§ 13G — Exemption of income of venture company

13G.—(1) The Minister may make regulations to provide that such income as the Minister may specify of an approved venture company derived by it from making authorised investments is exempt from tax.[34/2016; 41/2020]

(2) Regulations made under subsection (1) may provide for the determination of the amount of the income of an approved venture company to be exempted and for the deduction of losses otherwise than in accordance with section 37.[34/2016]

(2A) For a venture company that is approved before 1 April 2020, the exemption from tax of the income of the company under regulations made under subsection (1) —(a)

is for such period, not exceeding 10 years, as the Minister, or such person as the Minister may appoint, may specify; and

(b)

in any particular case after the period referred to in paragraph (a), is for such further period or periods, not exceeding 5 years at any one time for each period, as the Minister or an authorised body may specify.[34/2016; 41/2020]

[Act 41 of 2020 wef 12/04/2024]

(2B) The total period under subsection (2A)(a) and the further period or periods under subsection (2A)(b) must not in the aggregate exceed 15 years.

(2BA) For a venture company that is approved on or after 1 April 2020, the exemption from tax of the income of the company under regulations made under subsection (1) is for —(a)

a period not exceeding 15 years as specified to the venture company by the Minister or an authorised body; and[Act 41 of 2020 wef 12/04/2024]

(b)

where the period mentioned in paragraph (a) is less than 15 years — any additional period or periods specified to the venture company by the Minister or an authorised body.[41/2020]

[Act 41 of 2020 wef 12/04/2024]

(2BB) The total period of exemption from tax of income of an approved venture company mentioned in subsection (2BA) must not exceed 15 years.[41/2020]

(2C) The Minister or authorised body may, subject to such conditions as the Minister or authorised body may impose, approve a venture company as an approved venture company for the purposes of this section.[32/2019]

[Act 41 of 2020 wef 12/04/2024]

(2D) No approval may be granted to a venture company on or after 1 January 2026.[32/2019; 41/2020]

(3) The Comptroller must determine the manner and extent to which allowances under section 19, 19A, 20, 21 or 22 and any expenses, losses and donations allowable under this Act which are attributable to the income referred to in subsection (1) are to be deducted.

(4) In determining the income of an approved venture company which is exempt from tax under regulations made under subsection (1) for any year of assessment, there are to be deducted therefrom —(a)

expenses allowable under this Act for that year of assessment which are attributable to that income;

(aa)

[Deleted by Act 34 of 2016]

(b)

any loss for that year of assessment arising from the disposal of any authorised investments in Singapore or elsewhere;

(c)

any allowances for that year of assessment under section 19, 19A, 20, 21 or 22 attributable to that income even if no claim for those allowances has been made; and

(d)

any balance of the expenses, losses and allowances referred to in paragraphs (a), (b) and (c) which have not been deducted in determining that income for any previous year of assessment.[34/2016; 41/2020]

(5) Any expenses, losses or allowances referred to in subsection (4) may only be deducted against the income of an approved venture company exempt from tax under regulations made under subsection (1) and are not available as a deduction against any other income of the company, except that any balance of the expenses, losses or allowances remaining unabsorbed at the end of the tax exempt period of the company is available as a deduction against any other income of the company for the year of assessment which relates to the basis period in which the tax exemption ceases and for any subsequent year of assessment in accordance with section 23 or 37, as the case may be.

(5A) [Deleted by Act 34 of 2016]

(6) The Comptroller must, for each year of assessment for which the income of an approved venture company is exempt from tax under regulations made under subsection (1), issue to the approved venture company a statement (to be included in a notice of any assessment served on the approved venture company under section 76) showing the amount of income exempt from tax under regulations made under subsection (1) and Parts 17 and 18 (relating to assessments, objections and appeals) and any rules made under this Act apply, with the necessary modifications, as if such statement were a notice of assessment.

(7) Where any statement issued to an approved venture company under subsection (6) has become final and conclusive, the amount of income shown in the statement does not form part of the statutory income of the company for the year of assessment to which the statement relates and is exempt from tax.

(8) [Deleted by Act 19 of 2013]

(9) [Deleted by Act 19 of 2013]

(10) [Deleted by Act 19 of 2013]

(11) [Deleted by Act 19 of 2013]

(11A) [Deleted by Act 19 of 2013]

(12) [Deleted by Act 19 of 2013]

(13) [Deleted by Act 19 of 2013]

(14) [Deleted by Act 19 of 2013]

(15) An approved venture company must deliver to the Comptroller a copy of the account made up to any date specified by the Comptroller whenever called upon to do so by written notice.

(16) Despite anything in this section, where it appears to the Comptroller that any income of an approved venture company which has been exempted from tax under regulations made under subsection (1) ought not to have been so exempted for any year of assessment, the Comptroller may, at any time within 4 years after the expiry of that year of assessment, make such assessment or additional assessment upon the company as may appear to be necessary in order to make good any loss of tax.[34/2016]

(17) Parts 17 and 18 (relating to assessments, objections and appeals) and any rules made under this Act apply, with the necessary modifications, as if an assessment under subsection (16) were a notice of assessment.

(18) In this section —“authorised investments” —(a)

in relation to income derived by an approved venture company before 1 April 2020, means —(i)

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

(ii)

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

(iii)

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

(b)

in relation to income derived by an approved venture company on or after 1 April 2020, means investments prescribed by the Minister for the purpose of subsection (1);

“tax exempt period” means the period during which any income of an approved venture company is exempt from tax under regulations made under subsection (1);

“venture company” means any company whose business consists wholly or mainly in the making of authorised investments and the principal part of whose income is derived therefrom.[13H

[32/2019; 41/2020]

—(1) The Minister may make regulations to provide that such income as the Minister may specify of an approved venture company derived by it from making authorised investments is exempt from tax.[34/2016; 41/2020]

(2) Regulations made under subsection (1) may provide for the determination of the amount of the income of an approved venture company to be exempted and for the deduction of losses otherwise than in accordance with section 37.[34/2016]

(2A) For a venture company that is approved before 1 April 2020, the exemption from tax of the income of the company under regulations made under subsection (1) —(a)

is for such period, not exceeding 10 years, as the Minister, or such person as the Minister may appoint, may specify; and

(b)

in any particular case after the period referred to in paragraph (a), is for such further period or periods, not exceeding 5 years at any one time for each period, as the Minister or an authorised body may specify.[34/2016; 41/2020]

[Act 41 of 2020 wef 12/04/2024]

(2B) The total period under subsection (2A)(a) and the further period or periods under subsection (2A)(b) must not in the aggregate exceed 15 years.

(2BA) For a venture company that is approved on or after 1 April 2020, the exemption from tax of the income of the company under regulations made under subsection (1) is for —(a)

a period not exceeding 15 years as specified to the venture company by the Minister or an authorised body; and[Act 41 of 2020 wef 12/04/2024]

(b)

where the period mentioned in paragraph (a) is less than 15 years — any additional period or periods specified to the venture company by the Minister or an authorised body.[41/2020]

[Act 41 of 2020 wef 12/04/2024]

(2BB) The total period of exemption from tax of income of an approved venture company mentioned in subsection (2BA) must not exceed 15 years.[41/2020]

(2C) The Minister or authorised body may, subject to such conditions as the Minister or authorised body may impose, approve a venture company as an approved venture company for the purposes of this section.[32/2019]

[Act 41 of 2020 wef 12/04/2024]

(2D) No approval may be granted to a venture company on or after 1 January 2026.[32/2019; 41/2020]

(3) The Comptroller must determine the manner and extent to which allowances under section 19, 19A, 20, 21 or 22 and any expenses, losses and donations allowable under this Act which are attributable to the income referred to in subsection (1) are to be deducted.

(4) In determining the income of an approved venture company which is exempt from tax under regulations made under subsection (1) for any year of assessment, there are to be deducted therefrom —(a)

expenses allowable under this Act for that year of assessment which are attributable to that income;

(aa)

[Deleted by Act 34 of 2016]

(b)

any loss for that year of assessment arising from the disposal of any authorised investments in Singapore or elsewhere;

(c)

any allowances for that year of assessment under section 19, 19A, 20, 21 or 22 attributable to that income even if no claim for those allowances has been made; and

(d)

any balance of the expenses, losses and allowances referred to in paragraphs (a), (b) and (c) which have not been deducted in determining that income for any previous year of assessment.[34/2016; 41/2020]

(5) Any expenses, losses or allowances referred to in subsection (4) may only be deducted against the income of an approved venture company exempt from tax under regulations made under subsection (1) and are not available as a deduction against any other income of the company, except that any balance of the expenses, losses or allowances remaining unabsorbed at the end of the tax exempt period of the company is available as a deduction against any other income of the company for the year of assessment which relates to the basis period in which the tax exemption ceases and for any subsequent year of assessment in accordance with section 23 or 37, as the case may be.

(5A) [Deleted by Act 34 of 2016]

(6) The Comptroller must, for each year of assessment for which the income of an approved venture company is exempt from tax under regulations made under subsection (1), issue to the approved venture company a statement (to be included in a notice of any assessment served on the approved venture company under section 76) showing the amount of income exempt from tax under regulations made under subsection (1) and Parts 17 and 18 (relating to assessments, objections and appeals) and any rules made under this Act apply, with the necessary modifications, as if such statement were a notice of assessment.

(7) Where any statement issued to an approved venture company under subsection (6) has become final and conclusive, the amount of income shown in the statement does not form part of the statutory income of the company for the year of assessment to which the statement relates and is exempt from tax.

(8) [Deleted by Act 19 of 2013]

(9) [Deleted by Act 19 of 2013]

(10) [Deleted by Act 19 of 2013]

(11) [Deleted by Act 19 of 2013]

(11A) [Deleted by Act 19 of 2013]

(12) [Deleted by Act 19 of 2013]

(13) [Deleted by Act 19 of 2013]

(14) [Deleted by Act 19 of 2013]

(15) An approved venture company must deliver to the Comptroller a copy of the account made up to any date specified by the Comptroller whenever called upon to do so by written notice.

(16) Despite anything in this section, where it appears to the Comptroller that any income of an approved venture company which has been exempted from tax under regulations made under subsection (1) ought not to have been so exempted for any year of assessment, the Comptroller may, at any time within 4 years after the expiry of that year of assessment, make such assessment or additional assessment upon the company as may appear to be necessary in order to make good any loss of tax.[34/2016]

(17) Parts 17 and 18 (relating to assessments, objections and appeals) and any rules made under this Act apply, with the necessary modifications, as if an assessment under subsection (16) were a notice of assessment.

(18) In this section —“authorised investments” —(a)

in relation to income derived by an approved venture company before 1 April 2020, means —(i)

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

(ii)

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

(iii)

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

(b)

in relation to income derived by an approved venture company on or after 1 April 2020, means investments prescribed by the Minister for the purpose of subsection (1);

“tax exempt period” means the period during which any income of an approved venture company is exempt from tax under regulations made under subsection (1);

“venture company” means any company whose business consists wholly or mainly in the making of authorised investments and the principal part of whose income is derived therefrom.[13H

[32/2019; 41/2020]