Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698754753868.pdf (Singapore)
Income Tax (Amendment) Bill Bill No.

26/2019.

Read the first time on 2 September 2019.

A BILL i n t i t u l e d An Act to amend the Income Tax Act (Chapter 134 of the 2014 Revised Edition) and to make related amendments to the Stamp Duties Act (Chapter 312 of the 2006 Revised Edition).

Be it enacted by the President with the advice and consent of the Parliament of Singapore, as follows: 2 Short title and commencement 1.—(1) This Act is the Income Tax (Amendment) Act 2019.
(2) Sections 28(a) and (b) and 45 are deemed to have come into operation on 1 January 2018.

5 (3) Sections 4, 19, 20, 26 and 31 are deemed to have come into operation on 12 November 2018.

(4) Sections 9, 16, 27 and 34 are deemed to have come into operation on 12 December 2018.

(5) Section 6(e) and (f) is deemed to have come into operation on 10 20 December 2018.

(6) Section 21(l) is deemed to have come into operation on 31 December 2018.
(7) Section 24 is deemed to have come into operation on 1 January 2019.

15 (8) Sections 3 and 17 are deemed to have come into operation on 19 February 2019.

(9) Sections 8, 10, 13(c) and (d), 14, 15 and 18 are deemed to have come into operation on 1 April 2019.

(10) Sections 30(b) and 36(a) are deemed to have come into 20 operation on 1 July 2019.

(11) Section 38 comes into operation on 1 January 2020.

Amendment of section 2 2.


Section 2(1) of the Income Tax Act (called in this Act the principal Act) is amended by inserting, immediately after the word “sections” in the definition of “Comptroller”, “34F(9),”.

Amendment of section 10B 3.

Section 10B of the principal Act is amended by inserting, immediately after subsection (1), the following subsection: “(1A) No unit trust may be approved as an approved unit trust under this section after 18 February 2019.”.

25 30 3 Amendment of section 10F 4.
Section 10F of the principal Act is amended — (a) by deleting the words “or FRS 115 construction or upgrade services” in subsections (1B), (1C)(a) and (1D)(a) and substituting in each case the words “FRS 115 construction or upgrade services, or SFRS(I) 15 construction or upgrade services”; and (b) by deleting the definitions of “FRS 11”, “FRS 17”, “FRS 115”, “INT FRS 112”, “SFRS(I) 1-17”, “SFRS(I) 16”, “SFRS(I) INT 4” and “SFRS(I) INT 12” in subsection (2) and substituting the following definitions: “INT FRS 104”, “FRS 116”, FRS “ “FRS 11”, “FRS 17”, “FRS 115”, “FRS 116”, 112”, “INT 15”, “SFRS(I) 16”, “SFRS(I) “SFRS(I) and INT 12” mean the “SFRS(I) financial reporting standards known respectively as — FRS “SFRS(I) 104”, 1-17”, INT 4” “INT (a) Financial Reporting Standard 11 (Construction Contracts); (b) Financial Reporting Standard 17 (Leases); (c) Financial Reporting Standard 115 from Contracts with (Revenue Customers); (d) Financial Reporting Standard 116 (Leases); (e) Interpretation of Financial Reporting Standard 104 (Determining whether an Arrangement contains a Lease); (f) Interpretation of Financial Reporting Standard 112 (Service Concession Arrangements); 4 (g) Singapore Standard (Leases); (h) Singapore Standard (Revenue Customers); Financial (International) Reporting 1-17 Financial (International) Reporting 15 from Contracts with (i) Singapore Reporting Financial Standard (International) 16 (Leases); Financial Reporting (j) Singapore (International) Standard Interpretation (Determining 4 whether an Arrangement contains a Lease); and Financial (k) Singapore Standard Interpretation Concession Arrangements), Reporting (International) (Service 12 that are made by the Accounting Standards Council under Part III of the Accounting Standards Act (Cap.
2B), as amended from time to time; “SFRS(I) 15 construction or upgrade services” means any construction or upgrade services (as the case may be) to which SFRS(I) 15 applies.”.

Amendment of section 12 5.
Section 12 of the principal Act is amended by inserting, immediately after subsection (7AA), the following subsection: “(7AB) Subsection (7)(d) excludes any rent or other payments under any agreement or arrangement for the use outside Singapore of any tangible movable property, where — (a) such use is for or incidental to the purpose of a trip to a is made for the country outside Singapore that 5 purpose of a trade, business, profession or vocation carried on — (i) in Singapore by a person resident in Singapore; or (ii) through a permanent establishment in 5 Singapore; or (b) such use is for or incidental to the purpose of outside representative maintaining Singapore that is maintained for the purpose of a trade, business, profession or vocation carried on in Singapore.”.
office a Amendment of section 13 6.
Section 13 of the principal Act is amended — (a) by deleting the words “on or before 31 March 2020” in subsection (1)(zh); (b) by deleting the words “during the period from 1 July 2018 in inclusive)” (both dates 2020 31 March to subsection (1)(zs); (c) by deleting the words “1 April 2020” in subsections (12A) and (12B)(a) and substituting in each case the words “1 January 2026”; (d) by deleting the words “1st April 2020” in subsection (12C) and substituting the words “1 January 2026”; (e) by deleting the comma at the end of paragraph (c) of the definition of “qualifying debt securities” in subsection (16) and substituting the word “; or”, and by inserting immediately thereafter the following paragraph: “(d) debt securities whose values are derived from insured loss events underlying them, that are issued by a Special Purpose Reinsurance Vehicle during the period from 20 December 2018 to 31 December 2023 (both dates inclusive), where at least 10 15 20 25 30 6 20% of the issue costs for the issue are required to be paid to persons or partnerships trade, business or profession in Singapore,”; and carrying any on 5 (f) by inserting, immediately after subsection (16), the following subsection: 10 15 20 25 30 “(16A) In paragraph (d) of “qualifying debt securities” in subsection (16) — the definition of “issue costs”, in relation to an issue of debt securities, means legal fees, modelling fees, arranger or underwriting fees, rating agency fees, audit fees, claim review fees, indenture trustee fees, loss trustee fees, listing or fees, reserve specialist and administrator and other fees that are connected with or incidental to the issue; “Special Purpose Reinsurance Vehicle” has the the meaning given by regulation 2 of Insurance and Purpose Exemptions Reinsurance Vehicles) Regulations 2018 (G.N.
No.

S 837/2018).”.

(General for Provisions Special Amendment of section 13A 7.
Section 13A of the principal Act is amended — (a) by inserting, immediately after subsection (1CK), the following subsection: “(1CL) The income of a shipping enterprise mentioned in this section includes income derived on or after 12 December 2018 by the shipping risk enterprise management activities in connection with or incidental to the finance leasing of a Singapore ship for use outside the limits of the port of Singapore.”; that are carried out from foreign exchange and 7 (b) by deleting the definition of “finance leasing” in subsection (16) and substituting the following definition: “ “finance leasing” means — container (including (a) in relation to a container, a lease of any the arrangement or agreement made in connection with the lease) that has the effect of transferring substantially the rewards risks obsolescence, or incidental the of ownership to container to the lessee; and any arrangement (b) in relation to a ship, a lease of the ship (including or agreement made in connection with that has the effect of the lease) substantially transferring the obsolescence, rewards risks incidental to ownership of the ship to the lessee;”; (c) by deleting the word “or” at the end of paragraph (a)(iv) of the definition of “operation” in subsection (16); and (d) by deleting the word “and” at the end of sub-paragraph (v) of paragraph (a) of the definition of “operation” in subsection (16) and substituting the word “or”, and by inserting following sub-paragraph: immediately thereafter the or “(vi) the finance leasing of the ship for use outside the limits of the port of Singapore, but only where the income in question is derived from the finance leasing on or after 12 December 2018; and”.
Amendment of section 13CA 8 8.

Section 13CA(10) of the principal Act is amended by deleting the words “1st April 2019” in paragraphs (a) and (b)(i) and substituting in each case the words “1 January 2025”.

5 Amendment of section 13F 9.
Section 13F of the principal Act is amended — 10 15 20 25 30 (a) by deleting the word “and” at the end of subsection (1)(p); (b) by deleting the full-stop at the end of paragraph (q) of subsection (1) and substituting a semi-colon, and by inserting immediately thereafter the following paragraphs: “(r) on or after 12 December 2018 from — (i) the finance leasing of any foreign ship to any person where the ship is used by the person for the carriage of passengers, mail, livestock or goods outside the limits of the port of Singapore; (ii) the finance leasing of any foreign dredger, foreign seismic ship, or any foreign ship used for offshore oil or gas activity to any person where the dredger, seismic ship or ship is used the person’s by the person for operation outside the limits of the port of Singapore; (iii) the finance leasing of any foreign ship to any person where the ship is used by the person for towage and salvage out outside the limits of the port of Singapore; and operations carried (iv) the finance leasing of any foreign ship for offshore renewable energy activity or offshore mineral activity 9 to any person, where the ship is used the person’s by the person for operation outside the limits of the port of Singapore; and (s) on or after 12 December 2018 from foreign exchange and risk management activities which are carried out in connection with and incidental to an activity mentioned in paragraph (r).”; and (c) by deleting the words “(n) to (q)” in subsection (4) and substituting the words “(n) to (s)”.
Amendment of section 13G 10.

Section 13G of the principal Act is amended — “1st April the words (a) by deleting in subsections (6)(a), (b), (c)(i) and (d)(i) and (7) and substituting in each case the words “1 January 2025”; and 2019” (b) by deleting the words in subsection (6)(c)(ii) and (d)(ii) and substituting in each case the words “31 December 2024”.

“31st March 2019” Amendment of section 13H 11.


Section 13H of the principal Act is amended — (a) by deleting subsection (2C) and substituting the following subsections: “(2C) The Minister or such person as the Minister may appoint may, subject to such conditions as the Minister or person may impose, approve a venture company as an approved venture company for the purposes of this section.
(2D) No approval may be granted to a venture company on or after 1 April 2020.”; and (b) by deleting the definition of “approved” in subsection (18).

5 10 15 20 25 30 10 Amendment of section 13N 12.
Section 13N of the principal Act is amended — (a) by deleting paragraph (d) of subsection (3) and substituting the following paragraph: the years “(d) if he is resident in Singapore in any year of assessment of between assessment 2006 and 2020 (both years in is inclusive), but for Singapore of all assessment immediately preceding that for a period of year of assessment, 5 consecutive years commencing from that year of assessment in which he is resident in Singapore.”; (b) by inserting, immediately after the words “subject to” in subsection (4), the words “subsection (4A) and”; and resident years 3 not the (c) by inserting, immediately after subsection (4), the following subsection: “(4A) No approval under subsection (4) may be granted for any application made on or after 1 January 2025.”.
Amendment of section 13O 13.
Section 13O of the principal Act is amended — (a) by deleting sub-paragraph (iii) of paragraph (b) of the definition of “foreign account” in subsection (3) and substituting the following sub-paragraph: “(iii) does not in the basis period — (A) in the case of any year of assessment before 2021, carry on a business in Singapore; or (B) in the case of assessment subsequent the year of a or of year 2021 11 assessment, carry on a business outside in Singapore;”; Singapore or (b) by deleting sub-paragraph (B) of paragraph (b)(v) of the definition of “foreign account” in subsection (3) and substituting the following sub-paragraph: 5 “(B) carries on in the basis period — (BA) in the case of any year of assessment before 2021, in Singapore; or a business (BB) in the case of the year of assessment 2021 or a of subsequent assessment, a business in Singapore or outside Singapore; or”; year (c) by deleting the words in subsections (5)(a), (b), (c)(i) and (d)(i), (6) and (8) and substituting in each case the words “1 January 2025”; and “1st April 2019” (d) by deleting the words in subsection (5)(c)(ii) and (d)(ii) and substituting in each case the words “31 December 2024”.
“31st March 2019” Amendment of section 13Q 14.

Section 13Q of the principal Act is amended — “1st April the words (a) by deleting in subsections (4)(a), (b), (c)(i) and (d)(i), (5) and (7) and substituting in each case the words “1 January 2025”; and 2019” (b) by deleting the words in subsection (4)(c)(ii) and (d)(ii) and substituting in each case the words “31 December 2024”.

“31st March 2019” 10 15 20 25 30 Amendment of section 13R 12 15.
Section 13R(2) of the principal Act is amended by deleting the words “31st March 2019” and substituting the words “31 December 2024”.

5 Amendment of section 13S 16.
Section 13S of the principal Act is amended — 10 15 20 25 30 (a) by deleting the words “(1B) and” in subsection (1) and substituting the words “(1G) and”; (b) by deleting the word “and” at the end of paragraph (cb) of subsection (1), and by inserting immediately thereafter the following paragraphs: “(cc) on or after 12 December 2018 from the finance leasing by the chartering or approved shipping investment enterprise of any sea-going ship, for use by the lessee outside the limits of the port of Singapore, if the ship was — (i) acquired by an approved related party before or during the period of its approval under subsection (3); and (ii) chartered, or leased under a finance lease, by the approved related party to the approved shipping investment enterprise; (cd) on or after 12 December 2018 from foreign exchange and risk management activities that are carried out in connection with and to an activity mentioned in incidental paragraph (cc); and”; (c) by renumbering subsections (1AA) subsections (1F) and (1G), respectively; and (1B) as (d) by inserting, immediately after subsection (1A), the following subsections: 13 to relation income mentioned “(1B) In in subsection (1)(cc) or (cd), subsection (1) continues to apply to a shipping investment enterprise the approval of which has expired or been withdrawn, but that continues to derive such income, if both the shipping investment enterprise and the related party mentioned in subsection (1)(cc) have, by the date of the expiry or before the withdrawal, fulfilled all the respective approvals under conditions of subsection (3).
their (1C) For the purpose of subsection (1B), the shipping investment enterprise is treated under this section investment enterprise.

approved shipping an as (1D) Subsection (1)(ca) and (cc) does not apply to income derived on or after 12 December 2018 from the chartering or finance leasing of a sea-going ship that is acquired by the approved shipping investment enterprise or the approved related party by way of a finance lease entered into with an entity that was not an approved related party.
(1E) Subsections (1)(cc) and (cd) and (1B) apply to income derived by an approved shipping investment enterprise in relation to a ship acquired by the related party before the period of the approval of the related party, if and only if the approved shipping investment enterprise is approved on or after 1 April 2008.”; (e) by inserting, immediately after the words “shipping investment enterprise” in subsection (2), the words “or a related party of an approved shipping investment enterprise”; (f) by deleting the words “and (cb)” in subsection (6) and substituting the words “, (cb), (cc) and (cd)”; 14 (g) by inserting, immediately after the words “any sea-going ship” in subsection (20), the words “(including any arrangement or agreement in connection with such leasing)”; “finance leasing” definition the of in (h) by inserting, immediately after the definition of “registered business trust” in subsection (20), the following definition: “ “related party”, in relation to an approved shipping investment enterprise, means any approved entity that shipping such in manner as may be prescribed by rules made under section 7;”; related to the enterprise investment is (i) by deleting the definition of “tax exempt period” in subsection (20) and substituting the following definition: “ “tax exempt period”, in relation to an approved shipping investment enterprise, means — (a) in a case where the enterprise is approved on or after 1 April 2008 and — (i) acquired; or (ii) chartered, or leased under a finance lease, from a related party, of of date approval a sea-going ship for use outside the limits of the port of Singapore before the the enterprise — the period from the date of that approval to the date where no income of any sea-going ship of that enterprise is eligible for under exemption dates subsection inclusive); or tax (both from (1) 15 (b) in any other case — the period from the date the enterprise — (i) first acquired; or (ii) first chartered, or leased under a finance lease, from a
 related party, during the period of approval of the enterprise, a sea-going ship for use outside the limits of the port of Singapore, to the date where no income of any sea-going ship of that enterprise is eligible for exemption from tax under subsection (1) (both dates inclusive).”; and 5 10 (j) by inserting, immediately after subsection (20), the 15 following subsection: “(21) Rules made for the purpose of the definition of “related party” in subsection (20) may be made to take effect from (and including) 12 December 2018.”.
Amendment of section 13X 17.
Section 13X of the principal Act is amended — (a) by inserting, immediately after the words “feeder fund,” in subsection (1), “SPV,”; (b) by deleting subsection (1)(c)(ii); the word “and” at the end of (c) by deleting the comma at the end of sub-paragraph (iii) of subsection (1)(c) and substituting a semi-colon, and by following inserting sub-paragraphs: immediately thereafter the “(iv) an approved eligible SPV of the structure, where the eligible SPV is not in sub-paragraphs (v), (vi) and (vii); mentioned one 20 25 30 16 (v) a partner of an approved eligible SPV of the structure, where the eligible SPV is a partnership (including a limited partnership and a limited liability partnership); (vi) the trustee of an approved eligible the structure, where the SPV of eligible SPV is a trust fund; and (vii) the taxable entity of an approved eligible SPV of the structure, where the eligible SPV is not a legal entity,”; (d) by deleting subsection (1)(d)(ii); the word “and” at the end of (e) by deleting the comma at the end of sub-paragraph (iii) of subsection (1)(d) and substituting a semi-colon, and by following inserting sub-paragraphs: immediately thereafter the “(iv) an approved eligible SPV of the structure, where the eligible SPV is not in sub-paragraphs (v), (vi) and (vii); mentioned one (v) a partner of an approved eligible SPV of the structure, where the eligible SPV is a partnership (including a limited partnership and a limited liability partnership); (vi) the trustee of an approved eligible the structure, where the SPV of eligible SPV is a trust fund; and (vii) the taxable entity of an approved eligible SPV of the structure, where the eligible SPV is not a legal entity,”; 17 (f) by deleting the words “31st March 2019” in subsections (2) and (2A) and substituting in each case the words “31st December 2024”; (g) by deleting subsection (2B) and substituting the following subsections: “(2B) Approval under subsection (1)(c)(i) and (d)(i) may be granted during the period from 1 April 2015 to 31 December 2024 (both dates inclusive).
(2C) Approval under subsection (1)(c)(ia), (ib) and (ic) may be granted during the period from 20 February 2018 to 31 December 2024 (both dates inclusive).

(2D) Approval under subsection (1)(c)(ii) and (iii) and (d)(ii) and (iii) may be granted during the period from 1 April 2015 to 18 February 2019 (both dates inclusive).
(2E) Approval under subsection (1)(c)(iv), (v), (vi) and (vii) and (d)(iv), (v), (vi) and (vii) may be granted during the period from 19 February 2019 to 31 December 2024 (both dates inclusive).”; (h) by deleting the words “or 2nd tier SPV” in subsections (3) and (4)(a), (b) and (ca) and substituting in each case the words “, 2nd tier SPV or eligible SPV”; (i) by inserting, immediately after the definition of “designated unit trust” in subsection (5), the following definition: 18 “ “eligible SPV”, in relation to a master-feeder fund-SPV structure or a master fund-SPV structure, means a special purpose vehicle where the net gains, profits or other benefits of all investments held by the vehicle are to go (whether directly or indirectly) to the master fund of the structure, or the master fund and one or more of the following: (a) a prescribed person under section 13CA; (b) an approved company under section 13R; (c) an approved person, or an approved master fund, an approved feeder fund, an approved 1st tier SPV, an approved 2nd tier SPV or an approved eligible SPV of any structure mentioned in subsection (1); (d) a prescribed sovereign fund entity or foreign approved under an government-owned section 13Y; entity (e) a person (excluding an individual and a Hindu joint family) — (i) that is not resident in Singapore; (ii) that does not have a permanent Singapore establishment (other than a fund manager); in (iii) that does not carry on a business in Singapore; (iv) that is not set up solely for the purpose of avoiding or reducing 19 the payment of any tax or penalty under this Act; and (v) that on carries outside Singapore substantial business genuine a activity commercial reason; for (f) a trust fund — (i) the trustee of which is not in Singapore or a resident citizen of Singapore; (ii) the trustee of which does not (in its capacity as such trustee) have a permanent establishment in Singapore other than a fund manager for that trust fund; (iii) the trustee of which does not in carry on
 any business Singapore other than acting as such trustee; such (iv) the trustee of which (in its capacity trustee) as carries on outside Singapore activity substantial business for commercial a reason; and genuine (v) that is not set up solely for the purpose of avoiding or reducing the payment of any tax or penalty under this Act; (g) a partnership (including a limited partnership and a limited liability partnership) — (i) none of the partners of which is resident in Singapore; 20 (ii) that does not have a permanent Singapore establishment (other than a fund manager); in (iii) that does not carry on a business in Singapore; (iv) that is not set up solely for the purpose of avoiding or reducing the payment of any tax or penalty under this Act; and (v) that on carries outside Singapore substantial business activity genuine a commercial reason; for (h) an investment vehicle that is not a legal person — (i) the taxable entity of which is the custodian of investments held by it; (ii) the taxable entity of which is not a resident in Singapore or a citizen of Singapore; held (iii) the taxable entity of which (in its capacity as custodian of investments the investment vehicle) does not permanent a have establishment Singapore other than a fund manager for that investment vehicle; by in (iv) the taxable entity of which does not carry on any business in Singapore other than acting as such custodian; 21 (v) the taxable entity of which carries on outside Singapore activity substantial business for commercial a reason; and genuine (vi) that is not set up solely for the purpose of avoiding or reducing the payment of any tax or penalty under this Act;”; (j) by deleting the definition of “special purpose vehicle” or “SPV” in subsection (5) and substituting the following definition: “ “special purpose vehicle” or “SPV” — (a) in relation vehicle whose a master-feeder to an fund-SPV structure, means only investment of the is activity investments
 investment for other vehicles or persons which must include the master and feeder funds of the structure; or holding an (b) in relation to a master fund-SPV investment structure, means vehicle whose only activity is the investments for other holding of investment persons or vehicles which must include the master fund of the structure;”; (k) by deleting the words “and a feeder fund” in the definition of “taxable entity” in subsection (5) and substituting the words “, a feeder fund and an SPV”; (l) by deleting end subsection (6)(b)(iii) and substituting a full-stop; and semi-colon the the at of (m) by deleting paragraph (c) of subsection (6).
Amendment of section 13Y 22 18.

Section 13Y(2) of the principal Act is amended by deleting the words “1st April 2010 and 31st March 2019” and substituting the words “1 April 2010 and 31 December 2024”.

5 Amendment of section 13Z 19.


Section 13Z of the principal Act is amended — (a) by deleting the words “or FRS 109” in subsections (6)(d) and (7)(b) and substituting in each case the words “, FRS 109 or SFRS(I) 9”; and (b) by deleting the definition of “FRS 109” in subsection (9) and substituting the following definitions: “ “FRS 109” and “SFRS(I) 9” have the meanings in those expressions to given section 34AA(15).”.

Amendment of section 14V 20.
Section 14V of the principal Act is amended — (a) by inserting, immediately after “INT FRS 112” in subsection (1)(a)(ii), the words “or SFRS(I) INT 12”; (b) by inserting, immediately after “INT FRS 112” in subsection (1)(c), the words “or SFRS(I) INT 12 (as the case may be)”; (c) by inserting, immediately after “FRS 38” wherever they appear in subsection (1), the words “or SFRS(I) 1-38 (as the case may be)”; and (d) by deleting subsection (2) and substituting the following subsection: 10 15 20 25 23 “(2) In this section — “FRS 38” and “SFRS(I) 1-38” mean the known standards reporting financial respectively as — (a) Financial Reporting Standard 38 5 (Intangible Assets); and (b) Singapore Standard (Intangible Assets), Financial (International) Reporting 1-38 that are made by the Accounting Standards Council under Part III of the Accounting Standards Act, as amended from time to time; “INT FRS 112” and “SFRS(I) INT 12” have the meanings given to those expressions in section 10F(2).”.
Amendment of section 14ZB 21.
Section 14ZB of the principal Act is amended — (a) by deleting subsection (1) and substituting the following subsections: “(1) Subject to this section, where the Comptroller is satisfied that a qualifying person has incurred, during the period between 1 July 2016 and 31 December inclusive), dates 2021 qualifying expenditure in respect of — (both (a) the provision during that period by a the qualifying satisfy that qualifying employee of person, services of subsection (2) to an IPC; or 10 15 20 25 24 (b) the secondment during that period of a the qualifying qualifying employee of person to an IPC, then there is to be allowed to the qualifying person a deduction in accordance with subsection (1A) or (1B), as the case may be.
(1A) Where the qualifying expenditure is salary expenditure, the deduction that the qualifying person is to be allowed is as follows: (a) where — (i) the expenditure is allowable as a deduction under section 14; and (ii) the qualifying person did not opt in the declaration under subsection (6) to compute the expenditure at the prescribed hourly rate, a further deduction equal to 150% of the endorsed amount of the expenditure in addition to the deduction allowed under section 14; (b) where — (i) the expenditure is allowable as a deduction under section 14; and (ii) the qualifying person opted in the declaration under subsection (6) to compute the expenditure at the prescribed hourly rate, a further deduction equal to 150% of the computed salary amount in addition to the deduction allowed under section 14; (c) where — (i) the expenditure is not allowable as a deduction under section 14; and 25 (ii) the qualifying person did not opt in the declaration under subsection (6) to compute the expenditure at the prescribed hourly rate, a deduction equal to 250% of the endorsed amount of the expenditure; 5 (d) where — (i) the expenditure is not allowable as a deduction under section 14; and (ii) the qualifying person opted in the declaration under subsection (6) to compute the expenditure at the prescribed hourly rate, a deduction equal to 250% of the computed salary amount.
(1B) Where the qualifying expenditure is not salary expenditure, the deduction that the qualifying person is to be allowed is as follows: (a) where the expenditure is allowable as a deduction under section 14 — a further deduction equal to 150% of the endorsed amount of the expenditure in addition to the deduction allowed under that section; (b) where the expenditure is not allowable as a deduction under section 14 — a deduction equal to 250% of the endorsed amount of the expenditure.”; (b) by inserting, immediately after subsection (5), the following subsection: “(5A) Where a qualifying person opted in a declaration under subsection (6) to compute any salary expenditure at the prescribed hourly rate, then the computed salary amount — 10 15 20 25 30 26 (a) is treated as the amount of that expenditure incurred by the qualifying person for the purposes of subsections (3) and (5); and (b) is to be used in computing the maximum amount of qualifying expenditure for which deductions may be allowed in relation to the IPC in question for the purposes of subsection (4).”; (c) by deleting sub-paragraph (ii) of subsection (6)(b) and substituting the following sub-paragraph: “(ii) the relevant details subsection (6A); and”; specified in (d) by inserting, immediately after subsection (6), the following subsection: “(6A) In subsection (6)(b)(ii), the relevant details are — (a) where — (i) the qualifying expenditure is salary expenditure; and (ii) the qualifying person opted in the declaration under subsection (6) to the compute the expenditure at prescribed hourly rate, the actual number of hours for which the services were provided, as well as the number of those hours (which may be the same number or a smaller number of hours) endorsed by the IPC for the deduction under subsection (1); or (b) in all other cases, the amount of the actual qualifying expenditure incurred, as well as the part of that amount (which may be the full amount or a part of it) endorsed by the 27 IPC for subsection (1).”; the deduction
25 30 27 IPC for subsection (1).”; the deduction under (e) by inserting, immediately after the word “expenditure” in subsection (10), the words “or the endorsed number of hours (as the case may be)”; 5 (f) by inserting, immediately after subsection (11), the following subsection: “(11A) Where — (a) the qualifying expenditure mentioned in subsection (11) is salary expenditure; and 10 (b) the computed salary amount of that expenditure was used to compute the amount of deduction allowed to the qualifying person, then, for the purpose of that subsection, the amount of the deduction that corresponds to the expenditure reimbursed is to be computed using the formula 15 A þ A B 150% C D ; where — (c) A is the amount of the reimbursement; 20 (d) B is the amount of the actual salary expenditure; (e) C is the prescribed hourly rate used in computing the computed salary amount; and (f) D is the endorsed number of hours used in computing the computed salary amount.”; (g) by inserting, immediately after the definition of “central the following hiring arrangement” in subsection (12), definition: 25 30 28 “ “computed salary amount”, in relation to any salary expenditure for the provision of any services by a qualifying employee, means an amount computed using the formula A × B, where — (a) A is the endorsed number of hours for those services; and (b) B is the prescribed hourly rate for those services;”; (h) by deleting the words “subsection (6)(b)” in the definition of “endorsed amount” in subsection (12) and substituting the words “subsection (6A)(b)”; (i) by inserting, immediately after the definition of “endorsed amount” in subsection (12), the following definition: “ “endorsed number of hours”, in relation to any services, means the number of hours for which those services are provided, as endorsed by an IPC under subsection (6A)(a);”; (j) by inserting, immediately after the definition of “IPC” in subsection (12), the following definition: “ “prescribed hourly rate”, in relation to
 the provision of any services by a qualifying employee, means the rate prescribed by rules made under section 7 for those services;”; (k) by deleting the words “under which the employee is required to work for at least 35 hours each week,” in the definition of “qualifying employee” in subsection (12); and (l) by deleting “2018” in subsection (13)(b) and substituting “2021”.
New section 14ZD 22.—(1) The principal Act is amended by inserting, immediately after section 14ZC, the following section: section applies basis the 29 “Deduction for expenditure incurred by individual in deriving commission 14ZD.—(1) This the purpose of ascertaining, of for assessment 2020 or a subsequent year of assessment, a qualifying individual’s income by way of commission that is derived from carrying on one or more trades, businesses, professions or vocations that are prescribed by rules made under section 7 (called in this section a prescribed activity or activities), in respect of which there are outgoings or expenses that are deductible under this Part.
period year the for for (2) Despite any other provision in this Part, there is to be deducted, in lieu of those outgoings or expenses, an amount computed in accordance with the formula A × B, where — (a) A is 25% or such other percentage as may be prescribed by rules made under section 7; and (b) B is the gross amount of the individual’s commission derived from carrying on a prescribed activity or (if the individual carries on more than one prescribed activity in the basis period) all of those prescribed activities in the basis period, being commission in respect of which there are outgoings or expenses that are deductible under this Part.
(3) However, subsection (2) does not apply to an individual who has made an election under subsection (4) to disapply subsection (2) to the individual’s commission derived from carrying on a prescribed activity or prescribed activities in the basis period.
(4) An individual may, in such form and manner and within such time as the Comptroller may determine, make an election to the Comptroller to disapply subsection (2) to the individual’s commission derived from carrying on a prescribed activity or prescribed activities in the basis period for a particular year of assessment.
(5) If the individual derived commission from carrying on more than one prescribed activity in the basis period in respect of which there are outgoings or expenses that are deductible under this Part, the individual may not make an election under subsection (4) in respect of only one or some of those prescribed activities.
(6) In this section — “commission” means commission that is chargeable to tax under section 10(1)(a), and includes such other payment as may be prescribed by rules made under section 7, but excludes any commission — (a) that is derived by the individual concerned as a partner of a partnership; or (b) that is prescribed by rules made under section 7 as not commission; “qualifying individual”, in relation to any basis period, means an individual who satisfies all of the following conditions: (a) the individual is resident in Singapore in the year of assessment relating to the basis period; (b) the individual derived commission from a prescribed activity or prescribed activities in the basis period, being commission in respect of which there are outgoings or expenses that are deductible under this Part, and the total amount of such commission does not exceed $50,000 or such amount as may be prescribed by rules made under section 7; (c) such other conditions as may be prescribed by rules made under section 7.”.
(2) Subsection (1) has effect for the year of assessment 2020 and subsequent years of assessment.

5 10 15 20 25 30 31 Amendment of section 19B 23.
Section 19B of the principal Act is amended — (a) by inserting, immediately after subsection (2B), the following subsections: “(2BA) If — (a) any requirement under subsection (2A)(a) and (b) has been waived (whether before, on or after the date the Income Tax (Amendment) Act 2019 is published in the Gazette) for a company in relation to any writing-down under subsection (2B); and allowances (b) the company fails to comply with a under condition subsequent subsection (2B) for such waiver, imposed then, if the Minister or the person appointed by the Minister is satisfied, having regard to the company’s representation and all the relevant circumstances of the case, that it is just and reasonable to do so, the Minister or appointed person — is not a determination that the (c) may make company any writing-down allowance in respect of the relevant intellectual property rights for each year of assessment beginning with a specified year of assessment; and entitled to (d) must give a written notice of the determination to the Comptroller and the company.
(2BB) If a subsection (2BA), section) — determination under then (despite anything in this is made 32 year those rights relevant each (a) any writing-down allowance that has already been made to the company in intellectual respect of property of for assessment beginning with the specified year of assessment the purposes of this section as having been wrongly made, and the Comptroller may, subject to section 74, make an assessment or additional assessment on the company for the year or years of assessment to make good any tax shortfall; and is treated for (b) no writing-down allowance may be made to the company in respect of the relevant intellectual property rights — (i) for any year of assessment after the assessment year years mentioned in paragraph (a); or of or (ii) if no writing-down allowance has been made to the company for the specified year of assessment, for the specified year of assessment and each of assessment.”; and subsequent year (b) by deleting paragraph (a) of subsection (10) and substituting the following paragraphs: “(a) under subsection (1) incurred for any capital expenditure of respect in intellectual property rights acquired after the last day of the basis period for the year of assessment 2016; (aa) under subsection (1AA) for any capital of incurred expenditure intellectual property rights acquired after the last day of the basis period for the year of assessment 2025; or”.
respect in 33 Amendment of section 26 24.

Section 26 of the principal Act is amended — (a) by inserting, immediately after the words “Insurance Act (Cap.
142)” in subsection (3)(b)(i), the words “after deducting any liability in respect of reinsurance ceded to a reinsurer”; (b) by inserting, immediately after the words “Insurance Act” in subsection (3)(b)(ii), the words “after deducting any liability in respect of reinsurance ceded to a reinsurer”; (c) by inserting, immediately after the words “Insurance Act” in paragraphs (a)(ii) and (b)(iv) of both definitions of “offshore life insurance surplus” in subsection (12), the words “and after deducting any liability in respect of reinsurance ceded to a reinsurer”; (d) by inserting, immediately after the words “Insurance Act” in paragraphs (a)(ii) and (b)(iv) of both definitions of “onshore life insurance surplus” in subsection (12), the words “and after deducting any liability in respect of reinsurance ceded to a reinsurer”; (e) by inserting, immediately after the words “Insurance Act” in the definition of “policy liabilities” in subsection (12), the words “, but excludes liabilities ceded to a reinsurer”; and (f) by inserting, immediately after the definition of “policy moneys” in subsection (12), the following definition: “ “reinsurer” has the meaning given by section 1A of the Insurance Act;”.
Amendment of section 34C 25.
Section 34C of the principal Act is amended — (a) by deleting the definitions of “FRS 38” and “FRS 103” in subsection (2) and substituting the following definitions: 30 34 “ “FRS 38”, “FRS 103”, “SFRS(I) 1-38” and “SFRS(I) 3” mean the financial reporting standards known respectively as — (a) Financial Reporting Standard 38 (Intangible Assets); (b) Financial Reporting Standard 103 (Business Combinations); (c) Singapore Standard (Intangible Assets); and Financial (International) Reporting 1-38 (d) Singapore Reporting Financial Standard (International) 3 (Business Combinations), that are made by the Accounting Standards Council under Part III of the Accounting Standards Act, as amended from time to time;”; and (b) by inserting, immediately after the words “FRS 38 and FRS 103” in subsection (20), the words “, or with SFRS(I) 1-38 and SFRS(I) 3,”.
Amendment of section 34G 26.

Section 34G of the principal Act is amended — (a) by deleting the definition of “FRS 109” in subsection (2) and substituting the following definitions: “ “FRS 109” and “SFRS(I) 9” have the meanings in those expressions given to section 34AA(15);”; and (b) by inserting, in subsection (5)(a), the words “or SFRS(I) 9, as the case may be”.

immediately after “FRS 109” New section 34J 35 27.
The principal Act is amended by inserting, immediately after section 34I, the following section: “Tax treatment arising from adoption of FRS 116 or SFRS(I) 16 34J.—(1) Where an MSI recipient (called in this section an electing recipient) makes an election in accordance with subsection (10) to adopt the tax treatment under this section, then, despite any other provision of this Act, that tax treatment applies in relation to the electing recipient in accordance with this section.
(2) If, in any applicable period, a sublease by the electing recipient of a sublease asset is recognised by the electing recipient as a finance lease in accordance with FRS 116 or SFRS(I) 16, any income of the electing recipient derived under that sublease in that applicable period is taken as having been derived from a finance lease for the purpose of section 10D.
(3) If, in any applicable period, a sublease by the electing recipient of a sublease asset is recognised by the electing recipient as an operating lease in accordance with FRS 116 or SFRS(I) 16, any income of the electing recipient derived under that sublease in that applicable period is taken as not having been derived from a finance lease for the purpose of section 10D.
(4) The electing recipient is not entitled to any deduction under Part V in a year of assessment for any outgoing or expense incurred during an applicable period in relation to a qualifying asset of which it is a lessee, against any income derived by it from any use of that qualifying asset.
(5) Where the electing recipient makes an election under subsection (10) at the time of lodgment of the return of income for the year of assessment for the basis period in which 12 December 2018 falls, then — (a) for the year of assessment for the basis period in which that date falls — the capital allowances to be made to it under section 19, 19A or 22 for any 36 qualifying asset of which it is a lessee, are to be reduced by an amount computed by the formula A 365 B; where — (i) A is the number of days between 12 December 2018 and the last day of the basis period for that year of assessment (both days inclusive); and (ii) B is the amount of the capital allowances for that year of assessment for that qualifying asset; (b) for the year of assessment for the basis period in which that date falls — no allowance may be made to, and no charge may be made on, the electing recipient under section 20 or 21 for any event mentioned in section 20(1) that occurs in the period between 12 December 2018 and the last day of the basis that year of assessment period for (both days inclusive), in relation to any qualifying asset of which it is a lessee; and (c) for any subsequent year of assessment other than the last year of assessment — (i) the electing recipient is not entitled to any allowance under section 19, 19A or 22; and (ii) no allowance may be made to, and no charge may be made on, the electing recipient under section 20 or 21 for any event mentioned in section 20(1) that occurs in the basis period for that year of assessment, in relation to any qualifying asset of which it is a lessee.
(6) Where the electing recipient makes the election under subsection (10) at the time of lodgment of the return of income for the year of assessment for any basis period other than that in for every year of which 12 December 2018 falls, then, 37 assessment beginning with the basis period in which it makes the election and before the last year of assessment — (a) the electing recipient is not entitled to any allowance under section 19, 19A or 22; and (b) no allowance may be made to, and no charge may be made on, the electing recipient under section 20 or 21 for any event mentioned in section 20(1) that occurs in the basis period for that year of assessment, in relation to any qualifying asset of which it is a lessee.
(7) For the last year of assessment, the capital allowances under section 19, 19A or 22 for any qualifying asset of which the electing recipient is a lessee, and which was leased for its trade or business before the date it ceases to be an MSI recipient, are to be — (a) computed on the residue of the capital expenditure or reducing value of the qualifying asset (as the case may be) after deducting all such allowances (including initial and annual allowances) that have or would (but for subsection (5) or (6)) have been made to the electing recipient for all past years of assessment, even if no such allowance was made; and (b) reduced by an amount computed by the formula A 365 B; where — (i) A is the number of days between the first day of the basis period of the last year of assessment and the day before the day the electing recipient ceases to be an MSI recipient (both days inclusive); and (ii) B is the amount of the capital allowances for the last year of assessment as computed in accordance with paragraph (a).
38 (8) For the last year of assessment, no allowance may be made to, and no charge may be made on, the electing recipient under section 20 or 21 for any event mentioned in section 20(1) that occurs between the first day of the basis period of that year of assessment and the day before the day it ceases to be an MSI recipient (both days inclusive), in relation to any qualifying asset of which it is a lessee.
(9) For each subsequent year of assessment after the last year of assessment, the capital allowances under section 19, 19A or 22 for any qualifying asset of which the electing recipient is a lessee, and which was leased for its trade or business before the day it ceases to be an MSI recipient, are to be computed on the residue of the capital expenditure or reducing value of the qualifying asset (as the case may be) after deducting — (a) all such allowances (including initial and annual allowances) that have or would (but for subsection (5) or (6)) have been made to the electing recipient for all past years of assessment, even if no such allowance was made; and (b) the total amount of such allowances that would have been made to the electing recipient for the last year of assessment under subsection (7)(b).
reduction without the (10) An MSI recipient may make an election to adopt the tax treatment under this section by providing a written notice to the Comptroller of this — (a) at the time of lodgment of the return of income for the year of assessment relating to a basis period during which its are prepared in accordance with FRS 116 or SFRS(I) 16; or accounts financial (b) within such further time as the Comptroller may allow.

(11) An election made under subsection (10) is irrevocable.
(12) If — 39 (a) the tax treatment under this section has been applied in relation to a ship that is provisionally registered under the Merchant Shipping Act (Cap.
179), and that is operated by an electing recipient that is a shipping enterprise and subsection (13) the provisionally-registered ship); and subsection (called this in (b) the electing recipient subsequently fails to obtain a permanent certificate of registry under that Act in respect of that ship, then the Comptroller must, in relation to every year of assessment for which the tax treatment under this section has already been applied in relation to the provisionally-registered ship — (c) make an assessment or additional assessment under section 74 on the electing recipient; or (d) revise an assessment already made and give a refund to the electing recipient for any tax overpaid, that year of as the case may be, as if the tax treatment had not been applied for in relation to both the provisionally-registered ship and relevant assets.
(13) In subsection (12), “relevant assets” means — assessment (a) if, at the end of the basis period for the year of assessment mentioned in that subsection, the electing recipient operates only the provisionally-registered ship and no other Singapore ship, all sublease assets and qualifying assets of the electing recipient; or (b) if, at the end of the basis period for the year of assessment mentioned in that subsection, the electing recipient operates one or more other Singapore ships in addition to the provisionally-registered ship, any on-board equipment integral to the operation of the provisionally-registered ship but no other ship.
(14) In this section — “applicable period” means — (a) the later of the following: (i) the period between 12 December 2018 and the last day of the basis period in which that date falls (both days inclusive); (ii) the basis period in which the electing under election the recipient makes subsection (10); (b) each basis period that is subsequent to the period mentioned in paragraph (a) and before the period mentioned in paragraph (c); or recipient, an MSI (c) the period starting on the first day of the basis period in which the electing recipient ceases to be on (and including) the day before the day of such cessation; “approved container investment enterprise” means an approved container investment enterprise mentioned in section 43ZA; ending and “approved international shipping enterprise” means an approved international shipping enterprise mentioned in section 13F; “approved shipping investment enterprise” means an approved shipping investment enterprise mentioned in section 13S; “container” has the meaning given by section 43ZA(7); “FRS 116” means the financial reporting standard issued by the Accounting Standards Council under Part III of the Accounting Standards Act and known as Financial Reporting Standard 116 (Leases); “intermodal equipment” has the meaning given by section 43ZA(7); 41 “last year of assessment” means the year of assessment for the basis period in which the electing recipient ceases to be an MSI recipient; “Maritime Sector Incentive recipient” or “MSI recipient” means a shipping enterprise, an approved international shipping enterprise, an approved shipping investment enterprise, or investment enterprise; an approved container 5 “qualifying asset” means — (a) in the case of an electing recipient that is a shipping enterprise, any of the following: 10 (i) any Singapore ship; (ii) any on-board equipment integral to the operation of Singapore ships; (iii) any container; (iv) any intermodal equipment or any other to the operation of integral equipment
 containers; (b) in the case of an electing recipient that is an approved international shipping enterprise, any of the following: (i) any ship; (ii) any on-board equipment integral to the operation of ships; (iii) any container; (iv) any intermodal equipment or any other to the operation of integral equipment containers; (c) in the case of an electing recipient that is an approved shipping investment enterprise, any of the following: (i) any ship; 15 20 25 30 42 (ii) any on-board equipment integral to the operation of ships; and (d) in the case of an electing recipient that is an approved container investment enterprise, any of the following: (i) any container; (ii) any intermodal equipment or any other to the operation of integral equipment containers, but excludes anything that is used solely in the basis period concerned to derive income that is not income that is subject to exemption or a concessionary rate of tax under section 13A, 13F, 13S or 43ZA; “SFRS(I) 16” means the financial reporting standard issued by the Accounting Standards Council under Part III of the Accounting Standards Act and known as Singapore 16 Financial Reporting Standard (Leases); (International) “ship” has the meaning given by section 2(1) of the Merchant Shipping Act; “shipping enterprise” means a company that owns or operates one or more Singapore ships; “Singapore ship” means — (a) a ship in respect of which a permanent certificate of registry has been issued under the Merchant Shipping Act and whose registry is not closed or deemed to be closed or suspended; or (b) a ship that is provisionally registered under that Act; 43 “sublease asset” means — (a) in the case of an electing recipient that is a shipping enterprise, any Singapore ship or container; (b) in the case of an electing recipient that is an approved international shipping enterprise, any ship or container; 5 (c) in the case of an electing recipient that is an approved shipping investment enterprise, any
 ship; and (d) in the case of an electing recipient that is an approved container investment enterprise, any container or intermodal equipment, but excludes anything that is used solely in the basis period concerned to derive income that is not income that is subject to exemption or a concessionary rate of tax under section 13A, 13F, 13S or 43ZA.”.
Amendment of section 37L 28.
Section 37L of the principal Act is amended — (a) by deleting the words “FRS 28, or SFRS for Small Entities, as amended from time to time” in subsection (16E) and substituting the words “FRS 28, SFRS(I) 1-28, or SFRS for Small Entities”; (b) by deleting subsection (16F) and substituting the following subsection: “(16F) In subsection (16E), “FRS 28”, “SFRS(I) 1-28” and “SFRS for Small Entities” mean the reporting standards known respectively financial as — (a) Financial Reporting (Investments Ventures); in Associates Standard 28 and Joint 10 15 20 25 30 44 (b) Singapore Financial Reporting Standard in 1-28 (International) Associates and Joint Ventures); and (Investments (c) Singapore Financial Reporting Standard for Small Entities, that are made by the Accounting Standards Council under Part III of the Accounting Standards Act, as amended from time to time.”; and (c) by inserting, immediately after subsection (19A), the following subsections: “(19B) If — (a) any under requirement subsections (16A)(d) and (17)(e) has been waived (whether before, on or after the date the Income Tax (Amendment) Act 2019 is published in the Gazette) for an acquiring company in respect of any qualifying acquisition under subsection (19A); and (b) the acquiring company fails to comply with imposed under a condition subsequent subsection (19A) for such waiver, then, if the Minister or the person appointed by the Minister is satisfied, having regard to the acquiring company’s the representation and all relevant circumstances of is just and it the case, the Minister or appointed reasonable to do so, person — that (c) may make a determination that the company is not entitled to any deduction in respect of the qualifying acquisition for each year of assessment beginning with a specified year of assessment; and (d) must give a written notice of the determination to the Comptroller and the company.
(19C) If a determination has been made under then (despite anything in this subsection (19B), section) — (a) any deduction that has already been made to the acquiring company in respect of the qualifying acquisition for each year of assessment beginning with the specified the year of assessment purposes of this section as having been wrongly allowed, and the Comptroller may, subject to section 74, make an assessment or additional assessment on the company for those years of assessment to make good any tax shortfall; and is treated for (b) no deduction may be made to the company for the qualifying acquisition — (i) for any year of assessment after the assessment year years mentioned in paragraph (a); or or of (ii) if no deduction has been made to the company for the specified year of assessment, for the specified year of assessment and each subsequent year of assessment.”.
Amendment of section 39 29.—(1) Section 39 of the principal Act is amended — (a) by deleting the words in subsection (2)(e) and substituting the words “a child who was unmarried throughout the year preceding the year of assessment and”; “an unmarried child” 46 (b) by deleting sub-paragraph (ii) of subsection (2)(p) and substituting the following sub-paragraph: “(ii) was looking after any of her children who is a citizen of Singapore and — (A) was 12 years old and below at any time during the year preceding of the assessment; or year (B) was unmarried throughout the year preceding the year of also assessment, incapacitated by reason of physical or mental infirmity; and”; and (c) by deleting the words “there shall be allowed against her earned income a deduction of $3,000 in respect of one such parent or grandparent only:” in subsection (2)(p) and the proviso and substituting the following: “there shall be allowed against her earned income a deduction of $3,000 in respect of one such parent or grandparent only, except that — (iv) a deduction under this paragraph in respect of that parent or grandparent may be allowed to one woman only; and the (v) where more than one woman claims a deduction under this paragraph in respect of same parent or grandparent, a deduction may be allowed to such claimant as the women may agree or (failing such to such claimant as agreement) the Comptroller by determined whose decision is final;”; and 47 (d) by inserting, immediately after subsection (2), the following subsection: “(2AA) In subsection (2)(p), “child” has the meaning given by paragraph 7 of the Fifth Schedule.”.
(2) Subsection (1)(b), (c) and (d) has effect for the year of 5 assessment 2020 and subsequent years of assessment.

Amendment of section 43 30.
Section 43 of the principal Act is amended — “March (a) by the deleting in words subsections (2A)(ba), (3B) and (3C)(b) and substituting in each case the words “December 2025”; and 2020” (b) by inserting, immediately after subsection (3C), the following subsections: “(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 to a distribution made to any of the following persons or entities that is not resident in Singapore: applies (3E) (a) a prescribed person (other individual) under section 13CA; than an (b) an approved person under section 13X; 10 15 20 25 30 48 (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 13X; (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 13X; (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 13X; (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 13X, 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 13X; (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 13X; (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 49 master-feeder fund-SPV structure under section 13X; (j) a taxable entity in relation to an approved feeder fund of an approved master-feeder fund-SPV structure under section 13X, 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 13X; (l) an approved 2nd tier SPV of
 an approved master-feeder fund-SPV structure under section 13X; (m) an approved eligible SPV of an approved master-feeder fund-SPV structure under section 13X, 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 fund-SPV master-feeder structure under section 13X, 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 fund-SPV structure under section 13X, where the eligible SPV is a trust fund; approved master-feeder (p) the taxable entity of an approved eligible approved master-feeder SPV of fund-SPV structure under section 13X, where the eligible SPV is not a legal entity; an (q) an approved 1st tier SPV of an approved under fund-SPV structure master section 13X; 50 (r) an approved 2nd tier SPV of an approved under fund-SPV structure master section 13X; 5 10 15 20 fund-SPV (s) an approved eligible SPV of an approved under master section 13X, where the eligible SPV is not one mentioned in paragraphs (t), (u) and (v); structure (t) a partner of an approved eligible SPV of an approved master fund-SPV structure under section 13X, 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 13X, 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 13X, where the eligible SPV is not a legal entity; (w) a prescribed sovereign fund entity or an government-owned foreign approved entity under section 13Y.”.
25 Amendment of section 43A 31.

Section 43A(2) of the principal Act is amended by inserting, immediately after “FRS 109” in paragraph (d), the words “or SFRS(I) 9”.

Amendment of section 43C 32.
Section 43C(1) of the principal Act is amended — 30 (a) by inserting, immediately after the word “derived” in paragraph (a), the words “before 1 July 2021”; and 51 (b) by inserting, immediately after paragraph (aa), the following paragraph: “(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 2(1)(a) of the Insurance Act; or (ii) such description of general business as defined in section 2(1)(b) of that Act, as may be prescribed;”.
Amendment of section 43N 33.

Section 43N(4) of the principal Act is amended by deleting the definition of “primary dealer” and substituting the following definition: “ “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 (Cap.

121A);”.

Amendment of section 43ZA 34.
Section 43ZA of the principal Act is amended — (a) by deleting the word “and” at the end of subsection (1)(c); (b) by deleting the full-stop at the end of paragraph (d) of subsection (1) and substituting a semi-colon, and by inserting immediately thereafter the following paragraphs: “(e) the leasing of any container used for if transportation of goods, international the container was — 52 (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 that (g) foreign exchange and risk management in are to the (e) activities connection with and incidental leases mentioned and (f).”; paragraphs carried out in (c) by inserting, immediately after subsection (1), the following subsection: “(1A) Subsection (1)(e), (f) and (g) only applies to income derived on or after 12 December 2018.”; (d) by deleting the words “Subsection (1)” in subsection (2) and substituting the words “Subsection (1)(a), (b), (c) or (d)”; (e) by deleting the words “referred to in subsection (1)” in subsection (2) and substituting the words “mentioned in that provision”; 53 (f) by inserting, immediately after subsection (2), the following subsections: “(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 the expiry or before the have by the date of withdrawal, their respective approvals under subsection (4).
the conditions of fulfilled all (2B) For the purpose of subsection (2A), the container investment enterprise is treated under this section as investment an approved container 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.”; (g) by inserting, immediately after the words “container investment enterprise” in subsection (3), the words “or a related party of an approved container investment enterprise”; (h) by deleting the full-stop at the end of the definition of “registered business trust” and substituting a semi-colon, and by inserting immediately thereafter the following definition: “ “related party”, in subsection (7) in relation to an approved container investment enterprise, means any entity that is related to the approved container investment enterprise in such manner as may be prescribed by rules made under section 7.”; and 54 (i) by inserting, immediately after subsection (7), the following subsection: “(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.”.
Amendment of section 45AA 35.
Section 45AA of the principal Act is amended — (a) by deleting subsection (1) and substituting the following subsections: “(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 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 condition precedent or a condition subsequent) after any such payment has been made.
(1A) The amount of tax which, but for — a (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.”; and (b) by deleting the words “subsection (1)” in subsections (2), (4) and (7) and substituting in each case the words “subsection (1A)”.
Amendment of section 45G 36.

Section 45G of the principal Act is amended — (a) by inserting, immediately after the words “section 43(3B)” in subsection (1)(a), the words “, (3C), (3D) or (3E)”; and (b) by deleting the words “March 2020” in subsections (2)(a) and (b) and (5) and substituting in each case the words “December 2025”.

New section 45J 37.
The principal Act is amended by inserting, immediately after section 45I, the following section: “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 56 (b) section 45(3), (4), (5), (6) and (7) (including those provisions as applied by sections 45A, 45F and 45GA) does not apply.”.

5 10 15 Amendment of section 83 38.
Section 83 of the principal Act is amended — (a) by deleting the words “and in appeals to, or in cases stated for the opinion of, the High Court under the provisions of this Part, and in appeals from decisions of the High Court under section 81(5)” in subsection (1); (b) by deleting the words “or the High Court, as the case may be,” in subsection (2); (c) by deleting the words “or the Court” in subsections (2) and (3); (d) by deleting the words “or the High Court” in subsection (3); and (e) by deleting the words “and High Court” in the section heading.
Amendment of section 101 39.

Section 101(2) of the principal Act is amended by inserting, immediately after the word “sections”, “34F(8),”.

20 New sections 105R and 105S 40.
The principal Act is amended by inserting, immediately before section 106 in Part XXI, the following sections: “Revocation of approval 105R.—(1) This section applies where — (a) either — (i) a person is approved by the Minister or a person appointed by the Minister (called in this section the approving authority) under a prescribed section for a tax incentive to be applied to the 25 30 57 person’s regulations made under that provision; or income under that provision or (ii) a matter is approved by an approving authority under a prescribed section for a tax incentive to be applied to a person’s income under that provision or that provision; and regulations made under (b) the person fails to comply with a condition of the approval.
(2) The approving authority may, by written notice, require the person to show cause, within 30 days after the date the notice is served on the person or such longer period as the approving authority may permit in a particular case, why the approval should not be revoked.
(3) If the approving authority is satisfied, having regard to the person’s representation and all the relevant circumstances of the case, that it is just and reasonable to do so, the approving authority may revoke the approval, and the revocation is effective from a date specified by the approving authority to the person.
(4) The approving authority may specify any date for the revocation to take effect, including (if it is just and reasonable to do so) — (a) a date before the date of the non-compliance with the condition; or (b) if the condition is to be complied with over a period of time, before the date of commencement of that period.
(5) The revocation of an approval under this section does not affect the operation of any provision of this Act providing for other consequences for a breach of a condition of the approval.
(6) To avoid doubt, where — (a) a tax incentive has been applied to any income of the person under a prescribed section, or an order under section 13(12); 58 (b) the tax incentive would not have been applied to the person’s income if the person or matter were not an approved person or matter under the prescribed section on the date the relevant income accrued to or was derived or received by the person, or the relevant expenditure was incurred by the person, as the case may be; and (c) the approval is revoked under this section with effect from or before that date, the Comptroller may make an assessment or additional assessment under section 74 on the person.
(7) This section applies to an approval given under a prescribed section whether before, on or after the date the Income Tax (Amendment) Act 2019 is published in the Gazette.
(8) In this section — (a) a prescribed section is a section of the Act specified in the Fourth Schedule; (b) a tax incentive is any of the following: (i) an exemption from tax; (ii) a concessionary rate of tax; (iii) a deduction or an allowance; (iv) a reduction of the statutory income of a person; (c) a tax incentive that is an exemption from tax is applied to a person’s income if any income of the person becomes exempt from tax; (d) a tax incentive that is a concessionary rate of tax is applied to a person’s income if tax is levied on any income of the person at that rate; (e) a tax incentive that is a deduction or an allowance is applied to a person’s income if it is allowed or made for any expenditure in ascertaining the person’s chargeable income; and 59 (f) a tax incentive that is a reduction of the statutory income of a person is applied to a person’s income if such reduction is made to the person’s statutory income.
Conditions for application of tax incentive treated as conditions of approval 105S.—(1) This section applies to each of the following approvals made before the date the Income Tax (Amendment) Act 2019 is published in the Gazette: (a) an approval of a Finance and Treasury Centre of a company under section 43G for tax at a concessionary rate to be levied on the company’s income under regulations made under that section; (b) an approval of a person under section 43P, 43Q, 43R, 43W, 43Y, 43Z, 43ZB, 43ZC or 43ZD, for tax at a concessionary rate to be levied on the person’s regulations made income under under that section, as the case may be.
that section or or 43ZC(3) 43ZD(3) 43ZB(3), (2) For the purposes of section 105R, every condition imposed or specified before the date mentioned in subsection (1) under section 43G(2), 43P(2), 43Q(2), 43R(2), 43W(3), 43Y(2), 43Z(3), force immediately before that date, in relation to a Finance and Treasury Centre or person, is treated as a condition imposed on the approval of the Finance and Treasury Centre or person (as the case may be) under the corresponding section mentioned in subsection (1).
(3) In this section, “Finance and Treasury Centre” has the same meaning as in section 43G.”.

as in Amendment of section 106 41.

Section 106(3) of the principal Act is amended by inserting, immediately after the word “First,”, the word “Fourth,”.

5 10 15 20 25 30 New Fourth Schedule 60 42.


The principal Act is amended by inserting, immediately before the Fifth Schedule, the following Schedule: “FOURTH SCHEDULE Sections 45AA(1)(a), 105R(8)(a) and 106(3) PRESCRIBED SECTIONS Sections 13F, 13H, 13P, 13S, 13U, 14E, 37K, 43C, 43G, 43J, 43P, 43Q, 43R, 43W, 43Y, 43Z, 43ZA, 43ZB, 43ZC, 43ZD, 43ZF, 43ZG, 43ZH and 43ZI.”.
Miscellaneous amendments relating to new sections 105R and 105S 43.—(1) Section 43G of the principal Act is amended — (a) by inserting the word “and” at the end of subsection (2)(a); (b) by deleting the word “; and” at the end of subsection (2)(b) and substituting a full-stop; (c) by deleting paragraph (c) of subsection (2); and (d) by inserting, immediately after subsection (2), the following subsection: “(2A) The Minister or a person appointed by the to such conditions as the Minister may, subject Minister or person may impose, approve a Finance and Treasury Centre for a company for the purposes of this section.”.
(2) Section 43N(4) of the principal Act is amended by deleting the definition of “financial sector incentive (standard tier) company” and substituting the following definition: “ “financial sector incentive (standard tier) company” means a company approved as such under section 43Q;”.
61 (3) Section 43P of the principal Act is amended — (a) by inserting, immediately after subsection (1), the following subsections: “(1AA) Subject under subsection (1), the income of an approved global trading company or approved qualifying company mentioned in that subsection — regulations the to (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 a person appointed by the Minister may, subject to such conditions as the Minister or person may impose, approve — (a) a global trading company as an approved global trading company; or (b) a qualifying company as an approved qualifying company.”; 5 10 15 20 (b) by deleting subsection (2); and (c) by deleting the definition of “approved” in subsection (3).
(4) Section 43Q of the principal Act is amended — (a) by deleting subsection (2) and substituting the following 25 subsection: “(2) The Minister or a person appointed by the Minister may, subject to such conditions as the Minister or person 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 person may approve different classes of financial 30 62 sector incentive companies for the purposes of this section.”; and (b) by deleting subsection (3).
(5) Section 43R of the principal Act is amended — (a) by deleting subsection (2) and substituting the following subsection: “(2) The Minister or a person appointed by the Minister may, subject to such conditions as the Minister or person may impose, approve a company as an approved company for the purposes of this section.”; and (b) by deleting subsection (5).
(6) Section 43W of the principal Act is amended by deleting subsection (3) and substituting the following subsection: “(3) The Minister or a person appointed by the Minister may, subject to such conditions as the Minister or person may impose, approve a shipping investment manager as an approved shipping investment manager for the purposes of this section.”.
(7) Section 43Y of the principal Act is amended — (a) by deleting subsection (2) and substituting the following subsection: “(2) The Minister or a person appointed by the Minister may, subject to such conditions as the Minister or person may impose, approve an aircraft leasing leasing company as an approved aircraft company for the purposes of this section.”; and (b) by deleting the definition of “approved” in subsection (7).
(8) Section 43Z of the principal Act is amended by deleting subsection (3) and substituting the following subsection: “(3) The Minister or a person appointed by the Minister may, subject to such conditions as the Minister or person may impose, approve an aircraft investment manager as an approved aircraft investment manager for the purposes of this section.”.
63 (9) Section 43ZB of the principal Act is amended by deleting subsection (3) and substituting the following subsection: “(3) The Minister or a person appointed by the Minister may, subject to such conditions as the Minister or person may impose, investment manager as an approved approve a container container investment manager for the purposes of this section.”.
(10) Section 43ZC of the principal Act is amended — (a) by deleting subsection (3) and substituting the following subsection: “(3) The Minister or a person appointed by the Minister may, subject to such conditions as the Minister or person 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.”; and 5 10 15 (b) by deleting the definition of “approved insurance broker” in subsection (5).
(11) Section 43ZD of the principal Act is amended — (a) by deleting subsection (3) and substituting the following 20 subsection: “(3) For the purposes of this section, the Minister or a person appointed by the Minister may, subject to such conditions as the Minister or person 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.”; and 25 30 (b) by deleting the definition of “approved” in subsection (5).
64 Repeal of obsolete provisions 44.
The principal Act is amended — (a) by deleting the definition of “securities” in section 10(23) and substituting the following definition: “ “securities” means — (a) debentures, stocks, shares, bonds or notes issued by a government of company; (b) any right or option in respect of any shares, stocks, debentures, such bonds or notes; or (c) units in any unit trust within the meaning of section 10B;”; (b) by repealing section 10A; (c) by deleting the words “section 10A” in the definition of “securities” in section 10B(2) and substituting the words “section 10(23)”; (d) by deleting subsections (4) and (5) of section 10C; (e) by deleting the words “Subsections (4) and (5A)” in words substituting and the section 10C(6) “Subsection (5A)”; (f) by deleting sub-paragraph (i) of section 13(1)(aa); (g) by deleting paragraphs (jc), (o) and (zn) of section 13(1); (h) by deleting paragraphs (f) and (fa) of section 14(1); (i) by deleting subsection (1A) of section 14; (j) by deleting the words “subsection (1)(f) or (fb), as the case may be,” in the definition of “general contribution” in section words “subsection (1)(fb)”; substituting 14(8) and the (k) by deleting the words “subsection (1)(f) or (fb), as the case may be” in paragraph (e) of the definition of “medical expenses” in section 14(8) and substituting the words “subsection (1)(fb)”; (l) by deleting the words “any investment company which has been approved under section 10A or” in section 14F(3); (m) by deleting subsection (6) of section 14Q; (n) by inserting the word “or” at the end of section 14Q(7)(b); 5 (o) by deleting paragraphs (c), (d) and (e) of section 14Q(7); to (f)” in (p) by deleting the words “subsection (7)(c) words substituting and the section 14Q(8) “subsection (7)(f)”; (q) by deleting the words “Subsection (7)(c) section 14Q(8A) “Subsection (7)(f)”; and substituting to (f)” in the words (r) by deleting “(f), (fa),” in section 15(1)(i)(iv); (s) by deleting subsection (13B) of section 19A; (t) by deleting the words “subsections (10A),
 (13A) and (13B)” in section 19A(14) and substituting the words “subsections (10A) and (13A)”; (u) by deleting paragraph (a) of section 26A(2A); (v) by deleting the words “for the purposes of every subsequent year of assessment,” in section 26A(2A)(b); (w) by deleting “, (13B)” in section 34G(15)(d); (x) by deleting the words “section 10A” in the definition of “securities” in section 35(14) and substituting the words “section 10(23)”; (y) by inserting section 37C(15)(c); the word “and” at the end of 10 15 20 25 (z) by deleting the semi-colon at the end of section 37C(15)(d) and substituting a full-stop; (za) by deleting paragraphs (e) and (f) of section 37C(15); 30 (zb) by deleting the definition of “qualifying start-up company” 66 in section 37C(19); (zc) by repealing section 37H; (zd) by deleting paragraph (f) of section 39(2) (including the paragraph heading); (ze) by deleting the words July 2009 to 31st December 2010 (both dates inclusive), or” in section 43(2B)(a); “from 1st (zf) by deleting subsection (11) of section 50; (zg) by deleting the words “and (9) to (12)” in section 50C(6) and substituting the words “, (9), (10) and (12)”; (zh) by deleting the words “Subject to subsection (3),” in section 100(2); and (zi) by deleting subsection (3) of section 100.
Related amendments to Stamp Duties Act 45.

Section 15A of the Stamp Duties Act (Cap.
312) is amended — (a) by deleting the words “FRS 28, or SFRS for Small Entities, as amended from time to time” in subsection (18A) and substituting the words “FRS 28, SFRS(I) 1-28, or SFRS for Small Entities”; (b) by deleting the definition of “FRS 28” in subsection (19) and substituting the following definitions: “ “FRS 28”, “SFRS(I) 1-28” and “SFRS for Small reporting the Entities” mean standards known respectively as — financial (a) Financial Reporting Standard 28 (Investments in Associates and Joint Ventures); (b) Singapore Financial (International) Reporting Standard 1-28 (Investments in Associates and Joint Ventures); and 67 (c) Singapore Financial Reporting Standard for Small Entities, that are made by the Accounting Standards Council under Part III of the Accounting Standards Act (Cap.
2B), as amended from time to time;”; and (c) by deleting the definition of “SFRS for Small Entities” in subsection (19).

Remission of tax for year of assessment 2019 46.—(1) There is to be remitted the tax payable for the year of assessment 2019 by an individual resident in Singapore an amount equal to the lower of the following: (a) 50% of the tax payable by that individual for that year of assessment; (b) $200.

(2) The amount of such remission is to be determined by the Comptroller.
Saving and transitional provisions 47.

For a period of 2 years after the date of commencement of any provision of this Act, the Minister may, by regulations, prescribe such additional provisions of a saving or transitional nature consequent on the enactment of that provision as the Minister may consider necessary or expedient.

5 10 15 20 EXPLANATORY STATEMENT This Bill seeks to implement the tax changes in the Government’s 2019 Budget Statement in the Income Tax Act (Cap.
134) (the Act) and to make certain other amendments to the Act.

It also makes related amendments to the Stamp Duties Act (Cap.

312).

Clause 1 relates to the short title and commencement.

68 Clause 2 amends the definition of “Comptroller” in section 2 (Interpretation) so that, for the purpose of compounding an offence under section 34F(8), the reference to “Comptroller” in section 34F(9) does not include a Deputy Comptroller or an Assistant Comptroller.
Clause 3 amends section 10B (Profits of unit trusts) to provide that no unit trust may be approved under that section after 18 February 2019.

Clause 4 amends section 10F (Ascertainment of income from certain public-private partnership arrangements).
The section provides that a person providing FRS 115 construction or upgrade services to the Government or an approved statutory body under a public-private partnership arrangement to which the financial reporting standard INT FRS 112 or SFRS(I) INT 12 applies, has a right to elect for any amount that is treated as income from such services under that financial reporting standard, to be treated as having been derived in the basis period in which those services are completed.
The amendment extends this treatment to SFRS(I) 15 construction or upgrade services.

Clause 5 amends section 12 (Sources of income) to provide an exception to subsection (7).

Subsection (7) provides (among other matters) that rent for the use of movable property that is borne by a person resident in Singapore or a permanent establishment in Singapore, or is deductible against income accruing in or derived from Singapore, is deemed as derived from Singapore and chargeable to tax.
The amendment disapplies this provision to rent that is paid for the use outside Singapore of any tangible movable property, where — (a) the use is connected with the purpose of an overseas trip undertaken for a trade, business, profession or vocation carried on in Singapore by a person resident in Singapore, or carried on through a permanent establishment in Singapore; or (b) the use is connected with the maintenance of a representative office outside Singapore for the purpose of a trade, business, profession or vocation carried on in Singapore.
An example of property that is tangible movable property is a vehicle.

An example of property that is not tangible movable property is intellectual property.
Clause 6 amends section 13 (Exempt income) for the following purposes: (a) to delete the words “on or before 31 March 2020” in subsection (1)(zh) so that any distribution from a real estate investment trust (REIT) made out of income that is subject to tax transparency under section 43, to an individual unit holder is (with some exceptions) exempt from tax under that provision, regardless of the date of distribution; (b) to delete the words “during the period from 1 July 2018 to 31 March 2020 (both dates inclusive)” in subsection (1)(zs) so that any distribution from a REIT exchange-traded fund that is approved for 69 the purposes of section 43(2), out of income that is subject to tax transparency under section 43, to an individual unit holder is (with some exceptions) exempt from tax under that provision, regardless of the date of distribution; (c) to extend the date on or after which orders made under subsection (12) are to operate in the manner set out in subsections (12A) and (12B), to 1 January 2026.
Subsections (12A) and (12B) provide that orders made under subsection (12) which exempt from tax income received by the trustee of a REIT or a wholly owned subsidiary of a REIT, continue to have effect on or after the stated date only in relation to income received in Singapore that is paid out of income or gains relating to immovable property outside Singapore and acquired before that date, and derived at a time when the trustee or subsidiary beneficially owns the property, or from the disposal of the property; (d) to grant exemption from tax of certain income derived from debt securities commonly known as insurance-linked securities, if at least 20% of the costs incurred in relation to the issue of the securities are required to be paid to persons or partnerships that carry on any business, trade or profession in Singapore.
Clause 7 amends section 13A (Exemption of shipping profits) which provides for certain income of a shipping enterprise to be exempt from tax under that section.

The amendment provides that the tax exemption applies to income derived on or after 12 December 2018 by a shipping enterprise from the finance leasing of a Singapore ship, including any such income derived from foreign exchange and risk management activities that are carried out in connection with or incidental to the finance lease.
The clause also makes consequential amendments to the definition of “finance leasing” in that section.

Clause 8 amends section 13CA (Exemption of income of prescribed persons arising from funds managed by fund manager in Singapore) to extend the date by which a company or trustee of a trust fund must be incorporated or constituted to be eligible for the tax exemption under that section, to 31 December 2024.
Clause 9 amends section 13F (Exemption of international shipping profits) which provides for certain income of an approved international shipping enterprise to be exempt from tax under that section.
The amendment provides that the following income derived on or after 12 December 2018 by an approved international shipping enterprise is exempt from tax: (a) the finance leasing of any foreign ship to any person where the ship is used by that person for the carriage of passengers, mail, livestock or goods outside the limits of the port of Singapore; 70 (b) the finance leasing of any foreign dredger, foreign seismic ship, or any foreign ship used for offshore oil or gas activity to any person for such use outside the limits of the port of Singapore; (c) the finance leasing of any foreign ship to any person where the ship is used by the person for towage and salvage operations outside the limits of the port of Singapore; (d) the finance leasing of any foreign ship for offshore renewable energy activity or offshore mineral activity to any person, for the person’s operation outside the limits of the port of Singapore; (e) foreign exchange or risk management activities in connection with and incidental to an activity mentioned in paragraphs (a), (b), (c) and (d).
Clause 10 amends section 13G (Exemption of income of foreign trust) to extend the date by which a foreign trust or eligible holding company is to be constituted or incorporated for certain of its income to be exempt from tax under the section and, in relation to a trust or company that is constituted or incorporated before that date, to prescribe a later basis period in which certain conditions are to be satisfied for such exemption to apply.
Clause 11 amends section 13H (Exemption of income of venture company) to amend subsection (2C) to remove any doubt that the Minister or such person as the Minister may appoint may impose conditions in granting approval for tax exemption under the section.

The clause also deletes the definition of “approved” in subsection (18) as it is not necessary.
Clause 12 amends section 13N (Exemption of tax on income derived by non-ordinarily resident individual) to provide for the phasing-out of the Not Ordinarily Resident (NOR) Scheme.

The last consecutive 5-year period for which an NOR status may be granted to an individual under that section is the period from the year of assessment 2020 to the year of assessment 2024.
An application for the NOR status must be made before 1 January 2025, and the last year of assessment which an NOR individual may elect for the tax exemption to apply under that section is the year of assessment 2024.
Clause 13 amends section 13O (Exemption of income of foreign account of philanthropic purpose trust) — (a) to extend the date by which a philanthropic purpose trust or an eligible holding company is to be constituted or incorporated for certain of its income to be exempt from tax under the section and, in relation to a trust or company that is constituted or incorporated before that date, to prescribe a later basis period in which certain conditions are to be satisfied for such exemption to apply; and (b) to modify the requirements to be satisfied by a corporate settlor of an account of a philanthropic purpose trust for income from such account 71 to be exempt from tax for the year of assessment 2021 onwards, as follows: (i) the settlor must not carry on a business in or outside of Singapore (and not just in Singapore) in the basis period for the year of assessment; (ii) the settlor must not have 20% or more of the total number of its issued shares beneficially owned by another company which carries on a business in or outside of Singapore (and not just in Singapore).
Clause 14 amends section 13Q (Exemption of relevant income of prescribed locally administered trust) to extend the date by which a locally administered trust or holding company established for the purpose of such trust, is to be constituted or incorporated for certain of its income to be exempt from tax under the section and, in relation to a trust or company that is constituted or incorporated before that date, to prescribe a later basis period in which certain conditions are to be satisfied for such exemption to apply.
Clause 15 amends section 13R (Exemption of income of company incorporated and resident in Singapore arising from funds managed by fund manager in Singapore) to extend the date by which a company may be approved for a tax exemption under that section, to 31 December 2024.
Clause 16 amends section 13S (Exemption of income of shipping investment enterprise) which provides (among other matters) for income derived by an approved shipping investment enterprise from the chartering or finance leasing of any sea-going ship that was acquired by the enterprise before or during the period of its approval, and income derived from foreign exchange and risk management activities in connection with and incidental to such chartering or finance leasing, to be exempt from tax under that section.
The amendment extends the provision by exempting from tax income derived on or after 12 December 2018 by an approved shipping investment enterprise from the chartering or finance leasing of a sea-going ship, which the enterprise had chartered, or leased under a finance lease, from an approved related party.

The ship must have been acquired by the related party before or during the period of the approval of the related party.
Income from foreign exchange and risk management activities connected with and incidental to such chartering or finance leasing is similarly exempt from tax.

Clause 16 further amends section 13S to provide that income of an approved shipping investment enterprise derived on or after 12 December 2018 from the chartering or finance leasing of a sea-going ship that was acquired by way of a finance lease entered into with an entity that is not an approved related party, does not qualify for tax exemption.
Clause 17 amends section 13X (Exemption of income arising from funds managed by fund manager in Singapore) — 72 (a) to provide that the exemption of tax under that section is also subject to the conditions of approval of a special purpose vehicle (SPV), in a case where the income to be exempt is that of an SPV; (b) to enable the income of an SPV of an approved master-feeder fund-SPV structure or an approved master fund-SPV structure to be approved for tax exemption under the section, even though it is not a 1st or 2nd tier SPV that is wholly owned by the master fund of the structure.
To be eligible to be so approved, the net benefits of all investments held by the SPV must go to the master fund, or the master fund and certain other persons or investment vehicles.

Such approval may only be given on or after 19 February 2019; (c) to enable an SPV that is not a company to be approved for tax exemption under the section; and (d) to extend the period by which approvals of persons and investment vehicles for the purpose of the tax exemption under the section may be granted.
Clause 18 amends section 13Y (Exemption of certain income of prescribed sovereign fund entity and approved foreign government-owned entity) to extend till 31 December 2024 the period in which a foreign government-owned entity may be approved for a tax exemption under that section.
Clause 19 amends section 13Z (Exemption of gains or profits from disposal of ordinary shares) which provides for tax exemption on any gains or profits derived by a company from the disposal of ordinary shares belonging to it in another company.
Where the company given the exemption had in an earlier year of assessment claimed a deduction or been charged to tax for certain losses or profits attributable to the disposed shares, the amount of the losses or profits will be treated as chargeable income or allowable expenses of the company in the year of the disposal.

The losses and profits include a loss and profit recognised under certain financial reporting standards.
The amendment adds a reference in the latter to the financial reporting standard known as SFRS(I) 9.
Clause 20 amends section 14V (Deduction for amortisation of intangible asset created under public-private partnership arrangement), which provides that where an intangible asset is created under a public-private partnership arrangement to which INT FRS 112 applies, and amortisation of the asset is recognised in accordance with the financial reporting standard known as FRS 38 in financial statements for a basis period for a year of assessment, then the amount of the amortisation that (in accordance with FRS 38) is recognised as an expense is an allowable deduction against an amount deemed as income for that basis period from providing services under the arrangement under the amended section 10F.
73 The amendment extends the section to an intangible asset created under a public-private partnership arrangement to which SFRS(I) INT 12 applies, and to the amortisation of such asset that is recognised under the financial reporting standard known as SFRS(I) 1-38.
Clause 21 makes various amendments to section 14ZB (Deduction for expenditure for services or secondment to institutions of a public character), which allows an entity that incurs certain expenditure when its employees provided services to an institution of a public character by arrangement with the institution and on the instruction or request of the entity, to claim an additional deduction.
The amendments are for the following purposes: (a) where the expenditure is salary expenditure, to allow an entity to opt for the expenditure to be computed on a fixed hourly rate to be prescribed in rules; (b) to allow an entity to claim such deduction irrespective of the number of working hours per week of the employee who provided the services or who was seconded; (c) to make an amendment to subsection (13) that was inadvertently omitted when the section was amended in 2018 extending the period during which expenditure incurred may be allowed a deduction under that section.
Clause 22 inserts a new section 14ZD to enable a resident individual who derives in a basis period commission from one or more prescribed activities that is chargeable to tax under section 10(1)(a), to claim a deduction for outgoings and expenses incurred of an amount that is determined by a prescribed formula, instead of the actual amount of such outgoings and expenses.
This only applies to commission income from a prescribed activity or prescribed activities in respect of which there are deductible outgoings or expenses.
For example, if an individual — (a) derived commission income from activity A, in respect of which the individual did not incur any deductible expense; and (b) derived commission income from activity B, in respect of which the individual incurred deductible expense, then the prescribed formula may only be applied to the commission income from activity B and is to be deducted against such income.
The application of the new tax treatment is subject to the following: (a) the gross amount of commission derived by the individual from a prescribed activity or prescribed activities in the basis period for which there are deductible outgoings and expenses must not exceed $50,000; 74 (b) the individual may elect to disapply the tax treatment under the section to any such commission derived in the basis period for a particular year of assessment.
If the individual carried on more than one prescribed activity, he or she may not make the election for only one or some of those activities; (c) the commission excludes any commission derived by the individual as a partner in a partnership.
Clause 23 amends section 19B (Writing-down allowances for intellectual property rights) to provide that, if a condition subsequent imposed for the waiver of certain requirements for the making of writing-down allowances to a company is not complied with, and the authority that waived the requirements considers that it is just and reasonable to do so, it may make a determination that the company is not entitled to any writing-down allowances in respect of the relevant intellectual property rights beginning with a specified year of assessment.
Where such determination is made — (a) any allowances already made for the specified or a subsequent year of assessment are treated as having been wrongly made to the company and an assessment may be raised to recover any tax shortfall; and (b) the allowances may no longer be made to the company for the capital expenditure for those intellectual property rights.
Clause 23 also amends section 19B — (a) to provide that the period in which intellectual property rights must be to be granted under acquired for writing-down allowances subsection (1) ends on the last day of the basis period for the year of assessment 2016; and (b) to extend the period (till the last day of the basis period for the year of assessment 2025) in which intellectual property rights may be acquired for the grant of the writing-down allowance under subsection (1AA) on the capital expenditure incurred in such acquisition.
Clause 24 makes various amendments to section 26 (Profits of insurers) that are consequential on amendments made to the Insurance (Valuation and Capital) Regulations 2004 (G.N.

No.

S 498/2004) in 2018.

The amendments are to ensure that any increase or decrease in policy liabilities of an insurer in a basis period that is deductible or taxable continues to be net of liabilities in respect of reinsurance ceded to a reinsurer.
Clause 25 amends subsection (20) of section 34C (Amalgamation of under companies), which section 19B may be granted to an amalgamated company of a qualifying amalgamation in respect of intellectual property rights that are recognised under certain financial reporting standards but were not in existence prior to the no writing-down allowances provides that 75 amalgamation.
The amendment extends this treatment to intellectual property rights that are recognised under the financial reporting standards SFRS(I) 1-38 and SFRS(I) 3.
Clause 26 amends subsection (5) of section 34G (Modification of provisions for companies redomiciled in Singapore), which provides that where a redomiciled company incurs on or after its registration date any impairment loss from a financial asset on revenue account acquired for a trade or business outside Singapore before that date, it is allowed a deduction for that loss to the extent it becomes credit-impaired within the meaning of the financial reporting standard known as FRS 109.
The amendment adds a reference in the latter to the financial reporting standard known as SFRS(I) 9.

Clause 27 inserts a new section 34J which allows a recipient of a Maritime Sector Incentive (MSI) (i.e.

a company or registered business trust entitled to a tax incentive for its income under section 13A, 13F, 13S or 43ZA) that has prepared its financial accounts in accordance with the financial reporting standards known as FRS 116 or SFRS(I) 16, to elect for the tax treatment set out in the section.
The tax treatment is as follows: (a) if, in an applicable period as defined in that section, a sublease of certain assets by the electing recipient is recognised as a finance lease in accordance with FRS 116 or SFRS(I) 16, then income derived in that period under the sublease is taken as having been derived from a finance lease for the purpose of section 10D (Income from finance or operating lease); (b) if, in an applicable period, a sublease of certain assets by the electing recipient is recognised as an operating lease in accordance with FRS 116 or SFRS(I) 16, then income derived in that period under the sublease is taken as not having been derived from a finance lease for the purpose of section 10D; (c) the electing recipient is not entitled to deduct any outgoing or expense incurred during an applicable period in relation to certain assets of which it is a lessee, against income derived from the use of those assets; (d) for a year of assessment between the year of assessment for the basis period in which the election is made, and the year of assessment before the year of assessment for the basis period in which the electing recipient ceases to be an MSI recipient (called the last year of assessment), no capital allowance, or only a pro-rated amount of such allowance, may be made to an electing recipient in respect of certain assets leased by it.
Further, no balancing allowance or balancing charge may be made to or on the electing recipient for an event that 76 occurs in relation to such asset in the basis period or a specified part of the basis period for any such year of assessment; (e) for the last year of assessment, any capital allowance to be made to an electing recipient must take into account any allowances that would have been made to the electing recipient but for paragraph (d), even though no such allowance was in fact made.
The balance is then reduced by an amount that corresponds to the period between the start of the basis period and the day before the day the electing recipient ceases to be an MSI recipient.
Further, no balancing allowance or charge may be made to or on the electing recipient for an event that occurs in relation to such asset in that period; (f) any capital allowance to be made to the electing recipient for any year of assessment after the last year of assessment must similarly take into account allowances not made in the past years of assessment; (g) if the tax treatment has been applied to any provisionally-registered ship and that ship subsequently fails to obtain a permanent certificate of registry, the tax treatment must be reversed for that ship and certain other assets.
The table below illustrates the operation of paragraphs (c) to (f) above.

The illustration is based on the following: (a) Y is an approved international shipping enterprise whose financial year ends on 31 December; (b) in the year of assessment (YA) 2016, Y leased for 10 years for its trade or business a ship under a finance lease that is treated as a sale.
The cost of the ship is $100 million; (c) the lease payments attributable to the repayment of principal are to be made in equal instalments of $10 million for each of the 10 years, beginning with the basis period for YA2016; (d) Y’s financial accounts for the financial year ending on 31 December 2018 were prepared in accordance with FRS 116; (e) Y elected to adopt the tax treatment under the new section 34J in its return of income for YA2019; (f) Y ceases to be an approved international shipping enterprise on 15 March 2023 (i.e.
in the basis period for YA2024).

77 YAs Expenses incurred in relation to ship Capital allowance (CA) in relation to ship Balancing allowance (BA) or balancing charge (BC) YA2016 to YA2018 Deductible in accordance with sections 14 and 15 of the Act.

Claimable in accordance with section 19 or 19A of the Act.

Applicable in accordance with section 20 of the Act.
If CA is claimed under section 19, total CA claims as at YA2018 is computed as follows: ($2m1 + $5m2) × 3 years = $21m 1 Initial Allowance (IA) = 20% × $10m 2 Annual Allowance (AA) = 80% × $100m / 16 years Applicable for an event occurring in the basis period and before 12 December 2018.

Not applicable if the event occurs on or after 12 December 2018.

Not applicable for an event occurring in the basis periods.

Not applicable for an event occurring in the basis period and on or before 14 March 2023.
Applicable for an event occurring in the basis period and after 14 March 2023.

YA2019 Deductible if incurred before 12 December 2018 and sections 14 and 15 of the Act are satisfied.

Not deductible if incurred on or after 12 December 2018.

Claimable but pro-rated as follows: 1 20 365 $7m3 ¼ $6:6m 3 IA + AA YA2020 to YA2023 Not deductible for the Not claimable for the basis periods.

YA2024 basis periods.

Not deductible if incurred on or before 14 March 2023.
Deductible if incurred after 14 March 2023 and sections 14 and 15 of the Act are satisfied.

Claimable in the following manner: Step 1: Determine residue of capital expenditure or reducing value of ship after deducting CAs for all past YAs, even if no such allowance was made: $100m – $21m4 – ($7m3 × 5 years)5 = $44m 4 CA claims up till YA2018 5 Notional CA from YA2019 to YA2023 As the balance of $44m is more than $7m3, CA of $7m may be claimed.
Step 2: Amount of $7m is to be pro-rated as follows: 1 73 365 $7m3 ¼ $5:6m YA2025 onwards Deductible in accordance with sections 14 and 15 of the Act.

Applicable for an event occurring in the basis period.
The CA for each YA is computed on the residue of capital expenditure or reducing value of ship after deducting CAs for all past YAs, even if no such allowance was made: $100m – $21m4 – ($7m3 × 6 years)8 = $37m 8 Notional CA from YA2019 to YA2024 CA of $7m3 and $5m2 claimable for YA2025 and YA2026 to YA2031, respectively.
Clause 28 amends subsection (16E) of section 37L (Deduction for acquisition of shares of companies), which subjects the right to a deduction for certain qualifying share acquisitions to prescribed conditions that are designed to ensure 78 that the acquiring company or acquiring subsidiary is not merely a passive investor.
This includes a condition requiring the acquiring company or acquiring subsidiary to exert “significant influence” (within the meaning of certain financial reporting standards) over the target company.

The amendment adds a reference in the latter to the financial reporting standard known as SFRS(I) 1-28.
Clause 28 also amends section 37L to provide that, if a condition subsequent imposed for the waiver of certain requirements for allowing deductions to an acquiring company for a qualifying acquisition of shares is not complied with, the authority that waived the requirements may, if it considers that it is just and reasonable to do so, make a determination that the company is not entitled to any deduction in respect of that acquisition beginning with a specified year of assessment.
Where such determination is made — (a) any deduction already made for the specified or a subsequent year of assessment is treated as having been wrongly allowed, and the Comptroller may make an assessment on the company to make good any tax shortfall; and (b) no further deduction may be allowed to the company for the qualifying acquisition.
Clause 29 amends section 39 (Relief and deduction for resident individual) to in Singapore to claim deduction for the year of allow a woman resident assessment 2020 and any subsequent year of assessment, in respect of the woman’s handicapped and unmarried child who was looked after by the child’s grandparent or great-grandparent in the preceding year, regardless of the child’s age.
No deduction may be claimed under this subsection in any year of assessment if the child becomes married in that year of assessment.

Clause 29 also amends subsection (2)(e) to reflect the policy intent.
Clause 30 amends section 43 (Rate of tax upon companies and others) — (a) to extend till 31 December 2025 the date distributions from certain income by an approved REIT exchange-traded fund are to be received from a REIT, to enjoy tax transparency; (b) to extend till 31 December 2025 the date distributions from certain income are to be made by the trustee of a REIT or REIT exchange-traded fund, for the distributions to enjoy a concessionary tax rate of 10%; and (c) to insert new subsections (3D), (3E) and (3F) which apply the concessionary tax rate of 10% to a distribution made out of certain incomes during the period from 1 July 2019 to 31 December 2025 by a trustee of a REIT, or a trustee of an approved REIT exchange-traded fund, to certain persons or entities that are eligible for tax exemptions for their income under sections 13CA, 13X and 13Y.
79 Clause 31 amends subsection (2) of section 43A (Concessionary rate of tax for Asian Currency Unit, Fund Manager and securities company), which (among other matters) enables regulations to be made to exempt from tax income of an approved bank, a merchant bank, or a holder of a capital markets services licence to deal in securities, from certain syndicated facilities.
Regulations may further be made to treat an expected credit loss recognised under the financial reporting standard known as FRS 109, as chargeable income.

The amendment adds a reference in the latter to the financial reporting standard known as SFRS(I) 9.
Clause 32 amends section 43C (Exemption and concessionary rate of tax for insurance and reinsurance business) — (a) to limit subsection (1)(a) (which enables regulations to be made applying a concessionary tax rate of 10% to income from certain offshore businesses of an approved insurer whose approval is granted before 1 June 2017) to income derived before 1 July 2021; and (b) to insert a new paragraph (ab) in subsection (1) to enable regulations to be made applying a concessionary tax rate of 10% to income derived on or after 1 July 2021 from certain general businesses and life reinsurance businesses, by an approved insurer whose approval is granted before 1 June 2017.
Clause 33 amends section 43N (Concessionary rate of tax for income derived from debt securities) to update the definition of “primary dealer”, which is now set out in the Government Securities Act (Cap.

121A) rather than in regulations made under it.
Clause 34 amends section 43ZA (Concessionary rate of tax for container investment enterprise) which provides for a concessionary rate of tax to be levied and paid on the income of an approved container investment enterprise accruing in or derived from Singapore from the leasing of any container or intermodal equipment that is acquired by the enterprise before or during the period of its approval, and income derived from foreign exchange and risk management activities in connection with and incidental to the leasing.
The amendment extends the section by applying the concessionary rate of tax to income derived on or after 12 December 2018 by an approved container investment enterprise from the leasing of a container or intermodal equipment, that the enterprise had leased from an approved related party.

This applies only if the container or intermodal equipment was acquired by the related party before or during the period of the approval of the related party.
The concessionary tax rate also applies to foreign exchange and risk management activities connected with or incidental to such leasing.

Clause 34 further amends section 43ZA to disapply the concessionary tax rate under that section to income derived by an approved container investment enterprise on or after 12 December 2018 in relation to a container or intermodal 80 equipment acquired by way of a finance lease entered into with an entity that is not an approved related party.
Clause 35 amends section 45AA (Tax deemed withheld and recoverable from person in breach of condition imposed under section 13(4)) which provides that where the payer of a payment to a non-resident person under section 45 or 45A contravenes any condition imposed under a notification made under section 13(4), the amount of tax which would have been deductible by the payer from that payment under that section is deemed to have been deducted from the payment and recoverable from the payer by the Comptroller.
Section 45AA is amended to apply also to a case where the payer, or a particular matter, is approved under a provision of the Act set out in the new Fourth Schedule, and the payment is exempt from tax under a section 13(4) notification on that basis.
If the approval is then revoked under the new section 105R after any such payment is made, the amount of tax which would have been deductible by the payer from that payment under section 45 or 45A is deemed to have been so deducted and recoverable from the payer by the Comptroller.
Clause 36 amends section 45G (Application of section 45 to distribution from any real estate investment trust) — (a) to apply the reduced withholding tax rate in subsection (2) on distributions by a trustee of a REIT or an approved REIT exchange-traded fund, to persons to whom the concessionary tax rate under subsection (3C) or the new subsection (3D) or (3E) of section 43 applies; and (b) to extend the date by which a distribution is to be made to enjoy a withholding tax rate of 10%, to 31 December 2025.
Clause 37 inserts a new section 45J to reflect that certain withholding tax obligations under Part XII are applicable to the Government.

However, no civil or criminal action may be taken against the Government to enforce such obligations.

Clause 38 amends section 83 (Proceedings before Board and High Court) to remove the requirement for hearings before the High Court and the Court of Appeal to be in camera.
Clause 39 amends subsection (2) of section 101 (Consent for prosecution) to enable the Comptroller to authorise an officer to compound an offence under section 34F(8).

Section 34F(8) criminalises the failure to prepare transfer pricing documentation, the failure to retain in safe custody such documentation for a specified period, and the failure to comply with a notice from the Comptroller to provide a copy of such documentation.
Clause 40 inserts a new section 105R to enable the approval of a taxpayer or a matter for a tax incentive under a section of the Act prescribed in the Fourth Schedule to be revoked for a breach of a condition of approval.

The consequence 81 of a breach of a condition of approval is set out in the new section 105R, and replaces any representation as to the consequences of such breach set out in a letter of approval given to the taxpayer concerned.
Clause 40 also inserts a new section 105S to treat, for the purposes of section 105R, every condition imposed or specified by the Minister or such person as the Minister may appoint before the commencement date of section 105S under section 43G(2), 43P(2), 43Q(2), 43R(2), 43W(3), 43Y(2), 43Z(3), 43ZB(3), 43ZC(3) or 43ZD(3) as a condition imposed on the approval in relation to a Finance and Treasury Centre or person (as the case may be) under section 43G, 43P, 43Q, 43R, 43W, 43Y, 43Z, 43ZB, 43ZC or 43ZD.
Clause 41 amends section 106 (Powers to amend Schedules) to enable the Fourth Schedule (inserted by the Bill) to be amended by the Minister by an order.

Clause 42 inserts a new Fourth Schedule for the purposes of the new section 105R.

Clause 43 makes miscellaneous amendments to sections 43G, 43N, 43P, 43Q, 43R, 43W, 43Y, 43Z, 43ZB, 43ZC and 43ZD that are related to the new sections 105R and 105S.
From the date of commencement of sections 105R and 105S, the Minister or such person as the Minister may appoint may impose conditions of approval for any tax incentive given under section 43G, 43P, 43Q, 43R, 43W, 43Y, 43Z, 43ZB, 43ZC or 43ZD.

Any such approval is liable to be revoked under the new section 105R.

Clause 44 repeals provisions of the Act that are obsolete.
Clause 45 makes an amendment to subsection (18A) of section 15A (Relief from ad valorem stamp duty for acquisition of shares of companies) of the Stamp Duties Act that is related to the amendment made to section 37L of the Income Tax Act.
Subsection (18A) empowers the Minister to make rules subjecting the right to relief for certain share acquisitions to conditions designed to ensure that the acquiring company or acquiring subsidiary is not merely a passive investor, including a condition that the acquiring company or acquiring subsidiary must exert “significant influence” (within the meaning of certain financial reporting standards) over the target company.
The amendment adds a reference in the latter to the financial reporting standard known as SFRS(I) 1-28.

Clause 46 provides for a remission of the tax payable by a resident individual for the year of assessment 2019.

The amount of remission is 50% of the tax payable or $200, whichever is lower.

Clause 47 enables the Minister, for a period of 2 years from the commencement of the clause, to make saving and transitional provisions by regulations for the purposes of the Bill.
82 EXPENDITURE OF PUBLIC MONEY This Bill will involve the Government in extra financial expenditure, the exact amount of which cannot at present be ascertained.