Singapore legislation

Clause 9

Amendment of section 13X

Section 13X of the principal Act is amended —

(a)

by deleting subsection (1) and substituting the following subsection:“(1) Subject to such conditions as may be prescribed by regulations, there shall be exempt from tax such income as the Minister may by regulations prescribe of —

(a)

an approved person arising from funds managed in Singapore by a fund manager; or

(b)

a company, a trustee of a trust fund or a partner of a limited partnership, where the company, trust fund or partnership is the approved master fund or an approved feeder fund of an approved master-feeder fund structure, arising from funds of the master fund or any feeder fund of that structure that are managed in Singapore by a fund manager.”;

(b)

by deleting the words “subsection (1)” in subsection (2) and substituting the words “subsection (1)(a)”;

(c)

by inserting, immediately after subsection (2), the following subsection:“(2A) Approval under subsection (1)(b) may be granted during the period from 7th July 2010 to 31st March 2014 (both dates inclusive).”;

(d)

by inserting, immediately after the words “approved person” in subsections (3) and (4)(a) and (b), the words “or company, trustee or partner referred to in subsection (1)(b)”;

(e)

by deleting the word “and” at the end of paragraph (c) of subsection (4), and by inserting immediately thereafter the following paragraphs:“(ca)provide for the recovery of tax from a company or a trustee of a trust fund referred to in subsection (1)(b) in a case where the exemption ought not to have been allowed to the company or trustee due to non-compliance with any condition imposed on the approved master-feeder fund structure;

(cb)provide for the recovery of tax from a partner of a limited partnership referred to in subsection (1)(b) in a case where the exemption ought not to have been allowed to that partner due to non-compliance with any condition imposed on the approved master-feeder fund structure, including the deeming of a specified amount as income of the partner for the year of assessment in which the Comptroller discovers the non-compliance of the condition; and”;

(f)

by inserting, immediately after the definition of “designated unit trust” in subsection (5), the following definitions:“ “feeder fund” means a company, trust fund or limited partnership that invests its funds substantially and directly through only one master fund;“master-feeder fund structure” means one or more feeder funds and the master fund through which the funds of the feeder fund or funds are substantially and directly invested;“master fund” means a company, trust fund or limited partnership that enables investors to invest funds in one or more underlying investments that are managed by a fund manager;”; and

(g)

by deleting the words “of approved persons” in the section heading.

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