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, SPV, 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;
[Act 32 of 2019 wef 19/02/2019]
(iii)an approved 2nd tier SPV of the structure;
[Act 32 of 2019 wef 19/02/2019]
(iv)an approved eligible SPV of the structure, where the eligible SPV is not one mentioned in sub‑paragraphs (v), (vi) and (vii);
[Act 32 of 2019 wef 19/02/2019]
(v)a partner of an approved eligible SPV of the structure, where the eligible SPV is a partnership (including a limited partnership and a limited liability partnership);
[Act 32 of 2019 wef 19/02/2019]
(vi)the trustee of an approved eligible SPV of the structure, where the eligible SPV is a trust fund; and
[Act 32 of 2019 wef 19/02/2019]
(vii)the taxable entity of an approved eligible SPV of the structure, where the eligible SPV is not a legal entity,
arising from funds of —
(viii)the master fund;
(ix)any feeder fund; or
(x)any approved eligible SPV,
of that structure, that are managed in Singapore by a fund manager; or
[Act 2 of 2016 wef 01/04/2015]
[Act 32 of 2019 wef 19/02/2019]
[Act 33 of 2022 wef 19/02/2019]
(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;
[Act 32 of 2019 wef 19/02/2019]
(iii)an approved 2nd tier SPV of the structure;
[Act 32 of 2019 wef 19/02/2019]
(iv)an approved eligible SPV of the structure, where the eligible SPV is not one mentioned in sub‑paragraphs (v), (vi) and (vii);
[Act 32 of 2019 wef 19/02/2019]
(v)a partner of an approved eligible SPV of the structure, where the eligible SPV is a partnership (including a limited partnership and a limited liability partnership);
[Act 32 of 2019 wef 19/02/2019]
(vi)the trustee of an approved eligible SPV of the structure, where the eligible SPV is a trust fund; and
[Act 32 of 2019 wef 19/02/2019]
(vii)the taxable entity of an approved eligible SPV of the structure, where the eligible SPV is not a legal entity,
arising from funds of the master fund or of any approved eligible SPV of that structure, that are managed in Singapore by a fund manager.
[Act 2 of 2016 wef 01/04/2015]
[Act 32 of 2019 wef 19/02/2019]
[Act 33 of 2022 wef 19/02/2019]
(2)  Approval under subsection (1)(a) may be granted during the period from 1st April 2009 to 31st December 2024 (both dates inclusive).
[27/2009; 29/2010]
[Act 37 of 2014 wef 01/04/2014]
[Act 32 of 2019 wef 19/02/2019]
(2A)  Approval under subsection (1)(b) may be granted during the period from 7th July 2010 to 31st December 2024 (both dates inclusive).
[29/2010]
[Act 37 of 2014 wef 01/04/2014]
[Act 32 of 2019 wef 19/02/2019]
(2B)  Approval under subsection (1)(c)(i) and (d)(i) may be granted during the period from 1 April 2015 to 31 December 2024 (both dates inclusive).
[Act 32 of 2019 wef 19/02/2019]
(2C)  Approval under subsection (1)(c)(ia), (ib) and (ic) may be granted during the period from 20 February 2018 to 31 December 2024 (both dates inclusive).
[Act 32 of 2019 wef 19/02/2019]
(2D)  Approval under subsection (1)(c)(ii) and (iii) and (d)(ii) and (iii) may be granted during the period from 1 April 2015 to 18 February 2019 (both dates inclusive).
[Act 32 of 2019 wef 19/02/2019]
(2E)  Approval under subsection (1)(c)(iv), (v), (vi) and (vii) and (d)(iv), (v), (vi) and (vii) may be granted during the period from 19 February 2019 to 31 December 2024 (both dates inclusive).
[Act 32 of 2019 wef 19/02/2019]
(3)  Where the income of any approved person or person (including a company), trustee, partner, taxable entity, 1st tier SPV, 2nd tier SPV or eligible 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]
[Act 32 of 2019 wef 19/02/2019]
(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, 2nd tier SPV or eligible 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]
[Act 32 of 2019 wef 19/02/2019]
(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, 2nd tier SPV or eligible 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]
[Act 32 of 2019 wef 19/02/2019]
(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, 2nd tier SPV or eligible 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]
[Act 32 of 2019 wef 19/02/2019]
(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]
“eligible SPV”, in relation to a master-feeder fund-SPV structure or a master fund-SPV structure, means a special purpose vehicle where the net gains, profits or other benefits of all investments held by the vehicle are to go (whether directly or indirectly) to the master fund of the structure, or the master fund and one or more of the following:
(a)a prescribed person under section 13CA;
(b)an approved company under section 13R;
(c)an approved person, or an approved master fund, an approved feeder fund, an approved 1st tier SPV, an approved 2nd tier SPV or an approved eligible SPV of any structure mentioned in subsection (1);
(d)a prescribed sovereign fund entity or an approved foreign government-owned entity under section 13Y;
(e)a person (excluding an individual and a Hindu joint family) —
(i)that is not resident in Singapore;
(ii)that does not have a permanent establishment in Singapore (other than a fund manager);
(iii)that does not carry on a business in Singapore;
(iv)that is not set up solely for the purpose of avoiding or reducing the payment of any tax or penalty under this Act; and
(v)that carries on outside Singapore substantial business activity for a genuine commercial reason;
(f)a trust fund —
(i)the trustee of which is not resident in Singapore or a citizen of Singapore;
(ii)the trustee of which does not (in its capacity as such trustee) have a permanent establishment in Singapore other than a fund manager for that trust fund;
(iii)the trustee of which does not carry on any business in Singapore other than acting as such trustee;
(iv)the trustee of which (in its capacity as such trustee) carries on outside Singapore substantial business activity for a genuine commercial reason; and
(v)that is not set up solely for the purpose of avoiding or reducing the payment of any tax or penalty under this Act;
(g)a partnership (including a limited partnership and a limited liability partnership) —
(i)none of the partners of which is resident in Singapore;
(ii)that does not have a permanent establishment in Singapore (other than a fund manager);
(iii)that does not carry on a business in Singapore;
(iv)that is not set up solely for the purpose of avoiding or reducing the payment of any tax or penalty under this Act; and
(v)that carries on outside Singapore substantial business activity for a genuine commercial reason;
(h)an investment vehicle that is not a legal person —
(i)the taxable entity of which is the custodian of investments held by it;
(ii)the taxable entity of which is not a resident in Singapore or a citizen of Singapore;
(iii)the taxable entity of which (in its capacity as custodian of investments held by the investment vehicle) does not have a permanent establishment in Singapore other than a fund manager for that investment vehicle;
(iv)the taxable entity of which does not carry on any business in Singapore other than acting as such custodian;
(v)the taxable entity of which carries on outside Singapore substantial business activity for a genuine commercial reason; and
(vi)that is not set up solely for the purpose of avoiding or reducing the payment of any tax or penalty under this Act;
[Act 32 of 2019 wef 19/02/2019]
“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 an investment vehicle whose only activity is the holding of investments for other investment vehicles or persons which must include the master and feeder funds of the structure; or
(b)in relation to a master fund-SPV structure, means an investment vehicle whose only activity is the holding of investments for other investment vehicles or persons which must include the master fund of the structure;
[Act 32 of 2019 wef 19/02/2019]
“taxable entity”, in relation to an investment vehicle (including a master fund, a feeder fund and an SPV) 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]
[Act 32 of 2019 wef 19/02/2019]
“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).
[Act 32 of 2019 wef 19/02/2019]
(c)[Deleted by Act 32 of 2019 wef 19/02/2019]
Singapore Statutes Online
© 2024 Attorney-General's Chambers of Singapore,
Last updated 18 Apr 2024
Singapore Statutes Online is provided by the Legislation Division of the Attorney-General's Chambers of Singapore.