The Stamp Duties (Relief from Stamp Duty upon Reconstruction or Amalgamation of Companies) (Amendment) Rules 2014 has been made effective on 22 May 2014.
Amendments were made to Rules 3 and 7:
Rule 3 (Conditions for relief from ad valorem stamp duty upon reconstruction or amalgamation of companies)
New paragraphs (1)(c) and (d) have been inserted to provide two additional conditions in order to qualify for the relief.
- The claim for relief from stamp duty must be made (a) in a case where the instrument in question is executed in Singapore, within 14 days after such execution; and (b) in a case where the instrument in question is executed outside Singapore, within 30 days after such execution.
- Where the claim for relief from duty is made before the execution of the instrument in question, the instrument is executed within four months after any indication by the Commissioner of Stamp Duties that the duty will not be chargeable on the instrument on the basis of the likelihood of the other conditions being satisfied.
A new paragraph 3 has been inserted to provide the conditions applicable where the transferee company is wholly associated with the existing company.
A new paragraph 4 has also been inserted to define the situations whereby the transferee company would be taken to be wholly associated with the existing company, for the purpose of the new paragraph 3.
Rule 7 (Subsequent disallowance of relief)
A new paragraph 3 has been inserted to provide that the Commissioner of Stamp Duties may, in his discretion and subject to such terms and conditions as he may impose, extend the 12-month period referred to in paragraph 1(c)(i) or 2(b)(i), if, in unavoidable circumstances, the instrument cannot be executed within the 12-month period.
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