Singapore legislation

Regulation 6

of Income Tax (Exemption of Income of Approved Companies Arising from Funds Managed by Fund Manager in Singapore) Regulations 2010

Regulation 6

Definition of associate

Amended byS 935/2022 wef 31/12/2021S 646/2013 wef 01/04/2009S 646/2013 wef 01/04/2009S 646/2013 wef 01/04/2009S 935/2022 wef 31/12/2021

Subregulation 1

Amended byS 935/2022 wef 31/12/2021

For the purposes of section 13O of the Act and subject to paragraph (2), a person (“P1”) is an associate of another person (“P2”), where P1 or P2 are neither designated persons nor individuals —

(a)

where P1 is a company and —

(i)

where P2 is another company —

(A)

P1 beneficially owns, directly or indirectly, at least 25% of the total value of the issued securities of P2;

(B)

P2 beneficially owns, directly or indirectly, at least 25% of the total value of the issued securities of P1; or

(C)

a third person beneficially owns, directly or indirectly, at least 25% of the total value of the issued securities of P1 and at least 25% of the total value of the issued securities of P2;

(ii)

where P2 is a company and a beneficiary of a trust —

(A)

P1 beneficially owns, directly or indirectly, at least 25% of the total value of the issued securities of P2;

(B)

P2 beneficially owns, directly or indirectly, at least 25% of the total value of the issued securities of P1; or

(C)

a third person beneficially owns, directly or indirectly, at least 25% of the total value of the issued securities of P1 and at least 25% of the total value of the issued securities of P2; and

(b)

where P1 is a company and is a beneficiary of a trust (“T1”) and where P2 is a company and is a beneficiary of another trust (“T2”) —

(i)

P1 beneficially owns, directly or indirectly, at least 25% of the total value of the issued securities of P2;

(ii)

P2 beneficially owns, directly or indirectly, at least 25% of the total value of the issued securities of P1; or

(iii)

a third person beneficially owns, directly or indirectly, at least 25% of the total value of the issued securities of P1 and at least 25% of the total value of the issued securities of P2.

Subregulation 2

Amended byS 646/2013 wef 01/04/2009S 646/2013 wef 01/04/2009S 646/2013 wef 01/04/2009S 935/2022 wef 31/12/2021

Notwithstanding anything in paragraph (1), P1 is not an associate of P2 in the following cases:

(a)

where —

(i)

either P1 or P2 is an entity listed on an exchange in Singapore or elsewhere;

(ii)

P1 does not beneficially own, directly or indirectly, at least 25% of the total value of the issued securities of P2; and

(iii)

P2 does not beneficially own, directly or indirectly, at least 25% of the total value of the issued securities of P1; (b)where —

(i)

no third person (other than an individual or a designated person) beneficially owns, directly or indirectly, at least 25% of the total value of issued securities of P1 and at least 25% of the total value of issued securities of P2; and

(ii)

at least 25% of the total value of the issued securities of P1 and at least 25% of the total value of the issued securities of P2 are owned either directly by an individual or a designated person, or indirectly through a nominee company or a trust fund by an individual or a designated person; or

(c)

where P1 is 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 —

(i)

beneficially owns directly any of the issued securities of the approved company; and

(ii)

satisfies all 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).

Read in full context — Income Tax (Exemption of Income of Approved Companies Arising from Funds Managed by Fund Manager in Singapore) Regulations 2010 →