2.—(1) In these Regulations —| “approved start-up fund manager” means a start-up fund manager approved under paragraph (4); |
| “bona fide entity” means an entity that is not a non-bona fide entity; |
| “commodity derivatives” means derivatives the payoffs of which are wholly linked to the payoffs or performance of the underlying commodity; [S 262/2013 wef 17/02/2012] |
| “compensatory payments” has the same meaning as in section 10N(12) of the Act; |
“designated investments” means —| (a) | [Deleted by S 485/2021 wef 01/07/2021] | | (b) | [Deleted by S 485/2021 wef 01/07/2021] | | (c) | in relation to income derived on or after 21 February 2014, investments specified in Part A of the Third Schedule; [S 384/2016 wef 21/02/2014] |
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“designated person” means —| (a) | GIC Private Limited, as renamed from time to time; | | (b) | any of the following companies as renamed from time to time, but only if the company is wholly owned (directly or indirectly) by the Minister in the Minister’s capacity as a corporation established under the Minister for Finance (Incorporation) Act (Cap. 183):| (i) | GIC (Ventures) Pte. Ltd.; | | (ii) | GIC (Realty) Private Limited; | | (iii) | Eurovest Pte Ltd; |
| | (c) | a company that is wholly owned (directly or indirectly) by any company that is a designated person by reason of paragraph (b); | | (d) | any other company that is wholly owned (directly or indirectly) by the Minister in the Minister’s capacity as a corporation established under the Minister for Finance (Incorporation) Act, and is approved by the Minister or such person as the Minister may appoint; or | | (e) | any statutory board; [S 106/2017 wef 22/03/2017] |
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| “emission derivatives” means derivatives the payoffs of which are wholly linked to the payoffs or performance of the underlying emission allowances; [S 262/2013 wef 17/02/2012] |
| “financial derivatives” means derivatives the payoffs of which are linked, whether in whole or in part, to the payoffs or performance of any financial assets, securities, financial instruments or indices, but excludes derivatives the payoffs of which are wholly linked to the payoffs or performance of commodities; [S 262/2013 wef 17/02/2012] |
| “financial sector incentive company” has the same meaning as in section 43Q of the Act; |
| “freight derivatives” means derivatives the payoffs of which are wholly linked to the payoffs or performance of the underlying freight rates; [S 262/2013 wef 17/02/2012] |
| “insolvency proceedings” means winding-up, bankruptcy, administration, provisional supervision or reorganisation (by way of voluntary arrangement, scheme of arrangement or otherwise) of a person under the laws of any jurisdiction; [S 498/2010 wef 22/01/2009] |
| “Islamic debt securities” has the same meaning as in section 43N(4) of the Act; [S 498/2010 wef 22/01/2009] |
| “liquidation claims” means claims or other causes of actions (including interests, rights and demands) of creditors or equity holders of any person against such person, however arising, on cash or other tangible or intangible assets, from a person upon and in connection with any insolvency proceeding of that person; [S 498/2010 wef 22/01/2009] |
“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%; [S 384/2016 wef 01/04/2014] |
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| “qualifying debt securities” has the same meaning as in section 13(16) of the Act; |
| “registered business trust” has the same meaning as in the Business Trusts Act (Cap. 31A); [S 498/2010 wef 22/01/2009] |
| “securities lending or repurchase arrangement” has the same meaning as in section 10N(12) of the Act; |
“Singapore person”, in relation to paragraph (b) or (c) of the definition of “prescribed person”, means a person who is a Singapore citizen, resident in Singapore or permanent establishment in Singapore, but does not include —| (a) | a company which is approved under section 13R of the Act and which, at all times during the basis period for the year of assessment for which the income of a prescribed person is exempt from tax under section 13CA of the Act —| (i) | beneficially owns directly, 100% of the total value of all issued securities of the prescribed person or the total value of the trust fund for which the prescribed person is the trustee, as the case may be; and | | (ii) | satisfies the conditions in regulation 3(2) of the Income Tax (Exemption of Income of Approved Companies Arising from Funds Managed by Fund Manager in Singapore) Regulations 2010 (G.N. No. S 8/2010); [S 346/2012 wef 01/09/2007] |
| | (b) | a designated person; or [S 346/2012 wef 01/04/2009] | | (c) | an approved person under section 13X of the Act and which, at all times during the basis period for the year of assessment for which the income of a prescribed person is exempt from tax under section 13CA of the Act —| (i) | beneficially owns directly, 100% of the total value of all issued securities of the prescribed person or the total value of the trust fund for which the prescribed person is the trustee, as the case may be; and | | (ii) | satisfies the conditions in regulation 3(2) of the Income Tax (Exemption of Income Arising from Funds Managed by Fund Manager in Singapore) Regulations 2010 (G.N. No. S 414/2010); [S 384/2016 wef 07/07/2010] [S 346/2012 wef 01/04/2009] |
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“specified income” means —| (a) | [Deleted by S 485/2021 wef 01/07/2021] | | (b) | [Deleted by S 485/2021 wef 01/07/2021] | | (c) | in relation to income derived on or after 21 February 2014, income specified in Part B of the Third Schedule; [S 384/2016 wef 21/02/2014] |
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| “structured product” has the same meaning as in section 13(16) of the Act; [S 498/2010 wef 22/01/2009] |
“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; [S 384/2016 wef 01/04/2014] |
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| “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. |
(2) The requirement in paragraph (b)(iv) of the definition of “prescribed person” in paragraph (1) relating to beneficial ownership of issued securities of a company does not apply to a fund constituted as a company and which is 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) | the company was incorporated by a fund manager who was an approved start-up fund manager at the time of incorporation; and | | (d) | the company is not incorporated with the avoidance or reduction of tax chargeable under the Act as its main purpose or one of its main purposes. |
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(3) The requirement in paragraph (c) of the definition of “prescribed person” 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; and | | (d) | 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. [S 346/2012 wef 01/09/2007] |
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| (4) For the purpose of paragraphs (2) and (3), the Minister or such persons 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. |
(5) For the purposes of section 13CA of the Act and these Regulations, issued securities include —| (a) | any right under a contract for differences, or under any other contract the purpose or pretended purpose of which is to secure a profit or avoid a loss by reference to fluctuations, in —| (i) | the value or price of issued debentures, stocks or shares; | | (ii) | the value or price of any group of any such debentures, stocks or shares; or | | (iii) | an index of any such debentures, stocks or shares; and |
| | (b) | derivatives of a buy-sell nature for funding purpose, |
| (A) | futures contracts which are traded on a futures market; | | (B) | bills of exchange; | | (C) | promissory notes; or | | (D) | certificates of deposit issued by a bank or finance company. |
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(6) Any reference in section 13CA of the Act and these Regulations to the value of issued securities of a company of the type described in paragraph (5), where the relevant day is before 1 April 2014, is a reference to the value of those securities —| (a) | at the time of their issue by the company; or | | (b) | in the case of derivatives of a buy-sell nature, at the time of their buy-sell transaction. [S 384/2016 wef 01/04/2014] |
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| (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. [S 384/2016 wef 01/04/2014] |
| (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. [S 384/2016 wef 01/04/2014] |
(7) For the purposes of section 13CA of the Act and these Regulations, “prescribed percentage” means —| (a) | where the prescribed person or the trust fund for which the prescribed person is the trustee has less than 10 relevant owners or relevant beneficiaries — 30%; or | | (b) | where the prescribed person or the trust fund for which the prescribed person is the trustee has at least 10 relevant owners or relevant beneficiaries — 50%. |
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