§ 34H — Tax credits for approved redomiciled companies

34H.—(1) This section applies where —(a)

an approved redomiciled company has income (called in this section income A) that is chargeable to tax in one or more years of assessment beginning with the year of assessment for the basis period in which its registration date falls; and

(b)

the company’s place of incorporation levies on the company tax of a similar character to income tax (by whatever name called) on an estimate of income A (called in this section income B).[39/2017]

(2) The approved redomiciled company must be allowed, in accordance with subsection (4), a tax credit against tax payable in respect of the part of income A that is derived or received in the basis period for each year of assessment specified by the Minister to the company at the time of its approval (called in this section a specified year of assessment).[39/2017]

(3) The total amount of tax credits to be allowed to the approved redomiciled company for all of its specified years of assessment is an amount C that is computed by the formula (B ‑ B1) × D, where —(a)

B is the amount of income B;

(b)

B1 is the part of income B which is derived wholly from any agreement or arrangement entered into on or after the registration date, as well as any other income prescribed by regulations made under section 34G; and

(c)

D is the lower of the following:(i)

the rate by which the part of income A derived or received in the basis period in which its registration date falls is chargeable to tax;

(ii)

the rate by which income B is chargeable to the tax described in subsection (1)(b).[39/2017]

(4) Where, throughout a basis period for a specified year of assessment, the approved redomiciled company —(a)

is resident in Singapore; and

(b)

satisfies all of the conditions specified by the Minister to it at the time of its approval,

then there is to be allowed, against the amount of tax chargeable on income E, a credit of an amount that is the lower of the following:

(c)

the amount of tax;

(d)

an amount computed by deducting from the amount C, the total amount of tax credits previously allowed under this section against the tax chargeable on the income of the company.[39/2017]

(5) In subsection (4), a company’s income E for a year of assessment is the amount of the part of income A derived or received in the basis period for that year of assessment after deducting the following:(a)

the expenses and donations allowable under this Act for that year of assessment that are attributable to or apportioned to the part of income A;

(b)

any capital allowances for that year of assessment attributable to the part of income A whether or not any claim for those allowances has been made;

(c)

any balance of the expenses, allowances and donations which have not been deducted under this subsection for the purpose of determining income E for any previous year of assessment.[39/2017]

(6) The balance of any expenses, allowances or donations mentioned in subsection (5) may only be used to determine the company’s income E for a subsequent specified year of assessment, and is not available as a deduction against any other income of the company.[39/2017]

(7) However, any balance mentioned in subsection (6) that remains —(a)

after ascertaining the company’s income E for the last of the specified years of assessment; or

(b)

as of the date of revocation of the approval of the company,

may be deducted against any other income of the company for a subsequent year of assessment, or the year of assessment for the basis period in which the approval is revoked or a subsequent basis period (whichever is applicable), in accordance with section 23 or 37, as the case may be.

[39/2017]

(8) Any balance of the amount C after a tax credit has been allowed for the last of the specified years of assessment must be disregarded.[39/2017]

(9) If, at any time after the registration date, and during a period specified by the Minister to it at the time of its approval, the approved redomiciled company ceases to carry on any trade or business in Singapore, an amount computed using the formula is recoverable by the Comptroller from the company as a debt due to the Government, where —(a)

F is the total number of its specified years of assessment or 5, whichever is larger;

(b)

G is the total number of complete years where the company carried on a trade or business in Singapore; and

(c)

H is the total amount of tax credits already allowed against the tax chargeable on the income of the company under this section.[39/2017]

(10) If the Comptroller is satisfied that —(a)

the approved redomiciled company gave to the Comptroller information that is false in any material particular, or omitted any material particular from any information or document given to the Comptroller; and

(b)

as a result of the false information or omission, an amount of tax credit was allowed against tax chargeable on the company’s income under this section,

then an amount equal to the amount of tax credit so allowed is recoverable by the Comptroller from the company as a debt due to the Government.

[39/2017]

(11) The amount recoverable under subsection (9) or (10) must be paid at the place stated in the notice served by the Comptroller on the approved redomiciled company within 30 days after the service of the notice.[39/2017]

(12) The Comptroller may, in the Comptroller’s discretion, and subject to such terms and conditions as the Comptroller may impose, extend the time within which payment is to be made.[39/2017]

(13) Sections 86(1) to (6), 87(1) and (2), 89, 90 and 91 apply to the collection and recovery by the Comptroller of the amount recoverable under subsection (9) or (10) as they apply to the collection and recovery of tax.[39/2017]

(14) In this section —“approved redomiciled company” means a redomiciled company within the meaning of section 34G(1) that is approved by the Minister for the purposes of this section;

“place of incorporation”, in relation to an approved redomiciled company, means the jurisdiction where the company was domiciled at the time it applied for registration under Part 10A of the Companies Act 1967;

“registration” means registration under section 359(1) of the Companies Act 1967;

“registration date”, in relation to an approved redomiciled company, means the date of its registration specified in the notice of transfer of registration issued to it under section 359(3) of the Companies Act 1967.[39/2017]

—(1) This section applies where —(a)

an approved redomiciled company has income (called in this section income A) that is chargeable to tax in one or more years of assessment beginning with the year of assessment for the basis period in which its registration date falls; and

(b)

the company’s place of incorporation levies on the company tax of a similar character to income tax (by whatever name called) on an estimate of income A (called in this section income B).[39/2017]

(2) The approved redomiciled company must be allowed, in accordance with subsection (4), a tax credit against tax payable in respect of the part of income A that is derived or received in the basis period for each year of assessment specified by the Minister to the company at the time of its approval (called in this section a specified year of assessment).[39/2017]

(3) The total amount of tax credits to be allowed to the approved redomiciled company for all of its specified years of assessment is an amount C that is computed by the formula (B ‑ B1) × D, where —(a)

B is the amount of income B;

(b)

B1 is the part of income B which is derived wholly from any agreement or arrangement entered into on or after the registration date, as well as any other income prescribed by regulations made under section 34G; and

(c)

D is the lower of the following:(i)

the rate by which the part of income A derived or received in the basis period in which its registration date falls is chargeable to tax;

(ii)

the rate by which income B is chargeable to the tax described in subsection (1)(b).[39/2017]

(4) Where, throughout a basis period for a specified year of assessment, the approved redomiciled company —(a)

is resident in Singapore; and

(b)

satisfies all of the conditions specified by the Minister to it at the time of its approval,

then there is to be allowed, against the amount of tax chargeable on income E, a credit of an amount that is the lower of the following:

(c)

the amount of tax;

(d)

an amount computed by deducting from the amount C, the total amount of tax credits previously allowed under this section against the tax chargeable on the income of the company.[39/2017]

(5) In subsection (4), a company’s income E for a year of assessment is the amount of the part of income A derived or received in the basis period for that year of assessment after deducting the following:(a)

the expenses and donations allowable under this Act for that year of assessment that are attributable to or apportioned to the part of income A;

(b)

any capital allowances for that year of assessment attributable to the part of income A whether or not any claim for those allowances has been made;

(c)

any balance of the expenses, allowances and donations which have not been deducted under this subsection for the purpose of determining income E for any previous year of assessment.[39/2017]

(6) The balance of any expenses, allowances or donations mentioned in subsection (5) may only be used to determine the company’s income E for a subsequent specified year of assessment, and is not available as a deduction against any other income of the company.[39/2017]

(7) However, any balance mentioned in subsection (6) that remains —(a)

after ascertaining the company’s income E for the last of the specified years of assessment; or

(b)

as of the date of revocation of the approval of the company,

may be deducted against any other income of the company for a subsequent year of assessment, or the year of assessment for the basis period in which the approval is revoked or a subsequent basis period (whichever is applicable), in accordance with section 23 or 37, as the case may be.

[39/2017]

(8) Any balance of the amount C after a tax credit has been allowed for the last of the specified years of assessment must be disregarded.[39/2017]

(9) If, at any time after the registration date, and during a period specified by the Minister to it at the time of its approval, the approved redomiciled company ceases to carry on any trade or business in Singapore, an amount computed using the formula is recoverable by the Comptroller from the company as a debt due to the Government, where —(a)

F is the total number of its specified years of assessment or 5, whichever is larger;

(b)

G is the total number of complete years where the company carried on a trade or business in Singapore; and

(c)

H is the total amount of tax credits already allowed against the tax chargeable on the income of the company under this section.[39/2017]

(10) If the Comptroller is satisfied that —(a)

the approved redomiciled company gave to the Comptroller information that is false in any material particular, or omitted any material particular from any information or document given to the Comptroller; and

(b)

as a result of the false information or omission, an amount of tax credit was allowed against tax chargeable on the company’s income under this section,

then an amount equal to the amount of tax credit so allowed is recoverable by the Comptroller from the company as a debt due to the Government.

[39/2017]

(11) The amount recoverable under subsection (9) or (10) must be paid at the place stated in the notice served by the Comptroller on the approved redomiciled company within 30 days after the service of the notice.[39/2017]

(12) The Comptroller may, in the Comptroller’s discretion, and subject to such terms and conditions as the Comptroller may impose, extend the time within which payment is to be made.[39/2017]

(13) Sections 86(1) to (6), 87(1) and (2), 89, 90 and 91 apply to the collection and recovery by the Comptroller of the amount recoverable under subsection (9) or (10) as they apply to the collection and recovery of tax.[39/2017]

(14) In this section —“approved redomiciled company” means a redomiciled company within the meaning of section 34G(1) that is approved by the Minister for the purposes of this section;

“place of incorporation”, in relation to an approved redomiciled company, means the jurisdiction where the company was domiciled at the time it applied for registration under Part 10A of the Companies Act 1967;

“registration” means registration under section 359(1) of the Companies Act 1967;

“registration date”, in relation to an approved redomiciled company, means the date of its registration specified in the notice of transfer of registration issued to it under section 359(3) of the Companies Act 1967.[39/2017]