Series on Singapore tax laws – Part 12

Other relevant aspects –

Permanent Establishment –

The definition in the domestic law closely follows that in the OECD Model Convention. It defines a ‘permanent establishment’ as a fixed place at, or through which, a person wholly or partly carries on a business. It specifically includes the following –

a place of management;
a branch;
an office;
a factory, a warehouse or a workshop;
a farm or a plantation;
a mine, an oil well, a quarry or other place of extraction of natural resources; and
a building or work site or a construction, installation or assembly project.

Further, a person will be deemed to have a permanent establishment in Singapore if:

he carries on supervisory activities in connection with a building or a work site or a construction, installation or assembly project; or
he has another person acting on his behalf in Singapore who: – has and habitually exercises an authority to conclude contracts; or – maintains a stock of goods or merchandise for the purpose of delivery on his behalf; or – habitually secures orders wholly or almost wholly for him or for such other enterprises as are controlled by him

For the treaty purposes, mostly definition as per OECD Model Convention are followed

Relief mechanism –

A taxpayer may opt for either unilateral or bilateral relief.

Unilateral relief – This are granted in the form of a tax credit to a company resident in Singapore in respect of foreign taxes paid in any country with which Singapore has no tax treaty arrangements, on specified items of foreign income.

Bilateral relief – This are granted on foreign income derived from a foreign jurisdiction with which Singapore has a tax treaty.

However, the amount of allowable foreign tax credit is limited to the lower of Singapore tax or foreign tax payable on the foreign income, after permissible deductions under the Singapore domestic laws

SETR is determined based basis the below mentioned formula –

SETR = Singapore tax payable before any tax credit or rebates/ chargeable income before deducting exempt amounts

(Pertinent to note that foreign tax credit is to be made on source-to-source and country-to-country basis)

Foreign tax credit pooling –

Taxpayers may elect to pool the foreign taxes paid on any item of foreign income if following conditions are met –

income tax was paid in the foreign jurisdiction from which the foreign income is derived;
the headline tax rate of the foreign jurisdiction is at least 15% at the time the foreign income was received in Singapore;
Singapore tax is payable on the foreign income; and
the taxpayer is entitled to claim the foreign tax credit under the tax law

The amount of foreign tax credit granted is the lower of total Singapore tax payable on the foreign income and the pooled foreign taxes paid on the foreign income.

Non-discrimination clause in tax treaties – Select issues and recent developments – Part 4

In part 3 of the series, I have discussed Article 24(2) which deals with stateless person in detail. In this part, I will discuss Article 24(3) dealing with PE non-discrimination.

This paragraph deals with a ‘permanent establishment’ (PE) that an ‘enterprise of a Contracting State’ has in the other ‘Contracting State’. Thus, it deals with non-discrimination of a resident of a Contracting state in respect of the enterprise carried on through a PE by such person in other contracting state.

Article 24(3) applies when following conditions are satisfied –

There is a PE of an ‘enterprise’ of a contracting state in other contracting state
Such PE is subject to taxation in other contracting state
Such taxation is less favourably levied than taxation levied on enterprise of other contracting state
The enterprise of other contracting state carry on same activities as that of the PE

Understanding certain important terms –

Enterprise/ PE: This article applies only if the taxpayer has PE and not otherwise. It seeks to end discrimination on the actual residency of overseas entity
Less favourably: PE of the Residence State shall not be treated ‘less favourably’ in taxation matters by the Source State as compared with an ‘enterprise’ of the Source State
Same activities: OECD commentary has explained the term through illustrations. It states that regulated and unregulated activities would generally not constitute the ‘same activities’
Levied: Levy means to access, raise, execute, exact, tax, collect, gather, take up, seize
In the same circumstances: The expression implies that a PE and a local enterprise that is the object of comparison with the PE should always be in the ‘same circumstances’

Application of Article 24(3) in certain situations

Computation of taxable income – PE must be given the same right as resident enterprises are given in relation to –
- Claim of deduction of trading expenses
- Deduction of depreciation
- Deduction for provision for re-investment in fixed assets
- Carry forward or backward a loss
- Claim benefit of tax incentive provisions

Structure and rate of tax – Manner of levy of taxes may vary from country to country. Indian IT Act expressly permits differential rates of domestic and overseas companies. Relevant extract is reproduced below –

“For the removal of doubts, it is hereby declared that the charge of tax in respect of a foreign company at a rate higher than the rate at which a domestic company is chargeable, shall not be regarded as less favourable charge or levy of tax in respect of such foreign company.”

Credit for WHT suffered by a PE – A PE in Source State may receive overseas income (e.g., dividend, interest, etc.) and such income may be taxed in the Source State. It appears that by invoking Article 24(3), a PE may be able to avail of a credit in the Source State for the foreign withholding tax on dividends, interest, etc. if such credit is granted to resident enterprises of the Source State

Miscellaneous situations – As article 24(3) applies to taxation of PE’s own business, hence, PE may not be able to invoke Article 24(3) in the following situations –
- Rules relating to group consolidation
- Rules relating to the distributing profits

Principle emanating from Indian judicial pronouncements in context of Article 24(3) on Non-discrimination –

Section 44C of the Income tax Act, 1961 limitation on deduction of head office expenditure would not apply in the case of non-resident companies in light of non-discrimination clause in the tax treaty (Metchem Canada Inc. v. Deputy Commissioner of Income-tax [2006] 100 ITD 251 (MUM.))

Benefit of certain Export linked deductions under Section 80HHE and Section 80HHC of the Income tax Act, 1961 should be allowable to PE of the foreign company (Bhagwan T. Shivlani v Income-tax Officer (IT)-2(2), (Mumbai) [2012] 20 taxmann.com 821)

Distinction between Article 24(1) and Article 24(3) on Non-discrimination clause –

Series on Singapore tax laws – Part 11

Structuring business operations in Singapore –

Presence in Singapore can be set up by way of representative office, a branch or subsidiary

Representative office –

Approval of International Enterprise Singapore is required
Activities are limited to general support and administration such as promotional, marketing, information gathering and liaison work undertaken on behalf of head office
Representative office of a foreign commercial entity may operate in Singapore for a maximum of three years from its commencement date, provided the representative office status is evaluated and renewed

Branches and subsidiaries –

Branch shall be non-resident in Singapore as control and management is with head office
Subsidiary can be either resident or non-resident depending on whether control and management is exercised in Singapore

Notes –

Depending on the tax treaty or domestic law of the resident, tax credit or unilateral credit may be claimed. However, a subsidiary being the resident in Singapore is entitled for tax treaty and unilateral relief in all cases.

The investor should also consider the tax jurisdiction in the home country i.e. whether branch losses arising in Singapore can be set off against head office expenses

Method of profit extraction and repatriation –

Profits can be extracted from Singapore entity in the following ways –

Payment of dividends
Management fees or allocation of head office expenses
Interest, royalty, technical assistance fees etc.

Structuring business operations outside Singapore –

Considerations to be kept in mind –

Availability of tax treaty between Singapore and the foreign country –
Availability of tax treaty shall provide for lower withholding tax on certain incomes. Further, in case of dividends, relief for underlying tax can still be claimed if Singapore company has at least 25% shareholding in the foreign subsidiary
Whether the form of entity set up will have impact on profit extraction and repatriation – The form of extraction can affect the returns to the shareholders in view of the different rates of tax that can be imposed and the amount of tax relief that can be claimed

Non-discrimination clause in tax treaties – Select issues and recent developments – Part 3

In part 2 of the series, I have discussed Article 24(1) which deals with Nationality non-discrimination in detail. In this part, I will discuss Article 24(2) dealing with stateless person

As mentioned earlier, Paragraph 2 of Article 24 of the OECD model convention extends the benefit of non-discrimination clause to stateless person who are residents of one of the contracting states.

Thus, Article 24(2) applies if the following conditions are satisfied –

There is a stateless person
Such stateless person is a resident of contracting state
Such stateless person is subjected in either contracting state to any taxation or any requirement connected therewith
Such taxation or connected requirement is other than the taxation and connected requirements, to which ‘nationals’ of the concerned state, are or may be subjected or such taxation or connected requirement is more burdensome
The nationals of the concerned state and the stateless person are placed in the same circumstances in particular with respect to residence

Note – Indian treaties does not contain similar paragraph in its tax treaties. The reason may be because the arrangements deal with ‘Resident of a contracting state’ and irrespective of whether a ‘resident’ is a ‘national’ or ‘stateless’. Only India- Norway tax treaty has similar clause.

Important texts from OECD commentary in relation to Article 24(2) –

Para 28 – The purpose of paragraph 2 is to limit the scope of the clause concerning equality of treatment with nationals of a Contracting State solely to stateless persons who are residents of that or of the other Contracting State.

Para 31 – It is possible that in the future certain States will take exception to the provisions of paragraph 2 as being too liberal insofar as they entitle stateless persons who are residents of one State to claim equality of treatment not only in the other State but also in their State of residence and thus benefit in particular in the latter from the provisions of double taxation conventions concluded by it with third States…………

Series on Singapore tax laws – Part 10

Restructuring and Liquidation

Merger and division –

Companies –

Tax framework for qualifying corporate amalgamations was introduced in the Budget for 2009 on 22 January 2009

Qualifying amalgamations will be treated as a continuation of the existing business of the amalgamating company by the amalgamated company

Qualifying amalgamation is one where the notice of amalgamation under section 215F of the Companies Act or the certificate of approval under section 14A of the Banking Act is issued on or after 22 January 2009

Treatment of qualifying corporate amalgamations –

All risks and benefits that exist prior to the merger are transferred and vested in the amalgamated company
Where the amalgamating company held shares in another amalgamating company and the shares of the second company were cancelled upon amalgamation, the first company will be treated as having disposed of the shares for an amount equal to the cost of shares of first company
Where the amalgamated company intends to continue holding assets taken over as investment assets, it should maintain a list of these items as at the date of amalgamation
Revenue assets including trading stock are generally to be recognized at the carrying amounts, as reflected in the amalgamating companies’ books at the point of amalgamation
Availability of unabsorbed capital allowances, losses and donations (tax loss items) to the amalgamated company will continue to be governed by the shareholding test
Unabsorbed tax loss items can only be set-off against the income of the amalgamated company from the same trade or business as that of the amalgamating company immediately before the amalgamation

Treatment of non-qualifying corporate amalgamations –

Capital gains or losses arising on the transfer of capital assets (including shares) would neither be taxable nor deductible
If capital assets transferred pursuant to a merger qualified for capital allowances for industrial buildings and structures or allowances for plant and machinery, a balancing allowance or balancing charge could arise
Trading stock transferred with a trade or business pursuant to a merger were valued for tax purposes at the actual transfer value provided the transferee carried on, or intended to carry on a trade or business in Singapore
Interest incurred on borrowings to acquire either the shares or a business of a company would be tax deductible

Liquidation –

Company –

Liquidator assumes all the functions and duties of an officer of a company
Liquidator shall distribute assets of the company to its shareholders only after making full payment of taxes payable by the company
Any income derived from trading during the liquidation period shall be treated as business income and assessable as such
Income from the mere realization of assets is treated as capital gains and not assessable as such
Legal or professional expenses incurred during the dissolution are not deductible business expenses

Shareholders –

Distributions from the realization of assets are tax exempt

Series on Singapore tax laws – Part 9

Investment incentives

There are various types of incentives available under the Act and the type of incentive appropriate to the taxpayer would depends on the nature of the business and its circumstances. List of incentives available is summarized in the table below –

Type	Requirements	Incentives	Relief period
Pioneer Industries	Industry is not being carried on in Singapore on a scale adequate to Singapore’s economic needs and there are prospects of development	Tax exemptions on qualifying profits	Upto 15 years
Pioneer Service Companies	Companies engaged in qualifying activities which include – Any engineering or technical services including laboratory, consultancy and research and development services Computer-based information and other computer related services The development or production of industrial design Trading in art and antiques by auction houses and operation of private museum and Such other services or activities as may be prescribed	Tax exemptions on qualifying profits	Upto 15 years
Investment allowance	Companies proposing to carry out project for manufacturing, research and development, construction operation, improving energy efficiencies etc. No minimum investment requirement The assets for which incentive is given cannot be sold, leased or otherwise disposed of within the qualifying period of 2 years thereafter without minister’s approval	Tax exemption on chargeable income equal to approved percentage not exceeding 100% of the capital expenditure incurred on new plant and machinery, factory building or acquisition of know-how or patent rights	Unutilised investment allowance may be carried forward for set-off against chargeable income
Development and expansion incentive	Companies engaged in qualifying activities which include – Manufacturing or increased manufacturing in an industry of economic benefit to Singapore Engineering and technical services including laboratory, consultancy and research and development activities Computer based information and other computer related services Development or production of any industrial design and Other prescribed services or activities	Tax rate as low as 5%	10 years with provision for extension not exceeding 5 years at any one time, up to maximum of 20 years
Royalties, fees and development contributions	Applicant must be a company and the recipient is a non-resident person	Exemption or reduced withholding tax	For the duration of the agreement

Singapore tax laws – Part 8

Group taxation mechanism –

No mechanism exists for taxing members of the group of companies on a consolidated basis
But, there is a group relief system under which current year unabsorbed losses, capital allowances and donations of one company is set of against the assessable income of another company in the same group
No provision exists for intercorporate dividends, intercorporate transfers

Group relief is available if the group consists of Singapore incorporated company and Singapore incorporated group members. Singapore companies are members of the same group if –

atleast 75% of the ordinary share capital in one company is beneficially held, directly or indirectly, by the other; or
at least 75% of the ordinary share capital of each of the two companies is beneficially held, directly or indirectly, by a third Singapore-incorporated company.

Assessment and administration of group –

Holding company – The holding company is required to submit, its statement of account and –

a consolidated statement of account of the group if it owns more than 50% of the issued capital of its subsidiaries; or
a report of the state of affairs of the group if it owns less than 50% of the issued capital of its subsidiaries.

Subsidiary company – Subsidiary of a foreign company is not required to file accounts of its parent company, but the amount owed to the parent and related companies should appear in subsidiary’s accounts under separate headings.

Series on Singapore tax laws – Part 7

Valuation of inventory –

Trading stock of continuing business

Basis of valuation of trading stock of a continuing business is not provided for in the tax laws
Generally, valuation is done based on the ordinary commercial and accountancy principles of stock valuation
Change in the method of valuation of trading stock may be made if taxpayer satisfies the tax authorities the reasons for change in such method

Trading stock on discontinuance or transfer of business

Sale price or value of consideration given for transfer will be taken for valuation purposes

Work in progress

Valuation methodology not provided for in the tax laws
Generally, valuation is done based on the accepted accounting principles and decided cases

Depreciable asset

Valued based at cost for capital allowances purposes

Non-depreciable asset

No specific provisions provided for valuation of non-depreciation asset like land/ goodwill
However, Intellectual property rights that has commercial value are valued at cost for capital allowance purposes

Non-discrimination clause in tax treaties – Select issues and recent developments – Part 2

In part 1 of the series, I have given an overview of Article 24 on Non-discrimination. In this part, I will discuss Article 24(1) which deals with Nationality non-discrimination in detail.

Wordings of the Article 24(1) as per OECD and UN model convention are as under –

The above paragraph highlights the principle that for the purpose of taxation discrimination on the grounds of nationality is forbidden, and that, subject to reciprocity, the nationals of a Contracting State may not be less favourably treated in other Contracting State than nationals of the latter State in the same circumstances. Some of the important terms used in Article 24(1) are discussed below –

Nationals – Application of this clause is not restricted by Article 1 of the model convention to nationals solely who are residents of a Contracting State, but on the contrary, extends to all nationals of each Contracting State, whether or not they be residents of one of them.

Any taxation or any requirement connected therewith – OECD commentary suggests the definition of ‘taxation’ as taxes of every kind and description. The expression ‘connected requirements’ of taxation means that formalities connected with taxation, such as returns, payments, prescribed limits, TDS, issue of notices or refunds, or levy of interest, exemption, deduction, credit or other allowance, etc. ( Relevant to note that the word taxation is not defined in the tax treaty nor in the domestic laws of India. Article 366(28) of the Constitution of India defines ‘taxation’ in an inclusive manner as ‘taxation includes the imposition of any tax or post whether general or local or special, and tax shall be construed accordingly’)

Other or more burdensome – The expression ‘other’ refers to the requirement imposed by the source state on a foreign national which is different from the requirements imposed by source state on its nationals being ‘more burdensome’. These relates to the differences in the tax treatment that materially disadvantage the foreign national.

In the same circumstances – If the taxpayers must be in same circumstances, then only they would be comparable and accordingly require same tax treatment. In applying Article 24(1), therefore, the underlying question is whether two persons who are residents of the same state are being treated differently solely by reason of having a different nationality. Certain situations in which the expression ‘in the same circumstances’ is not satisfied (as was found in the OECD commentary and Indian Judicial Pronouncements) –
- Differences accorded on the basis of residential status
- Differences in scope of taxation for domestic residents vis-à-vis foreign nationals
- Institution not for profit but belonging to other Contracting State will not be in the same circumstances as the private institution of the Source State
- Immunity from the taxation accorded to its own public bodies and services would be justified as they are integral part of the State and cannot be compared to those of the public bodies and services of the other State.

OECD commentary provides for some examples in para 19 to 25 of the Article. Some of them are :

Where in a DTAA, it is provided that if a company is Resident of two States (one because or incorporation and other because of POEM), then it shall be treated as Resident of that State where it is incorporated. Therefore, the dividend paid by company of State A to that company having dual Residence will not be in the same circumstances and can be treated differently for the tax purposes.(Hence, a differential treatment by the source state of resident and non-resident companies is allowed by Article 24(1) even where residence and nationality are linked to the criteria of incorporation or registration)

State A levies payroll tax on company that employ Resident employees. It does not make any distinction based on the residence of the employer but provides that company incorporated in State A shall benefit from lower rate of payroll tax. If a company incorporated in State B is also a Resident of State A (because of POEM) then different tax treatment to this company would be violative.

Indian Judicial pronouncements and principles emanating from it –

The applicability of non-discrimination clause is to be seen at the time of assessment proceedings and once the affected taxpayer files its return of income and takes the plea before the tax officer, but not at the stage of deduction of taxes.
(Judgement – Ericsson Telephone Corporation India AB v CIT (1997) 224 ITR 203 (AAR))

Benefit of the principle of interpretation could be allowed to an overseas company when two views are available on an issue i.e. the one favourable to the taxpayer should be provided for. (Judgement – DDIT vs Solid Works Corporation (2012) 51 SOT 34 (Mum))

Foreign national can claim deduction under section 80R, 80RRA etc. of the Income tax Act, since these provisions allow deduction only to an Indian citizen and consequently, are discriminative vis-à-vis foreign nationals. (Judgement – Credit Llyonnais vs. DCIT (2005) 95 ITD 401 (Mum)

Foreign bank (i.e. UK bank) was allowed to claim the benefit of bad debt reserve for loans that was originally granted only to the banks incorporated in India and whose deductibility was restricted based on advances made by rural branches.
(Judgement – Standard Chartered Bank v IAC (1991) 39 ITD 57 (Mum.))

The expression ‘taxation’ is not defined in Article 24 or Article 3(2) or in the Income-tax Act. The expression ‘taxation’ and ‘tax’ are not inter-changeable. Further, it was held that article 24 which seeks to prevent differentiation solely on ground of nationality and against nationals as such; under this clause State is not obliged to extend same privileges, which it accords to its own residents, to one who is not a resident and no discrimination can be said to have occurred on basis of nationality in such cases. (Judgement – Transworld Garnet Co. Ltd, In re (2011) 333 ITR 1 (AAR))

Article 3(1)(g) of the India-Korea Tax Treaty (1985) defines ‘national’ as ‘any individual possessing the nationality of a Contracting State and any legal person, partnership, association or other entity deriving its status as such from the laws in force in the Contracting State.’, the words ‘other entity’ does not include corporate bodies unless they are declared ‘nationals’ under the laws of those States. (Judgement – Chohung Bank v DDIT (2007) 12 SOT 301 (Mum.)

Series on Singapore tax laws – Part 6

Anti-avoidance provisions in Singapore

1.Transfer pricing legislation

Transfer pricing (TP) legislation are rules that broadly require transactions between any related parties to be on arm’s length terms. If the actual terms are not at arm’s length, tax authorities can substitute the actual terms with arm’s length terms, thereby, there may be increase in income or reduction in deductions/ losses, as may be applicable.Any adjustment made by the tax authorities will be deemed to be accruing or received in Singapore.

Further, administration of transfer pricing rules is explained in IRAS Transfer Pricing Guidelines e-Tax guide. These guidelines are in line with OECD Transfer Pricing Guidelines (2010). The transfer pricing guidelines provide more guidance on the application of the arm’s length principle, including the functional analysis based on three-step approach to apply the arm’s length principle in related party transactions, i.e. conduct a comparability analysis, identify the most appropriate transfer pricing method and tested party and determine the arm’s length results.

Transfer pricing methods –The transfer pricing methods mentioned in the transfer pricing guidelines are as follows:

comparable uncontrolled price (CUP) method;
resale price method;
cost-plus method;
transactional profit split method; and
transactional net margin method (TNMM).

Corresponding adjustments –Various types of other adjustments are as under –

Compensating adjustments – these are adjustments made when the taxpayers’ actual results differ from the agreed arm’s length prices provided in the Advance Pricing Agreement (‘APA’) with Inland Revenue Authorities of Singapore (‘IRAS’).
Self-initiated retrospective adjustments – these arise when taxpayers conduct a review of their past transfer prices due to subsequent changes in circumstances.
Corresponding adjustments arising from transfer pricing adjustment by tax authorities – IRAS will only consider making corresponding adjustments to eliminate double taxation when tax treaty is in place and taxpayers have applied for the mutual agreement procedure (MAP) provided in the tax treaty and such application is accepted by IRAS and the foreign tax authority.

Other aspects –

If TP adjustment is made, taxpayer may be liable for a surcharge of 5% of the adjustment
IRAS requires contemporaneous TP documentation to be maintained by the taxpayers. Transfer pricing documentation is not required to be submitted when tax returns are filed. Such documentation should be kept on file and submitted to IRAS upon their request.
If the taxpayer is the ultimate parent entity of a Singapore multinational enterprise group, in addition to the transfer pricing documentation, it may be required to file a country-by-country report to provide information on the global allocation of the group’s revenues, profits, taxes and economic activity.
In certain situations, tax authorities can make secondary adjustments
The transfer pricing guidelines provide detailed step-by-step procedures for the mutual agreement procedure (MAP) and APA processes.

2. Thin Capitalization rules

There is no thin capitalization rules in Singapore

3.Controlled foreign company legislation

There are no controlled foreign company rules in Singapore

4.General anti-avoidance rule

The tax authorities has the power to counteract any arrangement that has the purpose or effect of avoiding or reducing tax by –

disregarding the arrangement
varying the arrangement or
making appropriate adjustments, including:
recomputing the gains or profits; or
re-evaluating the tax liability.

GAAR provisions can be invoked where IRAS is satisfied that the purpose or effect of any arrangement is directly or indirectly to :

alter the incidence of any tax payable by any person;
relieve any person from any liability to pay Singapore income tax or file a Singapore income tax return; or
reduce or avoid any liability imposed or to be imposed on any person under the tax laws.

However, if the arrangement is entered into for bonafide reasons, this anti-avoidance rules would not apply. Further, even if the arrangement is for a bonafide commercial reason, the taxpayer must still prove that tax avoidance is not one of the main purposes of the arrangement. IRAS has expressed the view that it is targeted only at blatant and artificial tax avoidance schemes, and not intended to catch genuine commercial arrangements with incidental tax avoidance effects.

IRAS issued the e-Tax Guide on the general anti-avoidance provision and its application. The guidelines and accompanying examples in the Guide are not meant to be exhaustive.

The examples of arrangements that IRAS would regard as having the purpose or effect of tax avoidance may be classified into the following groups:

1. circular flow or round-tripping of funds;
2. setting-up of more than one entity for the sole purpose of obtaining tax advantage;
3 change in business form for the sole purpose of obtaining tax advantage; and
4. attribution of income which is not aligned with economic reality.

5.Other anti-avoidance legislation

Exchange of information – The exchange of information between the tax authorities of Singapore and of another treaty country is permitted by the relevant article in the relevant tax treaty. Only information relevant to the implementation of the treaty provisions may be exchanged. Further, Singapore also endorses the OECD standard for the effective exchange of information through tax treaties.

Others – There are several other specific provisions in the Singapore tax laws to curb avoidance of taxes. Some of these are –

where the property in machinery or plant passes at less than the open market price, then for the purposes of computing balancing allowances and balancing charges, the machinery or plant is deemed to have passed at the open market price
certain undistributed profits may be treated as distributed and the persons concerned assessable accordingly, if IRAS believes that the profits remain undistributed in order to avoid or reduce tax
Alternate rules for sales between associated enterprises, restriction on deduction of trading losses, provisions related to assessment of non-residents etc.