Long Title

Enacting Formula

Amendment of section 43P
42.  Section 43P of the principal Act is amended —
(a)
by deleting subsection (1) and substituting the following subsections:
(1)  Notwithstanding section 43, the Minister may by regulations provide that tax at the rate of 5% or 10% shall be levied and paid for each year of assessment upon —
(a)
such income as the Minister may specify of an approved global trading company derived by it from such qualifying transactions in commodities or commodities futures as may be prescribed; and
(b)
such income as the Minister may specify of an approved qualifying company derived by it on or after 21st May 2010 from the carrying on of such qualifying structured commodity financing activities as may be prescribed,
and those regulations may provide for the deduction of losses otherwise than in accordance with section 37(3).
(1A)  Approval may be granted for the purposes of subsection (1)(b) during the period from 21st May 2010 to 20th May 2015 (both dates inclusive) for such period not exceeding 5 years as the Minister may specify.”;
(b)
by inserting, immediately after the words “approved global trading company” in subsection (2), the words “or an approved qualifying company”;
(c)
by deleting subsection (3) and substituting the following subsection:
(3)  In this section —
“global trading company” means a company carrying on the business of international trading of commodities or commodities futures;
“qualifying company” means —
(a)
an approved global trading company; or
(b)
a company which is a wholly-owned subsidiary of a global trading company,
which carries on any qualifying structured commodity financing activities prescribed under subsection (1).”; and
(d)
by inserting, immediately after the words “global trading company” in the section heading, the words “and qualifying company”.