment not exceeding 6 months; and\\n(b) in the case of a continuing offence, to a further fine not\\nexceeding $100 for every day or part of a day during which\\nthe offence continues after conviction.\\n[27/2021]\\n(1B) Any person who, without reasonable excuse, fails or neglects\\nto comply with any requirement imposed by regulations made under\\nsection\\n105P,\\nother\\nthan\\na\\nrequirement\\nmentioned\\nin\\nsubsection (1)(b), shall be guilty of an offence and shall be liable\\non conviction —\\n(a) to a fine not exceeding $1,000 and in default of payment to\\nimprisonment not exceeding 6 months; and\\nIncome Tax Act 1947\\n2020 Ed.\\n1082\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) in the case of a continuing offence, to a further fine not\\nexceeding $50 for every day or part of a day during which\\nthe offence continues after conviction.\\n[27/2021]\\n(2) The\\nComptroller\\nmay\\ncompound\\nany\\noffence\\nunder\\nsubsections (1) and (1B).\\n[Act 33 of 2022 wef 04/11/2022]\\n(3) Any person who, in purported compliance with section 105L(1),\\nproduces to the Comptroller any document which contains any\\ninformation, or provides to the Comptroller any information, known\\nto the person to be false or misleading in a material particular —\\n(a) without indicating to the Comptroller that the information\\nis false or misleading and the part that is false or\\nmisleading; and\\n(b) without providing correct information to the Comptroller if\\nthe person is in possession of, or can reasonably acquire,\\nthe correct information,\\nshall be guilty of an offence and shall be liable on conviction to a fine\\nnot exceeding $10,000 or to imprisonment for a term not exceeding\\n2 years or to both.\\n(3A) Where —\\n(a) a person (X), in order to comply with a regulation\\nmentioned in section 105P(2)(c), requests another person\\n(Y) to provide any information contemplated by an\\nagreement mentioned in section 105P(1) to establish Y’s\\nresidence\\nfor\\na\\ntax\\npurpose\\ncontemplated\\nby\\nthat\\nagreement; and\\n(b) Y, in purported compliance with that request, provides any\\nsuch information to X which Y knows is false or misleading\\nin any material particular,\\nY shall be guilty of an offence and shall be liable on conviction to a\\nfine not exceeding $10,000 or to imprisonment for a term not\\nexceeding 2 years or to both.\\n[15/2016]\\nIncome Tax Act 1947\\n1083\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(3B) Where —\\n(a) X, in order to comply with a regulation mentioned in\\nsection 105P(2)(c), requests Y to provide any information\\ncontemplated\\nby\\nan\\nagreement\\nmentioned\\nin\\nsection\\n105P(1)\\nto\\nestablish\\nanother\\nperson’s\\n(Z)\\nresidence\\nfor\\na\\ntax\\npurpose\\ncontemplated\\nby\\nthat\\nagreement; and\\n(b) Z provides any such information, whether directly or\\nindirectly, to X or Y which Z knows is false or misleading in\\nany material particular,\\nZ shall be guilty of an offence and shall be liable on conviction to a\\nfine not exceeding $10,000 or to imprisonment for a term not\\nexceeding 2 years or to both.\\n[15/2016]\\n(4) In subsection (3), references to the Comptroller include any\\nother person authorised by the Comptroller.\\n[37/2014]\\nAnti‑avoidance\\n105MA.—(1) If —\\n(a) a person enters into any arrangements or takes any action;\\nand\\n(b) in the Comptroller’s view, the main purpose, or one of the\\nmain purposes of the person in entering into the\\narrangements or in taking the action is to avoid any\\nobligation under, or to circumvent the application of\\nsection 105L or any regulation made under section 105P,\\nthen the Comptroller may in writing direct a relevant person that\\nsection 105L or the regulation has effect in relation to the relevant\\nperson as if the arrangements had not been entered into or the action\\nhad not been taken, and section 105L or the regulation then applies\\naccordingly.\\n[37/2014]\\nIncome Tax Act 1947\\n2020 Ed.\\n1084\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(2) In subsection (1), “relevant person” means a person who is\\nsubject to section 105L or the regulation, and whom the Comptroller\\nconsiders should receive the direction.\\n[37/2014]\\nPower of Comptroller to obtain information\\n105N.—(1) Sections 65 to 65D (except section 65B(1D)) have\\neffect for the purpose of enabling the Comptroller to obtain any\\ninformation for the purpose of —\\n(a) complying with any provision of an international tax\\ncompliance agreement;\\n(b) enabling Singapore to carry out its obligations under any\\nprovision of such agreement; or\\n(c) determining whether a person has complied with any\\nregulation made under section 105P.\\n[15/2016; 45/2018]\\n(2) For the purpose of subsection (1) —\\n(a) the reference in section 65 to the purpose of obtaining full\\ninformation in respect of any person’s income is a\\nreference to the purpose mentioned in subsection (1);\\n(b) a reference in section 65B to the purposes of this Act is a\\nreference to the purpose mentioned in subsection (1);\\n(c) references in section 65B to proceedings for an offence\\nunder this Act, proceedings for the recovery of tax or\\npenalty and proceedings by way of an appeal against an\\nassessment are each a reference to proceedings for an\\noffence under this Part;\\n(d) the Comptroller may authorise —\\n(i) an officer of the Monetary Authority of Singapore; or\\n(ii) an accountant,\\n(d) under section 4(1) to perform or assist in the performance\\nof a duty of the Comptroller under section 65, 65A or 65B;\\nand\\nIncome Tax Act 1947\\n1085\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(e) section 65E has effect in relation to a notice issued under\\nsection 65B for a purpose mentioned in subsection (1).\\n[2/2016; 15/2016; 34/2016]\\nInformation may be used for administration of Act\\n105O. To avoid doubt, any information provided or obtained under\\nsection 105L or 105N may be used for any purpose connected with\\nthe administration of this Act, including the investigation or a\\nprosecution for an offence alleged or suspected to have been\\ncommitted under this Act.\\nRegulations to implement international tax compliance\\nagreements, etc.\\n105P.—(1) The\\nMinister\\nmay\\nmake\\nregulations\\nfor,\\nor\\nin\\nconnection with, giving effect to or enabling effect to be given to —\\n(a) an international tax compliance agreement; or\\n(b) any future competent authority agreement which may be\\ndeclared as an international tax compliance agreement\\nunder section 105K(1).\\n[15/2016]\\n(1A) The Minister may also make regulations to enable the\\nComptroller to obtain a country‑by‑country report or its equivalent\\nfrom a prescribed person who is resident in Singapore or has a\\npermanent establishment in Singapore in prescribed circumstances.\\n[45/2018]\\n(2) Without\\nlimiting\\nsubsection\\n(1),\\nregulations\\nunder\\nsubsection (1) may —\\n(a) prescribe anything which may be prescribed under this\\nPart;\\n(b) for the purpose of section 105L, prescribe different\\ndescriptions of information, forms and manners of\\nprovision of the information, and times and frequencies\\nfor the provision of the information, in relation to different\\ninternational tax compliance agreements, different persons\\nor under different circumstances;\\nIncome Tax Act 1947\\n2020 Ed.\\n1086\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(ba) where the international tax compliance agreement in\\nquestion\\nis\\na\\nCbCR\\nexchange\\nagreement,\\nor\\nthe\\nregulation is for the purpose in subsection (1A), enable\\nthe Comptroller —\\n(i) after taking into account prescribed factors, to give\\nwritten notice to a prescribed person that the person\\nneed not comply with section 105L or any other\\nobligation\\nof\\na\\nprescribed\\nperson\\nunder\\nthe\\nregulations; and\\n(ii) if the Comptroller considers appropriate after taking\\ninto account those factors, to give written notice to\\none or more other persons to discharge those\\nobligations in place of the prescribed person\\nmentioned in sub‑paragraph (i);\\n(c) impose on a person —\\n(i) audit requirements for the purpose of determining\\nthe extent of compliance by the person with the\\nregulations made under this section (including\\nrequiring\\nthe\\nperson’s\\ninternal\\nauditor\\nor\\nappointing another person to carry out an audit,\\nand report the results of the audit to the Comptroller);\\n(ii) due diligence requirements;\\n(iii) registration and other requirements; and\\n(iv) a requirement that the person inform the Comptroller\\nif the person wishes to authorise another person to\\nperform any requirement under section 105L(1) or\\nsub‑paragraphs (i), (ii) and (iii) on the person’s\\nbehalf,\\n(c) being requirements that —\\n(v) are required or permitted to be imposed under an\\ninternational tax compliance agreement on any\\nperson to whom the agreement applies; or\\n(vi) may facilitate the implementation of any future\\ncompetent authority agreement which may be\\nIncome Tax Act 1947\\n1087\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\ndeclared\\nas\\nan\\ninternational\\ntax\\ncompliance\\nagreement under section 105K(1);\\n(ca) provide that a contravention of any specified provision is\\nan offence;\\n(cb) enable the Comptroller to appoint another person to carry\\nout an audit for the purpose of determining the extent of\\ncompliance by a person with the regulations made under\\nthis section; and\\n(d) contain incidental, transitional or saving provisions.\\n[37/2014; 15/2016; 34/2016]\\n(3) Regulations under subsection (1) may give force of law to any\\nprovision of an international tax compliance agreement, whether with\\nor without any modification.\\nDuty to provide information under regulations prevails over\\nduty of secrecy, etc.\\n105PA.—(1) This section applies where a regulation made under\\nsection 105P imposes a duty on a person (A) to —\\n(a) provide any information to another person;\\n(b) require A’s internal auditor or appoint another person to\\ncarry out an audit for the purpose of determining the extent\\nof compliance by A with the regulation;\\n(c) carry out any due diligence requirements; or\\n(d) provide any information to —\\n(i) A’s\\ninternal\\nauditor\\nor\\nthe\\nappointed\\nperson\\nmentioned in paragraph (b); or\\n(ii) a person appointed by the Comptroller to carry out an\\naudit.\\n[15/2016]\\n(2) A is not excused from complying with a duty mentioned in\\nsubsection (1) by reason only that A is under a duty not to collect, use\\nor disclose any information, whether imposed by written law, rule of\\nlaw, any contract or any rule of professional conduct.\\n[15/2016]\\nIncome Tax Act 1947\\n2020 Ed.\\n1088\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(3) A who in good faith and with reasonable care does any act for\\nthe purpose of complying with the regulation mentioned in\\nsubsection (1) is not to be treated as being in breach of any duty\\nmentioned in subsection (2).\\n[2/2016]\\n(4) No civil or criminal action for a breach of any such duty, other\\nthan criminal action for an offence under section 105M (if\\napplicable), lies against A —\\n(a) for producing any document or providing any information\\nif A does so in good faith and with reasonable care in\\ncompliance\\nwith\\nthe\\nregulation\\nmentioned\\nin\\nsubsection (1); or\\n(b) for doing or omitting to do any act if A does or omits to do\\nthe act in good faith and with reasonable care and for the\\npurpose of or as a result of complying with the regulation\\nmentioned in subsection (1).\\n[2/2016]\\n(5) Despite subsection (2), subsection (1) does not apply to any\\ninformation subject to legal privilege.\\n[2/2016]\\nConfidentiality requirements for judicial review proceedings\\n105Q.—(1) This section applies to a judicial review instituted by\\nany person in respect of —\\n(a) any action taken by the Comptroller to obtain information\\nfor the purpose of complying with any provision of an\\ninternational tax compliance agreement or to enable\\nSingapore\\nto\\ncarry\\nout\\nits\\nobligations\\nunder\\nany\\nprovision of such agreement;\\n(b) any disclosure or intended disclosure of information\\npursuant to an international tax compliance agreement; or\\n(c) any action taken by the Comptroller under this Part or a\\nfailure to take such action,\\nas well as any proceedings in court (however instituted) for a\\nliquidated sum, damages, equitable relief or restitution if a\\nIncome Tax Act 1947\\n1089\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nMandatory Order, Prohibiting Order, Quashing Order or declaration\\nis made pursuant to the judicial review.\\n[37/2014]\\n(2) In any proceedings to which this section applies, no person may\\ninspect or take a copy of any of the following documents without the\\npermission of court:\\n(a) a request for information made under any provision of the\\ninternational tax compliance agreement;\\n(b) any document relating to the request which is given by or\\nto the Comptroller, to or by the authority making the\\nrequest or a person acting on behalf of the authority.\\n[37/2014]\\n[Act 25 of 2021 wef 01/04/2022]\\n(3) Permission is not to be given under subsection (2) in relation to\\nany document if the court is satisfied that the authority mentioned in\\nthat subsection has requested the Comptroller not to disclose that\\ndocument to any person.\\n[37/2014]\\n[Act 25 of 2021 wef 01/04/2022]\\n(4) A court may, in any proceedings to which this section applies,\\non the application of the Comptroller, make such order as it may\\nconsider necessary to ensure the confidentiality of anything relating\\nto those proceedings.\\n[37/2014]\\n(5) Every application, affidavit or other document filed with the\\ncourt for the purpose of any proceedings to which this section applies\\nis to be sealed upon the request of the applicant or the Comptroller.\\n[37/2014]\\n(6) All proceedings to which this section applies are to be heard in\\nprivate.\\n[37/2014]\\n[Act 25 of 2021 wef 01/04/2022]\\n(7) No information relating to any proceedings to which this section\\napplies may be published without the permission of court; and\\npermission is not to be given unless the court is satisfied that the\\ninformation, if published in accordance with such directions as it may\\ngive, would not reveal any matter that —\\nIncome Tax Act 1947\\n2020 Ed.\\n1090\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(a) the Comptroller;\\n(b) the person from whom the Comptroller obtains the\\ninformation; or\\n(c) the person in relation to whom information is sought,\\nreasonably wishes to remain confidential.\\n[37/2014]\\n[Act 25 of 2021 wef 01/04/2022]\\n(8) In this section, “judicial review” includes proceedings instituted\\nby way of —\\n(a) an application for a Mandatory Order, a Prohibiting Order\\nor a Quashing Order; or\\n(b) an application for a declaration or an injunction, or any\\nother suit or action, relating to or arising out of any matter\\nreferred to in subsection (1)(a) to (c).\\n[37/2014]\\nPART 21\\nMISCELLANEOUS\\nRevocation of approval\\n105R.—(1) This section applies where —\\n(a) either —\\n(i) a person is approved by the Minister, an authorised\\nbody or a person appointed by the Minister (called in\\nthis subsection the approving authority) under a\\nprescribed section for a tax incentive to be applied to\\nthe\\nperson’s\\nincome\\nunder\\nthat\\nprovision\\nor\\nregulations made under that provision; or\\n[Act 41 of 2020 wef 06/12/2022]\\n(ii) a matter is approved by an approving authority under\\na prescribed section for a tax incentive to be applied\\nto a person’s income under that provision or\\nregulations made under that provision; and\\nIncome Tax Act 1947\\n1091\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) the person fails to comply with a condition of the approval.\\n[32/2019]\\n(2) The approving authority may, by written notice, require the\\nperson to show cause, within 30 days after the date the notice is\\nserved on the person or such longer period as the approving authority\\nmay permit in a particular case, why the approval should not be\\nrevoked.\\n[32/2019]\\n(3) If the approving authority is satisfied, having regard to the\\nperson’s representation and all the relevant circumstances of the case,\\nthat it is just and reasonable to do so, the approving authority may\\nrevoke the approval, and the revocation is effective from a date\\nspecified by the approving authority to the person.\\n[32/2019]\\n(4) The approving authority may specify any date for the revocation\\nto take effect, including (if it is just and reasonable to do so) —\\n(a) a date before the date of the non‑compliance with the\\ncondition; or\\n(b) if the condition is to be complied with over a period of\\ntime, before the date of commencement of that period.\\n[32/2019]\\n(5) The revocation of an approval under this section does not affect\\nthe operation of any provision of this Act providing for other\\nconsequences for a breach of a condition of the approval.\\n[32/2019]\\n(6) To avoid doubt, where —\\n(a) a tax incentive has been applied to any income of the\\nperson under a prescribed section, or an order under\\nsection 13(12);\\n(b) the tax incentive would not have been applied to the\\nperson’s income if the person or matter were not an\\napproved person or matter under the prescribed section on\\nthe date the relevant income accrued to or was derived or\\nreceived by the person, or the relevant expenditure was\\nincurred by the person, as the case may be; and\\nIncome Tax Act 1947\\n2020 Ed.\\n1092\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(c) the approval is revoked under this section with effect from\\nor before that date,\\nthe Comptroller may make an assessment or additional assessment\\nunder section 74 on the person.\\n[32/2019]\\n(7) This section applies to an approval given under a prescribed\\nsection whether before, on or after 2 December 2019.\\n[32/2019]\\n(8) In this section —\\n(a) a prescribed section is a section of the Act specified in the\\nFourth Schedule;\\n(b) a tax incentive is any of the following:\\n(i) an exemption from tax;\\n(ii) a concessionary rate of tax;\\n(iii) a deduction or an allowance;\\n(iv) a reduction of the statutory income of a person;\\n(c) a tax incentive that is an exemption from tax is applied to a\\nperson’s income if any income of the person becomes\\nexempt from tax;\\n(d) a tax incentive that is a concessionary rate of tax is applied\\nto a person’s income if tax is levied on any income of the\\nperson at that rate;\\n(e) a tax incentive that is a deduction or an allowance is\\napplied to a person’s income if it is allowed or made for\\nany expenditure in ascertaining the person’s chargeable\\nincome; and\\n(f) a tax incentive that is a reduction of the statutory income of\\na person is applied to a person’s income if such reduction is\\nmade to the person’s statutory income.\\n[32/2019]\\nIncome Tax Act 1947\\n1093\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nConditions for application of tax incentive treated as\\nconditions of approval\\n105S.—(1) This section applies to each of the following approvals\\nmade before 2 December 2019:\\n(a) an approval of a Finance and Treasury Centre of a\\ncompany under section 43E for tax at a concessionary\\nrate to be levied on the company’s income under\\nregulations made under that section;\\n(b) an approval of a person under section 43I, 43J, 43K, 43L,\\n43N, 43O, 43Q, 43R or 43S, for tax at a concessionary rate\\nto be levied on the person’s income under that section or\\nregulations made under that section, as the case may be.\\n[32/2019]\\n(2) For the purposes of section 105R, every condition imposed or\\nspecified before the date mentioned in subsection (1) under\\nsection 43G(2), 43P(2), 43Q(2), 43R(2), 43W(3), 43Y(2), 43Z(3),\\n43ZB(3), 43ZC(3) or 43ZD(3) of this Act as in force immediately\\nbefore that date, in relation to a Finance and Treasury Centre or\\nperson, is treated as a condition imposed on the approval of the\\nFinance and Treasury Centre or person (as the case may be) under the\\ncorresponding section mentioned in subsection (1).\\n[32/2019]\\n(3) In this section, “Finance and Treasury Centre” has the meaning\\ngiven by section 43E.\\n[32/2019]\\nPowers to amend Schedules\\n106.—(1) Parliament may, by resolution, add to, vary or revoke the\\nwhole or any part of any Schedule.\\n(2) Parliament may, by resolution, exempt any person or class of\\npersons from all or any of the provisions of this Act.\\n(3) The Minister may, by order in the Gazette, amend, add to or\\nrevoke the whole or any part of the First, Fourth, Sixth, Seventh,\\nEighth, Ninth, Tenth and Eleventh Schedules.\\n[45/2018; 32/2019; 41/2020]\\n[Act 33 of 2022 wef 04/11/2022]\\nIncome Tax Act 1947\\n2020 Ed.\\n1094\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nVariable capital companies or VCCs\\n107.—(1) For the purposes of this Act, and subject to the\\nmodifications in this section and the rules under subsection (30), a\\nreference to a company in this Act and the subsidiary legislation made\\nunder it includes a VCC.\\n[28/2019]\\n(2) Accordingly, a reference to a body of persons (by reason of it\\nbeing defined in section 2(1) as excluding a company) excludes a\\nVCC.\\n[28/2019]\\nChargeable or exempt income of umbrella VCC\\n(3) Subject to the modifications in this section and the rules under\\nsubsection (30), a reference in this Act and the subsidiary legislation\\nmade under it to the chargeable income or exempt income of a person\\nthat is an umbrella VCC is to the total of the chargeable income or\\nexempt income (as the case may be) of each of its sub‑funds.\\n[28/2019]\\n(4) For the purpose of determining the chargeable income or\\nexempt income of a sub‑fund under subsection (3), the provisions of\\nthis Act and the subsidiary legislation made under it (as modified by\\nsubsection (1)) apply as if each sub‑fund were a VCC, with the\\nfollowing modifications:\\n(a) a reference to a trade or business carried on by a VCC is to\\na trade or business carried on by the umbrella VCC in\\nrelation to the sub‑fund;\\n(b) a reference to income derived or received by a VCC is to\\nincome derived or received by the umbrella VCC in\\nrelation to the sub‑fund (called in this section income of a\\nsub‑fund);\\n(c) a reference to any outgoing or expense incurred by a VCC\\nin producing income is to either or both of the following\\n(called in this section an expense of a sub‑fund):\\n(i) any outgoing or expense incurred in producing\\nincome of the sub‑fund;\\nIncome Tax Act 1947\\n1095\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(ii) the amount of any outgoing or expense allocated to\\nthe sub‑fund by the umbrella VCC in accordance\\nwith section 29(3) of the VCC Act;\\n(d) a reference to any capital expenditure incurred by a VCC\\nfor the purpose of a trade or business is to either or both of\\nthe following (called in this section a capital expenditure of\\na sub‑fund):\\n(i) any capital expenditure incurred for the purpose of a\\ntrade or business carried on by the umbrella VCC in\\nrelation to the sub‑fund;\\n(ii) the amount of any capital expenditure allocated to\\nthe sub‑fund by the umbrella VCC in accordance\\nwith section 29(3) of the VCC Act;\\n(e) a reference to any loss incurred by a VCC in carrying on a\\ntrade or business is to any loss incurred by the umbrella\\nVCC in carrying on a trade or business in relation to the\\nsub‑fund (called in this section a loss of a sub‑fund);\\n(f) a reference to a donation made by a VCC is to a donation\\nmade by the umbrella VCC for the purpose of the sub‑fund\\n(called in this section a donation of a sub‑fund);\\n(g) a reference to a payment or distribution made to a VCC is\\nto a payment or distribution made to the umbrella VCC for\\nthe sub‑fund;\\n(h) a reference in sections 23, 37 and 37D to shareholders of a\\nVCC is to holders of shares of the umbrella VCC in respect\\nof the sub‑fund;\\n(i) a sub‑fund is resident in Singapore if its umbrella VCC is\\nresident in Singapore, and a sub‑fund is resident outside\\nSingapore if its umbrella VCC is resident outside\\nSingapore.\\n[28/2019]\\n(5) Subsection (4) does not apply to any provision of this Act that is\\nreplaced with another provision under this section for the purpose of\\nsubsection (3).\\n[28/2019]\\nIncome Tax Act 1947\\n2020 Ed.\\n1096\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(6) To avoid doubt —\\n(a) the umbrella VCC is not entitled to any further deduction\\nfor any expense, capital expenditure, loss or donation of a\\nsub‑fund taken into account in determining the chargeable\\nincome or exempt income of the sub‑fund; and\\n(b) any expense, capital expenditure, loss or donation of a\\nsub‑fund is not available for deduction against the income\\nof another sub‑fund or any other income of the umbrella\\nVCC.\\n[28/2019]\\n(7) Each part of the chargeable income of an umbrella VCC that is\\nchargeable income of a sub‑fund is subject to tax at the rate to which\\nthat part would have been subject had the sub‑fund been a VCC.\\n[28/2019]\\nSegregated liabilities of sub‑funds\\n(8) The amount of any tax attributable to any part of the chargeable\\nincome of an umbrella VCC that is chargeable income of a sub‑fund,\\ntogether with any interest or penalty imposed under section 85(2) or\\n87 in respect of such amount, is considered (for the purpose of\\nsection 29 of the VCC Act) liability incurred by the umbrella VCC for\\nthe purpose of the sub‑fund.\\n[28/2019]\\n(9) Any fine or penalty imposed on, or composition sum that may\\nbe paid by, an umbrella VCC for an offence under this Act that is\\ncommitted in respect of any information or other matter concerning a\\nsub‑fund, is considered (for the purpose of section 29 of the VCC\\nAct) liability incurred by the umbrella VCC for the purpose of the\\nsub‑fund.\\n[28/2019]\\n(10) Any fine or penalty imposed on, or composition sum that may\\nbe paid by, an umbrella VCC for an offence under this Act and to\\nwhich subsection (9) does not apply, is considered (for the purpose of\\nsection 29 of the VCC Act) liability incurred by the umbrella VCC for\\nthe purpose of all of its sub‑funds.\\n[28/2019]\\nIncome Tax Act 1947\\n1097\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nDeductions not allowed\\n(11) AVCC may not be allowed any deduction under sections 14A,\\n14B, 14C, 14D, 14E, 14EA, 14F, 14G, 14H, 14I, 14J, 14K, 14L, 14M,\\n14N, 14S, 14U, 14Z, 14ZG and 37O (including the subsidiary\\nlegislation made under them, where applicable) and accordingly may\\nnot be approved (where applicable) under them.\\n[28/2019; 41/2020]\\n[Act 30 of 2023 wef 30/10/2023]\\n(12) Despite subsection (1), no transfer of any deduction may be\\nmade under section 37B —\\n(a) by a VCC to any claimant company or VCC of the same\\ngroup; or\\n(b) by a transferor company to any VCC of the same group.\\n[28/2019]\\nApplication of section 13G\\n(12A) Section 13G and the regulations made under it apply for the\\npurpose of determining the exempt income of a sub‑fund under\\nsubsection (3) as if it were an approved venture company under that\\nsection if the umbrella VCC of the sub‑fund is approved for the\\npurpose of that section.\\n[41/2020]\\nApplication of sections 13O and 13U\\n(13) Section 13O and the regulations made under it apply for the\\npurpose of determining the exempt income of a sub‑fund under\\nsubsection (3) as if it were an approved company under that section if\\nthe umbrella VCC of the sub‑fund is approved for the purpose of that\\nsection.\\n[28/2019]\\n(14) Where the relevant owner mentioned in section 13O(3) is an\\numbrella VCC, the amount of any financial penalty under that\\nprovision that it is liable for is considered (for the purpose of\\nsection 29 of the VCC Act) liability incurred by it for the purpose of\\nits sub‑funds, and the amount of such liability in relation to each\\nsub‑fund is computed in accordance with the formula\\nIncome Tax Act 1947\\n2020 Ed.\\n1098\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nA\\nB \\u0003 C;\\nwhere —\\n(a) A is the total value of issued securities held by the umbrella\\nVCC for the sub‑fund on the relevant day as defined in\\nsection 13O(8);\\n(b) B is the total value of all the issued securities held by the\\numbrella VCC for all its sub‑funds on the relevant day as\\ndefined in section 13O(8); and\\n(c) C is the amount of the penalty.\\n[28/2019]\\n(15) Section 13U and the regulations made under it apply for the\\npurpose of determining the exempt income of a sub‑fund under\\nsubsection (3) as if it were —\\n(a) an approved person under that section;\\n(b) the approved master fund of an approved master fund‑SPV\\nstructure,\\nmaster‑feeder\\nfund‑SPV\\nstructure\\nor\\nmaster‑feeder fund structure under that section; or\\n(c) an approved feeder fund of an approved master‑feeder\\nfund‑SPV structure or master‑feeder fund structure under\\nthat section,\\nif its umbrella VCC is approved by the Minister or an authorised body\\nfor the purpose of that section.\\n[28/2019]\\n[Act 41 of 2020 wef 06/12/2022]\\n(16) The amount of any tax recoverable from the umbrella VCC\\nunder the regulations made under section 13U that is attributable to\\nany income of a sub‑fund, is considered (for the purpose of section 29\\nof the VCC Act) liability incurred by the umbrella VCC for the\\npurpose of the sub‑fund.\\n[28/2019]\\nIncome Tax Act 1947\\n1099\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nApplication of section 13W\\n(17) Section 13W in Part 1 of the Third Schedule applies in place of\\nsection 13W for the purpose of determining the exempt income of a\\nsub‑fund under subsection (3) from the disposal of —\\n(a) ordinary shares in a company (other than a VCC); or\\n(b) ordinary shares in a VCC (called in this subsection and\\nsubsection (18) VCC X).\\n[28/2019]\\n(18) Where VCC X is an umbrella VCC, section 13W in Part 1 of\\nthe Third Schedule applies for the purpose of determining the exempt\\nincome of a sub‑fund under subsection (3) with the following further\\nmodifications:\\n(a) the section is to be applied in relation to the disposal of\\nordinary shares of VCC X in respect of each sub‑fund as if\\nVCC X only has that one sub‑fund;\\n(b) accordingly, a reference in the section to the legal and\\nbeneficial ownership of any ordinary shares in a VCC is to\\nthe legal and beneficial ownership of ordinary shares in\\nVCC X in respect of that sub‑fund.\\n[28/2019]\\n(19) Section 13Wapplies for the purpose of determining the exempt\\nincome of a company (including a non‑umbrella VCC but excluding\\nan umbrella VCC) from the disposal of ordinary shares in an umbrella\\nVCC with the following modifications:\\n(a) the section is to be applied in relation to the disposal of\\nordinary shares of the umbrella VCC in respect of each\\nsub‑fund as if the umbrella VCC only has that one\\nsub‑fund;\\n(b) accordingly, a reference in that section to the legal and\\nbeneficial ownership of any ordinary shares in a VCC is to\\nthe legal and beneficial ownership of ordinary shares in the\\numbrella VCC in respect of that sub‑fund.\\n[28/2019]\\nIncome Tax Act 1947\\n2020 Ed.\\n1100\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(20) In subsections (17), (18) and (19), “ordinary share”, in relation\\nto a VCC, means any share other than a share that carries only a right\\nto any dividend which is —\\n(a) of a fixed amount or at a fixed rate per cent of the value of\\nthe share; or\\n(b) either —\\n(i) where the VCC is a non‑umbrella VCC, of a fixed\\nrate per cent of the profits of the non‑umbrella VCC;\\nor\\n(ii) where the VCC is an umbrella VCC, of a fixed rate\\nper cent of the profits of the umbrella VCC in\\nrelation to the sub‑fund in respect of which the share\\nwas issued.\\n[28/2019]\\nApplication of sections 34D, 34E and 34F\\n(21) Section 34D applies for the purpose of determining the\\nchargeable income or exempt income of a sub‑fund under\\nsubsection (3), and section 34E applies for the recovery of any\\nsurcharge resulting from any adjustment by the Comptroller under\\nsection 34D as applied by this subsection, subject to the following\\nmodifications:\\n(a) a sub‑fund is treated as a person;\\n(b) a person is related to a sub‑fund if it is related to the\\nsub‑fund in such manner as may be prescribed by rules\\nmade under section 7.\\n[28/2019]\\n(22) Any surcharge under section 34E as applied by subsection (21)\\nis recoverable from the umbrella VCC and constitutes a liability\\nincurred by the umbrella VCC for the purpose of the sub‑fund\\nconcerned for the purpose of section 29 of the VCC Act.\\n[28/2019]\\n(23) Section 34F applies to an umbrella VCC —\\n(a) as if a reference to the gross revenue of a company is to the\\ngross revenue of any of its sub‑funds; and\\nIncome Tax Act 1947\\n1101\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n(b) as if a reference to a transaction undertaken by a company\\nwith a related party is to a transaction undertaken by the\\numbrella VCC for the purpose of any of its sub‑funds with\\nany person that is related to the sub‑fund in such manner as\\nmay be prescribed by rules made under section 7.\\n[28/2019]\\nApplication of sections 34G and 34H\\n(24) Sections 34G and 34H apply to a body corporate incorporated\\noutside Singapore that is a non‑umbrella VCC registered as a VCC\\nunder Part 12 of the VCC Act, as they apply to a redomiciled\\ncompany as defined in section 34G, subject to the following\\nmodifications:\\n(a) a reference to the registration date of a redomiciled\\ncompany or an approved redomiciled company is to the\\ndate of registration of the VCC specified in the notice of\\ntransfer of registration issued to it under section 135(3) of\\nthe VCC Act;\\n(b) a reference to the place of incorporation of an approved\\nredomiciled company is to the jurisdiction where the VCC\\nwas domiciled at the time it applied for registration under\\nPart 12 of the VCC Act;\\n(c) section 34G(9) does not apply except in respect of\\nsection 14R;\\n(d) section 34G(20A), (20B) and (20C) does not apply.\\n[28/2019]\\n(25) Section 34G in Part 2 of the Third Schedule applies in place of\\nsection 34G for the purpose of determining under subsection (3) the\\nchargeable income or exempt income of a sub‑fund of a body\\ncorporate incorporated outside Singapore that is registered as a VCC\\nunder Part 12 of the VCC Act and that is an umbrella VCC (called in\\nthis section a redomiciled umbrella VCC).\\n[28/2019]\\n(26) Section 34H in Part 2 of the Third Schedule applies in place of\\nsection 34H for the purpose of determining the tax credits for a\\nredomiciled umbrella VCC.\\n[28/2019]\\nIncome Tax Act 1947\\n2020 Ed.\\n1102\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nApplication of sections 45, 45A, 45AA, 45B, 45D and 45F\\n(27) Where —\\n(a) section 45, 45A, 45AA, 45D or 45F applies to any payment\\nby an umbrella VCC for the purpose of a sub‑fund; or\\n(b) section 45B applies to any remuneration payable by an\\numbrella VCC to a director of the VCC that is allocated by\\nthe VCC to a sub‑fund,\\nany resulting debt mentioned in that section (including, where\\napplicable, section 45 as applied by that section), together with any\\npenalty or fine imposed on the VCC, or composition sum that may be\\npaid by the VCC, for an offence under that section (including, where\\napplicable, section 45 as applied by that section), that is committed in\\nrelation to such income is considered (for the purpose of section 29 of\\nthe VCC Act) liability incurred by the VCC for the purpose of the\\nsub‑fund.\\n[28/2019]\\nApplication of sections 50, 50A and 50C\\n(28) Sections 50, 50A and 50C in Part 3 of the Third Schedule apply\\nin place of sections 50, 50A and 50C respectively, in a case where the\\nincome in question is that of an umbrella VCC.\\n[28/2019]\\nMiscellaneous\\n(29) Rules made for the purposes mentioned in subsections (21)(b)\\nand\\n(23)(b)\\nmay\\nmake\\ndifferent\\nprovisions\\nfor\\ndifferent\\ncircumstances.\\n[28/2019]\\n(30) The Minister may, for a period of 2 years starting on the date of\\ncommencement of the Variable Capital Companies (Miscellaneous\\nAmendments)\\nAct\\n2019,\\nmake\\nrules\\nto\\nprescribe\\nfurther\\nmodifications to any provision of this Act in its application to a\\nVCC, an umbrella VCC or a sub‑fund of an umbrella VCC.\\n[28/2019]\\nIncome Tax Act 1947\\n1103\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nAdvance rulings\\n108.—(1) The Comptroller may, on an application made by a\\nperson in accordance with Part 1 of the Seventh Schedule, make a\\nruling on any of the matters specified in that Part in accordance with\\nthat Part.\\n(2) Part 1 of the Seventh Schedule applies to and in connection with\\nan application under subsection (1) and any ruling made by the\\nComptroller under that subsection.\\n(3) The fees specified in Part 2 of the Seventh Schedule are payable\\nto and retained by the Authority in respect of any application under\\nsubsection (1).\\n(4) The Authority may, in exceptional circumstances in its\\ndiscretion, waive in whole or in part any fee payable by an\\napplicant under subsection (3).\\n(5) In this section, “Authority” means the Inland Revenue\\nAuthority of Singapore established under section 3 of the Inland\\nRevenue Authority of Singapore Act 1992.\\nFIRST SCHEDULE\\nSections 13(1) and 106(1) and (3)\\nINSTITUTION, AUTHORITY, PERSON\\nOR FUND EXEMPTED\\nA. Public authorities, boards or funds constituted by statute in Singapore:\\n1. Bankruptcy Estates Account\\nBankruptcy Act\\n(Cap. 20,\\n2009 Revised Edition)\\n2. Central Co‑operative Fund\\nCo‑operative\\nSocieties Act 1979\\n3. Central Sikh Gurdwara Board\\nCentral Sikh\\nGurdwara Board\\nAct 1981\\n4. Common Fund\\nPublic Trustee\\nAct 1915\\n5. Dependants’ Protection Insurance Fund\\nCentral Provident\\nFund Act 1953\\nIncome Tax Act 1947\\n2020 Ed.\\n1104\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nFIRST SCHEDULE — continued\\n6. Education Finance Board\\nEducation Act 1957\\n7. Hindu Endowments Board\\nHindu Endowments\\nAct 1968\\n8. Home Protection Fund\\nCentral Provident\\nFund Act 1953\\n9. Hotels Licensing Board\\nHotels Act 1954\\n10. Institute of Technical Education,\\nSingapore\\nInstitute of Technical\\nEducation Act 1992\\n11. Land Surveyors Board\\nLand Surveyors\\nAct 1991\\n12. Majlis Ugama Islam, Singapura\\nAdministration of\\nMuslim Law\\nAct 1966\\n13. MediShield Life Fund\\nMediShield Life\\nScheme Act 2015\\n14. Minister for Finance\\nMinister for Finance\\n(Incorporation)\\nAct 1959\\n15. National Arts Council\\nNational Arts Council\\nAct 1991\\n16. National Council of Social Service\\nNational Council of\\nSocial Service\\nAct 1992\\n17. National Heritage Board\\nNational Heritage\\nBoard Act 1993\\n18. National Library Board\\nNational Library\\nBoard Act 1995\\n19. People’s Association\\nPeople’s Association\\nAct 1960\\n20. Science Centre Board\\nScience Centre\\nAct 1970\\n21. Singapore Academy of Law\\nSingapore Academy\\nof Law Act 1988\\n22. Singapore Corporation of Rehabilitative\\nEnterprises\\nSingapore\\nCorporation of\\nIncome Tax Act 1947\\n1105\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nFIRST SCHEDULE — continued\\nRehabilitative\\nEnterprises Act 1975\\n23. Any specified statutory corporation within\\nthe meaning of section 3 of the Statutory\\nCorporations (Contributions to\\nConsolidated Fund) Act 1989, as from the\\ndate of establishment of that statutory\\ncorporation\\nB. Clubs, corporations and institutions in Singapore:\\n1. Catholic Young Men’s Association\\n2. [Deleted by Act 21 of 2017]\\n3. Lee Kuan Yew Exchange Fellowship\\nG.N. No. S 317/91\\n4. Metropolitan Young Men’s Christian\\nAssociation\\n5. National Crime Prevention Council of\\nSingapore\\nG.N. No. S 158/82\\n6. SAFRA National Service Association\\nG.N. No. S 137/84\\n7. HomeTeamNS\\nG.N. No. S 194/2006\\n8. Titular Anglican Bishop of Singapore\\nBishop of Singapore\\nOrdinance 1911\\n9. Titular Roman Catholic Archbishop of\\nSingapore\\nRoman Catholic\\nArchbishop Act 1975\\n10. Young Men’s Christian Association\\n11. Young Women’s Christian Association\\n[21/2017; S 712/2015]\\nIncome Tax Act 1947\\n2020 Ed.\\n1106\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nSECOND SCHEDULE\\nRATES OF TAX\\nPART A\\nSections 13K(7),\\n42(1), 81(7) and 106(1)\\nTABLE 1\\nRATES OF TAX ON CHARGEABLE INCOME OF\\nAN INDIVIDUAL OR A HINDU JOINT FAMILY\\nFOR YEAR OF ASSESSMENT 2012 AND OF AN INDIVIDUAL\\nFOR YEARS OF ASSESSMENT 2013, 2014, 2015 AND 2016\\nChargeable Income\\nRate of Tax\\nFor every dollar of the first\\n$ 20,000\\nNil\\nFor every dollar of the next\\n$ 10,000\\n2%\\nFor every dollar of the next\\n$ 10,000\\n3.5%\\nFor every dollar of the next\\n$ 40,000\\n7%\\nFor every dollar of the next\\n$ 40,000\\n11.5%\\nFor every dollar of the next\\n$ 40,000\\n15%\\nFor every dollar of the next\\n$ 40,000\\n17%\\nFor every dollar of the next\\n$120,000\\n18%\\nFor every dollar exceeding\\n$320,000\\n20%.\\n[Act 33 of 2022 wef 04/11/2022]\\nTABLE 2\\nRATES OF TAX ON CHARGEABLE INCOME OF AN\\nINDIVIDUAL FOR YEARS OF ASSESSMENT 2017, 2018, 2019, 2020, 2021,\\n2022 AND 2023\\nChargeable Income\\nRate of tax\\nFor every dollar of the first\\n$20,000\\nNil\\nFor every dollar of the next\\n$10,000\\n2%\\nFor every dollar of the next\\n$10,000\\n3.5%\\nFor every dollar of the next\\n$40,000\\n7%\\nIncome Tax Act 1947\\n1107\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nSECOND SCHEDULE — continued\\nChargeable Income\\nRate of tax\\nFor every dollar of the next\\n$40,000\\n11.5%\\nFor every dollar of the next\\n$40,000\\n15%\\nFor every dollar of the next\\n$40,000\\n18%\\nFor every dollar of the next\\n$40,000\\n19%\\nFor every dollar of the next\\n$40,000\\n19.5%\\nFor every dollar of the next\\n$40,000\\n20%\\nFor every dollar exceeding\\n$320,000\\n22%.\\n[Act 33 of 2022 wef 04/11/2022]\\nTABLE 3\\nRATES OF TAX ON CHARGEABLE INCOME OF\\nAN INDIVIDUAL FOR YEAR OF ASSESSMENT 2024\\nAND SUBSEQUENT YEARS OF ASSESSMENT\\nChargeable Income\\nRate of Tax\\nFor every dollar of the first\\n$20,000\\nNil\\nFor every dollar of the next\\n$10,000\\n2%\\nFor every dollar of the next\\n$10,000\\n3.5%\\nFor every dollar of the next\\n$40,000\\n7%\\nFor every dollar of the next\\n$40,000\\n11.5%\\nFor every dollar of the next\\n$40,000\\n15%\\nFor every dollar of the next\\n$40,000\\n18%\\nFor every dollar of the next\\n$40,000\\n19%\\nFor every dollar of the next\\n$40,000\\n19.5%\\nFor every dollar of the next\\n$40,000\\n20%\\nFor every dollar of the next\\n$180,000\\n22%\\nFor every dollar of the next\\n$500,000\\n23%\\nFor every dollar exceeding\\n$1,000,000\\n24%.\\n[Act 33 of 2022 wef 04/11/2022]\\nIncome Tax Act 1947\\n2020 Ed.\\n1108\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nSECOND SCHEDULE — continued\\nPART B\\n[Deleted by Act 27 of 2009]\\nPART C\\n[Deleted by Act 41 of 2020]\\n[2/2016; 41/2020]\\nTHIRD SCHEDULE\\nPART 1\\nPROVISION THAT APPLIES IN PLACE OF SECTION 13W\\nWHERE INCOME IS THAT OF AN UMBRELLA VCC FROM\\nDISPOSAL OF ORDINARY SHARES IN A COMPANY OR VCC\\nSections 106(1) and 107(17) and (18)\\nSection 13W is replaced with section 13W as set out below for the purpose of\\ndetermining under section 107(3) the income of a sub‑fund of an umbrella VCC:\\n“Exemption of gains or profits from disposal of ordinary shares\\n13W.—(1) There is exempt from tax any gains or profits derived by an\\numbrella VCC (called in this section the divesting VCC) for the purpose of a\\nsub‑fund from the disposal of ordinary shares in a company (called in this\\nsection company X) or of ordinary shares in a VCC (called in this section\\nVCC X) that are legally and beneficially owned by the divesting VCC for the\\npurpose of that sub‑fund immediately before the disposal, being a disposal\\nmade —\\n(a) on or before 31 December 2027; and\\n(b) after the divesting VCC has, at all times during a continuous\\nperiod of at least 24 months ending on the date immediately prior\\nto the date of disposal of such shares, legally and beneficially\\nowned, for the purpose of that sub‑fund, at least 20% of the\\nordinary shares in company X or VCC X, as the case may be.\\n(2) Subsection (1) applies only if the divesting VCC provides, at the time of\\nlodgment of its return of income for the year of assessment relating to the\\nbasis period in which the disposal occurs, or within such further time as the\\nComptroller may allow, such information and supporting documents as may\\nbe specified by the Comptroller.\\n(3) In determining the amount of gains or profits that are exempt from tax\\nunder subsection (1) for any year of assessment, there is to be deducted all\\nIncome Tax Act 1947\\n1109\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nTHIRD SCHEDULE — continued\\noutgoings and expenses wholly and exclusively incurred by the divesting\\nVCC in the production of such gains or profits, including —\\n(a) the price paid in acquiring those shares;\\n(b) any sum payable by way of interest upon any money borrowed by\\nthe divesting VCC, where the Comptroller is satisfied that the\\ninterest was payable on capital employed to acquire those shares;\\n(c) any sum payable in lieu of interest or for the reduction thereof,\\nupon any money borrowed by the divesting VCC, being a sum of\\na\\ntype\\nprescribed\\nunder\\nsection\\n14(1)(a)(ii),\\nwhere\\nthe\\nComptroller is satisfied that it was payable on capital employed\\nto acquire those shares;\\n(d) any legal costs incurred for the acquisition or disposal of those\\nshares;\\n(e) any amount paid in respect of stamp duty for the acquisition or\\ndisposal of those shares; and\\n(f) any other expenses allowable under this Act that are directly\\nattributable to those gains or profits.\\n(4) For the purposes of subsection (1), the divesting VCC remains the legal\\nand beneficial owner of any ordinary shares in company X or VCC X (as the\\ncase may be) for the purpose of the sub‑fund during the borrowing period\\nwhen the legal interest in such shares had been transferred by the divesting\\nVCC to another person under a securities lending or repurchase arrangement.\\n(5) Where —\\n(a) gains or profits derived from the disposal of ordinary shares in\\ncompany X or VCC X by the divesting VCC for the purpose of\\nthe sub‑fund are exempt from tax under subsection (1); and\\n(b) one or more amounts mentioned in subsection (6) that are\\nattributable to any of the ordinary shares disposed of, have been\\nallowed as a deduction in determining the chargeable income of\\nthe sub‑fund under section 107(3) for any year of assessment\\nprior to the year of assessment relating to the basis period in\\nwhich the ordinary shares are disposed of,\\nthen the amounts in paragraph (b) are to be included in the chargeable income\\nof the sub‑fund under section 107(3) for the second‑mentioned year of\\nassessment.\\nIncome Tax Act 1947\\n2020 Ed.\\n1110\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nTHIRD SCHEDULE — continued\\n(6) Subsection (5) applies to the following amounts:\\n(a) any amount provided for a diminution in the value of the ordinary\\nshares;\\n(b) any amount written off against the value of the ordinary shares;\\n(c) any impairment loss for the ordinary shares;\\n(d) any loss recognised in accordance with SFRS for Small Entities,\\nFRS 109 or SFRS(I) 9 (as the case may be), in determining the\\nprofit or loss or expense in respect of the ordinary shares.\\n(7) Where —\\n(a) gains or profits derived from the disposal of ordinary shares by\\nthe divesting VCC for the purpose of the sub‑fund are exempt\\nfrom tax under subsection (1); and\\n(b) any write‑back for a diminution in the value of the ordinary\\nshares, or profit recognised in accordance with SFRS for Small\\nEntities, FRS 109 or SFRS(I) 9 (as the case may be), that is\\nattributable to any of the ordinary shares (being chargeable\\nincome of the sub‑fund under section 107(3)) has been charged to\\ntax as income of the umbrella VCC for any year of assessment\\nprior to the year of assessment relating to the basis period in\\nwhich the shares are disposed of,\\nthen the write‑back or profit in paragraph (b) is taken to be an expense\\nallowable under this Act in determining the chargeable income of the\\nsub‑fund under section 107(3) for the second‑mentioned year of assessment.\\n(8) This section does not apply to —\\n(a) the disposal of shares before 1 June 2022 in a company or VCC\\nthat —\\n(i) is in the business of trading Singapore immovable\\nproperties; or\\n(ii) principally carries on the activity of holding Singapore\\nimmovable properties,\\n(a) other than property development, where the shares are not listed\\non a stock exchange in Singapore or elsewhere;\\n(aa) the disposal of shares on or after 1 June 2022 not listed on a stock\\nexchange in Singapore or elsewhere, being shares in a company\\nor VCC that the Comptroller is satisfied —\\nIncome Tax Act 1947\\n1111\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nTHIRD SCHEDULE — continued\\n(i) is in the business of trading immovable properties situated\\nwhether in Singapore or elsewhere;\\n(ii) principally carries on the activity of holding immovable\\nproperties situated whether in Singapore or elsewhere; or\\n(iii) (being a company) has undertaken property development\\nin Singapore or elsewhere, except where —\\n(A) the immovable property developed is used by the\\ncompany to carry on its trade or business (including\\nthe business of letting immovable properties), not\\nbeing a business mentioned in sub‑paragraph (i);\\nand\\n(B) then company did not undertake any property\\ndevelopment in Singapore or elsewhere for a\\nperiod of at least 60 consecutive months before\\nthe disposal of shares; or\\n(b) the disposal of shares by a partnership, limited partnership or\\nlimited liability partnership one or more of the partners of which\\nis a company or VCC, or are companies or VCCs.\\n(9) In this section —\\n“activity of holding immovable properties” excludes the holding of\\nimmovable properties where such properties are used to carry on a\\ntrade or business, including the business of letting immovable\\nproperties;\\n“borrowing period” and “securities lending or repurchase arrangement”\\nhave the meanings given by section 10H(12);\\n“disposal”, in relation to shares, means the transfer of both the legal and\\nbeneficial interests in the shares to another;\\n“FRS\\n109”\\nand\\n“SFRS(I)\\n9”\\nhave\\nthe\\nmeanings\\ngiven\\nby\\nsection 34AA(15);\\n“SFRS for Small Entities” has the meaning given by section 34A(10);\\n“ordinary share”, in relation to a VCC, means any share other than a\\nshare that carries only a right to any dividend which is —\\n(a) of a fixed amount or at a fixed rate per cent of the value of\\nthe share; or\\nIncome Tax Act 1947\\n2020 Ed.\\n1112\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nTHIRD SCHEDULE — continued\\n(b) either —\\n(i) where the VCC is a non‑umbrella VCC, of a fixed\\nrate per cent of the profits of the non‑umbrella\\nVCC; or\\n(ii) where the VCC is an umbrella VCC, of a fixed\\nrate per cent of the profits of the umbrella VCC in\\nrelation to the sub‑fund in respect of which the\\nshare was issued;\\n“property development” means construction or causing the construction\\nof any building or part of a building and acquisition of land or\\nbuilding for such construction, and for this purpose “construction”\\nmeans —\\n(a) any building operations, or demolition and rebuilding\\noperations, in, on, over or under any land for the purpose of\\nerecting a building or part of a building; and\\n(b) any alteration or addition to, or partial demolition and\\nrebuilding of, any building or part of a building,\\nthat requires the approval of the Commissioner of Building Control\\nunder the Building Control Act 1989 or (if carried out in a country\\noutside of Singapore) would have required such approval if it had\\nbeen carried out in Singapore.”.\\nPART 2\\nPROVISIONS THAT APPLY IN PLACE OF SECTIONS 34G AND 34H\\nTO AN UMBRELLA VCC INCORPORATED OUTSIDE SINGAPORE\\nAND REGISTERED AS A VCC UNDER PART 12 OF VCC ACT\\nSections 106(1) and 107(25) and (26)\\nSections 34G and 34H are replaced with sections 34G and 34H respectively as set\\nout below for the purposes of determining, under section 107(3), the income of a\\nsub‑fund of a body corporate incorporated outside Singapore that is registered as a\\nVCC under Part 12 of the VCC Act and that is an umbrella VCC, and the tax\\ncredits for such a body corporate:\\n“Modifications of provisions for umbrella VCCs redomiciled in\\nSingapore\\n34G.—(1) This section applies for the purposes of determining under\\nsection 107(3) the income of a sub‑fund of a redomiciled VCC.\\nInterpretation\\nIncome Tax Act 1947\\n1113\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nTHIRD SCHEDULE — continued\\n(2) In this section —\\n“FRS\\n109”\\nand\\n“SFRS(I)\\n9”\\nhave\\nthe\\nmeanings\\ngiven\\nby\\nsection 34AA(15);\\n“redomiciled VCC” means a body corporate incorporated outside\\nSingapore that is registered as a VCC under Part 12 of the VCC Act,\\nand is an umbrella VCC;\\n“registration date”, in relation to a redomiciled VCC, means the date of\\nits registration specified in the notice of transfer of registration issued\\nto it under section 135(3) of the VCC Act.\\nDeductions for bad debts and impairment losses for debts\\n(3) Despite sections 10(1), 14(1)(d) and 34AA(1), where a redomiciled\\nVCC has any debt owed to it in the course of carrying on a trade or business\\nin relation to a sub‑fund outside Singapore (called in this section the\\nsub‑fund’s trade or business outside Singapore) that was incurred before its\\nregistration date and, at any time on or after that date, the debt is written off as\\nbad or impairment loss is provided for that debt —\\n(a) no deduction is allowed for the debt or any provision made for it;\\nand\\n(b) any amount recovered from the debt, or any reversal of the\\nimpairment loss, is not chargeable to tax.\\nDeductions for impairment losses\\n(4) Despite sections 10(1) and 34AA(1), where a redomiciled VCC\\nincurred before its registration date any impairment loss from any\\nfinancial asset on revenue account acquired for the purpose of the\\nsub‑fund’s trade or business outside Singapore, any amount of the loss\\nthat is reversed after that registration date is not chargeable to tax.\\n(5) Where a redomiciled VCC incurs on or after its registration date any\\nimpairment loss in the course of carrying on a trade or business in relation to\\na sub‑fund in Singapore (called in this section the sub‑fund’s trade or\\nbusiness in Singapore), from any financial asset on revenue account that was\\nacquired for the purpose of the sub‑fund’s trade or business outside\\nSingapore before its registration date —\\n(a) a deduction is allowed in determining the sub‑fund’s income for\\nthat loss to the extent that it becomes credit‑impaired within the\\nmeaning of FRS 109 or SFRS(I) 9, as the case may be; and\\nIncome Tax Act 1947\\n2020 Ed.\\n1114\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nTHIRD SCHEDULE — continued\\n(b) any amount of that loss that is subsequently reversed is deemed as\\nincome of the sub‑fund to the extent of the deduction allowed\\nunder paragraph (a).\\n(6) Subsections (4) and (5) do not apply to an impairment loss from a debt\\nto which subsection (3) applies.\\nDeductions for expenses\\n(7) No deduction is allowed under section 14 for any expense incurred by a\\nredomiciled VCC before its registration date for the purpose of the\\nsub‑fund’s trade or business outside Singapore and for which the VCC has\\nbeen allowed or given any deduction or relief under any law of a country\\noutside Singapore that levies tax of a similar character to income tax (by\\nwhatever name called).\\nDeductions for trading stocks\\n(8) For the purposes of determining the amount of deduction to be allowed\\nin determining the sub‑fund’s income under any provision of this Act for any\\ntrading stock that the redomiciled VCC acquired before its registration date\\nfor the purpose of the sub‑fund’s trade or business outside Singapore, the\\nvalue of the trading stock is the lower of the following:\\n(a) the cost of the trading stock to the redomiciled VCC;\\n(b) the net realisable value of the trading stock on that date.\\nDeductions under section 14R\\n(9) Despite anything in section 14R, where the redomiciled VCC has never\\nat any time carried on any trade or business in relation to the sub‑fund in or\\noutside Singapore before its registration date, a deduction may only be\\nallowed for the purpose of determining the sub‑fund’s income under that\\nsection for any cost, payment or expenditure incurred or made before that\\nregistration date, if such cost, payment or expenditure is incurred or made for\\nthe purpose of the sub‑fund’s trade or business in Singapore.\\n(10) The deduction under subsection (9) may only be allowed for the year\\nof assessment relating to the basis period in which the sub‑fund’s trade or\\nbusiness in Singapore commenced.\\nAllowances for machinery or plant under section 19\\n(11) Where a redomiciled VCC —\\n(a) incurred capital expenditure before its registration date to acquire\\nany machinery or plant for the purpose of the sub‑fund’s trade or\\nbusiness outside Singapore; and\\nIncome Tax Act 1947\\n1115\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nTHIRD SCHEDULE — continued\\n(b) uses the machinery or plant for the purposes of the sub‑fund’s\\ntrade or business in Singapore on or after that date,\\nthen, for the purpose of determining the sub‑fund’s income, an initial\\nallowance may be made for that capital expenditure, and an annual allowance\\nmay be made for the depreciation by wear and tear of that machinery or plant,\\nin accordance with section 19 as modified under subsection (12).\\n(12) Section 19 applies in relation to the making of initial and annual\\nallowances under subsection (11), and to initial and annual allowances so\\nmade, subject to the following modifications:\\n(a) the allowances may only be made under that section if the\\nredomiciled VCC carries on a trade or business in relation to the\\nsub‑fund in Singapore on or after the redomiciled VCC’s\\nregistration date;\\n(b) the capital expenditure is treated as having been incurred for the\\nprovisioning of the machinery or equipment for the sub‑fund’s\\ntrade or business in Singapore;\\n(c) except as provided under paragraph (d), the allowances under that\\nsection may only be made in respect of the lower of the following:\\n(i) the net book value of the machinery or plant as of the\\nregistration date;\\n(ii) the market value of the machinery or plant as of that date,\\n(c) and that lower amount is treated as the capital expenditure\\nincurred in acquiring that machinery or plant, and the original\\ncost of the machinery or plant;\\n(d) for the purposes of making the initial allowance under\\nsection 19(1) in determining the sub‑fund’s income for any\\nmachinery or plant that is acquired under a hire‑purchase\\nagreement, the reference in that provision to the capital\\nexpenditure is a reference to an amount computed by the formula\\nA\\nB \\u0003 C;\\n(d) where —\\n(i) A is —\\n(A) in the first year of claim for that allowance, the sum\\nof all deposits and instalment payments (excluding\\nfinance charges) made up to the end of the basis\\nIncome Tax Act 1947\\n2020 Ed.\\n1116\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nTHIRD SCHEDULE — continued\\nperiod in which the date of commencement of the\\nsub‑fund’s trade or business in Singapore falls; and\\n(B) in each subsequent year of claim for that allowance,\\nthe sum of all instalment payments (excluding\\nfinance charges) made in the basis period to which\\nthe claim relates;\\n(ii) B is the sum of all deposits and instalment payments\\n(excluding any finance charges) under the hire‑purchase\\nagreement; and\\n(iii) C is the lower amount of the machinery or plant\\nmentioned in paragraph (c);\\n(e) for the purposes of making the initial allowance in determining\\nthe sub‑fund’s income, the capital expenditure is treated as having\\nbeen incurred by the redomiciled VCC on the first day on which it\\ncarries on the sub‑fund’s trade or business in Singapore;\\n(f) section 19(1B), (2)(b), (3), (4), (5) and (5B) does not apply;\\n(g) such other modifications as may be prescribed.\\n(13) Except as provided under subsection (11), no allowance may be made\\nunder section 19 in determining the sub‑fund’s income in a case mentioned in\\nsubsection (11)(a) and (b), in relation to any capital expenditure mentioned in\\nsubsection (11)(a).\\nAllowances for machinery, plant, etc., under section 19A\\n(14) Where a redomiciled VCC —\\n(a) incurred capital expenditure before its registration date to acquire\\nany item mentioned in section 19A(1), (2), (3), (4), (5), (6), (7) or\\n(8) or develop a website mentioned in section 19A(10), for the\\npurpose of the sub‑fund’s trade or business outside Singapore;\\nand\\n(b) uses such item or website for the purposes of the sub‑fund’s trade\\nor business in Singapore on or after that date,\\nthen an allowance may be made in determining the sub‑fund’s income in lieu\\nof the allowances under section 19 (as applied by subsection (11)), for the\\ncapital expenditure under section 19A(1), (2), (3), (4), (5), (6), (7), (8) or (10)\\n(whichever is applicable), as modified under subsection (15).\\nIncome Tax Act 1947\\n1117\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nTHIRD SCHEDULE — continued\\n(15) Section 19A applies in relation to the making of an allowance under\\nsubsection (14), and to any allowance so made, subject to the following\\nmodifications:\\n(a) the allowance may only be made under that section if the\\nredomiciled VCC carries on a trade or business in relation to the\\nsub‑fund in Singapore on or after its registration date;\\n(b) the capital expenditure is treated as having been incurred for the\\nprovision of the item or website for the sub‑fund’s trade or\\nbusiness in Singapore;\\n(c) the allowance may only be made in respect of the lower of the\\nfollowing:\\n(i) the net book value of the item or website as of the\\nregistration date;\\n(ii) the market value of the item or website as of that date,\\n(c) and that lower amount is treated as the capital expenditure\\nincurred on the provision of the item or website for the sub‑fund’s\\ntrade or business in Singapore, and the original cost of the item in\\nsection 19A(10C) (if applicable);\\n(d) section 19A(1B), (1C), (1D), (1E), (1F), (1G), (2A), (2B),\\n(2BAA), (2BA), (2BB), (2BC), (2C), (2D), (2E), (2F), (2FA),\\n(2FB), (2G), (2GA), (2H), (2HA), (2HB), (2I), (2J), (2K), (9),\\n(9A), (13A), (13B), (16), (16A), (16B), (17) and (18) does not\\napply;\\n[Act 39 of 2023 wef 29/12/2023]\\n(e) such other modifications as may be prescribed.\\n(16) Except as provided under subsection (14), no allowance may be made\\nunder section 19A in determining the sub‑fund’s income in a case mentioned\\nin subsection (14)(a) and (b), in relation to any capital expenditure mentioned\\nin subsection (14)(a).\\nWriting‑down allowances for intellectual property rights under section 19B\\n(17) Where a redomiciled VCC —\\n(a) incurred capital expenditure before its registration date to acquire\\nany intellectual property rights for the purpose of the sub‑fund’s\\ntrade or business outside Singapore; and\\n(b) uses those rights for the purpose of the sub‑fund’s trade or\\nbusiness in Singapore on or after that date,\\nIncome Tax Act 1947\\n2020 Ed.\\n1118\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nTHIRD SCHEDULE — continued\\nthen writing‑down allowances may be made in determining the sub‑fund’s\\nincome for the capital expenditure, in accordance with section 19B as\\nmodified by subsection (18).\\n(18) Section 19B applies in relation to the making of writing‑down\\nallowances under subsection (17), and to writing‑down allowances so made,\\nsubject to the following modifications:\\n(a) the allowances may only be made under that section if the\\nsub‑fund’s trade or business is carried on in Singapore on or after\\nthe registration date;\\n(b) the capital expenditure is treated as having been incurred for the\\nacquisition of those intellectual property rights for use in the\\nsub‑fund’s trade or business in Singapore;\\n(c) the allowances may only be made in respect of the lower of the\\nfollowing:\\n(i) the acquisition cost of the intellectual property rights less\\naccumulated amortisation and impairment losses as of the\\nregistration date;\\n(ii) the open‑market price of the rights as of that date,\\n(c) and that lower amount is treated as the capital expenditure\\nincurred in acquiring those rights;\\n(d) section 19B(1), (1A), (1AA)(b), (1AC), (1AD), (1AE), (1AF),\\n(1AG), (1AH), (1B), (1BAA), (1BA), (1BB), (1BC), (1C), (1D),\\n(1E), (2B), (2C), (2D), (2E), (8), (9), (10D), (10E), (10F), (10G),\\n(10H), (10I), (10J), (10K) and (12) does not apply;\\n[Act 30 of 2023 wef 30/10/2023]\\n(e) the election under section 19B(1AB) must be made at the time of\\nlodgment of the redomiciled VCC’s return of income for the year\\nof assessment relating to the later of the following:\\n(i) the basis period in which the redomiciled VCC’s\\nregistration date falls;\\n(ii) the basis period in which the date of commencement of\\nthe sub‑fund’s trade or business in Singapore falls;\\n(f) such other modifications as may be prescribed.\\n(19) In subsection (18)(c), “open‑market price”, in relation to intellectual\\nproperty rights, has the meaning given to it by section 19B(10F), with the\\nreference to the acquisition date of those rights substituted with a reference to\\nthe redomiciled VCC’s registration date.\\nIncome Tax Act 1947\\n1119\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nTHIRD SCHEDULE — continued\\n(20) Except as provided under subsection (17), no writing‑down allowance\\nmay be made under section 19B in determining the sub‑fund’s income in a\\ncase mentioned in subsection (17)(a) and (b) in relation to any capital\\nexpenditure mentioned in subsection (17)(a).\\nSection 43(6C) inapplicable\\n(21) Section 43(6C) does not apply.\\nRegulations\\n(22) The Minister may make regulations necessary or convenient to be\\nprescribed for carrying out or giving effect to this section and section 34H,\\nand in particular, make regulations to provide for such transitional,\\nsupplementary\\nor\\nconsequential\\nmatters\\nas\\nthe\\nMinister\\nconsiders\\nnecessary or expedient.\\nTax credits for approved redomiciled VCCs\\n34H.—(1) This section applies where —\\n(a) a body corporate incorporated outside Singapore is registered as a\\nVCC under Part 12 of the VCC Act and is an umbrella VCC\\n(called in this section the redomiciled VCC);\\n(b) the redomiciled VCC is approved by the Minister for the purposes\\nof this section;\\n(c) the redomiciled VCC derived or received income for the purpose\\nof a sub‑fund (called in this section income A) that is chargeable\\nto tax in one or more years of assessment beginning with the year\\nof assessment for the basis period in which its registration date\\nfalls; and\\n(d) the redomiciled VCC’s place of incorporation levies on the VCC\\ntax of a similar character to income tax (by whatever name called)\\non an estimate of income A (called in this section income B).\\n(2) The\\nredomiciled\\nVCC\\nmust\\nbe\\nallowed,\\nin\\naccordance\\nwith\\nsubsection (4), a tax credit against tax payable in respect of the part of\\nincome A that is derived or received in the basis period for each year of\\nassessment specified by the Minister to the VCC at the time of its approval\\n(called in this section a specified year of assessment).\\n(3) The total amount of tax credits to be allowed to the redomiciled VCC\\nfor all of its specified years of assessment in respect of income A, is an\\namount C that is computed by the formula (B −B1) × D, where —\\n(a) B is the amount of income B;\\nIncome Tax Act 1947\\n2020 Ed.\\n1120\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nTHIRD SCHEDULE — continued\\n(b) B1 is the part of income B that is derived wholly from any\\nagreement or arrangement entered into on or after the registration\\ndate, as well as any other income prescribed by regulations made\\nunder section 34G; and\\n(c) D is the lower of the following:\\n(i) the rate by which the part of income A derived or received\\nin the basis period in which its registration date falls is\\nchargeable to tax;\\n(ii) the rate by which income B is chargeable to the tax\\ndescribed in subsection (1)(b).\\n(4) Where, throughout a basis period for a specified year of assessment, the\\nredomiciled VCC —\\n(a) is resident in Singapore; and\\n(b) satisfies all of the conditions specified by the Minister to it at the\\ntime of its approval,\\nthen there is to be allowed, against the amount of tax chargeable on income E,\\na credit of an amount that is the lower of the following:\\n(c) the amount of tax;\\n(d) an amount computed by deducting from the amount C the total\\namount of tax credits previously allowed under this section\\nagainst the tax chargeable on any income of the sub‑fund.\\n(5) In subsection (4), income E for a year of assessment is the amount of the\\npart of income A derived or received in the basis period for that year of\\nassessment after deducting the following:\\n(a) the expenses and donations of a sub‑fund for that year of\\nassessment that are attributable to or apportioned to the part of\\nincome A;\\n(b) any capital allowances in respect of any capital expenditure of a\\nsub‑fund for that year of assessment that is attributable to the part\\nof income A whether or not any claim for those allowances has\\nbeen made;\\n(c) any balance of those expenses, allowances and donations which\\nhave not been deducted under this subsection for the purpose of\\ndetermining income E for any previous year of assessment.\\n(6) The balance of any expenses, allowances or donations mentioned in\\nsubsection (5) may only be used to determine income E for a subsequent\\nIncome Tax Act 1947\\n1121\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nTHIRD SCHEDULE — continued\\nspecified year of assessment, and is not available as a deduction against any\\nother income in determining the chargeable income of the sub‑fund under\\nsection 107(3).\\n(7) However, any balance mentioned in subsection (6) that remains —\\n(a) after ascertaining income E for the last of the specified years of\\nassessment; or\\n(b) as of the date of revocation of the approval of the redomiciled\\nVCC,\\nmay be deducted against any other income in determining the chargeable\\nincome of the sub‑fund under section 107(3) for a subsequent year of\\nassessment, or the year of assessment for the basis period in which the\\napproval is revoked or a subsequent basis period (whichever is applicable), in\\naccordance with section 23 or 37 (as applied by section 107(3)), as the case\\nmay be.\\n(8) Any balance of the amount C after a tax credit has been allowed for the\\nlast of the specified years of assessment must be disregarded.\\n(9) If, at any time after the registration date, and during a period specified\\nby the Minister to it at the time of its approval, the redomiciled VCC ceases to\\ncarry on any trade or business in Singapore in relation to that sub‑fund\\nmentioned in subsection (1), an amount computed using the formula F\\u0001G\\nF \\u0003 H\\nis recoverable by the Comptroller from the umbrella VCC as a debt due to the\\nGovernment, where —\\n(a) F is the total number of its specified years of assessment or 5,\\nwhichever is larger;\\n(b) G is the total number of complete years where the umbrella VCC\\ncarried on a trade or business in Singapore in relation to that\\nsub‑fund; and\\n(c) H is the total amount of tax credits already allowed against the tax\\nchargeable on the income of the sub‑fund under this section.\\n(10) If the Comptroller is satisfied that —\\n(a) the redomiciled VCC gave to the Comptroller information that is\\nfalse in any material particular, or omitted any material particular\\nfrom any information or document given to the Comptroller; and\\n(b) as a result of the false information or omission, an amount of tax\\ncredit was allowed against tax chargeable on income under this\\nsection,\\nIncome Tax Act 1947\\n2020 Ed.\\n1122\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nTHIRD SCHEDULE — continued\\nthen an amount equal to the amount of tax credit so allowed is recoverable by\\nthe Comptroller from the VCC as a debt due to the Government.\\n(11) The amount of the tax credit recoverable from the VCC under\\nsubsection (9) or (10) is considered (for the purpose of section 29 of the VCC\\nAct) liability incurred by the VCC for the purpose of the sub‑fund mentioned\\nin subsection (9), or for the purpose of the sub‑fund to which the information\\nor document mentioned in subsection (10) relates.\\n(12) The amount recoverable under subsection (9) or (10) must be paid at\\nthe place stated in the notice served by the Comptroller on the redomiciled\\nVCC within 30 days after the service of the notice.\\n(13) The Comptroller may, in his or her discretion, and subject to such\\nterms and conditions as the Comptroller may impose, extend the time within\\nwhich payment is to be made.\\n(14) Sections 86(1), (2), (3), (4), (5) and (6), 87(1) and (2), 89, 90 and 91\\napply to the collection and recovery by the Comptroller of the amount\\nrecoverable under subsection (9) or (10) as they apply to the collection and\\nrecovery of tax.\\n(15) In this section —\\n“capital expenditure of a sub‑fund”, “donation of a sub‑fund” and\\n“expense of a sub‑fund” have the meanings given by section 107(4);\\n“place of incorporation”, in relation to the redomiciled VCC, means the\\njurisdiction where the VCC was domiciled at the time it applied for\\nregistration under Part 12 of the VCC Act;\\n“registration” means registration under section 135(1) of the VCC Act;\\n“registration date”, in relation to the redomiciled VCC, means the date\\nof its registration specified in the notice of transfer of registration\\nissued to it under section 135(3) of the VCC Act.”.\\nPART 3\\nPROVISIONS THAT APPLY IN PLACE OF\\nSECTIONS 50, 50A AND 50C WHERE INCOME\\nIS THAT OF UMBRELLA VCC\\nSections 106(1) and 107(28)\\nSections 50, 50A and 50C as set out below apply in place of sections 50, 50A and\\n50C respectively in a case where the income in question is that of an umbrella\\nVCC:\\nIncome Tax Act 1947\\n1123\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nTHIRD SCHEDULE — continued\\n“Tax credits\\n50.—(1) This section has effect where, under arrangements having effect\\nunder section 49, tax payable in the territory of the government of which the\\narrangements are made, in respect of any income of an umbrella VCC, is to\\nbe allowed as a credit against tax payable in respect of that income in\\nSingapore.\\n(2) Where the umbrella VCC is resident in Singapore, the amount of\\nincome tax chargeable on the income is reduced by deducting, from the\\namount of the income tax that is attributable to the part of the chargeable\\nincome of the umbrella VCC that is income derived or received by the\\numbrella VCC for the purpose of each of its sub‑funds (called in this section a\\nsub‑fund’s assessable income), the amount of the credit that is attributable to\\nthe sub‑fund’s assessable income.\\n(3) The amount of the credit under subsection (2) must not exceed the\\namount produced by computing the amount of the income of the sub‑fund in\\naccordance with the provisions of this Act and the subsidiary legislation\\nmade under it (as modified by section 107 to apply to a VCC) as if it were a\\nVCC, and then charging it to income tax at a rate ascertained by the formula\\nA\\nB ;\\nwhere —\\n(a) A is the income tax chargeable (before making the reduction\\nunder subsection (2)) on the sub‑fund’s assessable income had it\\nbeen a VCC; and\\n(b) B is the amount of the sub‑fund’s assessable income.\\n(4) Without limiting subsection (3), the amount of the reduction under\\nsubsection (2) in respect of any sub‑fund for any year of assessment for\\nforeign tax under all arrangements having effect under section 49 must not\\nexceed the total amount of income tax payable by the umbrella VCC that is\\nattributable to the assessable income of the sub‑fund, excluding any tax\\npayable by the umbrella VCC under section 45 or that section as applied by\\nsection 107(27), that is attributable to such income.\\n(5) In computing the amount of the sub‑fund’s assessable income under\\nsubsection (2) —\\n(a) no deduction may be allowed in respect of foreign tax (whether in\\nrespect of the same or any other income);\\nIncome Tax Act 1947\\n2020 Ed.\\n1124\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nTHIRD SCHEDULE — continued\\n(b) where the income tax chargeable depends on the amount received\\nin Singapore, that amount is to be increased by the appropriate\\namount of the foreign tax in respect of the income; and\\n(c) where the income includes a dividend and under the arrangements\\nforeign tax not chargeable directly or by deduction in respect of\\nthe dividend is to be taken into account in considering whether\\nany (and if so what) credit is to be given against income tax in\\nrespect of the dividend, the amount of the income is to be\\nincreased by the amount of the foreign tax not so chargeable that\\nfalls to be taken into account in computing the amount of the\\ncredit.\\n(6) Subsection (5)(a) and (b) applies to the computation of the sub‑fund’s\\nassessable income in subsection (3) for the purposes of determining the rate\\nmentioned in that subsection, and applies to such computation in relation to\\nall income in the case of which credit falls to be given for foreign tax under\\narrangements for the time being in force under section 49.\\n(7) Where —\\n(a) the arrangements provide, in relation to dividends of some\\nclasses, but not in relation to dividends of other classes, that\\nforeign tax not chargeable directly or by deduction in respect of\\ndividends is to be taken into account in considering whether any\\n(and if so what) credit is to be given against income tax in respect\\nof the dividends; and\\n(b) a dividend is paid that is not of a class in relation to which the\\narrangements so provide,\\nthen, if the dividend is paid to the umbrella VCC for the purpose of a\\nsub‑fund and the umbrella VCC controls directly or indirectly, through that\\nsub‑fund, not less than one‑half of the voting power in the company paying\\nthe dividend, credit is to be allowed as if the dividend were a dividend of a\\nclass in relation to which the arrangements so provide.\\n(8) Where an umbrella VCC elects that credit may not be allowed under\\nthis section in respect of the income derived or received by the umbrella VCC\\nfor the purpose of its sub‑funds for any year of assessment, credit may not be\\nallowed under the arrangements against the income tax chargeable in respect\\nof the umbrella VCC’s income for that year.\\n(9) Where an umbrella VCC elects that credit may not be allowed under\\nthis section in respect of the income of one or some (but not all) of its\\nsub‑funds for any year of assessment, then this section applies as if the\\nIncome Tax Act 1947\\n1125\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nTHIRD SCHEDULE — continued\\numbrella VCC only consists of the sub‑fund or sub‑funds for which no such\\nelection was made.\\n(10) Any claim for an allowance by way of credit must be made not later\\nthan 2 years after the end of the year of assessment to which the claim relates\\n(if the year of assessment is the year of assessment 2021 or a previous year of\\nassessment), or 4 years after the end of the year of assessment to which the\\nclaim relates (if the year of assessment is any other year of assessment), and\\nin the event of any dispute as to the amount allowable the claim is subject to\\nobjection and appeal in like manner as an assessment.\\n(11) Where the amount of any credit given under the arrangements is\\nrendered excessive or insufficient by reason of any adjustment of the amount\\nof any tax payable either in Singapore or elsewhere, nothing in this Act\\nlimiting the time for the making of assessments or claims for relief applies to\\nany assessment or claim to which the adjustment gives rise, being an\\nassessment or claim made not later than 3 years from the time when all such\\nassessments, adjustments and other determinations have been made, whether\\nin Singapore or elsewhere, as are material in determining whether any (and if\\nso what) credit falls to be given.\\n(11A) If the amount of any credit given under the arrangements to an\\numbrella VCC attributable to any of its sub‑funds is rendered excessive by\\nreason of any adjustment of the amount of any tax payable in any territory\\noutside Singapore, the umbrella VCC must give the Comptroller a written\\nnotice of the particulars of the adjustment, in the manner specified by the\\nComptroller, within one year after the adjustment is made.\\n(11B) An umbrella VCC that, without reasonable excuse, fails to comply\\nwith subsection (11A) shall be guilty of an offence and shall be liable on\\nconviction to a penalty not exceeding the amount of the excess credit under\\nsubsection (11A).\\n(11C) The\\nComptroller\\nmay\\ncompound\\nany\\noffence\\nunder\\nsubsection (11B).\\n(12) The amount that corresponds to the amount of tax attributable to a\\nsub‑fund’s assessable income, that is considered liability incurred by the\\numbrella VCC for the purpose of the sub‑fund under section 107(8), is to be\\nreduced by the amount of the credit deducted from such income under\\nsubsection (2).\\n(13) In this section —\\n“foreign tax” means any tax payable in that territory which under the\\narrangements is to be so allowed;\\nIncome Tax Act 1947\\n2020 Ed.\\n1126\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nTHIRD SCHEDULE — continued\\n“income tax” means tax chargeable under this Act.\\nUnilateral tax credits\\n50A.—(1) Even if there are no arrangements in force under section 49 with\\nthe government of any territory outside Singapore, tax credit under section 50\\nmust be given to any umbrella VCC resident in Singapore against tax\\nchargeable in respect of any of the following for tax payable under the law of\\nthat territory —\\n(a) any royalty derived from that territory, where the payment is\\nnot —\\n(i) borne, directly or indirectly, by a person resident in\\nSingapore or a permanent establishment in Singapore\\n(except in respect of any business carried on outside\\nSingapore through a permanent establishment outside\\nSingapore); or\\n(ii) deductible against any income accruing in or derived from\\nSingapore;\\n(b) any dividend derived from that territory;\\n(c) any profit derived from outside Singapore by a branch in that\\nterritory of the umbrella VCC;\\n(d) any income derived from any trade or business carried on in that\\nterritory through a permanent establishment in that territory;\\n(e) any discount or premium from debt securities or interest derived\\nfrom that territory where the payment is not —\\n(i) borne, directly or indirectly, by a person resident in\\nSingapore or a permanent establishment in Singapore\\n(except in respect of any business carried on outside\\nSingapore through a permanent establishment outside\\nSingapore); or\\n(ii) deductible against any income accruing in or derived from\\nSingapore;\\n(f) any rent or other income ancillary to the holding of immovable\\nproperties located in that territory but not including gains from the\\ndisposal of such immovable properties derived from a trade or\\nbusiness carried on in Singapore; and\\nIncome Tax Act 1947\\n1127\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nTHIRD SCHEDULE — continued\\n(g) any gains or profits of an income nature not falling within\\nparagraphs (a), (b), (c), (d), (e) and (f) that is derived from that\\nterritory.\\n(2) Where —\\n(a) any dividend in respect of which tax credit is given under\\nsubsection (1)(b) is paid by a company resident outside Singapore\\nto an umbrella VCC resident in Singapore;\\n(b) the dividend is paid to the umbrella VCC for a sub‑fund; and\\n(c) the umbrella VCC owns, for the purpose of that sub‑fund, not less\\nthan 25% of the total number of issued shares of the company\\npaying the dividend,\\nthen the tax credit by which the amount of income tax chargeable on the\\ndividend is to be reduced under section 50(2) must take into account any tax\\npaid by that company in the country in which it is resident in respect of its\\nincome out of which the dividend is paid.\\n(3) Where —\\n(a) under arrangements for the time being in force under section 49\\nwith the government of a territory outside Singapore, no\\nprovision is made for tax credit in respect of income out of\\nwhich any dividend is paid by a company resident in that territory\\nto an umbrella VCC resident in Singapore for a sub‑fund;\\n(b) the dividend is paid to the umbrella VCC for a sub‑fund; and\\n(c) the umbrella VCC owns, for the purpose of that sub‑fund, not less\\nthan 25% of the total number of issued shares of the company\\npaying the dividend,\\ntax credit under section 50 in respect of such income must be given to the\\numbrella VCC and applied in accordance with section 50.\\n(4) Section 50 applies, with the necessary modifications, for the purposes\\nof this section as if any territory to which this section and the regulations have\\neffect were a territory with which arrangements have been made under\\nsection 49.\\n(5) Any umbrella VCC granted any tax credit under subsection (1) on any\\nincome may not be given any tax credit under section 50 in respect of that\\nincome.\\n(6) The Minister may, in any particular case, waive the requirement of 25%\\nshare ownership mentioned in subsections (2) and (3).\\nIncome Tax Act 1947\\n2020 Ed.\\n1128\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nTHIRD SCHEDULE — continued\\n(7) In\\nthis\\nsection,\\n“debt\\nsecurities”\\nhas\\nthe\\nmeaning\\ngiven\\nby\\nsection 43H(4).\\nPooling of credits\\n50C.—(1) Where, for any year of assessment, an umbrella VCC is entitled\\nto 2 or more tax credits under any other provision of this Part, and some or all\\nof which are attributable to the part of the chargeable income of the VCC that\\nis income derived or received by the umbrella VCC for the purpose of any\\nparticular sub‑fund (called in this section a sub‑fund’s assessable income),\\nthe umbrella VCC may elect in relation to that sub‑fund to be given a pooled\\ncredit for that year of assessment in lieu of any 2 or more of those credits\\n(called in this section the replaced credits).\\n(2) Subsection (1) only applies if the income that is the subject of each\\nreplaced credit (called in this section the elected income) satisfies all of the\\nfollowing conditions:\\n(a) tax under the law of the territory from which the income is\\nderived that is of a similar character to income tax (by whatever\\nname called) has been paid on the income;\\n(b) at the time the income is received in Singapore by the umbrella\\nVCC, the highest rate of tax of a similar character to income tax\\n(by whatever name called) levied under the law of that territory on\\nany gains or profits from any trade or business carried on by a\\ncompany in that territory at that time, is not less than 15%;\\n(c) the income tax payable under this Act on the income for the year\\nof assessment (before allowance of any credit under this Part) is\\nnot nil.\\n(3) The total amount of the income tax chargeable to the umbrella VCC in\\nrespect of all the elected income must be reduced by the amount of the pooled\\ncredit.\\n(4) The amount of the pooled credit is the lower of —\\n(a) the sum of the income tax chargeable for the year of assessment\\non all the elected income; and\\n(b) the sum of the taxes paid on all the elected income in the territory\\nor territories outside Singapore from which the elected income is\\nderived.\\n(5) In subsection (4)(a), the sum of the income tax chargeable for the year\\nof assessment on all the elected income is ascertained by —\\nIncome Tax Act 1947\\n1129\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nTHIRD SCHEDULE — continued\\n(a) computing the amount of the income that is the subject of each\\nreplaced credit in accordance with the provisions of this Act and\\nthe subsidiary legislation made under it (as modified by\\nsection 107 to apply to a VCC) as if the sub‑fund were a VCC,\\nand then charging it to income tax at a rate ascertained by the\\nformula\\nA\\nB ;\\n(a) where —\\n(i) A is the income tax chargeable (before allowance of any\\ncredit under this Part) on the assessable income of the\\nsub‑fund had it been a VCC; and\\n(ii) B is the amount of that sub‑fund’s assessable income; and\\n(b) totalling the amounts computed in accordance with paragraph (a)\\nof all the replaced credits.\\n(6) Sections 50(5), (6), (10), (11), (11A), (11B), (11C), (12) and (13) and\\n50A(2) apply, with the necessary modifications, for the purposes of this\\nsection.\\n(7) To avoid doubt, sections 50 and 50A continue to apply to any income\\nthat is the subject of a credit or credits allowed under any other provision of\\nthis Part for which no election under this section is made.”.\\n[28/2019; 41/2020; 27/2021]\\nFOURTH SCHEDULE\\nSections 45AA(1), 105R(8)\\nand 106(1) and (3)\\nPRESCRIBED SECTIONS\\nSections 13E, 13G, 13M, 13P, 13R, 14E, 37N, 43C, 43E, 43G, 43I, 43J, 43K,\\n43L, 43N, 43O, 43P, 43Q, 43R, 43S, 43U, 43V, 43W and 43X.\\n[32/2019]\\nIncome Tax Act 1947\\n2020 Ed.\\n1130\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nFIFTH SCHEDULE\\nSections 39(2) and (2AA), 39A and\\n106(1)\\nCHILD RELIEF\\n1. Subject to the provisions of this Schedule, the allowable deduction to an\\nindividual in respect of each of his or her eligible children is $4,000 for each child\\nfor the year of assessment 2012 or a subsequent year of assessment.\\n[Act 33 of 2022 wef 04/11/2022]\\n2. [Deleted by Act 37 of 2014]\\n3. No deduction is allowed in respect of any child who was engaged in any\\nemployment, other than under articles or indentures, or carried on or exercised a\\ntrade, business, profession or vocation, during the year immediately preceding the\\nyear of assessment.\\n[Act 33 of 2022 wef 04/11/2022]\\n3A. For the year of assessment 2012 or any subsequent year of assessment, no\\ndeduction is allowed in respect of any child —\\n(a) who is not incapacitated by reason of physical or mental infirmity; and\\n(b) who meets either or both of the following:\\n(i) his or her income (excluding income to which the child is\\nentitled as the holder of a scholarship, bursary or similar\\neducational endowment) for the year immediately preceding\\nthe year of assessment exceeded $4,000;\\n(ii) he or she was engaged in any employment, other than under\\narticles or indentures, or carried on or exercised a trade,\\nbusiness, profession or vocation, during the year immediately\\npreceding the year of assessment.\\n[Act 33 of 2022 wef 04/11/2022]\\n4. Where more than one individual is entitled to claim a deduction in respect of\\nthe same child under paragraph 1 or the proviso to section 39(2)(e), the deduction\\nis to be apportioned in such manner as appears to the Comptroller to be reasonable.\\n5.—(1) [Deleted by Act 33 of 2022 wef 04/11/2022]\\n(1A) Where a married woman, divorcee or widow maintained, in a year\\nimmediately preceding any year of assessment (being the year of assessment 2012\\nor any subsequent year of assessment), a child (X) who —\\n(a) is a citizen of Singapore as at 31 December of that year; or\\n(b) if X died in that year, was a citizen of Singapore on the date of his or her\\ndeath,\\nIncome Tax Act 1947\\n1131\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nFIFTH SCHEDULE — continued\\nand sub‑paragraph (1AA) applies, then the following deductions are, without\\nprejudice to any deduction allowable under paragraph 1 or proviso (v) to\\nsection 39(2)(e), allowable for that year of assessment to her only:\\n(c) if X is the first eligible\\nchild\\n.\\n15% of her earned income;\\n(d) if X is the second eligible\\nchild\\n20% of her earned income;\\n(e) if X is the third eligible\\nchild\\nor\\na\\nsubsequent\\neligible child\\n25% of her earned income.\\n[Act 30 of 2023 wef 30/10/2023]\\n(1AA) For the purpose of sub‑paragraph (1A), the date mentioned in\\nsub‑paragraph (a), (b), (c), (d) or (e) (whichever is applicable) must be on or\\nbefore 31 December 2023:\\n(a) if X is born to the married woman, divorcee or widow and her husband,\\nformer husband or deceased husband (as the case may be), on or after\\nthe date of their marriage — the date of X’s birth;\\n(b) if X is born to the married woman, divorcee or widow and her husband,\\nformer husband or deceased husband (as the case may be), before the\\ndate of their marriage — the date of the marriage;\\n(c) if X is a stepchild of the married woman, divorcee or widow — the date\\nof X’s birth;\\n(d) if X is adopted by the married woman, divorcee or widow and her\\nhusband, former husband or deceased husband (as the case may be) in\\naccordance with any written law relating to the adoption of children —\\nthe date of X’s adoption as specified in the adoption order;\\n(e) if X is not a citizen of Singapore by birth — the date that X becomes a\\ncitizen of Singapore.\\n[Act 30 of 2023 wef 30/10/2023]\\n(1AB) Where a married woman, divorcee or widow maintained, in a year\\nimmediately preceding any year of assessment (being the year of assessment 2025\\nor any subsequent year of assessment), a child (Y) who —\\n(a) is a citizen of Singapore as at 31 December of that year; or\\n(b) if Y died in that year, was a citizen of Singapore on the date of his or her\\ndeath,\\nIncome Tax Act 1947\\n2020 Ed.\\n1132\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nFIFTH SCHEDULE — continued\\nand sub‑paragraph (1AC) applies, then the following deductions are, without\\naffecting any deduction allowable under paragraph 1 or proviso (v) to\\nsection 39(2)(e), allowable for that year of assessment to her only:\\n(c) if Y is the eligible child\\n. $8,000;\\n(d) if Y is the second eligible child\\n$10,000;\\n(e) if Y is the third eligible child or a subsequent eligible\\nchild\\n$12,000.\\n[Act 30 of 2023 wef 30/10/2023]\\n(1AC) For the purpose of sub‑paragraph (1AB), the date mentioned in\\nsub‑paragraph (a), (b), (c), (d) or (e) (whichever is applicable) must be on or\\nafter 1 January 2024:\\n(a) if Y is born to the married woman, divorcee or widow and her husband,\\nformer husband or deceased husband (as the case may be), on or after\\nthe date of their marriage — the date of Y’s birth;\\n(b) if Y is born to the married woman, divorcee or widow and her husband,\\nformer husband or deceased husband (as the case may be), before the\\ndate of their marriage — the date of the marriage;\\n(c) if Y is a stepchild of the married woman, divorcee or widow — the date\\nof Y’s birth;\\n(d) if Y is adopted by the married woman, divorcee or widow and her\\nhusband, former husband or deceased husband (as the case may be) in\\naccordance with any written law relating to the adoption of children —\\nthe date of Y’s adoption as specified in the adoption order;\\n(e) if Y is not a citizen of Singapore by birth — the date that Y becomes a\\ncitizen of Singapore.\\n[Act 30 of 2023 wef 30/10/2023]\\n(1B) For the purposes of determining whether a child is a “first eligible child”,\\n“second\\neligible\\nchild”\\nor\\n“third\\nand\\nsubsequent\\neligible\\nchild”\\nin\\nsub‑paragraphs (1A) and (1AB), for the year of assessment 2022 or any\\nsubsequent year of assessment, a sibling of the child, being a sibling that is a\\nstillborn child (whether issued from the child’s mother before, on or after\\n1 January 2022), is treated as if the stillborn child were an eligible child, but only if\\nthe natural mother of the stillborn child is the married woman, divorcee or widow\\nclaiming the deduction.\\n[Act 30 of 2023 wef 30/10/2023]\\nIncome Tax Act 1947\\n1133\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nFIFTH SCHEDULE — continued\\n(1C) To avoid doubt, sub‑paragraph (1B) does not imply that a stillborn child is\\nan eligible child in respect of whom a deduction is allowable under\\nsection 39(2)(e).\\n(2) Where more than one married woman, divorcee or widow is entitled to claim\\na deduction in respect of the same child under sub‑paragraph (1A) or (1AB), the\\ndeduction is to be allowed to one such claimant only as determined by the\\nComptroller (whose decision is final) having regard to the circumstances of the\\ncase, including rights of custody, care and control and level of maintenance\\nprovided by each claimant.\\n[Act 33 of 2022 wef 04/11/2022]\\n[Act 30 of 2023 wef 30/10/2023]\\n(3) The total deductions allowable to a married woman, divorcee or widow\\nunder sub‑paragraphs (1A) and (1AB) must not exceed 100% of her earned\\nincome for any year of assessment.\\n[Act 33 of 2022 wef 04/11/2022]\\n[Act 30 of 2023 wef 30/10/2023]\\n6.—(1) [Deleted by Act 37 of 2014]\\n(2) The total deductions allowable to all individuals under paragraphs 1 and\\n5(1A) or (1AB) and proviso (v) to section 39(2)(e) in respect of the same child\\nmust not exceed $50,000.\\n[Act 33 of 2022 wef 04/11/2022]\\n[Act 30 of 2023 wef 30/10/2023]\\n(3) For the purpose of sub‑paragraph (2), any deduction allowable under\\nparagraph 1 or proviso (v) to section 39(2)(e) must first be allowed before a\\ndeduction, to the extent allowable under sub‑paragraph (2), is allowed under\\nparagraph 5.\\n7. In this Schedule —\\n(a) “child”, in relation to an individual claiming a deduction, means a\\nlegitimate child, stepchild or child adopted in accordance with any\\nwritten law relating to the adoption of children;\\n(aa) “stillborn child” has the meaning given by section 42A(12C); and\\n[Act 2 of 2024 wef 16/04/2024]\\n(b) where any question arises as to the ranking of any child for the purpose\\nof any deduction to be granted under this Schedule, it is to be\\ndetermined by the Comptroller whose decision is final.\\n[37/2014; 27/2021]\\nIncome Tax Act 1947\\n2020 Ed.\\n1134\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nSIXTH SCHEDULE\\nSections 19(2), (2AB), (2A), 19A(2FA)\\nand (2G) and 106(1) and (3)\\nNUMBER OF YEARS OF\\nWORKING LIFE OF ASSET\\nItem\\n.\\nNumber of years of\\nworking life of asset\\n1. Aircraft\\n.\\n5\\n2. Bank vaults\\n16\\n3. Building and construction equipment\\n(including assets such as rollers, mixers,\\npiling and drilling plants, loaders, dumpers,\\nexcavators, bulldozers and support structure)\\n6\\n4. Cable cars and equipment\\n12\\n5. Cables and related assets\\n16\\n6. Containers used for the carriage of goods by\\nany mode of transportation\\n10\\n7. Electric, gas, water and steam, utility plant\\n(including tanks and generators)\\n16\\n8. Electrical equipment (including assets such as\\nelectrical and industrial apparatus, domestic\\nand commercial appliances, air‑conditioning\\nand ventilating equipment)\\n8\\n9. Electronic equipment (including assets such\\nas electronic detection, guidance, control,\\nradiation, computation, test and navigation\\nequipment)\\n8\\n10. Equipment used in personal and professional\\nservices (including assets used in the\\nprovision of personal and professional\\nservices which are not elsewhere classified)\\n10\\n11. Farming equipment\\n8\\n12. Fire safety device\\n10\\n13. Floating and dry docks\\n16\\n14. Gas cylinders\\n16\\nIncome Tax Act 1947\\n1135\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nSIXTH SCHEDULE — continued\\nItem\\n.\\nNumber of years of\\nworking life of asset\\n15. Manufacturing and industrial processing\\nplant and machinery\\n6\\n16. Materials and passenger handling equipment\\n(including assets such as lifts, escalators,\\nweighing machines, conveyor belts, forklifts,\\nlifting gears, trolleys and cranes)\\n6\\n17. Motion picture films\\n5\\n18. Musical instruments and other related assets\\n10\\n19. Office equipment:\\n(a) furniture and fixtures (including\\nfurniture and fixtures which are not a\\nstructural component of a building)\\n10\\n(b) data handling equipment (including\\ntypewriters, calculators, adding and\\naccounting machines, copiers and\\nduplicating equipment)\\n8\\n(c) telecommunication equipment\\n10\\n20. Plant for recreation and amusement purposes\\n(including assets used in the provision of\\nentertainment services on payment of a fee or\\nadmission charge, as in the operation of\\nbowling alleys, billiard and pool\\nestablishments, theatres, cinemas, concert\\nhalls, amusement parks and miniature golf\\ncourses)\\n10\\n21. Railway wagons, lines and related equipment\\n16\\n22. Transport equipment:\\n(a) buses\\n6\\n(b) business service passenger vehicles\\n6\\n(c) taxis\\n5\\n(d) trucks, lorries, trailers and vans\\n6\\n(e) motor cycles and bicycles\\n8\\nIncome Tax Act 1947\\n2020 Ed.\\n1136\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nSIXTH SCHEDULE — continued\\nItem\\n.\\nNumber of years of\\nworking life of asset\\n23. Vessels, barges, tugs and similar water\\ntransportation equipment\\n16\\n24. Wholesale and retail trade service assets\\n(including assets used in such activities as the\\noperation of restaurants and cafes)\\n8.\\nSEVENTH SCHEDULE\\nADVANCE RULINGS\\nPART 1\\nSections 106(1) and (3) and 108(1)\\nand (2)\\n1.—(1) Subject to the provisions of this Part, on an application made by a person\\nin accordance with this Part, the Comptroller must make a ruling on how any\\nprovision of this Act applies, or would apply, to the person and to the arrangement\\nfor which the ruling is sought.\\n(2) The Comptroller may make a ruling on how any provision of this Act applies\\nto the arrangement described in an application whether or not reference was made\\nto that provision in the application.\\n(3) The Comptroller must not make a ruling on a provision of this Act that\\nauthorises or requires the Comptroller to —\\n(a) impose or remit a penalty;\\n(b) inquire into the correctness of any return or other information supplied\\nby any person;\\n(c) prosecute any person; or\\n(d) recover any debt owing by any person.\\n(4) An application for a ruling —\\n(a) must be made in such form as the Comptroller may determine; and\\n(b) must comply with the disclosure requirements of paragraph 9.\\n(5) An applicant for a ruling may at any time withdraw the application by written\\nnotice to the Comptroller.\\nIncome Tax Act 1947\\n1137\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nSEVENTH SCHEDULE — continued\\n2. The Comptroller may decline to make a ruling if —\\n(a) the application for the ruling would require the Comptroller to\\ndetermine any question of fact;\\n(b) the Comptroller considers that the correctness of the ruling would\\ndepend on the making of assumptions, whether in respect of a future\\nevent or any other matter;\\n(c) the matter on which the ruling is sought is subject to an objection or\\nappeal, whether in relation to the applicant or any other person;\\n(d) the applicant has outstanding debts relating to earlier ruling\\napplications; or\\n(e) the matter on which the ruling is sought is the subject of a return which\\nhas been or is due to be lodged under this Act.\\n3. The Comptroller must not make a ruling if —\\n(a) at the time the application is made or at any time before the ruling is\\nissued, the Comptroller considers that the person to whom the ruling is\\nto apply is not seriously contemplating the arrangement for which the\\nruling is sought;\\n(b) the application is frivolous or vexatious;\\n(c) the matter on which the ruling is sought —\\n(i) concerns tax (excluding estimated tax) that is due and payable,\\nunless the application is received before the tax is due and\\npayable;\\n(ii) involves the interpretation of any foreign law; or\\n(iii) is being dealt with, or in the Comptroller’s opinion should be\\ndealt with, by one or both competent authorities of the parties\\nto an agreement to avoid double taxation;\\n(d) a ruling already exists on how the relevant provision of this Act applies\\nto the person and the arrangement, and the proposed ruling would\\napply to a period or a year of assessment to which the existing ruling\\napplies;\\n(e) an assessment (other than an assessment of any estimated tax) relating\\nto the person, the arrangement, and a year of assessment to which the\\nproposed ruling would apply has been made, unless the application is\\nreceived by the Comptroller before the date the assessment is made;\\n(f) the Comptroller is undertaking an audit or investigation on how any\\nprovision of this Act applies to the applicant, or to an arrangement\\nIncome Tax Act 1947\\n2020 Ed.\\n1138\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nSEVENTH SCHEDULE — continued\\nsimilar to the arrangement which is the subject of the application,\\nduring any period for which the proposed ruling would apply were the\\nruling to be made;\\n(g) in the Comptroller’s opinion, the applicant has not provided sufficient\\ninformation in relation to the application after the Comptroller has\\nrequested further information;\\n(h) in the Comptroller’s opinion, it would be unreasonable to make a\\nruling in view of the resources available to the Comptroller; or\\n(i) the application for the ruling would require the Comptroller to form an\\nopinion as to a generally accepted accounting principle or to form an\\nopinion as to a commercially acceptable practice.\\n4. The Comptroller must, where the Comptroller has declined to make a ruling\\nunder paragraph 2 or has not made a ruling by virtue of paragraph 3, notify the\\napplicant in writing of the Comptroller’s decision and the reasons therefor.\\n5. Where the Comptroller has made a ruling to a person on the application of any\\nprovision of this Act in relation to an arrangement, and —\\n(a) the ruling applies in relation to the arrangement during the whole or\\nany part of the period specified in the ruling; and\\n(b) the person has under paragraph 17 disclosed in the return provided\\nunder this Act that the person has relied on the ruling in preparing and\\nproviding the return,\\nthe Comptroller must apply the provision in relation to the person and the\\narrangement in respect of the whole of the period or the part of the period (as the\\ncase may be) in accordance with the ruling.\\n6. A ruling applies in relation to an arrangement as a ruling on a provision of this\\nAct —\\n(a) only if the provision is expressly referred to in the ruling; and\\n(b) only for the period for which the ruling applies.\\n7. A ruling does not apply to a person in relation to an arrangement if —\\n(a) the arrangement is materially different from the arrangement identified\\nin the ruling;\\n(b) there was a material omission or misrepresentation in, or in connection\\nwith, the application for the ruling;\\n(c) the Comptroller makes an assumption about a future event or another\\nmatter that is material to the ruling, and the assumption subsequently\\nproves to be incorrect; or\\nIncome Tax Act 1947\\n1139\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nSEVENTH SCHEDULE — continued\\n(d) the Comptroller stipulates a condition that is not satisfied.\\n8.—(1) A person, in the person’s own right or on behalf of a person who is yet to\\ncome into legal existence, may apply to the Comptroller for a ruling on how a\\nprovision of this Act applies, or would apply, to —\\n(a) the person making the application or the prospective person, as the\\ncase may be; and\\n(b) an arrangement.\\n(2) Two or more persons may jointly apply, or a person on behalf of 2 or more\\npersons who are yet to come into legal existence may apply, to the Comptroller for\\na ruling on how a provision of this Act applies, or would apply, to each person and\\nto an arrangement.\\n9.—(1) An application for a ruling must —\\n(a) identify the applicant;\\n(b) disclose all relevant facts (including the reasons for the arrangement, if\\napplicable) and documents relating to the arrangement in respect of\\nwhich the ruling is sought;\\n(c) state the provision of this Act in respect of which the ruling is sought;\\n(d) state the proposition of law (if any) which is relevant to the issues\\nraised in the application;\\n(e) state whether a previous application has been made on the same or any\\nsimilar arrangement by the applicant and the result of any such\\napplication; and\\n(f) provide a draft ruling.\\n(2) If the Comptroller considers that it would be unreasonable to require the\\napplicant to comply with any of the requirements in sub‑paragraph (1)(c) to (f), the\\nComptroller may waive those requirements.\\n(3) Any document provided by any person under this Schedule must be retained\\nby the Comptroller.\\n10. The Comptroller may at any time request further relevant information from\\nan applicant for a ruling.\\n11.—(1) If the Comptroller considers that the correctness of a ruling would\\ndepend on assumptions being made about a future event or other matter, the\\nComptroller may make the assumptions that the Comptroller considers to be most\\nappropriate.\\nIncome Tax Act 1947\\n2020 Ed.\\n1140\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nSEVENTH SCHEDULE — continued\\n(2) The Comptroller may not make assumptions about information which the\\napplicant can provide.\\n12.—(1) A ruling made by the Comptroller must state —\\n(a) that it is a ruling made under section 108;\\n(b) the identity of the person, the provision of this Act, and the\\narrangement\\n(which\\nmay\\nbe\\nidentified\\nby\\nreference\\nto\\nthe\\narrangement in the application) to which the ruling applies;\\n(c) how the provision of this Act applies to the arrangement and to the\\nperson;\\n(d) the period or year of assessment for which the ruling applies;\\n(e) the material assumptions about future events or other matters made by\\nthe Comptroller; and\\n(f) the conditions (if any) stipulated by the Comptroller.\\n(2) The Comptroller must notify the making of a ruling by sending a copy of the\\nruling to the person or persons who applied for it.\\n13.—(1) The Comptroller may at any time withdraw a ruling by notifying the\\nperson to whom the ruling applies in writing of the withdrawal and the reasons\\ntherefor.\\n(2) The ruling is withdrawn from the date specified in the notice of withdrawal.\\n(3) The date mentioned in sub‑paragraph (2) may not be earlier from the date on\\nwhich the person could reasonably be expected to receive the notice of\\nwithdrawal.\\n(4) If the Comptroller withdraws a ruling —\\n(a) the ruling does not apply to any arrangement entered into or effected\\non or after the date of withdrawal; but\\n(b) the ruling continues to apply in relation to any arrangement for the\\nremainder of the period specified in the ruling if the arrangement has\\nbeen entered into or effected before the date of withdrawal.\\n14.—(1) The Comptroller does not have to withdraw and reissue a new ruling to\\ncorrect a typographical or a minor error if the correction does not change the\\nmeaning of the ruling.\\n(2) A ruling that is not withdrawn and reissued remains valid.\\n15. A ruling does not apply from the date a provision of this Act is repealed or\\namended to the extent that the repeal or amendment changes the way the provision\\napplies in the ruling.\\nIncome Tax Act 1947\\n1141\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nSEVENTH SCHEDULE — continued\\n16. The fact that there has been an application for a ruling does not affect a\\nperson’s obligation to provide any return, make any payment, or do any other act,\\nor the Comptroller’s power to make or amend any assessment.\\n17. Where —\\n(a) a person has obtained a ruling;\\n(b) the person is required to provide a return under this Act; but\\n(c) in preparing the return the person is required to take into account the\\nway in which a provision of this Act applies to the arrangement\\nidentified in the ruling,\\nthe person must disclose in the return —\\n(d) the existence of the ruling;\\n(e) whether or not the person has relied on the ruling in preparing and\\nproviding the return; and\\n(f) any material changes to the arrangement identified in the ruling.\\n18.—(1) The Comptroller may, in respect of an application for a ruling made on\\nor after 1 May 2019, publish a summary of the ruling with the express consent of\\nthe applicant.\\n(2) For the purpose of sub‑paragraph (1) —\\n(a) the summary must set out the tax position of the ruling in a general\\nmanner; and\\n(b) the Comptroller must take reasonable care to ensure that the summary\\ndoes not permit the applicant, the arrangement to which the ruling\\nrelates or any party to the arrangement to be identified.\\nPART 2\\nSections 106(1) and (3) and 108(3)\\n1.—(1) The fees specified in respect of an application for a ruling made in\\naccordance with Part 1 are as follows:\\n(a) a non‑refundable application fee of $660 (inclusive of goods and\\nservices tax), which must accompany the application;\\n(b) a further fee, calculated at $165 (inclusive of goods and services tax)\\nper hour (or part hour), beyond the first 4 hours, spent in consideration\\nof the application by the Comptroller, including any time spent by the\\nComptroller in consulting with the applicant;\\nIncome Tax Act 1947\\n2020 Ed.\\n1142\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nSEVENTH SCHEDULE — continued\\n(c) an additional fee, of up to 2 times the aggregate fee under\\nsub‑paragraphs (a) and (b), for the Comptroller to give priority to\\nthe application and to expedite the Comptroller’s consideration\\nthereof; and\\n(d) reimbursement fees in respect of —\\n(i) any fees paid by the Comptroller to any person, if the\\nComptroller requires external advice in relation to the ruling\\nand the applicant agrees to the Comptroller seeking such\\nexternal advice; and\\n(ii) any costs and reasonable disbursements incurred by the\\nComptroller in relation to the ruling.\\n(2) If an application for a ruling is withdrawn, the applicant is liable to pay any\\nfees under sub‑paragraph (1)(b), (c) and (d) that are incurred up to the time the\\nComptroller receives the notice of the withdrawal from the applicant.\\n2.—(1) This paragraph applies to any application for a ruling made on or after\\n1 May 2019.\\n(2) When the Comptroller informs the applicant that the Comptroller agrees to\\nmake a ruling on the application, unless the application is withdrawn, the applicant\\nmust pay any further fee and additional fee which may apply to the application\\nunder paragraph 1(1), in amounts estimated by the Comptroller.\\n(3) The Comptroller may at any time increase any amount estimated for any\\nsuch fee and, unless the application is withdrawn, the applicant must pay the\\nincrease.\\n(4) Upon the application being withdrawn or the Comptroller making a ruling,\\nas the case may be —\\n(a) if the further fee or additional fee for the application under\\nparagraph 1(1) is more than the amount already paid as that fee, the\\napplicant must pay the difference between those amounts for that fee;\\nand\\n(b) if the amount already paid as the further fee or additional fee is more\\nthan the amount of that fee for the application under paragraph 1(1),\\nthe Authority must refund the applicant the difference between those\\namounts for that fee.\\n3. The Comptroller must ensure as far as is reasonably practicable that every\\neffort is made to minimise the fees to which an applicant is liable in respect of an\\napplication for a ruling.\\n[S 303/2016; S 290/2019]\\nIncome Tax Act 1947\\n1143\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nEIGHTH SCHEDULE\\nSections 105D(2) and 106(1) and (3)\\nINFORMATION TO BE INCLUDED IN A REQUEST\\nFOR INFORMATION UNDER PART 20A\\n1. The purpose of the request.\\n2. The identity of the competent authority.\\n3. The identity of the person in relation to whom the information is requested.\\n4. A statement of the information requested for including its nature, and the\\nform in which the competent authority wishes to receive the information\\nfrom the Comptroller.\\n5. The grounds for believing that the information requested for is held by the\\nComptroller, the Comptroller of Goods and Services Tax, the Comptroller of\\nProperty Tax, the Chief Assessor or the Commissioner of Stamp Duties, or is\\nin the possession or control of a person in Singapore.\\n6. To the extent known, the name and address of any person believed to have\\npossession or control of the information requested for.\\n7. A statement that the request is in conformity with the law and administrative\\npractices of the country of the competent authority, and that the competent\\nauthority is authorised to obtain the information under the laws of that\\ncountry or in the normal course of administrative practice.\\n8. A statement that the country has pursued all means available in its own\\nterritory to obtain the information except those that would give rise to\\ndisproportionate difficulties.\\n9. [Deleted by S 595/2012]\\n10. Any other information required to be included with the request under the\\nprescribed arrangement.\\n11. Any other information that may assist in giving effect to the request.\\nNINTH SCHEDULE\\nSections 6(11A) and 106(1) and (3)\\nSPECIFIED PUBLIC SCHEMES\\n1. Wage credit scheme\\n2. Jobs support scheme\\n3. SkillsFuture Enterprise Credit\\n4. Senior Employment Credit\\nIncome Tax Act 1947\\n2020 Ed.\\n1144\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nNINTH SCHEDULE — continued\\n5. Enabling Employment Credit\\n6. CPF Transition Offset\\n7. Foreign Worker Levy Rebate\\n8. Jobs Growth Incentive\\n9. Rental Support Scheme\\n10. Small Business Recovery Grant\\n[S 310/2022 wef 11/04/2022]\\n11. Progressive Wage Credit Scheme\\n[S 310/2022 wef 11/04/2022]\\n[41/2020; 27/2021]\\n12. Uplifting Employment Credit\\n[S 331/2023 wef 05/06/2023]\\nTENTH SCHEDULE\\nSections 13X(1), 14ZC(1), (2), (2A)\\nand (3) and 106(1) and (3)\\nTENTH SCHEDULE ENTITIES\\n1. SMRT TAXIS PTE. LTD.\\n2. TRANS‑CAB SERVICES PTE. LTD.\\n3. COMFORT TRANSPORTATION PTE LTD\\n4. CITYCAB PTE LTD\\n5. PRIME CAR RENTAL & TAXI SERVICES PTE. LTD.\\n6. PREMIER TAXIS PTE. LTD.\\n7. HDT SINGAPORE TAXI PTE. LTD.\\n8. GRABCAR PTE LTD\\n9. VELOX DIGITAL SINGAPORE PTE LTD\\n10. RYDE TECHNOLOGIES PTE LTD\\n11. TADA MOBILITY (SINGAPORE) PTE LTD\\n[41/2020]\\nIncome Tax Act 1947\\n1145\\n2020 Ed.\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nELEVENTH SCHEDULE\\nSections 6(12B) and 106(3)\\nPRESCRIBED INFORMATION\\n1. The name of a company\\n2. The tax reference number of a company\\n3. The revenue of a company in the basis period for any year of assessment that\\nis derived from any trade or business carried on by that company, presented\\nin ranges determined by the Comptroller\\n4. Whether a company has any net profit or loss before tax in the basis period\\nfor any year of assessment\\n5. Whether a company carried on any trade or business in the basis period for\\nany year of assessment\\n6. Whether a company claimed the deduction of any expense under any of the\\nfollowing provisions in the basis period for any year of assessment:\\n(a) section 14A\\n(b) section 14B\\n(c) section 14C\\n(d) section 14D(1)\\n(e) section 14E\\n(f) section 14H\\n(g) section 14U\\n7. Whether a company received any income in Singapore from outside\\nSingapore (excluding income exempt from tax under section 13(8)) in the\\nbasis period for any year of assessment\\n[Act 33 of 2022 wef 04/11/2022]\\nIncome Tax Act 1947\\n2020 Ed.\\n1146\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nLEGISLATIVE HISTORY\\nINCOME TAX ACT 1947\\nThis Legislative History is provided for the convenience of users of the Income\\nTax Act. It is not part of the Act.\\n1. Ordinance 39 of 1947 — Income Tax Ordinance 1947\\nDate of First Reading\\n:\\n27 November 1947\\n(Bill published on 10 November 1947.\\nNo Bill number given)\\nDate of Second Reading\\n:\\n27 November 1947\\nDate of Third Reading\\n:\\n4 December 1947\\nDate of commencement\\n:\\n1 January 1948\\n2. Ordinance 20 of 1948 — Income Tax (Amendment) Ordinance 1948\\nDate of First Reading\\n:\\n13 July 1948\\n(Bill published on 2 July 1948. No Bill\\nnumber given)\\nDate of Second and Third\\nReadings\\n:\\n13 July 1948\\nDate of commencement\\n:\\n1 January 1948 (except section 20)\\n1 August 1948 (section 20)\\n3. Ordinance 44 of 1950 — Income Tax (Amendment) Ordinance 1950\\nDate of First Reading\\n:\\n13 October 1950\\n(Bill published on 20 October 1950.\\nNo Bill number given)\\nReferred to Select Committee\\n:\\nCouncil Paper No. 92 of 1950\\npresented to Parliament on\\n21 November 1950\\nDate of Second and Third\\nReadings\\n:\\n21 November 1950\\nDate of commencement\\n:\\n1 January 1950 (except sections 4, 11\\nand 13(a))\\n1 January 1948 (sections 11 and 13(a))\\n1 January 1949 (section 4)\\n4. Ordinance 46 of 1950 — Income Tax (Amendment No. 2) Ordinance 1950\\nDate of First Reading\\n:\\n19 December 1950\\n(Bill not published)\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nDate of Second and Third\\nReadings\\n:\\n19 December 1950\\nDate of commencement\\n:\\n1 January 1951\\n5. Ordinance 29 of 1952 — Income Tax (Amendment) Ordinance 1952\\nDate of First Reading\\n:\\n15 July 1952\\n(Bill No. 26/52 published on 18 July\\n1952)\\nDate of Second and Third\\nReadings\\n:\\n19 August 1952\\nDate of commencement\\n:\\n1 January 1952 (except section 3)\\n1 January 1948 (section 3)\\n6. Ordinance 40 of 1953 — Income Tax (Amendment) Ordinance 1953\\nDate of First Reading\\n:\\n18 August 1953\\n(Bill No. 18/53 published on\\n21 August 1953)\\nReferred to Select Committee\\n:\\nCouncil Paper No. 73 of 1953\\npresented to Council on 24 November\\n1953\\nDate of Second and Third\\nReadings\\n:\\n15 December 1953\\nDate of commencement\\n:\\n1 January 1948 (sections 2, 3, 4 and 8)\\n1 January 1951 (section 5(a))\\n1 January 1954 (sections 5(b) and 6)\\n1 January 1953 (sections 5(c) and 7)\\n7. Ordinance 34 of 1954 — Income Tax (Amendment) Ordinance 1954\\nDate of First Reading\\n:\\n15 June 1954\\n(Bill No. 21/54 published on 18 June\\n1954)\\nDate of Second Reading\\n:\\n20 July 1954\\nDate of Third Reading\\n:\\n14 December 1954\\nDate of commencement\\n:\\n1 January 1954\\n8. Ordinance 6 of 1956 — Income Tax (Amendment) Ordinance 1956\\nDate of First Reading\\n:\\n8 February 1956\\n(Bill No. 37/56 published on\\n25 February 1956)\\nii\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nDate of Second and Third\\nReadings\\n:\\n7 March 1956\\nDate of commencement\\n:\\n1 January 1956\\n9. Ordinance 31 of 1958 — Legislative Assembly (Presentation of\\nSubsidiary Legislation) Ordinance 1958\\nDate of First Reading\\n:\\n16 July 1958\\n(Bill No. 158/58 published on 22 July\\n1958)\\nDate of Second Reading\\n:\\n13 August 1958\\nDate of Third Reading\\n:\\n10 September 1958\\nDate of commencement\\n:\\n25 September 1958\\n10. Ordinance 37 of 1958 — Income Tax (Amendment) Ordinance 1958\\nDate of First Reading\\n:\\n10 September 1958\\n(Bill No. 171/58 published on\\n17 September 1958)\\nDate of Second and Third\\nReadings\\n:\\n8 October 1958\\nDate of commencement\\n:\\n1 January 1959 (except section 3)\\n1 January 1956 (section 3)\\n11. Ordinance 49 of 1958 — Income Tax (Amendment No. 2) Ordinance 1958\\nDate of First Reading\\n:\\n3 December 1958\\n(Bill No. 189/58 published on\\n5 December 1958)\\nDate of Second and Third\\nReadings\\n:\\n12 December 1958\\nDate of commencement\\n:\\n1 January 1959\\n12. Ordinance 71 of 1959 — Transfer of Powers Ordinance 1959\\nDate of First Reading\\n:\\n22 September 1959\\n(Bill No. 30/59 published on\\n30 September 1959)\\nDate of Second and Third\\nReadings\\n:\\n11 November 1959\\nDate of commencement\\n:\\n20 November 1959\\niii\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n13. Ordinance 72 of 1959 — Transfer of Powers (No. 2) Ordinance 1959\\nDate of First Reading\\n:\\n22 September 1959\\n(Bill No. 31/59 published on\\n30 September 1959)\\nDate of Second and Third\\nReadings\\n:\\n11 November 1959\\nDate of commencement\\n:\\n20 November 1959\\n14. Ordinance 36 of 1960 — Income Tax (Amendment) Ordinance 1960\\nDate of First Reading\\n:\\n6 April 1960\\n(Bill No. 71/60 published on 22 April\\n1960)\\nDate of Second and Third\\nReadings\\n:\\n11 May 1960 and 12 May 1960\\nDate of commencement\\n:\\n1 January 1960 (sections 2(a), 3 to 5, 7\\nto 23)\\n1 January 1961 (sections 2(b) and 6)\\n15. Ordinance 60 of 1960 — Transfer of Powers Ordinance 1960\\nDate of First Reading\\n:\\n20 October 1960\\n(Bill No. 99/60 published on\\n28 October 1960)\\nDate of Second and Third\\nReadings\\n:\\n16 November 1960\\nDate of commencement\\n:\\n9 December 1960\\n16. Ordinance 77 of 1960 — Income Tax (Amendment No. 2) Ordinance 1960\\nDate of First Reading\\n:\\n13 December 1960\\n(Bill No. 118/60 published on\\n19 December 1960)\\nDate of Second and Third\\nReadings\\n:\\n29 December 1960\\nDate of commencement\\n:\\n1 January 1961\\n17. Ordinance 15 of 1962 — Income Tax (Amendment) Ordinance 1962\\nDate of First Reading\\n:\\n14 March 1962\\n(Bill No. 170/62 published on\\n16 March 1962)\\niv\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nDate of Second and Third\\nReadings\\n:\\n26 March 1962\\nDate of commencement\\n:\\n1 January 1962\\n18. Malaysia Act 21 of 1964 — Income Tax Act 1964\\nDate of First Reading\\n:\\n6 July 1964\\n(Bill published on 6 July 1964. No Bill\\nnumber given)\\nDate of Second and Third\\nReadings\\n:\\n14 July 1964\\nDate of commencement\\n:\\n30 July 1964\\n19. Malaysia Act 2 of 1965 — Finance Act 1965\\nDate of First Reading\\n:\\n24 December 1964\\n(Bill published on 24 December 1964.\\nNo Bill number given)\\nDate of Second and Third\\nReadings\\n:\\n29 December 1964\\nDate of commencement\\n:\\n1 January 1965\\n20. Malaysia Act 43 of 1965 — Income Tax Laws (Singapore and the States of\\nMalaya) (Amendment) Act 1965\\nDate of First Reading\\n:\\n26 May 1965\\n(Bill published on 26 May 1965. No\\nBill number given)\\nDate of Second and Third\\nReadings\\n:\\n5 June 1965\\nDate of commencement\\n:\\n30 June 1965\\n21. Act 29 of 1965 — Income Tax (Amendment) Act 1965\\nDate of First Reading\\n:\\n13 December 1965\\n(Bill No. 54/65 published on\\n20 December 1965)\\nDate of Second and Third\\nReadings\\n:\\n31 December 1965\\nDate of commencement\\n:\\n1 January 1966\\nv\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n22. Act 44 of 1966 — Income Tax (Amendment) Act 1966\\nDate of First Reading\\n:\\n26 October 1966\\n(Bill No. 43/66 published on\\n2 November 1966)\\nDate of Second and Third\\nReadings\\n:\\n5 December 1966\\nDate of commencement\\n:\\n16 December 1966\\n23. Act 33 of 1967 — Income Tax (Amendment) Act 1967\\nDate of First Reading\\n:\\n31 October 1967\\n(Bill No. 30/67 published on\\n4 November 1967)\\nDate of Second and Third\\nReadings\\n:\\n14 November 1967\\nDate of commencement\\n:\\n18 November 1967\\n24. Act 23 of 1969 — Income Tax (Amendment) Act 1969\\nDate of First Reading\\n:\\n15 October 1969\\n(Bill No. 18/69 published on\\n18 October 1969)\\nDate of Second and Third\\nReadings\\n:\\n23 December 1969\\nDate of commencement\\n:\\n1 January 1970\\n25. Act 7 of 1970 — Income Tax (Amendment) Act 1970\\nDate of First Reading\\n:\\n17 March 1970\\n(Bill No. 8/70 published on 18 March\\n1970)\\nDate of Second and Third\\nReadings\\n:\\n30 March 1970\\nDate of commencement\\n:\\n1 January 1970\\n26. G.N. No. S 169/71 — Income Tax (Amendment of Fourth Schedule)\\nOrder 1971\\nDate of commencement\\n:\\n15 July 1970\\n27. Act 48 of 1970 — Statute Law Revision Act 1970\\nDate of First Reading\\n:\\n2 September 1970\\n(Bill No. 36/70 published on\\n7 September 1970)\\nvi\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nDate of Second and Third\\nReadings\\n:\\n4 November 1970\\nDate of commencement\\n:\\n11 December 1970\\n28. 1970 Revised Edition — Income Tax Act (Chapter 141)\\nDate of operation\\n:\\n1 March 1971\\n29. G.N. No. S 84/72 — Income Tax (Amendment of Fourth Schedule)\\nOrder 1972\\nDate of commencement\\n:\\n26 July 1971\\n30. G.N. No. S 85/72 — Income Tax (Amendment of Fourth Schedule) (No. 2)\\nOrder 1972\\nDate of commencement\\n:\\n15 October 1971\\n31. G.N. No. S 168/72 — Income Tax (Amendment of Fourth Schedule)\\n(No. 3) Order 1972\\nDate of commencement\\n:\\n15 April 1972\\n32. G.N. No. S 137/84 — Income Tax Act (Amendment of First Schedule)\\nOrder 1984\\nDate of commencement\\n:\\n2 July 1972\\n33. G.N. No. S 239/72 — Income Tax (Amendment of Fourth Schedule)\\n(No. 4) Order 1972\\nDate of commencement\\n:\\n15 July 1972\\n34. G.N. No. S 176/73 — Income Tax (Amendment of Fourth Schedule)\\n(No. 2) Order 1973\\nDate of commencement\\n:\\n15 March 1973\\n35. Act 26 of 1973 — Income Tax (Amendment) Act 1973\\nDate of First Reading\\n:\\n11 July 1973\\n(Bill No. 42/73 published on 14 July\\n1973)\\nDate of Second and Third\\nReadings\\n:\\n26 July 1973\\nDate of commencement\\n:\\n10 August 1973\\n36. G.N. No. S 340/73 — Income Tax (Amendment of Fourth Schedule)\\n(No. 3) Order 1973\\nDate of commencement\\n:\\n27 August 1973\\nvii\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n37. G.N. No. S 38/77 — Income Tax (Amendment of First Schedule)\\nOrder 1977\\nDate of commencement\\n:\\n1 October 1973 (paragraph 2(a))\\n1 April 1976 (paragraph 2(b))\\n38. G.N. No. S 22/73 — Income Tax (Amendment of Fourth Schedule)\\nOrder 1973\\nDate of commencement\\n:\\n15 November 1973\\n39. G.N. No. S 238/74 — Income Tax (Amendment of Fourth Schedule)\\nOrder 1974\\nDate of commencement\\n:\\n1 July 1974\\n40. Act 4 of 1975 — Income Tax (Amendment) Act 1975\\nDate of First Reading\\n:\\n25 February 1975\\n(Bill No. 8/75 published on\\n28 February 1975)\\nDate of Second and Third\\nReadings\\n:\\n27 March 1975\\nDate of commencement\\n:\\n4 April 1975\\n41. G.N. No. S 171/75 — Income Tax (Amendment of Fourth Schedule)\\nOrder 1975\\nDate of commencement\\n:\\n12 June 1975\\n42. G.N. No. S 238/75 — Income Tax (Amendment of Fourth Schedule)\\n(No. 2) Order 1975\\nDate of commencement\\n:\\n15 August 1975\\n43. G.N. No. S 4/76 — Income Tax (Amendment of Fourth Schedule)\\nOrder 1976\\nDate of commencement\\n:\\n20 November 1975\\n44. Act 37 of 1975 — Income Tax (Amendment No. 2) Act 1975\\nDate of First Reading\\n:\\n11 November 1975\\n(Bill No. 52/75 published on\\n11 November 1975)\\nDate of Second and Third\\nReadings\\n:\\n20 November 1975\\nDate of commencement\\n:\\n2 December 1975 (except\\nsection 3(a))\\n1 April 1975 (section 3(a))\\nviii\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n45. G.N. No. S 101/76 — Income Tax (Amendment of Fourth Schedule)\\n(No. 2) Order 1976\\nDate of commencement\\n:\\n13 April 1976\\n46. G.N. No. S 159/76 — Income Tax (Amendment of Fourth Schedule)\\n(No. 3) Order 1976\\nDate of commencement\\n:\\n7 July 1976\\n47. G.N. No. S 148/76 — Income Tax (Amendment of First Schedule)\\nOrder 1976\\nDate of commencement\\n:\\n23 July 1976\\n48. First Reprint (1976) — Income Tax Act (Chapter 141)\\nDate of operation\\n:\\n1 September 1976\\n49. G.N. No. S 222/76 — Income Tax (Amendment of Fourth Schedule)\\n(No. 4) Order 1976\\nDate of commencement\\n:\\n15 October 1976\\n50. G.N. No. S 87/77 — Income Tax (Amendment of Fourth Schedule)\\nOrder 1977\\nDate of commencement\\n:\\n15 March 1977\\n51. G.N. No. S 257/77 — Income Tax (Amendment of Fourth Schedule)\\n(No. 2) Order 1977\\nDate of commencement\\n:\\n21 April 1977\\n52. Act 5 of 1977 — Income Tax (Amendment) Act 1977\\nDate of First Reading\\n:\\n27 May 1977\\n(Bill No. 8/77 published on 2 June\\n1977)\\nDate of Second and Third\\nReadings\\n:\\n29 June 1977\\nDate of commencement\\n:\\n7 July 1977\\n53. G.N. No. S 258/77 — Income Tax (Amendment of Fourth Schedule)\\n(No. 3) Order 1977\\nDate of commencement\\n:\\n14 September 1977\\n54. G.N. No. S 113/78 — Income Tax (Amendment of Fourth Schedule)\\nOrder 1978\\nDate of commencement\\n:\\n17 April 1978\\nix\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n55. G.N. No. S 185/78 — Income Tax (Amendment of Fourth Schedule)\\n(No. 2) Order 1978\\nDate of commencement\\n:\\n24 July 1978\\n56. G.N. No. S 275/78 — Income Tax (Amendment of Fourth Schedule)\\n(No. 3) Order 1978\\nDate of commencement\\n:\\n13 November 1978\\n57. G.N. No. S 63/79 — Income Tax (Amendment of Fourth Schedule)\\nOrder 1979\\nDate of commencement\\n:\\n26 February 1979\\n58. G.N. No. S 158/82 — Income Tax Act (Amendment of First Schedule)\\n(No. 2) Order 1982\\nDate of commencement\\n:\\n2 March 1979 (paragraph 2(a))\\n1 May 1982 (paragraph 2(b))\\n59. Act 7 of 1979 — Income Tax (Amendment) Act 1979\\nDate of First Reading\\n:\\n5 March 1979\\n(Bill No. 9/79 published on 12 March\\n1979)\\nDate of Second and Third\\nReadings\\n:\\n30 March 1979\\nDate of commencement\\n:\\n16 April 1979\\n60. G.N. No. S 148/79 — Income Tax (Amendment of Fourth Schedule)\\n(No. 2) Order 1979\\nDate of commencement\\n:\\n11 June 1979\\n61. G.N. No. S 234/79 — Income Tax (Amendment of Fourth Schedule)\\n(No. 3) Order 1979\\nDate of commencement\\n:\\n16 October 1979\\n62. G.N. No. S 217/80 — Income Tax Act (Amendment of First Schedule)\\nOrder 1980\\nDate of commencement\\n:\\n1 February 1980\\n63. G.N. No. S 103/80 — Income Tax (Amendment of Fourth Schedule)\\nOrder 1980\\nDate of commencement\\n:\\n3 March 1980\\nx\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n64. Act 9 of 1980 — Income Tax (Amendment) Act 1980\\nDate of First Reading\\n:\\n26 February 1980\\n(Bill No. 6/80 published on\\n29 February 1980)\\nDate of Second and Third\\nReadings\\n:\\n17 March 1980\\nDate of commencement\\n:\\n3 April 1980\\n65. G.N. No. S 251/80 — Income Tax Act (Amendment of Fourth Schedule)\\n(No. 2) Order 1980\\nDate of commencement\\n:\\n21 July 1980\\n66. G.N. No. S 336/80 — Income Tax Act (Amendment of Fourth Schedule)\\n(No. 3) Order 1980\\nDate of commencement\\n:\\n24 November 1980\\n67. Act 28 of 1980 — Income Tax (Amendment No. 2) Act 1980\\nDate of First Reading\\n:\\n31 October 1980\\n(Bill No. 25/80 published on\\n7 November 1980)\\nDate of Second and Third\\nReadings\\n:\\n28 November 1980\\nDate of commencement\\n:\\n4 December 1980\\n68. G.N. No. S 138/84 — Income Tax Act (Amendment of First Schedule)\\n(No. 2) Order 1984\\nDate of commencement\\n:\\n15 August 1981\\n69. G.N. No. S 213/84 — Income Tax Act (Amendment of First Schedule)\\nOrder 1984 (Corrigendum)\\nDate of commencement\\n:\\n15 August 1981\\n70. G.N. No. S 183/83 — Income Tax Act (Amendment of First Schedule)\\nOrder 1983\\nDate of commencement\\n:\\n2 October 1981\\n71. G.N. No. S 381/90 — Income Tax Act (Amendment of First Schedule)\\nOrder 1990\\nDate of commencement\\n:\\n1 November 1981\\nxi\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n72. G.N. No. S 41/82 — Income Tax Act (Amendment of Fourth Schedule)\\nOrder 1982\\nDate of commencement\\n:\\n19 February 1982\\n73. Act 1 of 1982 — Income Tax (Amendment) Act 1982\\nDate of First Reading\\n:\\n22 December 1981\\n(Bill No. 30/81 published on\\n30 December 1981)\\nDate of Second and Third\\nReadings\\n:\\n3 March 1982\\nDate of commencement\\n:\\n19 March 1982\\n74. G.N. No. S 129/82 — Income Tax Act (Amendment of Fourth Schedule)\\nOrder 1982\\nDate of commencement\\n:\\n12 April 1982\\n75. G.N. No. S 379/89 — Income Tax Act (Amendment of First Schedule)\\nOrder 1989\\nDate of commencement\\n:\\n1 January 1983\\n76. Act 5 of 1983 — Income Tax (Amendment) Act 1983\\nDate of First Reading\\n:\\n4 March 1983\\n(Bill No. 1/83 published on 9 March\\n1983)\\nDate of Second and Third\\nReadings\\n:\\n24 March 1983\\nDate of commencement\\n:\\n8 April 1983\\n77. G.N. No. S 168/83 — Income Tax Act (Amendment of Fourth Schedule)\\nOrder 1983\\nDate of commencement\\n:\\n23 May 1983\\n78. G.N. No. S 217/84 — Income Tax Act (Amendment of First Schedule)\\n(No. 3) Order 1984\\nDate of commencement\\n:\\n14 October 1983\\n79. Act 15 of 1983 — Income Tax (Amendment No. 2) Act 1983\\nDate of First Reading\\n:\\n30 August 1983\\n(Bill No. 10/83 published on\\n7 September 1983)\\nDate of Second and Third\\nReadings\\n:\\n20 December 1983\\nxii\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nDate of commencement\\n:\\n13 January 1984\\n80. Act 13 of 1984 — Income Tax (Amendment) Act 1984\\nDate of First Reading\\n:\\n29 June 1984\\n(Bill No. 20/84 published on 9 July\\n1984)\\nDate of Second and Third\\nReadings\\n:\\n26 July 1984\\nDate of commencement\\n:\\n10 August 1984\\n81. Second Reprint (1984) — Income Tax Act (Chapter 141)\\nDate of operation\\n:\\n1 November 1984\\n82. G.N. No. S 26/85 — Income Tax Act (Amendment of First Schedule)\\nOrder 1985\\nDate of commencement\\n:\\n1 September 1984\\n83. Act 7 of 1985 — Income Tax (Amendment) Act 1985\\nDate of First Reading\\n:\\n23 July 1985\\n(Bill No. 10/85 published on 26 July\\n1985)\\nDate of Second and Third\\nReadings\\n:\\n30 August 1985\\nDate of commencement\\n:\\n27 September 1985\\n84. Act 2 of 1986 — Statute Law Revision Act 1986\\nDate of First Reading\\n:\\n31 October 1985\\n(Bill No. 12/85 published on\\n8 November 1985)\\nDate of Second and Third\\nReadings\\n:\\n10 January 1986\\nDate of commencement\\n:\\n31 January 1986\\n85. Act 31 of 1986 — Income Tax (Amendment) Act 1986\\nDate of First Reading\\n:\\n27 October 1986\\n(Bill No. 25/86 published on\\n31 October 1986)\\nDate of Second and Third\\nReadings\\n:\\n9 December 1986\\nxiii\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nDate of commencement\\n:\\n19 December 1986 (except\\nsection 14(a))\\n1 January 1986 (section 14(a))\\n86. 1985 Revised Edition — Income Tax Act (Chapter 134)\\nDate of operation\\n:\\n30 March 1987\\n87. G.N. No. S 380/89 — Income Tax Act (Amendment of First Schedule)\\n(No. 2) Order 1989\\nDate of commencement\\n:\\n14 August 1987\\n88. G.N. No. S 79/88 — Income Tax Act (Amendment of First Schedule)\\nOrder 1988\\nDate of commencement\\n:\\n9 November 1987\\n89. Act 1 of 1988 — Income Tax (Amendment) Act 1988\\nDate of First Reading\\n:\\n9 November 1987\\n(Bill No. 22/87 published on\\n11 November 1987)\\nDate of Second and Third\\nReadings\\n:\\n13 January 1988\\nDate of commencement\\n:\\n29 January 1988 and other dates (see\\nsection 1 of the Act)\\n90. Act 1 of 1990 — Income Tax (Amendment) Act 1990\\nDate of First Reading\\n:\\n30 November 1989\\n(Bill No. 42/89 published on\\n30 November 1989)\\nDate of Second and Third\\nReadings\\n:\\n15 January 1990\\nDate of commencement\\n:\\n1 January 1989\\n9 February 1990\\n15 January 1989 (Section 16(a) and c)\\n17 February 1989 (Section 2 and 3(b))\\n91. Act 3 of 1989 — Income Tax (Amendment) Act 1989\\nDate of First Reading\\n:\\n16 January 1989\\n(Bill No. 1/89 published on 16 January\\n1989)\\nDate of Second and Third\\nReadings\\n:\\n26 January 1989\\nxiv\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nDate of commencement\\n:\\n17 February 1989\\n92. G.N. No. S 562/91 — Income Tax Act (Amendment of First Schedule)\\n(No. 2) Order 1991\\nDate of commencement\\n:\\n11 February 1989\\n93. G.N. No. S 372/97 — Income Tax Act (Amendment of First Schedule)\\nOrder 1997\\nDate of commencement\\n:\\n11 February 1989\\n94. G.N. No. S 382/90 — Income Tax Act (Amendment of First Schedule)\\n(No. 2) Order 1990\\nDate of commencement\\n:\\n14 May 1989\\n95. G.N. No. S 383/90 — Income Tax Act (Amendment of First Schedule)\\n(No. 3) Order 1990\\nDate of commencement\\n:\\n1 July 1990\\n96. Act 23 of 1990 — Income Tax (Amendment No. 2) Act 1990\\nDate of First Reading\\n:\\n4 October 1990\\n(Bill No. 26/90 published on\\n5 October 1990)\\nDate of Second and Third\\nReadings\\n:\\n9 November 1990\\nDate of commencement\\n:\\n30 November 1990\\n97. G.N. No. S 317/91 — Income Tax Act (Amendment of First Schedule)\\nOrder 1991\\nDate of commencement\\n:\\n17 January 1991\\n98. Act 20 of 1991 — Income Tax (Amendment) Act 1991\\nDate of First Reading\\n:\\n7 May 1991\\n(Bill No. 16/91 published on 8 May\\n1991)\\nDate of Second and Third\\nReadings\\n:\\n28 June 1991\\nDate of commencement\\n:\\n19 July 1991 (except section 17(a) and\\n(c))\\n1 January 1990 (section 17(a) and (c))\\n99. G.N. No. S 210/92 — Income Tax Act (Amendment of First Schedule)\\nOrder 1992\\nDate of commencement\\n:\\n17 August 1991\\nxv\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n100. 1992 Revised Edition — Income Tax Act (Chapter 134)\\nDate of operation\\n:\\n9 March 1992\\n101. Act 2 of 1992 — Income Tax (Amendment) Act 1992\\nDate of First Reading\\n:\\n14 January 1992\\n(Bill No. 7/92 published on 15 January\\n1992)\\nDate of Second and Third\\nReadings\\n:\\n27 February 1992\\nDate of commencement\\n:\\n13 March 1992 (except sections 13,\\n14, 16 and 18)\\n1 January 1993 (sections 13, 14, 16\\nand 18)\\n102. Act 26 of 1993 — Income Tax (Amendment) Act 1993\\nDate of First Reading\\n:\\n30 July 1993\\n(Bill No. 23/93 published on 31 July\\n1993)\\nDate of Second and Third\\nReadings\\n:\\n30 August 1993\\nDate of commencement\\n:\\n13 March 1992\\n1 January 1993 (Sections 3(b), (d), 4,\\n5(b), 11(a)(b), 28(a))\\n103. G.N. No. S 412/92 — Income Tax Act (Amendment of First Schedule)\\n(No. 2) Order 1992\\nDate of commencement\\n:\\n1 September 1992\\n104. Act 28 of 1992 — Income Tax (Amendment No. 2) Act 1992\\nDate of First Reading\\n:\\n31 July 1992\\n(Bill No. 32/92 published on 1 August\\n1992)\\nDate of Second and Third\\nReadings\\n:\\n14 September 1992\\nDate of commencement\\n:\\n2 October 1992\\n13 March 1992 (Section 4 and 5)\\n1 January 1992 (Section 16(a) and (d))\\n1 January 1993 (Section 16(b) and 19\\nxvi\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n105. Act 31 of 1993 — Goods and Services Tax Act 1993\\n(Consequential amendments made to Act by)\\nDate of First Reading\\n:\\n26 February 1993\\n(Bill No. 14/93 published on\\n27 February 1993)\\nDate of Second Reading\\n:\\n19 March 1993\\nDate Committed to Select\\nCommittee\\n:\\n19 March 1993\\nDate of Presentation of Select\\nCommittee Report\\n:\\n7 September 1993 (Parl 4 of 1993)\\nDate of commencement\\n:\\n26 November 1993 (paragraph (7) of\\nthe Fifth Schedule — amendment of\\nIncome Tax Act)\\n106. 1994 Revised Edition — Income Tax Act (Chapter 134)\\nDate of operation\\n:\\n15 March 1994\\n107. Act 11 of 1994 — Income Tax (Amendment) Act 1994\\nDate of First Reading\\n:\\n25 July 1994\\n(Bill No. 17/94 published on 29 July\\n1994)\\nDate of Second and Third\\nReadings\\n:\\n25 August 1994\\nDate of commencement\\n:\\n16 September 1994\\n1 January 1993 (Section 9)\\n1 January 1994 (Section 2, 19)\\n1 March 1994 (Section 5)\\n1 January 1995 (Section 18, 22)\\n108. G.N. No. S 259/95 — Income Tax Act (Amendment of First Schedule)\\nOrder 1995\\nDate of commencement\\n:\\n1 October 1994\\n109. Act 19 of 1994 — Enlistment (Amendment) Act 1994\\n(Consequential amendments made to Act by)\\nDate of First Reading\\n:\\n25 July 1994\\n(Bill No. 21/94 published on 29 July\\n1994)\\nDate of Second and Third\\nReadings\\n:\\n31 October 1994\\nxvii\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nDate of commencement\\n:\\n1 December 1994\\n110. Act 28 of 1994 — National Registration (Amendment) Act 1994\\n(Consequential amendments made to Act by)\\nDate of First Reading\\n:\\n31 October 1994\\n(Bill No. 30/94 published on\\n1 November 1994)\\nDate of Second and Third\\nReadings\\n:\\n5 December 1994\\nDate of commencement\\n:\\n1 March 1995\\n111. Act 32 of 1995 — Income Tax (Amendment) Act 1995\\nDate of First Reading\\n:\\n7 August 1995\\n(Bill No. 28/95 published on 8 August\\n1995)\\nDate of Second and Third\\nReadings\\n:\\n27 September 1995\\nDate of commencement\\n:\\n1 March 1995 (sections 7(c), 8 and 25)\\n13 October 1995 (except sections 7(c),\\n8 and 25)\\n112. Act 29 of 1995 — Rapid Transit Systems Act 1995\\n(Consequential amendments made to Act by)\\nDate of First Reading\\n:\\n7 July 1995\\n(Bill No. 25/95 published on 8 July\\n1995)\\nDate of Second and Third\\nReadings\\n:\\n7 August 1995\\nDate of commencement\\n:\\n1 September 1995\\n113. G.N. No. S 33/96 — Income Tax Act (Amendment of First Schedule)\\nOrder 1996\\nDate of commencement\\n:\\n1 September 1995\\n114. G.N. No. S 67/96 — Income Tax Act (Amendment of First Schedule)\\n(No. 2) Order 1996\\nDate of commencement\\n:\\n1 February 1996\\nxviii\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n115. Act 7 of 1996 — Maritime and Port Authority of Singapore Act 1996\\n(Consequential amendments made to Act by)\\nDate of First Reading\\n:\\n5 December 1995\\n(Bill No. 46/95 published on\\n6 December 1995)\\nDate of Second and Third\\nReadings\\n:\\n18 January 1996\\nDate of commencement\\n:\\n2 February 1996\\n116. Act 1 of 1996 — Singapore Productivity and Standards Board Act 1995\\n(Consequential amendments made to Act by)\\nDate of First Reading\\n:\\n1 November 1995\\n(Bill No. 39/95 published on\\n2 November 1995)\\nDate of Second and Third\\nReadings\\n:\\n5 December 1995\\nDate of commencement\\n:\\n1 April 1996\\n117. 1996 Revised Edition — Income Tax Act (Chapter 134)\\nDate of operation\\n:\\n30 April 1996\\n118. G.N. No. S 302/96 — Income Tax Act (Amendment of First Schedule)\\n(No. 3) Order 1996\\nDate of commencement\\n:\\n1 July 1996\\n119. Act 23 of 1996 — Income Tax (Amendment) Act 1996\\nDate of First Reading\\n:\\n21 May 1996\\n(Bill No. 17/96)\\nDate of Second and Third\\nReadings\\n:\\n12 July 1996\\nDate of commencement\\n:\\n2 August 1996\\n120. Act 28 of 1996 — Income Tax (Amendment No. 2) Act 1996\\nDate of First Reading\\n:\\n12 July 1996\\n(Bill No. 23/96 published on 13 July\\n1996)\\nDate of Second and Third\\nReadings\\n:\\n27 August 1996\\nDate of commencement\\n:\\n6 September 1996\\nxix\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n121. G.N. No. S 372/98 — Income Tax Act (Amendment of First Schedule)\\nOrder 1998\\nDate of commencement\\n:\\n1 January 1997\\n122. Act 31 of 1998 — Income Tax Act 1998\\nDate of First Reading\\n:\\n29 June 1998\\n(Bill No. 29/98 published on 30 June\\n1998)\\nDate of Second and Third\\nReadings\\n:\\n31 July 1998\\nDate of commencement\\n:\\n1 January 1997 (Section 13(a), (e), (f)\\n123. G.N. No. S 485/99 — Income Tax Act (Amendment of First Schedule)\\n(No. 2) Order 1999\\nDate of commencement\\n:\\n30 September 1997\\n124. Act 1 of 1998 — Income Tax (Amendment) Act 1998\\nDate of First Reading\\n:\\n19 November 1997\\n(Bill No. 16/97 published on\\n20 November 1997)\\nDate of Second and Third\\nReadings\\n:\\n14 January 1998\\nDate of commencement\\n:\\n23 January 1998\\n125. Act 31 of 1998 — Income Tax (Amendment) Act 1998\\nDate of First Reading\\n:\\n29 June 1998\\n(Bill No. 29/98)\\nDate of Second and Third\\nReadings\\n:\\n31 July 1998\\nDate of commencement\\n:\\n27 February 1998 (Section 7)\\n14 August 1998\\n126. Act 32 of 1999 — Income Tax (Amendment) Act 1999\\nDate of First Reading\\n:\\n6 July 1999\\n(Bill No. 24/99 published on 7 July\\n1999)\\nDate of Second and Third\\nReadings\\n:\\n17 August 1999\\nDate of commencement\\n:\\n28 February 1998 (Section 19(c))\\n18 November 1998 (Section 4(b))\\nxx\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n31 August 1999\\n3 September 1999\\n127. Act 37 of 1998 — Post Office Savings Bank of Singapore (Transfer of\\nUndertakings and Dissolution) Act 1998\\n(Consequential amendments made to Act by)\\nDate of First Reading\\n:\\n31 July 1998\\n(Bill No. 34/98 published on 1 August\\n1998)\\nDate of Second and Third\\nReadings\\n:\\n12 October 1998\\nDate of commencement\\n:\\n16 November 1998 (Transfer Date)\\n128. Act 24 of 2000 — Income Tax (Amendment) Act 2000\\nDate of First Reading\\n:\\n30 June 2000\\n(Bill No. 20/2000 published on 1 July\\n2000)\\nDate of Second and Third\\nReadings\\n:\\n25 August 2000\\nDate of commencement\\n:\\n28 February 1999 (Section 8)\\n1 December 1999 (Section 13)\\n30 December 1999 (Section 6)\\n18 January 2000 (Section 4)\\n7 September 2000\\n12 December 2002\\n129. G.N. No. S 267/99 — Income Tax Act (Amendment of First Schedule)\\nOrder 1999\\nDate of commencement\\n:\\n21 May 1999\\n130. Act 34 of 2005 — Income Tax (Amendment) Act 2005\\nDate of First Reading\\n:\\n19 September 2005\\n(Bill No. 27/2005 published on\\n20 September 2005)\\nDate of Second and Third\\nReadings\\n:\\n18 October 2005\\nDate of commencement\\n:\\n31 August 1999 (Section 10(a))\\n1 January 2004 (Sections 10(e), 31(b),\\n(c))\\n27 February 2004 (Sections 13, 31(a))\\n21 September 2004 (Sections 10(f),\\nxxi\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n21)\\n1 January 2005 (Sections 4, 10(b), (f),\\n(g), (h), (j), 22(a), (b), (d), 24(f), 25,\\n27(a), (b), (c), (d), (e), 28(c), (e), (f),\\n(g), 24, 26)\\n18 February 2005 (Sections 11, 13, 29,\\n33(a), (b), 35, 37, 38(b), 39, 47)\\n1 April 2005 (Sections 34,47)\\n7 November 2005\\n1 December 2005 (Section 42)\\n1 January 2006 (Sections 43 and 44)\\n30 January 2006 (Sections 2(c), (d), 3,\\n7, 8, 9, 10(c), 12, 15, 18(b), (c), 22(e),\\n(f), 23, 24, 32, 33(c), (d), (e), 41)\\n131. Act 41 of 1999 — Info-communications Development Authority of\\nSingapore Act 1999\\n(Consequential amendments made to Act by)\\nDate of First Reading\\n:\\n11 October 1999\\n(Bill No. 36/99 published on\\n12 October 1999)\\nDate of Second and Third\\nReadings\\n:\\n23 November 1999\\nDate of commencement\\n:\\n1 December 1999\\n132. 1999 Revised Edition — Income Tax Act (Chapter 134)\\nDate of operation\\n:\\n30 December 1999\\n133. Act 9 of 2000 — Defence Science and Technology Agency Act 2000\\n(Consequential amendments made to Act by)\\nDate of First Reading\\n:\\n17 January 2000\\n(Bill No. 1/2000 published on\\n18 January 2000)\\nDate of Second and Third\\nReadings\\n:\\n21 February 2000\\nDate of commencement\\n:\\n15 March 2000\\n134. Act 24 of 2001 — Income Tax (Amendment) Act 2001\\nDate of First Reading\\n:\\n11 July 2001\\n(Bill No. 25/2001 published on\\n12 July 2001)\\nxxii\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nDate of Second and Third\\nReadings\\n:\\n25 July 2001\\nDate of commencement\\n:\\n1 October 2000 (Section 8(b))\\n31 January 2001\\n10 August 2001\\n135. Act 3 of 2001 — Intellectual Property Office of Singapore Act 2001\\n(Consequential amendments made to Act by)\\nDate of First Reading\\n:\\n12 January 2001\\n(Bill No. 1/2001 published on\\n13 January 2001)\\nDate of Second and Third\\nReadings\\n:\\n22 February 2001\\nDate of commencement\\n:\\n1 April 2001\\n136. Act 17 of 2001 — Singapore Land Authority Act 2001\\n(Consequential amendments made to Act by)\\nDate of First Reading\\n:\\n5 March 2001\\n(Bill No. 17/2001 published on\\n7 March 2001)\\nDate of Second and Third\\nReadings\\n:\\n19 April 2001\\nDate of commencement\\n:\\n1 June 2001\\n137. Act 37 of 2002 — Income Tax (Amendment) Act 2002\\nDate of First Reading\\n:\\n31 October 2002\\n(Bill No. 39/2002 published on\\n1 November 2002)\\nDate of Second and Third\\nReadings\\n:\\n25 November 2002\\nDate of commencement\\n:\\n1 June 2001 (Sections 32(c), 40(d), 44,\\n62(c))\\n13 October 2001 (Sections 5, 6, 49)\\n23 November 2001 (Sections 3, 7,\\n26(b))\\n1 January 2002\\n3 May 2002\\n2 July 2002\\n10 December 2002\\n1 January 2003\\nxxiii\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n138. 2001 Revised Edition — Income Tax Act (Chapter 134)\\nDate of operation\\n:\\n31 December 2001\\n139. Act 42 of 2001 — Securities and Futures Act 2001\\n(Consequential amendments made to Act by)\\nDate of First Reading\\n:\\n25 September 2001\\n(Bill No. 33/2001 published on\\n26 September 2001)\\nDate of Second and Third\\nReadings\\n:\\n5 October 2001\\nDate of commencement\\n:\\n1 October 2002 (item (9) of the Fourth\\nSchedule — amendment of Income\\nTax Act)\\n140. Act 25 of 2002 — Currency (Amendment) Act 2002\\n(Consequential amendments made to Act by)\\nDate of First Reading\\n:\\n8 July 2002\\n(Bill No. 23/2002 published on 9 July\\n2002)\\nDate of Second and Third\\nReadings\\n:\\n23 July 2002\\nDate of commencement\\n:\\n1 October 2002\\n141. Act 21 of 2003 — Income Tax (Amendment) Act 2003\\nDate of First Reading\\n:\\n16 October 2003\\n(Bill No. 28/2003 published on\\n17 October 2003)\\nDate of Second and Third\\nReadings\\n:\\n11 November 2003\\nDate of commencement\\n:\\n10 December 2002 (Sections 4(a), 5,\\n6, 8, 15(b), 29)\\n1 January 2003 (Sections 10, 42, 43)\\n28 February 2003 (Section 40)\\n1 April 2003 (Section 9, 30(c), 31, 35,\\n44(a), 45\\n1 June 2003 (Sections 3(e), (f) and 18)\\n1 July 2003 (Section 30)\\n1 November 2003 (Section 23)\\n3 December 2003\\n1 January 2004 (Sections 49, 50,\\n52(b))\\nxxiv\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n142. Act 7 of 2007 — Income Tax (Amendment) Act 2007\\nDate of First Reading\\n:\\n8 November 2006\\n(Bill No. 19/2006 published on\\n9 November 2006)\\nDate of Second and Third\\nReadings\\n:\\n22 January 2007\\nDate of commencement\\n:\\n10 December 2002 (Section 2(g))\\n1 January 2005 (Sections 3(b), (c), 21,\\n26(f), (g), (h), (j)\\n18 February 2005 (Section 9)\\n1 January 2006 (Sections 3(d), (e), 13,\\n14, 15, 18, 26(a), 29)\\n17 February 2006 (Sections 2(k), 6(a),\\n(e), (h), 8, 10, 16(a), 17, 21, 28, 31, 32,\\n34, 35, 36, 44(f))\\n1 March 2006 (Sections 2(a) to (f), 10,\\n35, 44(f))\\n1 April 2006 (Sections 2(h), (i), (j),\\n23)\\n1 November 2006 (Sections 33, 44(a),\\n(e))\\n13 February 2007\\n143. Act 49 of 2004 — Income Tax (Amendment) Act 2004\\nDate of First Reading\\n:\\n19 October 2004\\n(Bill No. 58/2004 published on\\n20 October 2004)\\nDate of Second and Third\\nReadings\\n:\\n17 November 2004\\nDate of commencement\\n:\\n1 January 2003 (Sections 5(a), (c), 2\\n(e))\\n1 October 2003 (Section 28(d))\\n1 November 2003 (Sections 26(a), (b),\\n(c), 54(b), (c)\\n1 January 2004 (Sections 6, 9(g), (h),\\n(j), 28(g), (m), (n), (o), 54(a))\\n27 February 2004 (Sections 5(e), (f),\\n(g), (h), 9(a), (f), 24(c), (d), (e), (f), 30,\\n33, 34, 39, 56)\\n1 July 2004 (Section 13)\\n30 November 2004\\nxxv\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n1 January 2005 (Sections 9(i), 29,\\n38(a), 42)\\n144. Act 4 of 2003 — Customs (Amendment) Act 2003\\n(Consequential amendments made to Act by)\\nDate of First Reading\\n:\\n10 March 2003\\n(Bill No. 6/2003 published on\\n11 March 2003)\\nDate of Second and Third\\nReadings\\n:\\n21 March 2003\\nDate of commencement\\n:\\n1 April 2003\\n145. G.N. No. S 220/2003 — Income Tax Act (Amendment of First Schedule)\\nOrder 2003\\nDate of commencement\\n:\\n7 May 2003\\n146. Act 29 of 2010 — Income Tax (Amendment) Act 2010\\nDate of First Reading\\n:\\n15 September 2010\\n(Bill No. 23/2010 published on\\n15 September 2010)\\nDate of Second and Third\\nReadings\\n:\\n18 October 2010\\nDate of commencement\\n:\\n1 January 2004 (Section 18(a))\\n1 September 2007 (Section 5)\\n1 January 2010 (Section 28(b))\\n22 February 2010 (Section 4(a), (c),\\n(d), 6, 36, 49)\\n23 February 2010 (Sections 19 to 22,\\n26, 27, 54(a), (b), (c), (e), (f), (g),\\n55(a), (b), (c))\\n1 March 2010 (Sections 28(d), 33)\\n1 April 2010 (Sections 8, 10, 34,\\n38(a), (b), 47, 54(d), 55(d))\\n21 May 2010 (Section 42)\\n7 July 2010 (Section 9)\\n22 November 2010\\n1 January 2011 (Sections 28(a), (c),\\n43)\\n1 March 2011 (Sections 7(b), (c),\\n44(b), 45(b), 46(b))\\nxxvi\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n147. Act 4 of 2004 — Accountants Act 2004\\n(Consequential amendments made to Act by)\\nDate of First Reading\\n:\\n5 January 2004\\n(Bill No. 2/2004 published on\\n6 January 2004)\\nDate of Second and Third\\nReadings\\n:\\n6 February 2004\\nDate of commencement\\n:\\n1 April 2004\\n148. 2004 Revised Edition — Income Tax Act\\n(G.N. No. S 400/2007 — Rectification Order)\\nDate of operation\\n:\\n1 January 2004\\n149. Act 11 of 2004 — Economic Expansion Incentives (Relief from Income\\nTax) (Amendment) Act 2004\\n(Consequential amendments made to Act by)\\nDate of First Reading\\n:\\n27 February 2004\\n(Bill No. 7/2004 published on\\n28 February 2004)\\nDate of Second and Third\\nReadings\\n:\\n20 April 2004\\nDate of commencement\\n:\\n28 April 2004 (section 30 —\\namendment of Income Tax Act)\\n150. Act 16 of 2004 — Statistics (Amendment) Act 2004\\n(Consequential amendments made to Act by)\\nDate of First Reading\\n:\\n19 April 2004\\n(Bill No. 15/2004 published on\\n20 April 2004)\\nDate of Second and Third\\nReadings\\n:\\n19 May 2004\\nDate of commencement\\n:\\n1 July 2004\\n151. Act 48 of 2004 — Economic Expansion Incentives (Relief from Income\\nTax) (Amendment No. 2) Act 2004\\n(Consequential amendments made to Act by)\\nDate of First Reading\\n:\\n19 October 2004\\n(Bill No. 56/2004 published on\\n20 October 2004)\\nxxvii\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nDate of Second and Third\\nReadings\\n:\\n17 November 2004\\nDate of commencement\\n:\\n25 November 2004 (section 16 —\\namendment of Income Tax Act)\\n152. G.N. No. S 194/2006 — Income Tax Act (Amendment of First Schedule)\\nOrder 2006\\nDate of commencement\\n:\\n22 April 2005 (paragraph 2(b))\\n153. Act 8 of 2005 — Diplomatic and Consular Relations Act 2005\\n(Related amendments made to Act by)\\nDate of First Reading\\n:\\n16 November 2004\\n(Bill No. 65/2004 published on\\n17 November 2004)\\nDate of Second and Third\\nReadings\\n:\\n25 January 2005\\nDate of commencement\\n:\\n1 May 2005\\n154. G.N. No. S 715/2005 — Income Tax Act (Amendment of First Schedule)\\nOrder 2005\\nDate of commencement\\n:\\n9 November 2005\\n155. Act 22 of 2011 — Income Tax (Amendment) Act 2011\\nDate of First Reading\\n:\\n17 October 2011\\n(Bill No. 14/2011 published on\\n17 October 2011)\\nDate of Second and Third\\nReadings\\n:\\n22 November 2011\\nDate of commencement\\n:\\n1 January 2006 (Section 30(h), (i))\\n13 February 2007 (Section 21)\\n1 September 2007 (Sections 8, 9, 11,\\n13(a), (b), (c), 44(a), (b), (c), 53(a),\\n(b), (c))\\n31 October 2008 (Section 3)\\n9 January 2009 (Section 6(h))\\n1 April 2009 (Sections 13(d), 14(a),\\n44(d), 53(d))\\n22 February 2010 (Sections 10(a), (b),\\n(e), (g), (h), (i), (j))\\n23 February 2010 (Section 28)\\n1 April 2010 (Sections 15, 35)\\n7 July 2010 (Section 14(b))\\nxxviii\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n1 January 2011 (Sections 4(a), 6(b),\\n(e), (f), (i), 16(b), 27(a))\\n19 February 2011 (Section 37)\\n1 April 2011 (Section 18, 20, 34, 38,\\n40)\\n25 April 2011 (Section 41)\\n1 June 2011 (Sections 10(f), 48, 49,\\n69(a), 71)\\n1 September 2011 (Section 16(a))\\n20 December 2011 (Sections 2, 5,\\n6(g), 12, 30(j), (k), 32(a), 36(1), 39,42,\\n43, 45, 46, 47, 50, 51, 52, 55 to 60, 62\\nto 68(b), 72)\\n1 January 2012 (Sections 6(a), (c), (d),\\n32(b))\\n156. Act 11 of 2005 — Trust Companies Act 2005\\n(Consequential amendments made to Act by)\\nDate of First Reading\\n:\\n25 January 2005\\n(Bill No. 1/2005 published on\\n26 January 2005)\\nDate of Second and Third\\nReadings\\n:\\n18 February 2005\\nDate of commencement\\n:\\n1 February 2006\\n157. Act 53 of 2007 — Income Tax (Amendment No. 2) Act 2007\\nDate of First Reading\\n:\\n22 October 2007\\n(Bill No. 43/2007 published on\\n23 October 2007)\\nDate of Second and Third\\nReadings\\n:\\n12 November 2007\\nDate of commencement\\n:\\n17 February 2006 (Sections 3(e) and\\n5)\\n1 November 2006 (Sections 6(a), (h),\\n(k), (m), 31(d))\\n1 January 2007 (Sections 6(g), 25(e),\\n29)\\n15 February 2007 (Sections 3(c), (d),\\n6(a), (g), (h), (i), (l), (n), 9, 11, 16(b),\\n(c), (d), 23, 27 and 32)\\n1 March 2007 (Sections 15(a), 28,\\n42(c), (d), (g), (i), 43(b))\\nxxix\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n1 July 2007 (Sections 11, 12(b))\\n1 September 2007 (Sections 7, 10, 14,\\n42(o))\\n6 December 2007\\n158. Act 7 of 2006 — Workplace Safety and Health Act 2006\\n(Consequential amendments made to Act by)\\nDate of First Reading\\n:\\n17 October 2005\\n(Bill No. 36/2005 published on\\n18 October 2005)\\nDate of Second and Third\\nReadings\\n:\\n17 January 2006\\nDate of commencement\\n:\\n1 March 2006\\n159. G. N. No. S 194/2006 — Income Tax Act (Amendment of First Schedule)\\nOrder 2006\\nDate of commencement\\n:\\n31 March 2006 (paragraph 2(a))\\n160. Act 34 of 2008 — Income Tax (Amendment) Act 2008\\nDate of First Reading\\n:\\n20 October 2008\\n(Bill No. 30/2008 published on\\n20 October 2008)\\nDate of Second and Third\\nReadings\\n:\\n18 November 2008\\nDate of commencement\\n:\\n13 February 2007 (Sections 2(b), 23)\\n15 February 2007 (Sections 31(a), (b))\\n1 September 2007 (Sections 8, 16)\\n6 December 2007 (Section 6(g))\\n17 January 2008 (Section 40)\\n16 February 2008 (Section 6(c), (d),\\n(e), 11, 12, 13, 24, 25(b), 32(b))\\n1 April 2008 (Section 17(a), 18, 30,\\n42, 55, 57(c))\\n16 December 2008\\n1 January 2009 (Section 46)\\n161. Act 2 of 2007 — Statutes (Miscellaneous Amendments) Act 2007\\nDate of First Reading\\n:\\n8 November 2006\\n(Bill No. 14/2006 published on\\n9 November 2006)\\nDate of Second and Third\\nReadings\\n:\\n22 January 2007\\nxxx\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nDate of commencement\\n:\\n1 March 2007 (section 3 —\\namendment of Income Tax Act)\\n162. Act 10 of 2007 — Charities (Amendment) Act 2007\\n(Consequential amendments made to Act by)\\nDate of First Reading\\n:\\n8 November 2006\\n(Bill No. 22/2006 published on\\n9 November 2006)\\nDate of Second and Third\\nReadings\\n:\\n23 January 2007\\nDate of commencement\\n:\\n1 March 2007\\n163. Act 30 of 2007 — Employment of Foreign Workers (Amendment) Act\\n2007\\n(Consequential amendments made to Act by)\\nDate of First Reading\\n:\\n9 April 2007\\n(Bill No. 17/2007 published on\\n10 April 2007)\\nDate of Second and Third\\nReadings\\n:\\n22 May 2007\\nDate of commencement\\n:\\n1 July 2007\\n164. 2008 Revised Edition — Income Tax Act (Chapter 134)\\nDate of operation\\n:\\n1 January 2008\\n165. Act 35 of 2007 — Commodity Trading (Amendment) Act 2007\\n(Consequential amendments made to Act by)\\nDate of First Reading\\n:\\n21 May 2007\\n(Bill No. 23/2007 published on\\n22 May 2007)\\nDate of Second and Third\\nReadings\\n:\\n17 July 2007\\nDate of commencement\\n:\\n27 February 2008 (section 27 —\\namendment of Income Tax Act)\\n166. Act 27 of 2009 — Income Tax (Amendment) Act 2009\\nDate of First Reading\\n:\\n14 September 2009\\n(Bill No. 17/2009 published on\\n14 September 2009)\\nDate of Second and Third\\nReadings\\n:\\n23 November 2009\\nxxxi\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nDate of commencement\\n:\\n1 April 2008 (Section 35)\\n1 October 2008 (Section 5(a))\\n22 January 2009 (Section 7(c), 20, 23)\\n1 April 2009 (Section 14)\\n4 May 2009 (Section 2, 27)\\n1 July 2009 (Section 25, 33(c), (d),\\n(e))\\n29 December 2009\\n1 January 2010 (Sections 10, 11, 12,\\n15)\\n167. Act 29 of 2012 — Income Tax (Amendment) Act 2012\\nDate of First Reading\\n:\\n15 October 2012\\n(Bill No. 29/2012 published on\\n15 October 2012)\\nDate of Second and Third\\nReadings\\n:\\n14 November 2012\\nDate of commencement\\n:\\n1 April 2008 (Section 28(a))\\n22 February 2010 (Section 5(b))\\n1 April 2010 (Sections 33(a), (b), (d),\\n(e), (h), (i), (j), (o), (p), (f)\\n1 January 2011 (Sections 12, 25(a) to\\n(f), (h), (i))\\n1 June 2011 (Sections 4, 5(a), (c), (d),\\n(e), 9)\\n17 February 2012 (Sections 3(b), (c),\\n(d), (e), 33(c), (f), (g), (k) to (h), (q),\\n(r), (s), (u), (v), 42, 44)\\n28 February 2012 (Sections 38, 39)\\n1 March 2012 (Section 20)\\n1 April 2012 (Sections 13, 17, 37(b))\\n1 June 2012 (Sections 11, 51(d))\\n18 December 2012 (Sections 3(a), 7,\\n8, 10(b), 16, 18, 22, 25(g), 26, 29, 31,\\n48)\\n168. Act 10 of 2006 — Casino Control Act 2006\\n(Related amendments made to Act by)\\nDate of First Reading\\n:\\n16 January 2006\\n(Bill No. 3/2006 published on\\n17 January 2006)\\nDate of Second and Third\\nReadings\\n:\\n14 February 2006\\nxxxii\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nDate of commencement\\n:\\n2 April 2008 (section 202 —\\namendment of Income Tax Act)\\n169. Act 19 of 2013 — Income Tax (Amendment) Act 2013\\nDate of First Reading\\n:\\n16 September 2013\\n(Bill No. 14/2013 published on\\n16 September 2013)\\nDate of Second and Third\\nReadings\\n:\\n21 October 2013\\nDate of commencement\\n:\\n22 January 2009 (Section 22)\\n1 October 2009 (Sections 7(h) and (r))\\n18 December 2012 (Section 15)\\n25 February 2013 (Section 29, 50, 53)\\n26 February 2013 (Section 27(b))\\n1 April 2013 (Section 30)\\n28 June 2013 (Sections 7(b), (c), (d),\\n(i))\\n28 November 2013 (Sections 2, 3,\\n4(a), (b), 5, 6, 7(e), (f), (g), (j), 9, 10,\\n11, 13(1)(a), (b), (c), 14, 16, 17,\\n18(1)(a), 19, 20, 21(1)(a), (d),\\n23(1)(e), (f), 24, 25, 26, 27(a), 33 to\\n48, 51, 52)\\n1 January 2014\\n170. Act 37 of 2008 — Limited Partnerships Act 2008\\n(Consequential amendments made to Act by)\\nDate of First Reading\\n:\\n21 October 2008\\n(Bill No. 35/2008 published on\\n21 October 2008)\\nDate of Second and Third\\nReadings\\n:\\n18 November 2008\\nDate of commencement\\n:\\n4 May 2009\\n171. Act 24 of 2009 — Income Tax (Amendment) (Exchange of Information)\\nAct 2009\\nDate of First Reading\\n:\\n14 September 2009\\n(Bill No. 18/2009 published on\\n14 September 2009)\\nDate of Second and Third\\nReadings\\n:\\n19 October 2009\\nxxxiii\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nDate of commencement\\n:\\n9 February 2010\\n172. Act 21 of 2008 — Mental Health (Care and Treatment) Act 2008\\n(Consequential amendments made to Act by)\\nDate of First Reading\\n:\\n21 July 2008\\n(Bill No. 11/2008 published on 22 July\\n2008)\\nDate of Second and Third\\nReadings\\n:\\n16 September 2008\\nDate of commencement\\n:\\n1 March 2010 (item 1(20) of the\\nSecond Schedule — amendment of\\nIncome Tax Act)\\n173. Act 25 of 2010 — Estate Agents Act 2010\\n(Consequential amendments made to Act by)\\nDate of First Reading\\n:\\n16 August 2010\\n(Bill No. 19/2010 published on\\n16 August 2010)\\nDate of Second and Third\\nReadings\\n:\\n15 September 2010\\nDate of commencement\\n:\\n22 October 2010 (item 4 of the Third\\nSchedule — amendment of Income\\nTax Act)\\n174. Act 13 of 2011 — Children Development Co-Savings (Amendment) Act\\n2011\\n(Consequential amendments made to Act by)\\nDate of First Reading\\n:\\n28 February 2011\\n(Bill No. 8/2011 published on\\n28 February 2011)\\nDate of Second and Third\\nReadings\\n:\\n10 March 2011\\nDate of commencement\\n:\\n1 May 2011\\n175. Act 4 of 2011 — Retirement Age (Amendment) Act 2011\\n(Consequential amendments made to Act by)\\nDate of First Reading\\n:\\n22 November 2010\\n(Bill No. 36/2010 published on\\n22 November 2010)\\nDate of Second and Third\\nReadings\\n:\\n11 January 2011\\nxxxiv\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nDate of commencement\\n:\\n1 January 2012\\n176. Act 2 of 2012 — Statutes (Miscellaneous Amendments) Act 2012\\nDate of First Reading\\n:\\n21 November 2011\\n(Bill No. 22/2011 published on\\n21 November 2011)\\nDate of Second and Third\\nReadings\\n:\\n18 January 2012\\nDate of commencement\\n:\\n1 March 2012 (section 4 —\\namendment of Income Tax Act)\\n177. G.N. No. S 130/2012 — Income Tax Act (Amendment of Seventh\\nSchedule) Order 2012\\nDate of commencement\\n:\\n1 April 2012\\n178. G.N. No. S 595/2012 — Income Tax Act (Amendment of Eighth\\nSchedule) Order 2012\\nDate of commencement\\n:\\n3 December 2012\\n179. Act 36 of 2012 — Casino Control (Amendment) Act 2012\\n(Consequential amendments made to Act by)\\nDate of First Reading\\n:\\n15 October 2012\\n(Bill No. 28/2012 published on\\n15 October 2012)\\nDate of Second and Third\\nReadings\\n:\\n16 November 2012\\nDate of commencement\\n:\\n31 January 2013 (section 119 —\\namendment of Income Tax Act)\\n180. Act 2 of 2013 — Economic Expansion Incentives (Relief from Income\\nTax) (Amendment) Act 2013\\n(Consequential amendments made to Act by)\\nDate of First Reading\\n:\\n12 November 2012\\n(Bill No. 36/2012 published on\\n12 November 2012)\\nDate of Second and Third\\nReadings\\n:\\n14 January 2013\\nDate of commencement\\n:\\n17 February 2013 (section 7 —\\namendment of Income Tax Act)\\nxxxv\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n181. Act 3 of 2013 — Computer Misuse (Amendment) Act 2013\\n(Consequential amendments made to Act by)\\nDate of First Reading\\n:\\n12 November 2012\\n(Bill No. 39/2012 published on\\n12 November 2012)\\nDate of Second and Third\\nReadings\\n:\\n14 January 2013\\nDate of commencement\\n:\\n13 March 2013\\n182. Act 11 of 2013 — Insurance (Amendment) Act 2013\\n(Consequential amendments made to Act by)\\nDate of First Reading\\n:\\n4 February 2013\\n(Bill No. 5/2013 published on\\n4 February 2013)\\nDate of Second and Third\\nReadings\\n:\\n15 March 2013\\nDate of commencement\\n:\\n18 April 2013 (item 10 of the\\nSchedule — amendment of Income\\nTax Act)\\n183. G.N. No. S 775/2013 — Income Tax Act (Amendment of Seventh\\nSchedule) Order 2013\\nDate of commencement\\n:\\n23 December 2013\\n184. Act 21 of 2013 — Goods and Services Tax (Amendment) Act 2013\\n(Related amendments made to Act by)\\nDate of First Reading\\n:\\n21 October 2013\\n(Bill No. 17/2013 published on\\n21 October 2013)\\nDate of Second and Third\\nReadings\\n:\\n11 November 2013\\nDate of commencement\\n:\\n1 January 2014 (item 1 of the\\nSchedule — amendment of Income\\nTax Act)\\n185. 2014 Revised Edition — Income Tax Act (Chapter 134)\\nDate of operation\\n:\\n31 March 2014\\n186. Act 37 of 2014 — Income Tax (Amendment) Act 2014\\nDate of First Reading\\n:\\n7 October 2014 (Bill No. 33/2014\\npublished on 7 October 2014)\\nxxxvi\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nDate of Second and Third\\nReadings\\n:\\n3 November 2014\\nDate of commencement\\n:\\n1 April 2014\\n30 May 2014\\n1 September 2014\\n27 November 2014\\n1 January 2015\\n1 June 2015\\n1 July 2015\\n187. Act 4 of 2015 — MediShield Life Scheme Act 2015\\nDate of First Reading\\n:\\n19 January 2015 (Bill No. 3/2015\\npublished on 19 January 2015)\\nDate of Second and Third\\nReadings\\n:\\n29 January 2015\\nDate of commencement\\n:\\n1 November 2015\\n188. G.N. No. S 712/2015 — Income Tax Act (Amendment of First Schedule)\\nOrder 2015\\nDate of commencement\\n:\\n1 November 2015\\n189. Act 29 of 2014 — Business Names Registration Act 2014\\n(Consequential amendments made to Act by)\\nDate of First Reading\\n:\\n8 September 2014\\n(Bill No. 26/2014)\\nDate of Second and Third\\nReadings\\n:\\n8 October 2014\\nDate of commencement\\n:\\n3 January 2016\\n190. Act 11 of 2016 — Economic Expansion Incentives (Relief from Income\\nTax) (Amendment) Act 2016\\nDate of First Reading\\n:\\n29 February 2016 (Bill No. 9/2016\\npublished on 29 February 2016)\\nDate of Second and Third\\nReadings\\n:\\n14 March 2016\\nDate of commencement\\n:\\n19 April 2016\\n191. Act 2 of 2016 — Income Tax (Amendment) Act 2016\\nDate of First Reading\\n:\\n25 January 2016 (Bill No. 3/2016\\npublished on 25 January 2016)\\nxxxvii\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nDate of Second and Third\\nReadings\\n:\\n29 February 2016\\nDate of commencement\\n:\\n1 April 2014\\n1 September 2014\\n24 February 2015\\n18 March 2015\\n1 April 2015\\n29 May 2015\\n1 June 2015\\n1 July 2015\\n1 January 2016\\n11 April 2016\\n1 July 2016\\n192. G. N. No. S 303/2016 — Income Tax Act (Amendment of Seventh\\nSchedule) Order 2016\\nDate of commencement\\n:\\n1 July 2016\\n193. Act 15 of 2016 — Income Tax (Amendment No. 2) Act 2016\\nDate of First Reading\\n:\\n14 April 2016 (Bill No. 16/2016\\npublished on 14 April 2016)\\nDate of Second and Third\\nReadings\\n:\\n9 May 2016\\nDate of commencement\\n:\\n20 July 2016\\n1 August 2016\\n194. Act 24 of 2016 — SkillsFuture Singapore Agency Act 2016\\nDate of First Reading\\n:\\n11 July 2016 (Bill No. 24/2016\\npublished on 11 July 2016)\\nDate of Second and Third\\nReadings\\n:\\n16 August 2016\\nDate of commencement\\n:\\n3 October 2016\\n195. Act 34 of 2016 — Income Tax (Amendment No. 3) Act 2016\\nDate of First Reading\\n:\\n10 October 2016\\n(Bill No. 34/2016)\\nDate of Second and Third\\nReadings\\n:\\n10 November 2016\\nDate of commencement\\n:\\n27 November 2014\\n25 March 2016\\n1 April 2016\\nxxxviii\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n11 April 2016\\n19 April 2016\\n19 May 2016\\n1 July 2016\\n29 December 2016\\n196. Act 21 of 2017 — The Kwong-Wai-Shiu Free Hospital (Transfer of\\nUndertaking and Dissolution) Act 2017\\nDate of First Reading\\n:\\n7 November 2016 (Bill No. 39/2016\\npublished on 7 November 2016)\\nDate of Second and Third\\nReadings\\n:\\n3 April 2017\\nDate of commencement\\n:\\n2 July 2017\\n197. Act 39 of 2017 — Income Tax (Amendment) Act 2017\\nDate of First Reading\\n:\\n11 September 2017\\n(Bill No. 36/2017)\\nDate of Second and Third\\nReadings\\n:\\n2 October 2017\\nDate of commencement\\n:\\n1 April 2014\\n1 April 2015\\n1 April 2016\\n1 January 2017\\n21 February 2017\\n1 April 2017\\n1 June 2017\\n26 October 2017\\n198. Act 9 of 2018 — Cybersecurity Act 2018\\nDate of First Reading\\n:\\n8 January 2018 (Bill No. 2/2018\\npublished on 8 January 2018)\\nDate of Second and Third\\nReadings\\n:\\n5 February 2018\\nDate of commencement\\n:\\n31 August 2018\\n199. Act 4 of 2017 — Securities and Futures (Amendment) Act 2017\\nDate of First Reading\\n:\\n7 November 2016\\n(Bill No. 35/2016)\\nDate of Second and Third\\nReadings\\n:\\n9 January 2017\\nxxxix\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nDate of commencement\\n:\\n8 October 2018\\n200. Act 45 of 2018 — Income Tax (Amendment) Act 2018\\nDate of First Reading\\n:\\n10 September 2018\\n(Bill No. 37/2018)\\nDate of Second and Third\\nReadings\\n:\\n2 October 2018\\nDate of commencement\\n:\\n1 April 2017\\n26 October 2017\\n20 February 2018\\n1 April 2018\\n4 May 2018\\n1 July 2018\\n12 November 2018\\n201. Act 5 of 2016 — Banking (Amendment) Act 2016\\nDate of First Reading\\n:\\n25 January 2016 (Bill No. 1/2016\\npublished on 25 January 2016)\\nDate of Second and Third\\nReadings\\n:\\n29 February 2016\\nDate of commencement\\n:\\n30 November 2018\\n202. Act 52 of 2018 — Goods and Services Tax (Amendment) Act 2018\\nDate of First Reading\\n:\\n1 October 2018 (Bill No. 46/2018\\npublished on 1 October 2018)\\nDate of Second and Third\\nReadings\\n:\\n19 November 2018\\nDate of commencement\\n:\\n1 January 2019\\n203. Act 19 of 2017 — Early Childhood Development Centres Act 2017\\nDate of First Reading\\n:\\n6 February 2017 (Bill No. 7/2017\\npublished on 6 February 2017)\\nDate of Second and Third\\nReadings\\n:\\n28 February 2017\\nDate of commencement\\n:\\n2 January 2019\\n204. G.N. No. S 290/2019 — Income Tax Act (Amendment of Seventh\\nSchedule) Order 2019\\nDate of commencement\\n:\\n1 May 2019\\nxl\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n205. Act 32 of 2019 — Income Tax (Amendment) Act 2019\\nDate of First Reading\\n:\\n2 September 2019 (Bill No. 26/2019\\npublished on 2 September 2019)\\nDate of Second and Third\\nReadings\\n:\\n7 October 2019\\nDate of commencement\\n:\\n1 January 2018\\n12 November 2018\\n12 December 2018\\n20 December 2018\\n31 December 2018\\n1 January 2019\\n19 February 2019\\n1 April 2019\\n1 July 2019\\n2 December 2019\\n1 January 2020\\n206. Act 28 of 2019 — Variable Capital Companies (Miscellaneous\\nAmendments) Act 2019\\nDate of First Reading\\n:\\n5 August 2019\\n(Bill No. 23/2019)\\nDate of Second and Third\\nReadings\\n:\\n3 September 2019\\nDate of commencement\\n:\\n15 January 2020\\n207. Act 20 of 2019 — Point-to-Point Passenger Transport Industry Act 2019\\nDate of First Reading\\n:\\n8 July 2019 (Bill No. 14/2019\\npublished on 8 July 2019)\\nDate of Second and Third\\nReadings\\n:\\n6 August 2019\\nDate of commencement\\n:\\n30 October 2020\\n208. Act 40 of 2019 — Supreme Court of Judicature (Amendment) Act 2019\\nDate of First Reading\\n:\\n7 October 2019\\n(Bill No. 32/2019)\\nDate of Second and Third\\nReadings\\n:\\n5 November 2019\\nDate of commencement\\n:\\n2 January 2021\\nxli\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n209. Act 1 of 2020 — Banking (Amendment) Act 2020\\nDate of First Reading\\n:\\n4 November 2019\\n(Bill No. 35/2019)\\nDate of Second and Third\\nReadings\\n:\\n6 January 2020\\nDate of commencement\\n:\\n1 July 2021\\n210. Act 15 of 2021 — Significant Infrastructure Government Loan Act 2021\\n(Amendments made by the above Act)\\nDate of First Reading\\n:\\n5 April 2021 (Bill No. 6/2021\\npublished on 5 April 2021)\\nSecond and Third Readings\\n:\\n10 May 2021\\nDate of Commencement\\n:\\n3 August 2021\\n211. 2020 Revised Edition — Income Tax Act 1947\\nOperation\\n:\\n31 December 2021\\n212. G.N. No. S 40/2022 — Revised Edition of the Laws (Rectification of\\nActs) Order 2022\\nOperation\\n:\\n31 December 2021\\nPublication\\n:\\n21 January 2022\\n213. G.N. No. S 759/2022 — Revised Edition of the Laws (Rectification of\\nActs) (No. 2) Order 2022\\nOperation\\n:\\n31 December 2021\\nPublication\\n:\\n26 September 2022\\n214. Act 39 of 2021 — Central Provident Fund (Amendment) Act 2021\\nDate of First Reading\\n:\\n4 October 2021 (Bill No. 36/2021\\npublished on 4 October 2021)\\nSecond and Third Readings\\n:\\n2 November 2021\\nDate of Commencement\\n:\\n1 January 2022\\n215. Act 35 of 2021 — Government Borrowing (Miscellaneous Amendments)\\nAct 2021\\nDate of First Reading\\n:\\n4 October 2021 (Bill No. 32/2021\\npublished on 4 October 2021)\\nSecond and Third Readings\\n:\\n3 November 2021\\nDate of Commencement\\n:\\n31 January 2022\\nxlii\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n216. Act 25 of 2021 — Courts (Civil and Criminal Justice) Reform Act 2021\\nDate of First Reading\\n:\\n26 July 2021\\n(Bill No. 18/2021)\\nDate of Second and Third\\nReadings\\n:\\n14 September 2021\\nDate of commencement\\n:\\n1 April 2022\\n217. G.N. No. S 310/2022 — Income Tax Act 1947 (Amendment of Ninth\\nSchedule) Order 2022\\nDate of commencement\\n:\\n11 April 2022\\n218. Act 18 of 2022 — Financial Services and Markets Act 2022\\nDate of First Reading\\n:\\n14 February 2022\\n(Bill No. 4/2022)\\nDate of Second and Third\\nReadings\\n:\\n5 April 2022\\nDate of commencement\\n:\\n30 June 2022\\n219. Act 36 of 2022 — Accountancy Functions (Consolidation) Act 2022\\nDate of First Reading\\n:\\n3 October 2022\\n(Bill No. 29/2022)\\nDate of Second and Third\\nReadings\\n:\\n9 November 2022\\nDate of commencement\\n:\\n1 April 2023\\n220. G.N. No. S 331/2023 — Income Tax Act 1947 (Amendment of Ninth\\nSchedule) Order 2023\\nDate of commencement\\n:\\n5 June 2023\\n221. Act 39 of 2023 — Economic Expansion Incentives (Relief from Income\\nTax) (Amendment) Act 2023\\nDate of First Reading\\n:\\n3 October 2023\\n(Bill No. 33/2023)\\nDate of Second and Third\\nReadings\\n:\\n7 November 2023\\nDate of commencement\\n:\\n29 December 2023\\n222. Act 30 of 2023 — Income Tax (Amendment) Act 2023\\nDate of First Reading\\n:\\n18 September 2023\\n(Bill No. 30/2023)\\nxliii\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nDate of Second and Third\\nReadings\\n:\\n3 October 2023\\nDate of commencement\\n:\\n15 February 2023\\n1 September 2023\\n30 October 2023\\n1 January 2024\\n223. Act 41 of 2020 — Income Tax (Amendment) Act 2020\\nDate of First Reading\\n:\\n5 October 2020\\n(Bill No. 38/2020)\\nDate of Second and Third\\nReadings\\n:\\n3 November 2020\\nDate of commencement\\n:\\n12 December 2018\\n19 February 2020\\n1 April 2020\\n1 July 2020\\n7 December 2020\\n6 December 2022\\n12 April 2024\\n224. Act 27 of 2021 — Income Tax (Amendment) Act 2021\\nDate of First Reading\\n:\\n13 September 2021\\n(Bill No. 27/2021)\\nDate of Second and Third\\nReadings\\n:\\n5 October 2021\\nDate of commencement\\n:\\n17 February 2021\\n1 April 2021\\n19 May 2021\\n1 September 2021\\n16 November 2021\\n12 April 2024\\n225. Act 2 of 2024 — Stillbirths and Births (Miscellaneous Amendments) Act\\n2024\\nBill\\n:\\n39/2023\\nFirst Reading\\n:\\n7 November 2023\\nSecond and Third Readings\\n:\\n9 January 2024\\nCommencement\\n:\\n16 April 2024\\nxliv\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n226. Act 33 of 2022 — Income Tax (Amendment) Act 2022\\nDate of First Reading\\n:\\n12 September 2022\\n(Bill No. 23/2022)\\nDate of Second and Third\\nReadings\\n:\\n3 October 2022\\nDate of commencement\\n:\\n19 February 2019\\n1 November 2021\\n4 November 2022\\n1 January 2023\\n21 August 2023\\n26 April 2024\\nAbbreviations\\n.\\n(updated on 29 August 2022)\\nG.N.\\nGazette Notification\\nG.N. Sp.\\nGazette Notification (Special Supplement)\\nL.A.\\nLegislative Assembly\\nL.N.\\nLegal Notification (Federal/Malaysian)\\nM.\\nMalaya/Malaysia\\n(including\\nFederated\\nMalay\\nStates,\\nMalayan Union, Federation of Malaya and Federation of\\nMalaysia)\\nParl.\\nParliament\\nS\\nSubsidiary Legislation\\nS.I.\\nStatutory Instrument (United Kingdom)\\nS (N.S.)\\nSubsidiary Legislation (New Series)\\nS.S.G.G.\\nStraits Settlements Government Gazette\\nS.S.G.G. (E)\\nStraits Settlements Government Gazette (Extraordinary)\\nxlv\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\nCOMPARATIVE TABLE\\nINCOME TAX ACT 1947\\nThis Act has undergone renumbering in the 2020 Revised Edition. This\\nComparative Table is provided to help readers locate the corresponding provisions\\nin the last Revised Edition.\\n2020 Ed.\\n2014 Ed.\\n—\\n10A [Repealed by Act 32 of 2019]\\n10A\\n10B\\n10B\\n10C\\n10C\\n10D\\n10D\\n10E\\n10E\\n10F\\n—\\n10G [Repealed by Act 37 of 2002]\\n10F\\n10H\\n—\\n10I [Repealed by Act 37 of 2014]\\n—\\n10J [Repealed by Act 37 of 2014]\\n—\\n10K [Repealed by Act 37 of 2014]\\n10G\\n10L\\n—\\n10M [Repealed by Act 37 of 2014]\\n10H\\n10N\\n10I\\n10O\\n10J\\n10P\\n13D\\n13CA\\n—\\n13D [Repealed by Act 19 of 2013]\\n—\\n13E [Repealed by Act 19 of 2013]\\n13E\\n13F\\n13F\\n13G\\n13G\\n13H\\n—\\n13I [Repealed by Act 29 of 2012]\\n13H\\n13J\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n2020 Ed.\\n2014 Ed.\\n—\\n13K [Repealed by Act 29 of 2012]\\n13I\\n13L\\n13J\\n13M\\n13K\\n13N\\n13L\\n13O\\n13M\\n13P\\n13N\\n13Q\\n13O\\n13R\\n13P\\n13S\\n13Q\\n13T\\n13R\\n13U\\n13S\\n13V\\n13T\\n13W\\n13U\\n13X\\n13V\\n13Y\\n13W\\n13Z\\n13X\\n13ZA\\n—\\n14C [Repealed by Act 34 of 2016]\\n14C\\n14D\\n14D\\n14DA\\n—\\n14F [Repealed by Act 41 of 2020]\\n—\\n14G [Repealed by Act 21 of 2003]\\n14F\\n14H\\n14G\\n14I\\n—\\n(8) [Deleted by Act 27 of 2021]\\n—\\n14J [Repealed by Act 19 of 2013]\\n14H\\n14K\\n14I\\n14KA\\nii\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n2020 Ed.\\n2014 Ed.\\n—\\n14L [Repealed by Act 41 of 2020]\\n—\\n14M [Repealed by Act 39 of 2017]\\n14J\\n14N\\n14K\\n14O\\n14L\\n14P\\n14M\\n14PA\\n14N\\n14Q\\n14O\\n14R\\n14P\\n14S\\n14Q\\n14T\\n14R\\n14U\\n14S\\n14V\\n14T\\n14W\\n14U\\n14WA\\n14V\\n14X\\n14W\\n14Y\\n14X\\n14Z\\n14Y\\n14ZA\\n14Z\\n14ZB\\n14ZA\\n14ZC\\n14ZB\\n14ZD\\n14ZC\\n14ZE\\n14ZD\\n14ZF\\n14ZE\\n14ZG\\n14ZF\\n14ZH\\n—\\n36—(2) [Deleted by Act 29 of 2012]\\n—\\n37A [Repealed by Act 19 of 2013]\\n37A\\n37B\\niii\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n2020 Ed.\\n2014 Ed.\\n37B\\n37C\\n37C\\n37D\\n37D\\n37E\\n37E\\n37F\\n37F\\n37G\\n—\\n37H [Repealed by Act 32 of 2019]\\n37G\\n37I\\n37H\\n37IA\\n37I\\n37IB\\n37J\\n37IC\\n37K\\n37ID\\n37L\\n37IE\\n37M\\n37J\\n37N\\n37K\\n37O\\n37L\\n37P\\n37M\\n37Q\\n37N\\n—\\n42—(3) [Deleted by Act 19 of 2013]\\n—\\n43D [Repealed by Act 34 of 2016]\\n43D\\n43E\\n—\\n43F [Repealed by Act 34 of 2016]\\n43E\\n43G\\n—\\n43H [Repealed by Act 34 of 2016]\\n43F\\n43I\\n43G\\n43J\\n—\\n43K [Repealed by Act 34 of 2016]\\n—\\n43L [Repealed by Act 7 of 2007]\\n—\\n43M [Repealed by Act 21 of 2003]\\niv\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n2020 Ed.\\n2014 Ed.\\n43H\\n43N\\n—\\n43O [Repealed by Act 19 of 2013]\\n43I\\n43P\\n43J\\n43Q\\n—\\n(3) [Deleted by Act 32 of 2019]\\n43K\\n43R\\n—\\n(5) [Deleted by Act 32 of 2019]\\n—\\n43S [Repealed by Act 34 of 2016]\\n—\\n43T [Repealed by Act 34 of 2016]\\n—\\n43U [Repealed by Act 39 of 2017]\\n—\\n43V [Repealed by Act 34 of 2016]\\n43L\\n43W\\n43M\\n43X\\n43N\\n43Y\\n43O\\n43Z\\n43P\\n43ZA\\n43Q\\n43ZB\\n43R\\n43ZC\\n43S\\n43ZD\\n43T\\n43ZE\\n43U\\n43ZF\\n43V\\n43ZG\\n—\\n(8) [Deleted by Act 41 of 2020]\\n43W\\n43ZH\\n43X\\n43ZI\\n—\\n46—(4) [Deleted by Act 19 of 2013]\\n—\\n(5) [Deleted by Act 19 of 2013]\\n—\\n(6) [Deleted by Act 19 of 2013]\\nv\\nInformal Consolidation – version in force from 26/4/2024\\n\\n\\n2020 Ed.\\n2014 Ed.\\n—\\n92—(5) [Deleted by Act 19 of 2013]\\n—\\n100—(3) [Deleted by Act 32 of 2019]\\nvi\\nInformal Consolidation – version in force from 26/4/2024\",\"difficulty\":\"hard\",\"domain\":\"Single-Document QA\",\"length\":\"long\",\"question\":\"In light of the Income Tax Act 1947, how can multinational corporations strategically navigate transfer pricing and cross-border transactions to minimize their global tax liabilities while aligning with Singapore’s regulations on arm’s length principles and preventing tax base erosion?\",\"sub_domain\":\"Governmental\"}","display_format":"text","language":"","answer_status":"published","assets":[],"source_url":"https://huggingface.co/datasets/zai-org/LongBench-v2","history":"initial import","indexing_mode":"noindex","subproblems":[],"grids":[]}