10 July 2012

The Income Tax (Concessionary Rate of Tax for Approved Trustee Companies) (Amendment) Regulations 2012 were published on 4 July 2012.

With the exception of Regulations 2(a), 3(a) and (b), these Regulations take effect on 1 April 2011. Regulations 2(a) and 3(a) and (b) are deemed to have come into operation on 1 September 2007.

The Regulations amend:

• Regulation 2 (Definitions) of the Income Tax (Concessionary Rate of Tax for Approved Trustee Companies) Regulations (Rg 21)(referred to in these Regulations as the principal Regulations):

(a) by deleting the definition of ‘‘designated persons’’ and substituting the following definitions:

‘‘designated investments’’ has the same meaning as in the Income Tax (Exemption of Income of Non-residents Arising from Funds Managed by Fund Manager in Singapore) Regulations 2010 (G.N. No. S 6/2010), with references to ‘‘prescribed person’’ therein modified to refer to  ‘‘approved trustee company’’;

‘‘designated person’’ has the same meaning as in the Income Tax (Exemption of Income of Non-residents Arising from Funds Managed by Fund Manager in Singapore) Regulations 2010, and

(b)  by deleting the definition of  ‘‘foreign mutual fund corporation’’ and substituting the following definitions:

‘‘ ‘‘foreign business trust’’, ‘‘foreign collective investment scheme’’ and ‘‘foreign mutual fund corporation’’ have the same meanings as in the Income Tax (Concessionary Rate of Tax for Financial Sector Incentive Companies) Regulations 2005 (G.N.  No. S 735/2005);’’.

• Regulation 3 (Concessionary rate of tax) of the principal Regulations:

(a)  by deleting the words ‘‘which falls within paragraph (c) in the definition of ‘‘foreign investor’’ in the Income Tax (Income from Funds Managed for Foreign Investors) Regulations and where the funds of the unit trust are invested in designated investments within the meaning of those Regulations’’ in paragraph (b) and substituting the words ‘‘which is also a trust fund that qualifies as a ‘‘foreign investor’’ as defined in the Income Tax (Concessionary Rate of Tax for Financial Sector Incentive Companies) Regulations 2005 and where the funds of the unit trust are invested in designated investments’’

(b)  by deleting the words ‘‘within the meaning of the Income Tax (Income from Funds Managed for Foreign Investors) Regulations’’ in paragraph (e)

(c) by deleting the word ‘‘and’’ at the end of paragraph (e), and

(d) by deleting the full-stop at the end of paragraph (f)  and substituting the word ‘‘; and’’, and by inserting immediately thereafter the following paragraph:

‘‘(g) any trustee or custodian services in respect of the issue of units of —

(i)  a foreign collective investment scheme;  or

(ii)  a foreign business trust,

where the proceeds of the issue of units are used outside Singapore.’’.

• Regulation  5 (Application) of the principal Regulations by inserting, immediately after the words ‘‘a permanent establishment in Singapore’’, the words ‘‘(excluding, in relation to a trust referred to in that regulation, a trustee incorporated, resident or registered in Singapore, in its capacity as a trustee of that trust)’’.

Source: e-Gazette