Singapore legislation
Regulation 9
of Income Tax (Tax Incentives for Partnerships) Regulations 2012
Regulation 9
Application of section 43P
Subregulation 1
Section 43P shall apply to the share of divisible income of a partner of an approved partnership from qualifying activities, as it applies to the income of an approved container investment enterprise from the activities referred to in section 43P(1)(a), (b), (c), (d), (e), (f) and (g), with the modifications and exceptions set out in regulation 3 and this regulation.
Subregulation 2
For the purposes of paragraph (1) —
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).
Subregulation 3
Section 43P(1) shall continue to apply to a partner of a partnership the approval of which has expired or been withdrawn, but which continues to derive income from qualifying activities in relation to a container or an intermodal equipment acquired before or during the period of the approval, provided that the partnership has, or (in the case of income derived from any activity mentioned in paragraph (e), (f) or (g) of the definition of “qualifying activities” in paragraph (5)) 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 43P(4); and any reference in section 43P and these Regulations to an approved partnership shall be construed accordingly.
Subregulation 3A
Section 43P(1)(a), (c), (e) and (f) does not apply to income derived on or after 12 December 2018 from the leasing of a container or intermodal equipment that is acquired by the approved partnership or the approved related party by way of a finance lease entered into with an entity that was not an approved related party.
Subregulation 4
In determining the share of divisible income of a partner of an approved partnership that is subject to tax at the concessionary rate of tax under section 43P(1) —
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.
Subregulation 5
In this regulation —
Definition
“container”, “container investment enterprise” and “finance leasing” have the same meanings as in section 43P;
Definition
“intermodal equipment” has the same meaning as in section 43P;
Definition
“qualifying activities” means —
the leasing of any container owned by the approved partnership acquired before or during the period of approval of the partnership referred to in section 43P(4) and used for the international transportation of goods;
the foreign exchange and risk management activities which are carried out in connection with and incidental to the leasing referred to in paragraph (a);
for the year of assessment 2013 and subsequent years of assessment, the leasing of any intermodal equipment owned by the approved partnership acquired before or during the period of approval of the partnership mentioned in section 43P(4), that is incidental to the leasing mentioned in paragraph (a);
for the year of assessment 2013 and subsequent years of assessment, foreign exchange and risk management activities that are carried out in connection with and incidental to the leasing mentioned in paragraph (c);
the leasing of any container used for international transportation of goods, if the container was —
acquired by an approved related party before or during the period of the approval of the related party under section 43P(4); and
leased by the approved related party to the approved partnership;
the leasing of any intermodal equipment that is incidental to the lease mentioned in paragraph (e), if the intermodal equipment was —
acquired by an approved related party before or during the period of the approval of the related party under section 43P(4); and
leased by the approved related party to the approved partnership; and
foreign exchange and risk management activities that are carried out in connection with and incidental to the leases mentioned in paragraphs (e) and (f);
Definition
“related party” means —
any entity that is related to the approved partnership in the manner prescribed under the Income Tax (Related Party of Approved Container Investment Enterprise under Section 43P) Rules 2021 (G.N. No. S 875/2021); and
any other entity that is approved by the Minister in any particular case to be a related party of an approved partnership.