§ 13F — Exemption of income of foreign trust

13F.—(1) There is exempt from tax such income as the Minister may by regulations prescribe of such foreign trust or eligible holding company established for the purposes of such foreign trust as specified in those regulations, or as approved by the Minister or authorised body, and administered by a trustee company in Singapore.[Act 33 of 2022 wef 04/11/2022]

(2) Where any income of a foreign trust is exempt from tax under regulations made under subsection (1) in any year of assessment, the share of such income to which any beneficiary under the trust is entitled to receive for that year of assessment is also exempt from tax if the beneficiary —(a)

being an individual, is neither a citizen of Singapore nor resident in Singapore;

(b)

being a company, is neither incorporated nor resident in Singapore and where such a company —(i)

has not more than 50 shareholders, all of its issued shares are beneficially owned, directly or indirectly, by persons who are neither citizens of Singapore nor resident in Singapore; or

(ii)

has more than 50 shareholders, not less than 95% of the total number of its issued shares are beneficially owned, directly or indirectly, by persons who are neither citizens of Singapore nor resident in Singapore;

(c)

being any other person, is neither resident in Singapore nor constituted or registered under any written law in Singapore; or

(d)

is a trustee of another foreign trust specified under subsection (1).

(3) Where any income of a foreign trust is exempt from tax under regulations made under subsection (1) in any year of assessment, the share of such income that a foreign account of a philanthropic purpose trust is entitled to receive for that year of assessment is also exempt from tax.

(4) Despite subsections (1) and (2), where it appears to the Comptroller that any income of a foreign trust or eligible holding company ought not to have been exempted under regulations made under subsection (1), the Comptroller may, subject to section 74, make such assessment or additional assessment upon the foreign trust or eligible holding company (as the case may be) as may appear to be necessary.

(5) In this section —“foreign account” and “philanthropic purpose trust” have the meanings given by section 13L;

“trustee company” has the meaning given by section 43G(2).

(6) This section does not apply to —(a)

a trust that is constituted on or after 1 January 2028;[Act 35 of 2024 wef 27/11/2024]

(b)

a company that is incorporated on or after 1 January 2028;[Act 35 of 2024 wef 27/11/2024]

(c)

a trust that —(i)

is constituted before 1 January 2028; and[Act 35 of 2024 wef 27/11/2024]

(ii)

in the basis period in which 31 December 2027 falls, is not a foreign trust specified in the regulations under subsection (1) (called in this subsection and subsection (8) a specified trust) that is administered by a trustee company in Singapore within the meaning of those regulations; or[Act 35 of 2024 wef 27/11/2024]

(d)

a company that —(i)

is incorporated before 1 January 2028; and[Act 35 of 2024 wef 27/11/2024]

(ii)

in the basis period in which 31 December 2027 falls —(A)

is not an eligible holding company established for the purposes of a specified trust, and specified in the regulations under subsection (1); or

(B)

is not administered by a trustee company in Singapore within the meaning of those regulations.[37/2014; 32/2019]

[Act 35 of 2024 wef 27/11/2024]

(7) Where, in any basis period beginning on or after 1 January 2028 —(a)

a trust or company does not satisfy the requirements referred to in subsection (8); or

(b)

the trustee company which administers a foreign trust or an eligible holding company established for the purposes of a foreign trust fails to comply with any of the regulations under subsection (1),

then this section does not apply to the trust or company in paragraph (a), or the foreign trust or eligible holding company in paragraph (b), for the year of assessment to which that basis period relates, and for every subsequent year of assessment even if the requirements are satisfied and the regulations are complied with in the basis period for that subsequent year of assessment.

[37/2014; 32/2019]

[Act 35 of 2024 wef 27/11/2024]

(8) In subsection (7), the requirements are —(a)

in the case of the trust, that it is a specified trust and is administered by a trustee company in Singapore within the meaning of those regulations; or

(b)

in the case of the company —(i)

that it is an eligible holding company established for the purposes of a specified trust, and specified in those regulations; and

(ii)

that it is administered by a trustee company in Singapore within the meaning of those regulations.[13G

[37/2014]

—(1) There is exempt from tax such income as the Minister may by regulations prescribe of such foreign trust or eligible holding company established for the purposes of such foreign trust as specified in those regulations, or as approved by the Minister or authorised body, and administered by a trustee company in Singapore.[Act 33 of 2022 wef 04/11/2022]

(2) Where any income of a foreign trust is exempt from tax under regulations made under subsection (1) in any year of assessment, the share of such income to which any beneficiary under the trust is entitled to receive for that year of assessment is also exempt from tax if the beneficiary —(a)

being an individual, is neither a citizen of Singapore nor resident in Singapore;

(b)

being a company, is neither incorporated nor resident in Singapore and where such a company —(i)

has not more than 50 shareholders, all of its issued shares are beneficially owned, directly or indirectly, by persons who are neither citizens of Singapore nor resident in Singapore; or

(ii)

has more than 50 shareholders, not less than 95% of the total number of its issued shares are beneficially owned, directly or indirectly, by persons who are neither citizens of Singapore nor resident in Singapore;

(c)

being any other person, is neither resident in Singapore nor constituted or registered under any written law in Singapore; or

(d)

is a trustee of another foreign trust specified under subsection (1).

(3) Where any income of a foreign trust is exempt from tax under regulations made under subsection (1) in any year of assessment, the share of such income that a foreign account of a philanthropic purpose trust is entitled to receive for that year of assessment is also exempt from tax.

(4) Despite subsections (1) and (2), where it appears to the Comptroller that any income of a foreign trust or eligible holding company ought not to have been exempted under regulations made under subsection (1), the Comptroller may, subject to section 74, make such assessment or additional assessment upon the foreign trust or eligible holding company (as the case may be) as may appear to be necessary.

(5) In this section —“foreign account” and “philanthropic purpose trust” have the meanings given by section 13L;

“trustee company” has the meaning given by section 43G(2).

(6) This section does not apply to —(a)

a trust that is constituted on or after 1 January 2028;[Act 35 of 2024 wef 27/11/2024]

(b)

a company that is incorporated on or after 1 January 2028;[Act 35 of 2024 wef 27/11/2024]

(c)

a trust that —(i)

is constituted before 1 January 2028; and[Act 35 of 2024 wef 27/11/2024]

(ii)

in the basis period in which 31 December 2027 falls, is not a foreign trust specified in the regulations under subsection (1) (called in this subsection and subsection (8) a specified trust) that is administered by a trustee company in Singapore within the meaning of those regulations; or[Act 35 of 2024 wef 27/11/2024]

(d)

a company that —(i)

is incorporated before 1 January 2028; and[Act 35 of 2024 wef 27/11/2024]

(ii)

in the basis period in which 31 December 2027 falls —(A)

is not an eligible holding company established for the purposes of a specified trust, and specified in the regulations under subsection (1); or

(B)

is not administered by a trustee company in Singapore within the meaning of those regulations.[37/2014; 32/2019]

[Act 35 of 2024 wef 27/11/2024]

(7) Where, in any basis period beginning on or after 1 January 2028 —(a)

a trust or company does not satisfy the requirements referred to in subsection (8); or

(b)

the trustee company which administers a foreign trust or an eligible holding company established for the purposes of a foreign trust fails to comply with any of the regulations under subsection (1),

then this section does not apply to the trust or company in paragraph (a), or the foreign trust or eligible holding company in paragraph (b), for the year of assessment to which that basis period relates, and for every subsequent year of assessment even if the requirements are satisfied and the regulations are complied with in the basis period for that subsequent year of assessment.

[37/2014; 32/2019]

[Act 35 of 2024 wef 27/11/2024]

(8) In subsection (7), the requirements are —(a)

in the case of the trust, that it is a specified trust and is administered by a trustee company in Singapore within the meaning of those regulations; or

(b)

in the case of the company —(i)

that it is an eligible holding company established for the purposes of a specified trust, and specified in those regulations; and

(ii)

that it is administered by a trustee company in Singapore within the meaning of those regulations.[13G

[37/2014]