§ 10 — Charge of income tax

10.—(1) Income tax is, subject to the provisions of this Act, payable at the rate or rates specified hereinafter for each year of assessment upon the income of any person accruing in or derived from Singapore or received in Singapore from outside Singapore in respect of —(a)

gains or profits from any trade, business, profession or vocation, for whatever period of time such trade, business, profession or vocation may have been carried on or exercised;

(b)

gains or profits from any employment;

(c)

[Deleted by Act 29 of 1965]

(d)

dividends, interest or discounts;

(e)

any pension, charge or annuity;

(f)

rents, royalties, premiums and any other profits arising from property; and

(g)

any gains or profits of an income nature not falling within any of the preceding paragraphs.

(2) In subsection (1)(b), “gains or profits from any employment” means —(a)

any wages, salary, leave pay, fee, commission, bonus, gratuity, perquisite or allowance (other than a subsistence, travelling, conveyance or entertainment allowance which is proved to the Comptroller’s satisfaction to have been expended for purposes other than those in respect of which no deduction is allowed under section 15) paid or granted in respect of the employment whether in money or otherwise;

(b)

the value of any food, clothing or lodging provided or paid for by the employer;

(c)

for the year of assessment 2014 and any preceding year of assessment, the annual value of any place of residence provided by the employer and for the purposes of this paragraph —(i)

if the remuneration received by a director of a company is less than the annual value of the premises, the full annual value is deemed to be gains or profits of the employment;

(ii)

except as provided in sub‑paragraph (i), if the annual value of the premises exceeds 10% of the gains or profits from the employment mentioned in paragraphs (a) and (b) less the rent (if any) paid by the employee for the use of the premises, the excess is disregarded;

(iii)

where the premises are shared, “place of residence” means the part of the premises occupied by the person chargeable;

(ca)

for any year of assessment between the years of assessment 2015 and 2019 (both years inclusive), the annual value of any place of residence provided by the employer (or the part thereof occupied by the employee if the premises are shared with another) less the rent (if any) paid by the employee for the use of the premises;

(cb)

for the year of assessment 2020 and subsequent years of assessment, either —(i)

the rent paid by the employer for any place of residence provided by the employer (or the part of such place of residence occupied by the employee if the premises are shared with another), including for any furniture and fittings in that place or part; or

(ii)

if no such rent is paid, the annual value of such place or part, less any rent paid by the employee for the place or part;

(d)

any sum standing to the account of any individual in any pension or provident fund or society which the individual is entitled to withdraw upon retirement or which is withdrawn therefrom.[45/2018]

(2A) For the purposes of subsection (2)(ca) and (cb)(ii), in a case where no annual value or separate annual value is ascribed to any place of residence in the Valuation List prepared under section 10 of the Property Tax Act 1960, the annual value is to be ascertained in accordance with the definition of that term in section 2 of that Act.[37/2014; 45/2018]

(2AA) Where the Comptroller is not satisfied that the rent mentioned in subsection (2)(cb)(i) is reasonable after having regard to the rent that a lessee might reasonably be expected to pay under a lease of the place or part (including the furniture and fittings) if it were unoccupied and offered for renting, the Comptroller may adopt either —(a)

the annual value of the place of residence provided by the employer (or the part of such place of residence occupied by the employee if the premises are shared with another), less any rent paid by the employee for the place or part; or

(b)

in a case where no annual value or separate annual value is ascribed to such place of residence in the Valuation List prepared under section 10 of the Property Tax Act 1960, such other value as appears to the Comptroller to be reasonable in the circumstances.[45/2018]

(2AB) In a case where —(a)

subsection (2)(cb)(i) applies; and

(b)

the rent paid by the employer under that provision includes rent for any furniture and fittings in the place or part,

then, despite subsection (2)(a), no further account is to be taken of those furniture and fittings in determining the gains or profits of the employee from the employment.

[45/2018]

(2AC) However (and to avoid doubt), subsection (2AB) does not apply in a case where the Comptroller exercises his or her power under subsection (2AA).[45/2018]

(2B) For the purposes of subsection (2), the Minister may, for the purposes of such year of assessment as he or she may specify, by regulations prescribe the value of any furniture and fittings in any place of residence.[37/2014]

(3) Any sum realised under any insurance against loss of profits must be taken into account in the ascertainment of any profits or income.

(4) Where, under section 17, 20 or 21, a balancing charge falls to be made, the amount thereof is deemed to be income chargeable with tax under this Act, except in the case of a balancing charge in respect of —(a)

a Singapore ship which is owned by a shipping enterprise within the meaning of section 13A or by an approved shipping investment enterprise within the meaning of section 13P at the time the balancing charge falls to be made in respect of the Singapore ship, but only up to the amount ascertained in accordance with the formula

where A

is the amount of allowances under section 19 or 19A made to the enterprise in respect of the Singapore ship against any income exempt from tax under section 13A or 13P;

B

is the total amount of allowances under section 19 or 19A which have been made in respect of the ship during the period it is owned by the enterprise; and

C

is the amount of balancing charge;

(b)

a foreign ship or provisionally registered ship the income derived from the operation of which is exempt from tax under section 13A or 13E, or the income derived from the chartering or finance leasing of which is exempt from tax under section 13P (as the case may be) but only up to the amount ascertained in accordance with the formula

where X

is the amount of allowances under section 19 or 19A made to the enterprise in respect of the foreign ship or provisionally registered ship against any income exempt from tax under section 13A, 13E or 13P, as the case may be;

Y

is the total amount of allowances under section 19 or 19A which have been made in respect of the ship during the period it is owned by the enterprise; and

Z

is the amount of balancing charge.

[Act 33 of 2022 wef 04/11/2022]

(5) In subsection (4) —“foreign ship” has the meaning given by section 13E(6);

“Singapore ship” and “provisionally registered ship” have the meanings given by section 13A(16).[2/2016]

[Act 33 of 2022 wef 04/11/2022]

(5A) In subsection (4), “finance leasing” has the meaning given by section 13P(20).[2/2016]

(6) Any gains or profits, directly or indirectly, derived by any person from a right or benefit granted on or after 1 January 2003, whether granted in the person’s name or in the name of the person’s nominee or agent, to acquire shares in any company are, where the right or benefit is obtained by that person by reason of any office or employment held by the person, deemed to be income chargeable to tax under subsection (1)(b), accruing at such time and of such amount as determined under the following provisions:(a)

where the right or benefit is exercised, assigned, released or acquired — at the time of the exercise, assignment, release or acquisition of the right or benefit and the gains or profits are the price of the shares in the open market at that time, less any amount paid for the shares;

(b)

despite paragraph (a), where the right or benefit granted is subject to any restriction on the sale of the shares so acquired — at the time the restriction ceases to apply and the gains or profits are the price of the shares in the open market at that time, less any amount paid for the shares;

(c)

if it is not possible to determine the gains or profits under paragraph (a) or (b), the Comptroller may use the net asset value of the shares, less any amount paid for the shares, as the basis for determining the gains or profits;

(d)

despite paragraphs (a) and (c), any gains or profits derived by the person by any exercise of a right or benefit to acquire shares in any company listed on the Singapore Exchange are computed in accordance with the formula

where A

is —

(i)

if the shares are not treasury shares, the price of the shares in the open market at the last transaction on the date on which the shares are first listed on the Singapore Exchange after the acquisition of the shares by the person; and

(ii)

if the shares are treasury shares, the price of the shares in the open market at the last transaction on the date an appropriate entry is made in the Depository Register by the Central Depository (Pte) Ltd to effect the acquisition of the treasury shares by the person; and

B

is the amount paid for such shares;

(e)

“shares” includes stocks.

(6A) To avoid doubt, section 10(5) in force immediately before 10 December 2002 continues to apply to any gains or profits directly or indirectly derived by the exercise, assignment or release of any right or benefit to acquire shares (including stocks) in a company granted to a person before 1 January 2003, whether in his or her name or in the name of his or her nominee or agent, where the right or benefit was obtained by that person by reason of any office or employment held by him or her.

(7) Despite subsection (6), where —(a)

the right or benefit to acquire shares in a company is granted on or after 1 January 2003 to an individual while he or she is exercising an employment in Singapore; and

(b)

immediately before he or she ceases that employment —(i)

the individual is neither a citizen of Singapore nor a Singapore permanent resident, or being a Singapore permanent resident is leaving Singapore permanently; and

(ii)

the right or benefit is not exercised, assigned, released or acquired by him or her, or the restriction on the sale of the shares has not ceased to apply,

any gains or profits from the right or benefit are —

(c)

deemed to be income derived by the individual one month before the date of cessation of employment or the date the right or benefit is granted, whichever is the later; and

(d)

computed based on the price of the shares in the open market on that date, less the amount paid for the shares.

(7AA) Despite subsection (7), if —(a)

within 5 years after the year in which the later of the dates mentioned in subsection (7)(c) falls, either the individual (X) exercises, assigns, releases or acquires the right or benefit or, if the right or benefit is subject to any restriction on the sale of the shares so acquired, the restriction ceases to apply;

(b)

any gains or profits of X computed in accordance with subsection (6) would have been lower than the amount computed in accordance with subsection (7); and

(c)

X makes an application under subsection (7AC),

then X’s gains or profits from the right or benefit are computed in accordance with subsection (6)(a) to (d) (whichever is applicable) and treated as income derived on the later of the dates mentioned in subsection (7)(c), and is chargeable to tax under subsection (1)(b).

[Act 25 of 2025 wef 08/12/2025]

(7AB) Subsection (7) does not apply if —(a)

within 5 years after the year in which the later of the dates mentioned in subsection (7)(c) falls, the right or benefit of the individual (also called X) to acquire the shares lapses, or is forfeited or cancelled; and

(b)

X makes an application under subsection (7AC).[Act 25 of 2025 wef 08/12/2025]

(7AC) In a case mentioned in subsection (7AA)(a) and (b) or subsection (7AB)(a), X may, within 5 years after the year in which the later of the dates mentioned in subsection (7)(c) falls, apply to the Comptroller to revise any assessment made on X in respect of the gains or profits deemed to be income under subsection (7).[Act 25 of 2025 wef 08/12/2025]

(7A) The Comptroller may, if he or she thinks fit and subject to such condition as he or she may impose, accept from the employer of an individual to whom subsection (7) applies an undertaking —(a)

to make a return, in such form and by such time as the Comptroller may determine, of any gains or profits derived by the individual from the right or benefit to acquire shares in a company as computed under subsection (6);

(b)

to pay to the Comptroller any tax assessed on such gains or profits; and

(c)

to pay the penalties specified in the undertaking for any failure to comply with paragraph (a) or (b).

(7B) Where the Comptroller accepts an undertaking from the employer of an individual under subsection (7A), subsection (7) does not apply to the individual and the individual is to be assessed in accordance with subsection (6).

(7C) If any condition imposed by the Comptroller under subsection (7A) has not been complied with by the employer of an individual, then despite the undertaking given by the employer, the gains or profits derived by the individual from the right or benefit to acquire shares in a company are to be assessed in accordance with subsection (7) and are deemed to be income accruing to the individual in the year in which the condition is not complied with.

(8) Subsection (6)(c) applies, with the necessary modifications, to gains or profits derived by an individual mentioned in subsection (7).

(8A) For the purpose of subsection (1)(d) —(a)

any discount on any debt security is deemed to accrue when the debt security is redeemed;

(b)

subject to any exemption from tax provided under this Act, the discount is deemed to be income chargeable to tax of the holder of the debt security immediately before such redemption; and

(c)

the discount on any debt security is deemed to be an amount equal to the difference between —(i)

the amount payable to the holder of the debt security upon the maturity or any earlier redemption of the debt security; and

(ii)

the amount paid by the first holder of the debt security for the issue of the debt security.

(8B) In subsection (8A), “debt security” has the meaning given by section 43H(4).

(9) For the purposes of subsection (1)(e), the income derived from an annuity for any year is deemed to be an amount equal to 3% of the total consideration payable or paid for the purchase of the annuity except that the whole amount of the annuity is deemed to be income if —(a)

the person deriving income from the annuity has previously received sums equal to the total consideration for the annuity exclusive of the amounts deemed to be income under this subsection; or

(b)

the annuity is purchased by the employer of the person deriving on or after 1 January 1993 such income in lieu of any pension or other benefit payable during the person’s employment or upon his or her retirement.

(10) Subsection (9) does not apply to any annuity purchased under the SRS.

(11) [Deleted by Act 27 of 2009]

(12) Where a person derives interest from a negotiable certificate of deposit or derives gains or profits from the sale thereof, the person’s income is treated as follows:(a)

in the case of a financial institution, the interest and the gains or profits are deemed to be income from a trade or business under subsection (1)(a);

(b)

in any other case, the interest and the gains or profits are deemed to be income from interest under subsection (1)(d) subject to the following provisions:(i)

if the interest is received by a subsequent holder of a certificate of deposit, the income derived from such interest excludes the amount by which the purchase price exceeds the issued price of the certificate, except where that amount has been excluded in the computation of any previous interest derived by the person in respect of that certificate; and

(ii)

where a subsequent holder sells a certificate after receiving interest therefrom, the gains or profits are deemed to be the amount by which the sale price exceeds the issued price or the purchase price, whichever is the lower; and

(c)

for the purposes of paragraph (b), where a subsequent holder purchases a certificate at a price which is less than the issued price and holds the certificate until its maturity, the amount by which the issued price exceeds the purchase price is deemed to be interest derived by the person.

(13) Any maintenance payment received by —(a)

a child under a maintenance order or a deed of separation; or

(b)

a parent under a maintenance order made under the Maintenance of Parents Act 1995,

is not deemed to be income for the purposes of subsection (1).

(14) For the purposes of subsection (1)(a) and (f), the income derived by any author, composer or choreographer, or any company in which he or she beneficially owns all the issued shares, from any royalties or other payments received as consideration for the assignment of or for the right to use the copyright in any literary, dramatic, musical or artistic work, is deemed to be —(a)

the amount of the royalties or other payments remaining after the deductions allowable under Parts 5 and 6 have been made; or

(b)

an amount equal to 10% of the gross amount of the royalties or other payments,

whichever is less.

(14A) Subsection (14) applies —(a)

for income derived in the basis period for the year of assessment 2027, with the modification that the reference to 10% is to 40%; and

(b)

for income derived in the basis period for the year of assessment 2028, with the modification that the reference to 10% is to 70%.[Act 35 of 2024 wef 27/11/2024]

(14B) Subsection (14) does not apply to any income mentioned in that subsection that is derived in the basis period for the year of assessment 2029 or any subsequent year of assessment.[Act 35 of 2024 wef 27/11/2024]

(15) Subsections (14) and (14A) do not apply to royalties or payments received in respect of any work published in any newspaper or periodical.[Act 35 of 2024 wef 27/11/2024]

(16) For the purposes of subsection (1)(a) and (f), the income derived by an individual who is the inventor, author, proprietor, designer or creator (as the case may be) of an approved intellectual property or approved innovation, or by any company in which he or she beneficially owns all the issued shares, from any royalties or other payments received as consideration for the assignment of or the rights in the approved intellectual property or approved innovation is deemed to be —(a)

the amount of the royalties or other payments remaining after the deductions allowable under Parts 5 and 6 have been made; or

(b)

an amount equal to 10% of the gross amount of the royalties or other payments,

whichever is less.

(16A) Subsection (16) does not apply to any income mentioned in that subsection that is derived in the basis period for the year of assessment 2017 or any subsequent year of assessment.[2/2016]

(17) Despite subsection (16), where it appears to the Comptroller that any amount of income which has been determined under that subsection for the purposes of subsection (1)(a) or (f) ought not to have been so determined for any year of assessment, the Comptroller may, within 6 years (if that year of assessment is 2007 or a preceding year of assessment) or 4 years (if that year of assessment is 2008 or a subsequent year of assessment) after the end of that year of assessment, make such assessment or additional assessment upon the individual as may be necessary in order to make good any loss of tax.

(18) In subsection (16) —“approved” means approved for such period not exceeding 5 years by the Minister or such person as the Minister may appoint;

“innovation” means —(a)

any new product or new service, or any new method used in the manufacture or processing of goods or materials or in the provision of services; or

(b)

any substantial improvement in any product or in the provision of any service, or in any method used in the manufacture or processing of goods or materials or in the provision of services,

which involves novelty or originality;

“rights in the approved intellectual property or approved innovation” means the rights relating to any patent, copyright, trade mark, industrial design, layout‑design of integrated circuit, or know‑how of an approved intellectual property or approved innovation, where a substantial part of the work in producing the approved intellectual property or approved innovation is undertaken in Singapore.

(19) Any distribution made by a unit trust approved under section 10A out of gains or profits derived on or after 1 July 1989 from the disposal of securities and which have not been subject to tax is deemed to be income if received by a unit holder except where the unit holder is —(a)

an individual resident in Singapore; or

(b)

a person who is not resident in Singapore and has no permanent establishment in Singapore.

(20) Subject to subsection (20G), any distribution made by a designated unit trust for any year of assessment to any unit holder out of —(a)

gains or profits derived from Singapore or elsewhere from the disposal of securities;

(b)

interest (other than interest for which tax has been deducted under section 45); and

(c)

dividends derived from outside Singapore and received in Singapore,

which do not form part of the statutory income of the designated unit trust by virtue of section 35(12) is, subject to subsection (21), deemed to be income of the unit holder if the unit holder is not a foreign investor.

[37/2014; 2/2016]

(20A) Subject to subsection (20G), any distribution made by a designated unit trust for any year of assessment to any unit holder out of —(a)

gains or profits derived on or after 27 February 2004 from —(i)

foreign exchange transactions;

(ii)

transactions in futures contracts;

(iii)

transactions in interest rate or currency forwards, swaps or option contracts; and

(iv)

transactions in forwards, swaps or option contracts relating to any securities or financial index;

(b)

distributions from foreign unit trusts derived from outside Singapore and received in Singapore on or after 27 February 2004;

(c)

fees and compensatory payments (other than fees and compensatory payments for which tax has been deducted under section 45A) derived on or after 27 February 2004 from securities lending or repurchase arrangements with —(i)

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

(ii)

the Monetary Authority of Singapore;

(iii)

a bank licensed under the Banking Act 1970;

(iv)

a merchant bank licensed under the Banking Act 1970;

(v)

a finance company licensed under the Finance Companies Act 1967;

(vi)

a holder of a capital markets services licence licensed to carry on business in the following regulated activities under the Securities and Futures Act 2001 in force immediately before 8 October 2018, or a company exempted under that Act from holding such a licence:(A)

dealing in securities (other than any person licensed under the Financial Advisers Act 2001);

(B)

fund management;

(C)

securities financing;

(D)

providing custodial services for securities,

where the fees and compensatory payments are derived before 8 October 2018;

(via)

a holder of a capital markets services licence licensed to carry on business in the following regulated activities under the Securities and Futures Act 2001 on or after 8 October 2018, or a company exempted under that Act from holding such a licence:(A)

dealing in capital markets products (other than any person licensed under the Financial Advisers Act 2001);

(B)

fund management;

(C)

product financing; or

(D)

providing custodial services,

where the fees and compensatory payments are derived on or after 8 October 2018;

(vii)

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

(viii)

the Central Depository (Pte) Limited;

(ix)

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

(x)

a trust company licensed under the Trust Companies Act 2005;

(d)

rents and any other income derived from any immovable property situated outside Singapore and received in Singapore on or after 27 February 2004;

(e)

discount derived from outside Singapore and received in Singapore on or after 27 February 2004;

(f)

discount from —(i)

qualifying debt securities issued during the period from 27 February 2004 to 16 February 2006 (both dates inclusive) which mature within one year from the date of issue of those securities; or

(ii)

qualifying debt securities issued during the period from 17 February 2006 to 31 December 2028 (both dates inclusive);[Act 30 of 2023 wef 30/10/2023]

(g)

gains or profits derived on or after 27 February 2004 from the disposal of debentures, stocks, shares, bonds or notes issued by supranational bodies;

(h)

early redemption fee and redemption premium from qualifying debt securities issued during the period from 15 February 2007 to 31 December 2028 (both dates inclusive); and[Act 30 of 2023 wef 15/02/2023]

[Act 30 of 2023 wef 30/10/2023]

(i)

such other income directly attributable to qualifying debt securities issued on or after a prescribed date, as may be prescribed by regulations,

which do not form part of the statutory income of the designated unit trust by virtue of section 35(12) is deemed to be income of the unit holder if the unit holder is not a foreign investor.

[37/2014; 2/2016; 4/2017; 45/2018; 1/2020]

(20B) If —(a)

the income of the trustee of a unit trust, unit trust scheme or exchange traded fund interest scheme (called in this section the unit trust) did not form part of the trustee’s statutory income for one or more past years of assessment by reason of section 35(12); and

(b)

any of the events set out in the first column of the following table occurs,

then a person to whom this subsection applies is treated as having derived, on the date in the second column of the table opposite to that event (called in this subsection and subsections (20C), (20E), (20G) and (20H) the corresponding date), an amount of income that is equal to the prescribed amount of any income referred to in paragraph (a) that has yet to be distributed to any unit holder by the corresponding date:

First column

Second column

Event

Corresponding date

1.

The unit trust is dissolved, and is a designated unit trust for the year of assessment for the basis period in which the dissolution occurred

Date of dissolution

2.

The unit trust is not a designated unit trust within the meaning of section 35 for any year of assessment

Last day of the basis period for the immediately preceding year of assessment

3.

The trustee fails to elect under section 35(12B) for section 35(12) to apply to the trustee’s income for any year of assessment

Last day of the basis period for the immediately preceding year of assessment

4.

The trustee elects under section 35(12B) for section 35(12) to apply to the trustee’s income derived in only a part of the basis period for any year of assessment

Last day of that part of the basis period

[37/2014; 2/2016]

(20C) Subsection (20B) does not apply if the corresponding date is before 1 June 2015.[37/2014]

(20D) Subsection (20B) applies to the following persons:(a)

a unit holder who is not an individual and not a foreign investor;

(b)

a unit holder who is an individual and not a foreign investor, and who holds the units for the purposes of a trade, profession or business;

(c)

a partner who is not an individual and not a foreign investor, of a partnership which is a unit holder;

(d)

a partner who is an individual and not a foreign investor, of a partnership in Singapore which is a unit holder.[37/2014]

(20E) For the purposes of subsection (20B) —(a)

the income referred to in paragraph (a) of that subsection includes the income of the trustee that did not form part of the trustee’s statutory income for one or more years of assessment by reason of section 35(12) or (12A) in force immediately before 1 September 2014;

(b)

the prescribed amount of the income referred to in paragraph (a) of that subsection which is treated as the income of a person referred to in subsection (20D)(a) or (b), is —(i)

the amount of that income that would have been distributed to the person in accordance with the terms of the trust deed of the unit trust, had the income been distributed to unit holders on the corresponding date; or

(ii)

if it is not possible to ascertain that amount under the terms of the trust deed, such part of that income as the total number of units held by the person bears to the total number of units of the unit trust as of the corresponding date;

(c)

the prescribed amount of the income referred to in paragraph (a) of that subsection which is treated as the income of a person referred to in subsection (20D)(c) or (d), is the share of the following amount that the person would have been entitled to as a partner of the partnership:(i)

the amount of that income that would have been distributed in accordance with the terms of the trust deed of the unit trust to the partnership, had the income been distributed to unit holders on the corresponding date; or

(ii)

if it is not possible to ascertain that amount under the terms of the trust deed, such part of that income as the total number of units held by the partnership bears to the total number of units of the trust as of the corresponding date; and

(d)

where the person referred to in subsection (20D) is an individual resident in Singapore, the prescribed amount of the income referred to in subsection (20B)(a) does not include the amount of any gains or profits referred to in subsection (20)(a).[37/2014]

(20F) The trustee of the unit trust to which subsection (20B) applies must, within such reasonable time after the occurrence of the event mentioned in that subsection as the Comptroller may specify and in such form and manner as the Comptroller may specify, give notice of the occurrence to —(a)

the Comptroller; and

(b)

every person referred to in subsection (20D).[37/2014]

(20G) Where subsection (20B) has applied in relation to a unit trust —(a)

the amount of the income referred to in subsection (20B)(a) that has yet to be distributed to the unit holders of the unit trust by the corresponding date in question is treated, for the purposes of any subsequent application of subsection (20B) in relation to that unit trust, as having been distributed by the unit trust to its unit holders immediately after that corresponding date; and

(b)

subsections (20) and (20A) do not apply to any subsequent distribution by the unit trust to its unit holders of any income referred to in paragraph (a).[2/2016]

(20H) Where —(a)

by reason of the application of subsection (20B) in relation to a unit trust, a person is treated as having derived on the corresponding date in question an amount of income that is equal to the prescribed amount of income referred to in subsection (20B)(a); and

(b)

at any time after that corresponding date, the person disposes of units in the unit trust,

then the amount of any gains or profits derived from that disposal that is chargeable with tax under subsection (1)(a) is to be reduced by the amount of the income referred to in subsection (20E)(b)(i) or (ii) or (c)(i) or (ii) (whichever is applicable), that corresponds to the units disposed of.

[2/2016]

(21) Where any distribution made out of gains or profits referred to in subsection (20)(a) is made to a unit holder who is an individual resident in Singapore, the distribution, if made on or after 28 February 1998, is not deemed to be income of that unit holder.

(22) Where a designated unit trust had also been approved under section 10A, any distribution made by the designated unit trust out of any income (including gains or profits from the disposal of securities) derived by it during the period the designated unit trust was approved under section 10A is treated as income of a unit holder in accordance with subsection (19) and section 35(11) and (15).

(23) In subsections (20), (20A), (20B), (20D), (21) and (22) —[Deleted by Act 30 of 2023 wef 15/02/2023]

“compensatory payment” has the meaning given by section 10H(12);

“designated unit trust”, in relation to any year of assessment, has the meaning given by section 35(14);

“early redemption fee” and “redemption premium” have the meanings given by section 13(16);[Act 30 of 2023 wef 15/02/2023]

“financial index” includes any currency, interest rate, share, stock or bond index;

“foreign investor” —(a)

in relation to an individual, means an individual who is not resident in Singapore;

(b)

in relation to a company, means a company which is neither resident in Singapore nor carrying on business through a permanent establishment in Singapore, and not less than 80% of the total number of the issued shares of which are beneficially owned, directly or indirectly, by persons who are not citizens of Singapore and not resident in Singapore; and

(c)

in relation to a trust fund, means a trust fund where at least 80% of the value of the fund is beneficially held, directly or indirectly, by foreign investors referred to in paragraph (a) or (b) and, unless waived by the Minister or an authorised body, where —(i)

the fund is created outside Singapore; and

(ii)

the trustees of the fund are neither citizens of Singapore nor resident in Singapore, nor do they carry out duties as such trustees through a permanent establishment in Singapore;[Act 41 of 2020 wef 06/12/2022]

“qualifying debt securities” has the meaning given by section 13(16);

“securities” means —(a)

debentures, stocks, shares, bonds or notes issued by a government or company;

(b)

any right or option in respect of any such debentures, stocks, shares, bonds or notes; or

(c)

units in any unit trust within the meaning of section 10A;

“securities lending or repurchase arrangement” has the meaning given by section 10H(12).[37/2014; 32/2019]

(24) For the purposes of subsection (2)(d), the sum standing to the account of any individual in any pension or provident fund or society, other than a pension or provident fund to which section 10B applies, is deemed to accrue to the individual on the date he or she is entitled to the sum upon retirement or on the date he or she withdraws any sum before his or her retirement (as the case may be) except that where upon his or her retirement an individual is entitled to elect under the rules or constitution of the pension or provident fund or society as to the manner and amount of the sum to be withdrawn, only the amount so withdrawn is deemed to be income of the individual accruing on the date of withdrawal.

(25) To avoid doubt, it is declared that the amounts described in the following paragraphs are income received in Singapore from outside Singapore whether or not the source from which the income is derived has ceased:(a)

any amount from any income derived from outside Singapore which is remitted to, transmitted or brought into, Singapore;

(b)

any amount from any income derived from outside Singapore which is applied in or towards satisfaction of any debt incurred in respect of a trade or business carried on in Singapore; and

(c)

any amount from any income derived from outside Singapore which is applied to purchase any movable property which is brought into Singapore.

(26) Any payment accrued to a self‑employed individual under section 9, 12A, 12AB, 12B, 12DA, 12DC, 12E, 12H or 12HA of the Child Development Co‑Savings Act 2001 is deemed to be income from his or her trade, business, profession or vocation chargeable to tax under subsection (1)(a).[Act 30 of 2023 wef 01/05/2013]

[Act 30 of 2023 wef 01/11/2021]

[Act 46 of 2024 wef 01/04/2025]

(27) Where any income is derived by a special purpose vehicle under any approved Islamic debt securities arrangement entered into on or after 17 February 2006, the income is deemed to have been derived at the end of the arrangement by the originator of the arrangement.

(28) In subsection (27) —“approved” means approved by the Minister or an authorised body, subject to such conditions as the Minister or authorised body may impose;[Act 41 of 2020 wef 06/12/2022]

“Islamic debt securities” has the meaning given by section 43H(4);

“Islamic debt securities arrangement” means an arrangement under which —(a)

immovable properties in Singapore are acquired by a special purpose vehicle from a person (called in this subsection and subsection (27) the originator) where the acquisition is funded through the issuance of Islamic debt securities by the special purpose vehicle;

(b)

the immovable properties are leased by the special purpose vehicle to the originator; and

(c)

the immovable properties are reacquired by the originator upon the maturity of the Islamic debt securities;

“special purpose vehicle” means a company whose only business is to acquire the originator’s immovable properties in Singapore, lease them back to the originator and transfer such properties to the originator upon the maturity of the Islamic debt securities.

—(1) Income tax is, subject to the provisions of this Act, payable at the rate or rates specified hereinafter for each year of assessment upon the income of any person accruing in or derived from Singapore or received in Singapore from outside Singapore in respect of —(a)

gains or profits from any trade, business, profession or vocation, for whatever period of time such trade, business, profession or vocation may have been carried on or exercised;

(b)

gains or profits from any employment;

(c)

[Deleted by Act 29 of 1965]

(d)

dividends, interest or discounts;

(e)

any pension, charge or annuity;

(f)

rents, royalties, premiums and any other profits arising from property; and

(g)

any gains or profits of an income nature not falling within any of the preceding paragraphs.

(2) In subsection (1)(b), “gains or profits from any employment” means —(a)

any wages, salary, leave pay, fee, commission, bonus, gratuity, perquisite or allowance (other than a subsistence, travelling, conveyance or entertainment allowance which is proved to the Comptroller’s satisfaction to have been expended for purposes other than those in respect of which no deduction is allowed under section 15) paid or granted in respect of the employment whether in money or otherwise;

(b)

the value of any food, clothing or lodging provided or paid for by the employer;

(c)

for the year of assessment 2014 and any preceding year of assessment, the annual value of any place of residence provided by the employer and for the purposes of this paragraph —(i)

if the remuneration received by a director of a company is less than the annual value of the premises, the full annual value is deemed to be gains or profits of the employment;

(ii)

except as provided in sub‑paragraph (i), if the annual value of the premises exceeds 10% of the gains or profits from the employment mentioned in paragraphs (a) and (b) less the rent (if any) paid by the employee for the use of the premises, the excess is disregarded;

(iii)

where the premises are shared, “place of residence” means the part of the premises occupied by the person chargeable;

(ca)

for any year of assessment between the years of assessment 2015 and 2019 (both years inclusive), the annual value of any place of residence provided by the employer (or the part thereof occupied by the employee if the premises are shared with another) less the rent (if any) paid by the employee for the use of the premises;

(cb)

for the year of assessment 2020 and subsequent years of assessment, either —(i)

the rent paid by the employer for any place of residence provided by the employer (or the part of such place of residence occupied by the employee if the premises are shared with another), including for any furniture and fittings in that place or part; or

(ii)

if no such rent is paid, the annual value of such place or part, less any rent paid by the employee for the place or part;

(d)

any sum standing to the account of any individual in any pension or provident fund or society which the individual is entitled to withdraw upon retirement or which is withdrawn therefrom.[45/2018]

(2A) For the purposes of subsection (2)(ca) and (cb)(ii), in a case where no annual value or separate annual value is ascribed to any place of residence in the Valuation List prepared under section 10 of the Property Tax Act 1960, the annual value is to be ascertained in accordance with the definition of that term in section 2 of that Act.[37/2014; 45/2018]

(2AA) Where the Comptroller is not satisfied that the rent mentioned in subsection (2)(cb)(i) is reasonable after having regard to the rent that a lessee might reasonably be expected to pay under a lease of the place or part (including the furniture and fittings) if it were unoccupied and offered for renting, the Comptroller may adopt either —(a)

the annual value of the place of residence provided by the employer (or the part of such place of residence occupied by the employee if the premises are shared with another), less any rent paid by the employee for the place or part; or

(b)

in a case where no annual value or separate annual value is ascribed to such place of residence in the Valuation List prepared under section 10 of the Property Tax Act 1960, such other value as appears to the Comptroller to be reasonable in the circumstances.[45/2018]

(2AB) In a case where —(a)

subsection (2)(cb)(i) applies; and

(b)

the rent paid by the employer under that provision includes rent for any furniture and fittings in the place or part,

then, despite subsection (2)(a), no further account is to be taken of those furniture and fittings in determining the gains or profits of the employee from the employment.

[45/2018]

(2AC) However (and to avoid doubt), subsection (2AB) does not apply in a case where the Comptroller exercises his or her power under subsection (2AA).[45/2018]

(2B) For the purposes of subsection (2), the Minister may, for the purposes of such year of assessment as he or she may specify, by regulations prescribe the value of any furniture and fittings in any place of residence.[37/2014]

(3) Any sum realised under any insurance against loss of profits must be taken into account in the ascertainment of any profits or income.

(4) Where, under section 17, 20 or 21, a balancing charge falls to be made, the amount thereof is deemed to be income chargeable with tax under this Act, except in the case of a balancing charge in respect of —(a)

a Singapore ship which is owned by a shipping enterprise within the meaning of section 13A or by an approved shipping investment enterprise within the meaning of section 13P at the time the balancing charge falls to be made in respect of the Singapore ship, but only up to the amount ascertained in accordance with the formula

where A

is the amount of allowances under section 19 or 19A made to the enterprise in respect of the Singapore ship against any income exempt from tax under section 13A or 13P;

B

is the total amount of allowances under section 19 or 19A which have been made in respect of the ship during the period it is owned by the enterprise; and

C

is the amount of balancing charge;

(b)

a foreign ship or provisionally registered ship the income derived from the operation of which is exempt from tax under section 13A or 13E, or the income derived from the chartering or finance leasing of which is exempt from tax under section 13P (as the case may be) but only up to the amount ascertained in accordance with the formula

where X

is the amount of allowances under section 19 or 19A made to the enterprise in respect of the foreign ship or provisionally registered ship against any income exempt from tax under section 13A, 13E or 13P, as the case may be;

Y

is the total amount of allowances under section 19 or 19A which have been made in respect of the ship during the period it is owned by the enterprise; and

Z

is the amount of balancing charge.

[Act 33 of 2022 wef 04/11/2022]

(5) In subsection (4) —“foreign ship” has the meaning given by section 13E(6);

“Singapore ship” and “provisionally registered ship” have the meanings given by section 13A(16).[2/2016]

[Act 33 of 2022 wef 04/11/2022]

(5A) In subsection (4), “finance leasing” has the meaning given by section 13P(20).[2/2016]

(6) Any gains or profits, directly or indirectly, derived by any person from a right or benefit granted on or after 1 January 2003, whether granted in the person’s name or in the name of the person’s nominee or agent, to acquire shares in any company are, where the right or benefit is obtained by that person by reason of any office or employment held by the person, deemed to be income chargeable to tax under subsection (1)(b), accruing at such time and of such amount as determined under the following provisions:(a)

where the right or benefit is exercised, assigned, released or acquired — at the time of the exercise, assignment, release or acquisition of the right or benefit and the gains or profits are the price of the shares in the open market at that time, less any amount paid for the shares;

(b)

despite paragraph (a), where the right or benefit granted is subject to any restriction on the sale of the shares so acquired — at the time the restriction ceases to apply and the gains or profits are the price of the shares in the open market at that time, less any amount paid for the shares;

(c)

if it is not possible to determine the gains or profits under paragraph (a) or (b), the Comptroller may use the net asset value of the shares, less any amount paid for the shares, as the basis for determining the gains or profits;

(d)

despite paragraphs (a) and (c), any gains or profits derived by the person by any exercise of a right or benefit to acquire shares in any company listed on the Singapore Exchange are computed in accordance with the formula

where A

is —

(i)

if the shares are not treasury shares, the price of the shares in the open market at the last transaction on the date on which the shares are first listed on the Singapore Exchange after the acquisition of the shares by the person; and

(ii)

if the shares are treasury shares, the price of the shares in the open market at the last transaction on the date an appropriate entry is made in the Depository Register by the Central Depository (Pte) Ltd to effect the acquisition of the treasury shares by the person; and

B

is the amount paid for such shares;

(e)

“shares” includes stocks.

(6A) To avoid doubt, section 10(5) in force immediately before 10 December 2002 continues to apply to any gains or profits directly or indirectly derived by the exercise, assignment or release of any right or benefit to acquire shares (including stocks) in a company granted to a person before 1 January 2003, whether in his or her name or in the name of his or her nominee or agent, where the right or benefit was obtained by that person by reason of any office or employment held by him or her.

(7) Despite subsection (6), where —(a)

the right or benefit to acquire shares in a company is granted on or after 1 January 2003 to an individual while he or she is exercising an employment in Singapore; and

(b)

immediately before he or she ceases that employment —(i)

the individual is neither a citizen of Singapore nor a Singapore permanent resident, or being a Singapore permanent resident is leaving Singapore permanently; and

(ii)

the right or benefit is not exercised, assigned, released or acquired by him or her, or the restriction on the sale of the shares has not ceased to apply,

any gains or profits from the right or benefit are —

(c)

deemed to be income derived by the individual one month before the date of cessation of employment or the date the right or benefit is granted, whichever is the later; and

(d)

computed based on the price of the shares in the open market on that date, less the amount paid for the shares.

(7AA) Despite subsection (7), if —(a)

within 5 years after the year in which the later of the dates mentioned in subsection (7)(c) falls, either the individual (X) exercises, assigns, releases or acquires the right or benefit or, if the right or benefit is subject to any restriction on the sale of the shares so acquired, the restriction ceases to apply;

(b)

any gains or profits of X computed in accordance with subsection (6) would have been lower than the amount computed in accordance with subsection (7); and

(c)

X makes an application under subsection (7AC),

then X’s gains or profits from the right or benefit are computed in accordance with subsection (6)(a) to (d) (whichever is applicable) and treated as income derived on the later of the dates mentioned in subsection (7)(c), and is chargeable to tax under subsection (1)(b).

[Act 25 of 2025 wef 08/12/2025]

(7AB) Subsection (7) does not apply if —(a)

within 5 years after the year in which the later of the dates mentioned in subsection (7)(c) falls, the right or benefit of the individual (also called X) to acquire the shares lapses, or is forfeited or cancelled; and

(b)

X makes an application under subsection (7AC).[Act 25 of 2025 wef 08/12/2025]

(7AC) In a case mentioned in subsection (7AA)(a) and (b) or subsection (7AB)(a), X may, within 5 years after the year in which the later of the dates mentioned in subsection (7)(c) falls, apply to the Comptroller to revise any assessment made on X in respect of the gains or profits deemed to be income under subsection (7).[Act 25 of 2025 wef 08/12/2025]

(7A) The Comptroller may, if he or she thinks fit and subject to such condition as he or she may impose, accept from the employer of an individual to whom subsection (7) applies an undertaking —(a)

to make a return, in such form and by such time as the Comptroller may determine, of any gains or profits derived by the individual from the right or benefit to acquire shares in a company as computed under subsection (6);

(b)

to pay to the Comptroller any tax assessed on such gains or profits; and

(c)

to pay the penalties specified in the undertaking for any failure to comply with paragraph (a) or (b).

(7B) Where the Comptroller accepts an undertaking from the employer of an individual under subsection (7A), subsection (7) does not apply to the individual and the individual is to be assessed in accordance with subsection (6).

(7C) If any condition imposed by the Comptroller under subsection (7A) has not been complied with by the employer of an individual, then despite the undertaking given by the employer, the gains or profits derived by the individual from the right or benefit to acquire shares in a company are to be assessed in accordance with subsection (7) and are deemed to be income accruing to the individual in the year in which the condition is not complied with.

(8) Subsection (6)(c) applies, with the necessary modifications, to gains or profits derived by an individual mentioned in subsection (7).

(8A) For the purpose of subsection (1)(d) —(a)

any discount on any debt security is deemed to accrue when the debt security is redeemed;

(b)

subject to any exemption from tax provided under this Act, the discount is deemed to be income chargeable to tax of the holder of the debt security immediately before such redemption; and

(c)

the discount on any debt security is deemed to be an amount equal to the difference between —(i)

the amount payable to the holder of the debt security upon the maturity or any earlier redemption of the debt security; and

(ii)

the amount paid by the first holder of the debt security for the issue of the debt security.

(8B) In subsection (8A), “debt security” has the meaning given by section 43H(4).

(9) For the purposes of subsection (1)(e), the income derived from an annuity for any year is deemed to be an amount equal to 3% of the total consideration payable or paid for the purchase of the annuity except that the whole amount of the annuity is deemed to be income if —(a)

the person deriving income from the annuity has previously received sums equal to the total consideration for the annuity exclusive of the amounts deemed to be income under this subsection; or

(b)

the annuity is purchased by the employer of the person deriving on or after 1 January 1993 such income in lieu of any pension or other benefit payable during the person’s employment or upon his or her retirement.

(10) Subsection (9) does not apply to any annuity purchased under the SRS.

(11) [Deleted by Act 27 of 2009]

(12) Where a person derives interest from a negotiable certificate of deposit or derives gains or profits from the sale thereof, the person’s income is treated as follows:(a)

in the case of a financial institution, the interest and the gains or profits are deemed to be income from a trade or business under subsection (1)(a);

(b)

in any other case, the interest and the gains or profits are deemed to be income from interest under subsection (1)(d) subject to the following provisions:(i)

if the interest is received by a subsequent holder of a certificate of deposit, the income derived from such interest excludes the amount by which the purchase price exceeds the issued price of the certificate, except where that amount has been excluded in the computation of any previous interest derived by the person in respect of that certificate; and

(ii)

where a subsequent holder sells a certificate after receiving interest therefrom, the gains or profits are deemed to be the amount by which the sale price exceeds the issued price or the purchase price, whichever is the lower; and

(c)

for the purposes of paragraph (b), where a subsequent holder purchases a certificate at a price which is less than the issued price and holds the certificate until its maturity, the amount by which the issued price exceeds the purchase price is deemed to be interest derived by the person.

(13) Any maintenance payment received by —(a)

a child under a maintenance order or a deed of separation; or

(b)

a parent under a maintenance order made under the Maintenance of Parents Act 1995,

is not deemed to be income for the purposes of subsection (1).

(14) For the purposes of subsection (1)(a) and (f), the income derived by any author, composer or choreographer, or any company in which he or she beneficially owns all the issued shares, from any royalties or other payments received as consideration for the assignment of or for the right to use the copyright in any literary, dramatic, musical or artistic work, is deemed to be —(a)

the amount of the royalties or other payments remaining after the deductions allowable under Parts 5 and 6 have been made; or

(b)

an amount equal to 10% of the gross amount of the royalties or other payments,

whichever is less.

(14A) Subsection (14) applies —(a)

for income derived in the basis period for the year of assessment 2027, with the modification that the reference to 10% is to 40%; and

(b)

for income derived in the basis period for the year of assessment 2028, with the modification that the reference to 10% is to 70%.[Act 35 of 2024 wef 27/11/2024]

(14B) Subsection (14) does not apply to any income mentioned in that subsection that is derived in the basis period for the year of assessment 2029 or any subsequent year of assessment.[Act 35 of 2024 wef 27/11/2024]

(15) Subsections (14) and (14A) do not apply to royalties or payments received in respect of any work published in any newspaper or periodical.[Act 35 of 2024 wef 27/11/2024]

(16) For the purposes of subsection (1)(a) and (f), the income derived by an individual who is the inventor, author, proprietor, designer or creator (as the case may be) of an approved intellectual property or approved innovation, or by any company in which he or she beneficially owns all the issued shares, from any royalties or other payments received as consideration for the assignment of or the rights in the approved intellectual property or approved innovation is deemed to be —(a)

the amount of the royalties or other payments remaining after the deductions allowable under Parts 5 and 6 have been made; or

(b)

an amount equal to 10% of the gross amount of the royalties or other payments,

whichever is less.

(16A) Subsection (16) does not apply to any income mentioned in that subsection that is derived in the basis period for the year of assessment 2017 or any subsequent year of assessment.[2/2016]

(17) Despite subsection (16), where it appears to the Comptroller that any amount of income which has been determined under that subsection for the purposes of subsection (1)(a) or (f) ought not to have been so determined for any year of assessment, the Comptroller may, within 6 years (if that year of assessment is 2007 or a preceding year of assessment) or 4 years (if that year of assessment is 2008 or a subsequent year of assessment) after the end of that year of assessment, make such assessment or additional assessment upon the individual as may be necessary in order to make good any loss of tax.

(18) In subsection (16) —“approved” means approved for such period not exceeding 5 years by the Minister or such person as the Minister may appoint;

“innovation” means —(a)

any new product or new service, or any new method used in the manufacture or processing of goods or materials or in the provision of services; or

(b)

any substantial improvement in any product or in the provision of any service, or in any method used in the manufacture or processing of goods or materials or in the provision of services,

which involves novelty or originality;

“rights in the approved intellectual property or approved innovation” means the rights relating to any patent, copyright, trade mark, industrial design, layout‑design of integrated circuit, or know‑how of an approved intellectual property or approved innovation, where a substantial part of the work in producing the approved intellectual property or approved innovation is undertaken in Singapore.

(19) Any distribution made by a unit trust approved under section 10A out of gains or profits derived on or after 1 July 1989 from the disposal of securities and which have not been subject to tax is deemed to be income if received by a unit holder except where the unit holder is —(a)

an individual resident in Singapore; or

(b)

a person who is not resident in Singapore and has no permanent establishment in Singapore.

(20) Subject to subsection (20G), any distribution made by a designated unit trust for any year of assessment to any unit holder out of —(a)

gains or profits derived from Singapore or elsewhere from the disposal of securities;

(b)

interest (other than interest for which tax has been deducted under section 45); and

(c)

dividends derived from outside Singapore and received in Singapore,

which do not form part of the statutory income of the designated unit trust by virtue of section 35(12) is, subject to subsection (21), deemed to be income of the unit holder if the unit holder is not a foreign investor.

[37/2014; 2/2016]

(20A) Subject to subsection (20G), any distribution made by a designated unit trust for any year of assessment to any unit holder out of —(a)

gains or profits derived on or after 27 February 2004 from —(i)

foreign exchange transactions;

(ii)

transactions in futures contracts;

(iii)

transactions in interest rate or currency forwards, swaps or option contracts; and

(iv)

transactions in forwards, swaps or option contracts relating to any securities or financial index;

(b)

distributions from foreign unit trusts derived from outside Singapore and received in Singapore on or after 27 February 2004;

(c)

fees and compensatory payments (other than fees and compensatory payments for which tax has been deducted under section 45A) derived on or after 27 February 2004 from securities lending or repurchase arrangements with —(i)

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

(ii)

the Monetary Authority of Singapore;

(iii)

a bank licensed under the Banking Act 1970;

(iv)

a merchant bank licensed under the Banking Act 1970;

(v)

a finance company licensed under the Finance Companies Act 1967;

(vi)

a holder of a capital markets services licence licensed to carry on business in the following regulated activities under the Securities and Futures Act 2001 in force immediately before 8 October 2018, or a company exempted under that Act from holding such a licence:(A)

dealing in securities (other than any person licensed under the Financial Advisers Act 2001);

(B)

fund management;

(C)

securities financing;

(D)

providing custodial services for securities,

where the fees and compensatory payments are derived before 8 October 2018;

(via)

a holder of a capital markets services licence licensed to carry on business in the following regulated activities under the Securities and Futures Act 2001 on or after 8 October 2018, or a company exempted under that Act from holding such a licence:(A)

dealing in capital markets products (other than any person licensed under the Financial Advisers Act 2001);

(B)

fund management;

(C)

product financing; or

(D)

providing custodial services,

where the fees and compensatory payments are derived on or after 8 October 2018;

(vii)

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

(viii)

the Central Depository (Pte) Limited;

(ix)

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

(x)

a trust company licensed under the Trust Companies Act 2005;

(d)

rents and any other income derived from any immovable property situated outside Singapore and received in Singapore on or after 27 February 2004;

(e)

discount derived from outside Singapore and received in Singapore on or after 27 February 2004;

(f)

discount from —(i)

qualifying debt securities issued during the period from 27 February 2004 to 16 February 2006 (both dates inclusive) which mature within one year from the date of issue of those securities; or

(ii)

qualifying debt securities issued during the period from 17 February 2006 to 31 December 2028 (both dates inclusive);[Act 30 of 2023 wef 30/10/2023]

(g)

gains or profits derived on or after 27 February 2004 from the disposal of debentures, stocks, shares, bonds or notes issued by supranational bodies;

(h)

early redemption fee and redemption premium from qualifying debt securities issued during the period from 15 February 2007 to 31 December 2028 (both dates inclusive); and[Act 30 of 2023 wef 15/02/2023]

[Act 30 of 2023 wef 30/10/2023]

(i)

such other income directly attributable to qualifying debt securities issued on or after a prescribed date, as may be prescribed by regulations,

which do not form part of the statutory income of the designated unit trust by virtue of section 35(12) is deemed to be income of the unit holder if the unit holder is not a foreign investor.

[37/2014; 2/2016; 4/2017; 45/2018; 1/2020]

(20B) If —(a)

the income of the trustee of a unit trust, unit trust scheme or exchange traded fund interest scheme (called in this section the unit trust) did not form part of the trustee’s statutory income for one or more past years of assessment by reason of section 35(12); and

(b)

any of the events set out in the first column of the following table occurs,

then a person to whom this subsection applies is treated as having derived, on the date in the second column of the table opposite to that event (called in this subsection and subsections (20C), (20E), (20G) and (20H) the corresponding date), an amount of income that is equal to the prescribed amount of any income referred to in paragraph (a) that has yet to be distributed to any unit holder by the corresponding date:

First column

Second column

Event

Corresponding date

1.

The unit trust is dissolved, and is a designated unit trust for the year of assessment for the basis period in which the dissolution occurred

Date of dissolution

2.

The unit trust is not a designated unit trust within the meaning of section 35 for any year of assessment

Last day of the basis period for the immediately preceding year of assessment

3.

The trustee fails to elect under section 35(12B) for section 35(12) to apply to the trustee’s income for any year of assessment

Last day of the basis period for the immediately preceding year of assessment

4.

The trustee elects under section 35(12B) for section 35(12) to apply to the trustee’s income derived in only a part of the basis period for any year of assessment

Last day of that part of the basis period

[37/2014; 2/2016]

(20C) Subsection (20B) does not apply if the corresponding date is before 1 June 2015.[37/2014]

(20D) Subsection (20B) applies to the following persons:(a)

a unit holder who is not an individual and not a foreign investor;

(b)

a unit holder who is an individual and not a foreign investor, and who holds the units for the purposes of a trade, profession or business;

(c)

a partner who is not an individual and not a foreign investor, of a partnership which is a unit holder;

(d)

a partner who is an individual and not a foreign investor, of a partnership in Singapore which is a unit holder.[37/2014]

(20E) For the purposes of subsection (20B) —(a)

the income referred to in paragraph (a) of that subsection includes the income of the trustee that did not form part of the trustee’s statutory income for one or more years of assessment by reason of section 35(12) or (12A) in force immediately before 1 September 2014;

(b)

the prescribed amount of the income referred to in paragraph (a) of that subsection which is treated as the income of a person referred to in subsection (20D)(a) or (b), is —(i)

the amount of that income that would have been distributed to the person in accordance with the terms of the trust deed of the unit trust, had the income been distributed to unit holders on the corresponding date; or

(ii)

if it is not possible to ascertain that amount under the terms of the trust deed, such part of that income as the total number of units held by the person bears to the total number of units of the unit trust as of the corresponding date;

(c)

the prescribed amount of the income referred to in paragraph (a) of that subsection which is treated as the income of a person referred to in subsection (20D)(c) or (d), is the share of the following amount that the person would have been entitled to as a partner of the partnership:(i)

the amount of that income that would have been distributed in accordance with the terms of the trust deed of the unit trust to the partnership, had the income been distributed to unit holders on the corresponding date; or

(ii)

if it is not possible to ascertain that amount under the terms of the trust deed, such part of that income as the total number of units held by the partnership bears to the total number of units of the trust as of the corresponding date; and

(d)

where the person referred to in subsection (20D) is an individual resident in Singapore, the prescribed amount of the income referred to in subsection (20B)(a) does not include the amount of any gains or profits referred to in subsection (20)(a).[37/2014]

(20F) The trustee of the unit trust to which subsection (20B) applies must, within such reasonable time after the occurrence of the event mentioned in that subsection as the Comptroller may specify and in such form and manner as the Comptroller may specify, give notice of the occurrence to —(a)

the Comptroller; and

(b)

every person referred to in subsection (20D).[37/2014]

(20G) Where subsection (20B) has applied in relation to a unit trust —(a)

the amount of the income referred to in subsection (20B)(a) that has yet to be distributed to the unit holders of the unit trust by the corresponding date in question is treated, for the purposes of any subsequent application of subsection (20B) in relation to that unit trust, as having been distributed by the unit trust to its unit holders immediately after that corresponding date; and

(b)

subsections (20) and (20A) do not apply to any subsequent distribution by the unit trust to its unit holders of any income referred to in paragraph (a).[2/2016]

(20H) Where —(a)

by reason of the application of subsection (20B) in relation to a unit trust, a person is treated as having derived on the corresponding date in question an amount of income that is equal to the prescribed amount of income referred to in subsection (20B)(a); and

(b)

at any time after that corresponding date, the person disposes of units in the unit trust,

then the amount of any gains or profits derived from that disposal that is chargeable with tax under subsection (1)(a) is to be reduced by the amount of the income referred to in subsection (20E)(b)(i) or (ii) or (c)(i) or (ii) (whichever is applicable), that corresponds to the units disposed of.

[2/2016]

(21) Where any distribution made out of gains or profits referred to in subsection (20)(a) is made to a unit holder who is an individual resident in Singapore, the distribution, if made on or after 28 February 1998, is not deemed to be income of that unit holder.

(22) Where a designated unit trust had also been approved under section 10A, any distribution made by the designated unit trust out of any income (including gains or profits from the disposal of securities) derived by it during the period the designated unit trust was approved under section 10A is treated as income of a unit holder in accordance with subsection (19) and section 35(11) and (15).

(23) In subsections (20), (20A), (20B), (20D), (21) and (22) —[Deleted by Act 30 of 2023 wef 15/02/2023]

“compensatory payment” has the meaning given by section 10H(12);

“designated unit trust”, in relation to any year of assessment, has the meaning given by section 35(14);

“early redemption fee” and “redemption premium” have the meanings given by section 13(16);[Act 30 of 2023 wef 15/02/2023]

“financial index” includes any currency, interest rate, share, stock or bond index;

“foreign investor” —(a)

in relation to an individual, means an individual who is not resident in Singapore;

(b)

in relation to a company, means a company which is neither resident in Singapore nor carrying on business through a permanent establishment in Singapore, and not less than 80% of the total number of the issued shares of which are beneficially owned, directly or indirectly, by persons who are not citizens of Singapore and not resident in Singapore; and

(c)

in relation to a trust fund, means a trust fund where at least 80% of the value of the fund is beneficially held, directly or indirectly, by foreign investors referred to in paragraph (a) or (b) and, unless waived by the Minister or an authorised body, where —(i)

the fund is created outside Singapore; and

(ii)

the trustees of the fund are neither citizens of Singapore nor resident in Singapore, nor do they carry out duties as such trustees through a permanent establishment in Singapore;[Act 41 of 2020 wef 06/12/2022]

“qualifying debt securities” has the meaning given by section 13(16);

“securities” means —(a)

debentures, stocks, shares, bonds or notes issued by a government or company;

(b)

any right or option in respect of any such debentures, stocks, shares, bonds or notes; or

(c)

units in any unit trust within the meaning of section 10A;

“securities lending or repurchase arrangement” has the meaning given by section 10H(12).[37/2014; 32/2019]

(24) For the purposes of subsection (2)(d), the sum standing to the account of any individual in any pension or provident fund or society, other than a pension or provident fund to which section 10B applies, is deemed to accrue to the individual on the date he or she is entitled to the sum upon retirement or on the date he or she withdraws any sum before his or her retirement (as the case may be) except that where upon his or her retirement an individual is entitled to elect under the rules or constitution of the pension or provident fund or society as to the manner and amount of the sum to be withdrawn, only the amount so withdrawn is deemed to be income of the individual accruing on the date of withdrawal.

(25) To avoid doubt, it is declared that the amounts described in the following paragraphs are income received in Singapore from outside Singapore whether or not the source from which the income is derived has ceased:(a)

any amount from any income derived from outside Singapore which is remitted to, transmitted or brought into, Singapore;

(b)

any amount from any income derived from outside Singapore which is applied in or towards satisfaction of any debt incurred in respect of a trade or business carried on in Singapore; and

(c)

any amount from any income derived from outside Singapore which is applied to purchase any movable property which is brought into Singapore.

(26) Any payment accrued to a self‑employed individual under section 9, 12A, 12AB, 12B, 12DA, 12DC, 12E, 12H or 12HA of the Child Development Co‑Savings Act 2001 is deemed to be income from his or her trade, business, profession or vocation chargeable to tax under subsection (1)(a).[Act 30 of 2023 wef 01/05/2013]

[Act 30 of 2023 wef 01/11/2021]

[Act 46 of 2024 wef 01/04/2025]

(27) Where any income is derived by a special purpose vehicle under any approved Islamic debt securities arrangement entered into on or after 17 February 2006, the income is deemed to have been derived at the end of the arrangement by the originator of the arrangement.

(28) In subsection (27) —“approved” means approved by the Minister or an authorised body, subject to such conditions as the Minister or authorised body may impose;[Act 41 of 2020 wef 06/12/2022]

“Islamic debt securities” has the meaning given by section 43H(4);

“Islamic debt securities arrangement” means an arrangement under which —(a)

immovable properties in Singapore are acquired by a special purpose vehicle from a person (called in this subsection and subsection (27) the originator) where the acquisition is funded through the issuance of Islamic debt securities by the special purpose vehicle;

(b)

the immovable properties are leased by the special purpose vehicle to the originator; and

(c)

the immovable properties are reacquired by the originator upon the maturity of the Islamic debt securities;

“special purpose vehicle” means a company whose only business is to acquire the originator’s immovable properties in Singapore, lease them back to the originator and transfer such properties to the originator upon the maturity of the Islamic debt securities.