Singapore legislation
Regulation 7
of Income Tax (Tax Incentives for Partnerships) Regulations 2012
Regulation 7
Application of section 19B
Subregulation 1
Section 19B shall apply for the purpose of making writing-down allowance to any partner of a partnership with the modifications and exceptions set out in this regulation.
Subregulation 2
For the purpose of paragraph (1) —
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;
(da)a reference to a qualifying company for a year of assessment in section 19B(1AD), (1AE) and (1AH) is a reference to the partnership where it is a qualifying partnership for that year of assessment;
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;
(ga)to avoid doubt, the reference in section 19B(5) to a company to whom writing‑down allowances have been made is a reference to the partnership to whose partners writing‑down allowances have been made;
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.
Subregulation 3
For the purpose of section 19B(1A), (1AD), (1B) and (1BAA), where a partnership carrying on a trade or business has incurred capital expenditure during the basis period for any year of assessment between the year of assessment 2011 and the year of assessment 2018 (both years inclusive) or between the year of assessment 2024 and the year of assessment 2028 (both years inclusive) in acquiring one or more intellectual property rights for use in the trade or business, the aggregate of the writing-down allowances that may be allowed to all the partners of the partnership for that expenditure in respect of all the trades and businesses of the partnership shall not exceed the amount computed in accordance with section 19B(1A), (1AD), (1B) or (1BAA) (as the case may be) for that year of assessment.
Subregulation 3A
For the purposes of paragraph (2)(da), the partnership is a qualifying partnership for a year of assessment if —
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.
Subregulation 3B
In paragraph (3A), whether or not the partnership is under the control of a partner is determined in accordance with FRS 110.
Subregulation 3C
For the purposes of paragraphs (3A) and (3B) —
Definition
“FRS 110” means the financial reporting standard known as Financial Reporting Standard 110 (Consolidated Financial Statements) that is treated as made by the Accounting Standards Committee under Part 3 of the Accounting Standards Act 2007, as amended from time to time; and
Definition
“group” means a group of entities (whether incorporated or registered in Singapore or elsewhere) comprising a parent and its subsidiaries within the meaning of FRS 110.
Subregulation 4
Without prejudice to section 19B(10A), where —
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.
Subregulation 5
In paragraph (4), a partner of the second-mentioned partnership comes within this paragraph if the partner is one —
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.
Subregulation 6
In this regulation —[Deleted by S 732/2025 wef 04/11/2022]
Definition
“capital expenditure” and “intellectual property rights” have the same meanings as in section 19B(11);
Definition
“child” includes a step-child, a child who has been de facto adopted by the partner or by the spouse of the partner, whether or not such adoption has been registered in accordance with the provisions of any written law, and a child of whom the partner has the custody or whom he maintains wholly or partly at his own expense;
Definition
“relative”, in relation to a partner who is an individual, means any person who is a spouse, parent, child, grandchild, brother, sister, uncle, aunt, nephew, niece, cousin of the partner.