Singapore legislation

Clause 5

Amendment of section 11

Section 11 of the principal Act is amended by deleting subsections (2) and (3) and substituting the following subsections:“(2) Where a body of persons, whether corporate or unincorporate, carries on a trade or professional association in such circumstances that more than half of its receipts by way of entrance fees and subscriptions from Singapore members are claimed or claimable as allowable deductions for the purposes of section 14 —

(a)

the body of persons shall be deemed to carry on a business;

(b)

the whole of its income from transactions with Singapore members and persons who are not members (including entrance fees and subscriptions) shall be deemed to be receipts from a business; and

(c)

the body of persons shall be chargeable in respect of the profits from the business.(3) For the purposes of subsection (2), “body of persons” includes a company limited by guarantee approved by the Minister or such person as he may appoint, subject to such conditions as he may impose.(4) In this section —“members”, in relation to a body of persons, means those persons who are entitled to vote at a general meeting of the body at which effective control is exercised over its affairs;“Singapore members” means members that are ––

(a)

persons, other than companies, resident in Singapore;

(b)

companies incorporated in Singapore (excluding branches or offices located outside Singapore); or

(c)

in the case of companies incorporated outside Singapore, the branches or offices of the companies located within Singapore.”.

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