§ 37D — Carry‑back of capital allowances and losses

37D.—(1) Subject to the provisions of this section, a person may deduct any qualifying deduction for any year of assessment against the person’s assessable income for the immediate preceding year of assessment.(1A) Subject to the other provisions of this section, a person may, instead of deducting any qualifying deduction for the year of assessment 2020 or 2021 (called in this section the subject YA) in accordance with subsection (1), deduct the qualifying deduction for the subject YA against the person’s assessable income for the 3 years of assessment immediately preceding the subject YA.[27/2021]

(1B) A qualifying deduction for the subject YA under subsection (1A) must be deducted in the following order:(a)

the qualifying deduction must first be made against the person’s assessable income for the third year of assessment immediately preceding the subject YA;

(b)

any balance of the qualifying deduction after the deduction in paragraph (a) must then be made against the person’s assessable income for the second year of assessment immediately preceding the subject YA;

(c)

any balance of the qualifying deduction after the deduction in paragraph (b) must then be made against the person’s assessable income for the year of assessment immediately preceding the subject YA.[27/2021]

(1C) Where a person is entitled to make 2 or more of the qualifying deductions set out in the first column of the following table against the person’s assessable income for a particular year of assessment, then the deductions must be made in the order set out in the second column of the table, and each deduction must as far as possible be made against such assessable income (or any balance of such income after an earlier deduction) by the amount set out opposite that deduction in the third column of the table:First

column

Second

column

Third

column

A qualifying deduction under subsection (1)

First

Full amount of the qualifying deduction

A qualifying deduction for the year of assessment 2020 under subsection (1A)

Second

Full amount of the qualifying deduction or its balance as described in subsection (1B)

A qualifying deduction for the year of assessment 2021 under subsection (1A)

Third

Full amount of the qualifying deduction or its balance as described in subsection (1B)

[27/2021]

(1D) Any election made by a person under subsection (6) for the deduction of any qualifying deduction for the year of assessment 2020 to be in accordance with subsection (1A) as in force immediately before 17 February 2021, is treated as an election made for the deduction of such qualifying deduction to be in accordance with subsection (1A) as in force on that date.[27/2021]

(2) Qualifying deductions are to be deducted in the following order:(a)

any allowance specified in subsection (9)(a);

(b)

any loss specified in subsection (9)(b).

(3) The amount of qualifying deduction to be deducted for any year of assessment is the lower of —(a)

the amount of qualifying deduction available for deduction for that year of assessment; and

(b)

the assessable income of the person for the immediate preceding year of assessment.

(3A) Despite subsection (3), where a person makes an election under subsection (6) for the deduction of any qualifying deduction for the year of assessment 2020 or 2021 in accordance with subsection (1A), the amount of the qualifying deduction to be deducted against the assessable income for any of the 3 years of assessment immediately preceding it is the lower of —(a)

the amount of the qualifying deduction available for deduction for the second‑mentioned year of assessment under subsection (1B); and

(b)

the amount of the person’s assessable income for the second‑mentioned year of assessment or any balance of the assessable income as determined in accordance with the table in subsection (1C) against which the deduction may be made.[41/2020; 27/2021]

(4) Subject to the provisions of this section, section 37A (as it applies in a case mentioned in section 37A(1)(b)) applies, with the necessary modifications, to the deduction of any qualifying deduction by any company for any year of assessment against its assessable income for the immediate preceding year of assessment or (as the case may be) any of the 3 immediate preceding years of assessment, as if —(a)

the qualifying deduction for the year of assessment is qualifying deduction for an earlier year of assessment;

(b)

the income for the immediate preceding year of assessment or (as the case may be) any of the 3 immediate preceding years of assessment is income for the year of assessment concerned; and

(c)

in section 37A(4) and (5) —(i)

a reference to unabsorbed allowances, losses or donations or UALD is a reference to qualifying deduction;

(ii)

a reference to corresponding allowances, losses or donations is a reference to allowances or losses; and

(iii)

a reference to chargeable income of the company is a reference to assessable income for the immediate preceding year of assessment or (as the case may be) any of the 3 immediate preceding years of assessment of the company.[41/2020]

(4AA) Subject to the provisions of this section, section 37A (as it applies in a case mentioned in section 37A(1)(d)) applies, with the necessary modifications, to the deduction of any qualifying deduction by a body of persons for the year of assessment 2023 or a subsequent year of assessment, against its assessable income for the immediate preceding year of assessment, as if —(a)

the qualifying deduction for the year of assessment were a qualifying deduction for an earlier year of assessment;

(b)

the income for the immediate preceding year of assessment were income for the year of assessment concerned; and

(c)

in section 37A(5) —(i)

a reference to UALD were a reference to the qualifying deduction;

(ii)

a reference to corresponding allowances, losses or donations were a reference to allowances or losses; and

(iii)

a reference to chargeable income of the body of persons were a reference to assessable income for the immediate preceding year of assessment of the body of persons.[Act 33 of 2022 wef 04/11/2022]

(4A) For the purposes of applying section 37A to the provisions of this section under subsection (4) or (4AA), any reference to “rate of tax” in section 37A is a reference to —(a)

the rate of tax under section 43(1)(a) applicable to the year of assessment for which the assessable income is deducted by any qualifying deduction;

(b)

the concessionary rate of tax applicable to the year of assessment for which any allowance specified in subsection (9)(a) is made to or any loss specified in subsection (9)(b) is incurred by a company or body of persons; or[Act 33 of 2022 wef 04/11/2022]

(c)

the concessionary rate of tax applicable to the assessable income which is deducted by any qualifying deduction,

as the case may be.

[41/2020]

[Act 33 of 2022 wef 04/11/2022]

(5) The amount of qualifying deduction to be deducted for any year of assessment must not exceed $100,000; and in the case of a company or body of persons is determined by the formula

where A

is any amount deducted against assessable income subject to tax at the rate of tax specified in section 43(1)(a); and

B

is any amount deducted against assessable income subject to tax at any concessionary rate of tax divided by the adjustment factor for that concessionary rate of tax.

[Act 33 of 2022 wef 04/11/2022]

(5A) [Deleted by Act 39 of 2017]

(6) Any person deducting any qualifying deduction for any year of assessment against the person’s assessable income for the immediate preceding year of assessment under subsection (1) or any of the 3 immediate preceding years of assessment under subsection (1A) must notify the Comptroller and make an election to make such deduction —(a)

in the case of an individual, not later than 30 days from the date of service of the notice of assessment on the individual; and

(b)

in the case of any other person, not later than the time of lodgment of the person’s return of income for the year of assessment,

or within such further time as the Comptroller may allow.

[39/2017; 41/2020]

(7) Any election made under subsection (6) is irrevocable and must be accompanied by such particulars as the Comptroller may require.

(8) Where the Comptroller discovers that any deduction made under subsection (1) against the assessable income of any person for any year of assessment is or has become excessive, the Comptroller may make an assessment on the person on the amount which, in the Comptroller’s opinion, ought to have been charged to tax in that year of assessment within 7 years (if that year of assessment is 2007 or a preceding year of assessment) or 5 years (if that year of assessment is 2008 or a subsequent year of assessment) after the expiry of that year of assessment.[41/2020]

(8A) Despite subsection (8), where the Comptroller discovers that any deduction made under subsection (1A) of any qualifying deduction for a subject YA against the assessable income of a person for the year of assessment 2017, 2018, 2019 or 2020 (whichever is applicable) has become excessive, the Comptroller may make an assessment on the person on the amount which, in the Comptroller’s opinion, ought to have been charged to tax in the year of assessment 2017, 2018, 2019 or 2020, as the case may be —(a)

in the case of a qualifying deduction for the year of assessment 2020 — on or before 31 December 2024; or

(b)

in the case of a qualifying deduction for the year of assessment 2021 — on or before 31 December 2025.[27/2021]

(9) For the purposes of this section, subject to sections 35, 37 and 37A, qualifying deductions, in relation to any person, for each year of assessment, are —(a)

any allowance falling to be made under section 16, 17, 18B, 18C, 19, 19A, 19B, 19C, 19D or 20 that is in excess of the person’s income from all sources chargeable to tax for that year of assessment and is not transferred under section 37B or 37C; and

(b)

any loss incurred by the person in any trade, business, profession or vocation which is not deducted for that year of assessment because of insufficiency of statutory income of the person and is not transferred under section 37B or 37C.

(10) Despite subsection (9), any loss deemed to be a loss incurred from a trade or business for the purpose of section 97V of the Economic Expansion Incentives (Relief from Income Tax) Act 1967 in force immediately before 19 April 2016 is not deductible.[11/2016]

(11) Despite subsection (9), any allowance specified in subsection (9)(a) made to a person for any year of assessment is not deductible against assessable income for the immediate preceding year of assessment or (as the case may be) any of the 3 immediate preceding years of assessment if the person did not carry on that trade, business or profession in the basis period for the year of assessment in which the allowance is claimed.[39/2017; 41/2020]

(12) Despite subsection (9), any allowance specified in subsection (9)(a) made to or any loss specified in subsection (9)(b) incurred by a company for any year of assessment is not deductible against income for the immediate preceding year of assessment or (as the case may be) any of the 3 immediate preceding years of assessment unless the Comptroller is satisfied that the shareholders of the company on the first day of the year in which the allowances arose or in which the loss was incurred (as the case may be) were substantially the same as the shareholders of the company on the last day of the year of assessment in which the allowance is claimed.[39/2017; 41/2020]

(13) 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.

(14) For the purpose of subsection (13)(a), 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.

(15) 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).

(16) Upon an exemption under subsection (15), any allowance specified in subsection (9)(a) made to or any loss specified in subsection (9)(b) incurred by a company may only be deducted against the profits from the same trade or business of the company in respect of which the allowance was made or the loss was incurred.

(16A) This section does not entitle any qualifying deduction of a life insurer for any year of assessment to be deducted against any income of the insurer for any preceding year of assessment from a participating fund that is apportioned to policyholders in accordance with regulations made under section 43(9) or 43C, unless the qualifying deduction is —(a)

a qualifying deduction in respect of any income from that participating fund that is apportioned to policyholders in accordance with those regulations; or

(b)

a qualifying deduction in respect of any income of the insurer from another participating fund that is also apportioned to policyholders in accordance with those regulations.[27/2021]

(16B) This section also does not entitle any qualifying deduction of a life insurer for any year of assessment in respect of any income of the insurer from a participating fund that is apportioned to policyholders in accordance with regulations made under section 43(9) or 43C, to be deducted against any income of the insurer for any preceding year of assessment, other than income from a participating fund that is apportioned to policyholders in accordance with regulations made under section 43(9) or 43C.[27/2021]

(17) In this section —“adjustment factor”, in relation to a concessionary rate of tax, means the factor ascertained in accordance with the formula

where C

is the rate of tax specified in section 43(1)(a); and

D

is the concessionary rate of tax;

“assessable income” means —(a)

in relation to a company, assessable income of the company as determined under section 37 after deducting any deduction allowed under section 37F, investment allowance under Part 8 of the Economic Expansion Incentives (Relief from Income Tax) Act 1967 and any deductions claimed under section 37B;[Act 39 of 2023 wef 29/12/2023]

(b)

in relation to an individual, assessable income of the individual as determined under section 37 after deducting any deductions claimed under section 37C; and

(c)

in relation to any other person, assessable income of the person as determined under section 37;

“concessionary rate of tax”, in relation to a body of persons, means any rate of tax lower than the rate specified in section 43(1)(a) in accordance with regulations made under section 43H;[Act 33 of 2022 wef 04/11/2022]

“concessionary rate of tax”, in relation to a company, means any rate of tax lower than the rate specified in section 43(1)(a) in accordance with —(a)

any order made under section 13(12);

(b)

section 43A, 43C, 43D of this Act as in force before 29 December 2016, 43D, 43F of this Act as in force before 29 December 2016, 43E, 43H of this Act as in force before 29 December 2016, 43F, 43G, 43K of this Act as in force before 29 December 2016, 43L of this Act as in force before 1 November 2006, 43H, 43I, 43J, 43K, 43S of this Act as in force before 29 December 2016, 43T of this Act as in force before 29 December 2016, 43U of this Act as in force before 26 October 2017, 43V of this Act as in force before 29 December 2016, 43L, 43M, 43N, 43O, 43P, 43Q, 43R, 43S, 43T, 43U, 43V, 43W or 43X, or the regulations made under any of those sections, as the case may be; or

(c)

section 21(9) or (13) or 23(1)(b) (as the case may be) of the Economic Expansion Incentives (Relief from Income Tax) Act 1967.[34/2016; 39/2017; 45/2018; 27/2021]

[Act 33 of 2022 wef 04/11/2022]

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

any company to which section 10D applies; or

(b)

any person, in respect of qualifying deductions under subsection (9) relating to any income the tax on which is remitted under the provisions of this Act for any year of assessment unless —(i)

no such remission would be given to any income in the following year of assessment; or

(ii)

the remission is to effect a deduction for any outgoing or expense incurred by the person not otherwise deductible under section 14.[37E

—(1) Subject to the provisions of this section, a person may deduct any qualifying deduction for any year of assessment against the person’s assessable income for the immediate preceding year of assessment.

(1A) Subject to the other provisions of this section, a person may, instead of deducting any qualifying deduction for the year of assessment 2020 or 2021 (called in this section the subject YA) in accordance with subsection (1), deduct the qualifying deduction for the subject YA against the person’s assessable income for the 3 years of assessment immediately preceding the subject YA.[27/2021]

(1B) A qualifying deduction for the subject YA under subsection (1A) must be deducted in the following order:(a)

the qualifying deduction must first be made against the person’s assessable income for the third year of assessment immediately preceding the subject YA;

(b)

any balance of the qualifying deduction after the deduction in paragraph (a) must then be made against the person’s assessable income for the second year of assessment immediately preceding the subject YA;

(c)

any balance of the qualifying deduction after the deduction in paragraph (b) must then be made against the person’s assessable income for the year of assessment immediately preceding the subject YA.[27/2021]

(1C) Where a person is entitled to make 2 or more of the qualifying deductions set out in the first column of the following table against the person’s assessable income for a particular year of assessment, then the deductions must be made in the order set out in the second column of the table, and each deduction must as far as possible be made against such assessable income (or any balance of such income after an earlier deduction) by the amount set out opposite that deduction in the third column of the table:First

column

Second

column

Third

column

A qualifying deduction under subsection (1)

First

Full amount of the qualifying deduction

A qualifying deduction for the year of assessment 2020 under subsection (1A)

Second

Full amount of the qualifying deduction or its balance as described in subsection (1B)

A qualifying deduction for the year of assessment 2021 under subsection (1A)

Third

Full amount of the qualifying deduction or its balance as described in subsection (1B)

[27/2021]

(1D) Any election made by a person under subsection (6) for the deduction of any qualifying deduction for the year of assessment 2020 to be in accordance with subsection (1A) as in force immediately before 17 February 2021, is treated as an election made for the deduction of such qualifying deduction to be in accordance with subsection (1A) as in force on that date.[27/2021]

(2) Qualifying deductions are to be deducted in the following order:(a)

any allowance specified in subsection (9)(a);

(b)

any loss specified in subsection (9)(b).

(3) The amount of qualifying deduction to be deducted for any year of assessment is the lower of —(a)

the amount of qualifying deduction available for deduction for that year of assessment; and

(b)

the assessable income of the person for the immediate preceding year of assessment.

(3A) Despite subsection (3), where a person makes an election under subsection (6) for the deduction of any qualifying deduction for the year of assessment 2020 or 2021 in accordance with subsection (1A), the amount of the qualifying deduction to be deducted against the assessable income for any of the 3 years of assessment immediately preceding it is the lower of —(a)

the amount of the qualifying deduction available for deduction for the second‑mentioned year of assessment under subsection (1B); and

(b)

the amount of the person’s assessable income for the second‑mentioned year of assessment or any balance of the assessable income as determined in accordance with the table in subsection (1C) against which the deduction may be made.[41/2020; 27/2021]

(4) Subject to the provisions of this section, section 37A (as it applies in a case mentioned in section 37A(1)(b)) applies, with the necessary modifications, to the deduction of any qualifying deduction by any company for any year of assessment against its assessable income for the immediate preceding year of assessment or (as the case may be) any of the 3 immediate preceding years of assessment, as if —(a)

the qualifying deduction for the year of assessment is qualifying deduction for an earlier year of assessment;

(b)

the income for the immediate preceding year of assessment or (as the case may be) any of the 3 immediate preceding years of assessment is income for the year of assessment concerned; and

(c)

in section 37A(4) and (5) —(i)

a reference to unabsorbed allowances, losses or donations or UALD is a reference to qualifying deduction;

(ii)

a reference to corresponding allowances, losses or donations is a reference to allowances or losses; and

(iii)

a reference to chargeable income of the company is a reference to assessable income for the immediate preceding year of assessment or (as the case may be) any of the 3 immediate preceding years of assessment of the company.[41/2020]

(4AA) Subject to the provisions of this section, section 37A (as it applies in a case mentioned in section 37A(1)(d)) applies, with the necessary modifications, to the deduction of any qualifying deduction by a body of persons for the year of assessment 2023 or a subsequent year of assessment, against its assessable income for the immediate preceding year of assessment, as if —(a)

the qualifying deduction for the year of assessment were a qualifying deduction for an earlier year of assessment;

(b)

the income for the immediate preceding year of assessment were income for the year of assessment concerned; and

(c)

in section 37A(5) —(i)

a reference to UALD were a reference to the qualifying deduction;

(ii)

a reference to corresponding allowances, losses or donations were a reference to allowances or losses; and

(iii)

a reference to chargeable income of the body of persons were a reference to assessable income for the immediate preceding year of assessment of the body of persons.[Act 33 of 2022 wef 04/11/2022]

(4A) For the purposes of applying section 37A to the provisions of this section under subsection (4) or (4AA), any reference to “rate of tax” in section 37A is a reference to —(a)

the rate of tax under section 43(1)(a) applicable to the year of assessment for which the assessable income is deducted by any qualifying deduction;

(b)

the concessionary rate of tax applicable to the year of assessment for which any allowance specified in subsection (9)(a) is made to or any loss specified in subsection (9)(b) is incurred by a company or body of persons; or[Act 33 of 2022 wef 04/11/2022]

(c)

the concessionary rate of tax applicable to the assessable income which is deducted by any qualifying deduction,

as the case may be.

[41/2020]

[Act 33 of 2022 wef 04/11/2022]

(5) The amount of qualifying deduction to be deducted for any year of assessment must not exceed $100,000; and in the case of a company or body of persons is determined by the formula

where A

is any amount deducted against assessable income subject to tax at the rate of tax specified in section 43(1)(a); and

B

is any amount deducted against assessable income subject to tax at any concessionary rate of tax divided by the adjustment factor for that concessionary rate of tax.

[Act 33 of 2022 wef 04/11/2022]

(5A) [Deleted by Act 39 of 2017]

(6) Any person deducting any qualifying deduction for any year of assessment against the person’s assessable income for the immediate preceding year of assessment under subsection (1) or any of the 3 immediate preceding years of assessment under subsection (1A) must notify the Comptroller and make an election to make such deduction —(a)

in the case of an individual, not later than 30 days from the date of service of the notice of assessment on the individual; and

(b)

in the case of any other person, not later than the time of lodgment of the person’s return of income for the year of assessment,

or within such further time as the Comptroller may allow.

[39/2017; 41/2020]

(7) Any election made under subsection (6) is irrevocable and must be accompanied by such particulars as the Comptroller may require.

(8) Where the Comptroller discovers that any deduction made under subsection (1) against the assessable income of any person for any year of assessment is or has become excessive, the Comptroller may make an assessment on the person on the amount which, in the Comptroller’s opinion, ought to have been charged to tax in that year of assessment within 7 years (if that year of assessment is 2007 or a preceding year of assessment) or 5 years (if that year of assessment is 2008 or a subsequent year of assessment) after the expiry of that year of assessment.[41/2020]

(8A) Despite subsection (8), where the Comptroller discovers that any deduction made under subsection (1A) of any qualifying deduction for a subject YA against the assessable income of a person for the year of assessment 2017, 2018, 2019 or 2020 (whichever is applicable) has become excessive, the Comptroller may make an assessment on the person on the amount which, in the Comptroller’s opinion, ought to have been charged to tax in the year of assessment 2017, 2018, 2019 or 2020, as the case may be —(a)

in the case of a qualifying deduction for the year of assessment 2020 — on or before 31 December 2024; or

(b)

in the case of a qualifying deduction for the year of assessment 2021 — on or before 31 December 2025.[27/2021]

(9) For the purposes of this section, subject to sections 35, 37 and 37A, qualifying deductions, in relation to any person, for each year of assessment, are —(a)

any allowance falling to be made under section 16, 17, 18B, 18C, 19, 19A, 19B, 19C, 19D or 20 that is in excess of the person’s income from all sources chargeable to tax for that year of assessment and is not transferred under section 37B or 37C; and

(b)

any loss incurred by the person in any trade, business, profession or vocation which is not deducted for that year of assessment because of insufficiency of statutory income of the person and is not transferred under section 37B or 37C.

(10) Despite subsection (9), any loss deemed to be a loss incurred from a trade or business for the purpose of section 97V of the Economic Expansion Incentives (Relief from Income Tax) Act 1967 in force immediately before 19 April 2016 is not deductible.[11/2016]

(11) Despite subsection (9), any allowance specified in subsection (9)(a) made to a person for any year of assessment is not deductible against assessable income for the immediate preceding year of assessment or (as the case may be) any of the 3 immediate preceding years of assessment if the person did not carry on that trade, business or profession in the basis period for the year of assessment in which the allowance is claimed.[39/2017; 41/2020]

(12) Despite subsection (9), any allowance specified in subsection (9)(a) made to or any loss specified in subsection (9)(b) incurred by a company for any year of assessment is not deductible against income for the immediate preceding year of assessment or (as the case may be) any of the 3 immediate preceding years of assessment unless the Comptroller is satisfied that the shareholders of the company on the first day of the year in which the allowances arose or in which the loss was incurred (as the case may be) were substantially the same as the shareholders of the company on the last day of the year of assessment in which the allowance is claimed.[39/2017; 41/2020]

(13) 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.

(14) For the purpose of subsection (13)(a), 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.

(15) 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).

(16) Upon an exemption under subsection (15), any allowance specified in subsection (9)(a) made to or any loss specified in subsection (9)(b) incurred by a company may only be deducted against the profits from the same trade or business of the company in respect of which the allowance was made or the loss was incurred.

(16A) This section does not entitle any qualifying deduction of a life insurer for any year of assessment to be deducted against any income of the insurer for any preceding year of assessment from a participating fund that is apportioned to policyholders in accordance with regulations made under section 43(9) or 43C, unless the qualifying deduction is —(a)

a qualifying deduction in respect of any income from that participating fund that is apportioned to policyholders in accordance with those regulations; or

(b)

a qualifying deduction in respect of any income of the insurer from another participating fund that is also apportioned to policyholders in accordance with those regulations.[27/2021]

(16B) This section also does not entitle any qualifying deduction of a life insurer for any year of assessment in respect of any income of the insurer from a participating fund that is apportioned to policyholders in accordance with regulations made under section 43(9) or 43C, to be deducted against any income of the insurer for any preceding year of assessment, other than income from a participating fund that is apportioned to policyholders in accordance with regulations made under section 43(9) or 43C.[27/2021]

(17) In this section —“adjustment factor”, in relation to a concessionary rate of tax, means the factor ascertained in accordance with the formula

where C

is the rate of tax specified in section 43(1)(a); and

D

is the concessionary rate of tax;

“assessable income” means —(a)

in relation to a company, assessable income of the company as determined under section 37 after deducting any deduction allowed under section 37F, investment allowance under Part 8 of the Economic Expansion Incentives (Relief from Income Tax) Act 1967 and any deductions claimed under section 37B;[Act 39 of 2023 wef 29/12/2023]

(b)

in relation to an individual, assessable income of the individual as determined under section 37 after deducting any deductions claimed under section 37C; and

(c)

in relation to any other person, assessable income of the person as determined under section 37;

“concessionary rate of tax”, in relation to a body of persons, means any rate of tax lower than the rate specified in section 43(1)(a) in accordance with regulations made under section 43H;[Act 33 of 2022 wef 04/11/2022]

“concessionary rate of tax”, in relation to a company, means any rate of tax lower than the rate specified in section 43(1)(a) in accordance with —(a)

any order made under section 13(12);

(b)

section 43A, 43C, 43D of this Act as in force before 29 December 2016, 43D, 43F of this Act as in force before 29 December 2016, 43E, 43H of this Act as in force before 29 December 2016, 43F, 43G, 43K of this Act as in force before 29 December 2016, 43L of this Act as in force before 1 November 2006, 43H, 43I, 43J, 43K, 43S of this Act as in force before 29 December 2016, 43T of this Act as in force before 29 December 2016, 43U of this Act as in force before 26 October 2017, 43V of this Act as in force before 29 December 2016, 43L, 43M, 43N, 43O, 43P, 43Q, 43R, 43S, 43T, 43U, 43V, 43W or 43X, or the regulations made under any of those sections, as the case may be; or

(c)

section 21(9) or (13) or 23(1)(b) (as the case may be) of the Economic Expansion Incentives (Relief from Income Tax) Act 1967.[34/2016; 39/2017; 45/2018; 27/2021]

[Act 33 of 2022 wef 04/11/2022]

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

any company to which section 10D applies; or

(b)

any person, in respect of qualifying deductions under subsection (9) relating to any income the tax on which is remitted under the provisions of this Act for any year of assessment unless —(i)

no such remission would be given to any income in the following year of assessment; or

(ii)

the remission is to effect a deduction for any outgoing or expense incurred by the person not otherwise deductible under section 14.[37E