Search within Legislation

Search Results

No. S 481

Income Tax Act

(Chapter 134)

Income Tax (Income from Funds Managed for Foreign Investors) (Amendment) Regulations 1999

In exercise of the powers conferred by section 13C of the Income Tax Act, the Minister for Finance hereby makes the following Regulations:

Citation and commencement

1.—(1) These Regulations may be cited as the Income Tax (Income from Funds Managed for Foreign Investors) (Amendment) Regulations 1999.

(2) Regulation 2(b), (c) and (f) of these Regulations shall have effect for the year of assessment 1998 and subsequent years of assessment.

(3) Regulations 2 (d) and (e) and 4 of these Regulations shall have effect for the year of assessment 1999 and subsequent years of assessment.

(4) Regulations 2 (a), 3 and 5 of these Regulations shall have effect for the year of assessment 2000 and subsequent years of assessment.

Amendment of regulation 2

2. Regulation 2 of the Income Tax (Income from Funds Managed for Foreign Investors) Regulations (Rg 8) (referred to in these Regulations as the principal Regulations) is amended —

(a)

by inserting, immediately before the definition of “approved securities company”, the following definition:

“ “approved fund manager” means any Asian Currency Unit or fund manager approved under section 13C or 43A of the Act;”;

(b)

by deleting the word “and” at the end of paragraph (k) of the definition of “designated investments”;

(c)

by inserting, at the end of paragraph (l) of the definition of “designated investments”, the word “and”, and by inserting immediately thereafter the following paragraph:

“(m)	units in any unit trust which invests wholly in designated investments;”;

(d)

by inserting, immediately after the definition of “designated investments”, the following definition:

“ “designated person” means the Government of Singapore Investment Corporation Pte Ltd, any statutory board or any company which is wholly owned, directly or indirectly, by the Minister (in his capacity as a corporation established under the Minister for Finance (Incorporation) Act (Cap.183)) and which is approved by the Minister or such person as he may appoint;”;

(e)

by deleting the definition of “foreign investor” and substituting the following definition:

“ “foreign investor” —

(a)	in relation to an individual, means an individual who is not resident in Singapore and not a citizen of Singapore and who is the beneficial owner of the funds managed by an approved fund manager;
(b)	in relation to a company, means a company not resident in Singapore where not more than 20% (excluding the total percentage owned directly by designated persons) of its issued share capital is beneficially owned, directly or indirectly, by persons who are citizens of Singapore or resident in Singapore; and
(c)	in relation to a trust fund, means a trust fund where not more than 20% (excluding the total percentage held directly by designated persons) of the value of the fund is beneficially held, directly or indirectly, by persons who are not foreign investors referred to in paragraph (a) or (b);”; and

(f)

by deleting the full-stop at the end of paragraph (f) of the definition of “specified income” and substituting a semi-colon, and by inserting immediately thereafter the following definitions:

“ “unit” means a right or interest (whether described as a unit, a sub-unit or otherwise) which may be acquired under a unit trust;

“unit trust” means any trust established for the purpose, or having the effect, of providing facilities for the participation by persons as beneficiaries under a trust, in profits or income arising from the acquisition, management or disposal of securities or any other property.”.

Amendment of regulation 3

3. Regulation 3 of the principal Regulations is amended by deleting the words “Fund Manager specially” in paragraph (b) and substituting the words “fund manager”.

Amendment of regulation 4

4. Regulation 4 of the principal Regulations is amended —

(a)

by deleting the word “conditions” in the 5th line of sub-paragraphs (a) and (b) of paragraph (1) and substituting in each case the word “condition”; and

(b)

by deleting paragraphs (2) and (3) and substituting the following paragraphs:

“(2) The condition mentioned in paragraph (1) is that not less than 80% of the issued capital of the associated company is beneficially owned, directly or indirectly, by persons who are not citizens of Singapore and not resident in Singapore.

(3) The Minister or such person as he may appoint may waive the condition mentioned in paragraph (2).”.

Amendment of regulation 6

5. Regulation 6 of the principal Regulations is amended —

(a)	by deleting the words “Asian Currency Unit, Fund Manager” in paragraph (a) and substituting the words “approved fund manager”; and
(b)	by deleting “43A (1),” in paragraph (a).

Made this 28th day of October 1999.

LIM SIONG GUAN

Permanent Secretary,
Ministry of Finance,
Singapore.

[R32.19.04 Pt B T1; AG/LEG/SL/134/97/9 Vol. 1]