Company: OTSA
Filing Date: 2025-07-16
Form Type: F-1/A
Source: 0001213900-25-064434
Chunk: 264

Company: OTSAW Ltd
Filing Date: 2025-07-16
Form: F-1/A
Chunk 264
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 distributions. Gains on Disposal of Ordinary Shares Singapore generally does not impose tax on capital gains (i.e. gains which are considered to be capital in nature) but imposes tax on income. While there are no specific Singapore tax laws or regulations which prescribes the characterization of whether a gain is income or capital in nature, gains arising from the disposal of the Company’s Class A Ordinary Shares may be construed to be of an income nature and subject to Singapore income tax if the gains arose from activities which the IRAS regard as the carrying on of a trade or business in Singapore. However, it should be noted that with effect from January 1, 2024, Section 10L of the SITA provides that gains from the sale or disposal of foreign assets on or after January 1, 2024 by a relevant entity are chargeable to tax when such gains are received or deemed to be received in Singapore from outside Singapore. A foreign asset generally refers to any movable or immovable property situated outside Singapore at the time of such sale or disposal or any rights or interest thereof, and with regard to any shares in or securities issued by a company, or any right or interest in such shares or securities, they are generally regarded to be situated where the company is incorporated. Accordingly, the precise status of each prospective investor will vary from one another and each investor should consult an independent tax advisor on the Singapore income tax and other tax consequences which may be applicable to their individual circumstances. Subject to certain conditions being satisfied, gains derived by a company from the disposal of the Company’s Class A Ordinary Shares between the period of June 1, 2012 and December 31, 2027 (inclusive of both dates) will not be subject to Singapore income tax, if the divesting company holds a minimum shareholding of 20% of the Ordinary Shares in the Company and these shares have been held for a continuous minimum period of 24 months. In addition, shareholders who apply, or who are required to apply, the Singapore Financial Reporting Standard 39 (“FRS 39”), Financial Reporting Standard 109 (“FRS 109”) or Singapore Financial Reporting Standard (International) 9 (Financial Instruments) (“SFRS(I) 9”) (as the case may be), for the purposes of Singapore income tax may be required to recognize gains or losses (not being gains or losses in the nature of capital) in accordance with the provisions of FRS39, FRS 109 or SFRS(I) 9 (as modified by