Schedule “THIRD SCHEDULE

There is exempt from tax any gains or profits derived by an umbrella VCC (called in this section the divesting VCC) for the purpose of a sub‑fund from the disposal of ordinary shares in a company (called in this section company X) or of ordinary shares in a VCC (called in this section VCC X) that are legally and beneficially owned by the divesting VCC for the purpose of that sub‑fund immediately before the disposal, being a disposal made —

on or before 31 May 2022; and

after the divesting VCC has, at all times during a continuous period of at least 24 months ending on the date immediately prior to the date of disposal of such shares, legally and beneficially owned, for the purpose of that sub‑fund, at least 20% of the ordinary shares in company X or VCC X, as the case may be. (2) Subsection (1) applies only if the divesting VCC provides, at the time of lodgment of its return of income for the year of assessment relating to the basis period in which the disposal occurs, or within such further time as the Comptroller may in the Comptroller’s discretion allow, such information and supporting documents as may be specified by the Comptroller. (3) In determining the amount of gains or profits that are exempt from tax under subsection (1) for any year of assessment, there is to be deducted all outgoings and expenses wholly and exclusively incurred by the divesting VCC in the production of such gains or profits, including —

the price paid in acquiring those shares;

any sum payable by way of interest upon any money borrowed by the divesting VCC, where the Comptroller is satisfied that the interest was payable on capital employed to acquire those shares;

any sum payable in lieu of interest or for the reduction thereof, upon any money borrowed by the divesting VCC, being a sum of a type prescribed under section 14(1)(a)(ii), where the Comptroller is satisfied that it was payable on capital employed to acquire those shares;

any legal costs incurred for the acquisition or disposal of those shares;

any amount paid in respect of stamp duty for the acquisition or disposal of those shares; and

any other expenses allowable under this Act that are directly attributable to those gains or profits. (4) For the purposes of subsection (1), the divesting VCC remains the legal and beneficial owner of any ordinary shares in company X or VCC X (as the case may be) for the purpose of the sub‑fund during the borrowing period when the legal interest in such shares had been transferred by the divesting VCC to another person under a securities lending or repurchase arrangement. (5) Where —

gains or profits derived from the disposal of ordinary shares in company X or VCC X by the divesting VCC for the purpose of the sub‑fund are exempt from tax under subsection (1); and

one or more amounts mentioned in subsection (6) that are attributable to any of the ordinary shares disposed of, have been allowed as a deduction in determining the chargeable income of the sub‑fund under section 107(3) for any year of assessment prior to the year of assessment relating to the basis period in which the ordinary shares are disposed of,then the amounts in paragraph (b) are to be included in the chargeable income of the sub‑fund under section 107(3) for the second-mentioned year of assessment. (6) Subsection (5) applies to the following amounts:

any amount provided for a diminution in the value of the ordinary shares;

any amount written off against the value of the ordinary shares;

any impairment loss for the ordinary shares;

any loss recognised in accordance with SFRS for Small Entities, FRS 109 or SFRS(I) 9 (as the case may be), in determining the profit or loss or expense in respect of the ordinary shares. (7) Where —

gains or profits derived from the disposal of ordinary shares by the divesting VCC for the purpose of the sub‑fund are exempt from tax under subsection (1); and

any write-back for a diminution in the value of the ordinary shares, or profit recognised in accordance with SFRS for Small Entities, FRS 109 or SFRS(I) 9 (as the case may be), that is attributable to any of the ordinary shares (being chargeable income of the sub‑fund under section 107(3)) has been charged to tax as income of the umbrella VCC for any year of assessment prior to the year of assessment relating to the basis period in which the shares are disposed of,then the write‑back or profit in paragraph (b) is taken to be an expense allowable under this Act in determining the chargeable income of the sub‑fund under section 107(3) for the second‑mentioned year of assessment. (8) This section does not apply to —

the disposal of shares in a company which is in the business of trading or holding Singapore immovable properties (excluding property development), where the shares are not listed on a stock exchange in Singapore or elsewhere; or

the disposal of shares by a partnership, limited partnership or limited liability partnership one or more of the partners of which is a company or VCC, or are companies or VCCs. (9) In this section —“borrowing period” and “securities lending or repurchase arrangement” have the meanings given to those expressions in section 10N(12);“disposal”, in relation to shares, means the transfer of both the legal and beneficial interests in the shares to another;“FRS 109” and “SFRS(I) 9” have the meanings given to those expressions in section 34AA(15);“SFRS for Small Entities” has the meaning given to it in section 34A(10);“ordinary share”, in relation to a VCC, means any share other than a share that carries only a right to any dividend which is —

of a fixed amount or at a fixed rate per cent of the value of the share; or

either —

where the VCC is a non‑umbrella VCC, of a fixed rate per cent of the profits of the non‑umbrella VCC; or

where the VCC is an umbrella VCC, of a fixed rate per cent of the profits of the umbrella VCC in relation to the sub‑fund in respect of which the share was issued.”.Part 2PROVISIONS THAT APPLY IN PLACE OF SECTIONS 34G AND 34H TO AN UMBRELLA VCC INCORPORATED OUTSIDE SINGAPORE AND REGISTERED AS A VCC UNDER PART 12 OF VCC ACTSection 107(25) and (26)Sections 34G and 34H are replaced with sections 34G and 34H respectively as set out below for the purposes of determining, under section 107(3), the income of a sub‑fund of a body corporate incorporated outside Singapore that is registered as a VCC under Part 12 of the VCC Act and that is an umbrella VCC, and the tax credits for such a body corporate:“Modifications of provisions for umbrella VCCs redomiciled in Singapore 34G.—

This section applies for the purposes of determining under section 107(3) the income of a sub‑fund of a redomiciled VCC.Interpretation (2) In this section —“FRS 109” and “SFRS(I) 9” have the meanings given to those expressions in section 34AA(15);“redomiciled VCC” means a body corporate incorporated outside Singapore that is registered as a VCC under Part 12 of the VCC Act, and is an umbrella VCC;“registration date”, in relation to a redomiciled VCC, means the date of its registration specified in the notice of transfer of registration issued to it under section 135(3) of the VCC Act.Deductions for bad debts and impairment losses for debts (3) Despite sections 10(1), 14(1)(d) and 34AA(1), where a redomiciled VCC has any debt owed to it in the course of carrying on a trade or business in relation to a sub‑fund outside Singapore (called in this section the sub‑fund’s trade or business outside Singapore) that was incurred before its registration date and, at any time on or after that date, the debt is written off as bad or impairment loss is provided for that debt —

no deduction is allowed for the debt or any provision made for it; and

any amount recovered from the debt, or any reversal of the impairment loss, is not chargeable to tax.Deductions for impairment losses (4) Despite sections 10(1) and 34AA(1), where a redomiciled VCC incurred before its registration date any impairment loss from any financial asset on revenue account acquired for the purpose of the sub‑fund’s trade or business outside Singapore, any amount of the loss that is reversed after that registration date is not chargeable to tax. (5) Where a redomiciled VCC incurs on or after its registration date any impairment loss in the course of carrying on a trade or business in relation to a sub‑fund in Singapore (called in this section the sub‑fund’s trade or business in Singapore), from any financial asset on revenue account that was acquired for the purpose of the sub‑fund’s trade or business outside Singapore before its registration date —

a deduction is allowed in determining the sub-fund’s income for that loss to the extent that it becomes credit‑impaired within the meaning of FRS 109 or SFRS(I) 9 (as the case may be); and

any amount of that loss that is subsequently reversed is deemed as income of the sub‑fund to the extent of the deduction allowed under paragraph (a). (6) Subsections (4) and (5) do not apply to an impairment loss from a debt to which subsection (3) applies.Deductions for expenses (7) No deduction is allowed under section 14 for any expense incurred by a redomiciled VCC before its registration date for the purpose of the sub‑fund’s trade or business outside Singapore and for which the VCC has been allowed or given any deduction or relief under any law of a country outside Singapore that levies tax of a similar character to income tax (by whatever name called).Deductions for trading stocks (8) For the purposes of determining the amount of deduction to be allowed in determining the sub‑fund’s income under any provision of this Act for any trading stock that the redomiciled VCC acquired before its registration date for the purpose of the sub‑fund’s trade or business outside Singapore, the value of the trading stock is the lower of the following:

the cost of the trading stock to the redomiciled VCC;

the net realisable value of the trading stock on that date.Deductions under section 14U (9) Despite anything in section 14U, where the redomiciled VCC has never at any time carried on any trade or business in relation to the sub‑fund in or outside Singapore before its registration date, a deduction may only be allowed for the purpose of determining the sub‑fund’s income under that section for any cost, payment or expenditure incurred or made before that registration date, if such cost, payment or expenditure is incurred or made for the purpose of the sub‑fund’s trade or business in Singapore. (10) The deduction under subsection (9) may only be allowed for the year of assessment relating to the basis period in which the sub‑fund’s trade or business in Singapore commenced.Allowances for machinery or plant under section 19 (11) Where a redomiciled VCC —

incurred capital expenditure before its registration date to acquire any machinery or plant for the purpose of the sub‑fund’s trade or business outside Singapore; and

uses the machinery or plant for the purposes of the sub‑fund’s trade or business in Singapore on or after that date,then, for the purpose of determining the sub‑fund’s income, an initial allowance may be made for that capital expenditure, and an annual allowance may be made for the depreciation by wear and tear of that machinery or plant, in accordance with section 19 as modified under subsection (12). (12) Section 19 applies in relation to the making of initial and annual allowances under subsection (11), and to initial and annual allowances so made, subject to the following modifications:

the allowances may only be made under that section if the redomiciled VCC carries on a trade or business in relation to the sub‑fund in Singapore on or after the redomiciled VCC’s registration date;

the capital expenditure is treated as having been incurred for the provisioning of the machinery or equipment for the sub‑fund’s trade or business in Singapore;

except as provided under paragraph (d), the allowances under that section may only be made in respect of the lower of the following:

the net book value of the machinery or plant as of the registration date;

the market value of the machinery or plant as of that date, and that lower amount is treated as the capital expenditure incurred in acquiring that machinery or plant, and the original cost of the machinery or plant;

for the purposes of making the initial allowance under section 19(1) in determining the sub‑fund’s income for any machinery or plant that is acquired under a hire‑purchase agreement, the reference in that provision to the capital expenditure is a reference to an amount computed by the formula where —

A is —

in the first year of claim for that allowance, the sum of all deposits and instalment payments (excluding finance charges) made up to the end of the basis period in which the date of commencement of the sub‑fund’s trade or business in Singapore falls; and

in each subsequent year of claim for that allowance, the sum of all instalment payments (excluding finance charges) made in the basis period to which the claim relates;

B is the sum of all deposits and instalment payments (excluding any finance charges) under the hire‑purchase agreement; and

C is the lower amount of the machinery or plant mentioned in paragraph (c);

for the purposes of making the initial allowance in determining the sub‑fund’s income, the capital expenditure is treated as having been incurred by the redomiciled VCC on the first day on which it carries on the sub‑fund’s trade or business in Singapore;

section 19(1B), (2)(b), (3), (4), (5) and (5B) does not apply;

such other modifications as may be prescribed. (13) Except as provided under subsection (11), no allowance may be made under section 19 in determining the sub‑fund’s income in a case mentioned in subsection (11)(a) and (b), in relation to any capital expenditure mentioned in subsection (11)(a).Allowances for machinery, plant, etc., under section 19A (14) Where a redomiciled VCC —

incurred capital expenditure before its registration date to acquire any item mentioned in section 19A(1), (2), (3), (4), (5), (6), (7) or (8) or develop a website mentioned in section 19A(10), for the purpose of the sub‑fund’s trade or business outside Singapore; and

uses such item or website for the purposes of the sub‑fund’s trade or business in Singapore on or after that date,then an allowance may be made in determining the sub‑fund’s income in lieu of the allowances under section 19 (as applied by subsection (11)), for the capital expenditure under section 19A(1), (2), (3), (4), (5), (6), (7), (8) or (10) (whichever is applicable), as modified under subsection (15). (15) Section 19A applies in relation to the making of an allowance under subsection (14), and to any allowance so made, subject to the following modifications:

the allowance may only be made under that section if the redomiciled VCC carries on a trade or business in relation to the sub‑fund in Singapore on or after its registration date;

the capital expenditure is treated as having been incurred for the provision of the item or website for the sub‑fund’s trade or business in Singapore;

the allowance may only be made in respect of the lower of the following:

the net book value of the item or website as of the registration date;

the market value of the item or website as of that date, and that lower amount is treated as the capital expenditure incurred on the provision of the item or website for the sub‑fund’s trade or business in Singapore, and the original cost of the item in section 19A(10C) (if applicable);

section 19A(1B), (1C), (1D), (2A), (2B), (2BAA), (2BA), (2BB), (2BC), (2C), (2D), (2E), (2F), (2FA), (2FB), (2G), (2GA), (2H), (2HA), (2HB), (2I), (2IA), (2J), (2K), (9), (9A), (13A), (13B), (16), (16A), (16B), (17) and (18) does not apply;

such other modifications as may be prescribed. (16) Except as provided under subsection (14), no allowance may be made under section 19A in determining the sub‑fund’s income in a case mentioned in subsection (14)(a) and (b), in relation to any capital expenditure mentioned in subsection (14)(a).Writing-down allowances for intellectual property rights under section 19B (17) Where a redomiciled VCC —

incurred capital expenditure before its registration date to acquire any intellectual property rights for the purpose of the sub‑fund’s trade or business outside Singapore; and

uses those rights for the purpose of the sub‑fund’s trade or business in Singapore on or after that date,then writing-down allowances may be made in determining the sub‑fund’s income for the capital expenditure, in accordance with section 19B as modified by subsection (18). (18) Section 19B applies in relation to the making of writing‑down allowances under subsection (17), and to writing‑down allowances so made, subject to the following modifications:

the allowances may only be made under that section if the sub‑fund’s trade or business is carried on in Singapore on or after the registration date;

the capital expenditure is treated as having been incurred for the acquisition of those intellectual property rights for use in the sub‑fund’s trade or business in Singapore;

the allowances may only be made in respect of the lower of the following:

the acquisition cost of the intellectual property rights less accumulated amortisation and impairment losses as of the registration date;

the open-market price of the rights as of that date, and that lower amount is treated as the capital expenditure incurred in acquiring those rights;

section 19B(1), (1A), (1AA)(b), (1AC), (1B), (1BAA), (1BA), (1BB), (1BC), (1C), (1D), (1E), (2B), (2C), (2D), (2E), (8), (9), (10D), (10E), (10F), (10G), (10H), (10I), (10J), (10K) and (12) does not apply;

the election under section 19B(1AB) must be made at the time of lodgment of the redomiciled VCC’s return of income for the year of assessment relating to the later of the following:

the basis period in which the redomiciled VCC’s registration date falls;

the basis period in which the date of commencement of the sub‑fund’s trade or business in Singapore falls;

such other modifications as may be prescribed. (19) In subsection (18)(c), “open‑market price”, in relation to intellectual property rights, has the meaning given to it by section 19B(10F), with the reference to the acquisition date of those rights substituted with a reference to the redomiciled VCC’s registration date. (20) Except as provided under subsection (17), no writing‑down allowance may be made under section 19B in determining the sub‑fund’s income in a case mentioned in subsection (17)(a) and (b) in relation to any capital expenditure mentioned in subsection (17)(a).Section 43(6C) inapplicable (21) Section 43(6C) does not apply.Regulations (22) The Minister may make regulations necessary or convenient to be prescribed for carrying out or giving effect to this section and section 34H, and in particular, make regulations to provide for such transitional, supplementary or consequential matters as the Minister considers necessary or expedient.Tax credits for approved redomiciled VCCs 34H.—

This section applies where —

a body corporate incorporated outside Singapore is registered as a VCC under Part 12 of the VCC Act and is an umbrella VCC (called in this section the redomiciled VCC);

the redomiciled VCC is approved by the Minister for the purposes of this section;

the redomiciled VCC derived or received income for the purpose of a sub‑fund (called in this section income A) that is chargeable to tax in one or more years of assessment beginning with the year of assessment for the basis period in which its registration date falls; and

the redomiciled VCC’s place of incorporation levies on the VCC tax of a similar character to income tax (by whatever name called) on an estimate of income A (called in this section income B). (2) The redomiciled VCC must be allowed, in accordance with subsection (4), a tax credit against tax payable in respect of the part of income A that is derived or received in the basis period for each year of assessment specified by the Minister to the VCC at the time of its approval (called in this section a specified year of assessment). (3) The total amount of tax credits to be allowed to the redomiciled VCC for all of its specified years of assessment in respect of income A, is an amount C that is computed by the formula (B − B1) × D, where —

B is the amount of income B;

B1 is the part of income B that is derived wholly from any agreement or arrangement entered into on or after the registration date, as well as any other income prescribed by regulations made under section 34G; and

D is the lower of the following:

the rate by which the part of income A derived or received in the basis period in which its registration date falls is chargeable to tax;

the rate by which income B is chargeable to the tax described in subsection (1)(b). (4) Where, throughout a basis period for a specified year of assessment, the redomiciled VCC —

is resident in Singapore; and

satisfies all of the conditions specified by the Minister to it at the time of its approval,then there is to be allowed, against the amount of tax chargeable on income E, a credit of an amount that is the lower of the following:

the amount of tax;

an amount computed by deducting from the amount C the total amount of tax credits previously allowed under this section against the tax chargeable on any income of the sub‑fund. (5) In subsection (4), income E for a year of assessment is the amount of the part of income A derived or received in the basis period for that year of assessment after deducting the following:

the expenses and donations of a sub‑fund for that year of assessment that are attributable to or apportioned to the part of income A;

any capital allowances in respect of any capital expenditure of a sub‑fund for that year of assessment that is attributable to the part of income A whether or not any claim for those allowances has been made;

any balance of those expenses, allowances and donations which have not been deducted under this subsection for the purpose of determining income E for any previous year of assessment. (6) The balance of any expenses, allowances or donations mentioned in subsection (5) may only be used to determine income E for a subsequent specified year of assessment, and is not available as a deduction against any other income in determining the chargeable income of the sub‑fund under section 107(3). (7) However, any balance mentioned in subsection (6) that remains —

after ascertaining income E for the last of the specified years of assessment; or

as of the date of revocation of the approval of the redomiciled VCC,may be deducted against any other income in determining the chargeable income of the sub‑fund under section 107(3) for a subsequent year of assessment, or the year of assessment for the basis period in which the approval is revoked or a subsequent basis period (whichever is applicable), in accordance with section 23 or 37 (as applied by section 107(3)), as the case may be. (8) Any balance of the amount C after a tax credit has been allowed for the last of the specified years of assessment must be disregarded. (9) If, at any time after the registration date, and during a period specified by the Minister to it at the time of its approval, the redomiciled VCC ceases to carry on any trade or business in Singapore in relation to that sub‑fund mentioned in subsection (1), an amount computed using the formula is recoverable by the Comptroller from the umbrella VCC as a debt due to the Government, where —

F is the total number of its specified years of assessment or 5, whichever is larger;

G is the total number of complete years where the umbrella VCC carried on a trade or business in Singapore in relation to that sub‑fund; and

H is the total amount of tax credits already allowed against the tax chargeable on the income of the sub‑fund under this section. (10) If the Comptroller is satisfied that —

the redomiciled VCC gave to the Comptroller information that is false in any material particular, or omitted any material particular from any information or document given to the Comptroller; and

as a result of the false information or omission, an amount of tax credit was allowed against tax chargeable on income under this section,then an amount equal to the amount of tax credit so allowed is recoverable by the Comptroller from the VCC as a debt due to the Government. (11) The amount of the tax credit recoverable from the VCC under subsection (9) or (10) is considered (for the purpose of section 29 of the VCC Act) liability incurred by the VCC for the purpose of the sub‑fund mentioned in subsection (9), or for the purpose of the sub‑fund to which the information or document mentioned in subsection (10) relates. (12) The amount recoverable under subsection (9) or (10) must be paid at the place stated in the notice served by the Comptroller on the redomiciled VCC within 30 days after the service of the notice. (13) The Comptroller may, in the Comptroller’s discretion, and subject to such terms and conditions as the Comptroller may impose, extend the time within which payment is to be made. (14) Sections 86(1), (2), (3), (4), (5) and (6), 87(1) and (2), 89, 90 and 91 apply to the collection and recovery by the Comptroller of the amount recoverable under subsection (9) or (10) as they apply to the collection and recovery of tax. (15) In this section —“capital expenditure of a sub-fund”, “donation of a sub‑fund” and “expense of a sub‑fund” have the meanings given to them in section 107(4);“place of incorporation”, in relation to the redomiciled VCC, means the jurisdiction where the VCC was domiciled at the time it applied for registration under Part 12 of the VCC Act;“registration” means registration under section 135(1) of the VCC Act;“registration date”, in relation to the redomiciled VCC, means the date of its registration specified in the notice of transfer of registration issued to it under section 135(3) of the VCC Act.”.Part 3PROVISIONS THAT APPLY IN PLACE OF SECTIONS 50, 50A AND 50C WHERE INCOME IS THAT OF UMBRELLA VCCSection 107(28)Sections 50, 50A and 50C as set out below apply in place of sections 50, 50A and 50C respectively in a case where the income in question is that of an umbrella VCC:“Tax credits 50.—

This section has effect where, under arrangements having effect under section 49, tax payable in the territory of the government of which the arrangements are made, in respect of any income of an umbrella VCC, is to be allowed as a credit against tax payable in respect of that income in Singapore. (2) Where the umbrella VCC is resident in Singapore, the amount of income tax chargeable on the income is reduced by deducting, from the amount of the income tax that is attributable to the part of the chargeable income of the umbrella VCC that is income derived or received by the umbrella VCC for the purpose of each of its sub‑funds (called in this section a sub‑fund’s assessable income), the amount of the credit that is attributable to the sub‑fund’s assessable income. (3) The amount of the credit under subsection (2) must not exceed the amount produced by computing the amount of the income of the sub‑fund in accordance with the provisions of this Act and the subsidiary legislation made under it (as modified by section 107 to apply to a VCC) as if it were a VCC, and then charging it to income tax at a rate ascertained by the formulawhere —

A is the income tax chargeable (before making the reduction under subsection (2)) on the sub‑fund’s assessable income had it been a VCC; and

B is the amount of the sub‑fund’s assessable income. (4) Without limiting subsection (3), the amount of the reduction under subsection (2) in respect of any sub‑fund for any year of assessment for foreign tax under all arrangements having effect under section 49 must not exceed the total amount of income tax payable by the umbrella VCC that is attributable to the assessable income of the sub‑fund, excluding any tax payable by the umbrella VCC under section 45 or that section as applied by section 107(27), that is attributable to such income. (5) In computing the amount of the sub‑fund’s assessable income under subsection (2) —

no deduction may be allowed in respect of foreign tax (whether in respect of the same or any other income);

where the income tax chargeable depends on the amount received in Singapore, that amount is to be increased by the appropriate amount of the foreign tax in respect of the income; and

where the income includes a dividend and under the arrangements foreign tax not chargeable directly or by deduction in respect of the dividend is to be taken into account in considering whether any (and if so what) credit is to be given against income tax in respect of the dividend, the amount of the income is to be increased by the amount of the foreign tax not so chargeable that falls to be taken into account in computing the amount of the credit. (6) Subsection (5)(a) and (b) applies to the computation of the sub‑fund’s assessable income in subsection (3) for the purposes of determining the rate mentioned in that subsection, and applies to such computation in relation to all income in the case of which credit falls to be given for foreign tax under arrangements for the time being in force under section 49. (7) Where —

the arrangements provide, in relation to dividends of some classes, but not in relation to dividends of other classes, that foreign tax not chargeable directly or by deduction in respect of dividends is to be taken into account in considering whether any (and if so what) credit is to be given against income tax in respect of the dividends; and

a dividend is paid that is not of a class in relation to which the arrangements so provide,then, if the dividend is paid to the umbrella VCC for the purpose of a sub‑fund and the umbrella VCC controls directly or indirectly, through that sub‑fund, not less than one‑half of the voting power in the company paying the dividend, credit is to be allowed as if the dividend were a dividend of a class in relation to which the arrangements so provide. (8) Where an umbrella VCC elects that credit may not be allowed under this section in respect of the income derived or received by the umbrella VCC for the purpose of its sub‑funds for any year of assessment, credit may not be allowed under the arrangements against the income tax chargeable in respect of the umbrella VCC’s income for that year. (9) Where an umbrella VCC elects that credit may not be allowed under this section in respect of the income of one or some (but not all) of its sub‑funds for any year of assessment, then this section applies as if the umbrella VCC only consists of the sub‑fund or sub‑funds for which no such election was made. (10) Any claim for an allowance by way of credit must be made not later than 2 years after the end of the year of assessment, and in the event of any dispute as to the amount allowable the claim is subject to objection and appeal in like manner as an assessment. (11) Where the amount of any credit given under the arrangements is rendered excessive or insufficient by reason of any adjustment of the amount of any tax payable either in Singapore or elsewhere, nothing in this Act limiting the time for the making of assessments or claims for relief applies to any assessment or claim to which the adjustment gives rise, being an assessment or claim made not later than 2 years from the time when all such assessments, adjustments and other determinations have been made, whether in Singapore or elsewhere, as are material in determining whether any (and if so what) credit falls to be given. (12) The amount that corresponds to the amount of tax attributable to a sub‑fund’s assessable income, that is considered liability incurred by the umbrella VCC for the purpose of the sub‑fund under section 107(8), is to be reduced by the amount of the credit deducted from such income under subsection (2). (13) In this section —“foreign tax” means any tax payable in that territory which under the arrangements is to be so allowed;“income tax” means tax chargeable under this Act.Unilateral tax credits 50A.—

Even if there are no arrangements in force under section 49 with the government of any territory outside Singapore, tax credit under section 50 must be given to any umbrella VCC resident in Singapore against tax chargeable in respect of any of the following for tax payable under the law of that territory —

any royalty derived from that territory, where the payment is not —

borne, directly or indirectly, by a person resident in Singapore or a permanent establishment in Singapore (except in respect of any business carried on outside Singapore through a permanent establishment outside Singapore); or

deductible against any income accruing in or derived from Singapore;

any dividend derived from that territory;

any profit derived from outside Singapore by a branch in that territory of the umbrella VCC;

any income derived from any trade or business carried on in that territory through a permanent establishment in that territory;

any discount or premium from debt securities or interest derived from that territory where the payment is not —

borne, directly or indirectly, by a person resident in Singapore or a permanent establishment in Singapore (except in respect of any business carried on outside Singapore through a permanent establishment outside Singapore); or

deductible against any income accruing in or derived from Singapore;

any rent or other income ancillary to the holding of immovable properties located in that territory but not including gains from the disposal of such immovable properties derived from a trade or business carried on in Singapore; and

any gains or profits of an income nature not falling within paragraphs (a), (b), (c), (d), (e) and (f) that is derived from that territory. (2) Where —

any dividend in respect of which tax credit is given under subsection (1)(b) is paid by a company resident outside Singapore to an umbrella VCC resident in Singapore;

the dividend is paid to the umbrella VCC for a sub‑fund; and

the umbrella VCC owns, for the purpose of that sub‑fund, not less than 25% of the total number of issued shares of the company paying the dividend,then the tax credit by which the amount of income tax chargeable on the dividend is to be reduced under section 50(2) must take into account any tax paid by that company in the country in which it is resident in respect of its income out of which the dividend is paid. (3) Where —

under arrangements for the time being in force under section 49 with the government of a territory outside Singapore, no provision is made for tax credit in respect of income out of which any dividend is paid by a company resident in that territory to an umbrella VCC resident in Singapore for a sub‑fund;

the dividend is paid to the umbrella VCC for a sub‑fund; and

the umbrella VCC owns, for the purpose of that sub‑fund, not less than 25% of the total number of issued shares of the company paying the dividend,tax credit under section 50 in respect of such income must be given to the umbrella VCC and applied in accordance with section 50. (4) Section 50, with the necessary modifications, applies for the purposes of this section as if any territory to which this section and the regulations have effect were a territory with which arrangements have been made under section 49. (5) Any umbrella VCC granted any tax credit under subsection (1) on any income may not be given any tax credit under section 50 in respect of that income. (6) The Minister may, in any particular case, waive the requirement of 25% share ownership mentioned in subsections (2) and (3). (7) In this section, “debt securities” has the same meaning as in section 43N(4).Pooling of credits 50C.—

Where, for any year of assessment, an umbrella VCC is entitled to 2 or more tax credits under any other provision of this Part, and some or all of which are attributable to the part of the chargeable income of the VCC that is income derived or received by the umbrella VCC for the purpose of any particular sub‑fund (called in this section a sub‑fund’s assessable income), the umbrella VCC may elect in relation to that sub‑fund to be given a pooled credit for that year of assessment in lieu of any 2 or more of those credits (called in this section the replaced credits). (2) Subsection (1) only applies if the income that is the subject of each replaced credit (called in this section the elected income) satisfies all of the following conditions:

tax under the law of the territory from which the income is derived that is of a similar character to income tax (by whatever name called) has been paid on the income;

at the time the income is received in Singapore by the umbrella VCC, the highest rate of tax of a similar character to income tax (by whatever name called) levied under the law of that territory on any gains or profits from any trade or business carried on by a company in that territory at that time, is not less than 15%;

the income tax payable under this Act on the income for the year of assessment (before allowance of any credit under this Part) is not nil. (3) The total amount of the income tax chargeable to the umbrella VCC in respect of all the elected income must be reduced by the amount of the pooled credit. (4) The amount of the pooled credit is the lower of —

the sum of the income tax chargeable for the year of assessment on all the elected income; and

the sum of the taxes paid on all the elected income in the territory or territories outside Singapore from which the elected income is derived. (5) In subsection (4)(a), the sum of the income tax chargeable for the year of assessment on all the elected income is ascertained by —

computing the amount of the income that is the subject of each replaced credit in accordance with the provisions of this Act and the subsidiary legislation made under it (as modified by section 107 to apply to a VCC) as if the sub‑fund were a VCC, and then charging it to income tax at a rate ascertained by the formula where —

A is the income tax chargeable (before allowance of any credit under this Part) on the assessable income of the sub‑fund had it been a VCC; and

B is the amount of that sub‑fund’s assessable income; and

totalling the amounts computed in accordance with paragraph (a) of all the replaced credits. (6) Sections 50(5), (6), (10), (11), (12) and (13) and 50A(2) apply, with the necessary modifications, for the purposes of this section. (7) To avoid doubt, sections 50 and 50A continue to apply to any income that is the subject of a credit or credits allowed under any other provision of this Part for which no election under this section is made.”.”.