Definition of associate
6.—(1)  For the purposes of section 13D of the Act and subject to paragraph (2), a person (“P1”) is an associate of another person (“P2”), where P1 or P2 are neither designated persons nor individuals —
(a)where P1 is a company and —
(i)where P2 is another company —
(A)P1 beneficially owns, directly or indirectly, at least 25% of the total value of the issued securities of P2;
(B)P2 beneficially owns, directly or indirectly, at least 25% of the total value of the issued securities of P1; or
(C)a third person beneficially owns, directly or indirectly, at least 25% of the total value of the issued securities of P1 and at least 25% of the total value of the issued securities of P2;
(ii)where P2 is a company and a beneficiary of a trust —
(A)P1 beneficially owns, directly or indirectly, at least 25% of the total value of the issued securities of P2;
(B)P2 beneficially owns, directly or indirectly, at least 25% of the total value of the issued securities of P1; or
(C)a third person beneficially owns, directly or indirectly, at least 25% of the total value of the issued securities of P1 and at least 25% of the total value of the issued securities of P2; and
(b)where P1 is a company and is a beneficiary of a trust (T1) and where P2 is a company and is a beneficiary of another trust (T2) —
(i)P1 beneficially owns, directly or indirectly, at least 25% of the total value of the issued securities of P2;
(ii)P2 beneficially owns, directly or indirectly, at least 25% of the total value of the issued securities of P1; or
(iii)a third person beneficially owns, directly or indirectly, at least 25% of the total value of the issued securities of P1 and at least 25% of the total value of the issued securities of P2.
[S 934/2022 wef 31/12/2021]
(2)  Notwithstanding anything in paragraph (1), P1 is not an associate of P2 in the following cases:
(a)where —
(i)either P1 or P2 is an entity listed on an exchange in Singapore or elsewhere;
(ii)P1 does not beneficially own, directly or indirectly, at least 25% of the total value of the issued securities of P2; and
(iii)P2 does not beneficially own, directly or indirectly, at least 25% of the total value of the issued securities of P1;
[S 644/2013 wef 01/04/2009]
(b)where —
(i)no third person (other than an individual or a designated person) beneficially owns, directly or indirectly, at least 25% of the total value of issued securities of P1 and at least 25% of the total value of issued securities of P2; and
(ii)at least 25% of the total value of the issued securities of P1 and at least 25% of the total value of the issued securities of P2 are owned either directly by an individual or a designated person, or indirectly through a nominee company or a trust fund by an individual or a designated person; or
[S 644/2013 wef 01/04/2009]
(c)where P1 is an approved person under section 13U of the Act 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 13D of the Act  —
(i)beneficially owns directly —
(A)if the prescribed person is a company, any of the issued securities of the company; or
(B)if the prescribed person is a trustee of a trust fund, any part of the trust fund; and
(ii)satisfies all 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 644/2013 wef 01/04/2009]
[S 934/2022 wef 31/12/2021]