Singapore legislation
Regulation 5
Regulation 5
Persons exempted from application of certain provisions
Subregulation 1
Section 13O(3) of the Act shall not apply to a relevant owner who is —
an individual;
a bona fide entity not resident in Singapore who does not have a permanent establishment in Singapore (other than a fund manager) and does not carry on a business in Singapore;
a bona fide entity not resident in Singapore (excluding a permanent establishment in Singapore) who carries on an operation in Singapore through a permanent establishment in Singapore where the funds used by the entity to invest directly or indirectly in the approved company are not obtained from such operation; (d)a designated person; (e)another approved company under section 13O of the Act which, at all times during the basis period for the year of assessment (being a year of assessment prior to the year of assessment 2020) for which the income of an approved company is exempt from tax under section 13O of the Act —
beneficially owns directly, 100% of the value of issued securities of the approved company; and
satisfies the conditions in regulation 3(2);
(ea)another approved company under section 13O of the Act which, at all times during the basis period for the year of assessment (being the year of assessment 2020 or any subsequent year of assessment) for which the income of the approved company is exempt from tax under section 13O of the Act, satisfies the conditions in regulation 3(2);
an approved person under section 13U of the Act which, at all times during the basis period for the year of assessment for which the income of an approved company is exempt from tax under section 13O of the Act —
[Deleted by S 646/2013 wef 01/04/2009](ii)satisfies the conditions in regulation 3(2) of the Income Tax (Exemption of Income Arising from Funds Managed by Fund Manager in Singapore) Regulations 2010 (G.N. No. S 414/2010);
in relation to an approved master-feeder fund structure —
a person (not being an individual, a body of persons or a Hindu joint family) that is an approved master fund or an approved feeder fund of the structure;
a partner of a partnership (including a limited partnership and a limited liability partnership), where the partnership is the approved master fund or an approved feeder fund of the structure;
a trustee of a trust fund where the trust fund is the approved master fund or an approved feeder fund of the structure; or
a taxable entity in relation to the approved master fund or an approved feeder fund of the structure, where the master fund or feeder fund is not a legal entity,if all of the conditions in regulation 3A(2) of the Income Tax (Exemption of Income Arising from Funds Managed in Singapore by Fund Manager) Regulations 2010 (whichever is applicable) are satisfied, and for this purpose a reference in those conditions to “that year of assessment” is to the year of assessment for which income of the approved company is exempt from tax under section 13O of the Act;
in relation to an approved master-feeder fund-SPV structure —
a company, a trustee of a trust fund or a partner of a limited partnership, where the company, trust fund or limited partnership (as the case may be) is the approved master fund or an approved feeder fund of the structure;
(ia)a person (not being a company, an individual or a Hindu joint family) that is an approved feeder fund of the structure;
(ib)a partner of a partnership (excluding a limited partnership but including a limited liability partnership), where the partnership is an approved feeder fund of the structure;
a taxable entity in relation to an approved feeder fund of the structure, where the feeder fund is not a legal entity;
an approved 1st tier SPV of the structure;
an approved 2nd tier SPV of the structure;
an approved eligible SPV of the structure, where the eligible SPV is not one mentioned in sub-paragraph (v), (vi) or (vii);
a partner of an approved eligible SPV of the structure, where the eligible SPV is a partnership (including a limited partnership and a limited liability partnership);
the trustee of an approved eligible SPV of the structure, where the eligible SPV is a trust fund; or
the taxable entity in relation to an approved eligible SPV of the structure, where the eligible SPV is not a legal entity,if all of the conditions in regulation 3B(2) of the Income Tax (Exemption of Income Arising from Funds Managed in Singapore by Fund Manager) Regulations 2010 (whichever is applicable) are satisfied, and for this purpose a reference in those conditions to “that year of assessment” is to the year of assessment for which income of the approved company is exempt from tax under section 13O of the Act; or
in relation to an approved master fund-SPV structure —
a company, a trustee of a trust fund or a partner of a limited partnership, where the company, trust fund or limited partnership (as the case may be) is the approved master fund of the structure;
an approved 1st tier SPV of the structure;
an approved 2nd tier SPV of the structure;
an approved eligible SPV of the structure, where the eligible SPV is not one mentioned in sub-paragraph (v), (vi) or (vii);
a partner of an approved eligible SPV of the structure, where the eligible SPV is a partnership (including a limited partnership and a limited liability partnership);
the trustee of an approved eligible SPV of the structure, where the eligible SPV is a trust fund; or
the taxable entity in relation to an approved eligible SPV of the structure, where the eligible SPV is not a legal entity,if all of the conditions in regulation 3C(2) of the Income Tax (Exemption of Income Arising from Funds Managed in Singapore by Fund Manager) Regulations 2010 (whichever is applicable) are satisfied, and for this purpose a reference in those conditions to “that year of assessment” is to the year of assessment for which income of the approved company is exempt from tax under section 13O of the Act.
Subregulation 2
Section 13O(5) of the Act shall not apply to a person referred to in that section if the person is —
an individual;
a bona fide entity not resident in Singapore who does not have a permanent establishment in Singapore (other than a fund manager) and does not carry on a business in Singapore;
a bona fide entity not resident in Singapore (excluding a permanent establishment in Singapore) who carries on an operation in Singapore through a permanent establishment in Singapore where the funds used by the entity to invest directly or indirectly in the approved company are not obtained from such operation; (d)a designated person; (e)another approved company under section 13O of the Act which, at all times during the basis period for the year of assessment (being any year of assessment prior to the year of assessment 2020) for which the income of an approved company is exempt from tax under section 13O of the Act —
beneficially owns directly, 100% of the value of issued securities of the approved company; and
satisfies the conditions in regulation 3(2);
(ea)another approved company under section 13O of the Act which, at all times during the basis period for the year of assessment (being the year of assessment 2020 or any subsequent year of assessment) for which the income of an approved company is exempt from tax under section 13O of the Act, satisfies the conditions in regulation 3(2);
an approved person under section 13U of the Act which, at all times during the basis period for the year of assessment for which the income of an approved company is exempt from tax under section 13O of the Act —
[Deleted by S 646/2013 wef 01/04/2009](ii)satisfies the conditions in regulation 3(2) of the Income Tax (Exemption of Income Arising from Funds Managed by Fund Manager in Singapore) Regulations 2010;
in relation to an approved master-feeder fund structure —
a person (not being an individual, a body of persons or a Hindu joint family) that is an approved master fund or an approved feeder fund of the structure;
a partner of a partnership (including a limited partnership and a limited liability partnership), where the partnership is the approved master fund or an approved feeder fund of the structure;
a trustee of a trust fund where the trust fund is the approved master fund or an approved feeder fund of the structure; or
a taxable entity in relation to the approved master fund or an approved feeder fund of the structure, where the master fund or feeder fund is not a legal entity,if all of the conditions in regulation 3A(2) of the Income Tax (Exemption of Income Arising from Funds Managed in Singapore by Fund Manager) Regulations 2010 (whichever is applicable) are satisfied, and for this purpose a reference in those conditions to “that year of assessment” is to the year of assessment for which income of the approved company is exempt from tax under section 13O of the Act;
in relation to an approved master-feeder fund-SPV structure —
a company, a trustee of a trust fund or a partner of a limited partnership, where the company, trust fund or limited partnership (as the case may be) is the approved master fund or an approved feeder fund of the structure;
(ia)a person (not being a company, an individual or a Hindu joint family) that is an approved feeder fund of the structure;
(ib)a partner of a partnership (excluding a limited partnership but including a limited liability partnership), where the partnership is an approved feeder fund of the structure;
a taxable entity in relation to an approved feeder fund of the structure, where the feeder fund is not a legal entity;
an approved 1st tier SPV of the structure;
an approved 2nd tier SPV of the structure;
an approved eligible SPV of the structure, where the eligible SPV is not one mentioned in sub-paragraph (v), (vi) or (vii);
a partner of an approved eligible SPV of the structure, where the eligible SPV is a partnership (including a limited partnership and a limited liability partnership);
the trustee of an approved eligible SPV of the structure, where the eligible SPV is a trust fund; or
the taxable entity in relation to an approved eligible SPV of the structure, where the eligible SPV is not a legal entity,if all of the conditions in regulation 3B(2) of the Income Tax (Exemption of Income Arising from Funds Managed in Singapore by Fund Manager) Regulations 2010 (whichever is applicable) are satisfied, and for this purpose a reference in those conditions to “that year of assessment” is to the year of assessment for which income of the approved company is exempt from tax under section 13O of the Act; or
in relation to an approved master fund-SPV structure —
a company, a trustee of a trust fund or a partner of a limited partnership, where the company, trust fund or limited partnership (as the case may be) is the approved master fund of the structure;
an approved 1st tier SPV of the structure;
an approved 2nd tier SPV of the structure;
an approved eligible SPV of the structure, where the eligible SPV is not one mentioned in sub-paragraph (v), (vi) or (vii);
a partner of an approved eligible SPV of the structure, where the eligible SPV is a partnership (including a limited partnership and a limited liability partnership);
the trustee of an approved eligible SPV of the structure, where the eligible SPV is a trust fund; or
the taxable entity in relation to an approved eligible SPV of the structure, where the eligible SPV is not a legal entity,if all of the conditions in regulation 3C(2) of the Income Tax (Exemption of Income Arising from Funds Managed in Singapore by Fund Manager) Regulations 2010 (whichever is applicable) are satisfied, and for this purpose a reference in those conditions to “that year of assessment” is to the year of assessment for which income of the approved company is exempt from tax under section 13O of the Act.
Subregulation 3
For the purposes of section 13O(3) and (5) of the Act and the definition of “prescribed percentage” in regulation 2(1), where the issued securities or equity interest, as the case may be, is held by a trustee of a trust, the relevant owner or person shall be the beneficiary of the trust administered by the trustee.
Subregulation 4
For the purposes of paragraph (3), if a person is a beneficiary of a trust (referred to in this paragraph as a first level trust entity) whose trustee holds (including by virtue of one or more applications of this paragraph), in its capacity as trustee of the first level trust entity, interests of another trust (referred to in this paragraph as a second level trust entity), then the person is taken to beneficially own interests of the second level trust entity; and the percentage which the value of those interests bears to the total value of all interests of the second level trust entity shall be computed in accordance with the following formula:where Ais the percentage which the value of the interest of the first level trust entity beneficially owned by the person bears to the total value of all interests of the first level trust entity; andBis the percentage which the value of the interest of the second level trust entity beneficially owned by the trustee of the first level trust entity bears to the total value of all interests of the second level trust entity.
Subregulation 5
In this regulation —
Definition
“approved 1st tier SPV”, means a 1st tier SPV, as defined in section 13U(5) of the Act, that is approved under section 13U of the Act;
Definition
“approved 2nd tier SPV” means a 2nd tier SPV, as defined in section 13U(5) of the Act, that is approved under section 13U of the Act;
Definition
“approved eligible SPV” means an eligible SPV, as defined under section 13U(5) of the Act, that is approved under section 13U of the Act;
Definition
“approved feeder fund” means a feeder fund, as defined in section 13U(5) of the Act, that is approved under section 13U of the Act;
Definition
“approved master-feeder fund structure” means a master-feeder fund structure, as defined under section 13U(5) of the Act, that is approved under section 13U of the Act;
Definition
“approved master-feeder fund-SPV structure” means a master-feeder fund-SPV structure, as defined under section 13U(5) of the Act, that is approved under section 13U of the Act;
Definition
“approved master fund” means a master fund, as defined under section 13U(5) of the Act, that is approved under section 13U of the Act;
Definition
“approved master fund-SPV structure” means a master fund-SPV structure, as defined under section 13U(5) of the Act, that is approved under section 13U of the Act;
Definition
“SPV” has the meaning given by section 13U(5) of the Act;
Definition
“taxable entity” has the meaning given by section 13U(5) of the Act;
Definition
“trust fund” has the meaning given by section 13U(5) of the Act.