Singapore legislation
Regulation 3
of Income Tax (Deduction for Acquisition of Shares of Companies) Regulations 2012
Regulation 3
Election of acquisitions in place of acquisitions under section 37L(4)(a) and (b), or (4)(c) and (d), of Act
For the purpose of section 37L of the Act and these Regulations, an acquiring company may elect for the following acquisitions of ordinary shares in a target company by the acquiring company and its acquiring subsidiaries to be its qualifying acquisitions instead of the acquisitions referred to in section 37L(4)(a) and (b) or section 37L(4)(c) and (d) of the Act, as the case may be:
instead of the acquisitions referred to in section 37L(4)(a) and (b) of the Act —
one of the following acquisitions:
the acquisition referred to in section 37L(4)(a) of the Act;
an acquisition of ordinary shares in the target company where the date of the acquisition is after the date of the acquisition referred to in sub‑paragraph (i)(A) but before the end of the basis period of the acquiring company in which the acquisition referred to in sub‑paragraph (i)(A) falls; and
the acquisitions of ordinary shares in the target company that took place in a period of 12 months ending on and including the date of the acquisition referred to in sub‑paragraph (i)(A) or (B), as the case may be; and
instead of the acquisitions referred to in section 37L(4)(c) and (d) of the Act —
one of the following acquisitions:
the acquisition referred to in section 37L(4)(c) of the Act;
an acquisition of ordinary shares in the target company where the date of the acquisition is after the date of the acquisition referred to in sub‑paragraph (i)(A) but before the end of the basis period of the acquiring company in which the acquisition referred to in sub‑paragraph (i)(A) falls; and
the acquisitions of ordinary shares in the target company that took place in the shorter of the following periods, as may be applicable:
a period of 12 months ending on and including the date of the acquisition referred to in sub‑paragraph (i)(A) or (B), as the case may be;
the period commencing immediately after the latest acquisition in respect of which a deduction under section 37L of the Act has been claimed on the basis that it is a qualifying acquisition referred to in section 37L(4)(a) or (b) of the Act, or paragraph (a), as the case may be, and ending on and including the date of the acquisition referred to in sub‑paragraph (i)(A) or (B), as the case may be,provided that at the end of that basis period of the acquiring company in which the acquisition referred to in paragraph (a)(i)(A) or (b)(i)(A), as the case may be, falls, the acquiring company and its acquiring subsidiaries own together in total more than 50% (in the case of paragraph (a)) or 75% or more (in the case of paragraph (b)) of the total number of ordinary shares in the target company.