Income Tax (Exemption of Income of Prescribed Persons Arising from Funds Managed by Fund Manager in Singapore) Regulations 2010

THIRD SCHEDULE

Regulation 2(1)

Part A

DESIGNATED INVESTMENTS IN RELATION TO
INCOME DERIVED ON OR AFTER 21 February 2014

The following investments:

(a)

stocks and shares of any company, other than a company that is —

(i)	in the business of trading or holding of Singapore immovable properties (other than the business of property development); and
(ii)	not listed on a stock exchange in Singapore or elsewhere;

(b)

bonds, notes, commercial papers, treasury bills and certificates of deposit, but excluding those which are not qualifying debt securities and which are issued by any company that is —

(i)	in the business of trading or holding of Singapore immovable properties (other than the business of property development); and
(ii)	not listed on a stock exchange in Singapore or elsewhere;

(c)

real estate investment trusts, exchange traded funds or any other securities which are —

(i)	denominated in foreign currency issued by foreign governments;
(ii)	listed on any exchange;
(iii)	issued by supranational bodies; or
(iv)	issued by any company,

but excluding any securities which are issued by any company that is —

(A)	in the business of trading or holding of Singapore immovable properties (other than the business of property development); and
(B)	not listed on a stock exchange in Singapore or elsewhere;

(d)

futures contracts held in any futures exchanges;

(e)

any immovable property situated outside Singapore;

(f)

deposits held in Singapore with any approved bank as defined in section 13(16) of the Act;

(g)

foreign currency deposits held outside Singapore with financial institutions outside Singapore;

(h)

foreign exchange transactions;

(i)

interest rate or currency contracts on a forward basis, interest rate or currency options, interest rate or currency swaps, and any financial derivative relating to any designated investment specified in this Part or financial index, with —

(i)

a financial sector incentive company which is —

(A)	a bank that holds a licence granted under section 7 or 79 of the Banking Act 1970; [S 485/2021 wef 01/07/2021] [S 934/2022 wef 31/12/2021]
(B)	a merchant bank that holds a merchant bank licence, or is treated as having been granted a merchant bank licence, under the Banking Act 1970; or [S 485/2021 wef 01/07/2021] [S 934/2022 wef 31/12/2021]
(C)	a holder of a capital markets services licence under the Securities and Futures Act 2001 to deal in securities or a company exempted under that Act from holding such a licence; [S 934/2022 wef 31/12/2021]

(ii)

a person who is neither resident in Singapore nor a permanent establishment in Singapore; or

(iii)

a branch office outside Singapore of a company resident in Singapore;

(j)

units in any unit trust which invests wholly in designated investments specified in this Part;

(k)

loans that are —

(i)	granted by a prescribed person to any company incorporated outside Singapore which is neither resident in nor a permanent establishment in Singapore, where no interest, commission, fee or other payment in respect of the loan is deductible against any income of that company accruing in or derived from Singapore; or
(ii)	granted by a person other than a prescribed person but traded by a prescribed person;

(l)

commodity derivatives;

(m)

physical commodities if —

(i)	the trading of those physical commodities by a prescribed person in the basis period for any year of assessment is done in connection with and is incidental to its trading of commodity derivatives (called in this paragraph related commodity derivatives) in that basis period; and
(ii)	the trade volume of those physical commodities traded by the prescribed person in that basis period does not exceed 15% of the total trade volume of those physical commodities and related commodity derivatives traded by the prescribed person in that basis period;

(n)

units in a registered business trust;

(o)

emission derivatives;

(p)

liquidation claims;

(q)

structured products;

(r)

investments in prescribed Islamic financing arrangements under section 34B of the Act that are commercial equivalents of any of the other designated investments specified in this Part;

(s)

private trusts that invest wholly in designated investments specified in this Part;

(t)

freight derivatives;

(u)

publicly-traded partnerships that do not carry on any trade, business, profession or vocation in Singapore;

(v)

any loan granted to a trustee of a trust constituted outside Singapore, where —

(i)	the trustee is neither resident in Singapore nor a permanent establishment in Singapore; and
(ii)	for the year of assessment in question, no interest, commission, fee or other payment in respect of the loan is deductible under the Act against any income of the trust accruing in or is derived from Singapore;

(w)

membership or similar interests in a company formed under the laws of any state of the United States of America as a limited liability company, or under the laws of any other foreign country as a limited liability company or its equivalent;

(x)

bankers’ acceptances.

Part B

SPECIFIED INCOME DERIVED ON OR AFTER
21 February 2014

Any income or gains derived from designated investments specified in Part A of this Schedule, but does not include the following:

(a)

[Deleted by S 106/2017 wef 21/02/2014]

(b)

interest and other payments that fall within the ambit of section 12(6) of the Act other than the following:

(i)

interest derived from deposits held in Singapore with, and certificates of deposit issued by, any approved bank as defined in section 13(16) of the Act, and from Asian Dollar Bonds approved under section 13(1)(v) of the Act;

(ii)

interest from qualifying debt securities;

(iii)

discounts from qualifying debt securities issued on or after 17 February 2006;

(iv)

prepayment fees, redemption premiums and break costs from qualifying debt securities issued on or after 15 February 2007;

(v)

amounts payable from any Islamic debt securities issued on or after 22 January 2009 which are qualifying debt securities;

(vi)

fees and compensatory payments derived from securities lending or repurchase arrangements with —

(A)

a person who is neither a resident of nor a permanent establishment in Singapore;

(B)

the Monetary Authority of Singapore;

(C)

a bank that holds a licence granted under section 7 or 79 of the Banking Act 1970;

[S 485/2021 wef 01/07/2021]

[S 934/2022 wef 31/12/2021]

(D)

a merchant bank that holds a merchant bank licence, or is treated as having been granted a merchant bank licence, under the Banking Act 1970;

[S 485/2021 wef 01/07/2021]

[S 934/2022 wef 31/12/2021]

(E)

a finance company licensed under the Finance Companies Act 1967;

[S 934/2022 wef 31/12/2021]

(F)

a holder of a capital markets services licence who is licensed to carry on business in the following regulated activities under the Securities and Futures Act 2001 or a company exempted under that Act from holding such a licence:

(FA)	dealing in securities (other than any person licensed under the Financial Advisers Act 2001); [S 934/2022 wef 31/12/2021]
(FB)	fund management;
(FC)	securities financing;
(FD)	providing custodial services for securities; [S 934/2022 wef 31/12/2021]

(G)

a collective investment scheme or closed-end fund as defined in the Securities and Futures Act 2001 that is constituted as a corporation;

[S 934/2022 wef 31/12/2021]

(H)

the Central Depository (Pte) Limited;

(I)

an insurer registered or regulated under the Insurance Act 1966 or exempted under the Act from being registered or regulated; or

[S 934/2022 wef 31/12/2021]

(J)

a trust company registered under the Trust Companies Act 2005;

[S 934/2022 wef 31/12/2021]

(c)

any distribution made by a trustee of a real estate investment trust within the meaning of section 43(10) of the Act;

(d)

any distribution made by a trustee of a trust who is resident in Singapore or a permanent establishment in Singapore, other than a distribution made by a trustee whose income is exempt from tax under section 13C, 13F, 13L or 13U of the Act;

[S 106/2017 wef 01/04/2014]

[S 934/2022 wef 31/12/2021]

(da)

any distribution made on or after 1 April 2014 by a trustee of a trust who is resident in Singapore or a permanent establishment in Singapore, other than a distribution made by a trustee whose income is exempt from tax under section 13D of the Act;

[S 106/2017 wef 01/04/2014]

[S 934/2022 wef 31/12/2021]

(e)

income or gain —

(i)	derived or deemed to be derived from Singapore; and
(ii)	paid out of income of a publicly-traded partnership, being income on which tax is paid or payable in Singapore;

(f)

income or gain —

(i)	derived or deemed to be derived from Singapore; and
(ii)	paid out of income of a company formed under the laws of any state of the United States of America as a limited liability company, or under the laws of any other foreign country as a limited liability company or its equivalent, being income on which tax is paid or payable in Singapore. [S 106/2017 wef 21/02/2014] [S 384/2016 wef 21/02/2014]

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