Income Tax (Income from Funds Managed for Foreign Investors) (Amendment No. 2) Regulations 2005

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Published in Subsidiary Legislation Supplement
on 07 Dec 2005

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No. S 785

Income Tax Act

(Chapter 134)

Income Tax (Income from Funds Managed for Foreign Investors) (Amendment No. 2) Regulations 2005

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. These Regulations may be cited as the Income Tax (Income from Funds Managed for Foreign Investors) (Amendment No. 2) Regulations 2005 and shall be deemed to have come into operation on 18th February 2005.

Amendment of regulation 2

2. Regulation 2 of the Income Tax (Income from Funds Managed for Foreign Investors) Regulations 2003 (G.N. No. S 640/2003) is amended —

(a)

by inserting, immediately after the definition of “Approved Securities Company”, the following definition:

“ “approved start-up fund manager” means a start-up fund manager approved under paragraph (4);”; and

(b)

by renumbering the regulation as paragraph (1) of that regulation, and by inserting immediately thereafter the following paragraphs:

“(2) The requirement in paragraph (b) of the definition of “foreign investor” in paragraph (1) relating to beneficial ownership of issued share capital of a company does not apply to a fund constituted as a company not resident in Singapore, for a period of 12 months from the date of its incorporation if —

(a)	the company is incorporated at any time between 18th February 2005 and 17th February 2010 (both dates inclusive);
(b)	the date of its incorporation is stated in its charter, statute or memorandum and articles or other instrument constituting it or defining its constitution;
(c)	it was incorporated by a fund manager who was an approved start-up fund manager at the time of incorporation;
(d)	it has been managed by that fund manager since its incorporation; and
(e)	it is not incorporated with the avoidance or reduction of tax chargeable under the Act as its main purpose or one of its main purposes.

(3) The requirement in paragraph (c) of the definition of “foreign investor” in paragraph (1) relating to beneficial holding of the value of a trust fund does not apply to a trust fund for a period of 12 months from the date of its constitution if —

(a)	the fund is constituted at any time between 18th February 2005 and 17th February 2010 (both dates inclusive);
(b)	the date of its constitution is stated in the relevant trust instrument;
(c)	it was constituted by a fund manager who was an approved start-up fund manager at the time of constitution;
(d)	it has been managed by that fund manager since its constitution; and
(e)	it is not constituted with the avoidance or reduction of tax chargeable under the Act as its main purpose or one of its main purposes.

(4) For the purposes of paragraphs (2) and (3), the Minister or such person as he may appoint may approve a fund manager as an approved start-up fund manager, and such approval shall be for a period not exceeding 3 years.”.

Amendment of regulation 5

3. Regulation 5 of the Income Tax (Income from Funds Managed for Foreign Investors) Regulations 2003 is amended by inserting, immediately after the words “other than an individual”, the words “, a fund referred to in regulation 2 (2) or a trust fund referred to in regulation 2 (3)”.

[G.N. No. S 591/2005]

Made this 5th day of December 2005.

CHAN LAI FUNG

Acting Permanent Secretary,
Ministry of Finance,
Singapore.

[MF (R) 32.019.0004 V18; AG/LEG/SL/134/2005/9 Vol. 1]