§ 37 — Assessable income

37.—(1) The assessable income of any person from all sources chargeable with tax under this Act for any year of assessment is the remainder of the person’s statutory income for that year after the deductions allowed in this Part have been made.(2) For the purposes of this section, unless otherwise provided in this Act or the Economic Expansion Incentives (Relief from Income Tax) Act 1967, where a person is a company whose income (if any) is subject to tax at different rates of tax for any year of assessment, the Comptroller must apportion any sum allowable under subsection (3)(b), (c), (d) or (f) among the different rates of tax on such basis as the Comptroller considers reasonable.

(3) Subject to subsections (2) and (3B), there is to be deducted —(a)

the amount of loss incurred by that person in any trade, business, profession or vocation, which, if it had been a profit would have been assessable under this Act, in the following order:(i)

firstly, any balance of such loss which remains unabsorbed at the end of the basis period for the previous year of assessment;

(ii)

secondly, the amount incurred during the basis period for the year of assessment;

(b)

an amount equivalent to twice the value, the value to be determined by the Minister or such person as the Minister may appoint, of an approved donation of —(i)

any artefact or work of art made by that person in the year preceding the year of assessment to an approved museum;

(ii)

any sculpture or work of art for public display made by that person in the year preceding the year of assessment to an approved recipient not being an approved museum; or

(iii)

money or services for installing or maintaining any sculpture or work of art for public display made by that person in the year preceding the year of assessment,

and for this purpose, “approved” means approved by the Minister or such person as the Minister may appoint;

(c)

an amount equivalent to twice the amount of any donation of money made by that person in the year preceding the year of assessment to —(i)

the Government; or

(ii)

any institution of a public character, whether made directly to the institution or indirectly through any grant‑making philanthropic organisation registered by the Comptroller for the purpose of this sub‑paragraph;

(d)

an amount equivalent to twice the value of any donation of a computer (including computer software and peripherals) approved by the Minister or such person as the Minister may appoint and made by any company in the year preceding the year of assessment to —(i)

any institution of a public character; or

(ii)

a prescribed educational, research or other institution in Singapore;

(e)

an amount equivalent to —(i)

twice the value of any donation of shares in a company listed on the Singapore Exchange; or

(ii)

twice the value of any donation of units in unit trusts traded in Singapore or listed on the Singapore Exchange,

made by an individual in the year preceding the year of assessment to any institution of a public character; and

(f)

an amount equivalent to twice the value, the value to be determined by an appraiser licensed under the Appraisers Act 1906 and approved by the Chief Valuer appointed under the State Lands Act 1920, of any donation of any immovable property made by that person in the year preceding the year of assessment to any institution of a public character.

(3A) For the purpose of subsection (3), a reference to “twice the value” or “twice the amount” in subsection (3)(b) to (f) is a reference to —(a)

in the case of a donation made during either of the following periods:(i)

from 1 January 2009 to 31 December 2014 (both dates inclusive);

(ii)

from 1 January 2016 to 31 December 2026 (both dates inclusive),

2.5 times the value or 2.5 times the amount, as the case may be; or

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

(b)

in the case of a donation made during the period from 1 January 2015 to 31 December 2015 (both dates inclusive), 3 times the value or 3 times the amount, as the case may be.[2/2016; 45/2018; 27/2021]

(3B) No deduction may be made under subsection (3)(b), (c), (d), (e) or (f) to a person in respect of any donation made to an approved museum, approved recipient not being an approved museum, the Government, an institution of a public character or a prescribed educational, research or other institution in Singapore on or after 1 January 2012 unless the person provides to —(a)

the approved museum, approved recipient, Government, institution of a public character or educational, research or other institution; or

(b)

in a case where the donation is made under subsection (3)(c) to an institution of a public character indirectly through a grant‑making philanthropic organisation, the grant‑making philanthropic organisation,

as the case may be, such information within such time and in such form and manner as the Comptroller may specify.

(3C) A donation made on or after 18 December 2012 of any property or money referred to in subsection (3)(b)(i) or (ii), (c), (d), (e) or (f) to a recipient under that provision, which is subject to any condition specified by the donor as to the purpose for which the donation may be applied (including where the donor specifies another purpose for the application of the donation in the event the firstmentioned purpose should fail), is treated as a donation under that provision if (and only if) all of the following requirements are satisfied:(a)

except where the recipient is the Government, each specified purpose must be one that advances an objective of the recipient set out in its governing instrument;

(b)

none of the specified purposes must be to advance the interests (whether directly or indirectly) of a particular race, belief or religion, or of a particular person or persons;

(c)

the donor did not specify or imply in any manner that any part of the property or money that cannot be used for any of the specified purposes must revert to the donor or be given to any other person (other than the recipient).

(3D) To avoid doubt, subsection (3C) applies to a donation of money referred to in subsection (3)(c)(ii) to a recipient under that provision, whether made directly to the recipient or indirectly through a grant‑making philanthropic organisation.

(3E) In subsections (3C) and (3D) —“governing instrument”, in relation to a recipient under subsection (3)(b)(i) or (ii), (c), (d), (e) or (f), includes the memorandum and articles of association, constitution, trust instrument or any rules or regulations governing the objects and administration of the recipient;

“recipient” —(a)

in the case of a donation referred to in subsection (3)(b)(i), means an approved museum;

(b)

in the case of a donation referred to in subsection (3)(b)(ii), means an approved recipient not being an approved museum;

(c)

in the case of a donation referred to in subsection (3)(c), means the Government or an institution of a public character;

(d)

in the case of a donation referred to in subsection (3)(d), means an institution of a public character or a prescribed educational, research or other institution in Singapore; or

(e)

in the case of a donation referred to in subsection (3)(e) or (f), means an institution of a public character.

(3F) Subject to subsection (3G), a donation referred to in subsection (3)(b), (c), (d), (e) or (f) is eligible for a deduction under that provision even if the donor or another person receives or will receive a benefit in consequence of making the donation.

(3G) Where a donor who makes a donation referred to in subsection (3)(b), (c), (d), (e) or (f), or a person connected with the donor, receives or will receive a benefit in consequence of making the donation, a reference to the value or amount of the donation under that provision excludes an amount equivalent to the value of the benefit.

(3H) The Minister may by rules —(a)

exclude any type of benefit from the application of subsection (3G); and

(b)

provide for the basis for determining the value of any benefit under that subsection.

(3I) To avoid doubt, the Comptroller may make an assessment or additional assessment under section 74 if the benefit is received only after the deduction of the donation under subsection (3) is made.

(3J) In subsection (3G), a person is connected with the donor if —(a)

the person is a relative of the donor within the meaning of section 37N(12);

(b)

the person, or a person who is the person’s relative within the meaning of section 37N(12), directly or indirectly controls the donor;

(c)

the person is controlled, directly or indirectly, by the donor; or

(d)

the person and the donor, directly or indirectly, are under the control of a common person.

(3K) No approval may be granted for the purposes of subsection (3)(d) for a donation made on or after 21 February 2017.[39/2017]

(4) A deduction under subsection (3)(a)(i) is to be made in the following order:(a)

firstly, against statutory income from the same trade, business, profession or vocation;

(b)

secondly, against statutory income from any other trade, business, profession or vocation;

(c)

thirdly, against statutory income from any other source.

(5) A deduction under subsection (3)(a)(i) is to be made as far as possible in the order specified in subsection (4) from the statutory income of the first year of assessment after the year in which such loss was incurred, and, so far as it cannot be so made, then from the statutory income of the next year of assessment, and so on.

(6) Where, in any year of assessment, the amount of loss incurred by any person during the year preceding the year of assessment is not fully deducted under subsection (3)(a)(ii), the balance of such loss, after deducting any amount of such loss transferred to a claimant company under section 37B or to a spouse under section 37C or 37E, or deducted against income for the immediate preceding year of assessment under section 37D(1) or any of the 3 immediate preceding years of assessment under section 37D(1A), is available for deduction against the person’s statutory income for subsequent year of assessment under subsection (3)(a)(i).[39/2017; 41/2020]

(7) A deduction under this section to any person in respect of any sum allowable under subsection (3)(b), (c), (d), (e) or (f) is only allowed against the person’s statutory income after the deduction under subsection (3)(a) and sections 37AA, 37AB and 37N.[Act 30 of 2023 wef 30/10/2023]

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

(8) Subject to subsections (2), (7) and (12), the deduction to any person in respect of any sum allowable under subsection (3)(b), (c), (d), (e) or (f) is to be allowed —(a)

as far as possible against the person’s statutory income of the first year of assessment after the year in which the donation was made by the person; and

(b)

so far as the deduction cannot be so allowed, after deducting any of such sum transferred to a claimant company under section 37B or to a spouse under section 37C, then from the person’s statutory income of the next year of assessment,

and so on, except that any balance of the donation not deducted against the person’s statutory income of the fifth year of assessment after the year of assessment relating to the basis period in which the donation was made is disregarded.

(9) For the purposes of subsections (7) and (8), any sum allowable under subsection (3)(b), (c), (d), (e) or (f) in respect of any donation made on an earlier date is deemed to have been deducted first.

(10) For the purposes of subsection (3), the loss incurred during any year is computed, where the Comptroller so decides, by reference to the year ending on a day in such year which would have been adopted under section 35(4) for the computation of the statutory income of the following year of assessment if a profit had arisen.

(10A) For the purposes of subsection (3)(b) to (f), the reference to the year preceding any year of assessment is —(a)

if the person making the donation is not an individual and is one to whom a direction is made under section 35(4);

(b)

if the persons making the donation are the partners of a partnership, a direction is made under section 35(4) in relation to the income of that partnership, and the donation is made by them in the name of the partnership; or

(c)

if the person making the donation is an individual to whom a direction is made under section 35(4), and the donation is made by the person in the name of the trade, business or profession to which the accounts relate,

a reference to —

(d)

the period of 12 months or such other period as the Comptroller may allow, ending on the day the accounts of the person or the partnership (as the case may be) are made up to; or

(e)

such other period as the Comptroller, having regard to any special circumstance, otherwise directs.

(11) No deduction is allowed under this section to any person in respect of any sum which has been allowed as a deduction under this section against the income of his or her spouse chargeable in his or her own name.

(12) Despite subsection (3), the amount of any loss incurred by a company in any trade or business or any sum allowable under subsection (3)(b), (c), (d), (e) or (f) to a company in respect of any donation is disregarded unless the Comptroller is satisfied that the shareholders of the company on the last day of the year in which the loss was incurred or the donation was made (as the case may be) were substantially the same as the shareholders of the company on the first day of the year of assessment in which such loss or donation would otherwise be deductible under subsection (3).

(13) A loss or donation disregarded under subsection (12) must not be allowed in any subsequent year of assessment.

(14) For the purposes of subsection (12) —(a)

the shareholders of a company at any date are not deemed to be substantially the same as the shareholders at any other date unless, on both those dates, not less than 50% of the total number of issued shares of the company are held by or on behalf of the same persons;

(b)

shares in a company held by or on behalf of another company are deemed to be held by the shareholders of the last mentioned company; and

(c)

shares held by or on behalf of the trustee of the estate of a deceased shareholder or by or on behalf of the person entitled to those shares as beneficiaries under the will or any intestacy of a deceased shareholder are deemed to be held by that deceased shareholder.

(15) For the purpose of subsection (14), where any part of a share of a shareholder is not fully paid up, there is to be disregarded a proportion equal to

where A

is the amount that has not been paid in respect of the share; and

B

is the total amount payable in respect of the share.

(16) The Minister or such person as the Minister may appoint may, where there is a substantial change in the shareholders of a company and the Minister or appointed person is satisfied that such change is not for the purpose of deriving any tax benefit or obtaining any tax advantage, exempt that company from the provisions of subsection (12).

(17) Upon an exemption under subsection (16) —(a)

any loss referred to in subsection (3)(a) incurred by a company may only be deducted against the profits from the same trade or business of the company in respect of which that loss was incurred; and

(b)

any balance of the donation referred to in subsection (8) is allowed against the person’s statutory income of the year of assessment in which such donation would otherwise be deductible under that subsection.

(18) For the purposes of subsection (3)(b), “museum” includes any institution established for the purpose of acquiring any collection of artefacts and making them accessible to the public.

(18A) For the purposes of subsection (3)(c)(ii), the Minister may make regulations with respect to the following matters:(a)

the registration of a grant‑making philanthropic organisation;

(b)

the deregistration of an organisation referred to in paragraph (a);

(c)

the issue of tax deduction receipts and maintenance of records and accounts by a registered grant‑making philanthropic organisation for donations received by it and the audit of such records and accounts;

(d)

the requirements to be complied with by a registered grant‑making philanthropic organisation;

(e)

any other matter for giving full effect to or for carrying out the purposes of that provision.

(18B) Where a registered grant‑making philanthropic organisation contravenes any regulation made under subsection (18A), being a regulation prescribed as one to which this subsection applies —(a)

the organisation is liable to pay to the Comptroller a financial penalty of the higher of $100 and the amount ascertained by the formula

(b)

the Minister or such person as the Minister may appoint may deregister the organisation.

(18BA) The Comptroller may for any good cause remit the whole or any part of the financial penalty payable under subsection (18B).[37/2014]

(18C) Despite anything to the contrary in this Act or any other written law, a registered grant‑making philanthropic organisation must keep and retain in safe custody all records and accounts in respect of any donation maintained under regulations made under subsection (18A), for a period of 7 years or such period as may be prescribed by regulations from the year of assessment relating to the year in which the donation is received by the organisation.

(18D) In subsection (3)(c)(ii), “grant‑making philanthropic organisation” means —(a)

a charity registered or exempt from registration under the Charities Act 1994; or

(b)

a not‑for‑profit organisation approved under section 13R.

(19) For the purposes of subsection (3)(e) and subject to subsection (3G) —(a)

the amount in respect of any donation of shares in a company or units in a unit trust listed on the Singapore Exchange is the price of such shares or units (as the case may be) in the open market at the last transaction of such shares or units on the date of the donation;

(b)

the amount in respect of any donation of units in unit trusts traded in Singapore (other than those listed on the Singapore Exchange) is the bid price of such units immediately after the date of the donation quoted by the manager of the unit trusts; and

(c)

“date of the donation”, in relation to any shares or units referred to in paragraph (a) or (b) (as the case may be), means the date of legal transfer to the institution of a public character of the donation of such shares or units.

—(1) The assessable income of any person from all sources chargeable with tax under this Act for any year of assessment is the remainder of the person’s statutory income for that year after the deductions allowed in this Part have been made.

(2) For the purposes of this section, unless otherwise provided in this Act or the Economic Expansion Incentives (Relief from Income Tax) Act 1967, where a person is a company whose income (if any) is subject to tax at different rates of tax for any year of assessment, the Comptroller must apportion any sum allowable under subsection (3)(b), (c), (d) or (f) among the different rates of tax on such basis as the Comptroller considers reasonable.

(3) Subject to subsections (2) and (3B), there is to be deducted —(a)

the amount of loss incurred by that person in any trade, business, profession or vocation, which, if it had been a profit would have been assessable under this Act, in the following order:(i)

firstly, any balance of such loss which remains unabsorbed at the end of the basis period for the previous year of assessment;

(ii)

secondly, the amount incurred during the basis period for the year of assessment;

(b)

an amount equivalent to twice the value, the value to be determined by the Minister or such person as the Minister may appoint, of an approved donation of —(i)

any artefact or work of art made by that person in the year preceding the year of assessment to an approved museum;

(ii)

any sculpture or work of art for public display made by that person in the year preceding the year of assessment to an approved recipient not being an approved museum; or

(iii)

money or services for installing or maintaining any sculpture or work of art for public display made by that person in the year preceding the year of assessment,

and for this purpose, “approved” means approved by the Minister or such person as the Minister may appoint;

(c)

an amount equivalent to twice the amount of any donation of money made by that person in the year preceding the year of assessment to —(i)

the Government; or

(ii)

any institution of a public character, whether made directly to the institution or indirectly through any grant‑making philanthropic organisation registered by the Comptroller for the purpose of this sub‑paragraph;

(d)

an amount equivalent to twice the value of any donation of a computer (including computer software and peripherals) approved by the Minister or such person as the Minister may appoint and made by any company in the year preceding the year of assessment to —(i)

any institution of a public character; or

(ii)

a prescribed educational, research or other institution in Singapore;

(e)

an amount equivalent to —(i)

twice the value of any donation of shares in a company listed on the Singapore Exchange; or

(ii)

twice the value of any donation of units in unit trusts traded in Singapore or listed on the Singapore Exchange,

made by an individual in the year preceding the year of assessment to any institution of a public character; and

(f)

an amount equivalent to twice the value, the value to be determined by an appraiser licensed under the Appraisers Act 1906 and approved by the Chief Valuer appointed under the State Lands Act 1920, of any donation of any immovable property made by that person in the year preceding the year of assessment to any institution of a public character.

(3A) For the purpose of subsection (3), a reference to “twice the value” or “twice the amount” in subsection (3)(b) to (f) is a reference to —(a)

in the case of a donation made during either of the following periods:(i)

from 1 January 2009 to 31 December 2014 (both dates inclusive);

(ii)

from 1 January 2016 to 31 December 2026 (both dates inclusive),

2.5 times the value or 2.5 times the amount, as the case may be; or

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

(b)

in the case of a donation made during the period from 1 January 2015 to 31 December 2015 (both dates inclusive), 3 times the value or 3 times the amount, as the case may be.[2/2016; 45/2018; 27/2021]

(3B) No deduction may be made under subsection (3)(b), (c), (d), (e) or (f) to a person in respect of any donation made to an approved museum, approved recipient not being an approved museum, the Government, an institution of a public character or a prescribed educational, research or other institution in Singapore on or after 1 January 2012 unless the person provides to —(a)

the approved museum, approved recipient, Government, institution of a public character or educational, research or other institution; or

(b)

in a case where the donation is made under subsection (3)(c) to an institution of a public character indirectly through a grant‑making philanthropic organisation, the grant‑making philanthropic organisation,

as the case may be, such information within such time and in such form and manner as the Comptroller may specify.

(3C) A donation made on or after 18 December 2012 of any property or money referred to in subsection (3)(b)(i) or (ii), (c), (d), (e) or (f) to a recipient under that provision, which is subject to any condition specified by the donor as to the purpose for which the donation may be applied (including where the donor specifies another purpose for the application of the donation in the event the firstmentioned purpose should fail), is treated as a donation under that provision if (and only if) all of the following requirements are satisfied:(a)

except where the recipient is the Government, each specified purpose must be one that advances an objective of the recipient set out in its governing instrument;

(b)

none of the specified purposes must be to advance the interests (whether directly or indirectly) of a particular race, belief or religion, or of a particular person or persons;

(c)

the donor did not specify or imply in any manner that any part of the property or money that cannot be used for any of the specified purposes must revert to the donor or be given to any other person (other than the recipient).

(3D) To avoid doubt, subsection (3C) applies to a donation of money referred to in subsection (3)(c)(ii) to a recipient under that provision, whether made directly to the recipient or indirectly through a grant‑making philanthropic organisation.

(3E) In subsections (3C) and (3D) —“governing instrument”, in relation to a recipient under subsection (3)(b)(i) or (ii), (c), (d), (e) or (f), includes the memorandum and articles of association, constitution, trust instrument or any rules or regulations governing the objects and administration of the recipient;

“recipient” —(a)

in the case of a donation referred to in subsection (3)(b)(i), means an approved museum;

(b)

in the case of a donation referred to in subsection (3)(b)(ii), means an approved recipient not being an approved museum;

(c)

in the case of a donation referred to in subsection (3)(c), means the Government or an institution of a public character;

(d)

in the case of a donation referred to in subsection (3)(d), means an institution of a public character or a prescribed educational, research or other institution in Singapore; or

(e)

in the case of a donation referred to in subsection (3)(e) or (f), means an institution of a public character.

(3F) Subject to subsection (3G), a donation referred to in subsection (3)(b), (c), (d), (e) or (f) is eligible for a deduction under that provision even if the donor or another person receives or will receive a benefit in consequence of making the donation.

(3G) Where a donor who makes a donation referred to in subsection (3)(b), (c), (d), (e) or (f), or a person connected with the donor, receives or will receive a benefit in consequence of making the donation, a reference to the value or amount of the donation under that provision excludes an amount equivalent to the value of the benefit.

(3H) The Minister may by rules —(a)

exclude any type of benefit from the application of subsection (3G); and

(b)

provide for the basis for determining the value of any benefit under that subsection.

(3I) To avoid doubt, the Comptroller may make an assessment or additional assessment under section 74 if the benefit is received only after the deduction of the donation under subsection (3) is made.

(3J) In subsection (3G), a person is connected with the donor if —(a)

the person is a relative of the donor within the meaning of section 37N(12);

(b)

the person, or a person who is the person’s relative within the meaning of section 37N(12), directly or indirectly controls the donor;

(c)

the person is controlled, directly or indirectly, by the donor; or

(d)

the person and the donor, directly or indirectly, are under the control of a common person.

(3K) No approval may be granted for the purposes of subsection (3)(d) for a donation made on or after 21 February 2017.[39/2017]

(4) A deduction under subsection (3)(a)(i) is to be made in the following order:(a)

firstly, against statutory income from the same trade, business, profession or vocation;

(b)

secondly, against statutory income from any other trade, business, profession or vocation;

(c)

thirdly, against statutory income from any other source.

(5) A deduction under subsection (3)(a)(i) is to be made as far as possible in the order specified in subsection (4) from the statutory income of the first year of assessment after the year in which such loss was incurred, and, so far as it cannot be so made, then from the statutory income of the next year of assessment, and so on.

(6) Where, in any year of assessment, the amount of loss incurred by any person during the year preceding the year of assessment is not fully deducted under subsection (3)(a)(ii), the balance of such loss, after deducting any amount of such loss transferred to a claimant company under section 37B or to a spouse under section 37C or 37E, or deducted against income for the immediate preceding year of assessment under section 37D(1) or any of the 3 immediate preceding years of assessment under section 37D(1A), is available for deduction against the person’s statutory income for subsequent year of assessment under subsection (3)(a)(i).[39/2017; 41/2020]

(7) A deduction under this section to any person in respect of any sum allowable under subsection (3)(b), (c), (d), (e) or (f) is only allowed against the person’s statutory income after the deduction under subsection (3)(a) and sections 37AA, 37AB and 37N.[Act 30 of 2023 wef 30/10/2023]

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

(8) Subject to subsections (2), (7) and (12), the deduction to any person in respect of any sum allowable under subsection (3)(b), (c), (d), (e) or (f) is to be allowed —(a)

as far as possible against the person’s statutory income of the first year of assessment after the year in which the donation was made by the person; and

(b)

so far as the deduction cannot be so allowed, after deducting any of such sum transferred to a claimant company under section 37B or to a spouse under section 37C, then from the person’s statutory income of the next year of assessment,

and so on, except that any balance of the donation not deducted against the person’s statutory income of the fifth year of assessment after the year of assessment relating to the basis period in which the donation was made is disregarded.

(9) For the purposes of subsections (7) and (8), any sum allowable under subsection (3)(b), (c), (d), (e) or (f) in respect of any donation made on an earlier date is deemed to have been deducted first.

(10) For the purposes of subsection (3), the loss incurred during any year is computed, where the Comptroller so decides, by reference to the year ending on a day in such year which would have been adopted under section 35(4) for the computation of the statutory income of the following year of assessment if a profit had arisen.

(10A) For the purposes of subsection (3)(b) to (f), the reference to the year preceding any year of assessment is —(a)

if the person making the donation is not an individual and is one to whom a direction is made under section 35(4);

(b)

if the persons making the donation are the partners of a partnership, a direction is made under section 35(4) in relation to the income of that partnership, and the donation is made by them in the name of the partnership; or

(c)

if the person making the donation is an individual to whom a direction is made under section 35(4), and the donation is made by the person in the name of the trade, business or profession to which the accounts relate,

a reference to —

(d)

the period of 12 months or such other period as the Comptroller may allow, ending on the day the accounts of the person or the partnership (as the case may be) are made up to; or

(e)

such other period as the Comptroller, having regard to any special circumstance, otherwise directs.

(11) No deduction is allowed under this section to any person in respect of any sum which has been allowed as a deduction under this section against the income of his or her spouse chargeable in his or her own name.

(12) Despite subsection (3), the amount of any loss incurred by a company in any trade or business or any sum allowable under subsection (3)(b), (c), (d), (e) or (f) to a company in respect of any donation is disregarded unless the Comptroller is satisfied that the shareholders of the company on the last day of the year in which the loss was incurred or the donation was made (as the case may be) were substantially the same as the shareholders of the company on the first day of the year of assessment in which such loss or donation would otherwise be deductible under subsection (3).

(13) A loss or donation disregarded under subsection (12) must not be allowed in any subsequent year of assessment.

(14) For the purposes of subsection (12) —(a)

the shareholders of a company at any date are not deemed to be substantially the same as the shareholders at any other date unless, on both those dates, not less than 50% of the total number of issued shares of the company are held by or on behalf of the same persons;

(b)

shares in a company held by or on behalf of another company are deemed to be held by the shareholders of the last mentioned company; and

(c)

shares held by or on behalf of the trustee of the estate of a deceased shareholder or by or on behalf of the person entitled to those shares as beneficiaries under the will or any intestacy of a deceased shareholder are deemed to be held by that deceased shareholder.

(15) For the purpose of subsection (14), where any part of a share of a shareholder is not fully paid up, there is to be disregarded a proportion equal to

where A

is the amount that has not been paid in respect of the share; and

B

is the total amount payable in respect of the share.

(16) The Minister or such person as the Minister may appoint may, where there is a substantial change in the shareholders of a company and the Minister or appointed person is satisfied that such change is not for the purpose of deriving any tax benefit or obtaining any tax advantage, exempt that company from the provisions of subsection (12).

(17) Upon an exemption under subsection (16) —(a)

any loss referred to in subsection (3)(a) incurred by a company may only be deducted against the profits from the same trade or business of the company in respect of which that loss was incurred; and

(b)

any balance of the donation referred to in subsection (8) is allowed against the person’s statutory income of the year of assessment in which such donation would otherwise be deductible under that subsection.

(18) For the purposes of subsection (3)(b), “museum” includes any institution established for the purpose of acquiring any collection of artefacts and making them accessible to the public.

(18A) For the purposes of subsection (3)(c)(ii), the Minister may make regulations with respect to the following matters:(a)

the registration of a grant‑making philanthropic organisation;

(b)

the deregistration of an organisation referred to in paragraph (a);

(c)

the issue of tax deduction receipts and maintenance of records and accounts by a registered grant‑making philanthropic organisation for donations received by it and the audit of such records and accounts;

(d)

the requirements to be complied with by a registered grant‑making philanthropic organisation;

(e)

any other matter for giving full effect to or for carrying out the purposes of that provision.

(18B) Where a registered grant‑making philanthropic organisation contravenes any regulation made under subsection (18A), being a regulation prescribed as one to which this subsection applies —(a)

the organisation is liable to pay to the Comptroller a financial penalty of the higher of $100 and the amount ascertained by the formula

(b)

the Minister or such person as the Minister may appoint may deregister the organisation.

(18BA) The Comptroller may for any good cause remit the whole or any part of the financial penalty payable under subsection (18B).[37/2014]

(18C) Despite anything to the contrary in this Act or any other written law, a registered grant‑making philanthropic organisation must keep and retain in safe custody all records and accounts in respect of any donation maintained under regulations made under subsection (18A), for a period of 7 years or such period as may be prescribed by regulations from the year of assessment relating to the year in which the donation is received by the organisation.

(18D) In subsection (3)(c)(ii), “grant‑making philanthropic organisation” means —(a)

a charity registered or exempt from registration under the Charities Act 1994; or

(b)

a not‑for‑profit organisation approved under section 13R.

(19) For the purposes of subsection (3)(e) and subject to subsection (3G) —(a)

the amount in respect of any donation of shares in a company or units in a unit trust listed on the Singapore Exchange is the price of such shares or units (as the case may be) in the open market at the last transaction of such shares or units on the date of the donation;

(b)

the amount in respect of any donation of units in unit trusts traded in Singapore (other than those listed on the Singapore Exchange) is the bid price of such units immediately after the date of the donation quoted by the manager of the unit trusts; and

(c)

“date of the donation”, in relation to any shares or units referred to in paragraph (a) or (b) (as the case may be), means the date of legal transfer to the institution of a public character of the donation of such shares or units.