Singapore legislation
Schedule 3
Schedule 3
Valuation — special cases
THIRD SCHEDULESections 11B(3), 11C(4)(a), 17(1), (3C) and (6), 18(1)(b) and 49(1)(g)Valuation — special casesOpen market value1.—
Where —
the value of a supply made by a taxable person for a consideration in money is (apart from this paragraph) less than its open market value;
the person making the supply is connected with the person to whom it is made; and
if the supply is a taxable supply the person to whom the supply is made is not entitled under sections 19 and 20 to credit for all the tax on the supply (the tax not being excluded by regulations made under section 19(14) from the credit),the Comptroller may direct that the value of the supply is taken to be its open market value.(1A) Without affecting sub-paragraph (1), where —
a supply mentioned in section 14(1)(a) or 30(1A) is made for a consideration in money;
the value of the supply is (apart from this paragraph) less than its open market value; and
the person, branch of the person or member of the group (as the case may be) in fact making the supply is connected with the recipient of the supply,the Comptroller may direct that the value of the supply is taken to be its open market value.(2) A direction under this paragraph must be given by written notice to the person making the supply, but no direction may be given more than 3 years after the time of the supply.(3) A direction given to a person under this paragraph in respect of a supply made by the person may include a direction that the value of any supply —
which is made by the person after giving of the notice, or after such later date as may be specified in the notice; and
as to which the conditions in sub-paragraph (1)(a), (b) and (c) are satisfied,is taken to be its open market value.(4) This paragraph does not apply to a supply to which paragraph 10 applies.2. [Deleted by Act 20 of 2010]Connected persons3.—
For the purposes of this Act, any question whether a person is connected with another is determined in accordance with the following provisions of this paragraph (any provision that one person is connected with another being taken to mean that they are connected with one another).(2) A person is connected with an individual if that person is the individual’s wife or husband, or is a relative, or the wife or husband of a relative, of the individual or of the individual’s wife or husband.(3) A person, in the person’s capacity as trustee of a settlement, is connected with any individual who in relation to the settlement is a settlor, with any person who is connected with such an individual and with a body corporate which is connected with that settlement.(4) Except in relation to acquisitions or disposals of partnership assets pursuant to bona fide commercial arrangements, a person is connected with any person with whom the firstmentioned person is in partnership, and with the wife or husband or relative of any individual with whom the firstmentioned person is in partnership.(5) A company is connected with another company —
if the same person has control of both, or a person (X) has control of one and persons connected with X, or X and persons connected with X, have control of the other; or
if a group of 2 or more persons has control of each company, and the groups either consist of the same persons or could be regarded as consisting of the same persons by treating (in one or more cases) a member of either group as replaced by a person with whom the member is connected.(6) A company is connected with another person (Y) if Y has control of it or if Y and persons connected with Y together have control of it.(7) Any 2 or more persons acting together to secure or exercise control of a company are treated in relation to that company as connected with one another and with any person acting on the directions of any of them to secure or exercise control of the company.(8) In this paragraph —“business trust” has the meaning given by the Business Trusts Act 2004;“company” includes any body corporate or unincorporated association, but does not include a partnership, and this section applies in relation to any unit trust scheme or business trust scheme as if the scheme were a company and as if the rights of the unit holders were shares in the company;“control” is construed in accordance with paragraph 4;“relative” means brother, sister, ancestor or lineal descendant.Meaning of control4.—
For the purposes of paragraph 3, a person has control of a company if the person exercises, or is able to exercise or is entitled to acquire, direct or indirect control over the company’s affairs, and in particular, but without limiting the preceding words, if the person possesses or is entitled to acquire —
the greater part of the total number of issued shares of the company or of the voting power in the company;
such part of the total number of issued shares of the company as would, if the whole of the income of the company were in fact distributed among the participators (without regard to any rights which the person or any other person has as a loan creditor), entitle the person to receive the greater part of the amount so distributed; or
such rights as would, in the event of the winding up of the company or in any other circumstances, entitle the person to receive the greater part of the assets of the company which would then be available for distribution among the participators.(2) Where 2 or more persons together satisfy any of the conditions of sub-paragraph (1), they are taken to have control of the company.(3) For the purposes of sub-paragraphs (1) and (6), a person is treated as entitled to acquire anything which the person is entitled to acquire at a future date, or will at a future date be entitled to acquire.(4) For the purposes of sub-paragraphs (1) and (2), there is attributed to any person (A) any rights or powers of a nominee for A, that is to say, any rights or powers which another person possesses on A’s behalf or may be required to exercise on A’s direction or behalf.(5) For the purposes of this paragraph, a “participator” is, in relation to any company, a person having a share or interest in the capital or income of the company.(6) Without limiting sub-paragraph (5), a “participator” includes —
any person who possesses, or is entitled to acquire, share capital or voting rights in the company;
any loan creditor of the company;
any person who possesses, or is entitled to acquire, a right to receive or participate in distributions of the company or any amounts payable by the company (in cash or in kind) to loan creditors by way of premium on redemption; and
any person who is entitled to secure that income or assets (whether present or future) of the company will be applied, directly or indirectly, for the person’s benefit.5.—
Sub-paragraph (2) applies to a supply of goods or services where all the following conditions are satisfied:
the supply takes place on or after 1 April 2020 for a consideration in money;
the terms of the supply —
do not include any provision for payment of the consideration by instalments; and
allow a discount for prompt payment of the consideration;
payment of the consideration is made in accordance with the terms of the supply, such that the discount is applied in relation to the payment.(2) For the purposes of section 17, the consideration is the amount of the consideration mentioned in sub-paragraph (1)(a) reduced by the amount of the discount applied under sub-paragraph (1)(c).
6. Paragraph 4 applies with the following modifications for the purposes of determining whether a person has control over a company that is an umbrella VCC making or receiving the supply in question for the purpose of a sub‑fund:
a reference to the issued shares or share capital of, or the voting power in, the company is to the issued shares or share capital of the umbrella VCC in respect of that sub‑fund, or the voting power attached to such shares, as the case may be;
a reference to the income of the company is to the income of the umbrella VCC from the sub‑fund;
a reference to the assets of the company is to the assets held by the umbrella VCC for the purpose of or that are attributable to that sub‑fund;
a reference to a creditor of the company is to the creditor of the umbrella VCC in respect of a loan that is taken by the umbrella VCC for the purpose of that sub‑fund;
a reference to the winding up of a company is to the winding up of the umbrella VCC or the sub-fund.7. [Deleted by Act 19 of 2009]Business assets8.—
Where there is a supply of goods by virtue of —
paragraph 5(1) of the Second Schedule (but otherwise than for a consideration); or
paragraph 7 of the Second Schedule,the value of the supply is determined in accordance with sub‑paragraphs (2) and (3) except where paragraph 10 applies.(2) The value of a supply referred to in sub-paragraph (1) is taken to be —
such consideration in money as would be payable by the person making the supply if the person were, at the time of the supply, to purchase goods identical in every respect (including age and condition) to the goods concerned;
where the value cannot be ascertained in accordance with sub-paragraph (a), such consideration in money as would be payable by the person making the supply if the person were, at the time of the supply, to purchase goods similar to, and of the same age and condition as, the goods concerned; or
where the value cannot be ascertained in accordance with sub-paragraph (a) or (b), the cost of producing the goods concerned if they were produced at the time of the supply.(3) For the purposes of sub-paragraph (2), the amount of consideration in money that would be payable by any person if that person were to purchase any goods is taken to be the amount that would be payable after the deduction of any amount included in the purchase price in respect of tax on the supply of the goods to that person.
9. Where there is a supply of services by virtue of —
an order made under section 10(3); or
paragraph 5(3) of the Second Schedule (but otherwise than for a consideration),the value of the supply is taken to be the full cost to the taxable person of providing the services except where paragraph 10 applies.Employees’ benefits10.—
This paragraph applies to a supply of goods or services, whether or not for a consideration, which is made by an employer and consists of —
the provision in the course of catering of food or beverages to the employer’s employees; or
the provision of accommodation for the employer’s employees in a hotel, inn, boarding house or similar establishment.(2) The value of a supply to which this paragraph applies is taken to be nil unless the supply is for a consideration consisting wholly or partly of money, and in that case its value is determined without regard to any consideration other than money.Foreign exchange11.—
Subject to this paragraph, where any sum relevant for determining value is expressed in a currency other than Singapore currency or in digital payment tokens, it is to be converted into Singapore currency at the selling rate of exchange prevailing in Singapore at the time when the supply takes place.(1A) Where any sum relevant for determining the value of a Seventh Schedule supply is expressed in a currency other than Singapore currency or in digital payment tokens, it is to be converted into Singapore currency at the selling rate of exchange prevailing in Singapore at one of the following times at the option of the taxable person:
the time of the supply;
the last day of the prescribed accounting period applicable to the supply;
the time of the filing of the return in relation to the supply.(1B) An option chosen by the taxable person under sub‑paragraph (1A) must be applied —
in relation to all Seventh Schedule supplies made by the taxable person; and
unless the Comptroller otherwise allows, for at least one year after the first time the option is used.(2) Where the Comptroller has issued a written notice which, for the purposes of this paragraph, specifies —
rates of exchange; or
methods of determining rates of exchange,a rate specified in or determined in accordance with the notice, as for the time being in force, applies (instead of the rate for which sub-paragraph (1) or (1A) provides) in the case of any supply by a person who opts, in such manner as may be allowed by the Comptroller, for the use of that rate in relation to that supply.(3) An option for the purposes of sub-paragraph (2) for the use of a particular rate or method of determining a rate —
must not be exercised by any person except in relation to all such supplies by that person as are of such description or after such date as may be specified in the notice under sub‑paragraph (2); and
must not be withdrawn or varied except with the consent of the Comptroller and in such manner as the Comptroller may require.(4) The Comptroller may, by a written notice issued under sub‑paragraph (2), allow a person to apply to the Comptroller for the use, for the purpose of valuing some or all of the person’s supplies, of a rate or method of determining rates of exchange which is different from any which would otherwise apply.(5) On an application made in accordance with any notice under sub‑paragraph (4), the Comptroller may authorise the use with respect to the applicant of such a rate or method of determining rates of exchange, in such circumstances, in relation to such supplies and subject to such conditions as the Comptroller thinks fit.Taxes or duties imposed by reason of supply
12. Where any taxes or duties other than goods and services tax, including entertainments duty, excise duty, betting and sweepstake duties, cess, film hire duty, lotteries duty and tax imposed under the Statutory Boards (Taxable Services) Act 1968 but excluding stamp duty are imposed or levied by reason of the supply of goods or services, the value of the supply shall include the amount of such taxes or duties.Residential premises13.—
Where a supply consists of a lease of any building, flat or tenement which is used or to be used principally for residential purposes and a lease or hire of any furniture, furnishings, fittings, appliances or effects, the value of the monthly rent for the lease of the building, flat or tenement shall be —
taken as one-twelfth of the annual value ascribed to such building, flat or tenement in the Valuation List, currently in force, as prepared by the Chief Assessor under section 10 of the Property Tax Act 1960; or
where no annual value has been ascribed to such building, flat or tenement in the Valuation List, such amount as the Comptroller may determine.(2) For the purpose of sub-paragraph (1), the Minister may, by order in the Gazette, provide that any building, flat or tenement is to be included, or is not to be included, as a building, flat or tenement used or to be used principally for residential purposes.Motor vehicles
14. Where a taxable person makes a supply (other than a supply to which section 23 applies) of any used motor vehicle which was registered under the Road Traffic Act 1961 pursuant to a previous supply of that motor vehicle, the value of the supply shall be reduced by 50%.Reverse charge on supplies received from abroad15.—
This paragraph applies in relation to services mentioned in section 14(1)(a)(i) or (ii) where —
the services were previously supplied by a taxable person who belongs in Singapore to the overseas supplier who subsequently supplied those services to the recipient; and
the previous supply of those services to the overseas supplier is a taxable supply that is not treated as a supply of international services under section 21(3).(2) Despite section 17(3A), the recipient may elect for the value of the reverse charge supply (A) by the overseas supplier to the recipient to be reduced (as may be applicable) —
by the value of the services previously supplied that is subject to tax (B); or
if B exceeds A, to nil.(3) To avoid doubt, section 17(3AA) and (3B) applies in determining A.[20/2010; 52/2018; 28/2019; 33/2019; S 395/2006; S 676/2008; S 874/2019]