PART 11RATES OF TAX
Rates of tax upon individuals
42.—(1)There is to be levied and paid for each year of assessment upon the chargeable income of every person (other than a body of persons, a company, a person not resident in Singapore, a trustee who is not the trustee of an incapacitated person, or an executor), tax in accordance with the rates specified in Part A of the Second Schedule in respect of the chargeable income of an individual.
(2)
Rebate for children of family
42A.—(1)Where an individual resident in Singapore has —
(a) a second child of the family born to him or her on or after 1 January 2004 who is legitimate at the time of the birth;
(b) an illegitimate second child of the family born to him or her on or after 1 January 2004 and the individual becomes lawfully married to the other natural parent of the child before the child reaches 6 years of age;
(c) a second child of the family adopted by him or her under any written law relating to the adoption of children on or after 1 January 2004 and before 1 January 2006; or
(d) a second child of the family adopted by him or her under any written law relating to the adoption of children on or after 1 January 2006 and before the child reaches 6 years of age,
then there is, in respect of that child, to be allowed for the year of assessment immediately following the year of the birth in the case of paragraph (a), the year of the marriage in the case of paragraph (b), or the year of the adoption in the case of paragraph (c) or (d), a rebate of $10,000 against the tax payable by that individual.
(2)Where an individual resident in Singapore has —
(a) a third or fourth child of the family born to him or her on or after 1 January 2004 who is legitimate at the time of the birth;
(b) an illegitimate third or fourth child of the family born to him or her on or after 1 January 2004 and the individual becomes lawfully married to the other natural parent of the child before the child reaches 6 years of age;
(c) a third or fourth child of the family adopted by him or her under any written law relating to the adoption of children on or after 1 January 2004 and before 1 January 2006; or
(d) a third or fourth child of the family adopted by him or her under any written law relating to the adoption of children on or after 1 January 2006 and before the child reaches 6 years of age,
then there is, in respect of that child, to be allowed for the year of assessment immediately following the year of the birth in the case of paragraph (a), the year of the marriage in the case of paragraph (b), or the year of the adoption in the case of paragraph (c) or (d), a rebate of $20,000 against the tax payable by that individual.
(2A)Where an individual resident in Singapore has —
(a) a first child of the family born to him or her on or after 1 January 2008 who is legitimate at the time of the birth;
(b) an illegitimate first child of the family born to him or her on or after 1 January 2008 and the individual becomes lawfully married to the other natural parent of the child before the child reaches 6 years of age; or
(c) a first child of the family adopted by him or her under any written law relating to the adoption of children on or after 1 January 2008 and before the child reaches 6 years of age,
then there is, in respect of that child, to be allowed for the year of assessment immediately following the year of the birth in the case of paragraph (a), the year of marriage in the case of paragraph (b), or the year of the adoption in the case of paragraph (c), a rebate of $5,000 against the tax payable by that individual.
(2B)Where an individual resident in Singapore has —
(a) a fifth or subsequent child of the family born to him or her on or after 1 January 2008 who is legitimate at the time of the birth;
(b) an illegitimate fifth or subsequent child of the family born to him or her on or after 1 January 2008 and the individual becomes lawfully married to the other natural parent of the child before the child reaches 6 years of age; or
(c) a fifth or subsequent child of the family adopted by him or her under any written law relating to the adoption of children on or after 1 January 2008 and before the child reaches 6 years of age,
then there is, in respect of that child, to be allowed for the year of assessment immediately following the year of the birth in the case of paragraph (a), the year of marriage in the case of paragraph (b), or the year of the adoption in the case of paragraph (c), a rebate of $20,000 against the tax payable by that individual.
(2C)Where more than one individual is entitled to claim the rebate mentioned in subsection (1), (2), (2A) or (2B), the rebate is to be apportioned between them in such proportion as they may agree or, in the absence of any agreement, in such manner as appears to the Comptroller to be reasonable.
(3)For the purposes of subsections (1) to (2C), where full effect cannot be given to the rebate in respect of any child by reason of an insufficiency of the tax payable by an individual for that year of assessment, the balance of the unabsorbed rebate is available for deduction against the tax payable by the individual for the year of assessment immediately following that year of assessment and any subsequent year of assessment.
(4)Where the child in respect of whom a rebate is allowable to an individual under this section is adopted by another person, the rebate or balance (if any) of the unabsorbed rebate is not available for deduction against the tax payable by the individual for any year of assessment following the year in which the child is adopted.
(5)Where, for the year of assessment 2005 or any subsequent year of assessment, an individual would have been entitled to claim any rebate or balance of the unabsorbed rebate under section 42A(1) and (2)(a) in force immediately before 1 January 2005 but for the repeal of that section, such rebate or balance is, subject to subsection (4), available for deduction against the tax payable by that individual for the year of assessment 2005 and any subsequent year of assessment; but where more than one individual is entitled to claim such rebate, the rebate is to be apportioned between them in such proportion as they may agree or, in the absence of any agreement, in such manner as appears to the Comptroller to be reasonable.
(6)Where, for the year of assessment 2005 or any subsequent year of assessment, a married woman would have been entitled to claim any rebate or balance of the unabsorbed rebate under section 42A(2)(b) and (3) in force immediately before 1 January 2005 but for the repeal of that section —
(a) such rebate or balance is, subject to subsection (4), available for deduction against the tax payable by that woman for the year of assessment 2005 and any subsequent year of assessment up to 9 years of assessment immediately following the year of birth of the third child or fourth child, as the case may be; and
(b) where the fourth child is born within 9 years of the birth of the third child and full effect cannot be given to the rebate in respect of the fourth child by reason of an insufficiency of the tax payable by that woman for that year of assessment, the rebate or balance (if any) of the unabsorbed rebate is, subject to subsection (4), available for deduction, in the case of the fourth child, against the tax payable by that woman for up to 9 years of assessment immediately following the last year of assessment in which the rebate in respect of the third child may be allowed under paragraph (a).
(7)Where, for the year of assessment 2005 or any subsequent year of assessment, a married woman would have been entitled to claim any rebate or balance of the unabsorbed rebate under section 42A(1), (2) and (3) in force immediately before 1 January 2005 but for the repeal of that section, the rebate or balance of the unabsorbed rebate in respect of the third child or fourth child (as the case may be) under section 42A(2)(b) and (3) in force immediately before 1 January 2005 must —
(a) subject to subsection (4), first be allowed for deduction against the tax payable by that woman before the rebate or balance of the unabsorbed rebate under section 42A(1) and (2)(a) in force immediately before 1 January 2005 is allowed; and
(b) subject to section 42A(4)(b) and (c) in force immediately before 1 January 2005, be available for deduction for the year of assessment 2005 and any subsequent year of assessment.
(8)Where a marriage has been dissolved by divorce or annulment and an individual is entitled to claim —
(a) any rebate or balance of the unabsorbed rebate under section 42A(1) or (2) in force immediately before 1 January 2005, but for the repeal of that section, in respect of any child born to the individual from that marriage; and
(b) any rebate under section 42A(1) or (2) in force immediately before 1 January 2005, but for the repeal of that section, in respect of any child born to the individual after the dissolution of the marriage,
subsections (5), (6) and (7) only apply to any second, third or fourth child (as the case may be) born to the individual after the dissolution of the marriage.
(9)Where a marriage was dissolved by divorce or annulment before 1 January 2002 and an individual would, but for section 42A(3)(e) in force immediately before that date, have been entitled to claim any rebate or balance of the unabsorbed rebate under section 42A(1) or (2) in force immediately before 1 January 2005, such rebate or balance is, subject to section 42A(4)(a) to (d) in force immediately before 1 January 2005, available for deduction against the tax payable by that individual only on due claim by that individual after that date and only for any year of assessment from the year of the claim.
(10)No rebate is allowed under this section for the year of assessment 2008 or a preceding year of assessment, in respect of a child who at the time of his or her birth or adoption or the marriage of his or her natural parents (as the case may be), has more than 3 other siblings who are members of the same household.
(10A)No rebate is allowed under this section in respect of a child who is adopted by an individual before the individual is married.
(11)In this section —
“first child of the family” means a child of the family who —
(a) is a citizen of Singapore at the time of his or her birth or adoption or the marriage of his or her natural parents (as the case may be), or within 12 months thereafter; and
(b) at the time of his or her birth, adoption or the marriage of his or her natural parents (as the case may be), has no other sibling who is a member of the same household;
“second child of the family” means a child of the family who —
(a) is a citizen of Singapore at the time of his or her birth or adoption or the marriage of his or her natural parents (as the case may be), or within 12 months thereafter; and
(b) at the time of his or her birth, adoption or the marriage of his or her natural parents (as the case may be), has one other sibling who is a member of the same household;
“third child of the family” means a child of the family who —
(a) is a citizen of Singapore at the time of his or her birth or adoption or the marriage of his or her natural parents (as the case may be), or within 12 months thereafter; and
(b) at the time of his or her birth, adoption or the marriage of his or her natural parents (as the case may be), has 2 other siblings who are members of the same household;
“fourth child of the family” means a child of the family who —
(a) is a citizen of Singapore at the time of his or her birth or adoption or the marriage of his or her natural parents (as the case may be), or within 12 months thereafter; and
(b) at the time of his or her birth, adoption or the marriage of his or her natural parents (as the case may be), has 3 other siblings who are members of the same household;
“fifth or subsequent child of the family” means a child of the family who —
(a) is a citizen of Singapore at the time of his or her birth or adoption or the marriage of his or her natural parents (as the case may be), or within 12 months thereafter; and
(b) at the time of his or her birth, adoption or the marriage of his or her natural parents (as the case may be), has at least 4 other siblings who are members of the same household;
“sibling” means a brother or sister and includes a stepbrother, a stepsister and a brother or sister adopted under any written law relating to the adoption of children.
(12)For the purposes of subsection (11), any sibling who is deceased must be taken into account in determining the number of siblings a child has at the time of his or her birth or adoption or the marriage of his or her natural parents unless otherwise determined by the Comptroller.
(12A)For the purposes of the definitions of “first child of the family”, “second child of the family”, “third child of the family”, “fourth child of the family” and “fifth or subsequent child of the family” in subsection (11), for the year of assessment 2022 or any subsequent year of assessment, any sibling of the child, being a sibling that is a stillborn child (whether issued from the child’s mother before, on or after 1 January 2022), is to be included in determining the number of siblings that the child has who are members of the same household, but only if the natural mother of the stillborn child is a member of that household.
(12B)To avoid doubt, subsection (12A) does not imply that a stillborn child is a child in respect of whom a rebate may be allowed under this section.
(12C)In subsection (12A), “stillborn child” means —
(a) a child that —
(i) has issued from the child’s mother after the twenty-eighth week of pregnancy and before 29 May 2022; and
(ii) did not show any sign of life at any time after being completely expelled from the mother;
(b) a child that —
(i) has issued from the child’s mother after the twenty-second week of pregnancy and on or after 29 May 2022 but before the date of commencement of section 2(c) of the Stillbirths and Births (Miscellaneous Amendments) Act 2024; and
(ii) did not show any sign of life at any time after being completely expelled or extracted from the mother; or
(c) a stillborn child as defined in section 2(1) of the Registration of Births and Deaths Act 2021 that issues from the child’s mother on or after the date of commencement of section 2(c) of the Stillbirths and Births (Miscellaneous Amendments) Act 2024.
(13)For the purposes of subsection (11), a child is a member of a household if —
(a) the members of the household include both the parents of the child or, if there is only one surviving parent, that parent;
(b) in the case where the parents of the child are divorced, any member of the household is a parent of the child who has sole legal custody of the child; or
(c) in the case where the parents of the child are divorced and neither has sole legal custody of the child, any member of the household is a parent of the child who has been given rights of care and control in respect of the child by any court.
(14)If the child is a member of more than one household by virtue of subsection (13)(c), the child is treated as such member of the household of only one parent as determined by the Comptroller (whose decision is final) having regard to the circumstances of the case, including the child’s living arrangements.
(15)In subsection (13), “parent” includes an adoptive parent and a step‑parent.
Rate of tax upon companies and others
43.—(1)There is to be levied and paid for each year of assessment upon the chargeable income of —
(a) every company or body of persons, tax at the rate of 17% on every dollar of the chargeable income thereof;
(b) every individual not resident in Singapore —
(i) for the year of assessment 2023 or a preceding year of assessment, tax at the rate of 22% on every dollar of the chargeable income thereof; and
(ii) for the year of assessment 2024 and subsequent years of assessment, tax at the rate of 24% on every dollar of the chargeable income thereof; and
(c) every other person not resident in Singapore, trustee (other than the trustee of an incapacitated person) and executor, tax at the rate of 17% on every dollar of the chargeable income thereof.
(2)Where any trustee proves to the Comptroller’s satisfaction that any beneficiary of the trust is entitled to a share of the trust income, a corresponding share of the statutory income of the trustee may be charged at a lower rate or not charged with any tax, as the Comptroller determines.
(2AA)Subsection (2) does not apply to a trust that is a REIT exchange‑traded fund unless it is an approved REIT exchange‑traded fund.
(2A)Subsection (2) does not apply to —
(a) in the case of a real estate investment trust, any income from any trade or business carried on by the trustee, other than the following income distributed by the trustee in cash or, if the conditions specified in subsection (2B) are satisfied, in units in the trust:
(i) rental income or income from the management or holding of immovable property but not including gains from the disposal of immovable property;
(ii) income that is ancillary to the management or holding of immovable property but not including gains from the disposal of immovable property;
(iii) income that is payable out of rental income or income from the management or holding of immovable property in Singapore, but not out of gains from the disposal of such immovable property;
(iv) distribution from an approved sub‑trust of the real estate investment trust out of income mentioned in paragraph (b)(i), (ii) and (iii);
(v) rental support payment in relation to any immovable property, which is paid to the trustee by —
(A) the person (A) who sold to the trustee the property or any interest in the owner of the property;
(B) a person who wholly owns (directly or indirectly) A; or
(C) any other person approved by the Comptroller;
(b) in the case of any approved sub‑trust of a real estate investment trust, any income from any trade or business carried on by the trustee, other than the following income distributed by the trustee in cash to the trustee of the real estate investment trust:
(i) rental income or income from the management or holding of immovable property but not including gains from the disposal of immovable property;
(ii) income that is ancillary to the management or holding of immovable property but not including gains from the disposal of immovable property;
(iii) rental support payment in relation to any immovable property, which is paid to the firstmentioned trustee by —
(A) the person (A) who sold to that trustee the property or any interest in the owner of the property;
(B) a person who wholly owns (directly or indirectly) A; or
(C) any other person approved by the Comptroller;
(ba) in the case of an approved REIT exchange‑traded fund, any income from any trade or business carried on by its trustee, other than a distribution in cash received in the period between 1 July 2018 and 31 December 2025 (both dates inclusive) from a real estate investment trust, that is in turn made out of any income mentioned in paragraph (a)(i) to (v); or
(c) in the case of any other trust, any income from any trade or business carried on by the trustee.
(2B)The conditions referred to in subsection (2A)(a) are —
(a) the distribution is made at any time on or after 1 April 2012 by the trustee of the real estate investment trust out of income specified in subsection (2A)(a)(i) to (v);
(b) before the distribution, the trustee of the real estate investment trust has given to unitholders receiving the distribution an option to receive the same either in cash or units in the trust; and
(c) the trustee of the real estate investment trust has sufficient cash available on the date of such distribution to make the distribution fully in cash had no option been given to those unitholders to receive the distribution in units in the trust.
(2C)To avoid doubt, subsection (2) (read with subsection (2A)(ba)) does not affect the operation of section 35(12) in relation to an approved REIT exchange‑traded fund that is also a designated unit trust within the meaning of section 35(14).
(3)Despite anything in this Act but subject to subsection (3A), tax at the rate of 15% is to be levied and paid on the gross amount of —
(a) any income referred to in section 12(6); and
(b) any income referred to in section 12(7)(a), (b) and (d) but excluding the incomes specified in subsection (7),
accruing in or derived from Singapore on or after 28 February 1996 by a person not resident in Singapore which is not derived by the person from any trade, business, profession or vocation carried on or exercised by the person in Singapore and which is not effectively connected with any permanent establishment in Singapore of the person.
(3A)Despite anything in this Act, tax at the rate of 10% is to be levied and paid on the gross amount of any income referred to in section 12(7)(a) and (b) but excluding the incomes specified in subsection (7), accruing in or derived from Singapore on or after 1 January 2005 by a person not resident in Singapore which is not derived by the person from any trade, business, profession or vocation carried on or exercised by the person in Singapore and which is not effectively connected with any permanent establishment in Singapore of the person.
(3B)Despite anything in this Act, tax at the rate of 10% is to be levied and paid on the gross amount of any distribution made out of any income mentioned in subsection (2A)(a)(i), (ii), (iii), (iv) and (v) during the period from 18 February 2005 to 31 December 2025 (both dates inclusive) by a trustee of any real estate investment trust to a person (other than an individual) not resident in Singapore —
(a) who does not have any permanent establishment in Singapore; or
(b) who carries on any operation in Singapore through a permanent establishment in Singapore, where the funds used by that person to acquire the units in that real estate investment trust are not obtained from that operation.
(3C)Despite anything in this Act, tax at the rate of 10% is levied and must be paid on the gross amount of any distribution by a trustee of an approved REIT exchange‑traded fund that is —
(a) made out of a distribution by a real estate investment trust that is in turn made out of income of the kinds mentioned in subsection (2A)(a)(i), (ii), (iii), (iv) and (v);
(b) made during the period from 1 July 2018 to 31 December 2025 (both dates inclusive); and
(c) made to a person (other than an individual) not resident in Singapore —
(i) that does not have any permanent establishment in Singapore; or
(ii) that carries on any operation in Singapore through a permanent establishment in Singapore, where the funds used by that person to acquire the units in that approved REIT exchange‑traded fund are not obtained from that operation.
(3D)In the application of subsection (3B) to a distribution mentioned in that subsection made during the period from 1 July 2019 to 31 December 2025 (both dates inclusive) to a person mentioned in subsection (3F) with a fund manager in Singapore, that fund manager is not considered a permanent establishment in Singapore of that person.
(3E)In the application of subsection (3C) to a distribution mentioned in that subsection made during the period from 1 July 2019 to 31 December 2025 (both dates inclusive) to a person mentioned in subsection (3F) with a fund manager in Singapore, that fund manager is not considered a permanent establishment in Singapore of that person.
(3F)Subsection (3D) or (3E) applies to a distribution made to any of the following persons or entities that is not resident in Singapore:
(a) a prescribed person (other than an individual) under section 13D;
(b) an approved person under section 13U;
(c) a person (not being an individual, a body of persons or a Hindu joint family) that is the approved master fund or an approved feeder fund of an approved master‑feeder fund structure under section 13U;
(d) a partner of a partnership (including a limited partnership and a limited liability partnership), where the partnership is the approved master fund or an approved feeder fund of an approved master‑feeder fund structure under section 13U;
(e) a trustee of a trust fund where the trust fund is the approved master fund or an approved feeder fund of an approved master‑feeder fund structure under section 13U;
(f) a taxable entity in relation to the approved master fund or an approved feeder fund of an approved master‑feeder fund structure under section 13U, where the master fund or feeder fund is not a legal entity;
(g) a company, a trustee of a trust fund or a partner of a limited partnership, where the company, trust fund or limited partnership is an approved feeder fund of an approved master‑feeder fund‑SPV structure under section 13U;
(h) a person (not being a company, an individual or a Hindu joint family) that is an approved feeder fund of an approved master‑feeder fund‑SPV structure under section 13U;
(i) a partner of a partnership (excluding a limited partnership but including a limited liability partnership), where the partnership is an approved feeder fund of an approved master‑feeder fund‑SPV structure under section 13U;
(j) a taxable entity in relation to an approved feeder fund of an approved master‑feeder fund‑SPV structure under section 13U, where the feeder fund is not a legal entity;
(k) an approved 1st tier SPV of an approved master‑feeder fund‑SPV structure under section 13U;
(l) an approved 2nd tier SPV of an approved master‑feeder fund‑SPV structure under section 13U;
(m) an approved eligible SPV of an approved master‑feeder fund‑SPV structure under section 13U, where the eligible SPV is not one mentioned in paragraphs (n), (o) and (p);
(n) a partner of an approved eligible SPV of an approved master‑feeder fund‑SPV structure under section 13U, where the eligible SPV is a partnership (including a limited partnership and a limited liability partnership);
(o) the trustee of an approved eligible SPV of an approved master‑feeder fund‑SPV structure under section 13U, where the eligible SPV is a trust fund;
(p) the taxable entity of an approved eligible SPV of an approved master‑feeder fund‑SPV structure under section 13U, where the eligible SPV is not a legal entity;
(q) an approved 1st tier SPV of an approved master fund‑SPV structure under section 13U;
(r) an approved 2nd tier SPV of an approved master fund‑SPV structure under section 13U;
(s) an approved eligible SPV of an approved master fund‑SPV structure under section 13U, where the eligible SPV is not one mentioned in paragraphs (t), (u) and (v);
(t) a partner of an approved eligible SPV of an approved master fund‑SPV structure under section 13U, where the eligible SPV is a partnership (including a limited partnership and a limited liability partnership);
(u) the trustee of an approved eligible SPV of an approved master fund‑SPV structure under section 13U, where the eligible SPV is a trust fund;
(v) the taxable entity of an approved eligible SPV of an approved master fund‑SPV structure under section 13U, where the eligible SPV is not a legal entity;
(w) a prescribed sovereign fund entity or an approved foreign government‑owned entity under section 13V.
(4)Despite anything in this Act but subject to subsections (4A) and (5) and sections 13(1)(r), (ra) and (rb) and 40A, tax at the rate of 15% is to be levied and paid on the gross amount of any income accruing in or derived from Singapore on or after 3 May 2002 from any profession or vocation carried on by —
(a) an individual not resident in Singapore and whose principal place of business is situated outside Singapore; or
(b) a foreign firm.
(4A)Despite anything in this Act but subject to subsection (5), tax at the rate of 10% is to be levied and paid on the gross amount of any income derived from Singapore during the period from 1 April 2023 to 31 December 2027 (both dates inclusive) —
(a) by an individual not resident in Singapore, from acting as an arbitrator;
(b) by a qualifying mediator who is not resident in Singapore, for providing the services of a mediator for a mediation —
(i) that takes place in Singapore; or
(ii) that would have taken place in Singapore but for the settlement of the dispute or withdrawal of the claim in question; or
(c) by an individual not resident in Singapore, for providing the services of a mediator for a qualifying mediation —
(i) that takes place in Singapore; or
(ii) that would have taken place in Singapore but for the settlement of the dispute or withdrawal of the claim in question.
(5)Any individual or foreign firm to which subsection (4) or (4A) applies may make an irrevocable option to be taxed under subsection (1)(b) by the 15th day of the second month following the month in which the payment of the income is liable to be made to the individual or firm.
(6)Despite subsection (1) but subject to subsection (6C), tax as described in subsection (6A) or (6B) (as the case may be) is levied and must be paid for each year of assessment upon the chargeable income of every company or body of persons.
(6A)For the purposes of subsection (6), the tax that is levied —
(a) in the case of a company, for the years of assessment 2008 to 2019 (both years inclusive); and
(b) in the case of a body of persons, for the years of assessment 2010 to 2019 (both years inclusive),
is tax at the rate prescribed in subsection (1)(a) on every dollar of the chargeable income, except that —
(c) for every dollar of the first $10,000 of the chargeable income, only 25% is chargeable with tax; and
(d) for every dollar of the next $290,000 of the chargeable income, only 50% is chargeable with tax.
(6B)For the purposes of subsection (6), the tax that is levied for the year of assessment 2020 and subsequent years of assessment, is tax at the rate prescribed in subsection (1)(a) on every dollar of the chargeable income, except that —
(a) for every dollar of the first $10,000 of the chargeable income, only 25% is chargeable with tax; and
(b) for every dollar of the next $190,000 of the chargeable income, only 50% is chargeable with tax.
(6C)Despite subsections (1) and (6), where, in any of the first 3 years of assessment falling in or after the year of assessment 2008 of a company, the company is a qualifying company, then for that year of assessment tax as described in subsection (6D) is levied and must be paid upon the chargeable income of the company.
(6D)For the purposes of subsection (6C), the tax that is levied is tax at the rate prescribed in subsection (1)(a) on every dollar of the chargeable income, except that —
(a) for the years of assessment 2008 to 2019 (both years inclusive) —
(i) every dollar of the first $100,000 of the chargeable income is exempt from tax; and
(ii) for every dollar of the next $200,000 of the chargeable income, only 50% is chargeable with tax; and
(b) for the year of assessment 2020 and subsequent years of assessment —
(i) for every dollar of the first $100,000 of the chargeable income, only 25% is chargeable with tax; and
(ii) for every dollar of the next $100,000 of the chargeable income, only 50% is chargeable with tax.
(7)The incomes excluded under subsections (3)(b) and (3A) are —
(a) any royalty and other payments referred to in section 10(14) or (16) which are derived by the person not resident in Singapore; and
(b) any payment to a person not resident in Singapore for the rendering of assistance or service in connection with the application or use of scientific, technical, industrial or commercial knowledge or information.
(8)The reference to 17% in subsection (1) is —
(a) for the years of assessment 2005, 2006 and 2007, a reference to 20%; and
(b) for the years of assessment 2008 and 2009, a reference to 18%.
(9)Despite subsection (1)(a), the tax to be levied and paid upon such income of a life insurer (other than a captive insurer) apportioned to the policyholders of the insurer as the Minister may by regulations specify is at the rate of 10% or such other prescribed rate.
(10)In this section —
“approved REIT exchange‑traded fund” means a REIT exchange‑traded fund that is approved by the Comptroller for the purposes of subsection (2);
“approved sub‑trust”, in relation to a real estate investment trust, means any trust —
(a) not listed on the Singapore Exchange or elsewhere;
(b) where the trustee of the real estate investment trust holds any right or interest in the property of the trust for the benefit of the beneficiaries of the real estate investment trust; and
(c) approved by the Comptroller;
“arbitrator” means an individual appointed for any arbitration which is governed by the Arbitration Act 2001 or the International Arbitration Act 1994, or would have been governed by either of those Acts had the place of arbitration been Singapore;
“captive insurer” has the meaning given by section 2 of the Insurance Act 1966;
“first 3 years of assessment”, in relation to a qualifying company, means the year of assessment relating to the basis period during which the company is incorporated in Singapore and the 2 consecutive years of assessment immediately following that year of assessment;
“foreign firm” means an unincorporated body of 2 or more persons who have entered into partnership with one another with a view to carrying on business for profit and whose principal place of business is situated outside Singapore;
“gross amount”, in relation to any income referred to in subsections (3), (3A), (3B) and (4), means the full amount of the income without any deduction and relief being allowed against the income under the provisions of this Act;
“immovable property‑related assets” means listed or unlisted debt securities and listed shares issued by property corporations, mortgage‑backed securities, other property funds, and assets incidental to the ownership of immovable property;
“qualifying company”, in relation to a year of assessment, means a company incorporated in Singapore which for that year of assessment —
(a) is resident in Singapore; and
(b) where the company —
(i) is not a company limited by guarantee, has its total share capital beneficially held directly by no more than 20 shareholders —
(A) all of whom are individuals throughout the basis period for that year of assessment; or
(B) at least one of whom is an individual holding at least 10% of the total number of issued ordinary shares of the company throughout the basis period for that year of assessment; or
(ii) is a company limited by guarantee, has members —
(A) all of whom are individuals throughout the basis period for that year of assessment; or
(B) at least one of whom is an individual throughout the basis period for that year of assessment, and the contribution of that individual under the memorandum of association of the company to the assets of the company in the event of its being wound up, amounts to at least 10% of the total contributions of the members of the company throughout the basis period for that year of assessment;
“qualifying mediation” means a mediation that is administered by a body or an organisation that provides services for the conduct of mediation (called in this section a mediation service provider), and that is prescribed under section 7;
“qualifying mediator” means an individual who is certified or accredited under a mediator certification or accreditation scheme prescribed under section 7;
“real estate investment trust” means a trust that is constituted as a collective investment scheme authorised under section 286 of the Securities and Futures Act 2001 and listed on the Singapore Exchange, and that invests or proposes to invest in immovable property and immovable property‑related assets;
“REIT exchange‑traded fund” means a collective investment scheme authorised under section 286 of the Securities and Futures Act 2001 and listed on the Singapore Exchange, and that invests or proposes to invest only in —
(a) real estate investment trusts; and
(b) any entity, trust or other arrangement that invests or proposes to invest in immovable property and immovable property‑related assets, and is listed on a stock exchange outside Singapore;
“rental support payment”, in relation to immovable property, means any payment —
(a) made under an agreement —
(i) made at the time of the sale mentioned in subsection (2A)(a)(v)(A) or (b)(iii)(A); and
(ii) that provides for such payment to be made only for a fixed period of time; and
(b) that is intended to compensate a party to the agreement in the event that the amount of rental income from the property over a period of time is less than an amount agreed as the expected rental income for the same period, taking into account prevailing and forecasted market conditions at the time of that sale.
(11)Despite the definition of “qualifying company” in subsection (10), a company that is incorporated on or after 26 February 2013 is not a qualifying company in relation to any year of assessment if —
(a) it undertakes property development in the basis period for that year of assessment, whether or not that is the only activity it carries out during the basis period;
(b) it is a partner of a partnership which undertakes property development in the basis period for that year of assessment, whether or not that is the only activity the partnership carries out during the basis period;
(c) its only activity in that basis period is the holding of investments; or
(d) it is a partner of a partnership where the only activity of the partnership during that basis period is the holding of investments, and the company has no activity during that basis period or its only activity during that basis period is the holding of investments.
(12)For the purposes of subsection (11), a company or partnership undertakes property development if it carries out any of the following activities whether in Singapore or outside Singapore:
(a) acquires land or building for the purpose of undertaking development (whether by the company or partnership or an entity to which it transfers the land or building) with a view to the sale or lease (whether by the entity undertaking the development or another entity to which the entity undertaking the development transfers the building or part thereof) of the whole or any part of the building so developed;
(b) development with a view to the sale or lease (whether by the company or partnership or another entity to which the company or partnership transfers the building or part thereof) of the whole or any part of the building so developed;
(c) the sale or lease of the whole or any part of a building developed by the company or partnership;
(d) any other activity that is preparatory to, connected with or incidental to any activity referred to in paragraph (a), (b) or (c).
(13)In subsection (12) —
“acquire” includes acquire by way of purchase, grant, exchange, gift, settlement or otherwise;
“develop” means to construct or cause to construct a building, including any building operations in, on, over or under the land for the purpose of erecting the building; and “development” is to be construed accordingly.
(14)For the purposes of the definitions of “qualifying mediation” and “qualifying mediator” in subsection (10), the Minister may prescribe a description of mediation service providers and a description of mediator certification or accreditation schemes that are set out on a specified website of the Ministry of Law, as amended from time to time.
Concessionary rate of tax for Asian Currency Unit, Fund Manager and securities company
43A.—(1)Despite section 43, the Minister may by regulations provide that tax at the rate of 10% is to be levied and paid for each year of assessment upon such income derived before 1 January 2004 as the Minister may specify of —
(a) a financial institution with an Asian Currency Unit;
(b) a Fund Manager;
(c) a company holding a capital markets services licence under the Securities and Futures Act 2001 to deal in securities or that is exempted under that Act from holding such a licence,
approved by the Minister or such person as the Minister may appoint.
(2)Regulations made under subsection (1) may provide for —
(a) exemption from tax of any income mentioned in that subsection;
(b) exemption from tax of such income as the Minister may specify of —
(i) a bank or merchant bank licensed under the Banking Act 1970; and
(ii) a company approved under subsection (1)(c),
derived by it from any approved syndicated offshore credit or guarantee facility or any other syndicated offshore credit or guarantee facility made before 1 January 2004 which satisfies the prescribed criteria;
(c) deduction of losses, capital allowances and donations otherwise than in accordance with this Act;
(d) circumstances in which any losses (including impairment loss recognised under FRS 39, as defined in section 34A, and expected credit loss recognised under FRS 109 or SFRS(I) 9, as defined in section 34AA) incurred in respect of any facility mentioned in paragraph (b), and capital allowances and donations attributable to income from such facility which has been allowed as a deduction against any income chargeable to tax, may be deemed as income chargeable to tax (at such rate as may be prescribed) for a specified basis period;
(e) adjustment of any amount deemed as income chargeable to tax mentioned in paragraph (d) for the specified basis period;
(f) circumstances in which any income from any facility mentioned in paragraph (b) to be exempt from tax, may be adjusted for any basis period in which the income from such facility is derived;
(g) circumstances in which any impairment loss, bad debt or provision for doubtful debt in respect of any facility mentioned in paragraph (b), which has previously been allowed as a deduction against any income chargeable to tax and which is subsequently reversed, recovered or written back, may be deemed as income chargeable to tax (at such rate as may be prescribed) for any basis period in which the reversal is recognised or the recovery or write‑back occurs; and
(h) generally for giving full effect to or for carrying out the purposes of this section.
Special rate of tax for non‑resident shipowner or charterer or air transport undertaking
43B.Despite section 43, where the tax authority of a foreign country taxes the profits derived by a person resident in Singapore from carrying on the business of a shipowner or charterer or of air transport at a rate which exceeds the rate prescribed by section 43, the Minister may direct that the profits derived in Singapore from the carrying on of such business by a non‑resident person who is resident in that foreign country be charged to tax at a rate similar to that charged by the tax authority of that foreign country.
Exemption and concessionary rate of tax for insurance and reinsurance business
43C.—(1)Despite section 43, the Minister may make regulations —
(a) to provide for tax at the rate of 10% to be levied and paid for each year of assessment upon such income as the Minister may specify that is derived before 1 July 2021 by an approved insurer, whose approval is granted before 1 June 2017, from offshore life business within the meaning of section 26, or the business (other than the business of life assurance) of insuring and reinsuring offshore risks;
(aa) to provide for tax at the rate of 10% to be levied and paid for each year of assessment upon such income as the Minister may specify that is derived by an approved insurer, whose approval is granted on or after 1 June 2017, from the reinsurance of liabilities under policies relating to life business as defined in section 3(1)(a) of the Insurance Act 1966, or such description of general business within the meaning of section 3(1)(b) of that Act, as may be prescribed;
(ab) to provide for tax at the rate of 10% to be levied and paid for each year of assessment upon such income as the Minister may specify that is derived on or after 1 July 2021 by an approved insurer whose approval is granted before 1 June 2017, from —
(i) the reinsurance of liabilities under policies relating to life business as defined in section 3(1)(a) of the Insurance Act 1966; or
(ii) such description of general business as defined in section 3(1)(b) of that Act, as may be prescribed;
(b) to provide for exemption from tax of such income as the Minister may specify that is derived from insurance and reinsurance business by the following:
(i) an approved specialised insurer whose approval is granted before 1 September 2016;
(ii) an approved captive insurer whose approval is granted before 1 April 2018;
(c) to provide for tax at the rate specified in the first column of the following table, to be levied and paid for each year of assessment upon such income as the Minister may specify that is derived from insurance and reinsurance business by an approved insurer set out opposite that rate in the second column of the table:
Tax rate
Approved insurer
5%
An approved specialised insurer whose approval is granted between 1 September 2016 and 31 August 2019 (both dates inclusive), and who had not been approved as such at any time before the date of the approval
8%
An approved specialised insurer whose approval is granted between 1 September 2019 and 31 August 2021 (both dates inclusive), and who had not been approved as such at any time before the date of the approval
10%
(i) An approved specialised insurer whose approval is granted between 1 September 2016 and 31 August 2021 (both dates inclusive), and who had been approved as such at any time before the date of the firstmentioned approval
(ii) An approved captive insurer whose approval is granted on or after 1 April 2018
(d) to provide for exemption from tax of such income as the Minister may specify that is derived by an approved insurer whose approval is granted before 1 April 2016, from marine hull and liability insurance and reinsurance business;
(e) to provide for tax at the rate specified in the first column of the following table, to be levied and paid for each year of assessment upon such income as the Minister may specify that is derived from marine hull and liability insurance and reinsurance business by an approved insurer set out opposite that rate in the second column of the table:
Tax rate
Approved insurer
5%
An approved insurer whose approval was granted between 19 February 2011 and 31 March 2016 (both dates inclusive), and who had been approved as such at any time before the date of the firstmentioned approval
10%
An approved insurer whose approval is granted between 1 April 2016 and 31 March 2020 (both dates inclusive)
(f) to provide for the deduction (otherwise than in accordance with this Act), from the income mentioned in paragraphs (a) to (e), of allowances under section 19, 19A, 20, 21, 22 or 23, expenses, losses and donations allowable under this Act, including deduction of these allowances, expenses, losses and donations in such manner and to such extent as the Comptroller may determine;
(g) to provide for the period of each approval, and the conditions subject to which a specified insurer may be or may continue to be approved; and
(h) to provide for such matters as the Minister may consider necessary or expedient for carrying out the purposes under paragraphs (a) to (g).
(2)No approval may be granted to an insurer for the purpose of paragraph (a), (aa), (b), (c), (d) or (e) of subsection (1) on or after the date prescribed in the regulations for that paragraph.
(3)In this section —
“approved” means approved by the Minister or an authorised body;
“captive insurer” has the meaning given by section 2 of the Insurance Act 1966;
“insurer” means —
(a) a company licensed under the Insurance Act 1966 to carry on insurance business in Singapore; or
(b) a person (including a partnership), other than an individual, permitted under the Insurance Act 1966 to carry on insurance business in Singapore under a foreign insurer scheme;
“marine hull and liability insurance and reinsurance business” means the business of insuring and reinsuring risks involving marine hull and liability but excludes cargo, energy and aviation risks;
“specialised insurer” means an insurer underwriting any of the following insurance risks (whether or not it also underwrites any other type of risk):
(a) terrorism risks;
(b) political risks;
(c) energy risks;
(d) aviation and aerospace risks;
(e) agriculture risks;
(f) risks arising from a natural catastrophe.
Concessionary rate of tax for headquarters company
43D.—(1)Despite section 43, the Minister may by regulations provide that tax at the rate of 10% is to be levied and paid for each year of assessment upon such income as the Minister may specify of an approved headquarters company derived by it from —
(a) the provision of such qualifying services as may be prescribed to its offices, associated companies and other persons where such offices, associated companies and persons are outside Singapore; or
(b) such qualifying treasury, investment or financial activities as may be prescribed,
and those regulations may provide for the deduction of losses otherwise than in accordance with section 37(3).
(1A)This section does not apply to any income derived on or after 1 October 2015.
(2)The concessionary rate of tax referred to in subsection (1) applies to an approved headquarters company —
(a) in respect of any qualifying service only where the qualifying service and the office, associated company or person to whom the service is rendered have been approved in relation to that headquarters company for such concessionary rate;
(b) in respect of any qualifying treasury, investment or financial activity only where the qualifying activity has been approved in relation to that headquarters company for such concessionary rate; and
(c) subject to such conditions as the Minister or such person as the Minister may appoint may impose.
(3)Regulations made under subsection (1) may provide for exemption from tax of income derived by an approved headquarters company from the provision of any qualifying service if —
(a) the qualifying service and the office, associated company or person to whom the service is rendered have been approved in relation to the approved headquarters company for the purposes of the exemption from tax; and
(b) the approved headquarters company has global responsibility for the provision of any qualifying service.
(4)In this section —
“approved” means approved by the Minister or such person as the Minister appoints;
“associated company”, in relation to an approved headquarters company, means a company —
(a) the operations of which are or can be controlled, directly or indirectly, by that headquarters company;
(b) which controls or can control, directly or indirectly, the operations of that headquarters company; or
(c) the operations of which are or can be controlled, directly or indirectly, by a person or persons who control or can control, directly or indirectly, the operations of that headquarters company;
“headquarters company” means a company carrying on the business in Singapore of providing management, technical or other supporting services to its offices outside Singapore or to its associated companies outside Singapore.
(5)For the purposes of subsection (4), a company is deemed to be an associated company in relation to an approved headquarters company if —
(a) at least 25% of the total number of its issued shares are beneficially owned, directly or indirectly, by the approved headquarters company; or
(b) at least 25% of the total number of the issued shares of the approved headquarters company are beneficially owned, directly or indirectly, by the firstmentioned company.
Concessionary rate of tax for Finance and Treasury Centre
43E.—(1)Despite section 43, the Minister may by regulations provide that tax at the concessionary rate specified in subsection (1A) is levied and must be paid for each year of assessment upon such income as the Minister may specify of a company derived from —
(a) the operation of its approved Finance and Treasury Centre in respect of such qualifying activities carried out on its own account as may be prescribed; or
(b) such prescribed qualifying services as may be provided by its approved Finance and Treasury Centre to —
(i) its offices and associated companies outside Singapore; or
(ii) such of its offices and associated companies in Singapore as are approved on or after 18 February 2005,
and those regulations may provide for the deduction of losses otherwise than in accordance with section 37(3).
(1A)In subsection (1), the concessionary rate is —
(a) in the case of a Finance and Treasury Centre approved as such on or before 24 March 2016, 10%; or
(b) in any other case, 8%.
(2)The concessionary rate of tax mentioned in subsection (1) applies to an approved Finance and Treasury Centre —
(a) in respect of any qualifying service only where the qualifying service and the office or associated company to whom the service is rendered have been approved in relation to that Centre for such concessionary rate; and
(b) in respect of any qualifying activity only where the qualifying activity has been approved in relation to that Centre for such concessionary rate.
(2A)The Minister or an authorised body may, subject to such conditions as the Minister or authorised body may impose, approve a Finance and Treasury Centre for a company for the purposes of this section.
(3)In this section —
“approved” means approved by the Minister or an authorised body;
“associated company”, in relation to a company with an approved Finance and Treasury Centre, means a company —
(a) the operations of which are or can be controlled, directly or indirectly, by the company with the approved Centre;
(b) which controls or can control, directly or indirectly, the operations of the company with the approved Centre; or
(c) the operations of which are or can be controlled, directly or indirectly, by a person or persons who control or can control, directly or indirectly, the operations of the company with the approved Centre;
“Finance and Treasury Centre” means a division or department of a company which provides treasury, investment or financial services in Singapore for its offices or its associated companies.
(4)For the purposes of subsection (3), a company is deemed to be an associated company in relation to a company with an approved Finance and Treasury Centre if —
(a) at least 25% of the total number of its issued shares are beneficially owned, directly or indirectly, by the company with the approved Centre; or
(b) at least 25% of the total number of issued shares of the company with the approved Centre are beneficially owned, directly or indirectly, by the firstmentioned company.
(5)No Finance and Treasury Centre may be approved as an approved Finance and Treasury Centre under this section after 31 December 2026.
[43G
Concessionary rate of tax for offshore leasing of machinery and plant
43F.—(1)Despite section 43, tax at the rate of 10% is to be levied and paid for each year of assessment upon the income of a leasing company accruing in or derived from Singapore in respect of offshore leasing of any machinery or plant or such other activity as may be prescribed by regulations.
(1A)This section does not apply to any income accruing in or derived from Singapore on or after 1 January 2016.
(2)In determining the income of a leasing company from offshore leasing —
(a) the allowances under section 19, 19A, 20, 21, 22 or 23 must be taken into account even if no claim for such allowances has been made;
(b) the allowances under section 19, 19A, 20, 21, 22 or 23 in respect of offshore finance leasing in any year of assessment after deduction against the income from such leasing are available as a deduction against any income from onshore finance leasing for that year of assessment, and any balance of the allowances is not, subject to paragraph (c), available as a deduction against any other income or available for transfer under section 37B;
(c) where the leasing company ceases to derive income from finance leasing in the basis period for any year of assessment, any balance of the allowances in respect of finance leasing after the deduction in paragraph (b) is available as a deduction against any other income for that year of assessment and for any subsequent year of assessment in accordance with section 23; and
(d) the Comptroller must determine the manner and extent to which —
(i) allowances under section 19, 19A, 20, 21, 22 or 23 and any expenses and donations allowable under this Act are to be deducted; and
(ii) any loss may be deducted under section 37.
(3)Subsection (2) applies, with the necessary modifications, in determining the income of a leasing company from any activity prescribed by regulations made under subsection (1) as if such income were income from offshore operating leasing.
(4)
(5)
(6)Despite subsection (1), a leasing company may, at any time, elect that the whole of its income accruing in or derived from Singapore in respect of offshore leasing of any machinery or plant be taxed at the rate prescribed by section 43(1)(a).
(7)An election under subsection (6) must be made by a leasing company by written notice to the Comptroller and is irrevocable.
(8)Where a leasing company has made an election under subsection (6) —
(a) subsections (1), (2) and (3) do not apply to the income of the leasing company for the year of assessment immediately following the year in which the election is made and for subsequent years of assessment; and
(b) any allowance or the balance thereof in respect of finance leasing which was not deducted against the income of the leasing company for any year of assessment during which the concessionary rate prescribed by subsection (1) applies is available as a deduction against the income from finance leasing for the first year of assessment to which paragraph (a) applies and for any subsequent year of assessment.
(9)In this section —
“finance lease”, “finance leasing” and “onshore finance leasing” have the meanings given by section 10C(3);
“leasing company” means any company carrying on a business of leasing machinery or plant;
“offshore finance leasing” means the offshore leasing of any machinery or plant under any finance lease;
“offshore leasing” means the leasing of any machinery or plant, other than those which have been treated as though they had been sold pursuant to regulations made under section 10C(1), where such machinery or plant is used outside Singapore, and the payments under the lease —
(a) are in currencies other than Singapore dollars; and
(b) are not deductible against any income accruing in or derived from Singapore;
“offshore operating leasing” means the offshore leasing of any machinery or plant, other than offshore finance leasing.
Concessionary rate of tax for trustee company
43G.—(1)Despite section 43, the Minister may by regulations provide that tax at the rate of 10% is to be levied and paid for each year of assessment upon such income as the Minister may specify of an approved trustee company derived by it from such services as may be prescribed; and those regulations may provide for exemption from tax of any such income and for the deduction of losses otherwise than in accordance with section 37(3).
(2)In this section, “trustee company” means a company that is a licensed trust company within the meaning of the Trust Companies Act 2005, or that is exempted under that Act from holding a trust business licence within the meaning of that Act.
(3)The Minister or such person as the Minister may appoint may approve a trustee company as an approved trustee company for the purposes of this section.
(4)Any approval under subsection (3) must be for a period not exceeding 10 years as the Minister or the person appointed by the Minister may specify, and is subject to such conditions as the Minister may impose.
(5)No trustee company may be approved under subsection (3) on or after 1 April 2016.
(6)A trustee company that is an approved trustee company immediately before 1 April 2011 remains as an approved trustee company until 31 March 2021, unless its approval is revoked earlier.
(7)The trustee company mentioned in subsection (6) remains as an approved trustee company subject to such conditions as the Minister may impose.
Concessionary rate of tax for income derived from debt securities
43H.—(1)Despite section 43, the Minister may by regulations provide that tax at the rate of 10% is to be levied and paid for each year of assessment upon —
(a) interest derived by any company from any qualifying debt securities;
(aa) discount derived by any company from any qualifying debt securities issued during the period from 17 February 2006 to 31 December 2028 (both dates inclusive);
(ab) any amount payable to any company from any Islamic debt securities which are qualifying debt securities, and issued during the period from 1 January 2005 to 31 December 2028 (both dates inclusive);
(ac) any early redemption fee or redemption premium derived by any company from qualifying debt securities issued during the period from 15 February 2007 to 31 December 2028 (both dates inclusive); and
(ad) such other income derived by any company that is directly attributable to qualifying debt securities issued on or after a prescribed date, as may be prescribed by regulations.
(2)Subsection (1)(a), (aa), (ab), (ac) or (ad) (as the case may be) does not, unless otherwise approved by the Minister or an authorised body, apply to —
(a) any interest derived from any qualifying debt securities issued during the period from 10 May 1999 to 31 December 2028 (both dates inclusive);
(b) any discount from any qualifying debt securities issued during the period from 17 February 2006 to 31 December 2028 (both dates inclusive);
(c) any amount payable from any Islamic debt securities which are qualifying debt securities, and issued during the period from 1 January 2005 to 31 December 2028;
(d) any early redemption fee or redemption premium from qualifying debt securities issued during the period from 15 February 2007 to 31 December 2028 (both dates inclusive); and
(e) such other income directly attributable to qualifying debt securities issued on or after a prescribed date, as may be prescribed by regulations,
where 50% or more of those securities which are outstanding at any time during the life of the issue is beneficially held or funded, directly or indirectly, by related parties of the issuer of those securities and where such income is derived by —
(f) any company which is a related party of the issuer of those securities; or
(g) any company where the funds used by such company to acquire those securities are obtained, directly or indirectly, from any related party of the issuer of those securities.
(2A)Subsection (1) does not apply to income from qualifying debt securities derived by a financial sector incentive (standard tier) company.
(2B)Subsection (1) does not apply to income derived by a financial sector incentive (capital market) company from qualifying debt securities on or after 1 January 2014.
(3)Regulations made under subsection (1) may provide for exemption from tax of income derived by a primary dealer from trading in any Singapore Government securities during the period from 27 February 1999 to 31 December 2028 (both dates inclusive), and for deduction of losses otherwise than in accordance with section 37(3).
(3A)A primary dealer mentioned in subsection (3) may elect in accordance with subsection (3B) not to be subject to the regulations made under subsection (1); and if the primary dealer so elects, the regulations cease to apply to the income of that primary dealer for the year of assessment for which the election is made and for subsequent years of assessment.
(3B)The election mentioned in subsection (3A) must be made by the primary dealer by written notice to the Comptroller —
(a) at the time of lodgment of the return of income for a year of assessment; or
(b) at such further time as the Comptroller may allow.
(3C)The election made by a primary dealer under subsection (3A) is irrevocable.
(4)In this section —
“debt securities” means bonds, notes, commercial papers, treasury bills, certificates of deposits, and AT1 instruments within the meaning of section 10I(2);
“early redemption fee”, “financial institution”, “qualifying debt securities” and “redemption premium” have the meanings given by section 13(16);
“financial sector incentive (capital market) company” means a company approved as such under section 43J;
“financial sector incentive (standard tier) company” means a company approved as such under section 43J;
“Islamic debt securities” means debt securities and trust certificates —
(a) which are endorsed by any Shari’ah council or body, or by any committee formed for the purpose of providing guidance on compliance with Shari’ah law; and
(b) the amounts payable from such securities and trust certificates are periodic and supported by a regular stream of receipts from underlying assets;
“primary dealer” means any financial institution appointed by the Monetary Authority of Singapore as a primary dealer under section 29A of the Government Securities Act 1992;
“Singapore Government securities” means debt securities issued under the Government Securities Act 1992, the repealed Local Treasury Bills Act 1923, the Significant Infrastructure Government Loan Act 2021 or by the Government under any other written law, and is deemed to include any issue of bills and notes by the Monetary Authority of Singapore that are approved by the Minister for the purposes of this Act;
“trust certificates” means certificates evidencing beneficial ownership in underlying assets.
(5)Subsections (1)(a), (aa), (ab), (ac) and (ad) and (2) and regulations made under any of those provisions apply to a body of persons for the year of assessment 2010 and subsequent years of assessment.
Concessionary rate of tax for global trading company and qualifying company
43I.—(1)Despite section 43, the Minister may by regulations provide that tax at the rate of 5% or 10% is to be levied and paid for each year of assessment upon —
(a) such income as the Minister may specify of an approved global trading company —
(i) that is derived by it from such prescribed qualifying transactions in such prescribed commodities as the Minister or an authorised body may specify to the company;
(ii) that is derived by it in the basis period for the year of assessment 2012 or a subsequent year of assessment, from prescribed qualifying transactions in any derivative instrument; or
(iii) that is derived by it on or after 19 February 2020 from the carrying on of such prescribed qualifying structured commodity financing activities, prescribed treasury activities or prescribed advisory services in relation to mergers and acquisitions, as the Minister or an authorised body may specify to the company; and
(b) such income as the Minister may specify of an approved qualifying company that is derived on or after 21 May 2010 from the carrying on of such prescribed qualifying structured commodity financing activities, prescribed treasury activities or prescribed advisory services in relation to mergers and acquisitions, as the Minister or an authorised body may specify to the company,
and those regulations may provide for the deduction of losses otherwise than in accordance with section 37(3).
(1AA)Subject to the regulations under subsection (1), the income of an approved global trading company or approved qualifying company mentioned in that subsection —
(a) is chargeable with tax at the rate of 5% if the company has been approved for that rate; or
(b) is chargeable with tax at the rate of 10% if the company has been approved for that rate.
(1AB)For the purposes of this section, the Minister or an authorised body may, subject to such conditions as the Minister or authorised body may impose, approve —
(a) a global trading company as an approved global trading company; or
(b) a qualifying company as an approved qualifying company.
(1A)No approval may be granted under this section to a global trading company after 31 December 2026.
(1B)No approval may be granted under this section to a qualifying company after 31 March 2021, and any approval granted to a qualifying company must be for a period that commences on or before that date.
(2)
(3)In this section —
“global trading company” means a company that carries on the business of international trading of commodities or commodities derivatives, or of brokering international trades in commodities, or both;
“qualifying company” means —
(a) an approved company that carries on the business of international trading of commodities or commodities derivatives; or
(b) a wholly‑owned subsidiary of another company, where the other company carries on the business of international trading of commodities or commodities derivatives,
that carries on any qualifying structured commodity financing activities, treasury activities, or advisory services in relation to mergers and acquisitions, prescribed under subsection (1).
[43P
Concessionary rate of tax for financial sector incentive company
43J.—(1)Despite section 43, the Minister may by regulations provide that tax at the rate of 5%, 10%, 12% or 13.5% is to be levied and paid for each year of assessment upon such income as the Minister may specify, derived on or after 1 January 2004 by a financial sector incentive company from such qualifying activities as may be prescribed, and those regulations may provide for the deduction of losses otherwise than in accordance with section 37(3).
(2)The Minister or an authorised body may, subject to such conditions as the Minister or authorised body may impose, approve a company carrying on such qualifying activities as may be prescribed, as a financial sector incentive company for the purposes of this section, and the Minister or authorised body may approve different classes of financial sector incentive companies for the purposes of this section.
(2A)Regulations under subsection (1) may make transitional provisions to apply the rate of tax of 12% to —
(a) any company which holds membership of any class or description of a futures market, or of a clearing house for the futures market, maintained by the Singapore Exchange Limited or any of its subsidiaries; and
(b) a member of the corporation known as the Singapore Commodity Exchange Ltd,
which has given notice within a specified period to the Monetary Authority of Singapore for the purposes of the application of these transitional provisions, in respect of its income derived on or after 1 January 2011 but on or before 31 December 2013 from specified qualifying activities.
[43Q
Concessionary rate of tax for provision of processing services to financial institutions
43K.—(1)Despite section 43, the Minister may by regulations provide that tax at the rate of 5% is to be levied and paid for each year of assessment upon such income as the Minister may specify of an approved company derived by it on or after 27 February 2004 from the provision of prescribed processing services in Singapore to any financial institution or another approved company; and those regulations may provide for the deduction of losses of an approved company otherwise than in accordance with section 37(3).
(2)The Minister or a person appointed by the Minister may, subject to such conditions as the Minister or appointed person may impose, approve a company as an approved company for the purposes of this section.
(3)No approval under this section may be granted to any company on or after 27 February 2009.
(4)In this section, “financial institution” means —
(a) any institution in Singapore that is licensed or approved by the Monetary Authority of Singapore, or exempted from such licensing or approval, under any written law administered by the Monetary Authority of Singapore; or
(b) any institution outside Singapore that is licensed or approved, or exempted from such licensing or approval, by its financial supervisory authority for the carrying on of financial activities.
Concessionary rate of tax for shipping investment manager
43L.—(1)Despite section 43, the Minister may by regulations provide that tax at the rate of 10% is to be levied and paid for each year of assessment upon such income as the Minister may specify of an approved shipping investment manager derived by it on or after 1 March 2006 from —
(a) managing an approved shipping investment enterprise; or
(b) such other services or activities carried out for an approved shipping investment enterprise as may be prescribed.
(2)Regulations made under subsection (1) may provide for the deduction of losses otherwise than in accordance with section 37(3).
(3)The Minister or an authorised body may, subject to such conditions as the Minister or authorised body may impose, approve a shipping investment manager as an approved shipping investment manager for the purposes of this section.
(4)Approval of a shipping investment manager under this section may be granted between 1 March 2006 and 28 February 2011 (both dates inclusive).
(4A)Approval of a shipping investment manager under this section may be granted between 1 March 2011 and 31 December 2026 (both dates inclusive) for such period not exceeding 5 years as the Minister or authorised body may specify, except that the Minister or authorised body may extend the period so specified for such further periods as the Minister or authorised body thinks fit.
(5)In this section —
“approved” means approved by the Minister or an authorised body;
“shipping investment enterprise” has the meaning given by section 13P;
“shipping investment manager” means any company incorporated in Singapore.
Concessionary rate of tax for trust income to which beneficiary is entitled
43M.—(1)Where any beneficiary of a trust who is resident in Singapore is entitled to any share of the statutory income of the trust, that share is, if it would have been subject to a concessionary rate of tax under any provision of this Part had it been derived or received directly by the beneficiary rather than the trustee of the trust, subject to the same concessionary rate of tax.
(2)This section does not apply to —
(a) any income of a real estate investment trust within the meaning of section 43(10);
(b) any income of a designated unit trust within the meaning of section 35(14);
(c)
(d) any income of a trust fund prescribed under section 13C;
(e) any income of a foreign trust specified under section 13F;
(f) any income of a locally‑administered trust prescribed under section 13N;
(g) any income of a trust the trustee of which is a prescribed person under section 13D; or
(h) any income of an approved trust fund referred to in the definition of “approved person” under section 13U(5), or of a trust fund that is a feeder fund or master fund approved under section 13U.
[43X
Concessionary rate of tax for estate income received by beneficiary, etc.
43MA.Where any person resident in Singapore is a beneficiary of an estate administered in Singapore, and any share of the statutory income of the estate is received by, distributed to or applied to the benefit of that person, that share is, if it would have been subject to a concessionary rate of tax under any provision of this Part had it been derived or received directly by that person instead of the executor of the estate, subject to the same concessionary rate of tax.
Concessionary rate of tax for leasing of aircraft and aircraft engines
43N.—(1)Despite section 43, tax at the following rate is to be levied, and paid, for each year of assessment upon the income of an approved aircraft leasing company accruing in or derived from Singapore in respect of the leasing of any aircraft or aircraft engine or such other activity as the Minister may by regulations prescribe:
(a) where the company is approved before 1 April 2017, 5% or 10%, as specified by the Minister or such person as the Minister may appoint;
(b) where the company is approved on or after 1 April 2017, 8%.
(1A)Despite subsection (1), where —
(a) a company was approved as an approved aircraft leasing company on or before 31 March 2017;
(b) the company is approved again as an approved aircraft leasing company at any time on or after 1 April 2017;
(c) the period of approval in paragraph (b) (called in this subsection the current approval period) starts immediately upon the expiry of the period of the approval in paragraph (a) (called in this subsection the previous approval period); and
(d) the company elects to apply the concessionary rate of tax specified to it under subsection (1)(a) for the previous approval period, to the company’s income that accrues in or is derived from Singapore between the date of commencement of the current approval period and 31 December 2027 (both dates inclusive), in respect of an aircraft or aircraft engine to which this subsection applies,
then that concessionary rate of tax applies to such income if the company remains an approved aircraft leasing company at the time the income accrues to or is derived by the company.
(1AA)To avoid doubt, the approval in subsection (1A)(b) includes an approval made under subsection (2) as in force immediately before the date of commencement of section 61(26) of the Income Tax (Amendment) Act 2020.
(1B)Subsection (1A) —
(a) applies to an aircraft or aircraft engine that the company either owned (whether legally or beneficially) or of which it was a lessee under a finance lease treated as a sale under section 10C, as at the last day of the previous approval period; and
(b) does not apply to any aircraft or aircraft engine that —
(i) has been disposed of by the company after that day and then re‑acquired by or leased back to the company; or
(ii) has not been delivered to the company as of that day.
(1C)The election under subsection (1A) must be made by written notice to the Comptroller at the time of lodgment of the return of income for the year of assessment relating to the basis period in which the approval in subsection (1A)(b) is given or within such extended time as the Comptroller may allow.
(2)The Minister or an authorised body may, subject to such conditions as the Minister or authorised body may impose, approve an aircraft leasing company as an approved aircraft leasing company for the purposes of this section.
(3)Tax at the concessionary rate of the income of an approved aircraft leasing company under subsection (1) is for a period not exceeding 5 years, except that the Minister or an authorised body may extend that period for a further period or periods, each of which must not exceed 5 years.
(4)Approval may be granted under this section between 1 March 2007 and 31 December 2027 (both dates inclusive).
(5)In determining the income of an approved aircraft leasing company from the leasing of any aircraft or aircraft engine —
(a) the allowances under section 19, 19A, 20, 21, 22 or 23 must be taken into account even if no claim for such allowances has been made;
(b) the allowances under section 19, 19A, 20, 21, 22 or 23 in respect of finance leasing in any year of assessment must be deducted against the income from such leasing for that year of assessment, and any balance of the allowances is not, subject to paragraph (c), available as a deduction against any other income or available for transfer under section 37B;
(c) where the approved aircraft leasing company ceases to derive income from finance leasing in the basis period for any year of assessment, any balance of the allowances in respect of finance leasing after the deduction against the income from such leasing is available as a deduction against any other income for that year of assessment and for any subsequent year of assessment in accordance with section 23; and
(d) the Comptroller must determine the manner and extent to which —
(i) allowances under section 19, 19A, 20, 21, 22 or 23 and any expenses and donations allowable under this Act are to be deducted; and
(ii) any loss may be deducted under section 37.
(6)Subsection (5) applies, with the necessary modifications, in determining the income of an approved aircraft leasing company from any activity prescribed by regulations made under subsection (1) as if such income were income from operating leasing.
(7)In this section —
“aircraft leasing company” means a company incorporated and resident in Singapore or a registered business trust, carrying on a business of leasing aircraft or aircraft engines;
“finance leasing”, in relation to any aircraft or aircraft engine, means a lease of the aircraft or aircraft engine (including any arrangement or agreement in connection with the lease) which has the effect of transferring substantially the obsolescence, risks or rewards incidental to ownership of such aircraft or aircraft engine to the lessee;
“leasing of any aircraft or aircraft engine” means the leasing of any aircraft or aircraft engine, other than one which has been treated as though it had been sold pursuant to regulations made under section 10C(1);
“operating leasing”, in relation to any aircraft or aircraft engine, means the leasing of the aircraft or aircraft engine, other than finance leasing.
[43Y
Concessionary rate of tax for aircraft investment manager
43O.—(1)Despite section 43, the Minister may by regulations provide that tax at the rate of 10% is to be levied and paid for each year of assessment upon such income as the Minister may specify of an approved aircraft investment manager derived by it on or after 1 March 2007 from —
(a) managing an approved aircraft leasing company; or
(b) such other services or activities carried out for an approved aircraft leasing company as may be prescribed by regulations.
(2)Regulations made under subsection (1) may provide for the deduction of losses otherwise than in accordance with section 37(3).
(3)The Minister or an authorised body may, subject to such conditions as the Minister or authorised body may impose, approve an aircraft investment manager as an approved aircraft investment manager for the purposes of this section.
(4)Approval may be granted under this section between 1 March 2007 and 31 December 2027 (both dates inclusive).
(5)In this section —
“aircraft investment manager” means any company incorporated in Singapore;
“aircraft leasing company” has the meaning given by section 43N;
“approved” means approved by the Minister or an authorised body.
Concessionary rate of tax for container investment enterprise
43P.—(1)Despite section 43 but subject to subsection (5), tax at the rate of 5% or 10% as the Minister or an authorised body may specify, is to be levied and paid for each year of assessment upon the income of an approved container investment enterprise accruing in or derived from Singapore from —
(a) the leasing of any container owned by the enterprise acquired before or during the period of approval of the enterprise mentioned in subsection (4) and used for the international transportation of goods;
(b) foreign exchange and risk management activities which are carried out in connection with and incidental to the leasing mentioned in paragraph (a);
(c) for the year of assessment 2013 and subsequent years of assessment, the leasing of any intermodal equipment owned by the enterprise acquired before or during the period of approval of the enterprise mentioned in subsection (4), which is incidental to the leasing mentioned in paragraph (a);
(d) for the year of assessment 2013 and subsequent years of assessment, foreign exchange and risk management activities which are carried out in connection with and incidental to the leasing mentioned in paragraph (c);
(e) the leasing of any container used for international transportation of goods, if the container was —
(i) acquired by an approved related party before or during the period of the approval of the related party under subsection (4); and
(ii) leased by the approved related party to the approved container investment enterprise;
(f) the leasing of any intermodal equipment that is incidental to the lease mentioned in paragraph (e), if the intermodal equipment was —
(i) acquired by an approved related party before or during the period of the approval of the related party under subsection (4); and
(ii) leased by the approved related party to the approved container investment enterprise; and
(g) foreign exchange and risk management activities that are carried out in connection with and incidental to the leases mentioned in paragraphs (e) and (f).
(1A)Subsection (1)(e), (f) and (g) only applies to income derived on or after 12 December 2018.
(2)Subsection (1)(a), (b), (c) or (d) continues to apply to a container investment enterprise the approval of which has expired or been withdrawn, but which continues to derive income of the type mentioned in that provision in relation to a container or an intermodal equipment acquired before or during the period of approval of the enterprise, provided that the enterprise has by the date of the expiry or before the withdrawal of its approval fulfilled all the conditions mentioned in subsection (4), and any reference in this section to an approved container investment enterprise is to be construed accordingly.
(2A)Subsection (1)(e), (f) or (g) continues to apply to a container investment enterprise the approval of which has expired or been withdrawn, but that continues to derive income of the type mentioned in that provision if both the container investment enterprise and the approved related party have by the date of the expiry or before the withdrawal, fulfilled all the conditions of their respective approvals under subsection (4).
(2B)For the purpose of subsection (2A), the container investment enterprise is treated under this section as an approved container investment enterprise.
(2C)Subsection (1)(a), (c), (e) and (f) does not apply to income derived on or after 12 December 2018 from the leasing of a container or intermodal equipment that is acquired by the approved container investment enterprise or the approved related party by way of a finance lease entered into with an entity that is not an approved related party.
(3)The Minister or an authorised body may, at any time between 1 April 2008 and 31 December 2026 (both dates inclusive), approve a container investment enterprise or a related party of an approved container investment enterprise for the purposes of subsection (1).
(4)The approval under subsection (3) is subject to such conditions as the Minister may specify, and must —
(a) where the approval is granted during the period between 1 April 2008 and 28 February 2011 (both dates inclusive), be for such period not exceeding 10 years, as the Minister may specify; and
(b) where the approval is granted during the period between 1 March 2011 and 31 December 2026 (both dates inclusive), be for such period not exceeding 5 years, as the Minister may specify,
except that the Minister may extend the period so specified for such further periods as the Minister thinks fit.
(4A)A reference to the Minister in subsection (4), in the case of an approval granted on or after the date of commencement of section 38(1)(a) of the Income Tax (Amendment) Act 2021, includes the authorised body.
(5)The Minister or an authorised body may, in respect of any container, class of containers, intermodal equipment or class of intermodal equipment, specify a period not exceeding a period of 15 years, during which the income from the leasing of such container, class of containers, intermodal equipment or class of intermodal equipment is subject to the applicable concessionary tax rate under subsection (1).
(6)In determining the income of an approved container investment enterprise from the leasing of any container or intermodal equipment —
(a) the allowances under section 19, 19A, 20, 21, 22 or 23 (other than allowances made to the lessee under regulations made under section 10C) must be taken into account even if no claim for such allowances has been made;
(b) the allowances under section 19, 19A, 20, 21, 22 or 23 (other than allowances made to the lessee under regulations made under section 10C) in respect of finance leasing in any year of assessment must be deducted against the income from such leasing for that year of assessment, and any balance of the allowances is not, subject to paragraph (c), available as a deduction against any other income or available for transfer under section 37B;
(c) where the approved container investment enterprise ceases to derive income from finance leasing in the basis period for any year of assessment, any balance of the allowances in respect of finance leasing after the deduction against the income from such leasing is available as a deduction against any other income for that year of assessment and for any subsequent year of assessment in accordance with section 23; and
(d) the Comptroller must determine the manner and extent to which —
(i) allowances under section 19, 19A, 20, 21, 22 or 23 and any expenses and donations allowable under this Act are to be deducted; and
(ii) any loss may be deducted under section 37.
(7)In this section —
“approved” means approved by the Minister or an authorised body;
“container” means a sea‑container used for the international transportation of goods and that adheres to the standards defined by the Institute of International Container Lessors or the International Organization for Standardization for such sea‑container, or (for the year of assessment 2013 and subsequent years of assessment) by any of those organisations or any other equivalent organisation for such sea‑container;
“container investment enterprise” means —
(a) a company incorporated and resident in Singapore; or
(b) a registered business trust;
“finance leasing”, in relation to any container or intermodal equipment, means a lease of the container or intermodal equipment (including any arrangement or agreement in connection with the lease) which has the effect of transferring substantially the obsolescence, risks or rewards incidental to ownership of such container or intermodal equipment to the lessee;
“intermodal equipment” means any trailer, flatcar, car rack or other equipment, which facilitates the transportation of containers from one mode of transport to another;
“registered business trust” has the meaning given by the Business Trusts Act 2004;
“related party”, in relation to an approved container investment enterprise, means —
(a) any entity that is related to the approved container investment enterprise in such manner as may be prescribed by rules made under section 7; or
(b) any other entity that is approved by the Minister or authorised body in any particular case to be a related party of the approved container investment enterprise.
(8)Rules made for the purpose of the definition of “related party” in subsection (7) may be made to take effect from (and including) 12 December 2018.
[43ZA
Concessionary rate of tax for container investment manager
43Q.—(1)Despite section 43, the Minister may by regulations provide that tax at the rate of 10% is to be levied and paid for each year of assessment upon such income as the Minister may specify of an approved container investment manager derived by it on or after 1 April 2008 from —
(a) managing an approved container investment enterprise; or
(b) such other services or activities carried out for an approved container investment enterprise as may be prescribed.
(2)Regulations made under subsection (1) may provide for the deduction of losses otherwise than in accordance with section 37(3).
(3)The Minister or an authorised body may, subject to such conditions as the Minister or authorised body may impose, approve a container investment manager as an approved container investment manager for the purposes of this section.
(4)Approval of a container investment manager under this section may be granted between 1 April 2008 and 28 February 2011 (both dates inclusive).
(4A)Approval of a container investment manager under this section may be granted between 1 March 2011 and 31 December 2026 (both dates inclusive) for such period not exceeding 5 years as the Minister or authorised body may specify, except that the Minister or authorised body may extend the period so specified for such further periods as the Minister or authorised body thinks fit.
(5)In this section —
“approved” means approved by the Minister or an authorised body;
“container investment enterprise” has the meaning given by section 43P;
“container investment manager” means any company incorporated in Singapore.
Concessionary rate of tax for approved insurance brokers
43R.—(1)Despite section 43, the Minister may by regulations provide that tax at the rate of 10% is to be levied and paid for each year of assessment upon such income of an approved insurance broker as the Minister may specify that is derived by it on or after a prescribed date from the provision of such direct insurance broking, reinsurance broking or advisory services relating to the insurance sector as may be prescribed.
(2)Regulations made under subsection (1) may provide for the deduction of losses otherwise than in accordance with section 37(3).
(3)The Minister or an authorised body may, subject to such conditions as the Minister or authorised body may impose, approve a company that is a direct insurance broker, general reinsurance broker or life reinsurance broker, as an approved insurance broker for the purposes of this section.
(4)Approval may be granted under this section between 1 April 2008 and 31 December 2028 (both dates inclusive).
(5)In this section, “direct insurance broker”, “general reinsurance broker” and “life reinsurance broker” have the meanings given by section 2 of the Insurance Act 1966.
[43ZC
Concessionary rate of tax for income derived from managing qualifying registered business trust or company
43S.—(1)Despite section 43, the Minister may by regulations provide that tax at the rate of 10% is to be levied and paid for each year of assessment upon such income as the Minister may specify derived on or after 1 April 2008 —
(a) by an approved trustee‑manager of a qualifying registered business trust from providing services in such capacity in respect of such infrastructure asset or project situated outside Singapore as may be prescribed by regulations (called in this section a prescribed offshore infrastructure asset or project); and
(b) by an approved fund management company from —
(i) managing a qualifying company in respect of any prescribed offshore infrastructure asset or project; or
(ii) arranging, on behalf of a qualifying company, any loan of designated securities under a securities lending arrangement in writing to another qualifying company.
(2)Regulations made under subsection (1) may provide for the deduction of losses otherwise than in accordance with section 37(3).
(3)For the purposes of this section, the Minister or an authorised body may, subject to such conditions as the Minister or authorised body may impose —
(a) approve a trustee‑manager of a qualifying registered business trust as an approved trustee‑manager; or
(b) approve a fund management company as an approved fund management company.
(4)Approval may be granted under this section between 1 April 2008 and 31 December 2022 (both dates inclusive).
(5)In this section —
“designated securities” means —
(a) stocks, shares, bonds or other securities, denominated in any foreign currency, issued by a company which is neither incorporated in Singapore nor resident in Singapore; or
(b) bonds denominated in any foreign currency issued by any foreign government;
“fund management company” means any company incorporated in Singapore;
“qualifying company”, in relation to an approved fund management company, means any company incorporated in Singapore which —
(a) is listed or to be listed on any exchange in Singapore within one year from the date the approved fund management company is so approved; and
(b) owns any offshore infrastructure asset or any asset used in an offshore infrastructure project, or debt securities or shares of any company that owns any offshore infrastructure asset or any asset used in an offshore infrastructure project;
“qualifying registered business trust”, in relation to an approved trustee‑manager, means any registered business trust which —
(a) is listed or to be listed on any exchange in Singapore within one year from the date the approved trustee‑manager is so approved; and
(b) owns any offshore infrastructure asset or any asset used in an offshore infrastructure project, or debt securities or shares of any company that owns any offshore infrastructure asset or any asset used in an offshore infrastructure project;
“registered business trust” and “trustee‑manager” have the meanings given by the Business Trusts Act 2004.
[43ZD
Concessionary rate of tax for ship broking and forward freight agreement trading
43T.—(1)Despite section 43, tax at the rate of 10% is to be levied and paid for each year of assessment upon such amount of —
(a) fees or commissions derived in the period between 1 April 2010 and 31 May 2011 (both dates inclusive) by an approved company from ship broking; and
(b) gains derived in the period between 1 April 2010 and 31 May 2011 (both dates inclusive) by an approved company from forward freight agreement trading,
which in the aggregate are in excess of the base amount.
(2)Approval may be granted under this section between 1 April 2010 and 31 May 2011 (both dates inclusive) to a company for a period of 5 years, subject to such conditions as the Minister may impose.
(3)The base amount mentioned in subsection (1) is —
(a) where the approved company had carried out the ship broking or forward freight agreement trading or both (called in this paragraph such activity) in Singapore at any time during the period of 3 years immediately preceding the date on which approval is granted under this section, the amount ascertained by dividing the net profit before tax as shown in the audited accounts of the approved company that is derived from carrying out such activity during that period by the actual number of months in that period in which such activity was carried out and multiplying by 12;
(b) where the approved company had not carried out the ship broking or forward freight agreement trading in Singapore, at any time during the period of 3 years immediately preceding the date on which approval is granted under this section, zero; or
(c) such amount as the Minister may specify in substitution for the amount mentioned in paragraph (a) or (b).
(4)In determining the income of an approved company from the carrying out of ship broking or forward freight agreement trading or both in Singapore —
(a) the allowances under section 19, 19A, 20, 21, 22 or 23 must be taken into account even if no claim for such allowances has been made; and
(b) the Comptroller must determine the manner and extent to which —
(i) allowances under section 19, 19A, 20, 21, 22 or 23 and any expenses and donations allowable under this Act are to be deducted; and
(ii) any loss may be deducted under section 37.
(5)In this section —
“approved company” means a company which —
(a) is incorporated and resident in Singapore;
(b) carries on the business of ship broking or forward freight agreement trading or both in Singapore; and
(c) is approved by the Minister, or such person as the Minister may appoint, for the purpose of this section;
“forward freight agreement trading” means the undertaking of a position under a forward freight agreement trade where such trade is in connection with shipping freight rates;
“ship broking” means —
(a) the broking of sale and purchase of vessels (including the activity of valuing the vessels);
(b) the matching of vessel owners (which intend to build new vessels) to shipyards based on the vessel owners’ requirements;
(c) the matching of vessels to —
(i) cargoes; or
(ii) vessel owners and vessel charterers;
(d) the valuation of vessels; or
(e) the matching of forward freight agreement traders where the forward freight agreement trade is in connection with shipping freight rates,
and includes the provision of research, consultancy or advisory services using information derived from the business of carrying on any of the activities referred to in paragraphs (a) to (e), where the total sum of the fees (called in this definition the said sum) derived by the approved company from the research, consultancy and advisory services in the basis period for the year of assessment concerned is not more than 20% of the sum of —
(f) the total fees and commissions derived by the approved company from all of the activities referred to in paragraphs (a) to (e) in the basis period for that year of assessment; and
(g) the said sum,
unless the Minister otherwise allows.
Concessionary rate of tax for shipping‑related support services
43U.—(1)Despite section 43, tax at the rate of 10% is to be levied and paid for each year of assessment upon the amount of income in subsection (1A) of an approved company derived on or after the service approval date and during the period of its approval under subsection (2) (but not any extended period of its approval under subsection (5A)), from providing in or from Singapore any shipping‑related support service approved for it under subsection (2A).
(1A)In subsection (1), the amount of the income is that which exceeds the base amount calculated in accordance with subsection (4).
(2)Approval may be granted under this section between 1 June 2011 and 31 December 2026 (both dates inclusive) to a company for a period of 5 years; and may be given subject to such conditions as the Minister or authorised body may impose.
(2A)The Minister or authorised body must approve for the company one or more shipping‑related support services for the purposes of subsection (1) at the time of granting the approval, and may approve for the company additional shipping‑related support services during the period it is approved.
(3)A company that is deemed an approved company on 1 June 2011 by virtue of regulations made under subsection (7), is deemed to have been approved for such period not exceeding 10 years from that date as the Minister may specify in the regulations.
(4)The base amount mentioned in subsection (1A) or (5E) is calculated in accordance with the following provisions:
(a) where the approved company had provided one or more of the shipping‑related support services approved for it at any time during the period of 3 years immediately before the date of its approval, the base amount is ascertained by dividing the aggregate net profit before tax as shown in its audited accounts (or such other accounts as the Minister or authorised body may approve for the company) that is derived from providing all of those services during that period by the actual number of months (a period of less than a month being reckoned as one month) during that period in which those services were provided and multiplying by 12;
(b) where the company had not provided any of the shipping‑related support services approved for it at any time during the period of 3 years immediately before the date of its approval, the base amount is zero; or
(c) such amount as the Minister may specify in substitution for the amount mentioned in paragraph (a) or (b).
(5)The base amount determined in accordance with subsection (4) applies to the approved company for the entire duration of the period of its approval (but not any extended period of its approval under subsection (5A)), unless the Minister otherwise decides.
(5A)The Minister or authorised body may extend the period of any approval under subsection (2) for further periods of 5 years at any one time, and the extension is subject to the company satisfying such conditions as the Minister or authorised body has imposed on it at the time of granting the extension.
(5B)The Minister or authorised body must approve for the company one or more shipping‑related support services for the purposes of subsection (5C) or (5CA) at the time of granting the extension, and may approve for the company additional shipping‑related support services during any extended period of its approval.
(5C)Despite section 43, where an approved company whose period of approval is extended under subsection (5A) did not make an election under subsection (5F) for the extended period, then tax at the rate of A% is levied and must be paid for each year of assessment upon the amount of its income in subsection (5D) that is derived on or after the service approval date and during the extended period, from providing in or from Singapore any shipping‑related support service approved for it under subsection (5B).
(5CA)Despite section 43, where an approved company whose period of approval is extended under subsection (5A) made an election under subsection (5F) for the extended period, then tax at the rate of (0.5 + A)% is levied and must be paid for each year of assessment upon the amount of its income in subsection (5E) that is derived on or after the service approval date and during the extended period, from providing in or from Singapore any shipping‑related support service approved for it under subsection (5B).
(5CB)In subsections (5C) and (5CA), “A” is the concessionary rate of tax applicable to the income of the approved company from providing in or from Singapore any shipping‑related support service approved for it under subsection (2A) or (5B) (as the case may be) immediately before the commencement of the extended period concerned of its approval under subsection (5A).
(5D)In subsection (5C), the amount of the income is that which exceeds the base amount calculated in accordance with subsection (5I).
(5E)In subsection (5CA), the amount of the income is that which exceeds the base amount immediately before the commencement of the extended period concerned of its approval under subsection (5A), which is calculated in accordance with subsection (4) or (5I), as the case may be.
(5F)An approved company whose period of approval is extended under subsection (5A) may make an election for an amount of its income mentioned in subsection (5CA) that is derived on or after the service approval date and during the extended period, from providing in or from Singapore any shipping‑related support service approved for it under subsection (5B), to be taxed in accordance with subsection (5CA).
(5G)An election under subsection (5F) must be made in such form and manner and within such reasonable time as the Minister or authorised body may allow, and must be accompanied by such particulars as the Minister or authorised body determines.
(5H)An election under subsection (5F) is irrevocable for the extended period of its approval in which the election is made.
(5I)The base amount mentioned in subsection (5D) or (5E) is determined as follows:
(a) where the approved company had provided one or more of the shipping‑related support services approved for it under subsection (5B) at any time during the period of 3 years immediately before the date the extension is granted under subsection (5A), the base amount is ascertained by the formula
where A
is the total net profit before tax as shown in the company’s audited accounts (or such other accounts as the Minister or authorised body may approve for the company) that is derived from providing all of those services during that period of 3 years; and
B
is the actual number of months (a period of less than a month being reckoned as one month) during that period in which those services were provided;
(b) where the company had not provided any of the shipping‑related support services approved for it under subsection (5B) at any time during the period mentioned in paragraph (a), the base amount is zero;
(c) the Minister may in a particular case specify an amount in substitution for the amount mentioned in paragraph (a) or (b).
(5J)The base amount determined in accordance with subsection (5I) applies to the approved company for the entire duration of the extended period concerned of its approval under subsection (5A), unless the Minister otherwise decides.
(6)In determining the income of an approved company from the provision of shipping‑related support services approved for it —
(a) the allowances under section 19, 19A, 20, 21, 22 or 23 must be taken into account even if no claim for such allowances has been made; and
(b) the Comptroller must determine the manner and extent to which —
(i) allowances under section 19, 19A, 20, 21, 22 or 23 and any expenses and donations allowable under this Act are to be deducted; and
(ii) any loss may be deducted under section 37.
(7)For the purposes of this section, the Minister may make regulations —
(a) to deem a company which, immediately before 1 June 2011, was —
(i) a development and expansion company within the meaning of section 20 of the Economic Expansion Incentives (Relief from Income Tax) Act 1967 engaged in ship management services, ship agency, logistics or freight forwarding, being activities prescribed as qualifying activities within the meaning of that section, and which, in the case of a company engaged in logistics or freight forwarding, is a company —
(A) whose operations are or can be controlled, directly or indirectly, by another company, being one that owns or operates ships;
(B) which controls or can control, directly or indirectly, the operations of such other company; or
(C) whose operations are or can be controlled, directly or indirectly, by a person or persons who control or can control, directly or indirectly, the operations of such other company; or
(ii) an approved company under section 43T,
as an approved company for the purpose of this section from that date;
(b) to provide for such transitional, supplementary and consequential matters as the Minister may consider necessary or expedient in relation to a company mentioned in paragraph (a), including providing a different base amount for the purposes of subsection (1); and
(c) generally to give effect to or to carry out the purposes of this section.
(8)In this section —
“approved” means approved by the Minister or an authorised body;
“approved company” means a company which —
(a) is incorporated and resident in Singapore;
(b) carries on the business of providing shipping‑related support services; and
(c) is approved for the purpose of this section;
“approved related company”, in relation to an approved company, means a related company approved at any time for the approved company for the purpose of the definition of “corporate service”;
“container” has the meaning given by section 43P(7);
“corporate service” means any of the following services provided by an approved company to an approved related company:
(a) sourcing, procurement and distribution of materials and components, products or services for use in the business of the approved related company (excluding marketing control, planning and brand management);
(b) training of crew and staff;
(c) crew management (such as recruitment and selection of qualified and trained seafarers, budgeting and strategic planning in relation to crew requirements, overseeing crew welfare, managing relations with labour unions, handling insurance matters relating to crew, and maintaining personnel data to facilitate searches, planning and analysis);
(d) business planning, development and co‑ordination (including the performance of economic or investment research and analysis) of information and processes to improve standards of services or products;
(e)
(f) general management and administration (such as risk management, internal audit, budgeting and forecasting, but excluding intellectual property management);
(g) technical support services (such as marine and offshore engineering technical support, accounting and tax consultancy services and actuary services);
(h) human resource services;
(i) financial and treasury services (such as providing credit administration and control, arranging credit facilities, managing funds, and providing guarantees, performance bonds, standby letters of credit and services relating to remittances, arranging interest and currency swaps);
(j) legal services;
(k) corporate finance advisory services;
(l) information technology support services,
and only services provided to an approved related company of that company are treated as “corporate service” in determining if the approved company has provided shipping‑related support service which is corporate service for the purposes of subsections (4) and (5I);
“finance leasing” has the meaning given by section 13P(20) or 43P(7);
“forward freight agreement trading” means the undertaking of a position under a forward freight agreement trade where such trade is in connection with shipping freight rates;
“freight forwarding and logistics service” means managing a customer’s freight, supply chain or logistics process flow;
“prescribed ship management services” has the meaning given by section 13A(16);
“related company”, in relation to an approved company, means a company that is carrying on a shipping‑related business and —
(a) whose operations are or can be controlled, directly or indirectly, by the approved company;
(b) which controls or can control, directly or indirectly, the operations of the approved company; or
(c) whose operations are or can be controlled, directly or indirectly, by a person or persons who control or can control, directly or indirectly, the operations of the approved company;
“service approval date”, in relation to any shipping‑related support service approved for an approved company under subsection (2A) or (5B), means the date the service is approved for that company under that subsection or, in the case of corporate service to be provided by the company to its approved related company, the date the related company is approved as such;
“ship” has the meaning given by section 2(1) of the Merchant Shipping Act 1995;
“ship agency” means the activities performed on behalf of a shipping enterprise in relation to their vessels, masters and crews, cargoes and customers;
“ship broking” means —
(a) the broking of sale and purchase of vessels (including the activity of valuing the vessels);
(b) the matching of vessel owners (which intend to build new vessels) to shipyards based on the vessel owners’ requirements;
(c) the matching of vessels to —
(i) cargoes; or
(ii) vessel owners and vessel charterers;
(d) the valuation of vessels; or
(e) the matching of forward freight agreement traders where the forward freight agreement trade is in connection with shipping freight rates,
and includes the services mentioned in subsection (9);
“shipping‑related business” means any of the following:
(a) carriage of passengers, mail, livestock or goods by any ship;
(b) charter or finance leasing of any ship to any person;
(c) use of any ship as a dredger, seismic ship or ship used for offshore oil and gas activity;
(d) use of any ship for towing or salvage operations;
(e) leasing (including finance leasing) of any container used for the international transportation of goods;
(f) managing an entity which is in the business of carrying on the charter or leasing (including finance leasing) of containers used for the international transportation of goods, or ships;
(g) ship broking;
(h) forward freight agreement trading;
(i) ship agency;
(j) prescribed ship management services;
(k) freight and logistics services in respect of a ship;
(l) marine insurance;
(m) offshore and marine engineering (including ship repair and conversion, ship building and offshore engineering);
(n) maritime law and arbitration;
(o) shipping finance;
(p) maritime research and development;
(q) use of any ship for offshore renewable energy activity or offshore mineral activity;
“shipping‑related support service” means any of the following:
(a) ship broking;
(b) forward freight agreement trading;
(c) prescribed ship management services;
(d) ship agency;
(e) freight forwarding and logistics service;
(f) corporate service.
(9)In this section, “ship broking” includes —
(a) for the purpose of subsections (1), (2A), (5B), (5C) and (5CA), the provision of research, consultancy or advisory services using information derived from the business of carrying on any of the activities referred to in paragraphs (a) to (e) of the definition of “ship broking” in subsection (8), where the total sum of the fees derived by the approved company from the research, consultancy and advisory services in the basis period for the year of assessment concerned (called in this paragraph the said sum) is not more than 20% of the sum of —
(i) the total fees and commissions derived by the approved company from all of those other activities in the basis period for that year of assessment; and
(ii) the said sum,
or where the Minister otherwise allows such services to be considered “ship broking”; and
(b) for the purpose of subsections (4) and (5I), the provision, within any financial year or part thereof of the approved company that falls within the period of 3 years immediately before the date of its approval, of research, consultancy or advisory services using information derived from the business of carrying on any of the activities referred to in paragraphs (a) to (e) of the definition of “ship broking” in subsection (8), where the total sum of the fees derived by the approved company from the research, consultancy and advisory services in that financial year or part thereof (called in this paragraph the said sum) is not more than 20% of the sum of —
(i) the total fees and commissions derived by the approved company from all of those other activities in that financial year or part thereof; and
(ii) the said sum,
or where the Minister otherwise allows such services to be considered “ship broking”.
(10)For the purposes of the definition of “related company” in subsection (8), a company (called in this subsection the first company) is deemed to be a related company of another company if —
(a) at least 25% of the total number of its issued shares are beneficially owned, directly or indirectly, by the other company;
(b) at least 25% of the total number of the issued shares of the other company are beneficially owned, directly or indirectly, by the first company; or
(c) at least 25% of the total number of issued shares in each of the 2 companies are beneficially owned, directly or indirectly, by a third company.
Concessionary rate of tax for income derived from managing approved venture company
43V.—(1)Despite section 43, tax at the rate of 5% is to be levied and paid for each year of assessment upon the management fees and performance bonus derived by an approved fund management company on or after 1 April 2015 from managing authorised investments of an approved venture company under section 13G.
(2)The Minister or an authorised body may approve a fund management company for the purposes of subsection (1) at any time between 1 April 2015 and 31 December 2025 (both dates inclusive).
(3)The Minister or authorised body may, when granting the approval, impose such conditions on the fund management company as the Minister or authorised body considers appropriate.
(4)The approval under subsection (2) is for a period specified by the Minister or authorised body which must not exceed 10 years, except that the Minister or authorised body may extend the period for further periods not exceeding 5 years at any one time.
(5)Despite subsection (4), an approval granted under subsection (2) on or after 1 April 2020, and any extension of such approval, must each be for a period that does not exceed 5 years.
(6)In determining the amount of income subject to the concessionary rate of tax under subsection (1) —
(a) the allowances under section 19, 19A, 20, 21, 22 or 23 must be taken into account even if no claim for such allowances has been made; and
(b) the Comptroller must determine the manner and extent to which —
(i) allowances under section 19, 19A, 20, 21, 22 or 23 and any expenses and donations allowable under this Act are to be deducted; and
(ii) any loss may be deducted under section 37.
(7)In this section —
“authorised investments” has the meaning given by section 13G(18);
“fund management company” means a company incorporated in Singapore that is a fund manager.
[43ZG
Concessionary rate of tax for international growth company
43W.—(1)Despite section 43, the Minister may by regulations provide that tax at the rate of 10% is to be levied and paid upon the income derived by an approved international growth company from carrying on all of its qualifying activities within a basis period, or a part of a basis period, that falls within its approval period, which in total exceeds the base amount mentioned in subsection (6).
(2)Subsection (1) does not apply to income from any of the activities mentioned in that subsection that is carried on a date that falls outside of that activity’s concessionary period.
(3)The Minister or such person as the Minister may appoint may, at any time between 1 April 2015 and 31 August 2017 (both dates inclusive), approve a company as an international growth company for a period not exceeding 5 years; and the approval may be given subject to such conditions as the Minister or appointed person may impose.
(4)When granting the approval, the Minister or appointed person must specify for the international growth company —
(a) the date of its approval and its approval period;
(b) one or more qualifying activities; and
(c) a concessionary period for each of those activities.
(5)The Minister or appointed person may at any time during the period the international growth company remains approved specify for it —
(a) one or more additional qualifying activities; and
(b) a concessionary period for each of those activities.
(6)The base amount mentioned in subsection (1) is ascertained in accordance with the following provisions:
(a) where the approved international growth company had, at any time during the period of 3 years immediately before the date of its approval, carried on one or more of the qualifying activities specified for it under subsection (4), the base amount is ascertained by the formula
where A
is the total net profit before tax as shown in its audited accounts (or such other accounts as the Minister or appointed person may approve for the company) that is derived from carrying on the qualifying activity or activities during that period; and
B
is the actual number of months (a period of less than a month being reckoned as one month) during that period in which the qualifying activity or activities was or were carried out;
(b) where the approved international growth company had not carried on any of those qualifying activities during the period of 3 years immediately before the date of its approval, the base amount is zero;
(c) the Minister or appointed person may specify an amount in substitution for the amount mentioned in paragraph (a) or (b).
(7)The base amount determined in accordance with subsection (6) applies for the entire duration of the company’s approval period, unless the Minister or appointed person decides otherwise.
(8)In determining the income of an approved international growth company from carrying on its qualifying activities —
(a) the allowances under section 16, 17, 18, 18B, 18C, 19, 19A, 20, 21, 22 or 23 must be taken into account even if no claim for such allowances has been made; and
(b) the Comptroller must determine the manner and extent to which —
(i) allowances under section 16, 17, 18, 18B, 18C, 19, 19A, 20, 21, 22 or 23 and any expenses and donations allowable under this Act are to be deducted; and
(ii) any loss may be deducted under section 37.
(9)In this section —
“approval period”, in relation to an approved international growth company, means the period of its approval as such a company under subsection (3);
“concessionary period”, in relation to a qualifying activity of an approved international growth company, means the concessionary period specified for that activity under subsection (4) or (5);
“international growth company” means a company incorporated and resident in Singapore which carries on, or which intends to carry on, a trade or business which involves —
(a) the export of goods to a country outside Singapore;
(b) the performance of services in a country outside Singapore; or
(c) the performance of services for a person or permanent establishment outside Singapore,
whether or not it also carries on or intends to carry on any other trade or business;
“qualifying activity”, in relation to an approved international growth company, means an activity specified for the company under subsection (4) or (5), being one of the activities prescribed for the purposes of this section in regulations made under this section.
[43ZH
Concessionary rate of tax for intellectual property income
43X.—(1)Despite section 43 and subject to this section, the concessionary rate of tax under subsection (5) applies for each year of assessment upon a percentage determined in accordance with regulations of qualifying intellectual property income of an approved company, that is derived —
(a) from a qualifying IPR elected by the approved company for that year of assessment under subsections (7) and (8); and
(b) in so much of the basis period for that year of assessment as falls within the tax relief period applicable to the approved company.
(2)The Minister or an authorised body may approve a company as an approved company (subject to such terms and conditions as the Minister or authorised body may specify), but not after 31 December 2028.
(3)The Minister or authorised body may —
(a) specify an initial tax relief period for an approved company that does not exceed 10 years;
(b) specify a commencement date for the initial tax relief period that is not earlier than 1 July 2018; and
(c) extend the tax relief period for a further period or periods, not exceeding 10 years for each period, as the Minister or authorised body may determine.
(4)Where the commencement date for the initial tax relief period is a date before the company becomes an approved company, then for the purposes of subsection (1), the company is treated as an approved company beginning on the commencement date.
(5)For the purpose of subsection (1), the concessionary rate of tax for an approved company is a rate determined in accordance with the formula A + B, where —
(a) A is a base rate of 5% or 10% as the Minister or authorised body may determine; and
(b) B is the sum of every rate increase specified by the Minister or authorised body to the approved company in accordance with subsection (6).
(6)For the purposes of subsection (5)(b), the Minister or authorised body must specify to an approved company, for the 3rd, 4th, 5th and 7th 5-year period of its tax relief period, a rate increase of at least 0.5% that applies to the years of assessment of all the basis periods within each of those 5-year periods.
(7)Subject to subsection (8), an approved company must elect a qualifying IPR to which subsection (1) is to apply for any year of assessment —
(a) in the form and manner determined by the Comptroller; and
(b) at the time the approved company lodges its return of income for that year of assessment, or by such later time as the Comptroller may allow in any particular case.
(8)An election of any qualifying IPR made under subsection (7) for a year of assessment is irrevocable, and the approved company is treated as making an election for the same qualifying IPR for each subsequent year of assessment.
(9)To avoid doubt, subsections (7) and (8) do not prevent an approved company from electing for any year of assessment, any qualifying IPR not already elected or treated as elected under those subsections.
(10)The approved company must, in such circumstances as the Comptroller may determine and in such form and manner as the Comptroller may require, provide the Comptroller with such information and documents as the Comptroller may require for the purposes of determining the applicability of subsection (1) in a particular case.
(11)The Minister may make regulations to provide for any of the following:
(a) the determination of the percentage of qualifying intellectual property income of an approved company for the purposes of subsection (1);
(b) the intellectual property income that is qualifying intellectual property income for this section;
(c) the deduction (otherwise than in accordance with this Act), from the qualifying intellectual property income of an approved company, of —
(i) allowances attributable to the income; and
(ii) expenses, losses and donations allowable under this Act,
including deduction of these allowances, expenses, losses and donations in such manner and to such extent as the Comptroller may determine;
(d) the circumstances under which a prescribed amount of qualifying intellectual property income that has been assessed to tax at the concessionary rate in subsection (1) may be deemed as income chargeable to tax at the rate of tax in section 43(1)(a) for a specified year of assessment;
(da) the circumstances under which a prescribed amount of expenses, allowances or donations deducted from qualifying intellectual property income of an approved company may be deemed as a loss;
(db) the treatment of the loss mentioned in paragraph (da), including disregarding any part of it, or making available any part of it for —
(i) deduction against any income subject to tax at the rate specified in section 43(1)(a) for a specified year of assessment in accordance with this Act;
(ii) deduction against any income for any preceding or subsequent year of assessment in accordance with this Act; and
(iii) transfer under section 37B;
(dc) the application of the provisions of this Act for the purpose of the deductions and transfer in paragraph (db) with such modifications as may be prescribed;
(e) the records to be kept by an approved company;
(f) generally to give effect to or carry out the purposes of this section.
(12)To avoid doubt, any regulations made under subsection (11)(e) do not affect the generality of section 67.
(13)In this section —
“qualifying intellectual property income” means any intellectual property income prescribed by the Minister in regulations made under this section;
“qualifying intellectual property right” or “qualifying IPR” means any intellectual property right prescribed by the Minister in regulations made under this section.
[43ZI
PART 12
DEDUCTION OF TAX AT SOURCE
44.
44A.
Withholding of tax in respect of interest paid to non‑resident persons
45.—(1)Where a person is liable to pay to another person not known to the firstmentioned person to be resident in Singapore any interest which is chargeable to tax under this Act, the firstmentioned person must —
(a) deduct therefrom tax —
(i) where the person to be paid is an individual or a Hindu joint family, at the rate of 24%;
(ii) where the person to be paid is any other person, at the rate of 17%; or
(iii) where section 43(3) or (3A) is applicable to the person to be paid, at the rate specified in that provision,
on every dollar of the interest; and
(b) immediately give notice of the deduction of tax and pay to the Comptroller the amount so deducted,
and every such amount deducted is a debt due from the firstmentioned person to the Government and is recoverable in the manner provided by section 89.
(1A)Despite subsection (1), tax must be deducted at the rate of 18% on every payment (other than payment subject to tax at the rate specified in section 43(3) or (3A)) made on or after 1 January 2009 which would be assessable on the person receiving the payment for the year of assessment 2009.
(1B)The notice under subsection (1)(b) must be given using the electronic service, except that the Comptroller may in any particular case or class of cases permit the notice to be given in any other manner.
(1C)The Minister may, by rules made under section 7, substitute the rate in subsection (1)(a)(i), (ii) or (iii) with a higher or lower rate (including 0%) for any person or class of persons that is or are subject to that subsection, and subsection (1) applies to that person or class of persons accordingly.
(1D)The rules mentioned in subsection (1C) may —
(a) provide that the substitute rate applies only if such conditions as may be specified in the rules are satisfied; and
(b) prescribe different substitute rates for different persons or classes of persons.
(2)The Comptroller may —
(a) if he or she thinks fit, allow any person or class of persons to give notice of the deduction of tax and make payment of the amount so deducted within such other period and subject to such conditions as the Comptroller may determine; and
(b) by written notice require any person who pays such interest to deduct and account for tax at a higher or lower rate than the rate in subsection (1)(a)(i), (ii) or (iii), or the rate prescribed by rules mentioned in subsection (1C) in substitution for that rate (as the case may be) on every dollar of such interest or permit such interest to be paid without deduction of tax.
(3)Where a person fails to make a deduction of tax which the person is required to make under subsection (1), any amount which the person fails to deduct is a debt due from the person to the Government and is recoverable as such.
(4)If the amount of tax which is required to be deducted under subsection (1) is not paid to the Comptroller —
(a) by the 15th day of the second month following the month in which the interest from which the tax is to be deducted is paid, or such other date as may be allowed under subsection (2)(a), a sum equal to 5% of such amount of tax is payable; and
(b) within 30 days after the time specified in paragraph (a), an additional penalty of 1% of such amount of tax is payable for each completed month that the tax remains unpaid, but the total additional penalty under this paragraph must not exceed 15% of the amount of tax outstanding.
(5)Without affecting any other provision of this Act, if any person after deducting any tax under subsection (1) fails to give notice of such deduction to the Comptroller in the manner referred to in subsection (1B) and by the time specified in subsection (4)(a), the person shall be guilty of an offence and shall on conviction pay a penalty equal to 3 times the amount of tax so deducted and shall also be liable to a fine not exceeding $10,000 or to imprisonment for a term not exceeding 3 years or to both.
(6)Where an individual has been convicted for 3 or more offences under this section, the imprisonment the individual shall be liable to shall be not less than 6 months.
(7)The Comptroller may —
(a) compound an offence under subsection (5) and may before judgment stay or compound any proceedings thereunder; and
(b) for any good cause remit the whole or any part of the penalty payable under subsection (4).
(8)For the purposes of this section —
(a) the manager or principal officer of a company is answerable for doing all such acts, matters and things as are required to be done by the company under this section; and
(b) interest is deemed to have been paid by a person to another person although it is not actually paid over to the other person but is reinvested, accumulated, capitalised, carried to any reserve or credited to any account however designated, or otherwise dealt with on behalf of the other person.
(9)This section does not apply to —
(a) any interest derived from any qualifying debt securities issued during the period from 27 February 1999 to 31 December 2028 (both dates inclusive), subject to such conditions as the Minister may impose;
(b) any interest derived from any qualifying project debt securities issued during the period from 1 November 2006 to 31 December 2025 (both dates inclusive), subject to such conditions as the Minister may impose;
(c) any interest liable to be paid on or after 21 February 2014 by a person to a branch in Singapore of a company incorporated outside Singapore and not known to the person to be resident in Singapore.
(10)In this section, “qualifying debt securities” and “qualifying project debt securities” have the meanings given by section 13(16).
(11)To avoid doubt, in this section, “interest” includes the part of any payment liable to be made by a lessee to a lessor under a finance lease of any machinery or plant treated as sold by the lessor to the lessee pursuant to regulations made under section 10C(1), that is income of the lessor under section 10C(2A).
Application of section 45 to royalties, management fees, etc.
45A.—(1)Section 45(1) to (8) applies in relation to the payment of any income referred to in section 12(6) or (7) by any person to another person not known to the firstmentioned person to be resident in Singapore as those provisions apply to any interest paid by a person (X) to another person (Y) not known to X to be resident in Singapore and, for the purpose of such application, any reference in those provisions to interest is a reference to the income referred to in section 12(6) or (7).
(2)Subject to such conditions as the Minister may impose, subsection (1) does not apply to any discount from any qualifying debt securities issued during the period from 17 February 2006 to 31 December 2028 (both dates inclusive).
(2A)Subsection (1) does not apply to any amount payable from any Islamic debt securities which are qualifying debt securities, and issued during the period from 1 January 2005 to 31 December 2028 (both dates inclusive), subject to such conditions as the Minister may impose.
(2B)Subject to such conditions as the Minister may impose, subsection (1) does not apply to —
(a) any early redemption fee or redemption premium from any qualifying debt securities issued during the period from 15 February 2007 to 31 December 2028 (both dates inclusive); or
(b) any discount, early redemption fee or redemption premium from any qualifying project debt securities issued during the period from 15 February 2007 to 31 December 2025 (both dates inclusive).
(2C)Subject to such conditions as the Minister may impose, subsection (1) does not apply to —
(a) such other income directly attributable to any qualifying debt securities issued on or after a prescribed date, as may be prescribed by regulations; or
(b) such other income directly attributable to any qualifying project debt securities issued on or after a prescribed date, as may be prescribed by regulations.
(2D)Subsection (1) does not apply to any payment liable to be made on or after 17 February 2012 under any agreement or arrangement for the charter of any ship.
(2DA)To avoid doubt, the reference to a charter of a ship in subsection (2D) excludes a finance lease of the ship.
(2E)Subsection (1) does not apply to any payment liable to be made on or after 21 February 2014 by a person to a branch in Singapore of a company incorporated outside Singapore and not known to the person to be resident in Singapore.
(3)In this section —
“early redemption fee”, “qualifying debt securities”, “qualifying project debt securities” and “redemption premium” have the meanings given by section 13(16);
“finance lease”, in relation to a ship, means a lease of the ship (including any arrangement or agreement made in connection with the lease) that has the effect of transferring substantially the obsolescence, risks or rewards incidental to ownership of the ship to the lessee;
“Islamic debt securities” has the meaning given by section 43H(4);
“ship” has the meaning given by section 2(1) of the Merchant Shipping Act 1995.
Tax deemed withheld and recoverable from person in breach of condition imposed under section 13(4)
45AA.—(1)Subsection (1A) applies where a notification has been made under section 13(4) to exempt from tax (wholly or in part) payments made by a person to a non‑resident person under section 45 or 45A, and —
(a) the exemption is on the basis that the firstmentioned person or a particular matter is approved by the Minister, an authorised body or a person appointed by the Minister under a section specified in the Fourth Schedule, and the approval is revoked under section 105R after any such payment has been made; or
(b) the firstmentioned person contravenes any condition imposed by the Minister under the notification (whether a condition precedent or a condition subsequent) after any such payment has been made.
(1A)The amount of tax which, but for —
(a) in the case of subsection (1)(a) — the approval of the firstmentioned person or the matter; or
(b) in the case of subsection (1)(b) — the notification,
would have been deductible by the firstmentioned person from that payment —
(c) is deemed to have been deducted from that payment;
(d) is a debt due from the firstmentioned person to the Government; and
(e) is recoverable in the manner provided in section 89.
(2)The amount recoverable under subsection (1A) is payable at the place stated in a notice served by the Comptroller on the person within one month after the service of the notice.
(3)The Comptroller may, in his or her discretion and subject to such conditions (including the imposition of interest) as the Comptroller may impose, extend the time limit within which payment under subsection (2) is to be made.
(4)If the amount recoverable under subsection (1A) is not paid to the Comptroller —
(a) within the period referred to in subsection (2) or such further period as may be allowed under subsection (3), a sum equal to 5% of such amount is payable; and
(b) within 30 days after the time specified in paragraph (a), an additional penalty of 1% of such amount is payable for each completed month that such amount remains unpaid, but the total additional penalty under this paragraph must not exceed 15% of such amount.
(5)The penalty is recoverable in the manner provided in section 89.
(6)The Comptroller may for any good cause remit the whole or any part of the penalty payable under subsection (4).
(7)The Minister may, subject to such conditions as the Minister may determine, remit the whole or any part of the amount recoverable under subsection (1A).
(8)If any condition mentioned in subsection (7) is breached, then the amount remitted is a debt due from the person granted the remission to the Government and is recoverable in the manner provided by section 89; and subsections (2) to (6) apply accordingly.
Application of section 45 to non‑resident director’s remuneration
45B.—(1)Section 45 applies in relation to the payment of any remuneration by a company to any director of the company who is not resident in Singapore as that section applies to any interest paid by a person (X) to another person (Y) not known to X to be resident in Singapore and, for the purpose of such application, any reference in that section to interest is a reference to such remuneration.
(2)For the purposes of this section, the references to interest therein are references to interest which is subject to deduction of tax at the rate of 24% on every dollar of the interest.
Application of section 45 to distribution by unit trust
45C.—(1)Section 45 applies in relation to any distribution made by a unit trust which is deemed to be income under section 10(19), (20) and (21) as that section applies to any interest paid by a person (X) to another person (Y) not known to X to be resident in Singapore and, for the purpose of such application, any reference in that section to interest is a reference to such distribution.
(2)Subsection (1) does not apply to any distribution which is made on or after 28 February 1998 by a designated unit trust referred to in section 35(12).
(3)Subsection (1) does not apply to any distribution made on or after 1 January 2015 by a unit trust to a branch in Singapore of a company incorporated outside Singapore and not known to the trustee of the unit trust to be resident in Singapore.
Application of section 45 to gains from real property transaction
45D.—(1)Where any person whose income arising from the disposal of any real property is chargeable to tax under section 10(1)(a) is a non‑resident person, any designated person must, before paying to the non‑resident person any money which is the whole or part of the consideration for the disposal of the real property, despite any other written law, immediately deduct therefrom tax at the rate of 15% on every dollar of such payment.
(2)Any designated person who has deducted any money under subsection (1) must immediately give notice of the deduction of tax to the Comptroller and must, despite any other written law, pay the amount so deducted to the Comptroller by the 15th day of the second month following the month in which the deduction was made and every such amount is a debt due from the designated person to the Government and is recoverable in the manner provided by section 89.
(2A)The notice under subsection (2) must be given using the electronic service, except that the Comptroller may in any particular case or class of cases permit the notice to be given in any other manner.
(3)Section 45(2) to (8) applies, with the necessary modifications, to any designated person as those provisions apply to any person referred to therein.
(4)For the purpose of payment of any tax due from any income which is chargeable to tax under section 10(1)(a) in respect of any disposal of any real property which is owned by 2 or more persons as joint owners, the designated person deducting the tax must retain such amount as is presumed under subsection (5) to be owned by any non‑resident person and pay over the tax due from such amount to the Comptroller.
(5)It is presumed, until the contrary is proved, that the persons who own any real property as joint owners share the proceeds of disposal of the real property in equal shares.
(5A)This section does not apply to any payment made on or after 1 January 2015 by a designated person to a branch in Singapore of a company incorporated outside Singapore and is a non‑resident person.
(6)In this section —
“designated person”, in relation to any disposal of any real property —
(a) in the case where an advocate and solicitor acts for the buyer of the real property in such disposal, means that advocate and solicitor; and
(b) in any other case, means the buyer of the real property;
“land” includes land of any tenure wherever situated in Singapore, whether or not held apart from the surface, and buildings or parts thereof (whether completed or otherwise and whether divided horizontally, vertically or in any other manner) and tenements and hereditaments, corporeal and incorporeal, and any estate or interest therein;
“non‑resident person” means a person who is not known to be resident in Singapore to the designated person;
“real property”, in relation to a disposal of which the income is chargeable to tax under section 10(1)(a), means any land and any interest, option or other right in or over any land.
Application of section 45 to withdrawals by non‑citizen SRS members, etc.
45E.—(1)Subject to subsections (2) and (2A), section 45 applies in relation to —
(a) any withdrawal made —
(i) under section 10G or after the balance (excluding any life annuity) remaining in the SRS account is deemed withdrawn under section 10G(6) or (7) by an SRS member who is not a citizen of Singapore from his or her SRS account; or
(ii) after the sum standing in the SRS account is deemed withdrawn under section 10G(9) by the legal personal representative of a deceased SRS member who is not a citizen of Singapore from the SRS account,
as that section applies to any interest paid by a person (X) to another person (Y) not known to X to be resident in Singapore and, for the purpose of such application, any reference in that section to interest is a reference to such withdrawal from the SRS account; and
(b) any payment of any penalty under section 10G(2) which is imposed on any SRS member and paid by an SRS operator to the Comptroller as that section applies to any interest paid by a person (X) to another person (Y) not known to X to be resident in Singapore and, for the purposes of such application, any reference in that section to interest payable is a reference to the penalty so payable by the SRS operator to the Comptroller.
(2)For the purpose of subsection (1)(a), where a withdrawal is made —
(a) under section 10G(3) or (8) or after the balance (excluding any life annuity) remaining in the SRS account is deemed withdrawn under section 10G(6) or (7) by an SRS member; or
(b) after the sum standing in the SRS account is deemed withdrawn under section 10G(9),
section 45 applies only in relation to 50% of the amount withdrawn from the SRS account.
(2A)For the purposes of subsection (1)(a), where a withdrawal of all the funds standing in the SRS account of an SRS member is made on the ground in section 10G(3G), section 45 applies only in relation to an amount determined in the following manner:
where A
is the amount of funds withdrawn from the SRS account on that ground;
B
is the total value of the investment that is deducted from the balance in the SRS account (if any) on that ground; and
C
is the amount of the SRS member’s income chargeable to tax under section 10(1)(g) as determined under section 10G(3G).
(2B)In subsection (2A) —
(a) the reference to a deduction of an investment from the balance in an SRS account is to be construed in accordance with section 10G(3F); and
(b) the value of such investment is determined in accordance with the regulations made under section 10G(11).
(3)For the purposes of this section, the amount to be deducted under section 45 in respect of withdrawals from the SRS account of an SRS member —
(a) under subsection (1)(a), is the amount computed based on the rate of 24%; and
(b) under subsection (1)(b), is the total penalty deducted by the SRS operator from the amount so withdrawn from the SRS account.
(4)Subject to subsection (5), this section does not apply to any withdrawal by an SRS member who is not a citizen of Singapore if the amount of withdrawal from the member’s SRS account in any year does not exceed the amount of contribution to the member’s SRS account in that year.
(5)Where a deduction for SRS contributions has been allowed in any year to an SRS member who is not a citizen of Singapore under an assessment made under section 73(1)(b) and within that year the SRS member applies to withdraw an amount up to the amount the SRS member has contributed in that year, the SRS operator must release the amount applied to the SRS member after deducting tax at the rate of 24% on every dollar withdrawn.
(6)To avoid doubt, a reference to a withdrawal from an SRS account in this section is a reference to an actual withdrawal of funds, and excludes a deemed withdrawal of funds under section 10G(3E).
Approval of deduction of investment from SRS account of non‑citizen
45EA.—(1)This section applies to an investment made using funds from an SRS account of an SRS member who is not a citizen of Singapore.
(2)Before approving the deduction of the investment from the balance in the SRS account, an SRS operator must comply with subsection (3), unless the Comptroller has waived such compliance by written notice to the SRS operator.
(3)Subject to subsection (3A), the SRS operator must collect from the SRS member or (if the SRS member is deceased) the SRS member’s legal personal representative tax at the rate of 24% on an amount that is equal to 50% of the total value of the investment to be deducted from the balance in the SRS account.
(3A)If the deduction of the investment from the balance in the SRS account is to be made on the ground in section 10G(3G), the amount on which tax is to be collected under subsection (3) is determined in the following manner:
where A
is the amount of funds to be actually withdrawn from the SRS account on that ground, if any;
B
is the total value of the investment that is to be deducted from the balance in the SRS account; and
C
is the amount of the SRS member’s income chargeable to tax under section 10(1)(g) as determined under section 10G(3G).
(3B)The Minister may, by rules made under section 7, substitute the rate in subsection (3) with a higher or lower rate (including 0%) for any SRS member or class of SRS members that is or are subject to that subsection, and subsection (3) applies to that SRS member or class of SRS members accordingly.
(3C)The rules mentioned in subsection (3B) may —
(a) provide that the substitute rate applies only if such conditions as may be specified in the rules are satisfied; and
(b) prescribe different substitute rates for different SRS members or classes of SRS members.
(4)In subsections (3) and (3A), the value of an investment is reckoned in accordance with the regulations made under section 10G(11).
(5)If the Comptroller has given a written notice to the SRS operator requiring the SRS operator to collect tax at a higher or lower rate than 24% or the rate prescribed by the rules mentioned in subsection (3B) in substitution for it, then the reference to the rate of 24% or the substitute rate is a reference to the higher or lower rate.
(6)The amount of tax collected under subsection (3) is a debt due from the SRS operator to the Government and is recoverable in the manner provided in section 89.
(7)Where an SRS operator fails to collect the tax under subsection (3), the amount not collected is a debt due from the SRS operator to the Government and is recoverable in the manner provided in section 89.
(8)If the amount of tax which is required to be collected under subsection (3) is not paid to the Comptroller —
(a) by the 15th day of the second month following the month in which the date the SRS operator approves the deduction falls or by such later date as the Comptroller may allow, a sum equal to 5% of such amount of tax is payable; and
(b) within 30 days after the time specified in paragraph (a), an additional penalty of 1% of such amount of tax is payable for each completed month that the tax remains unpaid, but the total additional penalty under this paragraph must not exceed 15% of the amount of tax outstanding.
(9)An SRS operator must, after collecting the tax under subsection (3), give written notice of such collection to the Comptroller by the time specified in subsection (8)(a) and in the manner mentioned in subsection (9A), and if the SRS operator fails to do so, the SRS operator shall be guilty of an offence and shall on conviction pay a penalty equal to 3 times the amount of tax so collected and shall also be liable to a fine not exceeding $10,000.
(9A)The notice under subsection (9) must be given using the electronic service, except that the Comptroller may in any particular case or class of cases permit the notice to be given in any other manner.
(10)The Comptroller may —
(a) compound an offence under subsection (9); and
(b) for any good cause remit the whole or any part of the penalty payable under subsection (8).
(11)In this section —
(a) a reference to an SRS operator approving the deduction of an investment from the balance in an SRS account is a reference to the SRS operator approving the deduction of the sums representing the investment from the balance in the SRS account in accordance with the regulations made under section 10G(11); and
(b) a reference to the date of approval by an SRS operator of a deduction of an investment from the balance in an SRS account is a reference to the date the SRS operator approves a deduction of the sums representing the investment from the balance in the SRS account in accordance with those regulations.
Application of section 45 to income from profession or vocation carried on by non‑resident individual, etc.
45F.—(1)Subject to subsections (1A), (2) and (2A), section 45 applies in relation to the payment of any income accruing in or derived from Singapore on or after 3 May 2002 from —
(a) any profession or vocation (other than that derived by any public entertainer as defined in section 40A) by any person to any individual referred to in section 43(4)(a) not known to the person to be resident in Singapore; or
(b) any profession or vocation by any person to any foreign firm referred to in section 43(4)(b),
as section 45 applies to any interest paid by a person (X) to another person (Y) not known to X to be resident in Singapore and, for the purpose of such application, any reference in that section to interest is a reference to such payment.
(1A)Subject to subsections (2) and (2A), section 45 applies in relation to the payment of any income derived from Singapore during the period from 1 April 2023 to 31 December 2027 (both dates inclusive) by any person —
(a) to an individual not known to the person to be resident in Singapore, for acting as an arbitrator;
(b) to a qualifying mediator not known to the person to be resident in Singapore, for providing services of a mediator for a mediation —
(i) that takes place in Singapore; or
(ii) that would have taken place in Singapore but for the settlement of the dispute or withdrawal of the claim in question; or
(c) to an individual not known to the person to be resident in Singapore, for providing the services of a mediator for a qualifying mediation —
(i) that takes place in Singapore; or
(ii) that would have taken place in Singapore but for the settlement of the dispute or withdrawal of the claim in question,
as section 45 applies to any interest paid by a person (X) to another person (Y) not known to X to be resident in Singapore and, for the purpose of such application, any reference in that section to interest is a reference to such payment.
(2)The deduction of tax under section 45 is at the rate of —
(a) 15% for the purpose of subsection (1); and
(b) 10% for the purpose of subsection (1A).
(2A)Where an individual or a foreign firm to which section 43(4) or (4A) applies makes an irrevocable option under section 43(5) to be taxed under section 43(1)(b) on any payment of income accruing in or derived from Singapore by the individual or foreign firm, the application of section 45 by subsections (1), (1A) and (2) is further modified as follows:
(a) the reference to the payment of income to the individual or foreign firm is to such payment after deducting any expenditure that the person making the payment reasonably believes is wholly and exclusively incurred by the individual or foreign firm in the production of that income;
(b) the deduction of tax under section 45 for such payment is at the rate specified in section 43(1)(b).
(3)In this section, “arbitrator”, “qualifying mediation” and “qualifying mediator” have the meanings given by section 43(10).
Application of section 45 to distribution from any real estate investment trust
45G.—(1)Subject to subsections (2) and (3) and such conditions as the Comptroller may impose, section 45 applies in relation to any distribution by a trustee of any real estate investment trust or by a trustee of any approved REIT exchange‑traded fund —
(a) to any person (other than an individual) not known to the trustee to be resident in Singapore to whom section 43(3B), (3C), (3D) or (3E) applies; or
(b) to any other person not known to the trustee to be —
(i) an individual;
(ii) a company incorporated and resident in Singapore;
(iii) a branch in Singapore of a company incorporated outside Singapore that has obtained the Comptroller’s approval for distributions to be made by the trust to it without deduction of tax; or
(iv) a body of persons incorporated or registered in Singapore, including a charity registered under the Charities Act 1994 or established by any written law, a town council, a statutory board, a co‑operative society registered under the Co‑operative Societies Act 1979 or a trade union registered under the Trade Unions Act 1940,
as that section applies to any interest paid by a person (X) to another person (Y) not known to X to be resident in Singapore and, for the purpose of such application, any reference in that section to interest is a reference to such distribution.
(2)For the purpose of subsection (1)(a), the deduction of tax under section 45 is at the rate of 10% on —
(a) every dollar of a distribution by the trustee of the real estate investment trust made during the period from 18 February 2005 to 31 December 2025 (both dates inclusive); and
(b) every dollar of a distribution made by the trustee of the approved REIT exchange‑traded fund made during the period from 1 July 2018 to 31 December 2025 (both dates inclusive).
(3)For the purpose of subsection (1)(b), the deduction of tax under section 45 is at the applicable rate specified under section 43(1) on every dollar of such distribution.
(4)Subsection (1) does not apply to any distribution made by the trustee of the real estate investment trust or the trustee of the approved REIT exchange‑traded fund, where tax has been paid by the trustee on the income from which the distribution is made.
(4A)Subsection (1) does not apply to any distribution made on or after 1 January 2015 by a trustee of a real estate investment trust or a trustee of an approved REIT exchange‑traded fund to a branch in Singapore of a company incorporated outside Singapore and not known to the trustee to be resident in Singapore.
(4B)Subsection (1) does not apply to any distribution made to an organisation that is declared by an order under section 2(1) of the International Organisations (Immunities and Privileges) Act 1948 as an organisation of which the Government and the government or governments of one or more foreign sovereign Powers are members, if that distribution is exempt from tax by reason of that order.
(5)Subsection (1) does not apply to any distribution made during the period from 1 July 2018 to 31 December 2025 (both dates inclusive) by a trustee of a real estate investment trust to a trustee of an approved REIT exchange‑traded fund.
(6)In this section, “approved REIT exchange‑traded fund” and “real estate investment trust” have the meanings given by section 43(10).
Application of section 45 to income derived as public entertainer
45GA.—(1)Subject to subsections (2), (2A) and (2B), section 45 applies in relation to the payment by any person to any public entertainer or the public entertainer’s representative, not known to the person to be resident in Singapore, of any income derived from Singapore as a public entertainer on or after 1 January 2008 as that section applies to any interest paid by a person (X) to another person (Y) not known to X to be resident in Singapore and, for the purpose of such application, any reference in that section to interest is a reference to such payment.
(2)For the purpose of this section and subject to subsection (2A), the deduction of tax under section 45 is at the rate of 15%.
(2A)For the purpose of this section, the deduction of tax under section 45 is at the rate of 10% of such income derived during the period from 22 February 2010 to 31 March 2022 (both dates inclusive).
(2B)The reference in subsection (1) to income is to the amount of the income after deducting any expenditure which the person making the payment reasonably believes is wholly and exclusively incurred by the public entertainer in the production of that income.
(3)In this section, “public entertainer” has the meaning given by section 40A.
Application of section 45 to commission or other payment of licensed international market agent
45H.—(1)Subject to subsection (2), section 45 applies in relation to the payment of any commission or other payment by any person to a licensed international market agent not known to the person to be resident in Singapore for organising or conducting a casino marketing arrangement with a casino operator in Singapore as section 45 applies to any interest paid by a person (X) to another person (Y) not known to X to be resident in Singapore and, for the purpose of such application, any reference in that section to interest is a reference to such commission or payment.
(2)For the purpose of this section, the deduction of tax under section 45 is at the rate of 3%.
(2A)Subsection (1) does not apply to any payment liable to be made on or after 1 January 2015 by any person to a branch in Singapore of a licensed international market agent, being a company incorporated outside Singapore and not known to the person to be resident in Singapore.
(3)In this section, “casino marketing arrangement”, “casino operator” and “international market agent” have the meanings given by the Casino Control Act 2006.
Sections 45 and 45A not applicable to certain payments
45I.—(1)Sections 45(1) to (8) and 45A(1) do not apply to any income referred to in section 12(6) which is liable to be paid by a person mentioned in subsection (2), if the payment is liable to be made —
(a) at any time during the period from 17 February 2012 to 31 December 2026 (both dates inclusive) (called in this section the relevant period) under —
(i) a contract which took effect before 17 February 2012;
(ii) a contract which was extended or renewed, where the extension or renewal took effect before 17 February 2012; or
(iii) a debt security which was issued before 17 February 2012;
(b) under a contract which took effect on a date which falls within the relevant period;
(c) under a contract which was extended or renewed where —
(i) the extension or renewal took effect on a date which falls within the relevant period; and
(ii) the payment is made on or after the date on which such extension or renewal took effect;
(ca) under a contract which was varied where —
(i) the variation takes effect on a date which falls within the period from the date on which the Income Tax (Amendment) Act 2022 is published in the Gazette, to 31 December 2026 (both dates inclusive); and
(ii) the payment is made on or after the date the variation takes effect; or
(d) under a debt security which was issued on a date which falls within the relevant period.
(2)Subsection (1) applies to the following persons:
(a) a bank or merchant bank licensed under the Banking Act 1970;
(b) a finance company licensed under the Finance Companies Act 1967;
(c) a person who —
(i) holds a capital markets services licence under the Securities and Futures Act 2001 for dealing in capital markets products and advising on corporate finance;
(ii) is involved or will be involved in the underwriting of debt or equity issuances; and
(iii) has been approved before 17 February 2012 for the purposes of the Income Tax (Exemption of Interest and Other Payments for Economic and Technological Development) Notification 2012.
(3)Sections 45(1) to (8) and 45A(1) do not apply to any income mentioned in section 12(6) which is liable to be paid by a person who —
(a) holds a capital markets services licence under the Securities and Futures Act 2001 for dealing in capital markets products and advising on corporate finance;
(b) is involved or will be involved in the underwriting of debt or equity issuances; and
(c) is approved for the purposes of this section, where the approval was given on a date (called in this subsection the approval date) within the relevant period by the Minister or an authorised body,
if the payment is liable to be made —
(d) at any time during the period from the approval date to 31 December 2026 (both dates inclusive) under —
(i) a contract which took effect before the approval date;
(ii) a contract which was extended or renewed, where the extension or renewal took effect before the approval date; or
(iii) a debt security which was issued before the approval date;
(da) at any time during the period from the date on which the Income Tax (Amendment) Act 2022 is published in the Gazette to 31 December 2026 (both dates inclusive) under a contract which was varied, where the variation takes effect on or after the date on which the Income Tax (Amendment) Act 2022 is published in the Gazette and before the approval date;
(e) under a contract which took effect on a date which falls within the period from the approval date to 31 December 2026 (both dates inclusive);
(f) under a contract which was extended or renewed where —
(i) the extension or renewal took effect on a date which falls within the period from the approval date to 31 December 2026 (both dates inclusive); and
(ii) the payment is made on or after the date on which such extension or renewal takes effect;
(fa) under a contract which was varied where —
(i) the variation takes effect on a date which falls within the period from the date on which the Income Tax (Amendment) Act 2022 is published in the Gazette or the approval date (whichever is later) to 31 December 2026 (both dates inclusive); and
(ii) the payment is made on or after the date the variation takes effect; or
(g) under a debt security which is issued on a date which falls within the period from the approval date to 31 December 2026 (both dates inclusive).
(4)The approval by the Minister or authorised body under subsection (3)(c) is subject to such conditions as the Minister or authorised body may impose.
(5)This section does not apply to any payment of income referred to in section 12(6) which the Comptroller is satisfied is made in connection with an arrangement the purpose or effect of which is one referred to in section 33(1).
Application of section 45, etc., to Government
45J.—(1)Subject to the modifications in subsection (2), sections 45, 45A, 45F and 45GA apply to the payment of any income described in those sections that is liable to be made by the Government to a person not known to the Government to be resident in Singapore, as they apply to the payment of such income liable to be made by a person to another person not known to the firstmentioned person to be resident in Singapore.
(2)The modifications are —
(a) any amount deducted by the Government under section 45, 45A, 45F or 45GA does not constitute a debt due to the Government and is not recoverable in the manner provided by section 89; and
(b) section 45(3), (4), (5), (6) and (7) (including those provisions as applied by sections 45A, 45F and 45GA) does not apply.
PART 13ALLOWANCES FOR TAX CHARGED
Tax deducted from interests, etc.
46.—(1)Any tax —
(a) which a person has deducted from any interest or other payment under section 45, 45A, 45C, 45D, 45E(1)(a), 45GA or 45H or has deducted from any remuneration under section 45B;
(b) applicable to the share to which any person is entitled in the income of a body of persons (other than trustees);
(c) which a person has deducted from any payment under section 45F in respect of income accrued to or derived by any person who has made an option under section 43(5); or
(d) which a trustee of a real estate investment trust or a trustee of an approved REIT exchange‑traded fund has deducted from any distribution to any person referred to in section 45G(1)(b),
must, when the income from which the tax has been deducted or when the share mentioned in paragraph (b) is included in the chargeable income of any person, be set‑off for the purpose of collection against the tax charged on that chargeable income.
(1A)
(2)Any tax which has been collected under section 45EA must, when the income in respect of which the tax has been collected is included in the chargeable income of the SRS member in question, be set‑off for the purpose of collection against the tax charged on that chargeable income.
(3)The reference in subsection (2) to income in respect of which tax has been collected is a reference to —
(a) the amount deemed as income of the SRS member under section 10G(3) or (3G) (as the case may be) wholly or partly because of the deduction of any investment from the balance in the SRS account for which the tax has been collected; or
(b) the amount deemed as income of the SRS member under section 10G(6), (7) or (9) (as the case may be), if the deduction of any investment from the balance in the SRS account for which the tax has been collected is made after —
(i) the balance (excluding any life annuity) remaining in the SRS account is deemed withdrawn under section 10G(6) or (7); or
(ii) the sum standing in the SRS account is deemed withdrawn under section 10G(9),
as the case may be.
47.
PART 14RELIEF AGAINST DOUBLE TAXATION
48.
Avoidance of double taxation arrangements
49.—(1)If the Minister by order declares that arrangements specified in the order have been made with the government of any country outside Singapore with a view to affording relief from double taxation in relation to tax under this Act and any tax of a similar character imposed by the laws of that country, and that it is expedient that those arrangements should have effect, the arrangements have effect despite anything in any written law.
(2)Any arrangements made with the government of another country —
(a) may provide for liability to tax by one country and for exemption from tax by the other country;
(b) may provide for exemption, wholly or partly and with or without conditions, from tax in either or both countries and for any income so exempted to be taken into account in determining the effective rate of tax to be applicable to other income;
(c) may deem the source of income to be wholly or partly in either or both of such countries; and
(d) may provide for the charge to tax by the country in which the source is deemed to be situated, of any income derived from such source.
(2A)In subsection (2)(b), “effective rate of tax” means the rate of tax as ascertained in accordance with the formula
where A
is the tax payable before allowance of credit under any arrangements having effect under this section on B + C computed in accordance with the provisions of this Act;
B
is the exempt income; and
C
is the other income.
(3)
(4)Any order made under this section may be revoked by a subsequent order.
(5)Where any arrangements have effect by virtue of this section, the obligation as to secrecy imposed by section 6 does not prevent the disclosure to any authorised officer of the government with which the arrangements are made of such information as is required to be disclosed under the arrangements.
(6)The Minister may make rules for carrying out the provisions of any arrangements having effect under this section.
(7)The Minister may by order amend the provisions of any arrangements that have effect under subsection (1), in order to give effect to Singapore’s obligations under the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting done at Paris on 24 November 2016 (as amended from time to time).
(8)Where the provisions of any arrangements that have effect under subsection (1) are amended by an order under subsection (7), then those provisions have effect under subsection (1) as amended by that order.
Tax credits
50.—(1)This section has effect where, under arrangements having effect under section 49, tax payable in respect of any income in the territory with the government of which the arrangements are made is to be allowed as a credit against tax payable in respect of that income in Singapore.
(2)The amount of the income tax chargeable in respect of the income is reduced by the amount of the credit; except that credit is not allowed against income tax for any year of assessment unless the person entitled to the income is resident in Singapore during that year.
(3)The credit must not exceed the amount which would be produced by computing the amount of the income in accordance with the provisions of this Act and then charging it to income tax at a rate ascertained by dividing the income tax chargeable (before allowance of credit under any arrangements having effect under section 49) on the assessable income of the person entitled to the income by the amount of the person’s assessable income.
(4)Without limiting subsection (3), the total credit to be allowed to a person for any year of assessment for foreign tax under all arrangements having effect under section 49 must not exceed the total income tax payable by the person for that year of assessment, excluding any tax payable by the person under section 45.
(5)In computing the amount of the income —
(a) no deduction is allowed in respect of foreign tax (whether in respect of the same or any other income);
(b) where the income tax chargeable depends on the amount received in Singapore, that amount is to be increased by the appropriate amount of the foreign tax in respect of the income; and
(c) where the income includes a dividend and under the arrangements foreign tax not chargeable directly or by deduction in respect of the dividend is to be taken into account in considering whether any (and if so what) credit is to be given against income tax in respect of the dividend, the amount of the income is to be increased by the amount of the foreign tax not so chargeable that falls to be taken into account in computing the amount of the credit.
(6)Subsection (5)(a) and (b) applies to the computation of assessable income for the purposes of determining the rate mentioned in subsection (3), and applies to such computation in relation to all income in the case of which credit falls to be given for foreign tax under arrangements for the time being in force under section 49.
(7)Where —
(a) the arrangements provide, in relation to dividends of some classes, but not in relation to dividends of other classes, that foreign tax not chargeable directly or by deduction in respect of dividends is to be taken into account in considering whether any (and if so what) credit is to be given against income tax in respect of the dividends; and
(b) a dividend is paid that is not of a class in relation to which the arrangements so provide,
then, if the dividend is paid to a company which controls, directly or indirectly, not less than one‑half of the voting power in the company paying the dividend, credit is to be allowed as if the dividend were a dividend of a class in relation to which the arrangements so provide.
(8)Credit is not allowed under the arrangements against income tax chargeable in respect of the income of any person for any year of assessment if the person elects that credit is not to be allowed in the case of the person’s income for that year.
(9)Any claim for an allowance by way of credit must be made not later than 2 years after the end of the year of assessment to which the claim relates (if the year of assessment is the year of assessment 2021 or a previous year of assessment), or 4 years after the end of the year of assessment to which the claim relates (if the year of assessment is any other year of assessment), and in the event of any dispute as to the amount allowable the claim is subject to objection and appeal in like manner as an assessment.
(10)Where the amount of any credit given under the arrangements is rendered excessive or insufficient by reason of any adjustment of the amount of any tax payable either in Singapore or elsewhere, nothing in this Act limiting the time for the making of assessments or claims for relief applies to any assessment or claim to which the adjustment gives rise, being an assessment or claim made not later than 3 years from the time when all such assessments, adjustments and other determinations have been made, whether in Singapore or elsewhere, as are material in determining whether any (and if so what) credit falls to be given.
(11)If the amount of any credit given under the arrangements to a person is rendered excessive by reason of any adjustment of the amount of any tax payable in any territory outside Singapore, the person must give the Comptroller a written notice of the particulars of the adjustment, in the manner specified by the Comptroller, within one year after the adjustment is made.
(11A)Any person who, without reasonable excuse, fails to comply with subsection (11) shall be guilty of an offence and shall be liable on conviction to a penalty not exceeding the amount of the excess credit under subsection (11).
(11B)The Comptroller may compound any offence under subsection (11A).
(12)In this section —
“foreign tax” means any tax payable in that territory which under the arrangements is to be so allowed;
“income tax” means tax chargeable under this Act.
Unilateral tax credits
50A.—(1)Even if there are no arrangements in force under section 49 with the government of any territory outside Singapore, tax credit under section 50 must, subject to this section, be given to any person resident in Singapore for tax payable under the law of that territory in respect of —
(a) any income derived from any professional, consultancy and other services rendered in that territory;
(b) any royalty derived from that territory, where the payment is not —
(i) borne, directly or indirectly, by a person resident in Singapore or a permanent establishment in Singapore (except in respect of any business carried on outside Singapore through a permanent establishment outside Singapore); or
(ii) deductible against any income accruing in or derived from Singapore;
(c) any dividend derived from that territory;
(d) any income from employment in that territory;
(e) any profit derived from outside Singapore by a branch in that territory of a company resident in Singapore;
(f) any income derived from any trade or business carried on in that territory through a permanent establishment in that territory;
(g) any discount or premium from debt securities or interest derived from that territory where the payment is not —
(i) borne, directly or indirectly, by a person resident in Singapore or a permanent establishment in Singapore (except in respect of any business carried on outside Singapore through a permanent establishment outside Singapore); or
(ii) deductible against any income accruing in or derived from Singapore;
(h) any rent or other income ancillary to the holding of immovable properties located in that territory but not including gains from the disposal of such immovable properties derived from a trade or business carried on in Singapore;
(ha) any gains treated as income under section 10L; and
(i) any gains or profits of an income nature not falling within any of the preceding paragraphs that is derived from that territory.
(2)Where any dividend in respect of which tax credit is given under subsection (1)(c) is paid by a company which is resident outside Singapore to a person resident in Singapore who owns not less than 25% of the total number of issued shares of the company paying the dividend, the tax credit must take into account any tax paid by that company in the country in which it is resident in respect of its income out of which the dividend is paid.
(3)Where under arrangements for the time being in force under section 49 with the government of any territory outside Singapore no provision is made for tax credit in respect of income out of which any dividend is paid by a company resident in that territory, tax credit under section 50 in respect of such income must be given to any person resident in Singapore who owns not less than 25% of the total number of issued shares of the company paying the dividend.
(4)Section 50 applies, with the necessary modifications, for the purposes of this section as if any territory to which this section and the regulations have effect were a territory with which arrangements have been made under section 49.
(5)Any person granted any tax credit under subsection (1) on any income must not be given any tax credit under section 50 in respect of that income.
(6)The Minister may, in any particular case, waive the requirement of 25% share ownership mentioned in subsections (2) and (3).
(7)In this section, “debt securities” has the meaning given by section 43H(4).
Tax credits for trust income to which beneficiary is entitled
50B.—(1)Where —
(a) a trustee of a trust receives income in Singapore from outside Singapore (called in this section the income) for which a tax credit is allowable under this Part against the tax payable in respect of the income; and
(b) any beneficiary of the trust who is resident in Singapore is entitled to a share of the income,
the tax credit in respect of that share must be given to the beneficiary instead of the trustee.
(2)The tax credit to be given to a beneficiary under subsection (1) is computed in accordance with section 50 or 50A (as the case may be) as if the income had been received directly by the beneficiary rather than the trustee.
(3)This section does not apply to —
(a) any income of a real estate investment trust within the meaning of section 43(10);
(b) any income of a designated unit trust within the meaning of section 35(14);
(c)
(d) any income of a trust fund prescribed under section 13C;
(e) any income of a foreign trust specified under section 13F;
(f) any income of a locally‑administered trust prescribed under section 13N;
(g) any income of a trust the trustee of which is a prescribed person under section 13D; or
(h) any income of an approved trust fund referred to in the definition of “approved person” under section 13U(5), or of a trust fund that is a feeder fund or master fund approved under section 13U.
Tax credits for estate income received by beneficiary, etc.
50BA.—(1)Where an executor of an estate administered in Singapore receives income in Singapore from outside Singapore (called in this section the income) for which a tax credit is allowable under this Part against the tax payable in respect of the income, and any share of the income is —
(a) received by or distributed to a beneficiary who is resident in Singapore; or
(b) applied to the benefit of such beneficiary,
the tax credit in respect of that share must be given to the beneficiary instead of the executor.
(2)The tax credit to be given to a beneficiary under subsection (1) is computed in accordance with section 50 or 50A (as the case may be) as if the share of the income had been received in Singapore directly by the beneficiary rather than the executor of the estate.
Pooling of credits
50C.—(1)Where, for the year of assessment 2012 or a subsequent year of assessment, a person is entitled to 2 or more tax credits under any other provision of this Part, the person may elect to be given a pooled credit for that year of assessment in lieu of any 2 or more of those credits (called in this section the replaced credits).
(2)Subsection (1) only applies if the income that is the subject of each replaced credit (called in this section the elected income) satisfies all of the following conditions:
(a) tax under the law of the territory from which the income is derived that is of a similar character to income tax (by whatever name called) has been paid on the income;
(b) at the time the income is received in Singapore by the person, the highest rate of tax of a similar character to income tax (by whatever name called) levied under the law of that territory on any gains or profits from any trade or business carried on by a company in that territory at that time, is not less than 15%;
(c) the income tax payable under this Act on the income for the year of assessment (before allowance of any credit under this Part) is not nil.
(3)The total amount of the income tax chargeable to the person in respect of all the elected income is reduced by the amount of the pooled credit.
(4)The amount of the pooled credit is the lower of —
(a) the aggregate of the income tax chargeable for the year of assessment on all the elected income; and
(b) the aggregate of the taxes paid on all the elected income in the territory or territories outside Singapore from which the elected income is derived.
(5)In subsection (4)(a), the aggregate of the income tax chargeable for the year of assessment on all the elected income is ascertained by —
(a) computing the amount of the income that is the subject of each replaced credit in accordance with the provisions of this Act, and then charging it to income tax at a rate ascertained by dividing the income tax chargeable (before allowance of any credit under this Part) on the assessable income of the person by the amount of the person’s assessable income; and
(b) aggregating the amounts computed in accordance with paragraph (a) of all the replaced credits.
(6)Sections 50(5), (6), (9), (10), (11), (11A), (11B) and (12), 50A(2), 50B(2) and 50BA(2) apply, with the necessary modifications, for the purposes of this section.
(7)To avoid doubt, sections 50, 50A, 50B and 50BA (as applicable) continue to apply to any income that is the subject of a credit allowed under any other provision of this Part for which no election under this section is made.
PART 15PERSONS CHARGEABLE
Husband and wife
Income of wife
51.—(1)The income of a married woman must for the purposes of this Act be charged in her own name.
(2)
(3)For the purposes of this Act, a married woman is treated as living with her husband unless —
(a) they are separated under an order of court of competent jurisdiction or by deed of separation;
(b) they are in fact separated in such circumstances that the separation is likely to be permanent; or
(c) she is, and her husband is not, resident in Singapore.
Trustees, agents and curators
Chargeability of trustees, etc.
52.—(1)A receiver appointed by the court, a trustee, a guardian, a curator or a committee, having the direction, control or management of any property or concern on behalf of any incapacitated person is chargeable to tax in like manner and to the like amount as such person would be chargeable if the person were not an incapacitated person.
(2)This section is not to be construed to make any person chargeable to tax in respect of an incapacitated person, liable in such respect, for a greater amount of tax than that for which the incapacitated person would have been liable had no receiver, trustee, guardian, curator or committee been appointed.
Chargeability of agent of person residing out of Singapore
53.—(1)A person not resident in Singapore (called in this section a non‑resident person) is assessable and chargeable to tax either directly or in the name of the person’s trustee, guardian, or committee, or of any attorney, factor, agent, receiver, branch or manager, whether such attorney, factor, agent, receiver, branch or manager has the receipt of the income or not, in like manner and to the like amount as such non‑resident person would be assessed and charged if the person were resident in Singapore and in the actual receipt of such income; except that in the case of any individual who is not resident in Singapore, no deduction is allowed under section 39.
(1A)A non‑resident person is assessable and chargeable in respect of any income arising, directly or indirectly, through or from any attorneyship, factorship, agency, receivership, branch or management, and is so assessable and chargeable in the name of the attorney, factor, agent, receiver, branch or manager.
(2)A non‑resident beneficiary of the estate of a deceased person is, where the estate is being administered in Singapore, assessable and chargeable in respect of the income received by or distributed to the non‑resident beneficiary or applied to the non‑resident beneficiary’s benefit in the name of the executor of the estate as if the executor were an agent of the non‑resident beneficiary.
(2A)Where a non‑resident person carries on business with a resident person and it appears to the Comptroller that, owing to the close connection between the resident person and the non‑resident person and to the substantial control exercised by the non‑resident person over the resident person, the course of business between those persons can be so arranged and is so arranged that the business done by the resident person pursuant to the resident person’s connection with the non‑resident person produces to the resident person either no profits or less than the ordinary profits which might be expected to arise from that business, the non‑resident person is assessable and chargeable to tax in the name of the resident person as if the resident person were an agent of the non‑resident person.
(3)Where the true amount of the gains or profits of any non‑resident person chargeable with tax in the name of a resident person cannot in any case be readily ascertained, the Comptroller may, if he or she thinks fit, assess and charge the non‑resident person on a fair and reasonable percentage of the turnover of the business done by the non‑resident person through or with the resident person in whose name the non‑resident person is chargeable as aforesaid, and in such case the provisions of this Act relating to the delivery of returns or particulars by persons acting on behalf of others extend so as to require returns or particulars to be furnished by the resident person of the business so done by the non‑resident person through or with the resident person, in the same manner as returns or particulars are to be delivered by persons acting for incapacitated or non‑resident persons of income to be charged.
(3A)The amount of the percentage under subsection (3) must in each case be determined with regard to the nature of the business and is, when determined by the Comptroller, subject to appeal in accordance with the provisions of Part 18.
(4)This section does not render a non‑resident person chargeable in the name of a broker or general commission agent or other agent where such broker, general commission agent or agent is not an authorised person carrying on the regular agency of the non‑resident person, or person chargeable as if the person were an agent pursuant to subsections (2A) and (3), in respect of gains or profits arising from sales or transactions carried out through such a broker or agent.
(5)The fact that a non‑resident person executes sales or carries out transactions with other non‑resident persons in circumstances which would make the non‑resident person chargeable pursuant to subsections (2A) and (3) in the name of a resident person does not of itself make the non‑resident person chargeable in respect of gains or profits arising from those sales or transactions.
(6)Where a non‑resident person is chargeable to tax in the name of any attorney, factor, agent, receiver or manager, in respect of any gains or profits arising from the sale of goods or produce manufactured or produced outside Singapore by the non‑resident person, the person in whose name the non‑resident person is so chargeable may, if the person thinks fit, apply to the Comptroller to have the assessment to tax in respect of those gains or profits made or amended on the basis of the profits which might reasonably be expected to have been earned by a merchant or, where the goods are retailed by or on behalf of the manufacturer or producer, by a retailer of the goods sold, who had bought from the manufacturer or producer direct, and on proof to the Comptroller’s satisfaction of the amount of the profits on that basis, the assessment must be made or amended accordingly.
(7)The master of any ship (within the meaning of section 2(1) of the Merchant Shipping Act 1995) and the captain of any aircraft owned or chartered by a non‑resident person who is chargeable under section 12(2) are (though not to the exclusion of any other agent) deemed the agents of such non‑resident person for all the purposes of this Act.
(8)The income of any non‑resident partner or partners from a partnership is assessable in the name of the partnership or of any resident partner or of any agent of the partnership in Singapore, and the tax charged thereon is recoverable by all means provided in this Act out of the assets of the partnership or from any partner or from any such agent.
Liability of person chargeable in respect of incapacitated person
54.The person who is chargeable in respect of an incapacitated person, or in whose name a non‑resident person is chargeable, is answerable for all matters required to be done by virtue of this Act for the assessment of the income of any person for whom the firstmentioned person acts and for paying the tax chargeable thereon.
Liability of managers of companies or bodies of persons
55.The manager or principal officer in Singapore of every company or body of persons is answerable for doing all such acts, matters and things as are required to be done by virtue of this Act for the assessment of the company or body of persons and payment of tax.
Indemnification of representative
56.Every person answerable under this Act for the payment of tax on behalf of another person may retain out of any money coming to the firstmentioned person’s hands on behalf of the other person so much thereof as is sufficient to pay the tax; and must be and is indemnified against any person whatsoever for all payments made by the firstmentioned person pursuant to and by virtue of this Act.
Power to appoint agent, etc., for recovery of tax
57.—(1)The Comptroller may by written notice, if the Comptroller thinks it necessary, declare any person to be the agent of any other person.
(1A)The person (X) declared the agent under subsection (1) is the agent of such other person for the purposes of this Act and may be required to pay any tax due from any moneys, including pensions, salary, wages or any other remuneration, which, at the date of the receipt of the notice or at any time during the period of 90 days thereafter, may be held by X for or due by X to the person whose agent X has been declared to be.
(1B)In default of payment under subsection (1A), the tax is recoverable from the agent in the manner provided by section 89.
(2)For the purposes of this section, the Comptroller may require any person to give the Comptroller information as to any moneys, funds or other assets which may be held by the person for, or of any moneys due by the person to, any other person.
(3)Where any person declared by the Comptroller to be the agent of any other person under subsection (1) is aggrieved by such declaration the person may, by written notice to the Comptroller within 14 days, or within such further time as the Comptroller may allow, object to the declaration.
(4)The Comptroller must examine the objection and may cancel, vary or confirm the declaration.
(5)Where the objector is aggrieved by the Comptroller’s decision on the objection, the objector may appeal against such decision to the Board of Review and the provisions of Part 18 apply with the necessary modifications.
(5A)For the purposes of payment of any tax due from any moneys referred to in subsection (1A) in a joint account at any bank or from the proceeds of sale of any immovable property owned by 2 or more persons as joint owners, the following provisions apply:
(a) the person declared by the Comptroller under subsection (1) to be the agent of any person who is an owner of such moneys must —
(i) within 14 days of the receipt of the notice under subsection (1A), send a notice by registered post addressed to every owner of such moneys at the address last known to the agent informing the owner of such declaration; and
(ii) retain such amount of the moneys as is presumed under paragraph (b) to be owned by the person from whom tax is due and subject to paragraph (e) within 42 days of the receipt of the notice under subsection (1A) pay over the tax due from such amount to the Comptroller;
(b) it is presumed, until the contrary is proved, that the holders of a joint account at any bank have equal share of the moneys in the account as at the date of receipt of the notice under subsection (1A) and that the joint owners of any immovable property share the proceeds of sale of the property equally;
(c) any owner of such moneys who objects to the share presumed under paragraph (b) must give written notice of the owner’s objection to the person declared to be the agent under subsection (1) within 28 days of the receipt of the notice of the agent under paragraph (a)(i), or within such further period as the Comptroller may allow, and furnish proof as to the owner’s share of the moneys;
(d) where an objection under paragraph (c) has been received, the person declared to be the agent must —
(i) retain the amount of such moneys referred to in paragraph (a)(ii) until such time as the Comptroller by notice under paragraph (e) informs the person of the Comptroller’s decision on the objection; and
(ii) inform the Comptroller of the objection within 7 days of the receipt of the objection;
(e) the Comptroller must consider the objection and must by written notice inform the person declared to be the agent of the Comptroller’s decision and the agent must, despite any appeal under paragraph (f), pay over any tax due from the share of moneys decided by the Comptroller as the amount, not exceeding the amount presumed under paragraph (b) to be the share of the person by whom the tax is payable, held by the agent for or due by the agent to the person; and
(f) any owner of such moneys aggrieved by the Comptroller’s decision under paragraph (e) may appeal against the decision to the Board of Review and the provisions of Part 18 apply, with the necessary modifications, to the appeal.
(6)Where an agent makes any payment of moneys to the Comptroller under this section —
(a) the agent is deemed to have been acting under the authority of the person by whom the tax is payable (called in this section the defaulting taxpayer);
(b) the agent is indemnified in respect of the payment to the Comptroller;
(c) the amount of the tax due from the defaulting taxpayer is reduced by the amount paid by the agent to the Comptroller; and
(d) the amount of the reduction is, to the extent of that amount, deemed to have been paid to the defaulting taxpayer in accordance with any law, contract or scheme governing the payment of moneys held by the agent for or due from the agent to the defaulting taxpayer.
(6A)Where —
(a) an amount of tax is due from any person under this Act otherwise than as an agent under this section;
(b) except for this subsection, an amount is or would, at any time during the period of 90 days after the date of the receipt of the notice in paragraph (c), be payable by the Government to the defaulting taxpayer by or under any written law, contract or scheme; and
(c) before payment of the amount mentioned in paragraph (b) is made to the defaulting taxpayer, the Comptroller serves notice on any public officer (including an employee appointed under section 9(3) of the Inland Revenue Authority of Singapore Act 1992) by whom the payment is to be made that the tax is due from the defaulting taxpayer,
then the public officer is, despite any other written law, contract or scheme, entitled to reduce the amount mentioned in paragraph (b) by the amount of the whole or any part of the tax mentioned in paragraph (a), and if the public officer makes such a reduction —
(d) the amount of the tax mentioned in paragraph (a) is reduced by the amount of the reduction; and
(e) the amount of the reduction is, to the extent of such amount, deemed to have been paid to the defaulting taxpayer in accordance with any law, contract or scheme governing the payment of moneys referred to in paragraph (b) to the defaulting taxpayer.
(7)In this section —
“joint account” means any account in the names of 2 or more persons but excludes any partnership account, trust account and any account where a minor is one of the joint account holders;
“tax” includes any penalty or any other money which a person is liable to pay to the Comptroller under this Act.
Deceased persons
58.—(1)Where an individual (X) dies, then as respects income arising before X’s death all rights and duties which would have attached to X, and any liability to be charged with or to pay tax to which X would have been subject under this Act if X had not died, pass to X’s executor, and the amount of any tax payable by the executor under this section is a debt due from and payable out of X’s estate.
(2)Any assessment or additional assessment on any such income must not be made later than the end of the third year of assessment following that in which X died.
(3)Where, by reason of the death of an individual (X), a trade, business, profession, vocation or employment ceases to be carried on or exercised by X or the income from any other source ceases, and section 35 applies, X’s executor is liable for the tax for which X would have been liable if X had not died but, except in the case of dividends, a cessation had taken place at the date of X’s death.
(4)In the case of an individual dying during the year preceding the year of assessment, if his or her executor distributes the estate before the commencement of the year of assessment, such executor must pay any tax for that year of assessment at the rate or rates in force at the date of distribution of the estate, if the rate of tax for that year of assessment has not been varied at that date.
Duty of liquidator on winding up of company or limited liability partnership
59.—(1)Where a company or a limited liability partnership is being wound up, the liquidator of the company or limited liability partnership (as the case may be) is answerable for doing all such acts, matters and things as are required to be done under this Act in relation to the affairs of the company or the limited liability partnership.
(2)Where a company is being wound up, the liquidator of the company must not distribute any of the assets of the company to its shareholders unless the liquidator has made provision for the payment in full of any tax which may be found payable by the company.
Chargeability of joint trustees
60.Where 2 or more persons act in the capacity of trustees of a trust they may be charged jointly or severally with the tax with which they are chargeable in that capacity and are jointly and severally liable for payment of the same.
61.
PART 16RETURNS
Notice of chargeability and returns
62.—(1)The Comptroller may, by notice in the Gazette, require every person to furnish to the Comptroller in such form and manner as the Comptroller may determine, within a reasonable time specified in the notice or such extended time as the Comptroller may allow, a return of income for the year of assessment specified in the notice and such particulars as may be required for the purpose of ascertaining the income (if any) for which —
(a) the person is chargeable under this Act; and
(b) in the case of a precedent partner or such other person referred to in section 71, each partner in the partnership is chargeable.(2)The Comptroller may, in any notice made under subsection (1), exempt from liability to furnish returns such classes of persons as the Comptroller thinks fit, and any person so exempted need not furnish a return under that subsection unless the person is required by the Comptroller to do so under subsection (3).
(3)Despite subsection (1), the Comptroller may, by written notice, require any person to furnish to the Comptroller in such form and manner and within such reasonable time as the Comptroller may determine, with a return of income and such particulars as may be required for the purpose of ascertaining the income (if any) for which such person is chargeable under this Act.
(4)Every person chargeable with tax for any year of assessment who has not been required within 3 months after the commencement of such year of assessment to make a return of the person’s income for that year as provided in subsection (1) or (3) must, within 14 days after the end of that period, give notice to the Comptroller that the person is so chargeable.
(5)Any individual who arrives in Singapore during any year of assessment must give such notice within one month of the date of the individual’s arrival.
(6)A company licensed under the Insurance Act 1966 to carry on insurance business in Singapore that is required under subsection (1) to furnish a tax computation with its return of income, must furnish to the Comptroller a tax computation that is prepared in accordance with its MAS return along with such additional information as the Comptroller may reasonably require for making an assessment.
(7)Subsection (6) has effect for any year of assessment for a basis period beginning on or after 1 January 2023, or such earlier basis period as may be approved by the Comptroller in a particular case.
(8)The Minister may make regulations to provide for any transitional, supplementary and consequential matters relating to subsections (6) and (7).
(9)In this section, “MAS return” has the meaning given by section 34AAA(14).
The basic rule: Singapore dollar to be used
62A.Subject to section 62B, where a person carrying on a trade, business, profession or vocation is required to furnish tax computations and particulars of income with a return of income made under section 62 or 71, the tax computations and particulars of income must be denominated in Singapore dollar.
Currency other than Singapore dollar to be used in certain circumstances
62B.—(1)Where a person maintains the person’s financial accounts in respect of any trade, business, profession or vocation carried on by the person in a functional currency other than Singapore dollar in accordance with financial reporting standards in Singapore, the person who is required to furnish tax computations and particulars of income with a return of income made under section 62 or 71 must furnish such computations and particulars of income denominated in that functional currency in the manner prescribed under this section.
(2)The amount of chargeable income (after deducting the amount not charged to tax under section 43(6) or (6C)) of any company for any year of assessment must be converted to an equivalent amount in Singapore dollar, and the amount of tax which has been deducted or is deductible from any interest under section 45 derived by the company must remain denominated in Singapore dollar.
(3)The amount of statutory income from any trade, business, profession or vocation carried on by any individual for any basis period and the amount of donation made by the individual during any year must be converted to an equivalent amount in Singapore dollar, and any amount of allowances, losses or donations which remains unabsorbed at the end of any basis period or at the end of any year (as the case may be) must be carried forward to the next basis period or next year denominated in Singapore dollar.
(4)In respect of any partnership, the income of a partner from the partnership and the partner’s share of donation made by the partnership for any year of assessment must be converted to an equivalent amount in Singapore dollar, and any amount of allowances, losses or donations which remains unabsorbed at the end of any basis period or at the end of any year (as the case may be) must be carried forward to the next basis period or next year denominated in Singapore dollar in the tax computation of each partner.
(5)Despite anything in this section, a person who is required to furnish tax computations and particulars of income with a return of income made under section 62 or 71 to whom this section applies must declare any information required in any return of income in Singapore dollar.
(6)Subject to subsection (7), the rate of exchange applicable for the purposes of converting any amount in Singapore dollar to an equivalent amount in a non‑Singapore dollar functional currency, or any amount in a non‑Singapore dollar functional currency to an equivalent amount in Singapore dollar (as the case may be) is —
(a) the average rate of exchange, as made available by the Monetary Authority of Singapore, calculated on the basis of the rate of exchange at the end of each month for the accounting period that constitutes the basis period for the year of assessment; or
(b) where no such average rate of exchange is made available by the Monetary Authority of Singapore, such rate of exchange as the Comptroller may determine.
(7)Despite subsection (6), for the purposes of an election under section 24 or 25, where the buyer and seller or the transferee and transferor (as the case may be) of any property each uses a different functional currency, the rate of exchange applicable is the rate of exchange prevailing as at the date of sale or transfer (as the case may be) of the property.
(8)Despite subsection (6), where a person has furnished a tax computation and particulars of income with a return of income in Singapore dollar, and is required under subsection (9) or has obtained the Comptroller’s approval under subsection (10) (as the case may be) to furnish a tax computation and particulars of income with a return of income in a non‑Singapore dollar functional currency for any year of assessment, such person must convert the amounts denominated in Singapore dollar into the equivalent amount in the functional currency in accordance with the regulations made under subsection (11).
(9)This section has effect for accounting periods beginning on or after 1 January 2003.
(10)This section also has effect for accounting periods beginning before 1 January 2003 of a person which had been approved by the Comptroller to furnish tax computations and particulars of income with a return of income made under section 62 or 71 denominated in a functional currency other than Singapore dollar for those accounting periods.
(10A)This section does not apply to any company licensed under the Insurance Act 1966 to carry on insurance business in Singapore, in respect of an accounting period beginning on or after 1 January 2023, or such earlier accounting period as may be approved by the Comptroller in a particular case.
(11)For the purposes of this section, the Minister may make regulations to provide for —
(a) such transitional, supplementary and consequential matters as the Minister may consider necessary or expedient; and
(b) generally giving effect to or for carrying out the purposes of this section.
Furnishing of estimate of chargeable income if no return is made under section 62
63.—(1)Subject to subsection (1AAA), and unless exempted by rules mentioned in subsection (3), every person, not being an individual, who has not made a return under section 62 for any year of assessment must, within 3 months after the end of the accounting period relating to that year of assessment, or such extended time as the Comptroller may allow, furnish to the Comptroller an estimate of the person’s chargeable income.
(1AAA)Unless exempted by rules mentioned in subsection (3), every insurer (other than a captive insurer or a marine mutual insurer) who has not made a return under section 62 for the year of assessment for an accounting period beginning on or after 1 January 2023 must, within 3 months after the end of the calendar year preceding the year of assessment or such extended time as the Comptroller may allow, furnish to the Comptroller an estimate of the insurer’s chargeable income.
(1AA)A person mentioned in subsection (1) or (1AAA) must furnish the estimate of the person’s chargeable income for a year of assessment using the electronic service if rules mentioned in subsection (3) require a class of persons to furnish their estimates for that year of assessment using the electronic service, and the person belongs to that class.
(1A)Unless exempted by rules mentioned in subsection (3), every individual carrying on or exercising any trade, business, profession or vocation who has not made a return under section 62 for any year of assessment must, within 3 months after the end of the accounting period relating to that year of assessment, or such extended time as the Comptroller may allow, furnish to the Comptroller an estimate of the individual’s chargeable income.
(2)Any person who fails or neglects without reasonable excuse to furnish the estimate of the person’s chargeable income as required under subsection (1), (1AAA), (1AA) or (1A) shall be guilty of an offence.
(3)The Minister may, by rules made under section 7, do any of the following:
(a) require a specified class of persons subject to subsection (1) or (1AAA) to furnish the estimate of their chargeable income for any year of assessment under that subsection using the electronic service;
(b) exempt any person or class of persons from subsection (1), (1AAA) or (1A) in respect of one or more years of assessment, subject to such conditions as may be specified in the rules.
(4)In this section —
“captive insurer” and “marine mutual insurer” have the meanings given by section 2 of the Insurance Act 1966;
“insurer” means any company licensed under the Insurance Act 1966 to carry on insurance business in Singapore.
Comptroller may call for further returns
64.The Comptroller may give written notice to any person when and as often as the Comptroller thinks necessary requiring the person to furnish within a reasonable time limited by such notice fuller or further returns respecting any matter as to which a return is required by or under this Act.
Power to call for returns
65.—(1)For the purpose of obtaining full information in respect of a person’s income, the Comptroller may give notice to the person requiring the person to complete and return to the Comptroller, within the time specified in the notice, a return specified in the notice.
(2)The time specified in the notice must not be less than 30 days after the date of service of the notice on the person.
Statement of bank accounts, assets, etc.
65A.The Comptroller may give written notice to any person requiring the person to furnish within the time limited by such notice, not being less than 30 days from the date of service of such notice, a statement containing particulars of —
(a) all banking accounts, whether current or deposit, business or private, in the person’s own name or in the name or names of the person’s wife or wives, or in any other name, in which the person is or has been interested, or on which the person has or has had power to operate, jointly or solely, and which are in existence or which have existed at any time during the period stated in the notice;
(b) all savings and loan accounts, deposits, building society and co‑operative society accounts, in regard to which the person has, or has had, any interest or power to operate jointly or solely during the periods aforesaid;
(c) all assets, other than those referred to in paragraph (a) or (b) which the person and the person’s wife or wives possess, or have possessed, during the period aforesaid;
(d) all sources of income not referred to in paragraph (a), (b) or (c) and the income derived therefrom; and
(e) all facts bearing upon the person’s liability to income tax to which the person is, or has been, liable.
Power of Comptroller to obtain information
65B.—(1)The Comptroller or any officer authorised by the Comptroller in that behalf —
(a) must at all times have full and free access to all buildings, places, documents, computers, computer programs and computer software (whether installed in a computer or otherwise) for any of the purposes of this Act;
(b) must have access to any information, code or technology which has the capability of retransforming or unscrambling encrypted data contained or available to such computers into readable and comprehensive format or text for any of the purposes of this Act;
(c) is entitled —
(i) without fee or reward, to inspect, copy or make extracts from any such document, computer, computer program, computer software or computer output; and
(ii) at any reasonable time to inspect and check the operation of any computer, device, apparatus or material which is or has been in use in connection with anything to which this section applies;
(d) may take possession of any such document, computer, device, apparatus, material, computer program or computer software where in his or her opinion —
(i) the inspection, checking, copying thereof or extraction therefrom cannot reasonably be performed without taking possession;
(ii) any such items may be interfered with or destroyed unless possession is taken; or
(iii) any such items may be required as evidence in proceedings for an offence under this Act or in proceedings for the recovery of tax or penalty, or in proceedings by way of an appeal against an assessment;
(e) is entitled to require —
(i) the person by whom or on whose behalf the computer is or has been used, or any person having charge of, or otherwise concerned with the operation of the computer, device, apparatus or material to provide the Comptroller or officer with such reasonable assistance as the Comptroller or officer may require for the purposes of this section; and
(ii) any person in possession of decryption information to grant the Comptroller or officer access to such decryption information necessary to decrypt data required for the purpose of this section; and
(f) is entitled to require a person in or at the building or place, and who appears to the Comptroller or officer to be acquainted with —
(i) any facts or circumstances concerning the person’s or another person’s income, assets or liabilities; or
(ii) any facts or circumstances that are relevant to an investigation of, or the prosecution of a person for, an offence under this Act,
to do either or both of the following:
(iii) answer any question to the best of that person’s knowledge, information and belief;
(iv) take reasonable steps to produce a document for inspection.
(1A)The Comptroller or a specially authorised officer may, for the purpose of investigating an offence under section 37M(3) or (4), 37S(3) or (4), 96 or 96A, break open any outer or inner door or window, or use any other reasonable means, to gain entry to a building or place.
(1B)The Comptroller or a specially authorised officer may only exercise the power under subsection (1A) if —
(a) he or she has reason to believe that there is in that building or place any document or thing that may be, or that contains information that may be —
(i) relevant to the investigation; or
(ii) required as evidence in proceedings for the offence being investigated;
(b) he or she has reason to believe that the document or thing is likely to be concealed, removed or destroyed, or the information is likely to be deleted, by any person; and
(c) he or she is unable to gain entry to that building or place after stating his or her authority and purpose and demanding such entry.
(1C)To avoid doubt, the Comptroller or a specially authorised officer who has gained entry to a building or place by exercising his or her power under subsection (1A), may exercise any of his or her powers under subsection (1) after such entry.
(1D)The Comptroller or a specially authorised officer may, after gaining entry into a building or place under subsection (1) or (1A) for the purpose of investigating an offence under this Act, search or cause to be searched a person found in the building or place for any document or thing which may be relevant for the investigation, or is required as evidence in proceedings for that offence.
(1E)A reference in subsection (1D) to an offence under this Act excludes an offence under section 65C as applied by section 105F or by section 105N, or an offence under section 105M.
(1F)A woman must not be searched except by a woman.
(2)A person is not obliged under this section to disclose (including through the production of a document) —
(a) any information which the person is under any statutory obligation (other than sections 128, 128A, 129 and 131 of the Evidence Act 1893) to observe secrecy; or
(b) any information subject to legal privilege.
(3)The Comptroller may by notice require any person to give orally, in writing, or through the electronic service —
(a) any information concerning the person’s or any other person’s income, assets or liabilities that is relevant for the purposes of this Act; or
(b) any information that is relevant for an investigation of, or the prosecution of a person for, an offence under this Act.
(3A)The time for compliance with a notice under subsection (3) is 21 days from the date of service of the notice or such other period as the Comptroller considers appropriate.
(3B)The Comptroller may by notice require any person to attend personally before the Comptroller or an officer authorised by the Comptroller, at the place and time specified in the notice, to do one or both of the following:
(a) provide, to the best of that person’s knowledge, information and belief —
(i) any information concerning the person’s or any other person’s income, assets or liabilities that is relevant for the purposes of this Act; or
(ii) any information that is relevant for an investigation of, or the prosecution of a person for, an offence under this Act;
(b) take reasonable steps to produce for inspection any document concerning such income, assets or liabilities, or that contains such information.
(3C)The power to require a person to provide information or produce a document under subsection (1)(f) or (3), or when in attendance before the Comptroller or an authorised officer pursuant to a notice under subsection (3B), includes the power —
(a) to require that person, or any person who is or was an officer or employee of that person, to provide an explanation of the information or document;
(b) if the information is not provided or the document is not produced, to require that person to state, to the best of the person’s knowledge and belief, where it is;
(c) if the information is recorded otherwise than in legible form, to require the information to be made available to the Comptroller or authorised officer (as the case may be) in legible form; and
(d) in the case of a document, to inspect, copy or make extracts from the document without fee or reward, and to take possession of the document if in the Comptroller’s or authorised officer’s opinion —
(i) the inspection, copying or extraction cannot reasonably be performed without taking possession of the document;
(ii) the document may be interfered with or destroyed unless possession of the document is taken; or
(iii) the document may be required as evidence in proceedings for an offence under this Act or in proceedings for the recovery of tax or penalty, or in proceedings by way of an appeal against an assessment.
(3D)A statement made by any person asked under subsection (1)(f), or when in attendance before the Comptroller or an authorised officer pursuant to a notice under subsection (3B), must —
(a) be reduced to writing;
(b) be read over to the person;
(c) if the person does not understand English, be interpreted for the person in a language that the person understands; and
(d) be signed by the person.
(3E)In this section —
“document” includes, in addition to a document in writing —
(a) any map, plan, graph or drawing;
(b) any photograph;
(c) any label, marking or other writing which identifies or describes anything of which it forms a part, or to which it is attached by any means;
(d) any disc, tape, soundtrack or other device in which sounds or other data (not being visual images) are embodied so as to be capable (with or without the aid of some other equipment) of being reproduced from it;
(e) any film (including microfilm), negative, tape, disc or other device in which one or more visual images are embodied so as to be capable (with or without the aid of some other equipment) of being reproduced from it; and
(f) any paper or other material on which there are marks, impressions, figures, letters, symbols or perforations having a meaning for persons qualified to interpret them;
“writing” includes any mode of representing or reproducing words, figures, drawings or symbols in a visible form.
(4)In this section, “computer” and “computer output” have the meanings given by the Computer Misuse Act 1993.
Failure to comply with section 64, 65, 65A or 65B
65C.—(1)Any person who, without reasonable excuse —
(a) fails, neglects or refuses to comply with any notice or requirement of the Comptroller or an officer authorised by the Comptroller under section 64, 65, 65A or 65B, or a demand for information; or
(b) hinders or obstructs the Comptroller, or any officer authorised by the Comptroller, in the performance or execution of his or her duties or of anything which he or she is empowered or required to do under section 65B,
shall be guilty of an offence.
(2)Any person guilty of an offence under subsection (1) shall be liable on conviction to a fine not exceeding $10,000 or to imprisonment for a term not exceeding 12 months or to both and, in the case of a continuing offence, to a further fine not exceeding $100 for every day or part of a day during which the offence continues after conviction.
(3)The Comptroller may compound any offence under subsection (1).
(4)The generality of the term “reasonable excuse” in subsection (1) is not affected by section 65B(2).
(5)Except as provided under section 65B(2), it is not a defence to a charge under subsection (1) for a failure to provide any information or produce any document sought by a notice mentioned in section 65B, that the person is under a duty of secrecy in respect of that information or the contents of that document (called in this section a displaced duty of secrecy).
(6)A person who in good faith complies with a notice referred to in section 65B is not treated as being in breach of a displaced duty of secrecy.
(7)No civil or criminal action for a breach of a displaced duty of secrecy, other than a criminal action for an offence under subsection (8), shall lie against the person referred to in subsection (6) —
(a) for producing any document or providing any information if the person had done so in good faith in compliance with the notice under section 65B; or
(b) for doing or omitting to do any act if the person had done or omitted to do the act in good faith and as a result of complying with such a notice.
(7A)In subsections (5), (6) and (7) —
(a) a reference to a notice under section 65B to provide information includes a reference to a requirement to provide information under section 65B(1)(f) and a demand for information; and
(b) a reference to a notice under section 65B to produce a document includes a reference to a requirement to produce a document under section 65B(1)(f).
(8)Any person who, in purported compliance with a notice or requirement of the Comptroller or an officer authorised by the Comptroller under section 64, 65, 65A or 65B, or with a demand for information, produces any document which contains any information, or provides any information, known to the person to be false or misleading in a material particular —
(a) without indicating to the Comptroller or the officer that the information is false or misleading and the part that is false or misleading; and
(b) without providing correct information to the Comptroller or the officer if the person is in possession of, or can reasonably acquire, the correct information,
shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 or to imprisonment for a term not exceeding 2 years or to both.
(9)A person shall not be convicted of an offence under this section for failing or neglecting to comply with a notice issued by the Comptroller under section 64, 65, 65A or 65B unless the notice was served on the person personally or by registered post.
(10)In this section, “demand for information” means a demand by the Comptroller or an officer authorised by the Comptroller to answer a question when in attendance before the Comptroller or the officer pursuant to a notice under section 65B(3B).
Section 65B notice applies despite duty of secrecy under Banking Act 1970 or Trust Companies Act 2005
65D.—(1)This section applies where —
(a) the Comptroller requires any information for the administration of this Act, other than for an investigation or a prosecution for an offence alleged or suspected to have been committed under this Act;
(b) the information is protected from unauthorised disclosure under either of the following laws (called in this section the relevant laws):
(i) section 47 of the Banking Act 1970 including that section as applied by section 55ZI(1) of that Act;
(ii) section 49 of the Trust Companies Act 2005; and
(c) a person is given a notice, or is required, under section 65B to provide the information or to produce a document containing the information.
(2)Despite anything in section 65B(2)(a), a person issued with a notice or requirement mentioned in subsection (1)(c) is not excused from providing the information or document by reason only that the person is under a statutory obligation to observe secrecy under a relevant law, and that notice has effect despite the relevant law.
(3)A person who in good faith complies with a notice or requirement mentioned in subsection (1)(c) is not treated as being in breach of the relevant law.
(4)No action for a breach of the relevant law shall lie against the person mentioned in subsection (3) —
(a) for producing any document or providing any information if the person had done so in good faith in compliance with a notice or requirement mentioned in subsection (1)(c); or
(b) for doing or omitting to do any act if the person had done or omitted to do the act in good faith and as a result of complying with such a notice or requirement.
(5)In this section, a notice under section 65B to provide information includes a demand for information as defined in section 65C(10).
Section 65B notice may be subject to confidentiality duty
65E.—(1)Where the Comptroller issues a notice to any person under section 65B and states that the notice must be kept confidential, the person (including an officer, employee or agent of the person) must not disclose any information relating to the notice to any other person.
(2)Subsection (1) does not apply to the disclosure of any information relating to the notice to an advocate and solicitor for the purpose of seeking legal advice on the notice, if (and only if) the person who discloses the information informs the advocate and solicitor of the Comptroller’s requirement that the notice be kept confidential.
(3)The advocate and solicitor to whom information is disclosed in accordance with subsection (2) is subject to subsection (1) as if he or she is the person given the notice under subsection (1).
(4)Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $1,000 and in default of payment to imprisonment for a term not exceeding 6 months.
(5)The Comptroller may compound any offence under subsection (4).
(6)A person who in good faith complies with subsection (1) is not treated as being in breach of any duty to disclose the information to any person, whether imposed by written law, rule of law, any contract or any rule of professional conduct; and no criminal or civil action for a breach of such duty shall lie against the firstmentioned person.
Arrest of person
65F.—(1)The Comptroller or a specially authorised officer (called in this section and sections 65G, 65H and 65I an arresting officer) may arrest without warrant any person whom the arresting officer reasonably believes —
(a) has committed an offence under section 37M(3) or (4), 37S(3) or (4), 96 or 96A; or
(b) is doing any of the following:
(i) destroying or attempting to destroy any document or thing with a view to hindering or obstructing the Comptroller, or an officer authorised under section 4(1) to investigate offences under this Act, in the exercise of his or her powers;
(ii) deleting or attempting to delete any information contained in any thing with a view to hindering or obstructing the Comptroller or an officer mentioned in sub‑paragraph (i), in the exercise of his or her powers;
(iii) resisting or attempting to resist, without reasonable excuse, the taking of any document or thing by the Comptroller or an officer mentioned in sub‑paragraph (i),
being any document, thing or information that may be relevant to an investigation of an offence under this Act, or that may be required as evidence in proceedings for an offence under this Act.
(2)A reference in subsection (1)(b) to an offence under this Act excludes an offence under section 65C as applied by section 105F or by section 105N, and an offence under section 105M.
(3)An arresting officer may search or cause to be searched an arrested person.
(4)A woman must not be searched except by a woman.
(5)An arresting officer making an arrest must, without unnecessary delay and subject to subsection (8) and the rules mentioned in subsection (10), take or send an arrested person before a Magistrate’s Court.
(6)An arresting officer must not detain in custody an arrested person for a longer period than under the circumstances of the case is reasonable.
(7)Such period must not exceed 48 hours, excluding the time necessary for the journey from the place of arrest to the Magistrate’s Court.
(8)An arrested person must not be released except —
(a) on the person’s own bond;
(b) on bail by a Magistrate or an arresting officer; or
(c) under the special order in writing by a Magistrate or an arresting officer.
(9)If any arrested person escapes, he or she may, at any time afterwards, be arrested in accordance with this section and section 65G.
(10)The Minister may make rules under section 7 to provide for —
(a) any matter relating to the release of any person on any bond, bail or special order under subsection (8); and
(b) the arrest of any person with or without warrant by an arresting officer for a breach of the conditions of a bond, bail or special order or other specified circumstances.
No unnecessary restraint
65G.—(1)In making an arrest, an arresting officer must touch or confine the body of a person to be arrested unless the person submits to arrest by word or action.
(2)If the person forcibly resists, or tries to evade arrest, the arresting officer may use all reasonable means necessary to make the arrest.
(3)An arrested person must not be subject to more restraint than is necessary to prevent the person’s escape.
(4)An arresting officer may use handcuffs or any similar means of restraint on an arrested person to prevent the person from —
(a) inflicting any bodily injury to himself or herself, or others;
(b) damaging any property;
(c) creating any disturbance; or
(d) escaping from custody.
(5)The handcuffs or means of restraint must not be used for the purpose of punishment.
Arresting officer to be armed
65H.An arresting officer may be provided with such batons and accoutrements as may be necessary for the effective discharge of his or her duties under sections 65F and 65G.
Search of place entered by person sought to be arrested
65I.—(1)If an arresting officer has reason to believe that a person to be arrested under section 65F(1) is inside any building or place and demands entry to that building or place, any person who resides in or is in charge of the building or place must allow the arresting officer free entry and provide all reasonable facilities for a search in it.
(2)If entry to that building or place cannot be gained under subsection (1), it is lawful for the arresting officer to enter and search the building or place.
(3)After stating his or her authority and purpose and demanding entry to a building or place, the arresting officer who is unable to obtain entry may, for the purposes of subsection (2), break open any outer or inner door or window or use any other reasonable means to gain such entry.
Arrested person may be orally examined
65J.—(1)The Comptroller or an officer authorised under section 4(1) to investigate offences under this Act (called in this section an investigation officer), may examine orally a person arrested under section 65F(1).
(2)A person examined by an investigation officer need not state anything which —
(a) the person is under any statutory obligation (other than sections 128, 128A, 129 and 131 of the Evidence Act 1893) to observe secrecy; or
(b) is subject to legal privilege.
(3)A statement made by an arrested person must —
(a) be reduced to writing;
(b) be read over to the person;
(c) if the person does not understand English, be interpreted for the person in a language that the person understands; and
(d) be signed by the person.
(4)Any person who, without reasonable excuse, fails or refuses to answer any question when examined under subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 or to imprisonment for a term not exceeding 12 months or to both.
(5)The Comptroller may compound any offence under subsection (4).
(6)The generality of the term “reasonable excuse” in subsection (4) is not affected by subsection (2).
(7)Except as provided under subsection (2), it is not a defence to a charge under subsection (4) for a failure to provide any information demanded by an investigation officer that the person is under a duty of secrecy in respect of that information (called in this section a displaced duty of secrecy).
(8)A person who in good faith provides information demanded by an investigation officer under subsection (1) is not treated as being in breach of a displaced duty of secrecy.
(9)No civil or criminal action for a breach of a displaced duty of secrecy, other than a criminal action for an offence under subsection (10), lies against the person mentioned in subsection (8) for providing any information if the person had done so in good faith in compliance with a demand of an investigation officer under subsection (1).
(10)Any person who, in purported compliance with a demand of an investigation officer under subsection (1), provides any information known to the person to be false or misleading in a material particular —
(a) without indicating to the investigation officer that the information is false or misleading and the part that is false or misleading; and
(b) without providing correct information to the investigation officer if the person is in possession of, or can reasonably acquire, the correct information,
shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 or to imprisonment for a term not exceeding 2 years or to both.
Disposal of item furnished or seized
65K.—(1)Any item furnished to or seized by the Comptroller or an officer authorised by the Comptroller under section 65A or 65B must —
(a) where the item is produced in any criminal proceedings, be dealt with in accordance with section 364 of the Criminal Procedure Code 2010; or
(b) in any other case, be dealt with in accordance with subsections (2), (3) and (4).
(2)The Comptroller or an officer authorised by the Comptroller must serve a notice on the owner of the item instructing the owner to take custody of it within the period specified in the notice, which must be at least 5 days after the date of service of the notice.
(3)If the owner fails to take custody of the item within the period specified in the notice, or where the owner is unknown or cannot be found, then —
(a) if the item is a document (other than one specified in paragraph (d) or (e) of the definition of “document” in section 65B(3E)), the item may be disposed of in such manner as the Comptroller directs; or
(b) if the item is anything not specified in paragraph (a), the Comptroller must make a report of this to a Magistrate.
(4)The Magistrate to whom a report is made under subsection (3)(b) may order the item to be forfeited or disposed of in such manner as the Magistrate thinks fit.
(5)This section does not affect any right to retain or dispose of any item which may exist in law apart from this section.
Returns to be deemed to be furnished by due authority
66.—(1)A return, statement or form purporting to be furnished under this Act by or on behalf of any person is for all purposes deemed to have been furnished by that person or by that person’s authority (as the case may be) unless the contrary is proved.
(2)Any person signing any such return, statement or form is deemed to be cognizant of all matters therein.
Keeping of books of account and giving of receipts
67.—(1)Subject to subsection (3), every person carrying on or exercising any trade, business, profession or vocation —
(a) must keep and retain in safe custody sufficient records for a period of 5 years from the year of assessment to which any income relates to enable the person’s income and allowable deductions under this Act to be readily ascertained by the Comptroller or any officer authorised in that behalf by the Comptroller; and
(b) must, if the gross receipts from such trade, business, profession or vocation in the preceding calendar year exceeded $18,000 from the sale of goods, or $12,000 from the performance of services, issue a printed receipt serially numbered for every sum received in respect of goods sold or services performed in the course of or in connection with such trade, business, profession or vocation, and must retain a duplicate of every such receipt.
(2)Where a machine is used for recording sales, a receipt may be dispensed with if the Comptroller is satisfied that —
(a) such machine automatically records all sales made; and
(b) the total of all sales made in each day is transferred at the end of the day to a record of sales.
(3)The Comptroller may by written notice to any person carrying on or exercising any trade, business, profession or vocation, or by a notice in the Gazette in respect of any class or description of any such person, prescribe —
(a) the form of the records to be kept under subsection (1)(a), and the manner in which such records must be kept and retained; and
(b) the form of the receipts to be issued and the duplicates to be retained under subsection (1)(b), and the manner in which such receipts must be issued and such duplicates must be retained,
and every such person is bound to comply with such notice.
(4)The Comptroller may waive all or any of the provisions of subsection (1) in respect of any person or records or any class or description of persons or records.
(5)In this section, “records” includes —
(a) books of account recording receipts or payments or income or expenditure;
(b) invoices, vouchers, receipts, and such other documents as in the Comptroller’s opinion are necessary to verify the entries in any books of account; and
(c) any records relating to any trade, business, profession or vocation.
Official information and secrecy, and returns by employer
68.—(1)The Comptroller may require any officer in the employment of the Government or of any public authority or body corporate constituted by statute to supply such particulars as may be required for the purposes of this Act and which may be in the possession of the officer.
(1A)No such officer is by virtue of this section obliged to disclose any particulars as to which he or she is under any statutory obligation to observe secrecy.
(2)The Comptroller may, by notice in the Gazette, require every employer to prepare and deliver to the Comptroller or any person specified in the notice, for any year specified in the notice and within the time limited thereby, a return in such form as the Comptroller may determine containing —
(a) the names and places of residence of such classes of persons employed by the employer as may be specified in the notice; and
(b) the full amount of remuneration, whether in cash or otherwise, paid or payable to those persons in respect of such employment,
and every employer is bound to comply with any such notice within the time for compliance limited thereby, or such extended time as the Comptroller may allow.
(2A)It is not necessary to deliver nil returns under subsection (2).
(2B)Where an employer has granted an individual, other than a director to whom subsection (2C) applies, any right or benefit to acquire shares in any company incorporated in Singapore, the employer must submit a return in the form and manner specified in subsection (2) including any gain or profit derived by the individual as computed under section 10(6), even if the individual has ceased to be employed by the employer at the time the gain or profit is derived.
(2C)Where an employer, being a company, has granted a director of the company who is not resident in Singapore any right or benefit to acquire shares in any company incorporated in Singapore, the employer must submit a return, in such form as the Comptroller may determine, of any gain or profit derived by the non‑resident director when the right or benefit is exercised, assigned, released or acquired as computed under section 10(6) within 30 days of such exercise, assignment, release or acquisition (as the case may be), even if the non‑resident director may have ceased to be employed by the company at the time the gain or profit is derived.
(3)Where the employer is a company or a body of persons, the manager or principal officer is deemed to be the employer for the purposes of this section, and any director of a company, or person engaged in the management of a company, is deemed to be a person employed.
(4)Where an employer commences to employ in Singapore an individual who is or is likely to be chargeable to tax under section 10(1)(b), the employer must give written notice thereof to the Comptroller not later than 3 months after the date of commencement of such employment, stating the full name and address of the individual, the date of commencement and the terms of employment.
(5)Where an employer ceases or is about to cease to employ in Singapore an individual who is not a citizen of Singapore and who is or is likely to be chargeable to tax under section 10(1)(b), the employer must give written notice thereof to the Comptroller not later than one month before such individual ceases to be employed in Singapore, stating the name and address of the individual and the expected date of cessation.
(6)The employer of any individual who is chargeable to tax under section 10(1)(b) and who is to the knowledge of such employer about to leave or intending to leave Singapore for any period exceeding 3 months, must give written notice to the Comptroller of the expected date of departure of such individual. Such notice must be given not later than one month before the expected date of departure.
(6A)Subsection (6) does not apply in the case of an individual who is required in the course of his or her employment to leave Singapore at frequent intervals or who is a citizen of Singapore.
(7)Where an employer has in the employer’s possession any moneys whatsoever which are or may be payable to or for the benefit of an employee who has ceased or is about to cease to be employed by the employer in Singapore, the employer must not, without the Comptroller’s permission, pay any part of such moneys to or for the benefit of such employee until the expiry of 30 days after the receipt by the Comptroller of such notice as is required to be given under subsection (5).
(8)Where any person ceases or is about to cease being a partner, and such person is likely to be chargeable to tax in Singapore, the partners present in Singapore must, unless it is impracticable to do so, give one month’s notice in writing to the Comptroller before such person ceases to be a partner, stating the name and address of such person and the expected date of such person ceasing to be a partner.
(9)Where any partner is leaving or intending to leave Singapore for any period exceeding 3 months and is likely to be chargeable to tax in Singapore, the partners present in Singapore must, unless it is impracticable to do so, give one month’s notice in writing to the Comptroller of the expected date of departure of such partner.
(10)Subsection (9) does not apply in the case of a partner who is required in the course of the partner’s business to leave Singapore at frequent intervals.
(11)Where any person who has ceased or is about to cease being a partner in Singapore has moneys due or payable to that person from the partnership, the partners present in Singapore must not, without the Comptroller’s written permission, pay such moneys or any part thereof to that person.
(12)The Comptroller may under subsection (5), (6), (8) or (9), in any particular case or class of cases —
(a) accept such shorter period of notice as the Comptroller may consider reasonable;
(b) accept the notice mentioned in that subsection within such time after the occurrence of the event mentioned in that subsection as the Comptroller may consider reasonable; or
(c) waive the requirement for a notice under that subsection subject to conditions.
(13)Subsection (5), (6), (8) or (9) (as the case may be) applies to a case to which subsection (12)(a) applies as if the reference to the period of one month is a reference to the shorter period.
(14)In a case where subsection (12)(b) applies, the employer or partners (as the case may be) need not comply with subsection (5), (6), (8) or (9) (as the case may be) but must, within the time mentioned in subsection (12)(b), give notice to the Comptroller of —
(a) in the case of subsection (5), the name and address of the individual and the actual date of cessation of the individual’s employment;
(b) in the case of subsection (6), the actual date of departure of the individual;
(c) in the case of subsection (8), the name and address of the person and the actual date of the person’s cessation as a partner; or
(d) in the case of subsection (9), the actual date of departure of the partner.
Duty to collect and retain information of certain persons, etc.
68A.—(1)The Minister may make rules under section 7 to prescribe a class of persons to whom this section applies.
(2)The Comptroller may —
(a) by written notice require any person (X) that falls within a prescribed class of persons to collect, keep and retain in safe custody for a specified period not exceeding 5 years, specified identification information and income information of any person or each person within a class (Y) (including information of any outgoings and expenses incurred by Y) that entered into an agreement or arrangement of a specified description with X for Y to carry on any trade, business, profession or vocation for which Y derives income chargeable to tax under this Act; and
(b) by written notice to X, require X to provide the Comptroller or any person specified in the written notice, any information retained under paragraph (a) in the form and manner and within the time specified in the notice, or any extension of such time by the Comptroller in any particular case.
(3)Any person who, without reasonable excuse, fails to comply with any requirement under subsection (2)(a) or (b) shall be guilty of an offence.
(4)In this section, “person” includes a partnership, and the reference in subsection (2)(a) to income of Y that is chargeable to tax is, in a case where Y is a partnership, to the income of the partners of Y.
Lists to be prepared by representative or agent
69.Every person (X) who, in whatever capacity, is in receipt of any money or value being income arising from any of the sources mentioned in this Act of or belonging to any other person (Y) who is chargeable in respect thereof, or who would be so chargeable if Y were resident in Singapore and not an incapacitated person, must whenever required to do so by any notice from the Comptroller, prepare and deliver within the period mentioned in the notice a return signed by X, containing —
(a) a true and correct statement of all such income; and
(b) the name and address of every person to whom the income belongs.
Occupiers to furnish return of rent payable
70.The Comptroller may give written notice to any person (X) who is the occupier of any land or premises requiring X to furnish within the time limited by such notice, not being less than 30 days from the date of service of such notice, a return containing —
(a) the name and address of the owner of such land or premises or the name and address of the person to whom X pays rent therefor; and
(b) a true and correct statement of the rent payable and any other consideration passing in respect of such occupation.
Return to be made by partnership
71.—(1)Where a trade, business, profession or vocation is carried on by 2 or more persons jointly, the precedent partner, that is to say, the partner who, of the partners personally present in Singapore —
(a) is first named in the agreement of partnership;
(b) if there is no agreement, is specified by name or initial singly or with precedence to the other partners in the usual name of the firm; or
(c) is the precedent acting partner if the partner named with precedence is not an acting partner,
must, when required by the Comptroller by written notice or by notice in the Gazette under section 62(1), make and deliver a return of the income of the partnership for any year, such income being ascertained in accordance with the provisions of this Act, and declare therein the names and addresses of the other partners in the firm together with the amount of the share of the income to which each partner was entitled for that year.
(2)Where —
(a) in the case of a limited partnership, no general partner is personally present in Singapore; or
(b) in the case of all other types of partnerships, no partner is personally present in Singapore,
the return must be made and delivered by the attorney, agent, manager or factor of the firm in Singapore.
(3)If a return in relation to the partnership for any year of assessment has not been made, the person required to make the return under subsection (1) or (2) (as the case may be) must, within 3 months after the end of the accounting period relating to that year of assessment, or such extended time as the Comptroller may allow, furnish to the Comptroller an estimate of the income from all sources of the partnership, and the names and identification numbers of all the partners together with the amount of the share of the income to which each partner was entitled for that year.
(3A)The Minister may, by rules made under section 7, exempt any person or class of persons from subsection (3), subject to such conditions as may be specified in the rules.
(4)In this section, “general partner” has the meaning given by the Limited Partnerships Act 2008.
71A.
PART 17
ASSESSMENTS AND OBJECTIONS
Comptroller to make assessments
72.—(1)The Comptroller must proceed to assess every person chargeable with tax as soon as may be after the expiry of the time allowed to such person for the delivery of the return provided for in section 62 or, if the person is exempted from the liability to deliver a return under section 62(2), after the expiry of the time that would have been allowed to the person for the delivery of the return if the person had not been so exempted.
(2)Where a person has delivered a return, the Comptroller may —
(a) accept the return and make an assessment accordingly; or
(b) refuse to accept the return and, to the best of the Comptroller’s judgment, determine the amount of the chargeable income of the person and make an assessment accordingly.
(3)Where a person has not delivered a return and the Comptroller is of the opinion that such person is liable to pay tax, the Comptroller may, according to the best of the Comptroller’s judgment, determine the amount of the chargeable income of such person and make an assessment accordingly, but such assessment does not affect any liability otherwise incurred by such person by reason of the person’s failure or neglect to deliver a return.
Advance assessments
73.—(1)Despite section 72, where —
(a) in any year of assessment a person ceases to carry on a trade, business, profession, vocation or employment; or
(b) the Comptroller is of the opinion that any person possessing a source of income is about to leave Singapore and is likely to cease to possess that source in the year of assessment in which the person leaves Singapore or in the following 2 years,
the Comptroller may make such assessment or additional assessments as may be necessary to bring to charge the full amount of the income from all sources derived or to be derived by such person up to the year in which the source of income ceases or is likely to cease.
(2)Where the income of a person is ascertained under section 27, the Comptroller may make an assessment in respect of any income of such person within the year in which the income is deemed to accrue.
(2A)Despite any other provisions of this Act, the Comptroller may make an assessment on an individual to whom section 10(7B) or (7C) applies within the year in which the income accrues or is deemed to accrue to the individual, as the case may be.
(2B)Despite any other provisions of this Act, where income accrues under section 10(6) to a director of a company who is not resident in Singapore, the Comptroller may make an assessment in respect of that income within the year in which the income accrues to the director.
(3)The Comptroller may, if he or she thinks fit, at any time during any year make an assessment in respect of the income derived by any person carrying on or exercising any trade, business, profession or vocation up to that year.
(3A)In making an assessment under subsection (3), the Comptroller may have regard to the estimate of chargeable income furnished under section 63 or he or she may make an assessment according to the best of his or her judgment where such estimate of chargeable income has not been furnished or has been rejected by him or her.
(4)Where the Comptroller has exercised his or her powers to make an advance assessment under this section, such assessment must be made on the assumption that —
(a) the provisions of this Act in force during the year of assessment in which such assessment is made will continue in force for the year of assessment for which such assessment is made; and
(b) if such person so assessed is an individual, the personal circumstances of that person will be the same in the year of assessment as they were when such assessment is in fact made.
(5)If it appears to the Comptroller that by reason of such assumption an advance assessment so made has become less favourable to that person than it would have been if made under section 35(1), the Comptroller must amend such assessment as to the Comptroller seems reasonable.
(6)This section does not affect the Comptroller’s right to make any additional assessment due to any change of circumstances and without prejudice to the generality of section 74.
Additional assessments
74.—(1)Where it appears to the Comptroller that any person liable to tax has not been assessed or has been assessed at a less amount than that which ought to have been charged, the Comptroller may, within the year of assessment or within 6 years (if the year of assessment is 2007 or a preceding year of assessment) or 4 years (if the year of assessment is 2008 or a subsequent year of assessment) after the expiry of that year of assessment, assess that person at such amount or additional amount as according to the Comptroller’s judgment ought to have been charged.
(2)Despite subsection (1), where, in the Comptroller’s opinion, any form of fraud or wilful default has been committed by or on behalf of any person in connection with or in relation to tax, the Comptroller may, for the purpose of making good any loss of tax attributable to fraud or wilful default, assess that person at any time.
(2A)Despite subsection (1), an assessment under that subsection may be made at any time if it is carried out pursuant to an agreement with an authority of a country outside Singapore, that is made in accordance with the procedure under an avoidance of double taxation arrangement with the government of that country, for resolving difficulties or doubts arising out of the interpretation or application of that arrangement (commonly called a mutual agreement procedure).
(2B)Subsection (2A) applies to —
(a) an agreement (other than one mentioned in paragraph (b)) entered into on or after 26 October 2017; and
(b) an agreement on the appropriate criteria to be used to ascertain the transfer pricing of a person’s transactions with the person’s related parties over a specified period (commonly called an advance pricing arrangement), entered into on or after 16 November 2021.
(3)The provisions of this Act as to notice of assessment, appeal and other proceedings under this Act apply to any assessment or additional assessment made under subsection (1) or (2) and to tax charged thereunder.
(4)This section also applies, with the necessary modifications, to any assessment made under subsection (1) or (2) which results in any unabsorbed allowances or losses.
(5)To avoid doubt, the Comptroller may also make an assessment under this section on a person in a case where —
(a) the Comptroller made an advance assessment on the person for a year of assessment; and
(b) because of a subsequent amendment to any written law that applies retroactively to that year of assessment, the person becomes liable to a higher amount of tax.
(6)In this section, “avoidance of double taxation agreement” means an arrangement having effect under section 49.
Revised assessments as relief for late GST registration
74A.Where —
(a) any person liable to tax, being required to be registered under the Goods and Services Tax Act 1993, has failed to do so, and has been so registered on or after 1 December 2005; and
(b) the person’s income chargeable to tax for any year of assessment relating to a basis period for which the person ought to have been so registered includes an amount in respect of output tax paid or payable under the Goods and Services Tax Act 1993,
the Comptroller must according to the best of the Comptroller’s judgment give, by way of revision of any assessment made on the person for that year of assessment, relief in respect of the amount so paid or payable.
Waiver of small assessments
75.Where it appears to the Comptroller that the amount of any tax or additional tax to which any person is liable does not exceed $15 or such other amount as the Minister may by order prescribe, the Comptroller may waive the assessment of such tax.
Service of notices of assessment and revision of assessment
76.—(1)The Comptroller must cause each person assessed to tax to be served, in accordance with section 8(1), with —
(a) where tax is payable, a notice stating the amount of the person’s chargeable income together with the amount of tax payable and the place at which such payment should be made; or
(b) where no tax is payable, a notice to that effect,
and in either case the Comptroller must inform the person assessed to tax of the person’s rights under subsections (2) and (3) and (if applicable) the person’s duty under subsection (8).
(2)If any person disputes the assessment, the person may apply to the Comptroller, by written notice of objection, to review and to revise the assessment made upon the person.
(2A)If the objection is made to any assessment, being one which —
(a) is made on or after 20 December 2011; and
(b) amends a previous assessment in any particular,
then a person’s right to object to the assessment is limited to a right to object against the amendment in respect of, or matters relating to, that particular.
(2B)In subsection (2A), the reference to an assessment which amends a previous assessment in any particular includes one which amends the amount of unabsorbed losses, allowances or donations in that previous assessment that may be carried forward but the tax payable remains nil.
(3)Such application must state precisely the grounds of the person’s objections to the assessment and must be made within —
(a) if the person is a company and the notice of assessment is served on the person on or after 1 January 2014, 2 months; or
(b) in any other case, 30 days,
from the date of the service of the notice of assessment.
(4)The Comptroller upon being satisfied that, owing to absence, sickness or other reasonable cause, the person disputing the assessment was prevented from making the application within the period referred to in subsection (3), must extend the period as may be reasonable in the circumstances.
(5)On receipt of the notice of objection mentioned in subsection (2), the Comptroller may —
(a) require the person giving the notice of objection to furnish such particulars as the Comptroller may consider necessary with respect to the person’s income assessed and to produce all books or other documents in the person’s custody or under the person’s control relating to such income; and
(b) summon any person who the Comptroller thinks is able to give evidence respecting the assessment to attend before the Comptroller and may examine that person on oath or otherwise.
(6)In the event of any person who has objected to an assessment made upon that person —
(a) agreeing with the Comptroller as to the amount at which that person is liable to be assessed, the assessment must be amended accordingly, and notice of the revised assessment must be served upon that person; or
(b) failing to agree with the Comptroller as to the amount at which that person is liable to be assessed, the Comptroller must give that person notice of refusal to amend the assessment and may revise the assessment to such amount as the Comptroller may determine, according to the best of the Comptroller’s judgment, and the Comptroller must give that person notice of the revised assessment and of the tax payable, or the amount of refund of tax (as a result of the operation of section 46) or unabsorbed allowances, losses or donations, together with notice of refusal to amend the revised assessment.
(7)Wherever requisite, any reference in this Act to an assessment or an additional assessment includes a reference to an assessment or additional assessment as revised under subsection (6)(b).
(8)If any incorrect information appears in a notice of assessment for any year of assessment served on a person who is exempted from the liability to furnish a return under section 62(2), the person must, within 30 days from the date of service of the notice or such extended time as the Comptroller may allow, inform the Comptroller by written notice —
(a) if the incorrect information relates to any understatement or omission of income, of the correct amount of income from every source for that year of assessment; or
(b) if the incorrect information relates to any deduction or relief which is excessive or which is wrongly granted, of the correct amount of deduction or relief for that year of assessment or the fact that the deduction or relief is wrongly granted, as the case may be.
(9)The Minister may, by rules made under section 7, substitute a longer period for a period in subsection (3) or (8) for all persons or cases, any class of persons or cases, or any person or case, and subsection (3) or (8) (as the case may be) applies accordingly to all persons or cases, the class of persons or cases, or the person or case.
(10)The rules mentioned in subsection (9) may —
(a) provide that the substitute period applies only if such conditions as may be specified in the rules are satisfied; and
(b) prescribe different substitute periods for different persons or cases and classes of persons or cases.
Errors and defects in assessment and notice
77.—(1)No assessment, warrant or other proceeding purporting to be made in accordance with the provisions of this Act is to be quashed, or is deemed to be void or voidable, for want of form, or is affected by reason of a mistake, defect or omission therein, if it is in substance and effect in conformity with or according to the intent and meaning of this Act, and if the person assessed or intended to be assessed or affected thereby is designated therein according to common intent and understanding.
(2)An assessment must not be impeached, and is not affected —
(a) by reason of a mistake therein as to —
(i) the name or surname of a person liable;
(ii) the description of any income; or
(iii) the amount of tax charged; and
(b) by reason of any variance between the assessment and the notice thereof.
(3)In cases of assessment, the notice thereof must be duly served on the person intended to be charged and such notice must contain in substance and effect the particulars on which the assessment is made.
PART 18APPEALS
Board of Review
78.—(1)For the purpose of hearing appeals in the manner hereinafter provided, there is to be a Board of Review (called in this Part the Board) consisting of not more than 30 members appointed from time to time by the Minister.
(2)Members of the Board hold office for such period as may be determined by the Minister and are eligible for re‑appointment.
(3)The Minister may at any time remove any member of the Board from office without assigning any reason.
(4)A member may resign his or her office by written notice to the Minister.
(5)The Minister may appoint from amongst the members of the Board —
(a) a Chairperson of the Board; and
(b) such number of Deputy Chairpersons of the Board as the Minister thinks fit.
(6)No person may be appointed as Chairperson of the Board or Deputy Chairperson of the Board unless the person is either qualified to be a District Judge or is an accountant.
(7)The Minister may appoint any Deputy Chairperson of the Board as a temporary Chairperson of the Board during the temporary incapacity (from illness or otherwise) or absence of the Chairperson of the Board.
(8)The Minister may appoint a secretary or secretaries to the Board and such other officers and employees of the Board as may be necessary.
(9)All the powers, functions and duties of the Board may be exercised, discharged and performed by any committee of the Board consisting of not less than 3 members of the Board appointed by the Chairperson of the Board, at least one of whom must be the Chairperson of the Board or a Deputy Chairperson of the Board.
(10)However, the Chairperson of the Board may, having regard to the facts and circumstances of a particular case, appoint a single member of the Board, being the Chairperson or a Deputy Chairperson of the Board, to exercise, discharge and perform the powers, functions and duties of the Board for that case.
(11)Any act, finding or decision of any such committee or member is deemed to be the act, finding or decision of the Board, and (unless the context otherwise requires) any reference to the Board in this Act is to such committee or member.
(12)The secretary must inform each member appointed under subsection (9) or (10) of his or her appointment, and it is the duty of the member to attend any proceedings specified by the secretary.
(13)
(14)All matters coming before the Board or a committee of the Board at any sitting thereof must be decided by a majority of votes of the members of the Board present, and, in the event of an equality of votes, the Chairperson of the Board, the Deputy Chairperson of the Board or such other member as may be presiding (as the case may be) has a second or casting vote.
(15)Members of the Board are entitled to receive such fees and allowances as the Minister may determine.
(16)The Minister may make regulations —
(a) prescribing any matter required or permitted to be prescribed under this Part;
(b) providing for the form and manner in which appeals are to be made to the Board;
(c) providing for when an objection to the appointment of a member under subsection (9) or (10) to hear an appeal may be made, and how such objection is to be dealt with;
(d) providing for the procedure to be adopted by the Board for the Board’s meetings and for proceedings before the Board, and the records to be kept by the Board;
(e) prescribing the fees to be paid in respect of any appeal under this Part;
(f) prescribing the costs in respect of appeals to the Board;
(g) providing for any matter which the Minister considers incidental or expedient for the proper and efficient conduct of proceedings before the Board;
(h) providing that the Chairperson or a Deputy Chairperson of the Board may issue directions for carrying out any regulations; and
(i) providing for any other matter that is necessary or convenient for carrying out or giving effect to the provisions of this Part.
Right of appeal
79.—(1)Any person who, being aggrieved by an assessment made upon the person, has failed to agree with the Comptroller in the manner provided in section 76(6) may appeal to the Board by lodging with the secretary —
(a) within 30 days after the date of the Comptroller’s refusal to amend the assessment, a notice of appeal; and
(b) within 30 days after the date on which the notice of appeal was lodged, a petition of appeal containing a statement of the grounds of appeal.
(2)The notice of appeal and petition of appeal must be made in the form and manner prescribed in the regulations under section 78(16).
(3)The notice of appeal is deemed to be withdrawn if no petition of appeal containing a statement of the grounds of appeal is lodged with the secretary in accordance with subsection (1)(b).
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)The Chairperson of the Board may, in his or her discretion and on such terms as he or she thinks fit, permit any person to proceed with an appeal even if the notice of appeal or petition of appeal was not lodged within the time limited therefor by this section, if it is shown to the Chairperson’s satisfaction that the person was prevented from lodging the notice or petition in due time owing to absence, sickness or other reasonable cause and that there has been no unreasonable delay on the person’s part.
(12)Except with the consent of the Board and on such terms as the Board may determine, an appellant may not at the hearing of the appellant’s appeal rely on any grounds of appeal other than the grounds stated in the appellant’s petition of appeal.
Hearing and disposal of appeals
80.—(1)On receipt of a petition of appeal, the secretary must immediately forward one copy of it to the Comptroller, and must —
(a) as soon as possible thereafter fix the hearing; and
(b) not later than 14 days before the hearing (or such shorter period as the appellant and the Comptroller may agree), give notice of the hearing of the appeal to both the appellant and the Comptroller.
(2)The appellant and the Comptroller may be represented by an advocate and solicitor or an accountant (but by no one else) at a hearing of an appeal before the Board.
(3)The Board may for any reasonable cause postpone the hearing of an appeal for such reasonable time as the Board thinks necessary.
(4)The onus of proving that the assessment is excessive or that the amount of any unabsorbed losses, allowances or donations that may be carried forward ought to be of a higher amount than that assessed (as the case may be), is on the appellant.
(5)The Board has the following powers:
(a) to summon to attend at the hearing of an appeal any person whom it may consider able to give evidence respecting the appeal, to examine such person as a witness either on oath or otherwise and to require such person to produce such books, papers or documents as the Board may think necessary for the purposes of the appeal;
(b) to allow any person so attending any reasonable expenses necessarily incurred by the person in so attending; such expenses form part of the costs of the appeal and, pending and subject to any order by the Board as to such costs, must be paid by the appellant or the Comptroller, as the Board may direct;
(c) all the powers of a District Court with regard to the enforcement of attendance of witnesses, hearing evidence on oath and punishment for contempt;
(d) subject to section 79(12), to admit or reject any evidence adduced, whether oral or documentary and whether admissible or inadmissible under the provisions of any written law for the time being in force relating to the admissibility of evidence.
(5A)Pursuant to subsection (5)(c), the Board may issue to a Superintendent of Prisons appointed under section 20 of the Prisons Act 1933, an order to the same effect as an order under section 38 of that Act, for the purpose of producing a prisoner for examination before the Board.
(6)Every person examined as a witness by or before the Board, whether on oath or otherwise, is legally bound to state the truth and to produce such books, papers or documents as the Board may require.
(7)The costs of an appeal are in the discretion of the Board and must either be fixed by the Board or, on the order of the Board, assessed by the Registrar, the Deputy Registrar or an Assistant Registrar of the Supreme Court, in accordance with regulations made under section 78(16).
(8)Where the Comptroller is awarded costs of an appeal, the Comptroller is entitled to his or her full costs of the appeal, including a fee for any counsel appearing on the Comptroller’s behalf in the appeal, and the amount of such costs is to be added to the tax charged (if any) and is recoverable as if it were tax imposed under this Act and payable by the appellant.
(9)Despite anything in section 85, the Board may, on the application of the Comptroller made at any time after notice of appeal has been given, require the appellant to furnish security, in such sum and within such time as may be specified, for payment of tax, and if security is not furnished in the sum and within the time specified, the tax assessed by the Comptroller becomes payable and recoverable immediately.
(10)The Board may, after hearing an appeal, confirm, reduce, increase or annul the assessment (including the amount of any unabsorbed losses, allowances or donations that may be carried forward) or make such order thereon as it thinks fit.
(11)
(12)Every member of the Board, when and so long as he or she is acting as such, is deemed to be a public servant within the meaning of the Penal Code 1871 and enjoys the same judicial immunity as is enjoyed by a District Judge.
(13)All proceedings in appeals to the Board under this Act are deemed to be judicial proceedings within the meaning of the Penal Code 1871.
(14)Notice of the amount of tax payable under the assessment as determined by the Board must be served by the Comptroller either personally or by registered post upon the appellant.
(15)Regulations made under section 78(16) may provide for the conduct of proceedings before the Board through electronic communication, video conferencing, tele-conferencing or other electronic means, under specified circumstances.
(16)A member of the Board before whom proceedings are conducted in the manner described in subsection (15) in those specified circumstances is deemed to be present and sitting at those proceedings.
Hearing of appeal by committee where member becomes unavailable
80A.—(1)This section applies to an appeal before a committee of the Board, and a reference in this section to a member of the Board is to a member of the Board that is part of the committee.
(1A)Despite anything in this Part, if —
(a) in the course of an appeal or in the case of a reserved judgment in any appeal; or
(b) after an appeal has been determined but before the making of any ancillary order,
any member of the Board hearing the appeal resigns or is unable because of illness or any other cause, to continue to hear or determine the appeal or to make the ancillary order, the remaining members of the Board (if 2 or more) must hear or determine the appeal or make the ancillary order, unless any party objects.
(2)In subsection (1A), the Board is deemed to be duly constituted for the purposes of the appeal despite the member’s resignation or inability to act.
(3)Despite section 78(14), in a case under subsection (1A) —
(a) where there are more than 2 members of the Board remaining, the appeal is to be decided or the ancillary order is to be made in accordance with the decision of the majority of the remaining members of the Board and, if there is an equality of votes, the Chairperson of the Board or, in the Chairperson’s absence, the member presiding has a second or casting vote; or
(b) where there are only 2 members of the Board remaining, the appeal is to be decided or the ancillary order is to be made in accordance with the unanimous decision of both members.
(4)In the case in subsection (1A)(a), the appeal must be reheard —
(a) if any party objects to the proceedings continuing before the remaining members of the Board under subsection (1A); or
(b) if the appeal is heard or determined by only 2 remaining members of the Board and they are unable to reach a unanimous decision.
(5)In the case in subsection (1A)(b), another committee of the Board (which may include the remaining members of the Board) is to be constituted under section 78(9) to make the ancillary order if —
(a) any party objects to the remaining members of the Board making the ancillary order; or
(b) the order is to be made by only 2 remaining members of the Board and they are unable to reach a unanimous decision.
Hearing of appeal by single member where member becomes unavailable
80B.—(1)Despite anything in this Part, if an appeal is before a single member of the Board, and —
(a) in the course of an appeal or in the case of a reserved judgment in any appeal; or
(b) after an appeal has been determined but before the making of any ancillary order,
the member of the Board hearing the appeal resigns or is unable because of illness or any other cause, to continue to hear or determine the appeal or to make the ancillary order, the Chairperson of the Board is to appoint another member of the Board in accordance with section 78(10) to hear and determine the appeal or to make the ancillary order.
(2)In the case in subsection (1)(a), the member of the Board appointed under subsection (1) must rehear the appeal if —
(a) any party objects to the proceedings continuing before the member; or
(b) the member determines that it would be in the interests of justice to do so.
Appeals to General Division of High Court
81.—(1)Except as provided in this section, the decision of the Board is final.
(2)In any case in which the amount of tax payable, tax to be refunded as a result of the operation of section 46 or notional tax benefit, as determined by the Board (excluding the amount of any costs awarded) exceeds $200, the appellant or the Comptroller may appeal to the General Division of the High Court from the decision of the Board upon any question of law or of mixed law and fact.
(3)The procedure governing and the costs of any such appeal to the General Division of the High Court are as provided for in the Rules of Court.
(4)The General Division of the High Court is to hear and determine any such appeal and may confirm, reduce, increase or annul the assessment (including the amount of any unabsorbed losses, allowances or donations that may be carried forward) determined by the Board and make such further or other order on such appeal, whether as to costs or otherwise, as the General Division of the High Court may think fit.
(5)There is to be such further right of appeal from decisions of the General Division of the High Court under this section as exists in the case of decisions made by the General Division of the High Court in the exercise of its original civil jurisdiction.
(6)
(7)In this section, “notional tax benefit”, in relation to a year of assessment, means an amount ascertained in accordance with the formula
where A1
is the amount of unabsorbed losses as at the end of the basis period for the year of assessment claimed by a person;
A2
is the amount of unabsorbed allowances under section 16, 17, 18B, 18C, 19, 19A, 19B, 19C, 19D or 20 claimed by the person for the year of assessment;
A3
is the amount of unabsorbed donations as at the end of the basis period for the year of assessment claimed by the person;
B1
is the amount of unabsorbed losses as at the end of the basis period for the year of assessment as determined by the Comptroller;
B2
is the amount of unabsorbed allowances under section 16, 17, 18B, 18C, 19, 19A, 19B, 19C, 19D or 20 for the year of assessment as determined by the Comptroller;
B3
is the amount of unabsorbed donations as at the end of the basis period for the year of assessment as determined by the Comptroller; and
C
is —
(a) in the case of an individual resident in Singapore, the highest rate of tax specified in Part A of the Second Schedule in respect of the year of assessment; and
(b) in any other case, the rate of tax applicable to the person for the year of assessment as specified in section 43(1).
Cases stated for General Division of High Court
82.—(1)The Board may at any time and in regard to any appeal, with or without proceeding to the determination of the appeal, state a case on a question of law for the opinion of the General Division of the High Court.
(2)A stated case must set forth the facts and any finding of fact by the Board, the decision (if any) of the Board, and the question for the opinion of the General Division of the High Court, and must be signed by the officiating chairperson or, in the chairperson’s absence, by any other member attending the sitting at which the appeal was heard.
(3)The secretary must transmit the case, when stated and signed as aforesaid, to the General Division of the High Court, and must forward a copy thereof to the appellant and to the Comptroller.
(4)The General Division of the High Court may cause a stated case to be sent back for amendment and thereupon the case must be amended accordingly.
(5)In considering any stated case, the General Division of the High Court is to afford opportunity for argument thereon to be put forward by or on behalf of the appellant and the Comptroller.
(6)The General Division of the High Court is to hear and determine any question of law arising on a stated case and may in accordance with its decision thereon confirm, reduce, increase or annul any assessment (including the amount of any unabsorbed losses, allowances or donations that may be carried forward) determined by the Board in the appeal, or may remit the case to the Board with the opinion of the General Division of the High Court thereon.
(7)Where a case is so remitted by the General Division of the High Court, the Board is bound by the opinion of the General Division of the High Court and must give effect thereto by its decision in the appeal or (as the case may be) by revising any previous decision made by it in the appeal to the extent (if any) to which that previous decision does not accord with the opinion of the General Division of the High Court.
Proceedings before Board
83.—(1)Subject to subsections (2) and (3), all proceedings before the Board must be heard in private.
(2)Where the Comptroller or the taxpayer applies to the Board that the proceedings be heard by way of a hearing open to the public, the Board may direct that the proceedings be so heard, despite any objection from the other party to the proceedings.
(3)Where in the opinion of the Board any proceedings heard in private ought to be reported, the Board may publish or authorise the publication of the facts of the case, the arguments and the decision relating to these proceedings without disclosing the name of the taxpayer concerned.
Assessments to be final and conclusive
84.—(1)Except as expressly provided in this Act, where no valid notice of appeal has been lodged within the time limited by this Part against an assessment, or where an assessment has been determined on appeal, the assessment as made or agreed to under section 76(6), or determined on appeal (as the case may be) is final and conclusive for the purposes of this Act.
(2)This section does not prevent the Comptroller from making any assessment or additional assessment under section 74 which does not involve reopening any matter which has been determined on appeal.
PART 19
COLLECTION, RECOVERY AND REPAYMENT OF TAX
Time within which payment is to be made
85.—(1)Subject to section 91, tax for any year of assessment levied in accordance with the provisions of this Act is, despite any objection or appeal against the assessment on which the tax is levied, payable at the place stated in the notice given under section 76 within one month after the service of the notice.
(2)The Comptroller may, in his or her discretion and subject to such terms and conditions, including the imposition of interest, as he or she may impose, extend the time limit within which payment is to be made.
Recovery of tax from persons leaving Singapore
86.—(1)Where the Comptroller is of the opinion that any person is about or likely to leave Singapore without paying all tax assessed upon the person, the Comptroller may issue a certificate containing particulars of such tax and a direction to the Commissioner of Police or the Controller of Immigration, or both, that such person be prevented from leaving Singapore without paying the tax or furnishing security to the Comptroller’s satisfaction for payment thereof.
(2)Subject to the provisions of any order issued or made under any law for the time being in force relating to banishment or immigration, the Commissioner of Police or the Controller of Immigration, or both, as the case may be, must thereupon take, or cause to be taken by any police officer or immigration officer, such measures as may be necessary to prevent the person named in the direction from leaving Singapore until payment of the tax has been made or secured as aforesaid, including the use of such force as may be necessary and, if appropriate, the detention of any passport, certificate of identity or travel document and any exit permit or other document authorising such person to leave Singapore.
(3)At the time of issue of the certificate, the Comptroller must issue to such person a notification thereof; but the non‑receipt thereof does not invalidate any proceedings under this section.
(4)Payment of the tax to an officer in charge of a police station or to an immigration officer or production of a certificate signed by the Comptroller, a Deputy Comptroller or an Assistant Comptroller stating that the tax has been paid or secured is sufficient authority for allowing such person to leave Singapore.
(5)Any person who, knowing that a direction has been issued under this section for the prevention of the person’s departure from Singapore, voluntarily leaves or attempts to leave Singapore without paying all tax assessed upon the person or furnishing security to the Comptroller’s satisfaction for payment thereof shall be guilty of an offence and may be arrested, without warrant, by any police officer or immigration officer.
(6)No civil or criminal proceedings may be instituted or maintained against the Government, the Commissioner of Police, the Controller of Immigration or any other police officer or immigration officer, in respect of anything lawfully done under the authority of this section.
(7)In this section, “tax” includes any interest imposed under section 85(2).
Penalty for non‑payment of tax and enforcement of payment
87.—(1)Subject to subsection (2), if any tax is not paid within the periods prescribed in section 85 —
(a) a sum equal to 5% of the amount of tax payable is added thereto, and the provisions of this Act relating to the collection and recovery of tax apply to the collection and recovery of such sum;
(b) the Comptroller must serve a demand note upon the person assessed and if payment is not made within one month from the date of the service of such demand note, the Comptroller may proceed to enforce payment as hereinafter provided;
(c) despite paragraphs (a) and (b), if the amount of tax outstanding is not paid within 60 days of the imposition of the penalty as provided by paragraph (a), an additional penalty of 1% of the tax outstanding is payable for each completed month that the tax remains unpaid, but the total additional penalty must not exceed 12% of the amount of tax outstanding, and the provisions of this Act relating to the collection and recovery of tax apply to the collection and recovery of such additional penalty; and
(d) penalties imposed under paragraphs (a), (b) and (c) are not deemed to be part of the tax paid for the purpose of claiming relief under any of the provisions of this Act.
(2)The Comptroller may for any good cause shown remit the whole or any part of the penalty due under subsection (1).
(3)In this section, “tax” includes any interest imposed under section 85(2).
Change of address
88.—(1)Subject to subsection (2), every person liable to pay income tax under the provisions of this Act must inform the Comptroller in writing of any change in the person’s address.
(2)Where a person liable to pay income tax uses his or her residential address for the purposes of this Act, then, if the person has changed his or her residential address and has made a report of the change under section 10 of the National Registration Act 1965 —
(a) the person is deemed to have informed the Comptroller of the change of his or her residential address in compliance with subsection (1); and
(b) the new residential address as reported by the person under section 10 of the National Registration Act 1965 is, unless the person informs the Comptroller in writing to the contrary, deemed to be his or her last known address for the purpose of subsection (3).
(3)Any notice or process given or served upon any person by posting the same or a copy thereof by registered post to the person at his or her last known address is, despite section 8(3), deemed to have been duly given or served and is conclusive evidence of the fact of service.
Suit for tax by Comptroller
89.—(1)Despite the provisions of any other written law, tax, interest and any penalty imposed under this Act and any sum due to the Government under section 45 or 45EA, may be sued for by way of a specially endorsed originating claim.
(2)The Comptroller may, in his or her own name, sue for any such tax, interest, penalty or other sum due and is entitled to all costs allowed by law against the person liable thereto.
(3)The Comptroller may appear personally or by counsel in any suit instituted under this section.
(4)In any suit under this section, the production of a certificate signed by the Comptroller giving the name and address of the defendant and the amount of tax, interest or penalty due by the defendant is sufficient evidence of the amount so due and sufficient authority for the court to give judgment for that amount.
(5)In addition to any other powers of collection and recovery provided in this Act, the Comptroller may, with the approval of the Minister and, where the tax charged on the income of any person who carries on the business of shipowner or charterer or of air transport has been in default for more than 3 months, whether the person is assessed directly or in the name of some other person, issue to the Director‑General of Customs, or other authority by whom clearance may be granted, a certificate containing the name or names of the person and particulars of the tax in default.
(6)On receipt of such a certificate, the Director‑General of Customs or other authority is empowered and required to refuse clearance from any port, aerodrome or airport in Singapore to any ship or aircraft owned wholly or partly or chartered by that person until the tax has been paid.
(7)No civil or criminal proceedings may be instituted or maintained against the Government, the Director‑General of Customs or other authority in respect of a refusal of clearance under this section, nor does the fact that a ship or an aircraft is detained under this section affect the liability of the owner, charterer, or agent to pay harbour or other dues and charges for the period of detention.
(8)In subsections (6) and (7), “ship” has the meaning given by section 2(1) of the Merchant Shipping Act 1995.
Statement of Comptroller sufficient
90.—(1)In any civil or criminal proceedings under this Act, every statement purporting to be under the hand of the Comptroller contained in the information, complaint, declaration or claim is prima facie evidence of the matter stated therein.
(2)This section applies to any matter so stated although —
(a) evidence in support or rebuttal of the matter stated or of any other matter is given; or
(b) the matter stated is a mixed question of law and fact, but in such case the statement is prima facie evidence of the fact only.
(3)This section does not apply to —
(a) a statement of the intent of the defendant; or
(b) proceedings for an offence punishable by imprisonment.
Deduction of tax from emoluments and pensions
91.—(1)Where any income chargeable under section 10(1)(b) or (e) is payable to any individual, deductions on account of tax which is or will be payable by the individual for any year of assessment must, if the Comptroller so directs, be made out of the income or any arrears thereof.
(2)Subject to any rules made under section 7, deductions authorised by this section must be made at such times and in such amounts as the Comptroller directs whether or not the tax has been assessed; except that if on the assessment becoming final and conclusive it appears that the deductions made exceed the tax payable, the tax overpaid by means of the previous deductions must be repaid.
(3)Where any deduction has been made from the income so chargeable of any individual, the individual has the same right of objection or appeal against the deduction as he or she has against an assessment made upon him or her.
(4)Any amount deducted pursuant to any direction given by the Comptroller under this section must be paid by the employer to the Comptroller within 10 days after the date of the deduction, and if any such amount is not paid —
(a) within that period of 10 days, a penalty equal to 5% of that amount is payable by the employer to the Comptroller;
(b) within one month after the date of the deduction, an additional penalty equal to 1% of that amount is payable by the employer to the Comptroller for each completed month that the amount remains unpaid, but the total additional penalty must not exceed 12% of the amount outstanding.
(5)The Comptroller may for any good cause shown remit the whole or any part of the penalty due under subsection (4).
(6)If and so far as any such income is paid without deduction of tax as aforesaid, the tax may be collected and payment thereof enforced in accordance with sections 85, 86 and 87.
(7)For the purpose of section 85, the Comptroller must determine the period within which the tax is payable.
(8)An employer who fails to comply with section 68(7) is liable to pay the full amount of the tax which by reason of such failure cannot be recovered from such employee.
(9)The Comptroller must apply any amount recovered by or paid to him or her in or towards payment of the tax payable by the employee.
(10)The employer may recover from the employee any amount which the employer has paid to the Comptroller or which has been recovered from the employer by the Comptroller under subsection (8).
(11)Any partner who fails to comply with section 68(11) is liable to pay the amount of the tax which by reason of such failure cannot be recovered from the person who has ceased to be a partner.
(12)The liability of a remaining partner under subsection (11) must not exceed the amount paid by that partner in contravention of section 68(11).
(13)Subsection (11) does not preclude a partner who pays any amount of tax under that subsection from recovering such amount from the person who has ceased to be a partner.
Remission, reduction or refund of tax
92.—(1)The Comptroller may remit, wholly or in part, the tax payable by any person on the ground of poverty.
(2)The Minister may at any time, in his or her discretion and subject to such conditions as the Minister may impose, remit, reduce or refund, wholly or in part, the tax that is or will be payable or that is paid by any person.
(2A)The Minister may, by order in the Gazette, remit, reduce or refund, wholly or in part, the tax that is or will be payable or that is paid by any class of persons, subject to such conditions as the Minister may specify in the order.
(2B)Where the Minister is satisfied that a person to whom a remission, reduction or refund of tax is granted fails to comply with any condition imposed under subsection (2) or (2A) (whether a condition precedent or condition subsequent), an amount equal to the amount of tax so remitted, reduced or refunded is recoverable as a debt due to the Government.
(2C)The amount recoverable under subsection (2B) is payable at the place stated in a notice served by the Comptroller on the person within one month after the service of the notice.
(2D)The Comptroller may, in his or her discretion and subject to such terms and conditions (including the imposition of interest) as the Comptroller may impose, extend the time limit within which payment is to be made.
(2E)Sections 86(1) to (6), 87(1) and (2), 89, 90 and 91 apply to the collection and recovery by the Comptroller of the amount recoverable under subsection (2B) and any interest imposed under subsection (2D) as they apply to the collection and recovery of tax.
(3)
(4)The Minister may make rules for the purpose of giving effect to this section.
Remission of tax of companies for year of assessment 2011
92A.—(1)Subject to subsection (2), there is to be remitted the tax payable for the year of assessment 2011 by a company an amount equal to the lower of —
(a) 20% of the tax payable for that year of assessment (excluding any tax levied and paid or payable pursuant to section 43(3), (3A) and (3B)); and
(b) $10,000,
where the Comptroller is satisfied that the remission of tax would be beneficial to the company.
(2)No remission under subsection (1) may be granted to a company where the company qualifies for the cash grant under section 92B.
Cash grant for companies for year of assessment 2011
92B.—(1)Where a company has made a contribution to the Central Provident Fund in respect of any of its employees during the basis period for the year of assessment 2011, and —
(a) the company is not liable to pay tax for the year of assessment 2011;
(b) the specified amount is greater than 20% of the tax payable by the company for that year of assessment (excluding any tax levied and paid or payable pursuant to section 43(3), (3A) and (3B)); or
(c) the company makes a written election for a cash grant under this section in lieu of the remission under section 92A, and the Comptroller is satisfied that the cash grant would be more beneficial to the company than the remission,
then there is, in lieu of the remission of tax under section 92A, to be made to the company for the year of assessment 2011 a cash grant of the specified amount.
(2)The election under subsection (1)(c) must be made to the Comptroller at the time the company furnishes a return of its income for the year of assessment 2011 or within such further time as the Comptroller may allow.
(3)The cash grant under subsection (1) is exempt from tax in the hands of the company.
(4)Where a company receives a cash grant under subsection (1) —
(a) without having satisfied all the requirements in this section; or
(b) that is in excess of that which may be given to it under this section,
the amount of the cash grant or the excess amount of the cash grant (as the case may be) is recoverable by the Comptroller from the company as a debt due to the Government.
(5)The Comptroller must send the company a notice specifying the amount to be repaid under subsection (4), and the company must pay the amount at the place stated in the notice within one month after the service of the notice.
(6)The Comptroller may, in his or her discretion and subject to such terms and conditions as the Comptroller may impose, extend the time limit within which payment under subsection (5) is to be made.
(7)Sections 86(1) to (6), 87(1) and (2), 89, 90 and 91 apply to the collection and recovery by the Comptroller of the amounts recoverable under subsection (5) as they apply to the collection and recovery of tax.
(8)Where any tax, duty, interest or penalty is due by the company —
(a) under this Act to the Comptroller of Income Tax;
(b) under the Goods and Services Tax Act 1993 to the Comptroller of Goods and Services Tax;
(c) under the Property Tax Act 1960 to the Comptroller of Property Tax; or
(d) under the Stamp Duties Act 1929 to the Commissioner of Stamp Duties,
then the amount of cash grant made by the Comptroller to the company must be reduced by the amount so due; and the amount of the reduction is deemed to be tax, duty, interest or penalty paid by the company under the relevant Act and must (if it is due under an Act other than this Act) be paid by the Comptroller to the Comptroller of Goods and Services Tax, the Comptroller of Property Tax or the Commissioner of Stamp Duties, as the case may be.
(9)In this section, “specified amount” means —
(a) 5% of the gross amount of the income derived by a company from its principal activities in the basis period for the year of assessment 2011; or
(b) $5,000,
whichever is the lower.
Cash grant for companies for year of assessment 2012
92C.—(1)Where a company carrying on business in Singapore has made a contribution to the Central Provident Fund in respect of at least one of its qualifying employees during the basis period for the year of assessment 2012, there is to be made to the company for the year of assessment 2012 a cash grant of —
(a) 5% of the gross amount of the income derived by the company from its principal activities in the basis period for the year of assessment 2012; or
(b) $5,000,
whichever is the lower.
(2)No cash grant under subsection (1) may be made if the company has ceased to carry on business in Singapore.
(3)The Minister may waive the requirement under subsection (1) in respect of the contribution to the Central Provident Fund by the company if the Minister is satisfied that it is just and equitable to do so.
(4)The cash grant under subsection (1) is exempt from tax in the hands of the company.
(5)Section 92B(4) to (8) applies, with the necessary modifications, to this section.
(6)In this section, “qualifying employee” means an employee of the company based on the payroll for any month within its basis period for the year of assessment 2012, but excludes any employee who is also a shareholder of the company.
(7)In the application (by virtue of section 36B) of this section to a registered business trust, a reference to a contribution by a company to the Central Provident Fund in respect of at least one of its qualifying employees is a reference to a contribution by the trustee‑manager of the business trust to the Central Provident Fund in respect of at least one of its employees, being one —
(a) who is an employee of the trustee‑manager according to the payroll for any month within the basis period of the trust for the year of assessment 2012; and
(b) whose sole duty is assisting in managing or operating the trust,
but excluding any employee who is also a unitholder of the trust.
Remission of tax of companies for years of assessment 2013, 2014 and 2015
92D.Where the Comptroller is satisfied that the remission of tax would be beneficial to a company, then there is to be remitted the tax payable for each of the years of assessment 2013, 2014 and 2015 by the company of an amount equal to the lower of the following:
(a) 30% of the tax payable for that year of assessment (excluding any tax levied and paid or payable pursuant to section 43(3), (3A) and (3B));
(b) $30,000.
Remission of tax of companies for year of assessment 2016
92E.Where the Comptroller is satisfied that the remission of tax would be beneficial to a company, then there is to be remitted the tax payable for the year of assessment 2016 by the company of an amount equal to the lower of the following:
(a) 50% of the tax payable for that year of assessment (excluding any tax levied and paid or payable pursuant to section 43(3), (3A) and (3B));
(b) $20,000.
Remission of tax of companies for year of assessment 2017
92F.Where the Comptroller is satisfied that the remission of tax would be beneficial to a company, then there is to be remitted the tax payable for the year of assessment 2017 by the company of an amount equal to the lower of the following:
(a) 50% of the tax payable for that year of assessment (excluding any tax levied and paid or payable pursuant to section 43(3), (3A) and (3B));
(b) $25,000.
Remission of tax of companies for year of assessment 2018
92G.Where the Comptroller is satisfied that the remission of tax would be beneficial to a company, then there is to be remitted the tax payable for the year of assessment 2018 by the company of an amount equal to the lower of the following:
(a) 40% of the tax payable for that year of assessment (excluding any tax levied and paid or payable pursuant to section 43(3), (3A) and (3B));
(b) $15,000.
Remission of tax of companies for year of assessment 2019
92H.Where the Comptroller is satisfied that the remission of tax would be beneficial to a company, then there is to be remitted the tax payable for the year of assessment 2019 by the company of an amount equal to the lower of the following:
(a) 20% of the tax payable for that year of assessment (excluding any tax levied and paid or payable pursuant to section 43(3), (3A) and (3B));
(b) $10,000.
Remission of tax of companies for year of assessment 2020
92I.Where the Comptroller is satisfied that the remission of tax would be beneficial to a company, then there is to be remitted the tax payable for the year of assessment 2020 by the company of an amount equal to the lower of the following:
(a) 25% of the tax payable for that year of assessment (excluding any tax levied and paid or payable pursuant to section 43(3), (3A) and (3B));
(b) $15,000.
Repayment of tax
93.—(1)If it is proved to the Comptroller’s satisfaction that any person for any year of assessment has paid tax, by deduction or otherwise, in excess of the amount payable under the provisions of this Act, such person is entitled to have the amount so paid in excess refunded.
(2)Every claim for repayment under this section must be made within 6 years (if the year of assessment to which the claim relates is 2007 or a preceding year of assessment) or 4 years (if the year of assessment to which the claim relates is 2008 or a subsequent year of assessment) from the end of the year of assessment to which the claim relates.
(3)This section does not operate to extend any time limit for appeal or validate any objection or appeal which is otherwise invalid or authorise the revision of any assessment or other matter which has become final and conclusive.
(4)
(5)Where through death, incapacity, bankruptcy, liquidation or other cause a person who would, but for such cause, have been entitled to make a claim under subsection (1) is unable to do so, the person’s executor, trustee or receiver (as the case may be) is entitled to have refunded to the executor, trustee or receiver for the benefit of such person or the person’s estate any tax paid in excess within the meaning of subsection (1).
(6)The Comptroller must certify any amount repayable under this section and must cause repayment to be made immediately.
(7)Where an order or decision by the Board of Review or by any court gives rise to any claim for a refund of tax, the Comptroller may, where the Comptroller has given written notice of the Comptroller’s intention to appeal against such order or decision, withhold the refund until such time as the appeal is finally determined.
(8)Where a refund is withheld under subsection (7), the Comptroller must pay interest at the rate mentioned in subsection (9) with effect from the date of the order or decision appealed against on the amount of refund ultimately determined to be due as a result of any appeal.
(9)In subsection (8), the rate of interest is —
(a) for any part of the period for which interest is payable (called in this subsection the interest period) up to and including 30 June 2016, 5% per annum;
(b) for any part of the interest period that is later but falling before the publication date, the average of the prime lending rates for such months in the previous year as are prescribed by rules made under section 7;
(c) for any part of the interest period falling on or after the publication date but within the period between 1 January and 31 March (both dates inclusive) of any year before 2025, the prime lending rate for the year that is 2 years before that year;
(d) for any part of the interest period falling on or after the publication date but within the period between 1 April and 31 December (both dates inclusive) of any year before 2024, the prime lending rate for the previous year; or
(e) for any part of the interest period falling on or after 1 April 2024, the rate as prescribed by rules made under section 7.
(10)In subsection (9), “publication date” means 29 December 2016.
(11)In subsection (9)(c) and (d), the prime lending rate for any year is the average of the prime lending rates for the months of October, November and December of that year, or such other months prescribed by rules made under section 7 in their place, of such financial institution or financial institutions in Singapore as the Minister may determine, rounded to the nearest 0.5%, or another percentage prescribed by rules made under that section in its place.
(12)Rules made under section 7 for the purpose of subsection (9)(e) may prescribe different rates for different parts of the interest period.
Relief in respect of error or mistake
93A.—(1)If any person alleges that for any year of assessment —
(a) an assessment is excessive; or
(b) any unabsorbed loss, allowance or donation that may be carried forward ought to be of a higher amount than that set out in an assessment,
by reason of some error or mistake —
(c) in the return or statement made by the person for the purposes of the assessment; or
(d) where the person is exempted from liability to furnish a return under section 62(2), in the notice of assessment served on the person,
the person may, at any time not later than 6 years (if the year of assessment within which the assessment was made is 2007 or a preceding year of assessment) or 4 years (if the year of assessment within which the assessment is made is 2008 or a subsequent year of assessment) after the end of the year of assessment within which the assessment was made, make an application in writing to the Comptroller for relief.
(1A)An application by a person on the basis of an error or a mistake, for the year of assessment 2019 or any subsequent year of assessment, in the amount of any income, expense, outgoing or loss in connection with any transaction between the person and a related party of the person, must be supported by transfer pricing documentation for that transaction that satisfies section 34F(5).
(1B)To avoid doubt, subsection (1A) applies whether or not the person is a company, firm, partner of a partnership or trustee of a trust to which section 34F applies.
(2)On receiving the application, the Comptroller must inquire into the matter and must, subject to this section, give, by way of repayment of tax or an amendment to the assessment, such relief in respect of the error or mistake as appears to the Comptroller to be reasonable and just.
(3)No relief by way of repayment of tax may be given under this section in respect of an error or a mistake as to the basis on which the liability of the applicant ought to have been computed when the return or statement was in fact made on the basis of or in accordance with the practice of the Comptroller generally prevailing at the time when the return or statement was made.
(3A)No amendment may be made to the assessment under this section when the return or statement was in fact made on the basis of or in accordance with the practice of the Comptroller generally prevailing at the time when the return or statement was made.
(4)In determining any application under this section, the Comptroller must have regard to all the relevant circumstances of the case, and in particular must consider whether the granting of relief would result in the exclusion from charge to tax of income of the applicant, and for this purpose the Comptroller may take into consideration the liability of the applicant and assessments made upon the applicant in respect of other years.
(5)Section 79 applies in respect of an appeal against a determination of the Comptroller under this section except that no such appeal may be entertained until the sum of $250 has been deposited with the secretary to the Board of Review.
(6)The sum mentioned in subsection (5) must be refunded in the event of the appeal being allowed.
(7)The Board of Review may, if in its opinion the appeal was vexatious or frivolous, order that the whole or any part of the aforesaid sum be forfeited and awarded to the Comptroller as costs.
PART 20OFFENCES AND PENALTIES
General penalties
94.—(1)Except as provided in section 94A, any person who contravenes any of the provisions of this Act shall be guilty of an offence.
(2)Any person guilty of an offence under this section for which no other penalty is provided shall be liable on conviction to a fine not exceeding $5,000 and in default of payment to imprisonment for a term not exceeding 6 months.
(3)Except in the case of a notice in the Gazette under section 68(2), no person shall be liable to prosecution for an offence under this section in respect of failure to comply with the terms of any notice issued under the provisions of this Act unless the notice has been served on the person personally or by registered post.
(4)
(5)
(6)The Comptroller may compound any offence punishable under this section (including an offence for the contravention of a provision that has been repealed), and may before judgment stay or compound any proceedings thereunder.
Penalty for failure to make return
94A.—(1)Any person who fails or neglects without reasonable excuse to comply with any provision of section 62 or 71(1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $5,000 and in default of payment to imprisonment for a term not exceeding 6 months.
(2)Where any person has been convicted of an offence —
(a) for failing to comply with section 62(3) and such conviction is subsequent to a conviction for an offence for failing to comply with section 62(1);
(b) for failing to comply with any provision of section 62 or 71(1) and such conviction is a second or subsequent conviction; or
(c) for failing to comply with any provision of section 71(1) and such conviction is subsequent to a conviction for an offence for failing to comply with any provision of section 62,
in respect of the same year of assessment, the person shall be liable to a further penalty of $100 for every day during which the offence is continued after such conviction.
(3)Any person who fails or neglects without reasonable excuse to comply with section 62 or 71(1) in respect of any year of assessment for 2 years or more shall be guilty of an offence and shall be liable on conviction to —
(a) a penalty equal to double the amount of tax which the Comptroller assesses the person to be liable for that year of assessment after determining, to the best of the Comptroller’s judgment, the amount of the person’s chargeable income; and
(b) a fine not exceeding $5,000,
and in default of payment to imprisonment for a term not exceeding 6 months.
(4)Except in the case of a notice in the Gazette under section 62(1), no person shall be liable to prosecution for an offence under this section in respect of failure to comply with the terms of any notice issued under the provisions of this Act unless the notice has been served on the person personally or by registered post.
(5)The Comptroller may compound any offence punishable under this section.
Penalty for incorrect return, etc.
95.—(1)Subject to the provisions of Part 18, every person who —
(a) makes an incorrect return by omitting or understating any income of which the person is required by this Act to make a return;
(b) gives any incorrect information in relation to any matter affecting the person’s own liability to tax or the liability of any other person or of a partnership; or
(c) fails to comply with section 76(8),
shall be guilty of an offence for which, on conviction, the person shall pay a penalty equal to —
(d) the amount of tax;
(e) the amount of PIC bonus; or
(f) the amount of tax and the amount of PIC bonus,
as the case may be, that has been undercharged, obtained, or undercharged and obtained as a result of the incorrect return or information or failure, or that would have been so undercharged, obtained, or undercharged and obtained if the return or information had been accepted as correct or if a notice had not been provided in accordance with section 76(8).
(2)Every person who without reasonable excuse or through negligence —
(a) makes an incorrect return by omitting or understating any income of which the person is required by this Act to make a return;
(b) gives any incorrect information in relation to any matter affecting the person’s own liability to tax or the liability of any other person or of a partnership; or
(c) fails to comply with section 76(8),
shall be guilty of an offence for which, on conviction, the person shall pay a penalty equal to double —
(d) the amount of tax;
(e) the amount of PIC bonus; or
(f) the amount of tax and the amount of PIC bonus,
as the case may be, that has been undercharged, obtained, or undercharged and obtained as a result of the incorrect return or information or failure, or that would have been so undercharged, obtained, or undercharged and obtained if the return or information had been accepted as correct or if a notice had not been provided in accordance with section 76(8), and shall also be liable to a fine not exceeding $5,000 or to imprisonment for a term not exceeding 3 years or to both.
(3)The Comptroller may compound any offence punishable under subsection (1) or (2), and may before judgment stay or compound any proceedings thereunder.
(3A)In this section, a reference to the amount of PIC bonus that has been obtained by a person as a result of an incorrect return or information, or that would have been so obtained if the return or information had been accepted as correct, excludes an amount of PIC bonus that the person is entitled to.
(4)In this section, “PIC bonus” means a payment under section 37H.
Tax evasion and wilful action to obtain PIC bonus
96.—(1)Any person who wilfully with intent to evade or to assist any other person to evade tax, or to obtain or to assist any other person to obtain a PIC bonus or a higher amount of PIC bonus, or both —
(a) omits from a return made under this Act any income which should be included;
(b) makes any false statement or entry in any return made under this Act or in any notice made under section 76(8);
(c) gives any false answer, whether verbally or in writing, to any question or request for information asked or made in accordance with the provisions of this Act; or
(d) fails to comply with section 76(8),
shall be guilty of an offence for which, on conviction, the person shall pay a penalty of treble —
(e) the amount of tax;
(f) the amount of PIC bonus; or
(g) the amount of tax and the amount of PIC bonus,
as the case may be, that has been undercharged, obtained, or undercharged and obtained as a result of the offence, or that would have been undercharged, obtained, or undercharged and obtained if the offence had not been detected, and shall also be liable to a fine not exceeding $10,000 or to imprisonment for a term not exceeding 3 years or to both.
(2)When an individual has been convicted for —
(a) 3 or more offences under this section, section 37M(3) or section 37S(3); or
(b) one offence under this section and one offence under section 96A, 37M(4) or 37S(4),
the imprisonment the individual shall be liable to shall not be less than 6 months.
(3)Whenever in any proceedings under this section it is proved that any false statement or entry is made in any return furnished under this Act or notice made under section 76(8) by or on behalf of any person, that person is presumed, until the contrary is proved, to have made that false statement or entry with intent to evade tax, to obtain a PIC bonus or a higher amount of PIC bonus, or both, as the case may be.
(4)The Comptroller may compound any offence under this section and may before judgment stay or compound any proceedings thereunder.
(4A)In this section, a reference to the amount of PIC bonus that has been obtained by a person as a result of an offence, or that would have been so obtained if the offence had not been detected, excludes an amount of PIC bonus that the person is entitled to.
(5)In this section, “PIC bonus” means a payment under section 37H.
Serious fraudulent tax evasion and action to obtain PIC bonus
96A.—(1)Any person who wilfully with intent to evade or to assist any other person to evade tax, or to obtain or to assist any other person to obtain a PIC bonus or a higher amount of PIC bonus, or both —
(a) prepares or maintains or authorises the preparation or maintenance of any false books of account or other records or falsifies or authorises the falsification of any books of account or records; or
(b) makes use of any fraud, art or contrivance or authorises the use of any such fraud, art or contrivance,
shall be guilty of an offence for which, on conviction, the person shall pay a penalty of 4 times —
(c) the amount of tax;
(d) the amount of PIC bonus; or
(e) the amount of tax and the amount of PIC bonus,
as the case may be, that has been undercharged, obtained, or undercharged and obtained as a result of the offence, or that would have been undercharged, obtained, or undercharged and obtained if the offence had not been detected, and shall also be liable to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 5 years or to both.
(2)When an individual has been convicted for —
(a) 2 or more offences under this section, section 37M(4) or section 37S(4); or
(b) one offence under this section and one offence under section 96, 37M(3) or 37S(3),
the imprisonment the individual shall be liable to shall not be less than 6 months.
(3)Where in any proceedings under this section it is proved that any false statement or entry is made in any books of account or other records maintained by or on behalf of any person, that person is presumed, until the contrary is proved, to have made that false statement or entry with intent to evade tax, to obtain a PIC bonus or a higher amount of PIC bonus, or both, as the case may be.
(4)The Comptroller may compound any offence under this section and may before judgment stay or compound any proceedings thereunder.
(4A)In this section, a reference to the amount of PIC bonus that has been obtained by a person as a result of an offence, or that would have been so obtained if the offence had not been detected, excludes an amount of PIC bonus that the person is entitled to.
(5)In this section, “PIC bonus” means a payment under section 37H.
Penalties for offences by authorised and unauthorised persons
97.Any person who —
(a) being a person appointed for the due administration of this Act or any assistant employed in connection with the assessment and collection of tax —
(i) demands from any person an amount in excess of the authorised assessment or tax;
(ii) withholds for the person’s own use or otherwise any portion of the amount of tax collected;
(iii) renders a false return, whether verbal or in writing, of the amounts of tax collected or received by the person; or
(iv) defrauds any person, embezzles any money or otherwise uses the person’s position so as to deal wrongfully either with the Comptroller or any other individual; or
(b) not being authorised under this Act to do so, collects or attempts to collect tax under this Act,
shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 or to imprisonment for a term not exceeding 3 years or to both.
Penalty for obstructing Comptroller or officers
98.—(1)Any person who obstructs or hinders the Comptroller or any officer in the discharge of his or her duties or the exercise of his or her powers under this Act shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 or to imprisonment for a term not exceeding 12 months or to both.
(2)The Comptroller may compound an offence under subsection (1).
Tax to be payable despite any proceedings for penalties
99.The institution of proceedings for, or the imposition of, a penalty, fine or term of imprisonment under this Act does not relieve any person from liability to payment of any tax for which the person is or may be liable.
Provisions relating to penalty
100.—(1)Any interest imposed under section 85(2) or penalty imposed under this Act is not deemed to be part of the tax paid for the purposes of claiming relief under any of the provisions of this Act.
(2)Any penalty imposed under section 13D(2), (4) or (6), 13O(3) or (5), 37(18B), 45(4), 87(1) or 91(4) is deemed to be interest on tax for the purposes of section 33(2) of the Limitation Act 1959.
Consent for prosecution
101.—(1)No prosecution may be commenced in respect of an offence under section 37L, 37M, 37S, 45(5), 94, 94A, 95, 96, 96A or 105M except at the instance or with the consent of the Comptroller or the Public Prosecutor.
(2)The Comptroller may authorise either generally or specifically an officer to compound any offence under sections 34F(8), 37L, 37M (except subsection (4)), 37S (except subsection (4)), 45(5), 50(11A) (including that provision as applied by section 50A(4) or 50C(6)), 94, 94A, 95, 96, 96A, 105M(1) and (1B), and section 50(11B) in Part 3 of the Third Schedule (including that provision as applied by section 50A(4) or 50C(6) in Part 3 of the Third Schedule).
(3)No prosecution may be commenced in respect of an offence under section 6, 97 or 98 except at the instance or with the consent of the Public Prosecutor.
Service of summons
102.—(1)Every summons issued by a court against any person in connection with any offence under this Act may be served on the person —
(a) by delivering the summons to the person or to some adult member of the person’s family at his or her last known place of residence;
(b) by leaving the summons at the person’s usual or last known place of residence or business in an envelope addressed to the person;
(c) by sending the summons by registered post addressed to the person at the person’s usual or last known place of residence or business; or
(d) where the person is a body of persons or a company —
(i) by delivering the summons to the secretary or other like officer of the body of persons or company at its registered office or principal place of business; or
(ii) by sending the summons by registered post addressed to the body of persons or company at its registered office or principal place of business.
(2)Any summons sent by registered post to any person in accordance with subsection (1) is deemed to be duly served on the person to whom the letter is addressed at the time when the letter would in the ordinary course of post be delivered and in proving service of the summons, it is sufficient to prove that the envelope containing the summons was properly addressed, stamped and posted by registered post.
Notice to attend court
102A.—(1)Where the Comptroller has reasonable grounds to believe that a person has committed an offence under this Act (or any subsidiary legislation made under this Act) that is punishable by a fine or by an imprisonment term not exceeding 12 months or both, the Comptroller may, in lieu of applying to a court for a summons, serve on that person a written notice, containing such information as may be prescribed by rules made under section 7, requiring that person to attend at the court described, at the time and on the date specified in the notice.
(2)The Comptroller must, if so required by a court, produce a copy of the notice to the court.
(3)The notice may be served on the person alleged to have committed the offence in the manner provided in section 102, as if it were a summons issued by a court.
(4)On a person appearing before a court pursuant to such notice, the court is to proceed as though the person were produced before the court under section 153 of the Criminal Procedure Code 2010.
(5)If a person on whom such notice has been served fails to appear before a court in accordance with the notice, the court may, if satisfied that the notice was duly served —
(a) issue a warrant for the arrest of the person, unless that person has before that date been permitted to compound the offence; or
(b) proceed with the matter in the absence of the person pursuant to section 156 of the Criminal Procedure Code 2010, and a reference in that section to a summons or notice to attend court is to a written notice served under this section.
(6)Upon a person arrested pursuant to a warrant issued under subsection (5)(a) being produced before a court, the court is to proceed as though the person were produced under section 153 of the Criminal Procedure Code 2010.
(7)The Comptroller may, at any time before the date specified in the notice, cancel the notice.
Saving for criminal proceedings
103.The provisions of this Act do not affect any criminal proceedings under any other written law.
Admissibility of certain statements and documents as evidence
104.—(1)Statements made or documents produced by or on behalf of any person are not inadmissible in evidence against the person in any proceedings to which this section applies by reason only that the person was or may have been induced to make the statements or produce the documents by any inducement or promise lawfully given or made by a person having any official duty under, or being employed in the administration of, this Act.
(2)This section applies to any proceedings against the person in question —
(a) under section 37L, 37M, 37S, 95, 96 or 96A; or
(b) for the recovery of any sum due from the person, whether by way of tax or penalty.
Protection of informers
104A.—(1)Except as provided in subsection (3), no witness in any civil or criminal proceedings commenced on or after 16 November 2021 is obliged or permitted —
(a) to disclose the identity of an informer who has given any information (whether the information is given before, on or after that date) with respect to an offence under this Act; or
(b) to answer any question if the answer to the question would lead, or would tend to lead, to the discovery of the identity of the informer.
(2)If any document which is in evidence or liable to inspection in any civil or criminal proceedings contains any entry in which any informer is named or described or which may lead to the discovery of the informer’s identity, the court must cause the entry to be concealed from view or to be obliterated so far only as may be necessary to protect the informer from discovery.
(3)If —
(a) in any proceedings for an offence under any written law, the court, after full enquiry into the case, believes that the informer wilfully made a material statement which the informer knew or believed to be false or did not believe to be true; or
(b) in any other proceedings, the court is of the opinion that justice cannot be fully done between the parties to the proceedings without the discovery of the informer,
the court may permit enquiry and require full disclosure concerning the informer.
(4)In this section, a reference to civil proceedings includes any proceedings before the Board of Review.
Jurisdiction of court
105.Despite any provision to the contrary in the Criminal Procedure Code 2010, a District Court or a Magistrate’s Court has jurisdiction to try any offence under this Act and has power to impose the full penalty or punishment in respect of the offence.