Exemption of income arising from funds managed by fund manager in Singapore
13X.—(1)  Subject to such conditions as may be prescribed by regulations or specified in the letter of approval of the person, master fund, feeder fund, master‑feeder fund structure, master‑feeder fund‑SPV structure or master fund‑SPV structure, there shall be exempt from tax such income as the Minister may by regulations prescribe of —
(a)an approved person arising from funds managed in Singapore by a fund manager;
[Act 2 of 2016 wef 01/04/2015]
(b)in relation to an approved master-feeder fund structure —
(i)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;
(ii)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;
(iii)a trustee of a trust fund where the trust fund is the approved master fund or an approved feeder fund of the structure; and
(iv)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,
arising from funds of the master fund or any feeder fund of that structure, that are managed in Singapore by a fund manager;
[Act 45 of 2018 wef 20/02/2018]
(c)in relation to an approved master‑feeder fund‑SPV structure —
(i)a company, a trustee of a trust fund or a partner of a limited partnership, where the company, trust fund or limited partnership 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;
[Act 45 of 2018 wef 20/02/2018]
(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;
[Act 45 of 2018 wef 20/02/2018]
(ic)a taxable entity in relation to an approved feeder fund of the structure, where the feeder fund is not a legal entity;
[Act 45 of 2018 wef 20/02/2018]
(ii)an approved 1st tier SPV of the structure; and
(iii)an approved 2nd tier SPV of the structure,
arising from funds of the master fund or any feeder fund of the structure that are managed in Singapore by a fund manager; or
[Act 2 of 2016 wef 01/04/2015]
(d)in relation to an approved master fund‑SPV structure —
(i)a company, a trustee of a trust fund or a partner of a limited partnership, where the company, trust fund or limited partnership is the approved master fund of the structure;
(ii)an approved 1st tier SPV of the structure; and
(iii)an approved 2nd tier SPV of the structure,
arising from funds of the master fund of the structure that are managed in Singapore by a fund manager.
[Act 2 of 2016 wef 01/04/2015]
[Act 2 of 2016 wef 01/04/2015]
(2)  Approval under subsection (1)(a) may be granted during the period from 1st April 2009 to 31st March 2019 (both dates inclusive).
[27/2009; 29/2010]
[Act 37 of 2014 wef 01/04/2014]
(2A)  Approval under subsection (1)(b) may be granted during the period from 7th July 2010 to 31st March 2019 (both dates inclusive).
[29/2010]
[Act 37 of 2014 wef 01/04/2014]
(2B)  Approval under subsection (1)(c) and (d) may be granted during the period from 1 April 2015 to 31 March 2019 (both dates inclusive).
[Act 2 of 2016 wef 01/04/2015]
(3)  Where the income of any approved person or person (including a company), trustee, partner, taxable entity, 1st tier SPV or 2nd tier SPV referred to in subsection (1)(b), (c) or (d) is not exempt from tax under this section, sections 13C, 13CA and 13R shall not apply to that income notwithstanding anything in those provisions.
[27/2009; 29/2010]
[Act 2 of 2016 wef 01/04/2015]
[Act 45 of 2018 wef 20/02/2018]
(4)  Regulations made under subsection (1) may —
(a)provide for the determination of the amount of income of any approved person or person (including a company), trustee, partner, taxable entity, 1st tier SPV or 2nd tier SPV referred to in subsection (1)(b), (c) or (d) to be exempt from tax;
[Act 2 of 2016 wef 01/04/2015]
[Act 45 of 2018 wef 20/02/2018]
(b)provide for the deduction of expenses, allowances and losses of any approved person or person (including a company), trustee, partner, taxable entity, 1st tier SPV or 2nd tier SPV referred to in subsection (1)(b), (c) or (d) otherwise than in accordance with this Act;
[Act 2 of 2016 wef 01/04/2015]
[Act 45 of 2018 wef 20/02/2018]
(c)where the approved person is a partner of an approved partnership (including a limited partnership and a limited liability partnership), provide for the recovery of tax from him in a case where the exemption ought not to have been allowed to that partner due to non-compliance with any condition imposed on the partnership, including the deeming of a specified amount as income of the partner for the year of assessment in which the Comptroller discovers the non‑compliance of the condition;
[Act 45 of 2018 wef 20/02/2018]
(ca)provide for the recovery of tax from a person (including a company), trustee, taxable entity, 1st tier SPV or 2nd tier SPV referred to in subsection (1)(b), (c) or (d) in a case where the exemption ought not to have been allowed to the person due to non‑compliance with any condition imposed on the approved master‑feeder fund structure, approved master‑feeder fund‑SPV structure or approved master fund‑SPV structure, as the case may be;
[Act 2 of 2016 wef 01/04/2015]
[Act 45 of 2018 wef 20/02/2018]
(cb)provide for the recovery of tax from a partner of a partnership (including a limited partnership and a limited liability partnership) referred to in subsection (1)(b), (c) or (d) in a case where the exemption ought not to have been allowed to that partner due to non‑compliance with any condition imposed on the approved master‑feeder fund structure, approved master‑feeder fund‑SPV structure or approved master fund‑SPV structure (as the case may be), including the deeming of a specified amount as income of the partner for the year of assessment in which the Comptroller discovers the non‑compliance with the condition; and
[Act 2 of 2016 wef 01/04/2015]
[Act 45 of 2018 wef 20/02/2018]
(d)make provision generally for giving full effect to or for carrying out the purposes of this section.
[27/2009; 29/2010; 29/2012]
(5)  In this section —
“1st tier SPV”, in relation to a master‑feeder fund‑SPV structure or a master fund‑SPV structure, means a special purpose vehicle wholly owned by the master fund of the structure;
[Act 2 of 2016 wef 01/04/2015]
“2nd tier SPV”, in relation to a master‑feeder fund‑SPV structure or a master fund‑SPV structure, means a special purpose vehicle wholly owned by a 1st tier SPV of the structure;
[Act 2 of 2016 wef 01/04/2015]
“approved” means approved by the Minister or such person as he may appoint;
[Deleted by Act 37 of 2014 wef 01/09/2014]
“approved person” means —
(a)any approved person (not being an individual, a body of persons or a Hindu joint family);
(b)any partner of an approved partnership (including a limited partnership and a limited liability partnership);
(c)any trustee of an approved trust fund; or
(d)the taxable entity of an approved investment vehicle that is not a legal entity;
[Act 45 of 2018 wef 20/02/2018]
“designated unit trust” means any designated unit trust within the meaning of section 35(14) and whose income does not form part of the statutory income of its trustee by reason of section 35(12);
[Act 2 of 2016 wef 01/09/2014]
“feeder fund” means an investment vehicle (whether or not a legal entity) that invests its funds, or whose funds are invested, substantially and directly through a single master fund;
[Act 45 of 2018 wef 20/02/2018]
“master-feeder fund structure” means an arrangement comprising one or more feeder funds and the master fund through which the funds of the feeder fund or funds are substantially and directly invested;
[Act 2 of 2016 wef 01/04/2015]
“master-feeder fund-SPV structure” means an arrangement comprising —
(a)one or more feeder funds;
(b)the master fund through which the funds of the feeder fund or funds are substantially and directly invested; and
(c)one or more SPVs;
[Act 2 of 2016 wef 01/04/2015]
“master fund-SPV structure” means an arrangement comprising —
(a)a master fund; and
(b)one or more SPVs;
[Act 2 of 2016 wef 01/04/2015]
“master fund”  —
(a)in relation to a master fund-SPV structure or master-feeder fund-SPV structure, means a company, a trust fund or a limited partnership; or
(b)in relation to a master-feeder fund structure, means an investment vehicle (whether or not a legal entity),
that enables investors to invest funds in one or more underlying investments that are managed by a fund manager;
[Act 45 of 2018 wef 20/02/2018]
“real estate investment trust” has the same meaning as in section 43(10);
“special purpose vehicle” or “SPV” —
(a)in relation to a master-feeder fund-SPV structure, means a company whose only activity is the holding of investments of the master and feeder funds of the structure; or
(b)in relation to a master fund-SPV structure, means a company whose only activity is the holding of investments of the master fund of the structure;
[Act 2 of 2016 wef 01/04/2015]
“taxable entity”, in relation to an investment vehicle (including a master fund and a feeder fund) that is not a legal entity, means the person to whom income from the investment vehicle accrues;
[Act 45 of 2018 wef 20/02/2018]
“trust fund” does not include any trust that is a pension or provident fund approved by the Comptroller under section 5, designated unit trust and real estate investment trust.
[27/2009; 29/2010]
[Act 37 of 2014 wef 01/09/2014]
(6)  The following approvals may only be granted on or after 20 February 2018:
(a)the approval, for the purposes of the definition of “approved person” in subsection (5), of —
(i)a person other than a company;
(ii)a partnership, including a limited liability partnership but excluding a limited partnership; or
(iii)an investment vehicle that is not a legal entity (other than a trust fund);
(b)the approval, for the purpose of subsection (1)(b), of any of the following as a master fund or feeder fund:
(i)a person that is not a company;
(ii)a partnership, including a limited liability partnership but excluding a limited partnership;
(iii)an investment vehicle that is not a legal entity (other than a trust fund);
(c)the approval, for the purpose of subsection (1)(c), of any of the following as a feeder fund:
(i)a person that is not a company;
(ii)a partnership, including a limited liability partnership but excluding a limited partnership;
(iii)an investment vehicle that is not a legal entity (other than a trust fund).
[Act 45 of 2018 wef 20/02/2018]
Singapore Statutes Online
© 2024 Attorney-General's Chambers of Singapore,
Last updated 2 May 2024
Singapore Statutes Online is provided by the Legislation Division of the Attorney-General's Chambers of Singapore.