Amendments
The e-Tax Guide has been updated with the following changes:
- Updated the short title of the ITA based on the 2020 Revised Edition of the ITA as well as the references made to sections 10N and 43N to sections 10H and 43H respectively as the provisions have been renumbered in the 2020 Revised Edition of the ITA.
- Amended paragraphs 2.4, 3.2 and 8.1 as well as inserted paragraphs 3.3 and 5.3 and footnote 4 to reflect the following updates:
- Expanded scope of qualifying securities lending and repo arrangements for arrangements that are entered into with effect from 27 November 2024.
- New definition of “distribution” in section 10H(12) of the ITA in view of the expanded scope of qualifying securities lending and repo arrangements.
- Remove the mention of dividend and interest in view of the expanded scope of qualifying securities lending and repo arrangements.
- Amended S/N (v) of the table at renumbered paragraph 3.4 to update the term “Capitalisation issue” to “Bonus issue” to align the term with that in paragraph (e) of the definition of “equivalent securities” in section 10H(12) of the ITA.
- Amended renumbered paragraph 3.9 to align the definition of “Singapore-based transferee” with that in section 10H(12) of the ITA.
- Amended renumbered paragraph 3.10 to align the wordings with those in renumbered paragraph 3.9.
- Added paragraph 7.6 to clarify that any gain arising from any transfer of foreign securities under any securities lending or repo arrangement that occurs on or after 1 January 2024 will be treated as income chargeable to tax under section 10(1)(g) of the ITA, if the transfer falls within the scope of section 10L of the ITA.
- Amended S/N (iii) of the table at renumbered paragraph 7.4 and renumbered paragraph 7.7 to remove references to provisions in the ITA that were repealed.
- Amended renumbered paragraph 7.11 to update the examples to more recent years.
- Amended paragraphs 8.5 and inserted footnotes 9 and 10 to provide greater clarity regarding the tax treatment of actual distribution in the hands of a Singapore-based transferee and the requirement to withhold tax on any distribution in respect of transferred securities or collateral that are units of a REIT or an approved REIT ETF.
- Combined and amended paragraphs 8.6 and 8.7 into renumbered paragraph 8.6, amended table at renumbered paragraph 8.9, inserted footnotes 11 to 15 and 17, and deleted Annexes 1 to 3 to provide greater clarity regarding:
- Tax treatment of actual distribution in the hands of transferor; and
- Tax treatment of compensatory payment in the hands of transferor.
- Amended paragraphs 9.1 to 9.3 and inserted footnote 18 to clarify interest payment derived from collateral is one of the other related payments under which the tax treatments mentioned in paragraph 9 would apply.
- Other editorial changes to various paragraphs, footnotes and renumbering of paragraphs.
