Income Tax (Tax Incentives for Partnerships) Regulations 2012

any reference in section 13G(6) and (7) to an approved venture company is a reference to a partner of an approved partnership;

any reference in section 13G(15) to an approved venture company is a reference to an approved partnership; and

paragraphs (3), (4) and (8) apply instead of section 13G(4) and (5).

any expenses in respect of such authorised investment of the approved partnership, allowable under the Act for that year of assessment which is apportioned to that share;

any loss of the approved partnership for that year of assessment arising from the disposal of any authorised investment in Singapore or elsewhere which is apportioned to that share;

any allowances for that year of assessment under section 19, 19A, 20, 21 or 22 which are apportioned to that share notwithstanding that no claim for the allowance has been made; and

any balance of the expenses, losses and allowances referred to in sub-paragraphs (a), (b) and (c) which have not been deducted in determining the share of divisible income of the partner from making any authorised investment for any previous year of assessment.

shall only be deducted against the income of the partner that is exempt from tax under regulations made under section 13G; and

shall not be available as a deduction against any other income of the partner, except that any balance of the expenses, allowances or losses remaining unabsorbed at the end of the period specified under section 13G(2A) shall be available as a deduction against any other income of the partner for the year of assessment which relates to the basis period in which the tax exemption ceases and for any subsequent year of assessment in accordance with section 23 or 37, as the case may be.

during the period between 1 April 2008 and 24 March 2016 (both dates inclusive) from the qualifying activities mentioned in paragraphs (a), (b) and (c) of the definition of “qualifying activities” in paragraph (6);

on or after 1 June 2011 from the qualifying activities mentioned in paragraphs (d), (e) and (f) of the definition of “qualifying activities” in paragraph (6);

on or after 25 March 2016 from the qualifying activities mentioned in paragraphs (g) and (h) of the definition of “qualifying activities” in paragraph (6); and

on or after 12 December 2018 from the qualifying activities mentioned in paragraphs (i) and (j) of the definition of “qualifying activities” in paragraph (6),as it applies to the income of an approved shipping investment enterprise from the activities mentioned in section 13P(1)(a), (b), (c), (ca), (cb), (cc), (cd) and (d), with the modifications and exceptions set out in this regulation.

a reference in section 13P(2) to a shipping investment enterprise is a reference to a partnership registered under any written law in Singapore;

a reference in section 13P to the approval of a shipping investment enterprise is a reference to the approval of the partnership under section 13P(2);

a reference in section 13P(7), (8) and (18) to an approved shipping investment enterprise is a reference to a partner of the approved partnership;

a reference in section 13P(17) to an approved shipping investment enterprise is a reference to the approved partnership;

a reference in section 13P to a sea-going ship acquired, chartered or leased by an approved shipping investment enterprise is a reference to a sea-going ship acquired, chartered or leased by the approved partnership; and

paragraphs (3), (3AA), (3AB), (3AC), (3A), (4), (5) and (5B) apply in lieu of section 13P(1A), (1B), (1C), (1D), (1DA), (1E), (1F), (5), (6) and (6A), and section 13P(1G) is to be construed accordingly.

a partner of a partnership the approval of which has expired or been withdrawn, but which continues to derive income from qualifying activities in relation to a sea-going ship acquired before or during the period of the approval, provided that the partnership has, or (in a case of income derived from an activity mentioned in paragraph (i) or (j) of the definition of “qualifying activities” in paragraph (6)) both the partnership and the approved related party have, by the date of the expiry or before the withdrawal, fulfilled all the conditions referred to in section 13P(3); and

any reference in section 13P and these Regulations to an approved partnership shall be construed accordingly.

any income of an approved partnership derived before 12 December 2018 as a lessor of a sea‑going ship under a finance lease that is treated as a sale under section 10C; or

any income of an approved partnership that is derived as part of a business of trading in sea‑going ships or of constructing sea‑going ships for sale.

shall be taken into account notwithstanding that no claim for the allowance has been made; and

shall only be deducted from the share of income of the partner derived from the qualifying activities, and the balance of those allowances shall not be available as a deduction against any other income of the partner; except that any balance remaining unabsorbed at the end of the tax exempt period of the approved partnership shall be available as a deduction against any other income of the partner for the year of assessment which relates to the basis period in which the tax exemption ceases and for any subsequent year of assessment in accordance with section 23.

shall be deducted against the income of the partner from the qualifying activities in accordance with section 37; and

shall only be deducted against the income of the partner from the qualifying activities, and the balance of the loss shall not be available as a deduction against any other income of the partner, except that any balance remaining unabsorbed at the end of the tax exempt period of the partnership shall be available as a deduction against any other income of the partner for the year of assessment which relates to the basis period in which the tax exemption ceases and for any subsequent year of assessment in accordance with section 37.

any reference to a company in section 19B is a reference to the partnership or, in relation to the making of a writing‑down allowance or a charge, to the partners of the partnership;

the writing-down allowance and charge shall be apportioned to each partner of the partnership according to that partner’s share of the divisible income of the partnership;

a reference in section 19B to a trade or business of a company is a reference to a trade or business of the partnership;

a reference in section 19B to the carrying on of a trade or business by a company is a reference to the carrying on of a trade or business by a partnership;

a reference to the company in section 19B(2A)(a), (b) and (c) is a reference to the partnership;

a reference to an approved media and digital entertainment company in section 19B(2C) is a reference to a partnership approved by the Minister or an authorised body, whose principal trade or business is to provide media and digital entertainment in Singapore;

any writing-down allowance brought to charge under section 19B(2E), as apportioned to each partner of the partnership according to the partner’s share of divisible income of the partnership, shall be deemed as income of that partner for the year of assessment relating to the basis period in which the event referred to in section 19B(2E) occurs;

a reference in section 19B(10A) to a related party of a partnership is a reference to —

any individual who is a relative of a partner (being an individual) of that partnership;

any company which is directly or indirectly controlled by a partner (being an individual) or a relative of a partner of that partnership; or

any person who is a related party of a partner (being a person other than an individual) of that partnership; and

for the avoidance of doubt, a reference to no writing-down allowance to a company in section 19B is a reference to no writing-down allowance to the partners of the partnership.

where either the partnership is under the control of a single partner who is an individual or no single partner has control over the partnership — the partnership derives less than $500 million in gross revenue from all of the partnership’s trades and businesses in the basis period for that year of assessment; or (b)where the partnership is under the control of a single partner that is a company — the partnership, the company and all other entities in the group of which the partnership and the company are parts derive a total of less than $500 million in gross revenue from all of their trades and businesses in that basis period.

a partnership (referred to in this paragraph as the first-mentioned partnership) has acquired the intellectual property rights from another partnership (referred to in this paragraph as the second-mentioned partnership) directly or indirectly from a related party of the second-mentioned partnership; and

a partner of the first-mentioned partnership —

being an individual, is a relative of one or more of the partners of the second-mentioned partnership (being individuals) who comes within paragraph (5);

being an individual, directly or indirectly controls one or more of the partners of the second-mentioned partnership (being companies) who comes within paragraph (5); or

being a person other than an individual, is a related party of one or more of the partners of the second‑mentioned partnership and that partner or those partners of the second-mentioned partnership who comes within paragraph (5),no writing-down allowance under section 19B shall be made to the partners of the first-mentioned partnership for any capital expenditure incurred by the first-mentioned partnership in such acquisition.

to whom any deduction has been allowed under section 14, 14C, 14D, 14E, 14EA or 14P for any outgoing, expense or payment incurred for any activity which resulted in the creation of the intellectual property; and

whose share of the proceeds from the sale, transfer or assignment of those intellectual property rights to the first‑mentioned partnership are not chargeable to tax.

the allowances under section 19, 19A, 20, 21, 22 or 23, as apportioned to that share, shall be taken into account notwithstanding that no claim for such allowances has been made;

the allowances under section 19, 19A, 20, 21, 22 or 23 in respect of finance leasing in any year of assessment, as apportioned to the share of divisible income of the partner from finance leasing for that year of assessment, shall be deducted against that share, and any balance of the allowances shall not, subject to sub-paragraph (c), be available as a deduction against any other income of the partner or be available for transfer under section 37B;

where the approved partnership ceases to derive income from finance leasing in the basis period for any year of assessment, any balance of the allowances in respect of such finance leasing after the deduction against the share of divisible income of the partner from that finance leasing shall be available as a deduction against any other income of the partner for that year of assessment and for any subsequent year of assessment in accordance with section 23; and

the Comptroller shall determine the manner and extent to which —

allowance under section 19, 19A, 20, 21, 22 or 23, and any expense and donation allowable under the Act are to be deducted; and

any loss may be deducted under section 37.

the reference in section 43P(3) to a container investment enterprise is a reference to a partnership registered under any written law in Singapore;

a reference in section 43P to the approval of a container investment enterprise is a reference to the approval of the partnership under section 43P(3); (c)a reference in section 43P to a container or an intermodal equipment acquired or leased by an approved container investment enterprise is a reference to a container or an intermodal equipment acquired or leased by the approved partnership; and

paragraphs (3), (3A) and (4) apply in lieu of section 43P(2), (2A), (2B), (2C) and (6).

the allowances under section 19, 19A, 20, 21, 22 or 23 (other than allowances made to the lessee under regulations made under section 10C), as apportioned to that share, shall be taken into account notwithstanding that no claim for such allowances has been made;

the allowances under section 19, 19A, 20, 21, 22 or 23 (other than allowances made to the lessee under regulations made under section 10C) in respect of finance leasing in any year of assessment, as apportioned to the share of divisible income of the partner from finance leasing for that year of assessment, shall be deducted against that share, and any balance of the allowances shall not, subject to sub-paragraph (c), be available as a deduction against any other income of the partner or be available for transfer under section 37B;

where the approved partnership ceases to derive income from finance leasing in the basis period for any year of assessment, any balance of the allowances in respect of such finance leasing after the deduction against the share of divisible income of the partner from that finance leasing shall be available as a deduction against any other income of the partner for that year of assessment and for any subsequent year of assessment in accordance with section 23; and

the Comptroller shall determine the manner and extent to which —

allowances under section 19, 19A, 20, 21, 22 or 23, and any expenses and donations allowable under the Act are to be deducted; and

any loss may be deducted under section 37.