Income Tax Act 1947 · 2020 Revised Edition · Part 4 · Exemption from Income Tax
13F. Exemption of income of foreign trust
Feedback & supportLast amended by an amending law of 2024. 4 amendments in all.
There is exempt from tax such income as the Minister may by regulations prescribe of such foreign trust or eligible holding company established for the purposes of such foreign trust as specified in those regulations, or as approved by the Minister or authorised body, and administered by a trustee company in Singapore.
Where any income of a foreign trust is exempt from tax under regulations made under subsection (1) in any year of assessment, the share of such income to which any beneficiary under the trust is entitled to receive for that year of assessment is also exempt from tax if the beneficiary —
year of assessment
“year of assessment” means the period of 12 months commencing on 1 January 1948, and each subsequent period of 12 months.
being an individual, is neither a citizen of Singapore nor resident in Singapore;
being a company, is neither incorporated nor resident in Singapore and where such a company —
has not more than 50 shareholders, all of its issued shares are beneficially owned, directly or indirectly, by persons who are neither citizens of Singapore nor resident in Singapore; or
has more than 50 shareholders, not less than 95% of the total number of its issued shares are beneficially owned, directly or indirectly, by persons who are neither citizens of Singapore nor resident in Singapore;
being any other person, is neither resident in Singapore nor constituted or registered under any written law in Singapore; or
is a trustee of another foreign trust specified under subsection (1).
Where any income of a foreign trust is exempt from tax under regulations made under subsection (1) in any year of assessment, the share of such income that a foreign account of a philanthropic purpose trust is entitled to receive for that year of assessment is also exempt from tax.
Despite subsections (1) and (2), where it appears to the Comptroller that any income of a foreign trust or eligible holding company ought not to have been exempted under regulations made under subsection (1), the Comptroller may, subject to section 74, make such assessment or additional assessment upon the foreign trust or eligible holding company (as the case may be) as may appear to be necessary.
Comptroller
“Comptroller” means the Comptroller of Income Tax appointed under section 3(1) and includes, for all purposes of this Act except the exercise of the powers conferred upon the Comptroller by sections 34F(9), 37L(7), 37M(5), 67(1)(a), 95, 96, 96A and 101, a Deputy Comptroller or an Assistant Comptroller so appointed;
In this section —
“foreign account” and “philanthropic purpose trust” have the meanings given by section 13L;
“trustee company” has the meaning given by section 43G(2).
company
“company” means any company incorporated or registered under any law in force in Singapore or elsewhere;
This section does not apply to —
a trust that is constituted on or after 1 January 2028;
a company that is incorporated on or after 1 January 2028;
a trust that —
is constituted before 1 January 2028; and
in the basis period in which 31 December 2027 falls, is not a foreign trust specified in the regulations under subsection (1) (called in this subsection and subsection (8) a specified trust) that is administered by a trustee company in Singapore within the meaning of those regulations; or
a company that —
is incorporated before 1 January 2028; and
in the basis period in which 31 December 2027 falls —
is not an eligible holding company established for the purposes of a specified trust, and specified in the regulations under subsection (1); or
is not administered by a trustee company in Singapore within the meaning of those regulations.
Where, in any basis period beginning on or after 1 January 2028 —
a trust or company does not satisfy the requirements referred to in subsection (8); or
the trustee company which administers a foreign trust or an eligible holding company established for the purposes of a foreign trust fails to comply with any of the regulations under subsection (1),then this section does not apply to the trust or company in paragraph (a), or the foreign trust or eligible holding company in paragraph (b), for the year of assessment to which that basis period relates, and for every subsequent year of assessment even if the requirements are satisfied and the regulations are complied with in the basis period for that subsequent year of assessment.
In subsection (7), the requirements are —
in the case of the trust, that it is a specified trust and is administered by a trustee company in Singapore within the meaning of those regulations; or
in the case of the company —
that it is an eligible holding company established for the purposes of a specified trust, and specified in those regulations; and
that it is administered by a trustee company in Singapore within the meaning of those regulations.[13G