§ 50A — Unilateral tax credits

50A.—(1) Even if there are no arrangements in force under section 49 with the government of any territory outside Singapore, tax credit under section 50 must, subject to this section, be given to any person resident in Singapore for tax payable under the law of that territory in respect of —(a)

any income derived from any professional, consultancy and other services rendered in that territory;

(b)

any royalty derived from that territory, where the payment is not —(i)

borne, directly or indirectly, by a person resident in Singapore or a permanent establishment in Singapore (except in respect of any business carried on outside Singapore through a permanent establishment outside Singapore); or

(ii)

deductible against any income accruing in or derived from Singapore;

(c)

any dividend derived from that territory;

(d)

any income from employment in that territory;

(e)

any profit derived from outside Singapore by a branch in that territory of a company resident in Singapore;

(f)

any income derived from any trade or business carried on in that territory through a permanent establishment in that territory;

(g)

any discount or premium from debt securities or interest derived from that territory where the payment is not —(i)

borne, directly or indirectly, by a person resident in Singapore or a permanent establishment in Singapore (except in respect of any business carried on outside Singapore through a permanent establishment outside Singapore); or

(ii)

deductible against any income accruing in or derived from Singapore;

(h)

any rent or other income ancillary to the holding of immovable properties located in that territory but not including gains from the disposal of such immovable properties derived from a trade or business carried on in Singapore; [Act 30 of 2023 wef 01/01/2024]

(ha)

any gains treated as income under section 10L; and[Act 30 of 2023 wef 01/01/2024]

(i)

any gains or profits of an income nature not falling within any of the preceding paragraphs that is derived from that territory.

(1A) To avoid doubt, this section —(a)

does not apply where the tax payable in respect of income in that territory is excluded top-up tax; and

(b)

applies where the tax payable in respect of income in that territory is a qualified domestic minimum top-up tax that is payable —(i)

in respect of the income of a permanent establishment in a territory; or

(ii)

in the cases in subsections (2) and (3), by a company in respect of the profits out of which it pays the dividend.[Act 36 of 2024 wef 20/03/2025]

(2) Where any dividend in respect of which tax credit is given under subsection (1)(c) is paid by a company which is resident outside Singapore to a person resident in Singapore who owns not less than 25% of the total number of issued shares of the company paying the dividend, the tax credit must take into account any tax paid by that company in the country in which it is resident in respect of its income out of which the dividend is paid.

(3) Where under arrangements for the time being in force under section 49 with the government of any territory outside Singapore no provision is made for tax credit in respect of income out of which any dividend is paid by a company resident in that territory, tax credit under section 50 in respect of such income must be given to any person resident in Singapore who owns not less than 25% of the total number of issued shares of the company paying the dividend.

(4) Section 50 applies, with the necessary modifications, for the purposes of this section as if any territory to which this section and the regulations have effect were a territory with which arrangements have been made under section 49.

(5) Any person granted any tax credit under subsection (1) on any income must not be given any tax credit under section 50 in respect of that income.

(6) The Minister may, in any particular case, waive the requirement of 25% share ownership mentioned in subsections (2) and (3).

(7) In this section, “debt securities” has the meaning given by section 43H(4).

—(1) Even if there are no arrangements in force under section 49 with the government of any territory outside Singapore, tax credit under section 50 must, subject to this section, be given to any person resident in Singapore for tax payable under the law of that territory in respect of —(a)

any income derived from any professional, consultancy and other services rendered in that territory;

(b)

any royalty derived from that territory, where the payment is not —(i)

borne, directly or indirectly, by a person resident in Singapore or a permanent establishment in Singapore (except in respect of any business carried on outside Singapore through a permanent establishment outside Singapore); or

(ii)

deductible against any income accruing in or derived from Singapore;

(c)

any dividend derived from that territory;

(d)

any income from employment in that territory;

(e)

any profit derived from outside Singapore by a branch in that territory of a company resident in Singapore;

(f)

any income derived from any trade or business carried on in that territory through a permanent establishment in that territory;

(g)

any discount or premium from debt securities or interest derived from that territory where the payment is not —(i)

borne, directly or indirectly, by a person resident in Singapore or a permanent establishment in Singapore (except in respect of any business carried on outside Singapore through a permanent establishment outside Singapore); or

(ii)

deductible against any income accruing in or derived from Singapore;

(h)

any rent or other income ancillary to the holding of immovable properties located in that territory but not including gains from the disposal of such immovable properties derived from a trade or business carried on in Singapore; [Act 30 of 2023 wef 01/01/2024]

(ha)

any gains treated as income under section 10L; and[Act 30 of 2023 wef 01/01/2024]

(i)

any gains or profits of an income nature not falling within any of the preceding paragraphs that is derived from that territory.

(1A) To avoid doubt, this section —(a)

does not apply where the tax payable in respect of income in that territory is excluded top-up tax; and

(b)

applies where the tax payable in respect of income in that territory is a qualified domestic minimum top-up tax that is payable —(i)

in respect of the income of a permanent establishment in a territory; or

(ii)

in the cases in subsections (2) and (3), by a company in respect of the profits out of which it pays the dividend.[Act 36 of 2024 wef 20/03/2025]

(2) Where any dividend in respect of which tax credit is given under subsection (1)(c) is paid by a company which is resident outside Singapore to a person resident in Singapore who owns not less than 25% of the total number of issued shares of the company paying the dividend, the tax credit must take into account any tax paid by that company in the country in which it is resident in respect of its income out of which the dividend is paid.

(3) Where under arrangements for the time being in force under section 49 with the government of any territory outside Singapore no provision is made for tax credit in respect of income out of which any dividend is paid by a company resident in that territory, tax credit under section 50 in respect of such income must be given to any person resident in Singapore who owns not less than 25% of the total number of issued shares of the company paying the dividend.

(4) Section 50 applies, with the necessary modifications, for the purposes of this section as if any territory to which this section and the regulations have effect were a territory with which arrangements have been made under section 49.

(5) Any person granted any tax credit under subsection (1) on any income must not be given any tax credit under section 50 in respect of that income.

(6) The Minister may, in any particular case, waive the requirement of 25% share ownership mentioned in subsections (2) and (3).

(7) In this section, “debt securities” has the meaning given by section 43H(4).