Singapore legislation
Clause 53
Clause 53
Amendments to allow retrospective regulations in connection with sections 7, 36 and 41 of Income Tax (Amendment) Act 2023
(1)
In the ITA, in section 13, after subsection (17), insert —“(17A) Regulations made to prescribe the conditions for the exemption from tax under subsection (1)(a), (aa), (ab) and (ba) of income derived from qualifying debt securities that are issued between 1 January 2024 and 31 December 2028 (both dates inclusive), that are made in connection with the amendments made by section 7(a) of the Income Tax (Amendment) Act 2023, may be made to take effect from (and including) 1 January 2024.(17B) Regulations made to amend any regulations made for the purposes of subsection (1)(ba) to replace the terms “break cost” and “prepayment fee” with the term “early redemption fee”, that are made in connection with section 7(b), (g), (h) and (t) of the Income Tax (Amendment) Act 2023, may be made to take effect from (and including) 15 February 2023. (17C) Regulations made to prescribe the arrangements in paragraph (b) of the definition of “qualifying debt securities” in subsection (16), that are made in connection with the amendment to that definition by section 7(i) of the Income Tax (Amendment) Act 2023, may be made to take effect from (and including) 1 January 2024.(17D) Regulations made to prescribe the arrangements in paragraphs (b) and (c) of the definitions of “qualifying debt securities” in subsection (16), that are made in connection with the amendments to that definition by section 7(j), (k), (l), (m) and (n) of the Income Tax (Amendment) Act 2023, may be made to take effect from (and including) 15 February 2023.(17E) Regulations made to prescribe the arrangements in paragraph (a) of the definition of “qualifying project debt securities” in subsection (16), that are made in connection with the amendments to that definition by section 7(p), (q), (r) and (s) of the Income Tax (Amendment) Act 2023, may be made to take effect from (and including) 15 February 2023.”.
(2)
In the ITA, in section 43H, after subsection (3), insert —“(3AA) Regulations made under subsection (1) —
to provide that tax at the rate of 10% is to be levied and paid on income mentioned in that subsection that is derived from any qualifying debt securities issued between 1 January 2024 and 31 December 2028 (both dates inclusive); and (b)to provide for exemption from tax of income derived by a primary dealer from trading in any Singapore Government securities between 1 January 2024 and 31 December 2028 (both dates inclusive),that are made in connection with the amendments to subsections (1)(aa), (ab) and (ac) and (3) by section 36(a) of the Income Tax (Amendment) Act 2023, may be made to take effect from (and including) 1 January 2024.(3AB) Regulations made to amend any regulations made for the purposes of subsection (1) to replace the terms “break cost” and “prepayment fee” with the term “early redemption fee”, that are made in connection with section 36(b), (c) and (d) of the Income Tax (Amendment) Act 2023, may be made to take effect from (and including) 15 February 2023.”.
(3)
In the ITA, in section 45A —
after subsection (2A), insert —“(2AA) Regulations made to impose conditions under subsection (2A) for the disapplication of subsection (1) to any amount payable from Islamic debt securities issued between 1 January 2024 and 31 December 2028 (both dates inclusive), that are made in connection with the amendments made to subsection (2A) by section 41(a) of the Income Tax (Amendment) Act 2023, may be made to take effect from (and including) 1 January 2024.”; and
after subsection (2B), insert —“(2BA) Regulations made to amend any regulations made for the purposes of subsection (2B) to replace the terms “break cost” and “prepayment fee” with the term “early redemption fee”, that are made in connection with section 41(b) and (c) of the Income Tax (Amendment) Act 2023, may be made to take effect from (and including) 15 February 2023.”.
(4)
Section 45(1) of the ITA (including that provision as applied by section 45A of that Act) does not apply to impose any obligation on a person to deduct from any income payable to another person not known to the firstmentioned person to be resident in Singapore, the tax or additional tax chargeable on such income which, but for any regulations made for the purposes of sections 13(1) and 45A(2A) of that Act being given retrospective effect in reliance on sections 13(17A) and 45A(2AA) of that Act (as inserted by this section), would not have been so chargeable.