Income Tax Act 1947 · 2020 Revised Edition · Part 9 · Ascertainment of Assessable Income
37AA. Deduction for donation of money by person related to or connected with company approved under section 13O, limited partnership approved under section 13OA or person, master fund, etc., approved under section 13U
Feedback & supportLast amended by an amending law of 2024. 2 amendments in all.
For the purpose of ascertaining the assessable income for any year of assessment of a person mentioned in subsection (2) that is approved as an approved donor for the purpose of this section, there is to be deducted an amount computed in accordance with subsection (4) of all donations of money for a purpose specified by the Minister or authorised body to the approved recipients, and made in the year immediately preceding the year of assessment, by the approved donor to all persons approved as approved recipients for the purpose of this section.
year of assessment
“year of assessment” means the period of 12 months commencing on 1 January 1948, and each subsequent period of 12 months.
The approved donor is one that is related (directly or indirectly) in accordance with rules made under subsection (13) to any of the following:
a company incorporated and resident in Singapore and approved under section 13O (called in this section a section 13O company); (aa)a limited partnership registered under the Limited Partnerships Act 2008 and approved under section 13OA (called in this section a section 13OA limited partnership);
a person, master fund, feeder fund, SPV, master‑feeder fund structure, master‑feeder fund‑SPV structure or master fund‑SPV structure approved under section 13U (called in this section a section 13U vehicle).
Any deduction under subsection (1) is made only after the deduction (if any) under section 37(3)(a).
The amount of deduction under subsection (1) in any year of assessment for any approved donor must not exceed the lower of the following:
the total amount of all donations of money made by the approved donor to approved recipients in the year immediately preceding the year of assessment;
40% of the statutory income of the approved donor for that year of assessment.
Any balance of the amount that is not deducted is not available as a deduction against the approved donor’s income for any subsequent year of assessment and is disregarded.
The Minister or an authorised body may, during the period from 1 January 2024 to 31 December 2028 (both dates inclusive) —
approve a person mentioned in subsection (2) as an approved donor; and
approve a person or a class of persons as an approved recipient or approved recipients.
The approval under subsection (6) is subject to any condition that the Minister or authorised body may impose.
There must not be more than one approved donor at any one time for each section 13O company, section 13OA limited partnership or section 13U vehicle.
company
“company” means any company incorporated or registered under any law in force in Singapore or elsewhere;
Any deduction under subsection (1) is subject to any condition precedent or condition subsequent that the Minister or authorised body may impose on the fund manager managing the funds of the section 13O company, the section 13OA limited partnership or the section 13U vehicle concerned.
Fund Manager
“Fund Manager” or “fund manager” means a company holding a capital markets services licence under the Securities and Futures Act 2001 for fund management or that is exempted under that Act from holding such a licence;
If the fund manager fails to comply with any of the conditions subsequent, the deduction allowed to the approved donor is treated as the approved donor’s income for the year of assessment in which the Comptroller discovers the non-compliance.
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;
No deduction may be made under subsection (1) to an approved donor in respect of any donation made to an approved recipient unless the approved donor provides to the approved recipient any information within the time and in the form and manner specified by the Comptroller.
Section 37(2), (3C), (3E) (but not the definition of “recipient”), (3F), (3G), (3H), (3I), (3J) and (10A) (except paragraph (b)) applies in relation to a donation of money under subsection (1) as those provisions apply in relation to a donation mentioned in section 37(3)(b), (c), (d), (e) or (f), subject to the necessary modifications and the following other modifications:
a reference in section 37(3C), (3F), (3G) and (3J) to a donor is to an approved donor;
a reference in section 37(3C) to a recipient under section 37(3)(b)(i) or (ii), (c), (d), (e) or (f) is to an approved recipient; (c)a reference in section 37(10A)(a) and (c) to the person making the donation is to the approved donor;
such other modifications as may be prescribed by rules made under subsection (13).
The Minister may make rules with respect to the following matters:
the manner in which a person must be related (directly or indirectly) to a section 13O company, a section 13OA limited partnership or a section 13U vehicle, to be an approved donor;
the conditions of approval of an approved recipient;
the matters in section 37(3H) as applied by subsection (12);
any other matter for giving full effect to or for carrying out the purposes of this provision.
In this regulation, “feeder fund”, “master‑feeder fund structure”, “master‑feeder fund‑SPV structure”, “master fund‑SPV structure”, “master fund” and “SPV” have the meanings given by section 13U.