3. Regulation 2 of the principal Regulations is amended —(a) | by deleting paragraph (b) of the definition of “designated investments” in paragraph (1) and substituting the following paragraphs:“(b) | in relation to income derived between 17 February 2012 and 20 February 2014 (both dates inclusive), investments specified in Part A of the Second Schedule; and | (c) | in relation to income derived on or after 21 February 2014, investments specified in Part A of the Third Schedule;”; |
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| (b) | by deleting sub-paragraph (iv) of paragraph (b) of the definition of “prescribed person” in paragraph (1) and substituting the following sub-paragraph:“(iv) | has, in aggregate, less than 100% of the value of its issued securities beneficially owned (directly or indirectly) by Singapore persons; and”; |
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| (c) | by deleting the words “less than 100% of the value thereof is beneficially held, directly or indirectly, by Singapore persons collectively” in paragraph (c) of the definition of “prescribed person” in paragraph (1) and substituting the words “the aggregate value of that fund held beneficially (directly or indirectly) by Singapore persons is less than 100%”; | (d) | by deleting the definition of “prescribed person” in paragraph (1) and substituting the following definition:“ “prescribed person” —(a) | in relation to an individual, means an individual who, at all times during the basis period for the year of assessment —(i) | is neither a Singapore citizen nor resident in Singapore; and | (ii) | is the beneficial owner of funds managed in Singapore by any fund manager; |
| (b) | in relation to a company, means a company in relation to which all the following are satisfied at all times during the basis period for the year of assessment:(i) | the company is not resident in Singapore; | (ii) | the company does not have a permanent establishment in Singapore (other than a fund manager); | (iii) | the company does not carry on any business in Singapore; | (iv) | the aggregate value of the company’s issued securities beneficially owned (directly or indirectly) by Singapore persons is less than 100%; | (v) | the income of the company is not derived from any tax‑exempt investment; and |
| (c) | in relation to a trustee of a trust fund, means a trustee of a trust fund in relation to whom all the conditions in sub‑paragraph (i) or (ii) (as the case may be) are satisfied at all times during the basis period for the year of assessment:(i) | in the case of income derived in a basis period that ends at any time before 1 April 2014 —(A) | the trustee is not a resident in Singapore, a Singapore citizen or a permanent establishment in Singapore; | (B) | the trustee does not, in its capacity as trustee of the trust fund, have a permanent establishment in Singapore (other than a fund manager for that trust fund); | (C) | the trustee does not, in its capacity as trustee of the trust fund, carry on any business in Singapore apart from acting as such trustee; | (D) | the income derived by the trustee in its capacity as trustee of the trust fund is not derived from any tax‑exempt investment; and | (E) | the aggregate value of the trust fund beneficially held (directly or indirectly) by Singapore persons is less than 100%; |
| (ii) | in the case of income derived in a basis period other than that mentioned in sub‑paragraph (i) —(A) | the trustee does not, in its capacity as trustee of the trust fund, have a permanent establishment in Singapore (other than a fund manager for that trust fund); | (B) | the trustee does not, in its capacity as trustee of the trust fund, carry on any business in Singapore apart from acting as such trustee; | (C) | the income derived by the trustee in its capacity as trustee of the trust fund is not derived from any tax‑exempt investment; and | (D) | the aggregate value of the trust fund beneficially held (directly or indirectly) by Singapore persons is less than 100%;”; |
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| (e) | by deleting the words “of Approved Persons” in paragraph (c)(ii) of the definition of “Singapore person” in paragraph (1); | (f) | by deleting paragraph (b) of the definition of “specified income” in paragraph (1) and substituting the following paragraphs:“(b) | in relation to income derived between 17 February 2012 and 20 February 2014 (both dates inclusive), income specified in Part B of the Second Schedule; and | (c) | in relation to income derived on or after 21 February 2014, income specified in Part B of the Third Schedule;”; |
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| (g) | by inserting, immediately after the definition of “structured product” in paragraph (1), the following definition:“ “tax-exempt investment” —(a) | in the case of paragraph (b) of the definition of “prescribed person”, means an investment transferred to the company mentioned in that paragraph (other than by way of a sale on market terms and conditions) from a person carrying on business in Singapore, where the income derived by that person from that investment was not, or would not have been if not for the transfer, exempt from tax; and | (b) | in the case of paragraph (c) of the definition of “prescribed person”, means an investment transferred to the trustee of the trust fund mentioned in that paragraph in the trustee’s capacity as such trustee (other than by way of a sale on market terms and conditions) from a person carrying on business in Singapore, where the income derived by that person from that investment was not, or would not have been if not for the transfer, exempt from tax;”; |
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| (h) | by inserting, immediately after the words “described in paragraph (5)” in paragraph (6), the words “, where the relevant day is before 1 April 2014,”; and | (i) | by inserting, immediately after paragraph (6), the following paragraphs:“(6A) Any reference in these Regulations to the value of issued securities of a company of the type described in paragraph (5), where the relevant day is on or after 1 April 2014, is a reference to the net asset value of those securities on the relevant day. |
(6B) In paragraphs (6) and (6A), “relevant day”, in relation to a company, is the last day of the basis period of the company for the year of assessment in question.”. |
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