Income Tax – Revision of the E-Tax Guide on Mergers & Acquisitions Scheme


On 16 May 2014, the IRAS revised paragraph 12.4 of the e-Tax Guide on Mergers & Acquisitions Scheme as follows:

The acquiring company/ Registered Business Trust (“RBT“) need not submit any supporting documents/information with its income tax return when making a claim only for the M&A allowance and not stamp duty relief under the M&A scheme.  However, it needs to prepare and retain the following documents/information: –

(a) Confirmation by a responsible officer of the acquiring company/ RBT that all qualifying conditions for M&A allowance have been met;

(b) Documents specified in paragraph 12.2(a) and (b);

(c) An independent professional valuation report of the ordinary shares of the target company acquired under any of the following circumstances:

(i) the target company is incorporated outside Singapore;

(ii) the acquisition is funded by way of the acquiring company/acquiring RBT’s issuance of shares/units and the market value of such shares/units is not readily available; or

(iii) the acquiring company/RBT does not wish to determine the M&A
allowance based on the NAV of its shares/ units.

The relevant documents/information must be retained for a period of at least five years from the relevant Year of Assessment. These documents should be submitted to the Comptroller of Income Tax upon request.

If you have any questions regarding the above, please contact us at support@whm-consulting.com.

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