Tax Newsflash: Clarification on the Definition of “Issued Securities” Under the Offshore Fund Regime
The Offshore Fund Scheme (the “Scheme”) provided under section 13CA of the Income Tax Act is one of the commonly used safe harbour provisions by offshore funds managed by a fund management company in Singapore. The Scheme provides Singapore tax exemption on “specified income” derived by a “prescribed person” from “designated investments. It is a self-assessment scheme that does not require an application to the authorities provided the requisite conditions to be a “prescribed person” are met. The Scheme also imposes qualifying investors test where non-qualifying investors are subject to financial penalty.