3. Section 10 of the principal Act is amended —(a) | by deleting paragraphs (a) and (b) of subsection (4) and substituting the following paragraphs:“(a) | a Singapore ship which is owned by a shipping enterprise within the meaning of section 13A at the time the balancing charge falls to be made in respect of the Singapore ship, but only up to the amount ascertained in accordance with the formula , | is the amount of allowances under section 19 made to the enterprise in respect of the Singapore ship against any income exempt from tax under section 13A; |
| | is the total amount of allowances under section 19 or 19A which have been made in respect of the ship during the period it is owned by the enterprise; and |
| | is the amount of balancing charge; |
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| (b) | a foreign ship the income derived from the operation of which would be income of an approved international shipping enterprise within the meaning of section 13F, but only up to the amount ascertained in accordance with the formula , | is the amount of allowances under section 19 or 19A made to the enterprise in respect of the foreign ship against any income exempt from tax under section 13F; |
| | is the total amount of allowances under section 19 or 19A which have been made in respect of the ship during the period it is owned by the enterprise; and |
| | is the amount of balancing charge.”; |
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| (b) | by inserting, immediately after subsection (11), the following subsections:“(11A) Any distribution made by a designated unit trust to any unit holder out of —(a) | gains or profits derived from Singapore or elsewhere from the disposal of securities; | (b) | interest (other than interest for which tax has been deducted under section 45); and | (c) | dividends derived from outside Singapore and received in Singapore, |
which do not form part of the statutory income of the designated unit trust by virtue of section 35(7A) shall, subject to subsection (11B), be deemed to be income of the unit holder if he is not a foreign investor. |
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(11B) Where any distribution made out of gains or profits referred to in subsection (11A)(a) is made to a unit holder who is an individual resident in Singapore, only an amount equal to 10% of the distribution shall be deemed to be income of that unit holder. |
(11C) Where a designated unit trust had also been approved under section 10B, any distribution made by the designated unit trust out of any income (including gains or profits from the disposal of securities) derived by it during the period the designated unit trust was approved under section 10B shall be treated as income of a unit holder in accordance with sections 10(11) and 35 (7) and (8). |
(11D) For the purpose of subsections (11A), (11B) and (11C) —“designated unit trust” means any unit trust designated under section 35(7C); |
“foreign investor” —(a) | in relation to an individual, means an individual who is not resident in Singapore; | (b) | in relation to a company, means a company which is not resident in Singapore and —(i) | in the case of a company with not more than 50 shareholders, the whole of its issued capital is beneficially owned, directly or indirectly, by persons who are not citizens of Singapore and not resident in Singapore; and | (ii) | in the case of a company with more than 50 shareholders, not less than 80% of its issued capital is beneficially owned, directly or indirectly, by persons who are not citizens of Singapore and not resident in Singapore; and |
| (c) | in relation to a trust fund, means a trust fund where at least 80% of the value of the fund is beneficially held, directly or indirectly, by foreign investors referred to in paragraph (a) or (b) and, unless waived by the Minister or such other person as he may appoint, where —(i) | the fund is created outside Singapore; and | (ii) | the trustees of the fund are neither citizens of Singapore nor resident in Singapore and”; and |
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| (c) | by inserting, immediately after subsection (12), the following subsection:“(13) It is hereby declared for the avoidance of doubt that the amounts described in the following paragraphs shall be income received in Singapore from outside Singapore whether or not the source from which the income is derived has ceased:(a) | any amount from any income derived from outside Singapore which is remitted to, transmitted or brought into, Singapore; | (b) | any amount from any income derived from outside Singapore which is applied in or towards satisfaction of any debt incurred in respect of a trade or business carried on in Singapore; and | (c) | any amount from any income derived from outside Singapore which is applied to purchase any movable property which is brought into Singapore.”. |
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