Income Tax (Related Party of Approved Shipping Investment Enterprise under Section 13P) Rules 2021

Status:

Current version
as at 01 May 2025

No. S 874

Income Tax Act

(CHAPTER 134)

Income Tax (Related Party of Approved Shipping Investment Enterprise under Section 13P) Rules 2021

In exercise of the powers conferred by section 7(1) of the Income Tax Act, the Minister for Finance makes the following Rules:

Citation and commencement

1. These Rules are the Income Tax (Related Party of Approved Shipping Investment Enterprise under Section 13P) Rules 2021 and are deemed to have come into operation on 12 December 2018.

[S 39/2023 wef 31/12/2021]

Definitions

2. In these Rules —

“approved shipping investment enterprise” —

(a)	means an approved shipping investment enterprise mentioned in section 13P of the Act; and [S 39/2023 wef 31/12/2021]
(b)	includes a partnership approved by the Minister (or an authorised body) under section 13P of the Act as applied by section 36 of the Act; [S 39/2023 wef 31/12/2021] [S 311/2024 wef 12/04/2024]

“approved shipping investment manager” means an approved shipping investment manager mentioned in section 43L of the Act.

[S 39/2023 wef 31/12/2021]

Related party

3.—(1) For the purposes of section 13P of the Act, each of the following is a related party of an approved shipping investment enterprise (called in this rule the approved enterprise):

(a)

another approved shipping investment enterprise that is related to the approved enterprise —

(i)	where the approved enterprise is a company — in accordance with paragraph (2) or (3); or
(ii)	where the approved enterprise is a registered business trust or partnership — in accordance with paragraph (3);

(b)

a company —

(i)

being one —

(A)	that is incorporated and resident in Singapore; or
(B)	that is incorporated outside Singapore; and

(ii)

at least 25% of the total number of the issued ordinary shares of which are beneficially owned (whether directly or indirectly) by —

(A)	the approved enterprise; or
(B)	another approved shipping investment enterprise that is a related party of the approved enterprise under sub‑paragraph (a);

(c)

a partnership that is registered or formed outside Singapore —

(i)

where the approved enterprise is entitled (whether directly or indirectly) to at least 25% of the partnership’s income; or

(ii)

one of the partners of which —

(A)	is another approved shipping investment enterprise that is a related party of the approved enterprise under sub‑paragraph (a); and
(B)	is entitled to at least 25% of the partnership’s income.

[S 39/2023 wef 31/12/2021]

(2) For the purposes of paragraph (1)(a)(i), an approved shipping investment enterprise (called in this paragraph the related enterprise) is related to the approved enterprise if at least 25% of the total number of the issued ordinary shares of —

(a)	the approved enterprise; and
(b)	the related enterprise,

are beneficially owned (whether directly or indirectly) by the same shareholder or shareholders.

(3) For the purposes of paragraph (1)(a)(i) and (ii), an approved shipping investment enterprise (called in this paragraph the related enterprise) is related to the approved enterprise if —

(a)

the approved enterprise and related enterprise are managed by the same approved shipping investment manager; or

(b)

all the issued ordinary shares of —

(i)	the approved shipping investment manager that manages the approved enterprise; and
(ii)	the approved shipping investment manager that manages the related enterprise,

are beneficially owned (whether directly or indirectly) by the same shareholder or shareholders.

Made on 19 October 2021.

TAN CHING YEE

Permanent Secretary,
Ministry of Finance,
Singapore.

[R032.018.2974.V19; AG/LEGIS/SL/134/2020/28 Vol. 1]

(To be presented to Parliament under section 7(2) of the Income Tax Act).

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