Singapore legislation
Regulation 3A
of Income Tax (Deduction for Acquisition of Shares of Companies) Regulations 2012
Regulation 3A
Election of acquisitions in place of acquisitions under section 37L(4A)(c) and (d), or (4A)(e) and (f), of Act
Subregulation 1
For the purpose of section 37L of the Act and these Regulations, an acquiring company (A) may elect for the acquisitions of ordinary shares in a target company specified in paragraph (2) made by A and A’s acquiring subsidiaries as A’s qualifying acquisitions instead of the acquisitions mentioned in any of the following provisions of the Act:
section 37L(4A)(c) and (d);
section 37L(4A)(e) and (f).
Subregulation 2
The acquisitions mentioned in paragraph (1) are —
instead of the acquisitions mentioned in section 37L(4A)(c) and (d) of the Act —
one of the following acquisitions:
the acquisition mentioned in section 37L(4A)(c) of the Act;
an acquisition of ordinary shares in the target company, the date of which is after the date of the acquisition mentioned in sub-paragraph (A) but before the end of the basis period of A in which the acquisition mentioned in sub-paragraph (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 mentioned 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 mentioned in section 37L(4A)(a) or (b) of the Act (as the case may be) and ending on (and including) the date of the acquisition mentioned in sub-paragraph (i)(A) or (B), as the case may be; and
instead of the acquisitions mentioned in section 37L(4A)(e) and (f) of the Act —
one of the following acquisitions:
the acquisition mentioned in section 37L(4A)(e) of the Act;
an acquisition of ordinary shares in the target company, the date of which is after the date of the acquisition mentioned in sub-paragraph (A) but before the end of the basis period of A in which the acquisition mentioned in sub-paragraph (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 mentioned 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 mentioned in —
(BA)section 37L(4)(a) or (b) of the Act or regulation 3(a); or
(BB)section 37L(4A)(c) or (d) of the Act or sub-paragraph (a),(as the case may be) and ending on (and including) the date of the acquisition mentioned in sub-paragraph (i)(A) or (B), as the case may be.
Subregulation 3
A may make the election mentioned in paragraph (1) only if A and A’s acquiring subsidiaries own together in total —
in the case of paragraph (2)(a) — more than 50% of the total number of ordinary shares in the target company at the end of A’s basis period in which the acquisition mentioned in paragraph (2)(a)(i)(A) falls; or
in the case of paragraph (2)(b) — 75% or more of the total number of ordinary shares in the target company at the end of A’s basis period in which the acquisition mentioned in paragraph (2)(b)(i)(A) falls.