Clause 27

by deleting subsection (5) and substituting the following subsection:“(5) Any individual or foreign firm to which subsection (4) applies may make an irrevocable option to be taxed under subsection (1)(b) by the 15th day of the second month following the month in which the payment of the income is liable to be made to the individual or firm.”; and

by inserting, immediately after subsection (10), the following subsections:“(11) Notwithstanding the definition of “qualifying company” in subsection (10), a company that is incorporated on or after 26th February 2013 is not a qualifying company in relation to any year of assessment if —

it undertakes property development in the basis period for that year of assessment, whether or not that is the only activity it carries out during the basis period;

it is a partner of a partnership which undertakes property development in the basis period for that year of assessment, whether or not that is the only activity the partnership carries out during the basis period;

its only activity in that basis period is the holding of investments; or

it is a partner of a partnership where the only activity of the partnership during that basis period is the holding of investments, and the company has no activity during that basis period or its only activity during that basis period is the holding of investments.(12) For the purposes of subsection (11), a company or partnership undertakes property development if it carries out any of the following activities whether in Singapore or outside Singapore:

acquires land or building for the purpose of undertaking development (whether by the company or partnership or an entity to which it transfers the land or building) with a view to the sale or lease (whether by the entity undertaking the development or another entity to which the entity undertaking the development transfers the building or part thereof) of the whole or any part of the building so developed;

development with a view to the sale or lease (whether by the company or partnership or another entity to which the company or partnership transfers the building or part thereof) of the whole or any part of the building so developed;

the sale or lease of the whole or any part of a building developed by the company or partnership;

any other activity that is preparatory to, connected with or incidental to any activity referred to in paragraph (a), (b) or (c).(13) In subsection (12) —“acquire” includes acquire by way of purchase, grant, exchange, gift, settlement or otherwise;“develop” means to construct or cause to construct a building, including any building operations in, on, over or under the land for the purpose of erecting the building; and “development” shall be construed accordingly.”.