Income Tax Act 1947 · 2020 Revised Edition · Part 3 · Imposition of Income Tax
11. Ascertainment of income of clubs, trade associations, etc.
Feedback & supportA body of persons, whether corporate or unincorporate, that carries on a club or similar institution and receives from its members not less than half of its gross receipts on revenue account (including entrance fees and subscriptions) is not deemed to carry on a business; but where less than half of such gross receipts are received from members, the whole of the income from transactions both with members and others (including entrance fees and subscriptions) is deemed to be receipts from a business, and the body of persons is chargeable in respect of the profits therefrom.
body of persons
“body of persons” means any body politic, corporate or collegiate, any corporation sole and any fraternity, fellowship or society of persons whether corporate or unincorporate but does not include a company or a partnership;
Where a body of persons, whether corporate or unincorporate, carries on a trade or professional association in such circumstances that more than half of its receipts by way of entrance fees and subscriptions from Singapore members are claimed or claimable as allowable deductions for the purposes of section 14 —
the body of persons is deemed to carry on a business;
the whole of its income from transactions with Singapore members and persons who are not members (including entrance fees and subscriptions) is deemed to be receipts from a business; and
the body of persons is chargeable in respect of the profits from the business.
For the purposes of subsection (2), “body of persons” includes a company limited by guarantee approved by the Minister or such person as the Minister may appoint, subject to such conditions as the Minister or appointed person may impose.
In this section —
“members”, in relation to a body of persons, means those persons who are entitled to vote at a general meeting of the body at which effective control is exercised over its affairs;
“Singapore members” means members that are —
persons, other than companies, resident in Singapore;
companies incorporated in Singapore (excluding branches or offices located outside Singapore); or
in the case of companies incorporated outside Singapore, the branches or offices of the companies located within Singapore.