Exemption of relevant income of prescribed locally administered trust
13Q.—(1) There shall be exempt from tax all relevant income of —
(a)
such locally administered trust as the Minister may by regulations prescribe; and
(b)
a holding company established for the purposes of such trust, as the Minister may by regulations prescribe.
[7/2007]
(2) Where any relevant income of a prescribed locally administered trust is exempt from tax under subsection (1) in any year of assessment, the share of such income to which any beneficiary of the locally administered trust is entitled to receive for that year of assessment shall also be exempt from tax.
[7/2007]
(3) In this section —
“locally administered trust” means a trust administered by a trustee company in Singapore —
(a)
every settlor of which is an individual;
(b)
every beneficiary of which is an individual or a charitable institution, trust or body of persons established for charitable purposes only; and
(c)
at least one of the beneficiaries of which is not a settlor of the trust;
“relevant income” means —
(a)
any income of the kinds referred to in section 13(1)(zd), (ze), (zf), (zh), (zi), (zj), (zk) or (zl) accrued in or derived from Singapore on or after 17th February 2006; or
(b)
any income of the kinds referred to in section 13(7A) received in Singapore on or after 17th February 2006 excluding, in respect of a prescribed locally administered trust, any dividend received by the trust from a prescribed holding company not resident in Singapore, if the dividend is paid out of income that is not the relevant income of the holding company;
“trustee company” has the same meaning as in section 43J(2).
[7/2007; 53/2007]
Informal Consolidation | Amended Act 39 of 2017
Exemption of relevant income of prescribed locally administered trust
13Q.—(1) There shall be exempt from tax all relevant income of —
(a)
such locally administered trust as the Minister may by regulations prescribe; and
(b)
a holding company established for the purposes of such trust, as the Minister may by regulations prescribe.
[7/2007]
(2) Where any relevant income of a prescribed locally administered trust is exempt from tax under subsection (1) in any year of assessment, the share of such income to which any beneficiary of the locally administered trust is entitled to receive for that year of assessment shall also be exempt from tax.
[7/2007]
(3) In this section —
“locally administered trust” means a trust administered by a trustee company in Singapore —
(a)
every settlor of which is an individual;
(b)
every beneficiary of which is an individual or a charitable institution, trust or body of persons established for charitable purposes only; and
(c)
at least one of the beneficiaries of which is not a settlor of the trust;
“relevant income” means —
(a)
any income of the kinds referred to in section 13(1)(zd), (ze), (zf), (zh), (zi), (zj), (zk) or (zl) accrued in or derived from Singapore on or after 17th February 2006; or
(b)
any income of the kinds referred to in section 13(7A) received in Singapore on or after 17th February 2006 excluding, in respect of a prescribed locally administered trust, any dividend received by the trust from a prescribed holding company not resident in Singapore, if the dividend is paid out of income that is not the relevant income of the holding company;
“trustee company” has the same meaning as in section 43J(2).
[7/2007; 53/2007]
(4) This section shall not apply to —
(a)
a trust that is constituted on or after 1st April 2019;
(b)
a company that is incorporated on or after 1st April 2019;
(c)
a trust that —
(i)
is constituted before 1st April 2019; and
(ii)
in the basis period in which 31st March 2019 falls, is not a locally administered trust prescribed under subsection (1) (referred to in this subsection and subsection (6) as a prescribed trust); or
(d)
a company that —
(i)
is incorporated before 1st April 2019; and
(ii)
in the basis period in which 31st March 2019 falls, is not a holding company established for the purposes of a prescribed trust, and prescribed under subsection (1).
[Act 37 of 2014 wef 01/04/2014]
(5) Where, in any basis period beginning on or after 1st April 2019, a trust or company does not satisfy the requirement referred to in subsection (6), then this section shall not apply to the trust or company for the year of assessment to which that basis period relates, and for every subsequent year of assessment even if the requirement is satisfied in the basis period for the subsequent year of assessment.
[Act 37 of 2014 wef 01/04/2014]
(6) In subsection (5), the requirement is —
(a)
in the case of the trust, that it is a prescribed trust; or
(b)
in the case of the company, that it is a holding company established for the purposes of a prescribed trust, and prescribed under subsection (1).
[Act 37 of 2014 wef 01/04/2014]
(7) Where, in any basis period beginning on or after 1st April 2019, the trustee company which administers a locally administered trust fails to comply with any of the regulations made under subsection (1), then this section shall not apply to the trust or the holding company established for the purposes of the trust for the year of assessment to which that basis period relates, and for every subsequent year of assessment even if those regulations are satisfied in the basis period for the subsequent year of assessment.