6.—(1) Section 13P applies to the share of divisible income of a partner of an approved partnership derived —(a) | during the period between 1 April 2008 and 24 March 2016 (both dates inclusive) from the qualifying activities mentioned in paragraphs (a), (b) and (c) of the definition of “qualifying activities” in paragraph (6); | (b) | on or after 1 June 2011 from the qualifying activities mentioned in paragraphs (d), (e) and (f) of the definition of “qualifying activities” in paragraph (6); [S 312/2024 wef 12/12/2018] | (c) | on or after 25 March 2016 from the qualifying activities mentioned in paragraphs (g) and (h) of the definition of “qualifying activities” in paragraph (6); and [S 312/2024 wef 12/12/2018] | (d) | on or after 12 December 2018 from the qualifying activities mentioned in paragraphs (i) and (j) of the definition of “qualifying activities” in paragraph (6), |
as it applies to the income of an approved shipping investment enterprise from the activities mentioned in section 13P(1)(a), (b), (c), (ca), (cb), (cc), (cd) and (d), with the modifications and exceptions set out in this regulation. |
[S 457/2017 wef 25/03/2016] [S 312/2024 wef 12/12/2018] [S 312/2024 wef 31/12/2021] (2) For the purposes of paragraph (1) —(a) | a reference in section 13P(2) to a shipping investment enterprise is a reference to a partnership registered under any written law in Singapore; [S 312/2024 wef 31/12/2021] | (b) | a reference in section 13P to the approval of a shipping investment enterprise is a reference to the approval of the partnership under section 13P(2); [S 312/2024 wef 31/12/2021] | (c) | a reference in section 13P(7), (8) and (18) to an approved shipping investment enterprise is a reference to a partner of the approved partnership; [S 457/2017 wef 01/01/2014] [S 312/2024 wef 31/12/2021] | (d) | a reference in section 13P(17) to an approved shipping investment enterprise is a reference to the approved partnership; [S 312/2024 wef 31/12/2021] | (e) | a reference in section 13P 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 [S 312/2024 wef 31/12/2021] | (f) | paragraphs (3), (3AA), (3AB), (3AC), (3A), (4), (5) and (5B) apply in lieu of section 13P(1A), (1B), (1C), (1D), (1DA), (1E), (1F), (5), (6) and (6A), and section 13P(1G) is to be construed accordingly. [S 457/2017 wef 01/06/2011] [S 312/2024 wef 12/12/2018] [S 312/2024 wef 07/12/2020] [S 312/2024 wef 31/12/2021] |
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(3) Section 13P(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, or (in a case of income derived from an activity mentioned in paragraph (i) or (j) of the definition of “qualifying activities” in paragraph (6)) both the partnership and the approved related party have, by the date of the expiry or before the withdrawal, fulfilled all the conditions referred to in section 13P(3); and [S 312/2024 wef 12/12/2018] [S 312/2024 wef 31/12/2021] | (b) | any reference in section 13P and these Regulations to an approved partnership shall be construed accordingly. [S 312/2024 wef 12/12/2018] [S 312/2024 wef 31/12/2021] |
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(3AA) Section 13P(1)(ca) and (cc) does not apply to income derived on or after 12 December 2018 from the chartering or finance leasing of a sea-going ship that is acquired by the approved partnership or the approved related party by way of a finance lease entered into with an entity that was not an approved related party. [S 312/2024 wef 12/12/2018] [S 312/2024 wef 31/12/2021] |
(3AB) Section 13P(1)(ca) and (cc) also does not apply to any income derived by an approved partnership as part of a business of trading in sea-going ships or constructing sea-going ships for sale. [S 312/2024 wef 07/12/2020] [S 312/2024 wef 31/12/2021] |
(3AC) Section 13P(1)(cc) and (cd) and (1B) applies (with the necessary modifications) to income derived by a partner of the approved partnership in relation to a ship acquired by a related party of the partnership before the period of approval of the related party, if and only if the approved partnership is approved on or after 1 April 2008. [S 312/2024 wef 12/12/2018] [S 312/2024 wef 07/12/2020] [S 312/2024 wef 31/12/2021] |
(3A) Section 13P(1)(d) does not apply to —(a) | any income of an approved partnership derived before 12 December 2018 as a lessor of a sea‑going ship under a finance lease that is treated as a sale under section 10C; or | (b) | any income of an approved partnership that is derived as part of a business of trading in sea‑going ships or of constructing sea‑going ships for sale. [S 457/2017 wef 01/06/2011] [S 312/2024 wef 07/12/2020] [S 312/2024 wef 31/12/2021] |
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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 13P(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 10C —(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. [S 312/2024 wef 31/12/2021] |
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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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(5A) Paragraphs (3) and (5) apply only in respect of income from the qualifying activities in paragraphs (a), (b), (c), (g), (h), (i) and (j) of the definition of “qualifying activities” in paragraph (6). [S 457/2017 wef 25/03/2016] [S 312/2024 wef 12/12/2018] |
(5B) Where an approved partnership incurs a loss on any sale or assignment mentioned in paragraph (d), (e) or (f) of the definition of “qualifying activities” in paragraph (6) in any basis period falling, in whole or in part, within the tax exempt period, that loss may only be deducted against the gains derived from another sale or assignment mentioned in paragraph (d), (e) or (f), as the case may be, in that basis period, and the balance of the loss is not available as a deduction against any other income. [S 457/2017 wef 01/06/2011] |
(6) In this regulation —“approved international shipping enterprise”, “finance leasing”, “international shipping enterprise”, “shipping investment enterprise”, “Singapore ship” and “tax exempt period” have the same meanings as in section 13P, as modified (where applicable) by paragraph (2); [S 457/2017 wef 11/04/2016] [S 312/2024 wef 31/12/2021] |
“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 13P(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; |
[S 312/2024 wef 31/12/2021] | (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 13P(3), to a shipping enterprise within the meaning of section 13A for use outside the limits of the port of Singapore; [S 457/2017 wef 01/06/2011] [S 312/2024 wef 31/12/2021] | (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); [S 457/2017 wef 01/06/2011] | (d) | the sale of a sea-going ship; [S 457/2017 wef 01/06/2011] | (e) | the assignment to another of all the rights of the approved partnership as the buyer under a contract for the construction of a sea‑going ship; [S 457/2017 wef 25/03/2016] [S 457/2017 wef 01/06/2011] | (f) | the sale of all of the issued ordinary shares in a special purpose company of the approved partnership where, at the time of the sale of the shares, the special purpose company owns any sea‑going ship or is the buyer under a contract for the construction of any sea‑going ship; [S 457/2017 wef 01/06/2011] | (g) | the chartering or finance leasing of any sea-going ship acquired by the approved partnership before or during the period of its approval mentioned in section 13P(3), for use outside the limits of the port of Singapore; [S 457/2017 wef 25/03/2016] [S 312/2024 wef 12/12/2018] [S 312/2024 wef 31/12/2021] | (h) | foreign exchange and risk management activities that are carried out in connection with and incidental to any activity mentioned in paragraph (g); [S 457/2017 wef 25/03/2016] | (i) | the chartering or finance leasing by the approved partnership of any sea-going ship, for use by the lessee outside the limits of the port of Singapore, if the ship was —(i) | acquired by an approved related party of the partnership before or during the period of its approval mentioned in section 13P(3); and [S 312/2024 wef 31/12/2021] | (ii) | chartered, or leased under a finance lease, by the approved related party to the approved partnership; and [S 312/2024 wef 12/12/2018] |
| (j) | foreign exchange and risk management activities that are carried out in connection with and incidental to an activity mentioned in paragraph (i); [S 312/2024 wef 12/12/2018] |
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“related party” means —(a) | any entity that is related to the approved partnership in the manner prescribed under the Income Tax (Related Party of Approved Container Investment Enterprise under Section 13P) Rules 2021 (G.N. No. S 874/2021), with each reference to an approved shipping investment enterprise replaced with a reference to the approved partnership; and [S 312/2024 wef 31/12/2021] | (b) | any other entity that is approved by the Minister in any particular case to be a related party of an approved partnership; [S 312/2024 wef 12/12/2018] |
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“ship” has the same meaning as in section 13P; [S 457/2017 wef 11/04/2016] [S 312/2024 wef 31/12/2021] |
“special purpose company”, in relation to an approved partnership, means a company that is wholly owned by the partnership and whose only business or intended business is the chartering or finance leasing of sea‑going ships. [S 457/2017 wef 01/06/2011] [S 312/2024 wef 31/12/2021] |
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