6.—(1) Section 13S shall apply to the share of divisible income of a partner of an approved partnership from qualifying activities, as it applies to the income of an approved shipping investment enterprise from the activities referred to in section 13S(1)(a), (b) and (c), with the modifications and exceptions set out in this regulation.(2) For the purposes of paragraph (1) —(a) | a reference in section 13S(2) to a shipping investment enterprise is a reference to a partnership registered under any written law in Singapore; | (b) | a reference in section 13S to the approval of a shipping investment enterprise is a reference to the approval of the partnership under section 13S(2); | (c) | a reference in section 13S(7), (8), (9) and (18) to an approved shipping investment enterprise is a reference to a partner of the approved partnership; | (d) | a reference in section 13S(17) to an approved shipping investment enterprise is a reference to the approved partnership; | (e) | a reference in section 13S to a sea-going ship acquired, chartered or leased by an approved shipping investment enterprise is a reference to a sea-going ship acquired, chartered or leased by the approved partnership; and | (f) | paragraphs (3), (4) and (5) shall apply in lieu of section 13S(1A), (5) and (6), and section 13S(1B) shall be construed accordingly. |
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(3) Section 13S(1) shall continue to apply to —(a) | a partner of a partnership the approval of which has expired or been withdrawn, but which continues to derive income from qualifying activities in relation to a sea-going ship acquired before or during the period of the approval, provided that the partnership has by the date of the expiry or before the withdrawal, fulfilled all the conditions referred to in section 13S(3); and | (b) | any reference in section 13S and these Regulations to an approved partnership shall be construed accordingly. |
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(4) In determining the share of divisible income of a partner of an approved partnership from qualifying activities which is exempt from tax under section 13S(1), the allowance provided for in sections 16, 17, 18, 18B, 18C, 19, 19A, 20, 21, 22 and 23 as apportioned to that share, other than allowances made to a lessee of a sea-going ship under regulations made under section 10D —(a) | shall be taken into account notwithstanding that no claim for the allowance has been made; and | (b) | shall only be deducted from the share of income of the partner derived from the qualifying activities, and the balance of those allowances shall not be available as a deduction against any other income of the partner; except that any balance remaining unabsorbed at the end of the tax exempt period of the approved partnership shall be available as a deduction against any other income of the partner for the year of assessment which relates to the basis period in which the tax exemption ceases and for any subsequent year of assessment in accordance with section 23. |
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(5) Where an approved partnership incurs a loss during the tax exempt period of the partnership in respect of qualifying activities, that loss as apportioned to each partner of the partnership —(a) | shall be deducted against the income of the partner from the qualifying activities in accordance with section 37; and | (b) | shall only be deducted against the income of the partner from the qualifying activities, and the balance of the loss shall not be available as a deduction against any other income of the partner, except that any balance remaining unabsorbed at the end of the tax exempt period of the partnership shall be available as a deduction against any other income of the partner for the year of assessment which relates to the basis period in which the tax exemption ceases and for any subsequent year of assessment in accordance with section 37. |
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(6) In this regulation —“approved international shipping enterprise”, “finance leasing”, “international shipping enterprise”, “sea-going ship”, “shipping investment enterprise”, “Singapore ship” and “tax exempt period” have the same meanings as in section 13S, as modified (where applicable) by paragraph (2); |
“qualifying activities” means —(a) | the chartering or finance leasing of any sea-going ship, acquired by the approved partnership before or during the period of its approval referred to in section 13S(3) to —(i) | a person who is neither resident in Singapore nor a permanent establishment in Singapore; or | (ii) | an approved international shipping enterprise, |
for use outside the limits of the port of Singapore; |
| (b) | the chartering or finance leasing of any sea-going Singapore ship, acquired by the approved partnership before or during the period of its approval referred to in section 13S(3), to a shipping enterprise within the meaning of section 13A for use outside the limits of the port of Singapore; and | (c) | in respect of income for the year of assessment 2009 and subsequent years of assessment, the foreign exchange and risk management activities which are carried out in connection with and incidental to the activities referred to in paragraphs (a) and (b). |
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