§ 40D — Relief for non‑resident deriving income from activity as public entertainer and employee, etc.

40D.—(1) This section applies to a person who, in any year of assessment, is not resident in Singapore and who derives income from 2 or more of the following sources (called in this section relevant income) in the year preceding that year of assessment:(a)

income derived as a public entertainer within the meaning of section 40A;

(b)

income from the exercise of any employment in Singapore; and

(c)

any withdrawal from the person’s SRS account.

(2) Any person to whom this section applies is, if the tax payable by the person in respect of that year of assessment is attributable to the relevant income, allowed relief in respect of that year of assessment in the following manner:(a)

where the person only derives the relevant income in Singapore, by reduction of the rate of tax to the rate specified under section 40A, 40B or 40C (as the case may be) on every dollar of the chargeable income attributable to the source of income mentioned in subsection (1)(a), (b) or (c), respectively;

(b)

where the person possesses any other source of income in Singapore and the total assessable income exceeds the statutory income attributable to the sources giving rise to the relevant income, by reduction of the rate of tax to —(i)

the rate of tax specified in section 40A(2) on such part of the chargeable income as bears the same proportion to the total chargeable income as the statutory income attributable to such activity as a public entertainer bears to the total assessable income;

(ii)

the rate of tax specified in section 40B(2) on such part of the chargeable income as bears the same proportion to the total chargeable income as the statutory income attributable to such activity as a non‑resident employee bears to the total assessable income; and

(iii)

the rate of tax specified in section 40C(2) on such part of the chargeable income as bears the same proportion to the total chargeable income as the statutory income attributable to the withdrawals from the person’s SRS account bears to the total assessable income;

(c)

where the person possesses any other source of income in Singapore and the total assessable income is equal to or less than the statutory income attributable to the sources giving rise to the relevant income, by reduction of the rate of tax to —(i)

the lowest of the rates specified under sections 40A(2), 40B(2), 40C(2) and 43(1)(b) (as the case may be) on every dollar of the chargeable income or the amount of statutory income attributable to that source which is subject to tax at that lowest rate, whichever is less;

(ii)

the second lowest of the rates specified under sections 40A(2), 40B(2), 40C(2) and 43(1)(b) (as the case may be) on every dollar of the chargeable income in excess of the statutory income taxed at the lowest rate, or the amount of statutory income attributable to that source which is subject to tax at that second lowest rate, whichever is less; and

(iii)

the third lowest of the rates specified under sections 40A(2), 40B(2), 40C(2) and 43(1)(b) (as the case may be) on every dollar of the chargeable income in excess of the statutory income taxed at the other 2 lower rates, or the amount of statutory income attributable to that source which is subject to tax at that third lowest rate, whichever is less.

(3) The relief available to any person under subsection (2) must be so limited that the tax payable in respect of the income mentioned in subsection (1)(b) or (c), must not be less than that which would be payable by a resident of Singapore in the same circumstances.

(3A) To avoid doubt, for the purpose of subsection (3), section 39A applies to the computation of the tax that would be payable by a resident of Singapore in the circumstances mentioned in that subsection.[34/2016]

(4) For the purposes of computing the tax payable by a resident of Singapore in the same circumstances mentioned in subsection (3), the statutory income derived as a public entertainer by a person to whom this section applies is excluded.

(5) [Deleted by Act 41 of 2020]

(6) In this section —“non‑resident employee” has the meaning given by section 40B;

“public entertainer” has the meaning given by section 40A;

“statutory income attributable to such activity as a non‑resident employee” has the meaning given by section 40B;

“statutory income attributable to such activity as a public entertainer” has the meaning given by section 40A;

“statutory income attributable to the withdrawals from the person’s SRS account” has the meaning given by section 40C;

“total assessable income” means the remainder of the statutory income of a person after the deduction allowed under section 37(3)(a) has been made;

“withdrawals from the person’s SRS account” has the meaning given by section 40C.

—(1) This section applies to a person who, in any year of assessment, is not resident in Singapore and who derives income from 2 or more of the following sources (called in this section relevant income) in the year preceding that year of assessment:(a)

income derived as a public entertainer within the meaning of section 40A;

(b)

income from the exercise of any employment in Singapore; and

(c)

any withdrawal from the person’s SRS account.

(2) Any person to whom this section applies is, if the tax payable by the person in respect of that year of assessment is attributable to the relevant income, allowed relief in respect of that year of assessment in the following manner:(a)

where the person only derives the relevant income in Singapore, by reduction of the rate of tax to the rate specified under section 40A, 40B or 40C (as the case may be) on every dollar of the chargeable income attributable to the source of income mentioned in subsection (1)(a), (b) or (c), respectively;

(b)

where the person possesses any other source of income in Singapore and the total assessable income exceeds the statutory income attributable to the sources giving rise to the relevant income, by reduction of the rate of tax to —(i)

the rate of tax specified in section 40A(2) on such part of the chargeable income as bears the same proportion to the total chargeable income as the statutory income attributable to such activity as a public entertainer bears to the total assessable income;

(ii)

the rate of tax specified in section 40B(2) on such part of the chargeable income as bears the same proportion to the total chargeable income as the statutory income attributable to such activity as a non‑resident employee bears to the total assessable income; and

(iii)

the rate of tax specified in section 40C(2) on such part of the chargeable income as bears the same proportion to the total chargeable income as the statutory income attributable to the withdrawals from the person’s SRS account bears to the total assessable income;

(c)

where the person possesses any other source of income in Singapore and the total assessable income is equal to or less than the statutory income attributable to the sources giving rise to the relevant income, by reduction of the rate of tax to —(i)

the lowest of the rates specified under sections 40A(2), 40B(2), 40C(2) and 43(1)(b) (as the case may be) on every dollar of the chargeable income or the amount of statutory income attributable to that source which is subject to tax at that lowest rate, whichever is less;

(ii)

the second lowest of the rates specified under sections 40A(2), 40B(2), 40C(2) and 43(1)(b) (as the case may be) on every dollar of the chargeable income in excess of the statutory income taxed at the lowest rate, or the amount of statutory income attributable to that source which is subject to tax at that second lowest rate, whichever is less; and

(iii)

the third lowest of the rates specified under sections 40A(2), 40B(2), 40C(2) and 43(1)(b) (as the case may be) on every dollar of the chargeable income in excess of the statutory income taxed at the other 2 lower rates, or the amount of statutory income attributable to that source which is subject to tax at that third lowest rate, whichever is less.

(3) The relief available to any person under subsection (2) must be so limited that the tax payable in respect of the income mentioned in subsection (1)(b) or (c), must not be less than that which would be payable by a resident of Singapore in the same circumstances.

(3A) To avoid doubt, for the purpose of subsection (3), section 39A applies to the computation of the tax that would be payable by a resident of Singapore in the circumstances mentioned in that subsection.[34/2016]

(4) For the purposes of computing the tax payable by a resident of Singapore in the same circumstances mentioned in subsection (3), the statutory income derived as a public entertainer by a person to whom this section applies is excluded.

(5) [Deleted by Act 41 of 2020]

(6) In this section —“non‑resident employee” has the meaning given by section 40B;

“public entertainer” has the meaning given by section 40A;

“statutory income attributable to such activity as a non‑resident employee” has the meaning given by section 40B;

“statutory income attributable to such activity as a public entertainer” has the meaning given by section 40A;

“statutory income attributable to the withdrawals from the person’s SRS account” has the meaning given by section 40C;

“total assessable income” means the remainder of the statutory income of a person after the deduction allowed under section 37(3)(a) has been made;

“withdrawals from the person’s SRS account” has the meaning given by section 40C.