§ 10E — Ascertainment of income from certain public‑private partnership arrangements

10E.—(1) Where —(a)

a contract is entered into on or after 29 December 2009 between the Government or any approved statutory body and any person under a public‑private partnership arrangement; and

(b)

the contract is or contains a finance lease recognised as such by the lessor in accordance with FRS 17 read with INT FRS 104, FRS 116, SFRS(I) 1‑17 read with SFRS(I) INT 4, or SFRS(I) 16, the Government or the approved statutory body being the lessee and the person being the lessor,

then —

(c)

despite any provisions under Part 6, the allowances under section 16, 17, 18B, 18C, 19, 19A, 20, 21, 22 or 23 in respect of any building or structure, or any machinery or plant, which is a subject of that finance lease, are not to be made to the person, but to the Government or the approved statutory body, as the case may be; and

(d)

the person must not be assessed to tax on that part of the lease payment under that finance lease that is attributable to repayment of principal.[45/2018]

(1A) Despite any other provision of this Act, where —(a)

a person provides any services in the basis period for the year of assessment 2012 or any subsequent year of assessment under a public‑private partnership arrangement —(i)

that is the subject of a contract entered into between the person and the Government or any approved statutory body; and

(ii)

to which INT FRS 112 or SFRS(I) INT 12 applies; and

(b)

the person recognises in the person’s financial statements, prepared in accordance with INT FRS 112 or SFRS(I) INT 12 (as the case may be), that income of a certain amount has been derived from such services,

then that amount is deemed as income derived by that person from those services for that basis period.

[45/2018]

(1B) Despite subsection (1A), the person mentioned in that subsection may elect in accordance with subsection (1D) for the Comptroller to assess to tax any deemed income mentioned in subsection (1A) from providing any FRS 11 construction or upgrade services, FRS 115 construction or upgrade services, or SFRS(I) 15 construction or upgrade services, under the public‑private partnership arrangement, as income derived by the person in the basis period in which those services are completed.[39/2017; 32/2019]

(1C) Where an election has been made in accordance with subsection (1D), then, despite any other provision of this Act —(a)

the income referred to in subsection (1B) is deemed as income derived by the person in the basis period in which the FRS 11 construction or upgrade services, FRS 115 construction or upgrade services, or SFRS(I) 15 construction or upgrade services (as the case may be) are completed; and

(b)

any expenditure for which a deduction or an allowance may be allowed or made to the person under Parts 5 and 6 in respect of those services is treated as having been incurred in that basis period.[39/2017; 32/2019]

(1D) The election must be made by written notice to the Comptroller —(a)

at the time of lodgment of the return of income for the year of assessment relating to the basis period in which the person first provides the FRS 11 construction or upgrade services, FRS 115 construction or upgrade services, or SFRS(I) 15 construction or upgrade services (as the case may be), being the year of assessment 2012 or any subsequent year of assessment; or

(b)

at such later time as the Comptroller may allow.[39/2017; 32/2019]

(1E) The election made under subsection (1D) is irrevocable.

(2) In this section —“approved” means approved by the Minister or such person as the Minister may appoint;

“FRS 11 construction or upgrade services” means any construction or upgrade services (as the case may be) to which FRS 11 applies;

“FRS 115 construction or upgrade services” means any construction or upgrade services (as the case may be) to which FRS 115 applies;

“FRS 11”, “FRS 17”, “FRS 115”, “FRS 116”, “INT FRS 104”, “INT FRS 112”, “SFRS(I) 1‑17”, “SFRS(I) 15”, “SFRS(I) 16”, “SFRS(I) INT 4” and “SFRS(I) INT 12” mean the financial reporting standards known respectively as —(a)

Financial Reporting Standard 11 (Construction Contracts);

(b)

Financial Reporting Standard 17 (Leases);

(c)

Financial Reporting Standard 115 (Revenue from Contracts with Customers);

(d)

Financial Reporting Standard 116 (Leases);

(e)

Interpretation of Financial Reporting Standard 104 (Determining whether an Arrangement contains a Lease);

(f)

Interpretation of Financial Reporting Standard 112 (Service Concession Arrangements);

(g)

Singapore Financial Reporting Standard (International) 1‑17 (Leases);

(h)

Singapore Financial Reporting Standard (International) 15 (Revenue from Contracts with Customers);

(i)

Singapore Financial Reporting Standard (International) 16 (Leases);

(j)

Singapore Financial Reporting Standard (International) Interpretation 4 (Determining whether an Arrangement contains a Lease); and

(k)

Singapore Financial Reporting Standard (International) Interpretation 12 (Service Concession Arrangements),

that are made by the Accounting Standards Committee under Part 3 of the Accounting Standards Act 2007, as amended from time to time;

[Act 36 of 2022 wef 01/04/2023]

“SFRS(I) 15 construction or upgrade services” means any construction or upgrade services (as the case may be) to which SFRS(I) 15 applies.[10F

[39/2017; 45/2018; 32/2019]

—(1) Where —(a)

a contract is entered into on or after 29 December 2009 between the Government or any approved statutory body and any person under a public‑private partnership arrangement; and

(b)

the contract is or contains a finance lease recognised as such by the lessor in accordance with FRS 17 read with INT FRS 104, FRS 116, SFRS(I) 1‑17 read with SFRS(I) INT 4, or SFRS(I) 16, the Government or the approved statutory body being the lessee and the person being the lessor,

then —

(c)

despite any provisions under Part 6, the allowances under section 16, 17, 18B, 18C, 19, 19A, 20, 21, 22 or 23 in respect of any building or structure, or any machinery or plant, which is a subject of that finance lease, are not to be made to the person, but to the Government or the approved statutory body, as the case may be; and

(d)

the person must not be assessed to tax on that part of the lease payment under that finance lease that is attributable to repayment of principal.[45/2018]

(1A) Despite any other provision of this Act, where —(a)

a person provides any services in the basis period for the year of assessment 2012 or any subsequent year of assessment under a public‑private partnership arrangement —(i)

that is the subject of a contract entered into between the person and the Government or any approved statutory body; and

(ii)

to which INT FRS 112 or SFRS(I) INT 12 applies; and

(b)

the person recognises in the person’s financial statements, prepared in accordance with INT FRS 112 or SFRS(I) INT 12 (as the case may be), that income of a certain amount has been derived from such services,

then that amount is deemed as income derived by that person from those services for that basis period.

[45/2018]

(1B) Despite subsection (1A), the person mentioned in that subsection may elect in accordance with subsection (1D) for the Comptroller to assess to tax any deemed income mentioned in subsection (1A) from providing any FRS 11 construction or upgrade services, FRS 115 construction or upgrade services, or SFRS(I) 15 construction or upgrade services, under the public‑private partnership arrangement, as income derived by the person in the basis period in which those services are completed.[39/2017; 32/2019]

(1C) Where an election has been made in accordance with subsection (1D), then, despite any other provision of this Act —(a)

the income referred to in subsection (1B) is deemed as income derived by the person in the basis period in which the FRS 11 construction or upgrade services, FRS 115 construction or upgrade services, or SFRS(I) 15 construction or upgrade services (as the case may be) are completed; and

(b)

any expenditure for which a deduction or an allowance may be allowed or made to the person under Parts 5 and 6 in respect of those services is treated as having been incurred in that basis period.[39/2017; 32/2019]

(1D) The election must be made by written notice to the Comptroller —(a)

at the time of lodgment of the return of income for the year of assessment relating to the basis period in which the person first provides the FRS 11 construction or upgrade services, FRS 115 construction or upgrade services, or SFRS(I) 15 construction or upgrade services (as the case may be), being the year of assessment 2012 or any subsequent year of assessment; or

(b)

at such later time as the Comptroller may allow.[39/2017; 32/2019]

(1E) The election made under subsection (1D) is irrevocable.

(2) In this section —“approved” means approved by the Minister or such person as the Minister may appoint;

“FRS 11 construction or upgrade services” means any construction or upgrade services (as the case may be) to which FRS 11 applies;

“FRS 115 construction or upgrade services” means any construction or upgrade services (as the case may be) to which FRS 115 applies;

“FRS 11”, “FRS 17”, “FRS 115”, “FRS 116”, “INT FRS 104”, “INT FRS 112”, “SFRS(I) 1‑17”, “SFRS(I) 15”, “SFRS(I) 16”, “SFRS(I) INT 4” and “SFRS(I) INT 12” mean the financial reporting standards known respectively as —(a)

Financial Reporting Standard 11 (Construction Contracts);

(b)

Financial Reporting Standard 17 (Leases);

(c)

Financial Reporting Standard 115 (Revenue from Contracts with Customers);

(d)

Financial Reporting Standard 116 (Leases);

(e)

Interpretation of Financial Reporting Standard 104 (Determining whether an Arrangement contains a Lease);

(f)

Interpretation of Financial Reporting Standard 112 (Service Concession Arrangements);

(g)

Singapore Financial Reporting Standard (International) 1‑17 (Leases);

(h)

Singapore Financial Reporting Standard (International) 15 (Revenue from Contracts with Customers);

(i)

Singapore Financial Reporting Standard (International) 16 (Leases);

(j)

Singapore Financial Reporting Standard (International) Interpretation 4 (Determining whether an Arrangement contains a Lease); and

(k)

Singapore Financial Reporting Standard (International) Interpretation 12 (Service Concession Arrangements),

that are made by the Accounting Standards Committee under Part 3 of the Accounting Standards Act 2007, as amended from time to time;

[Act 36 of 2022 wef 01/04/2023]

“SFRS(I) 15 construction or upgrade services” means any construction or upgrade services (as the case may be) to which SFRS(I) 15 applies.[10F

[39/2017; 45/2018; 32/2019]