Singapore legislation

Clause 15

Amendment of section 13X

Section 13X of the principal Act is amended —

(a)

by deleting the words “or master‑feeder fund structure” in subsection (1) and substituting the words “, master‑feeder fund structure, master‑feeder fund‑SPV structure or master fund‑SPV structure”;

(b)

by deleting the word “or” at the end of subsection (1)(a);

(c)

by deleting the full‑stop at the end of paragraph (b) of subsection (1) and substituting a semi‑colon, and by inserting immediately thereafter the following paragraphs:“(c)in relation to an approved master‑feeder fund‑SPV structure —

(i)

a company, a trustee of a trust fund or a partner of a limited partnership, where the company, trust fund or limited partnership is the approved master fund or an approved feeder fund of the structure;

(ii)

an approved 1st tier SPV of the structure; and

(iii)

an approved 2nd tier SPV of the structure,arising from funds of the master fund or any feeder fund of the structure that are managed in Singapore by a fund manager; or

(d)

in relation to an approved master fund‑SPV structure —

(i)

a company, a trustee of a trust fund or a partner of a limited partnership, where the company, trust fund or limited partnership is the approved master fund of the structure;

(ii)

an approved 1st tier SPV of the structure; and

(iii)

an approved 2nd tier SPV of the structure,arising from funds of the master fund of the structure that are managed in Singapore by a fund manager.”;

(d)

by inserting, immediately after subsection (2A), the following subsection:“(2B) Approval under subsection (1)(c) and (d) may be granted during the period from 1 April 2015 to 31 March 2019 (both dates inclusive).”;

(e)

by deleting the words “or partner referred to in subsection (1)(b)” in subsection (3) and substituting the words “, partner, 1st tier SPV or 2nd tier SPV referred to in subsection (1)(b), (c) or (d)”;

(f)

by deleting paragraphs (a) and (b) of subsection (4) and substituting the following paragraphs:“(a)provide for the determination of the amount of income of any approved person or company, trustee, partner, 1st tier SPV or 2nd tier SPV referred to in subsection (1)(b), (c) or (d) to be exempt from tax;

(b)

provide for the deduction of expenses, allowances and losses of any approved person or company, trustee, partner, 1st tier SPV or 2nd tier SPV referred to in subsection (1)(b), (c) or (d) otherwise than in accordance with this Act;”;

(g)

by deleting paragraphs (ca) and (cb) of subsection (4) and substituting the following paragraphs:“(ca)provide for the recovery of tax from a company, trustee, 1st tier SPV or 2nd tier SPV referred to in subsection (1)(b), (c) or (d) in a case where the exemption ought not to have been allowed to the person due to non‑compliance with any condition imposed on the approved master‑feeder fund structure, approved master‑feeder fund‑SPV structure or approved master fund‑SPV structure, as the case may be;

(cb)provide for the recovery of tax from a partner of a limited partnership referred to in subsection (1)(b), (c) or (d) 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, approved master-feeder fund‑SPV structure or approved master fund‑SPV structure (as the case may be), 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 with the condition; and”;

(h)

by inserting, immediately before the definition of “approved” in subsection (5), the following definitions:“ “1st tier SPV”, in relation to a master‑feeder fund‑SPV structure or a master fund‑SPV structure, means a special purpose vehicle wholly owned by the master fund of the structure;“2nd tier SPV”, in relation to a master‑feeder fund‑SPV structure or a master fund‑SPV structure, means a special purpose vehicle wholly owned by a 1st tier SPV of the structure;”;

(i)

by deleting the definition of “designated unit trust” in subsection (5) and substituting the following definition:“ “designated unit trust” means any designated unit trust within the meaning of section 35(14) and whose income does not form part of the statutory income of its trustee by reason of section 35(12);”;

(j)

by inserting, immediately after the word “means” in the definition of “master‑feeder fund structure” in subsection (5), the words “an arrangement comprising”;

(k)

by inserting, immediately after the definition of “master‑feeder fund structure” in subsection (5), the following definitions:“ “master‑feeder fund‑SPV structure” means an arrangement comprising —

(a)

one or more feeder funds;

(b)

the master fund through which the funds of the feeder fund or funds are substantially and directly invested; and

(c)

one or more SPVs;“master fund‑SPV structure” means an arrangement comprising —

(a)

a master fund; and

(b)

one or more SPVs;”; and

(l)

by inserting, immediately after the definition of “real estate investment trust” in subsection (5), the following definition:“ “special purpose vehicle” or “SPV” —

(a)

in relation to a master‑feeder fund‑SPV structure, means a company whose only activity is the holding of investments of the master and feeder funds of the structure; or

(b)

in relation to a master fund‑SPV structure, means a company whose only activity is the holding of investments of the master fund of the structure;”.

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