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Chargeability of agent of person residing out of Singapore

Income Tax Act 1947

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—(1) A person not resident in Singapore (called in this section a non‑resident person) is assessable and chargeable to tax either directly or in the name of the person’s trustee, guardian, or committee, or of any attorney, factor, agent, receiver, branch or manager, whether such attorney, factor, agent, receiver, branch or manager has the receipt of the income or not, in like manner and to the like amount as such non‑resident person would be assessed and charged if the person were resident in Singapore and in the actual receipt of such income; except that in the case of any individual who is not resident in Singapore, no deduction is allowed under section 39.(1A) A non‑resident person is assessable and chargeable in respect of any income arising, directly or indirectly, through or from any attorneyship, factorship, agency, receivership, branch or management, and is so assessable and chargeable in the name of the attorney, factor, agent, receiver, branch or manager.(2) A non‑resident beneficiary of the estate of a deceased person is, where the estate is being administered in Singapore, assessable and chargeable in respect of the income received by or distributed to the non‑resident beneficiary or applied to the non‑resident beneficiary’s benefit in the name of the executor of the estate as if the executor were an agent of the non‑resident beneficiary.(2A) Where a non‑resident person carries on business with a resident person and it appears to the Comptroller that, owing to the close connection between the resident person and the non‑resident person and to the substantial control exercised by the non‑resident person over the resident person, the course of business between those persons can be so arranged and is so arranged that the business done by the resident person pursuant to the resident person’s connection with the non‑resident person produces to the resident person either no profits or less than the ordinary profits which might be expected to arise from that business, the non‑resident person is assessable and chargeable to tax in the name of the resident person as if the resident person were an agent of the non‑resident person.(3) Where the true amount of the gains or profits of any non‑resident person chargeable with tax in the name of a resident person cannot in any case be readily ascertained, the Comptroller may, if he or she thinks fit, assess and charge the non‑resident person on a fair and reasonable percentage of the turnover of the business done by the non‑resident person through or with the resident person in whose name the non‑resident person is chargeable as aforesaid, and in such case the provisions of this Act relating to the delivery of returns or particulars by persons acting on behalf of others extend so as to require returns or particulars to be furnished by the resident person of the business so done by the non‑resident person through or with the resident person, in the same manner as returns or particulars are to be delivered by persons acting for incapacitated or non‑resident persons of income to be charged.(3A) The amount of the percentage under subsection (3) must in each case be determined with regard to the nature of the business and is, when determined by the Comptroller, subject to appeal in accordance with the provisions of Part 18.(4) This section does not render a non‑resident person chargeable in the name of a broker or general commission agent or other agent where such broker, general commission agent or agent is not an authorised person carrying on the regular agency of the non‑resident person, or person chargeable as if the person were an agent pursuant to subsections (2A) and (3), in respect of gains or profits arising from sales or transactions carried out through such a broker or agent.(5) The fact that a non‑resident person executes sales or carries out transactions with other non‑resident persons in circumstances which would make the non‑resident person chargeable pursuant to subsections (2A) and (3) in the name of a resident person does not of itself make the non‑resident person chargeable in respect of gains or profits arising from those sales or transactions.(6) Where a non‑resident person is chargeable to tax in the name of any attorney, factor, agent, receiver or manager, in respect of any gains or profits arising from the sale of goods or produce manufactured or produced outside Singapore by the non‑resident person, the person in whose name the non‑resident person is so chargeable may, if the person thinks fit, apply to the Comptroller to have the assessment to tax in respect of those gains or profits made or amended on the basis of the profits which might reasonably be expected to have been earned by a merchant or, where the goods are retailed by or on behalf of the manufacturer or producer, by a retailer of the goods sold, who had bought from the manufacturer or producer direct, and on proof to the Comptroller’s satisfaction of the amount of the profits on that basis, the assessment must be made or amended accordingly.(7) The master of any ship (within the meaning of section 2(1) of the Merchant Shipping Act 1995) and the captain of any aircraft owned or chartered by a non‑resident person who is chargeable under section 12(2) are (though not to the exclusion of any other agent) deemed the agents of such non‑resident person for all the purposes of this Act.(8) The income of any non‑resident partner or partners from a partnership is assessable in the name of the partnership or of any resident partner or of any agent of the partnership in Singapore, and the tax charged thereon is recoverable by all means provided in this Act out of the assets of the partnership or from any partner or from any such agent.

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