Singapore legislation

Clause 24

Repeal and re-enactment of section 27

Section 27 of the Ordinance is hereby repealed and the following substituted therefor: —“Profits of non-resident shipowner or charterer

27. Where a non-resident person carries on the business of shipowner or charterer, the income on which tax is payable shall be ascertained as follows: —

(a)

where, for any period, a non-resident person produces the certificate mentioned in paragraph (b) of this section —

(i)

the profits accruing in Singapore from the business for such period shall be deemed to be a sum bearing the same ratio to the sums receivable in respect of the carriage of passengers, mails, livestock and goods shipped in Singapore as the total profits for that period bear to the total sum receivable by him in respect of the carriage of passengers, mails, livestock and goods, as shown by the certificate; and

(ii)

the depreciation allowable against such profits shall similarly be deemed to be a sum bearing the same ratio to the sum receivable in respect of the carriage of passengers, mails, livestock and goods shipped in Singapore as the total depreciation for the period bears to the total sum receivable by him in respect of the carriage of passengers, mails, livestock and goods, as shown by the certificate;

(b)

the certificate referred to in paragraph (a) of this section shall —

(i)

be one issued by or on behalf of the income tax authority of the place of residence of the non-resident person;

(ii)

be acceptable for the purposes of this section only where the Comptroller is satisfied that the relevant income tax authority computes and assesses the full profits of the non-resident person from his shipping business on a basis not materially different from the basis of assessment provided by this Ordinance for the assessment of a resident of Singapore carrying on a similar business; and

(iii)

contain, in respect of the relevant accounting period, the following information —

(a)

the ratio of the profits or, where there are no profits, of the loss, as computed for the purposes of income tax by that authority, without making any allowance by way of depreciation, to the total sum receivable in respect of the carriage of passengers, mails, livestock and goods;

(b)

the ratio of the allowance for depreciation as computed by that authority to that total sum receivable in respect of the carriage of passengers, mails, livestock and goods;

(c)

where, for any period, a non-resident person does not, for any reason, produce a certificate complying with the provisions of paragraph (b) of this section, the profits accruing in Singapore shall be deemed to be a sum equal to five per cent of the full sum receivable on account of the carriage of passengers, mails, livestock and goods shipped in Singapore:Provided that, where a non-resident person has been assessed under the provisions of this paragraph because a certificate had not been issued at the time of assessment, he shall be entitled, on the subsequent production of such a certificate to claim at any time within two years after the end of such year of assessment, or such further time as the Comptroller may consider reasonable in the circumstances, that his liability to tax for the year be determined on the basis provided by paragraph (a) of this section;

(d)

where the Comptroller decides that the call of a ship belonging to a particular non-resident shipowner or charterer at a port in Singapore is casual and that further calls by that ship or others in the same ownership are improbable, the provisions of this section shall not apply to the profits of such ship and no tax shall be chargeable thereon.”.

Read in full context — Income Tax (Amendment) Bill →