§ 45A — Application of section 45 to royalties, management fees, etc.

45A.—(1) Section 45(1) to (8) applies in relation to the payment of any income referred to in section 12(6) or (7) by any person to another person not known to the firstmentioned person to be resident in Singapore as those provisions apply to any interest paid by a person (X) to another person (Y) not known to X to be resident in Singapore and, for the purpose of such application, any reference in those provisions to interest is a reference to the income referred to in section 12(6) or (7).(2) Subject to such conditions as the Minister may impose, subsection (1) does not apply to any discount from any qualifying debt securities issued during the period from 17 February 2006 to 31 December 2028 (both dates inclusive).[37/2014; 45/2018; 41/2020]

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

(2A) Subsection (1) does not apply to any amount payable from any Islamic debt securities which are qualifying debt securities, and issued during the period from 1 January 2005 to 31 December 2028 (both dates inclusive), subject to such conditions as the Minister may impose.[37/2014; 45/2018]

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

(2AA) Regulations made to impose conditions under subsection (2A) for the disapplication of subsection (1) to any amount payable from Islamic debt securities issued between 1 January 2024 and 31 December 2028 (both dates inclusive), that are made in connection with the amendments made to subsection (2A) by section 41(a) of the Income Tax (Amendment) Act 2023, may be made to take effect from (and including) 1 January 2024.[Act 25 of 2025 wef 08/12/2025]

(2B) Subject to such conditions as the Minister may impose, subsection (1) does not apply to —(a)

any early redemption fee or redemption premium from any qualifying debt securities issued during the period from 15 February 2007 to 31 December 2028 (both dates inclusive); or[Act 30 of 2023 wef 15/02/2023]

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

(b)

any discount, early redemption fee or redemption premium from any qualifying project debt securities issued during the period from 15 February 2007 to 31 December 2025 (both dates inclusive).[37/2014; 45/2018]

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

[Act 30 of 2023 wef 15/02/2023]

(2BA) Regulations made to amend any regulations made for the purposes of subsection (2B) to replace the terms “break cost” and “prepayment fee” with the term “early redemption fee”, that are made in connection with section 41(b) and (c) of the Income Tax (Amendment) Act 2023, may be made to take effect from (and including) 15 February 2023.[Act 25 of 2025 wef 08/12/2025]

(2C) Subject to such conditions as the Minister may impose, subsection (1) does not apply to —(a)

such other income directly attributable to any qualifying debt securities issued on or after a prescribed date, as may be prescribed by regulations; or

(b)

such other income directly attributable to any qualifying project debt securities issued on or after a prescribed date, as may be prescribed by regulations.

(2D) Subsection (1) does not apply to any payment liable to be made on or after 17 February 2012 under any agreement or arrangement for the charter of any ship.

(2DA) To avoid doubt, the reference to a charter of a ship in subsection (2D) excludes a finance lease of the ship.[41/2020]

(2E) Subsection (1) does not apply to any payment liable to be made on or after 21 February 2014 by a person to a branch in Singapore of a company incorporated outside Singapore and not known to the person to be resident in Singapore.[37/2014]

(3) In this section —[Deleted by Act 30 of 2023 wef 15/02/2023]

“early redemption fee”, “qualifying debt securities”, “qualifying project debt securities” and “redemption premium” have the meanings given by section 13(16);[Act 30 of 2023 wef 15/02/2023]

“finance lease”, in relation to a ship, means a lease of the ship (including any arrangement or agreement made in connection with the lease) that has the effect of transferring substantially the obsolescence, risks or rewards incidental to ownership of the ship to the lessee;

“Islamic debt securities” has the meaning given by section 43H(4);

“ship” has the meaning given by section 2(1) of the Merchant Shipping Act 1995.[2/2016; 41/2020]

—(1) Section 45(1) to (8) applies in relation to the payment of any income referred to in section 12(6) or (7) by any person to another person not known to the firstmentioned person to be resident in Singapore as those provisions apply to any interest paid by a person (X) to another person (Y) not known to X to be resident in Singapore and, for the purpose of such application, any reference in those provisions to interest is a reference to the income referred to in section 12(6) or (7).

(2) Subject to such conditions as the Minister may impose, subsection (1) does not apply to any discount from any qualifying debt securities issued during the period from 17 February 2006 to 31 December 2028 (both dates inclusive).[37/2014; 45/2018; 41/2020]

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

(2A) Subsection (1) does not apply to any amount payable from any Islamic debt securities which are qualifying debt securities, and issued during the period from 1 January 2005 to 31 December 2028 (both dates inclusive), subject to such conditions as the Minister may impose.[37/2014; 45/2018]

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

(2AA) Regulations made to impose conditions under subsection (2A) for the disapplication of subsection (1) to any amount payable from Islamic debt securities issued between 1 January 2024 and 31 December 2028 (both dates inclusive), that are made in connection with the amendments made to subsection (2A) by section 41(a) of the Income Tax (Amendment) Act 2023, may be made to take effect from (and including) 1 January 2024.[Act 25 of 2025 wef 08/12/2025]

(2B) Subject to such conditions as the Minister may impose, subsection (1) does not apply to —(a)

any early redemption fee or redemption premium from any qualifying debt securities issued during the period from 15 February 2007 to 31 December 2028 (both dates inclusive); or[Act 30 of 2023 wef 15/02/2023]

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

(b)

any discount, early redemption fee or redemption premium from any qualifying project debt securities issued during the period from 15 February 2007 to 31 December 2025 (both dates inclusive).[37/2014; 45/2018]

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

[Act 30 of 2023 wef 15/02/2023]

(2BA) Regulations made to amend any regulations made for the purposes of subsection (2B) to replace the terms “break cost” and “prepayment fee” with the term “early redemption fee”, that are made in connection with section 41(b) and (c) of the Income Tax (Amendment) Act 2023, may be made to take effect from (and including) 15 February 2023.[Act 25 of 2025 wef 08/12/2025]

(2C) Subject to such conditions as the Minister may impose, subsection (1) does not apply to —(a)

such other income directly attributable to any qualifying debt securities issued on or after a prescribed date, as may be prescribed by regulations; or

(b)

such other income directly attributable to any qualifying project debt securities issued on or after a prescribed date, as may be prescribed by regulations.

(2D) Subsection (1) does not apply to any payment liable to be made on or after 17 February 2012 under any agreement or arrangement for the charter of any ship.

(2DA) To avoid doubt, the reference to a charter of a ship in subsection (2D) excludes a finance lease of the ship.[41/2020]

(2E) Subsection (1) does not apply to any payment liable to be made on or after 21 February 2014 by a person to a branch in Singapore of a company incorporated outside Singapore and not known to the person to be resident in Singapore.[37/2014]

(3) In this section —[Deleted by Act 30 of 2023 wef 15/02/2023]

“early redemption fee”, “qualifying debt securities”, “qualifying project debt securities” and “redemption premium” have the meanings given by section 13(16);[Act 30 of 2023 wef 15/02/2023]

“finance lease”, in relation to a ship, means a lease of the ship (including any arrangement or agreement made in connection with the lease) that has the effect of transferring substantially the obsolescence, risks or rewards incidental to ownership of the ship to the lessee;

“Islamic debt securities” has the meaning given by section 43H(4);

“ship” has the meaning given by section 2(1) of the Merchant Shipping Act 1995.[2/2016; 41/2020]