Singapore legislation
Clause 5
Clause 5
Amendment of section 10
(1)
Section 10 of the principal Act is amended —
by deleting subsection (5) and substituting the following subsection:“(5) In subsection (4) —
by deleting the words “subsections (4) and (5)” in subsection (5A) and substituting the words “subsection (4)”;
by inserting, immediately after subsection (16), the following subsection:“(16A) Subsection (16) does not apply to any income referred to in that subsection that is derived in the basis period for the year of assessment 2017 or any subsequent year of assessment.”;
by deleting the word “Any” in subsections (20) and (20A) and substituting in each case the words “Subject to subsection (20G), any”;
by deleting the words “and (20E)” in subsection (20B) and substituting the words “, (20E), (20G) and (20H)”; and
by inserting, immediately after subsection (20F), the following subsections:“(20G) Where subsection (20B) has applied in relation to a unit trust —
the amount of the income referred to in subsection (20B)(a) that has yet to be distributed to the unit holders of the unit trust by the corresponding date in question is treated, for the purposes of any subsequent application of subsection (20B) in relation to that unit trust, as having been distributed by the unit trust to its unit holders immediately after that corresponding date; and
subsections (20) and (20A) do not apply to any subsequent distribution by the unit trust to its unit holders of any income referred to in paragraph (a).(20H) Where —
by reason of the application of subsection (20B) in relation to a unit trust, a person is treated as having derived on the corresponding date in question an amount of income that is equal to the prescribed amount of income referred to in subsection (20B)(a); and
at any time after that corresponding date, the person disposes of units in the unit trust,then the amount of any gains or profits derived from that disposal that is chargeable with tax under subsection (1)(a) is to be reduced by the amount of the income referred to in subsection (20E)(b)(i) or (ii) or (c)(i) or (ii) (whichever is applicable), that corresponds to the units disposed of.”.
Definition
“foreign ship” has the meaning given to it in section 13F(6);
Definition
“Singapore ship” has the meaning given to it in section 13A(16).”;
(2)
Subsection (1)(a) applies only in relation to income derived on or after the date the Income Tax (Amendment) Act 2016 is published in the Gazette.