Income Tax Act 1947 · 2020 Revised Edition · Part 4 · Exemption from Income Tax
13R. Exemption of income of not‑for‑profit organisation
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There is exempt from tax any income of an approved not‑for‑profit organisation.
The Minister or an authorised body may, during the period from 15 February 2007 to 31 December 2027 (both dates inclusive), approve any not‑for‑profit organisation for the purposes of subsection (1).
The approval under subsection (2) is subject to such conditions as the Minister or an authorised body may impose and is for such period not exceeding 10 years as the Minister or authorised body may specify.
Despite subsection (2), the period specified under subsection (3) may be extended on expiry by the Minister or an authorised body for such further period or periods, not exceeding 10 years at any one time, as the Minister or authorised body thinks fit.
The Minister may make regulations to provide for the deduction of expenses, allowances and losses of an approved not‑for‑profit organisation otherwise than in accordance with this Act.
Despite subsection (1), where it appears to the Comptroller that any income of an approved not‑for‑profit organisation which has been exempted from tax under subsection (1) ought not to have been so exempted for any year of assessment, the Comptroller may at any time, subject to section 74, make such assessment or additional assessment on the approved not‑for‑profit organisation as may appear to be necessary in order to make good any loss of tax.
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;
Any expenses, losses or allowances incurred or claimed by an approved not‑for‑profit organisation during the period of its approval under subsection (3) or (4) that remain unabsorbed at the end of that period, are not available as a deduction against any of its income for the year of assessment which relates to the basis period in which the approval of the approved not‑for‑profit organisation expires or is withdrawn, or any subsequent year of assessment.
year of assessment
“year of assessment” means the period of 12 months commencing on 1 January 1948, and each subsequent period of 12 months.
In this section, “not‑for‑profit organisation” means any person, not being a person registered or exempt from registration under the Charities Act 1994 —
who is not established or operated for the object of deriving a profit;
whose income and property —
may only be applied for the furtherance of its objects; and
are not distributable to any shareholder, member, trustee or officer of the person except as reasonable compensation for services rendered; and
whose property may only be distributed to persons established for a similar object as that person’s upon that person’s dissolution.[13U