Singapore legislation

Clause 42

of Income Tax (Amendment) Bill

Clause 42

Amendment of section 45F

In the principal Act, in section 45F —

(a)

in subsection (1), replace “and (2)” with “, (2) and (2A)”;

(b)

in subsection (1A), replace “subsection (2)” with “subsections (2) and (2A)”; and

(c)

after subsection (2), insert —“(2A) Where an individual or a foreign firm to which section 43(4) or (4A) applies makes an irrevocable option under section 43(5) to be taxed under section 43(1)(b) on any payment of income accruing in or derived from Singapore by the individual or foreign firm, the application of section 45 by subsections (1), (1A) and (2) is further modified as follows:

(a)

the reference to the payment of income to the individual or foreign firm is to such payment after deducting any expenditure that the person making the payment reasonably believes is wholly and exclusively incurred by the individual or foreign firm in the production of that income;

(b)

the deduction of tax under section 45 for such payment is at the rate specified in section 43(1)(b).”.

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