Income Tax (Concessionary Rate of Tax for Approved Trustee Companies) Regulations

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Income Tax Act

(Chapter 134, Section 43J)

Income Tax (Concessionary Rate of Tax for Approved Trustee Companies) Regulations

Rg 21

REVISED EDITION 1993

(18th December 1992)

[18th December 1992]

Citation

1. These Regulations may be cited as the Income Tax (Concessionary Rate of Tax for Approved Trustee Companies) Regulations and shall have effect for the year of assessment 1992 and subsequent years of assessment.

Definitions

2. In these Regulations —

“approved trustee company” means a trustee company which is approved by the Minister or such person as he may appoint under section 43J of the Act;

“designated persons” has the same meaning as in the Income Tax (Income from Funds Managed for Foreign Investors) Regulations (Rg 8);

[S 349/2003 wef 23/07/2003]

“foreign account” has the same meaning as in section 13O of the Act;

[S 546/2007 wef 18/02/2005]

“foreign bond or loan stock issues” means any bond or loan stock issued by a person not resident in Singapore (but excluding its permanent establishment in Singapore) or by a permanent establishment outside Singapore of a person resident in Singapore in respect of any business carried on outside Singapore through that permanent establishment, where —

(a)	the bond or loan stock is denominated in currencies other than Singapore dollars;
(b)	the proceeds of the bond or loan stock issue are to be used outside Singapore; and
(c)	the expenses incurred in respect of the bond or loan stock issue are not borne, directly or indirectly, by a person resident in Singapore or a permanent establishment in Singapore;

““foreign mutual fund corporation” means a mutual fund corporation where not more than 20% (excluding the total percentage held directly by designated persons) of the value of its shares is beneficially held, directly or indirectly, by persons who are not foreign investors referred to in paragraph (a) or (b) of the definition of "foreign investor"” in regulation 2 of the Income Tax (Income from Funds Managed for Foreign Investors) Regulations (Rg 8);

[S 349/2003 wef 23/07/2003]

[S 93/2006 wef 30/01/2006]

“mutual fund corporation” means a collective investment scheme or closed-end fund as defined in section 2 of the Securities and Futures Act (Cap. 289) that is constituted as a corporation;

[S 349/2003 wef 23/07/2003]

“philanthropic purpose trust” has the same meaning as in section 13O of the Act;

[S 546/2007 wef 18/02/2005]

“relevant foreign trust” means a foreign trust as defined in regulation 2A of the Income Tax (Exemption of Income of Foreign Trusts) Regulations (Rg 24), other than a unit trust referred to in paragraph (1)(b) of that regulation;

[S 349/2003 wef 23/07/2003]

“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, holding, management or disposal of securities or any other property.

Concessionary rate of tax

3. Tax shall be payable at the rate of 10% on the income derived by an approved trustee company from the provision of —

(a)	any trustee or custodian services in its capacity as a trustee of a relevant foreign trust, or as a trustee of a philanthropic purpose trust in respect of a foreign account; [S 349/2003 wef 23/07/2003] [S 546/2007 wef 18/02/2005]
(b)	any trustee or custodian services for or on behalf of any unit trust which falls within paragraph (c) in the definition of “foreign investor” in the Income Tax (Income from Funds Managed for Foreign Investors) Regulations (Rg 8) and where the funds of the unit trust are invested in designated investments within the meaning of those Regulations;
(c)	trustee or custodian services in respect of foreign bond or loan stock issues including services for monitoring loan covenants and administering loan repayments; [S 349/2003 wef 23/07/2003]
(d)	custodian services in respect of stocks and shares, denominated in currencies other than Singapore dollars, of companies which are neither incorporated nor resident in Singapore; [S 349/2003 wef 23/07/2003]
(e)	any custodian services for or on behalf of any foreign mutual fund corporation, where the funds of the foreign mutual fund corporation are invested in designated investments within the meaning of the Income Tax (Income from Funds Managed for Foreign Investors) Regulations; and [S 349/2003 wef 23/07/2003]
(f)	any trust management or administration services provided to any trustee of a relevant foreign trust, or to any trustee of a philanthropic purpose trust in respect of a foreign account. [S 349/2003 wef 23/07/2003] [S 546/2007 wef 18/02/2005]

Determination of income chargeable to tax

4. For the purpose of regulation 3, the Comptroller shall determine —

(a)	the income chargeable to tax of an approved trustee company having regard to such expenses, capital allowances and donations allowable under the Act as are, in his opinion, to be deducted in ascertaining such income; and
(b)	the manner and extent to which any losses arising from the trustee or custodian services specified in that regulation may be deducted under section 37 of the Act in ascertaining the chargeable income of an approved trustee company.

Application

5. Regulation 3 shall not apply to any payment to an approved trustee company for the services referred to in that regulation which is borne, directly or indirectly, by a person resident in Singapore or a permanent establishment in Singapore.

[G.N. No. S 512/92]

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