Singapore legislation
Regulation 5
Regulation 5
Persons exempted from application of certain provisions
Subregulation 1
Section 13D(2) or (4) of the Act shall not apply to a relevant owner or relevant beneficiary, as the case may be, who is —
an individual;
a bona fide entity not resident in Singapore who does not have a permanent establishment in Singapore (other than a fund manager) and does not carry on a business in Singapore;
a bona fide entity not resident in Singapore (excluding a permanent establishment in Singapore) who carries on an operation in Singapore through a permanent establishment in Singapore where the funds used by the entity to invest directly or indirectly in the prescribed person or the trust fund for which the prescribed person is the trustee are not obtained from such operation; (d)a designated person; (e)an approved company under section 13O of the Act which, at all times during the basis period for the year of assessment (being a year of assessment prior to the year of assessment 2020) for which the income of a prescribed person is exempt from tax under section 13D of the Act —
beneficially owns directly, 100% of the total value of all issued securities of the prescribed person or the total value of the trust fund for which the prescribed person is the trustee, as the case may be; and
satisfies the conditions in regulation 3(2) of the Section 13O SL;
(ea)an approved company under section 13O of the Act which — at all times during the basis period for the year of assessment (being the year of assessment 2020 or any subsequent year of assessment) for which the income of a prescribed person is exempt from tax under section 13D of the Act — satisfies the conditions in regulation 3(2) of the Section 13O SL (whichever is applicable), and for this purpose a reference in those conditions to “the year of assessment in question” is to the year of assessment for which income of the prescribed person is exempt from tax under section 13D of the Act;
an approved person under section 13U of the Act which, at all times during the basis period for the year of assessment for which the income of a prescribed person is exempt from tax under section 13D of the Act —
[Deleted by S 644/2013 wef 01/04/2009](ii)satisfies the conditions in regulation 3(2) of the Section 13U SL;
in relation to an approved master-feeder fund structure —
a person (not being an individual, a body of persons or a Hindu joint family) that is an approved master fund or an approved feeder fund of the structure;
a partner of a partnership (including a limited partnership and a limited liability partnership), where the partnership is the approved master fund or an approved feeder fund of the structure;
a trustee of a trust fund where the trust fund is the approved master fund or an approved feeder fund of the structure; or
a taxable entity in relation to the approved master fund or an approved feeder fund of the structure, where the master fund or feeder fund is not a legal entity,if the conditions in regulation 3A(2) of the Section 13U SL (whichever is applicable) are satisfied, and for this purpose a reference in those conditions to “that year of assessment” is to the year of assessment for which income of the prescribed person is exempt from tax under section 13D of the Act;
in relation to an approved master-feeder fund-SPV structure —
a company, a trustee of a trust fund or a partner of a limited partnership, where the company, trust fund or limited partnership (as the case may be) is the approved master fund or an approved feeder fund of the structure;
(ia)a person (not being a company, an individual or a Hindu joint family) that is an approved feeder fund of the structure;
(ib)a partner of a partnership (excluding a limited partnership but including a limited liability partnership), where the partnership is an approved feeder fund of the structure;
a taxable entity in relation to an approved feeder fund of the structure, where the approved feeder fund is not a legal entity;
an approved 1st tier SPV of the structure;
an approved 2nd tier SPV of the structure;
an approved eligible SPV of the structure, where the approved eligible SPV is not one mentioned in sub-paragraph (v), (vi) or (vii);
a partner of an approved eligible SPV of the structure, where the approved eligible SPV is a partnership (including a limited partnership and a limited liability partnership);
the trustee of an approved eligible SPV of the structure, where the approved eligible SPV is a trust fund; or
the taxable entity in relation to an approved eligible SPV of the structure, where the approved eligible SPV is not a legal entity,if the conditions in regulation 3B(2) of the Section 13U SL (whichever is applicable) are satisfied, and for this purpose a reference in those conditions to “that year of assessment” is to the year of assessment for which income of the prescribed person is exempt from tax under section 13D of the Act; or
in relation to an approved master fund-SPV structure —
a company, a trustee of a trust fund or a partner of a limited partnership, where the company, trust fund or limited partnership (as the case may be) is the approved master fund of the structure;
an approved 1st tier SPV of the structure;
an approved 2nd tier SPV of the structure;
an approved eligible SPV of the structure, where the approved eligible SPV is not one mentioned in sub-paragraph (v), (vi) or (vii);
a partner of an approved eligible SPV of the structure, where the approved eligible SPV is a partnership (including a limited partnership and a limited liability partnership);
the trustee of an approved eligible SPV of the structure, where the approved eligible SPV is a trust fund; or
the taxable entity in relation to an approved eligible SPV of the structure, where the approved eligible SPV is not a legal entity,if the conditions in regulation 3C(2) of the Section 13U SL (whichever is applicable) are satisfied, and for this purpose a reference in those conditions to “that year of assessment” is to the year of assessment for which income of the prescribed person is exempt from tax under section 13D of the Act.
Subregulation 1A
Section 13D(2) of the Act does not apply to a relevant owner in relation to a prescribed person who derives, in the basis period for the year of assessment 2020 or a subsequent year of assessment, specified income from designated investments arising from funds of a managed account, where the prescribed person is —
the holder or one of the holders of the managed account; and
either —
a bona fide entity that is a company, in relation to which all the following are satisfied at all times during the basis period for the year of assessment:
the company is not resident in Singapore;
the company does not have a permanent establishment in Singapore (other than a fund manager);
the company does not carry on a business in Singapore;
the income of the company is not derived from any tax-exempt investment; or
a designated person.
Subregulation 1B
In a case where the prescribed person is a trustee of a designated unit trust constituted on or after 1 April 2019, section 13D(4) and (6) of the Act does not apply to a relevant beneficiary and liable person, respectively, of the designated unit trust for the first 2 years of assessment of the trustee.
Subregulation 2
Section 13D(6) of the Act shall not apply to a liable person referred to in that provision if the person is —
an individual;
a bona fide entity not resident in Singapore who does not have a permanent establishment in Singapore (other than a fund manager) and does not carry on a business in Singapore;
a bona fide entity not resident in Singapore (excluding a permanent establishment in Singapore) who carries on an operation in Singapore through a permanent establishment in Singapore where the funds used by the entity to invest directly or indirectly in the prescribed person or the trust fund for which the prescribed person is the trustee are not obtained from such operation; (d)a designated person; (e)an approved company under section 13O of the Act which, at all times during the basis period for the year of assessment (being a year of assessment prior to the year of assessment 2020) for which the income of a prescribed person is exempt from tax under section 13D of the Act —
beneficially owns directly, 100% of the total value of all issued securities of the prescribed person or the total value of the trust fund for which the prescribed person is the trustee, as the case may be; and
satisfies the conditions in regulation 3(2) of the Section 13O SL;
(ea)an approved company under section 13O of the Act which — at all times during the basis period for the year of assessment (being a year of assessment on or after the year of assessment 2020) for which the income of a prescribed person is exempt from tax under section 13D of the Act — satisfies the conditions in regulation 3(2) of the Section 13O SL (whichever is applicable), and for this purpose a reference in those conditions to “year of assessment in question” is to the year of assessment for which income of the prescribed person is exempt from tax under section 13D of the Act;
an approved person under section 13U of the Act which, at all times during the basis period for the year of assessment for which the income of the prescribed person is exempt from tax under section 13D of the Act —
[Deleted by S 644/2013 wef 01/04/2009](ii)satisfies the conditions in regulation 3(2) of the Section 13U SL;
in relation to an approved master-feeder fund structure —
a person (not being an individual, a body of persons or a Hindu joint family) that is the approved master fund or an approved feeder fund of the structure;
a partner of a partnership (including a limited partnership and a limited liability partnership), where the partnership is the approved master fund or an approved feeder fund of the structure;
a trustee of a trust fund where the trust fund is the approved master fund or an approved feeder fund of the structure; or
a taxable entity in relation to the approved master fund or an approved feeder fund of the structure, where the approved master fund or approved feeder fund (as the case may be) is not a legal entity,if the conditions in regulation 3A(2) of the Section 13U SL (whichever is applicable) are satisfied, and for this purpose a reference in those conditions to “that year of assessment” is to the year of assessment for which income of the prescribed person is exempt from tax under section 13D of the Act;
in relation to an approved master-feeder fund-SPV structure —
a company, a trustee of a trust fund or a partner of a limited partnership, where the company, trust fund or limited partnership (as the case may be) is the approved master fund or an approved feeder fund of the structure;
(ia)a person (not being a company, an individual or a Hindu joint family) that is an approved feeder fund of the structure;
(ib)a partner of a partnership (excluding a limited partnership but including a limited liability partnership), where the partnership is an approved feeder fund of the structure;
a taxable entity in relation to an approved feeder fund of the structure where the approved feeder fund is not a legal entity;
an approved 1st tier SPV of the structure;
an approved 2nd tier SPV of the structure;
an approved eligible SPV of the structure, where the approved eligible SPV is not one mentioned in sub-paragraph (v), (vi) or (vii);
a partner of an approved eligible SPV of the structure, where the approved eligible SPV is a partnership (including a limited partnership and a limited liability partnership);
the trustee of an approved eligible SPV of the structure, where the approved eligible SPV is a trust fund; or
the taxable entity in relation to an approved eligible SPV of the structure, where the approved eligible SPV is not a legal entity,if the conditions in regulation 3B(2) of the Section 13U SL (whichever is applicable) are satisfied, and for this purpose a reference in those conditions to “that year of assessment” is to the year of assessment for which income of the prescribed person is exempt from tax under section 13D of the Act; or
in relation to an approved master fund-SPV structure —
a company, a trustee of a trust fund or a partner of a limited partnership, where the company, trust fund or limited partnership (as the case may be) is the approved master fund of the structure;
an approved 1st tier SPV of the structure;
an approved 2nd tier SPV of the structure;
an approved eligible SPV of the structure, where the approved eligible SPV is not one mentioned in sub-paragraph (v), (vi) or (vii);
a partner of an approved eligible SPV of the structure, where the approved eligible SPV is a partnership (including a limited partnership and a limited liability partnership);
the trustee of an approved eligible SPV of the structure, where the approved eligible SPV is a trust fund; or
the taxable entity in relation to an approved eligible SPV of the structure, where the approved eligible SPV is not a legal entity,if the conditions in regulation 3C(2) of the Section 13U SL (whichever is applicable) are satisfied, and for this purpose a reference in those conditions to “that year of assessment” is to the year of assessment for which income of the prescribed person is exempt from tax under section 13D of the Act.
Subregulation 3
For the purposes of section 13D(2), (4) and (6) of the Act and regulation 2(7), where the issued securities, value of trust fund or equity interest, as the case may be, is held by a trustee of a trust, the relevant owner, relevant beneficiary or person shall be the beneficiary of the trust administered by the trustee.
Subregulation 4
For the purposes of paragraph (3), if a person is a beneficiary of a trust (referred to in this paragraph as a first level trust entity) whose trustee holds (including by virtue of one or more applications of this paragraph), in its capacity as trustee of the first level trust entity, interests of another trust (referred to in this paragraph as a second level trust entity), then the person is taken to beneficially own interests of the second level trust entity; and the percentage which the value of those interests bears to the total value of all interests of the second level trust entity shall be computed in accordance with the following formula:where Ais the percentage which the value of the interest of the first level trust entity beneficially owned by the person bears to the total value of all interests of the first level trust entity; andBis the percentage which the value of the interest of the second level trust entity beneficially owned by the trustee of the first level trust entity bears to the total value of all interests of the second level trust entity.
Subregulation 5
For the purposes of paragraph (1B) —
Definition
“designated unit trust” has the meaning given by section 35(14) of the Act;
Definition
“first 2 years of assessment”, in relation to a trustee of a designated unit trust, means —
the year of assessment relating to the basis period of the trustee during which the designated unit trust is constituted; and
the year of assessment immediately following the year of assessment mentioned in paragraph (a).