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Contents  

Long Title

Part I PRELIMINARY

Part II ADMINISTRATION

Part III IMPOSITION OF INCOME TAX

Part IV EXEMPTION FROM INCOME TAX

Part V DEDUCTIONS AGAINST INCOME

Part VI CAPITAL ALLOWANCES

Part VII ASCERTAINMENT OF CERTAIN INCOME

Part VIII ASCERTAINMENT OF STATUTORY INCOME

Part IX ASCERTAINMENT OF ASSESSABLE INCOME

Part X ASCERTAINMENT OF CHARGEABLE INCOME AND PERSONAL RELIEFS

Part XI RATES OF TAX

Part XII DEDUCTION OF TAX AT SOURCE

Part XIII ALLOWANCES FOR TAX CHARGED

Part XIV RELIEF AGAINST DOUBLE TAXATION

Part XV PERSONS CHARGEABLE

Husband and wife

Trustees, agents and curators

Part XVI RETURNS

Part XVII ASSESSMENTS AND OBJECTIONS

Part XVIII APPEALS

Part XIX COLLECTION, RECOVERY AND REPAYMENT OF TAX

Part XX OFFENCES AND PENALTIES

Part XXI MISCELLANEOUS

FIRST SCHEDULE Institution, Authority, Person or Fund Exempted

SECOND SCHEDULE Rates of Tax

THIRD SCHEDULE

FOURTH SCHEDULE Name of Bond, Securities, Stock or Fund

FIFTH SCHEDULE Child Relief

SIXTH SCHEDULE Number of Years of Working Life of Asset

SEVENTH SCHEDULE Advance Rulings

Legislative History

Comparative Table

 
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PART XI
RATES OF TAX
Rates of tax upon individuals
42.
—(1)  Subject to subsections (2), (4) and (6), there shall be levied and paid for each year of assessment upon the chargeable income of every person (other than a company, a person not resident in Singapore, a trustee who is not the trustee of an incapacitated person, or an executor) tax in accordance with the rates specified in —
(a)
Part A of the Second Schedule in respect of the chargeable income of an individual or Hindu joint family;
(b)
Part B of the Second Schedule in respect of the chargeable income of a person other than an individual or Hindu joint family.
[7/79; 1/88; 37/2002]
(2)  Without prejudice to section 50, the rate of tax applicable to the income of an individual or Hindu joint family received in Singapore from outside Singapore shall be determined by reference to that income together with all other income and shall be deemed to be the highest rate applicable to his total income and.
[31/86; 26/93; 28/96]
(3)  Where dividends are received by any institution, authority, person or fund specified in the First Schedule and such dividends are not exempt under section 13(1)(e), the gross amount of the dividends shall be taxed at the same rate as is applicable to a company.
[1/88]
(4)  Notwithstanding Part B of the Second Schedule, where the effective rate of tax of a person other than an individual determined by dividing the tax chargeable on his chargeable income by the amount of that income exceeds the effective rate of tax for companies as determined under subsection (5), the rate of tax applicable to that person on every dollar of his chargeable income shall be the effective rate of tax for companies as so determined.
[24/2001]
(5)  For the purposes of subsection (4), the effective rate of tax for companies shall be determined in accordance with the formula
where A
is the tax chargeable on the chargeable income of the person for the year of assessment calculated in accordance with section 43(6) as if the person is a company; and
B
is the chargeable income of the person for the year of assessment.
(6)  There shall be levied and paid for each year of assessment upon the following income derived by a body of persons at the rate of 10%:
(a)
interest from qualifying debt securities;
(b)
discount from —
(i)
qualifying debt securities issued during the period from 27th February 2004 to 16th February 2006 which mature within one year from the date of issue of those securities; or
(ii)
qualifying debt securities issued during the period from 17th February 2006 to 31st December 2008;
(c)
any amount payable from any Islamic debt securities which are qualifying debt securities, and issued during the period from 1st January 2005 to 31st December 2008;
(d)
prepayment fee, redemption premium or break cost from qualifying debt securities issued during the period from 15th February 2007 to 31st December 2008; and
(e)
such other income directly attributable to qualifying debt securities issued on or after a prescribed date, as may be prescribed by regulations.
(7)  Subsection (6) shall not, unless otherwise approved by the Minister or such person as he may appoint, apply to —
(a)
any interest derived from any qualifying debt securities issued during the period from 10th May 1999 to 31st December 2008;
(b)
any discount derived from —
(i)
any qualifying debt securities issued during the period from 27th February 2004 to 16th February 2006 which mature within one year from the date of issue of those securities; or
(ii)
any qualifying debt securities issued during the period from 17th February 2006 to 31st December 2008;
(c)
any amount payable from any Islamic debt securities which are qualifying debt securities, and issued during the period from 1st January 2005 to 31st December 2008;
(d)
any prepayment fee, redemption premium or break cost from qualifying debt securities issued during the period from 15th February 2007 to 31st December 2008; and
(e)
such other income directly attributable to qualifying debt securities issued on or after a prescribed date, as may be prescribed by regulations,
where 50% or more of the issue of those securities is beneficially held or funded, directly or indirectly, at any time during the life of the issue by related parties of the issuer of those securities and where such income is derived by any body of persons —
(i)
which is a related party of the issuer of those securities; or
(ii)
from securities acquired using funds obtained, directly or indirectly, from any related party of the issuer of those securities.
(8)  In this section —
“Islamic debt securities” has the same meaning as in section 43N(4);
“break cost”, “prepayment fee”, “qualifying debt securities”, “redemption premium” and “related party” have the same meanings as in section 13(16).
Rebate for second, third and fourth child of family
42A.
—(1)  Where an individual resident in Singapore has —
(a)
a second child of the family born to him on or after 1st January 2004 who is legitimate at the time of the birth;
(b)
an illegitimate second child of the family born to him on or after 1st January 2004 and the individual becomes lawfully married to the other natural parent of the child before the child reaches 6 years of age;
(c)
a second child of the family adopted by him under any written law relating to the adoption of children on or after 1st January 2004 and before 1st January 2006; or
(d)
a second child of the family adopted by him under any written law relating to the adoption of children on or after 1st January 2006 and before the child reaches 6 years of age,
then there shall, in respect of that child, be allowed for the year of assessment immediately following the year of the birth in the case of paragraph (a), the year of the marriage in the case of paragraph (b), or the year of the adoption in the case of paragraph (c) or (d), a rebate of $10,000 against the tax payable by that individual.
(2)  Where an individual resident in Singapore has —
(a)
a third or fourth child of the family born to him on or after 1st January 2004 who is legitimate at the time of the birth;
(b)
an illegitimate third or fourth child of the family born to him on or after 1st January 2004 and the individual becomes lawfully married to the other natural parent of the child before the child reaches 6 years of age;
(c)
a third or fourth child of the family adopted by him under any written law relating to the adoption of children on or after 1st January 2004 and before 1st January 2006; or
(d)
a third or fourth child of the family adopted by him under any written law relating to the adoption of children on or after 1st January 2006 and before the child reaches 6 years of age,
then there shall, in respect of that child, be allowed for the year of assessment immediately following the year of the birth in the case of paragraph (a), the year of the marriage in the case of paragraph (b), or the year of the adoption in the case of paragraph (c) or (d), a rebate of $20,000 against the tax payable by that individual.
(2A)  Where more than one individual is entitled to claim the rebate referred to in subsection (1) or (2), the rebate shall be apportioned between them in such proportion as they may agree or, in the absence of any agreement, in such manner as appears to the Comptroller to be reasonable.
(3)  For the purposes of subsections (1), (2) and (2A), where full effect cannot be given to the rebate in respect of any child by reason of an insufficiency of the tax payable by an individual for that year of assessment, the balance of the unabsorbed rebate shall be available for deduction against the tax payable by the individual for the year of assessment immediately following that year of assessment and any subsequent year of assessment.
(4)  Where the second, third or fourth child in respect of whom a rebate is allowable to an individual under this section is adopted by another person, the rebate or balance, if any, of the unabsorbed rebate shall not be available for deduction against the tax payable by the individual for any year of assessment following the year in which the child is adopted.
(5)  Where, for the year of assessment 2005 or any subsequent year of assessment, an individual would have been entitled to claim any rebate or balance of the unabsorbed rebate under section 42A(1) and (2)(a) in force immediately before 1st January 2005 but for the repeal of that section, such rebate or balance shall, subject to subsection (4), be available for deduction against the tax payable by that individual for the year of assessment 2005 and any subsequent year of assessment; but where more than one individual is entitled to claim such rebate, the rebate shall be apportioned between them in such proportion as they may agree, or, in the absence of any agreement, in such manner as appears to the Comptroller to be reasonable.
(6)  Where, for the year of assessment 2005 or any subsequent year of assessment, a married woman would have been entitled to claim any rebate or balance of the unabsorbed rebate under section 42A(2)(b) and (3) in force immediately before 1st January 2005 but for the repeal of that section —
(a)
such rebate or balance shall, subject to subsection (4), be available for deduction against the tax payable by that woman for the year of assessment 2005 and any subsequent year of assessment up to 9 years of assessment immediately following the year of birth of the third child or fourth child, as the case may be; and
(b)
where the fourth child is born within 9 years of the birth of the third child and full effect cannot be given to the rebate in respect of the fourth child by reason of an insufficiency of the tax payable by that woman for that year of assessment, the rebate or balance, if any, of the unabsorbed rebate shall, subject to subsection (4), be available for deduction, in the case of the fourth child, against the tax payable by that woman for up to 9 years of assessment immediately following the last year of assessment in which the rebate in respect of the third child may be allowed under paragraph (a).
(7)  Where, for the year of assessment 2005 or any subsequent year of assessment, a married woman would have been entitled to claim any rebate or balance of the unabsorbed rebate under section 42A(1), (2) and (3) in force immediately before 1st January 2005 but for the repeal of that section, the rebate or balance of the unabsorbed rebate in respect of the third child or fourth child, as the case may be, under section 42A(2)(b) and (3) in force immediately before 1st January 2005 shall —
(a)
subject to subsection (4), first be allowed for deduction against the tax payable by that woman before the rebate or balance of unabsorbed rebate under section 42A(1) and (2)(a) in force immediately before 1st January 2005 is allowed; and
(b)
subject to section 42A(4)(b) and (c) in force immediately before 1st January 2005, be available for deduction for the year of assessment 2005 and any subsequent year of assessment.
(8)  Where a marriage has been dissolved by divorce or annulment and an individual is entitled to claim —
(a)
any rebate or balance of the unabsorbed rebate under section 42A(1) or (2) in force immediately before 1st January 2005, but for the repeal of that section, in respect of any child born to the individual from that marriage; and
(b)
any rebate under section 42A(1) or (2) in force immediately before 1st January 2005, but for the repeal of that section, in respect of any child born to the individual after the dissolution of the marriage,
subsections (5), (6) and (7) shall only apply to any second, third or fourth child, as the case may be, born to the individual after the dissolution of the marriage.
(9)  Where a marriage was dissolved by divorce or annulment before 1st January 2002 and an individual would, but for section 42A(3)(e) in force immediately before that date, have been entitled to claim any rebate or balance of the unabsorbed rebate under section 42A(1) or (2) in force immediately before 1st January 2005, such rebate or balance shall, subject to subsection 42A(4)(a) to (d) in force immediately before 1st January 2005, be available for deduction against the tax payable by that individual only on due claim by that individual after that date and only for any year of assessment from the year of the claim.
(10)  No rebate shall be allowed under this section in respect of a child who —
(a)
at the time of his birth or adoption or the marriage of his natural parents (as the case may be), has more than 3 other siblings who are members of the same household; or
(b)
is adopted by an individual before the individual is married.
(11)  In this section —
“second child of the family” means a child of the family who —
(a)
is a citizen of Singapore at the time of his birth or adoption or the marriage of his natural parents (as the case may be), or within 12 months thereafter; and
(b)
at the time of his birth, adoption or the marriage of his natural parents (as the case may be), has one other sibling who is a member of the same household;
“third child of the family” means a child of the family who —
(a)
is a citizen of Singapore at the time of his birth or adoption or the marriage of his natural parents (as the case may be), or within 12 months thereafter; and
(b)
at the time of his birth, adoption or the marriage of his natural parents (as the case may be), has 2 other siblings who are members of the same household;
“fourth child of the family” means a child of the family who —
(a)
is a citizen of Singapore at the time of his birth or adoption or the marriage of his natural parents (as the case may be), or within 12 months thereafter; and
(b)
at the time of his birth, adoption or the marriage of his natural parents (as the case may be), has 3 other siblings who are members of the same household;
“sibling” means a brother or sister and includes a step-brother, a step-sister and a brother or sister adopted under any written law relating to the adoption of children.
(12)  For the purposes of subsection (11), any sibling who is deceased shall be taken into account in determining the number of siblings a child has at the time of his birth or adoption or the marriage of his natural parents unless otherwise determined by the Comptroller.
[Act 49/2004, wef Y/A 2005 & Sub Ys/A:2004-ACT-49]
Rate of tax upon companies and others
43.
—(1)  Subject to section 40, there shall be levied and paid for each year of assessment upon the chargeable income of —
(a)
every company, tax at the rate of 20% on every dollar of the chargeable income thereof;
[24/2001]
(b)
every person (other than a company) not resident in Singapore, trustee (other than the trustee of an incapacitated person) and executor, tax at the rate of 20% on every dollar of the chargeable income thereof.
[31/86; 1/90; 20/91; 28/92; 26/93; 28/96; 24/2001; 37/2002]
(2)  Where any trustee proves to the satisfaction of the Comptroller that any beneficiary of the trust is entitled to a share of the trust income, a corresponding share of the statutory income of the trustee may be charged at a lower rate or not charged with any tax, as the Comptroller shall determine.
(2A)  Subsection (2) shall not apply to —
(a)
in the case of a real estate investment trust, any income from any trade or business carried on by the trustee, other than the following income distributed by the trustee:
(i)
rental income or income from the management or holding of immovable property but not including gains from the disposal of immovable property;
(ii)
interest income ancillary to the management or holding of immovable property;
(iii)
income of the kinds referred to in section 13(1)(zd), (ze)(i) and (zf); or
(b)
in the case of any other trust, any income from any trade or business carried on by the trustee.
[Act 7/2007, wef Y/A 2008 & Sub Ys/A:2007-ACT-7]
(3)  Notwithstanding anything in this Act but subject to subsection (3A), tax at the rate of 15% shall be levied and paid on the gross amount of —
(a)
any income referred to in section 12(6); and
(b)
any income referred to in section 12(7)(a), (b) and (d) but excluding the incomes specified in subsection (7),
accruing in or derived from Singapore on or after 28th February 1996 by a person not resident in Singapore which is not derived by the person from any trade, business, profession or vocation carried on or exercised by him in Singapore and which is not effectively connected with any permanent establishment in Singapore of the person.
[28/96]
(3A)  Notwithstanding anything in this Act, tax at the rate of 10% shall be levied and paid on the gross amount of any income referred to in section 12(7)(a) and (b) but excluding the incomes specified in subsection (7), accruing in or derived from Singapore on or after 1st January 2005 by a person not resident in Singapore which is not derived by the person from any trade, business, profession or vocation carried on or exercised by him in Singapore and which is not effectively connected with any permanent establishment in Singapore of the person.
(3B)  Notwithstanding anything in this Act, tax at the rate of 10% shall be levied and paid on the gross amount of any distribution made out of any income referred to in subsection (2A)(a)(i), (ii)and (iii) during the period from 18th February 2005 to 17th February 2010 by a trustee of any real estate investment trust to a person (other than an individual) not resident in Singapore —
(a)
who does not have any permanent establishment in Singapore; or
(b)
who carries on any operation in Singapore through a permanent establishment in Singapore, where the funds used by that person to acquire the units in that real estate investment trust are not obtained from that operation.
(3C)  Notwithstanding anything in this Act, tax at the rate of 18% shall be levied and paid on the gross amount of any Singapore dividends paid during the period from 1st January 2007 to 31st December 2007 by a company resident in Singapore to a person (being an individual or a Hindu joint family) not resident in Singapore unless such person elects for such income to be taxed under subsection (1)(b).
(4)  Notwithstanding anything in this Act but subject to subsection (5) and sections 13(1)(r) and 40A, tax at the rate of 15% shall be levied and paid on the gross amount of any income accruing in or derived from Singapore on or after 3rd May 2002 from any profession or vocation carried on by —
(a)
an individual not resident in Singapore and whose principal place of business is situated outside Singapore; or
(b)
a foreign firm.
[37/2002]
(5)  Any individual or foreign firm to which subsection (4) applies may make an irrevocable option to be taxed under subsection (1)(b) within 45 days from the date of payment of the income to the individual or firm or, where such payment was made before 10th December 2002, within 30 days after that date.
[37/2002; 21/2003]
(6)  Notwithstanding subsection (1) but subject to subsection (6A), for the year of assessment 2002 and subsequent years of assessment, there shall be levied and paid for each year of assessment upon the chargeable income of every company, tax at the rate prescribed in subsection (1)(a) on every dollar of the chargeable income thereof except that —
(a)
for every dollar of the first $10,000 of the chargeable income (excluding Singapore dividends), only 25% shall be charged with tax; and
(b)
for every dollar of the next $90,000 of the chargeable income (excluding Singapore dividends), only 50% shall be charged with tax.
[24/2001]
(6A)  Notwithstanding subsections (1) and (6), for each of the first 3 years of assessment, falling within the years of assessment 2005 to 2009, of a qualifying company, there shall be levied and paid upon the chargeable income of the company tax at the rate prescribed in subsection (1)(a) on every dollar of the chargeable income thereof except that every dollar of the first $100,000 of the chargeable income (excluding Singapore dividends) shall be exempt from tax.
(7)  The incomes excluded under subsections (3)(b) and (3A) are —
(a)
any royalty and other payments referred to in section 10(14) or (16) which are derived by the person not resident in Singapore; and
(b)
any payment to a person not resident in Singapore for the rendering of assistance or service in connection with the application or use of scientific, technical, industrial or commercial knowledge or information.
[28/96]
(8)  The reference to 20% in subsection (1) shall, for the years of assessment 2003 and 2004, be read as a reference to 22%.
(9)  Notwithstanding subsection (1)(a), the tax to be levied and paid upon such income of a life insurer apportioned to the policyholders of the insurer as the Minister may by regulations specify shall be at the rate of 10% or such other prescribed rate.
[28/92]
(10)  In this section —
“foreign firm” means an unincorporated body of 2 or more persons who have entered into partnership with one another with a view to carrying on business for profit and whose principal place of business is situated outside Singapore;
“first 3 years of assessment”, in relation to a qualifying company, means the year of assessment relating to the basis period during which the company is incorporated in Singapore and the 2 consecutive years of assessment immediately following that year of assessment;
[Act 49/2004, wef Y/A 2005 & Sub Ys/A:2004-ACT-49]
“gross amount”, in relation to any income referred to in subsections (3), (3A), (3B) and (4), means the full amount of the income without any deduction and relief being allowed against the income under the provisions of this Act;
“qualifying company” means a company incorporated in Singapore (other than a company limited by guarantee) which for each of the first 3 years of assessment —
(a)
is resident in Singapore for that year of assessment; and
(b)
has total share capital which is beneficially held, directly or indirectly, by no more than 20 persons all of whom are individuals throughout the basis period for that year of assessment;
[Act 7/2007, wef Y/A 2005 & Sub Ys/A:2007-ACT-7]
“immovable property-related assets” means listed or unlisted debt securities and listed shares issued by property corporations, mortgage-backed securities, other property funds, and assets incidental to the ownership of immovable property;
“real estate investment trust” means a trust that is constituted as a collective investment scheme authorised under section 286 of the Securities and Futures Act (Cap. 289) and listed on the Singapore Exchange, and that invests or proposes to invest in immovable property and immovable property-related assets;
“Singapore dividends” means any dividend derived from Singapore from which tax is deducted or deductible under section 44.
Concessionary rate of tax for Asian Currency Unit, Fund Manager and securities company
43A.
—(1)  Notwithstanding section 43, the Minister may by regulations provide that tax at the rate of 10% or such other concessionary rate be levied and paid for each year of assessment upon such income derived before 1st January 2004 as the Minister may specify of —
(a)
a financial institution with an Asian Currency Unit;
(b)
a Fund Manager;
(c)
a company holding a capital markets services licence under the Securities and Futures Act (Cap. 289) to deal in securities or that is exempted under that Act from holding such a licence,
approved by the Minister or such person as he may appoint.
[1/88; 42/2001; 37/2002; 21/2003]
(2)  Regulations made under subsection (1) may provide for —
(a)
exemption from tax of any income referred to in that subsection;
(b)
exemption from tax of such income as the Minister may specify of —
(i)
a bank licensed under the Banking Act (Cap. 19) or a merchant bank approved by the Monetary Authority of Singapore; and
(ii)
a company approved under subsection (1)(c),
derived by it from any approved syndicated offshore credit or guarantee facility or any other syndicated offshore credit or guarantee facility made before 1st January 2004 which satisfies the prescribed criteria; and
(c)
deduction of losses otherwise than in accordance with section 37(3).
[31/98; 32/99; 21/2003]
Special rate of tax for non-resident shipowner or charterer or air transport undertaking
43B.  Notwithstanding section 43, where the tax authority of a foreign country taxes the profits derived by a person resident in Singapore from carrying on the business of a shipowner or charterer or of air transport at a rate which exceeds the rate prescribed by section 43, the Minister may direct that the profits derived in Singapore from the carrying on of such business by a non-resident person who is resident in that foreign country be charged to tax at a rate similar to that charged by the tax authority of that foreign country.
[37/75]
Exemption and concessionary rate of tax for insurance and reinsurance business
43C.
—(1)  Notwithstanding section 43, the Minister may by regulations provide for —
(a)
tax at the rate of 10% or such other concessionary rate to be levied and paid for each year of assessment upon the income derived by an insurer approved by the Minister or such person as he may appoint from carrying on offshore life business within the meaning of section 26 or the business (other than the business of life assurance) of insuring and reinsuring offshore risks;
(b)
exemption from tax of any income derived by an insurer approved by the Minister or such person as he may appoint from insurance and reinsurance business; and
(c)
deduction of losses otherwise than in accordance with section 37(3).
[21/2003]
[Act 34/2005, wef Y/A 2005 & Sub Ys/A:2005-ACT-34]
(2)  In this section, “insurer” means —
(a)
a company registered under the Insurance Act (Cap. 142) to carry on insurance business in Singapore; or
(b)
a person (including a partnership), other than an individual, permitted under the Insurance Act to carry on insurance business in Singapore under a foreign insurer scheme.
[Act 34/2005, wef Y/A 2005 & Sub Ys/A:2005-ACT-34]
Concessionary rate of tax for offshore transactions on any market maintained by Singapore Exchange or its subsidiaries
43D.
—(1)  Notwithstanding section 43, the Minister may by regulations provide that tax at the rate of 10% or such other concessionary rate shall be levied and paid for each year of assessment upon such income as the Minister may specify of a futures member of the Singapore Exchange —
(a)
derived from transactions in gold bullion or in any commodity or financial futures on any approved exchange or in any approved market with, or derived from any foreign exchange transaction with —
(i)
a bank licensed under the Banking Act (Cap. 19), or a merchant bank approved by the Monetary Authority of Singapore, which is a financial sector incentive company;
(ii)
another futures member of the Singapore Exchange;
(iii)
a person who is neither a resident of nor a permanent establishment in Singapore;
(iv)
a branch office outside Singapore of a company resident in Singapore; or
(v)
a foreign investor where such transaction is carried out through a financial sector incentive company;
(b)
derived from transactions in any petroleum futures on any approved exchange with an oil trading company approved under section 43F;
(c)
derived from transactions in derivatives products as approved by the Minister or such person as he may appoint and introduced during the period from 1st January 2002 to 31st December 2006, on any market maintained by the Singapore Exchange or its subsidiaries, with any of the persons mentioned in paragraph (a)(i) to (v) and any member of any securities market maintained by the Singapore Exchange Securities Trading Limited,
and those regulations may provide for the deduction of losses otherwise than in accordance with section 37(3).
[13/84; 1/90; 28/92; 26/93; 32/99; 24/2000; 37/2002]
(2)  Regulations made under subsection (1) may also provide that tax at the rate of 10% or such other concessionary rate shall be levied and paid for each year of assessment upon such income of any member of any securities market maintained by the Singapore Exchange Securities Trading Limited in respect of transactions described in subsection (1)(c).
[37/2002]
(3)  In this section and sections 43A(2)(b), 43E, 43F, 43G, 43H, 43J, 43O, 43P, 43R and 43S, “approved” means approved by the Minister or such person as he may appoint.
[1/98; 31/98; 37/2002; 21/2003]
(4)  In this section —
“financial sector incentive company” has the same meaning as in section 43Q;
“futures member of the Singapore Exchange” means any company which holds membership of any class or description of a futures market, or of a clearing house for the futures market, maintained by the Singapore Exchange Limited or any of its subsidiaries.
Concessionary rate of tax for headquarters company
43E.
—(1)  Notwithstanding section 43, the Minister may by regulations provide that tax at the rate of 10% or such other concessionary rate shall be levied and paid for each year of assessment upon such income as the Minister may specify of an approved headquarters company derived by it from —
(a)
the provision of such qualifying services as may be prescribed to its offices, associated companies and other persons where such offices, associated companies and persons are outside Singapore; or
(b)
such qualifying treasury, investment or financial activities as may be prescribed,
and those regulations may provide for the deduction of losses otherwise than in accordance with section 37(3).
[31/86; 20/91]
(2)  The concessionary rate of tax referred to in subsection (1) shall apply to an approved headquarters company —
(a)
in respect of any qualifying service only where the qualifying service and the office, associated company or person to whom the service is rendered have been approved in relation to that headquarters company for such concessionary rate;
(b)
in respect of any qualifying treasury, investment or financial activity only where the qualifying activity has been approved in relation to that headquarters company for such concessionary rate; and
(c)
subject to such conditions as the Minister or such person appointed by him may impose.
[20/91]
(3)  Regulations made under subsection (1) may provide for exemption from tax of income derived by an approved headquarters company from the provision of any qualifying service if —
(a)
the qualifying service and the office, associated company or person to whom the service is rendered have been approved in relation to the approved headquarters company for the purposes of the exemption from tax; and
(b)
the approved headquarters company has global responsibility for the provision of any qualifying service.
[32/99]
(4)  In this section —
“associated company”, in relation to an approved headquarters company, means a company —
(a)
the operations of which are or can be controlled, directly or indirectly, by that headquarters company;
(b)
which controls or can control, directly or indirectly, the operations of that headquarters company; or
(c)
the operations of which are or can be controlled, directly or indirectly, by a person or persons who control or can control, directly or indirectly, the operations of that headquarters company;
“headquarters company” means a company carrying on the business in Singapore of providing management, technical or other supporting services to its offices outside Singapore or to its associated companies outside Singapore.
(5)  For the purposes of subsection (4), a company shall be deemed to be an associated company in relation to an approved headquarters company if —
(a)
at least 25% of the total number of its issued shares are beneficially owned, directly or indirectly, by the approved headquarters company; or
(b)
at least 25% of the total number of the issued shares of the approved headquarters company are beneficially owned, directly or indirectly, by the first-mentioned company.
Concessionary rate of tax for oil trading company
43F.
—(1)  Notwithstanding section 43, the Minister may by regulations provide that tax at the rate of 10% or such other concessionary rate be levied and paid for each year of assessment upon such income as the Minister may specify of an approved oil trading company derived from such transactions in petroleum, petroleum products or petroleum futures as may be prescribed, and those regulations may provide for deduction of losses otherwise than in accordance with section 37(3).
[1/90]
(2)  In this section, “oil trading company” means a company carrying on a business of trading in petroleum, petroleum products or petroleum futures.
(3)  No approval shall be granted under this section on or after 1st June 2001.
[37/2002]
Concessionary rate of tax for Finance and Treasury Centre
43G.
—(1)  Notwithstanding section 43, the Minister may by regulations provide that tax at the rate of 10% or such other concessionary rate be levied and paid for each year of assessment upon such income as he may specify of a company derived from —
(a)
the operation of its approved Finance and Treasury Centre in respect of such qualifying activities carried out on its own account as may be prescribed; or
(b)
such prescribed qualifying services as may be provided by its approved Finance and Treasury Centre to —
(i)
its offices and associated companies outside Singapore; or
(ii)
such of its offices and associated companies in Singapore as are approved on or after 18th February 2005,
and those regulations may provide for the deduction of losses otherwise than in accordance with section 37(3).
[20/91]
(2)  The concessionary rate of tax referred to in subsection (1) shall apply to an approved Finance and Treasury Centre —
(a)
in respect of any qualifying service only where the qualifying service and the office or associated company to whom the service is rendered have been approved in relation to that Centre for such concessionary rate;
(b)
in respect of any qualifying activity only where the qualifying activity has been approved in relation to that Centre for such concessionary rate; and
(c)
subject to such conditions as the Minister or such person appointed by him may impose.
(3)  In this section —
“associated company”, in relation to a company with an approved Finance and Treasury Centre, means a company —
(a)
the operations of which are or can be controlled, directly or indirectly, by the company with the approved Centre;
(b)
which controls or can control, directly or indirectly, the operations of the company with the approved Centre; or
(c)
the operations of which are or can be controlled, directly or indirectly, by a person or persons who control or can control, directly or indirectly, the operations of the company with the approved Centre;
“Finance and Treasury Centre” means a division or department of a company which provides treasury, investment or financial services in Singapore for its offices or its associated companies.
(4)  For the purposes of subsection (3), a company shall be deemed to be an associated company in relation to a company with an approved Finance and Treasury Centre if —
(a)
at least 25% of the total number of its issued shares are beneficially owned, directly or indirectly, by the company with the approved Centre; or
(b)
at least 25% of the total number of issued shares of the company with the approved Centre are beneficially owned, directly or indirectly, by the first-mentioned company.
Concessionary rate of tax for international commodity trading company
43H.
—(1)  Notwithstanding section 43, the Minister may by regulations provide that tax at the rate of 10% or such other concessionary rate shall be levied and paid for each year of assessment upon such income as the Minister may specify of an approved international commodity trading company derived by it from such qualifying transactions in commodities or commodity futures as may be prescribed, and those regulations may provide for the deduction of losses otherwise than in accordance with section 37(3).
[20/91]
(2)  In this section, “international commodity trading company” means a company carrying on the business of international trading of commodities other than petroleum or petroleum products.
(3)  No approval shall be granted under this section on or after 1st June 2001.
[37/2002]
Concessionary rate of tax for offshore leasing of machinery and plant
43I.
—(1)  Notwithstanding section 43, tax at the rate of 10% or such other concessionary rate as the Minister may by regulations prescribe shall be levied and paid for each year of assessment upon the income of a leasing company accruing in or derived from Singapore in respect of offshore leasing of any machinery or plant or such other activity as may be prescribed by regulations.
[20/91; 31/98]
(2)  In determining the income of a leasing company from offshore leasing —
(a)
the allowances under section 19, 19A, 20, 21, 22 or 23 shall be taken into account notwithstanding that no claim for such allowances has been made;
(b)
the allowances under section 19, 19A, 20, 21, 22 or 23 in respect of offshore finance leasing shall, subject to paragraph (c), only be deducted against the income from such leasing and any balance of the allowances shall not be available as a deduction against any other income or be available for transfer under section 37C;
(c)
where the leasing company ceases to derive income from offshore finance leasing in the basis period for any year of assessment, any balance of the allowances after the deduction in paragraph (b) shall be available as a deduction against any other income in accordance with regulations made under subsection (4);
(d)
the allowances under section 19, 19A, 20, 21, 22 or 23 in respect of offshore operating leasing shall firstly be deducted against the income from such leasing and any balance of the allowances shall, subject to paragraph (e), be deducted against the income from offshore finance leasing but not against any other income or be available for transfer under section 37C;
(e)
where the leasing company ceases to derive income from offshore operating leasing in the basis period for any year of assessment, any balance of the allowances after the deduction against the income from such leasing shall be available as a deduction against any other income in accordance with regulations made under subsection (4);
(f)
the Comptroller shall determine the manner and extent to which allowances under section 19, 19A, 20, 21, 22 or 23 and any expenses and donations allowable under this Act are to be deducted;
(g)
any losses incurred in respect of offshore finance leasing for any year of assessment shall, subject to paragraph (h), only be deducted against the income from offshore operating leasing but not against any other income or be available for transfer under section 37C for that year of assessment and any balance of the losses shall be available for deduction for any subsequent year of assessment in accordance with section 37 firstly against the income from offshore finance leasing and thereafter against the income from offshore operating leasing;
(h)
where the leasing company ceases to derive income from offshore finance leasing in the basis period for any year of assessment, any losses under section 37 in respect of such leasing shall firstly be deducted against the income from such leasing and any balance of the losses shall be available as a deduction against any other income in accordance with regulations made under subsection (4);
(i)
any losses incurred in respect of offshore operating leasing for any year of assessment shall, subject to paragraph (j), only be deducted against the income from offshore finance leasing but not against any other income or be available for transfer under section 37C for that year of assessment and any balance of the losses shall be available for deduction for any subsequent year of assessment in accordance with section 37 firstly against the income from offshore operating leasing and thereafter against the income from offshore finance leasing;
(j)
where the leasing company ceases to derive income from offshore operating leasing in the basis period for any year of assessment, any losses under section 37 in respect of such leasing shall firstly be deducted against the income from such leasing and any balance of the losses shall be available as a deduction against any other income in accordance with regulations made under subsection (4).
[1/98; 37/2002]
(3)  Subsection (2) shall apply, with the necessary modifications, in determining the income of a leasing company from any activity prescribed by regulations made under subsection (1) as if such income were income from offshore operating leasing.
[31/98]
(4)  The Minister may make regulations —
(a)
prescribing the manner and extent to which the allowances referred to in subsection (2)(c) or (e) or the losses referred to in subsection (2)(h) or (j) are to be deducted;
(b)
prescribing the manner and extent to which the allowance or loss referred to in subsection (8)(b) are to be deducted; and
(c)
generally for the determination of the income of a leasing company.
[1/98]
(5)  Section 37B shall apply, with the necessary modifications, in relation to the deduction of allowances under section 19, 19A, 20, 21, 22 or 23 or losses under section 37 in respect of such part of the income of the leasing company as is subject to tax at the rate of tax under section 43(1)(a) and of such part of the income of the leasing company as is subject to tax at the concessionary rate of tax under this section; and for the purpose of such application any reference in section 37B to income of a company subject to tax at a lower rate of tax or income of the company subject to tax at a lower rate of tax, as the case may be, shall be read as a reference to such part of the income of the leasing company as is subject to tax at the concessionary rate of tax under this section.
[1/98; 37/2002]
(6)  Notwithstanding subsection (1), a leasing company may, at any time, elect that the whole of its income accruing in or derived from Singapore in respect of offshore leasing of any machinery or plant shall be taxed at the rate prescribed by section 43(1)(a).
[11/94]
(7)  An election under subsection (6) shall be made by a leasing company by notice in writing to the Comptroller and shall be irrevocable.
[11/94]
(8)  Where a leasing company has made an election under subsection (6) —
(a)
subsections (1) to (5) shall not apply to the income of the leasing company for the year of assessment immediately following the year in which the election is made and for subsequent years of assessment; and
(b)
any allowance or loss or the balance thereof which were not deducted against the income of the leasing company for any year of assessment during which the concessionary rate prescribed by subsection (1) applies shall be available as a deduction against its income for the first year of assessment to which paragraph (a) applies or for any subsequent year of assessment in such manner and extent as prescribed by regulations made under subsection (4).
[11/94; 1/98]
(9)  In this section —
“finance lease” has the same meaning as in section 10D(3);
“leasing company” means any company carrying on a business of leasing machinery or plant;
“offshore finance leasing” means the offshore leasing of any machinery or plant under any finance lease;
“offshore leasing” means the leasing of any machinery or plant, other than those which have been treated as though they had been sold pursuant to regulations made under section 10D(1), where such machinery or plant is used outside Singapore, and the payments under the lease —
(a)
are in currencies other than Singapore dollars; and
(b)
are not deductible against any income accruing in or derived from Singapore;
“offshore operating leasing” means the offshore leasing of any machinery or plant, other than offshore finance leasing.
[1/98]
Concessionary rate of tax for trustee company
43J.
—(1)  Notwithstanding section 43, the Minister may by regulations provide that tax at the rate of 10% or such other concessionary rate shall be levied and paid for each year of assessment upon such income as the Minister may specify of an approved trustee company derived by it from such services as may be prescribed; and those regulations may provide for exemption from tax of any such income and for the deduction of losses otherwise than in accordance with section 37(3).
[2/92]
(2)  In this section, “trustee company” means a company that is a licensed trustee company within the meaning of the Trust Companies Act (Cap. 336), or that is exempted under that Act from holding a trust business licence within the meaning of that Act.
Concessionary rate of tax for members of commodity futures exchange
43K.
—(1)  Notwithstanding section 43, the Minister may by regulations provide that tax at the rate of 10% or such other concessionary rate shall be levied and paid for each year of assessment upon such income as the Minister may specify of a member of a prescribed Commodity Futures Exchange derived from transactions in specified commodity futures on any specified exchange or in any specified market with —
(a)
an Asian Currency Unit of a financial institution;
(b)
another member of the prescribed Commodity Futures Exchange;
(c)
a person who is neither a resident of nor a permanent establishment in Singapore; or
(d)
a branch office outside Singapore of a company resident in Singapore,
and those regulations may provide for the deduction of losses otherwise than in accordance with section 37(3).
[28/92]
(2)  In this section —
“commodity” has the same meaning as in the Commodity Trading Act (Cap. 48A);
“Commodity Futures Exchange” means a body corporate approved as a Commodity Futures Exchange under section 5 of the Commodity Trading Act.
[28/92]
43L.  [Deleted by Act 7/2007 wef 01/11/2006]
43M.  [Repealed by Act 21/2003]
Concessionary rate of tax for income derived from debt securities
43N.
—(1)  Notwithstanding section 43, the Minister may by regulations provide that tax at the rate of 10% or such other concessionary rate shall be levied and paid for each year of assessment upon —
(a)
interest derived by any company from any qualifying debt securities;
(aa)
discount derived by any company from —
(i)
any qualifying debt securities issued during the period from 27th February 2004 to 16th February 2006 which mature within one year from the date of issue of those securities; or
(ii)
any qualifying debt securities issued during the period from 17th February 2006 to 31st December 2008;
(ab)
any amount payable to any company from any Islamic debt securities which are qualifying debt securities, and issued during the period from 1st January 2005 to 31st December 2008;
(ac)
any prepayment fee, redemption premium or break cost derived by any company from qualifying debt securities issued during the period from 15th February 2007 to 31st December 2008;
(ad)
such other income derived by any company that is directly attributable to qualifying debt securities issued on or after a prescribed date, as may be prescribed by regulations;
(b)
income derived by any financial institution from trading in any debt securities during the period from 28th February 1998 to 31st December 2003; and
(c)
income derived by any financial institution during the period commencing from the first day of its basis period for the year of assessment 2001 to 31st December 2003 from —
(i)
providing services as an intermediary in connection with any transaction involving interest rate or currency swaps; and
(ii)
trading in interest rate or currency swaps.
[31/98; 24/2000; 21/2003]
(2)  Subsection (1)(a) , (aa), (ab), (ac) or (ad), as the case may be, shall not, unless otherwise approved by the Minister or such person as he may appoint, apply to —
(a)
any interest derived from any qualifying debt securities issued during the period from 10th May 1999 to 31st December 2008;
(b)
any discount from —
(i)
any qualifying debt securities issued during the period from 27th February 2004 to 16th February 2006 which mature within one year from the date of issue of those securities; or
(ii)
any qualifying debt securities issued during the period from 17th February 2006 to 31st December 2008;
(c)
any amount payable from any Islamic debt securities which are qualifying debt securities, and issued during the period from 1st January 2005 to 31st December 2008;
(d)
any prepayment fee, redemption premium or break cost from qualifying debt securities issued during the period from 15th February 2007 to 31st December 2008; and
(e)
such other income directly attributable to qualifying debt securities issued on or after a prescribed date, as may be prescribed by regulations,
where 50% or more of the issue of those securities is beneficially held or funded, directly or indirectly, at any time during the life of the issue by related parties of the issuer of those securities and where such income is derived by —
(i)
any company which is a related party of the issuer of those securities; or
(ii)
any company where the funds used by such company to acquire those securities are obtained, directly or indirectly, from any related party of the issuer of those securities.
(3)  Regulations made under subsection (1) may provide for exemption from tax of —
(a)
income derived before 1st January 2004 by any financial institution from arranging, underwriting or distributing any qualifying debt securities; and
(b)
income derived by a primary dealer from trading in any Singapore Government securities during the period from 27th February 1999 to 27th February 2008,
and for deduction of losses otherwise than in accordance with section 37(3).
[32/99; 21/2003]
(4)  In this section —
“debt securities” means bonds, notes, commercial papers, treasury bills and certificates of deposits;
“break cost”, “financial institution”, “prepayment fee”, “qualifying debt securities”, “redemption premium” and “related party” have the same meanings as in section 13(16);
“Islamic debt securities” means debt securities and trust certificates —
(a)
which are endorsed by any Shari’ah council or body, or by any committee formed for the purpose of providing guidance on compliance with Shari’ah law; and
(b)
the amounts payable from such securities and trust certificates are periodic and supported by a regular stream of receipts from underlying assets;
“primary dealer” means any financial institution specified in the First Schedule to the Government Securities Regulations (Cap. 121A, Rg 1);
“Singapore Government securities” means debt securities issued under the Government Securities Act (Cap. 121A), the Local Treasury Bills Act (Cap. 167) or any other written law;
[31/98; 32/99]
“trust certificates” means certificates evidencing beneficial ownership in underlying assets.
Concessionary rate of tax for cyber trading
43O.
—(1)  Notwithstanding section 43, the Minister may by regulations provide that tax at the rate of 10% or such other concessionary rate shall be levied and paid for each year of assessment upon such income as the Minister may specify of an approved company derived by it from such qualifying electronic commerce transactions as may be prescribed.
[31/98]
(2)  Regulations made under subsection (1) may provide for the deduction of losses of an approved company otherwise than in accordance with section 37(3).
[31/98]
Concessionary rate of tax for global trading company
43P.
—(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 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 those regulations may provide for the deduction of losses otherwise than in accordance with section 37(3).
[37/2002; 21/2003]
(2)  The concessionary rate of tax referred to in subsection (1) shall apply to an approved global trading company subject to such conditions as the Minister or such person as he may appoint may impose.
[21/2003]
(3)  In this section, “global trading company” means a company carrying on the business of international trading of commodities or commodities futures, including petroleum and petroleum products.
[37/2002]
Concessionary rate of tax for financial sector incentive company
43Q.
—(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 such income as the Minister may specify, derived on or after 1st January 2004 by a financial sector incentive company from such qualifying activities as may be prescribed, and those regulations may provide for the deduction of losses otherwise than in accordance with section 37(3).
[21/2003]
(2)  The concessionary rate of tax referred to in subsection (1) shall apply to a financial sector incentive company subject to such conditions as the Minister or such person as he may appoint may impose.
[21/2003]
(3)  In this section, “financial sector incentive company” means a company carrying on such qualifying activities as may be prescribed and is approved by the Minister or such person as he may appoint.
[21/2003]
Concessionary rate of tax for provision of processing services to financial institutions
43R.
—(1)  Notwithstanding section 43, the Minister may by regulations provide that tax at the rate of 5% shall be levied and paid for each year of assessment upon such income as the Minister may specify of an approved company derived by it on or after 27th February 2004 from the provision of prescribed processing services in Singapore to any financial institution or another approved company; and those regulations may provide for the deduction of losses of an approved company otherwise than in accordance with section 37(3).
(2)  The concessionary rate of tax referred to in subsection (1) shall apply to an approved company subject to such conditions as the Minister or such person as he may appoint may impose.
(3)  No approval under this section shall be granted to any company on or after 27th February 2009.
(4)  In this section, “financial institution” means —
(a)
any institution in Singapore that is licensed or approved by the Monetary Authority of Singapore, or exempted from such licensing or approval, under any written law administered by the Monetary Authority of Singapore; or
(b)
any institution outside Singapore that is licensed or approved, or exempted from such licensing or approval, by its financial supervisory authority for the carrying on of financial activities.
Concessionary rate of tax for commodity derivatives trading company
43S.
—(1)  Notwithstanding section 43, the Minister may by regulations provide that tax at the rate of 5% shall be levied and paid for each year of assessment upon such income as the Minister may specify of an approved commodity derivatives trading company derived by it on or after 27th February 2004 from prescribed transactions in commodity derivatives or commodities, and those regulations may provide for the conditions to be satisfied for the approval of such a company, and for the deduction of losses otherwise than in accordance with section 37(3).
(2)  The concessionary rate of tax referred to in subsection (1) shall apply to an approved commodity derivatives trading company subject to such conditions as the Minister or such person as he may appoint may impose.
(3)  In this section, “commodity derivatives trading company” means a company carrying on the business of trading of commodity derivatives.
Concessionary rate of tax for income derived from securities lending or repurchase arrangement
43T.
—(1)  Notwithstanding section 43, the Minister may by regulations provide that tax at the rate of 10% shall be levied and paid for each year of assessment upon such income as the Minister may specify of a qualifying securities lending or repurchase company derived by it on or after 18th February 2005 but before 1st January 2009 under a securities lending or repurchase arrangement.
(2)  Regulations made under subsection (1) may provide for the conditions to be satisfied by a qualifying securities lending or repurchase company and for the deduction of losses otherwise than in accordance with section 37(3).
(3)  In this section —
“qualifying securities lending or repurchase company” means a company which has notified the Monetary Authority of Singapore for the purpose of this section;
“securities lending or repurchase arrangement” has the same meaning as in section 10N.
Concessionary rate of tax for income derived from organising or staging tourism event
43U.
—(1)  Notwithstanding section 43, tax at the rate of 10% shall be levied and paid for each year of assessment upon such income as the Minister may specify of an approved company incorporated or registered in Singapore derived by it on or after 1st April 2005 from organising or staging an approved tourism event, subject to such conditions as the Minister or such person appointed by him may impose.
(2)  No approval shall be granted under this section after 31st March 2010.
(3)  In this section, “approved” means approved by the Minister or such person as he may appoint.
Concessionary rate of tax for clearing member of Singapore clearing house
43V.
—(1)  Notwithstanding section 43, the Minister may by regulations provide that tax at the rate of 5% shall be levied and paid for each year of assessment upon such income as the Minister may specify of an approved clearing member of a Singapore clearing house derived by it on or after 17th February 2006 from the provision of over-the-counter derivatives clearing services using the Singapore clearing house.
(2)  Regulations made under subsection (1) may provide for the deduction of losses otherwise than in accordance with section 37(3).
(3)  The concessionary rate of tax referred to in subsection (1) shall apply to an approved clearing member of a Singapore clearing house subject to such conditions as the Minister or such person as he may appoint may impose.
(4)  No approval shall be granted under this section after 16th February 2011.
(5)  In this section —
“approved” means approved by the Minister or such person as he may appoint;
“clearing member of a Singapore clearing house” means a company which holds any membership of a Singapore clearing house;
“Singapore clearing house” means a person operating a clearing facility who is designated as a designated clearing house for the purposes of the Securities and Futures Act (Cap. 289).
Concessionary rate of tax for shipping investment manager
43W.
—(1)  Notwithstanding section 43, the Minister may by regulations provide that tax at the rate of 10% shall be levied and paid for each year of assessment upon such income as the Minister may specify of an approved shipping investment manager derived by it on or after 1st March 2006 from —
(a)
managing an approved shipping investment enterprise; or
(b)
such other services or activities carried out for an approved shipping investment enterprise as may be prescribed.
(2)  Regulations made under subsection (1) may provide for the deduction of losses otherwise than in accordance with section 37(3).
(3)  The concessionary rate of tax referred to in subsection (1) shall apply to an approved shipping investment manager subject to such conditions as the Minister or such person as he may appoint may impose.
(4)  Approval may be granted under this section between 1st March 2006 and 28th February 2011.
(5)  In this section —
“approved” means approved by the Minister or such person as he may appoint;
“shipping investment enterprise” has the same meaning as in section 13S;
“shipping investment manager” means any company incorporated in Singapore.
Concessionary rate of tax for trust income to which beneficiary is entitled
43X.
—(1)  Where any beneficiary of a trust who is resident in Singapore is entitled to any share of the statutory income of the trust, that share shall, if it would have been subject to a concessionary rate of tax under any provision of this Part had it been derived or received directly by the beneficiary rather than the trustee of the trust, be subject to the same concessionary rate of tax.
(2)  This section shall not apply to —
(a)
any income of a real estate investment trust within the meaning of section 43(10);
(b)
any income of a unit trust designated under section 35(14);
(c)
any income of an approved CPF unit trust within the meaning of section 35(14);
(d)
any income of a trust arising from funds managed in Singapore by a fund manager prescribed under section 13C;
(e)
any income of a foreign trust specified under section 13G; or
(f)
any income of a locally administered trust prescribed under section 13Q.
[Act 7/2007, wef Y/A 2008 & Sub Ys/A:2007-ACT-7]
Concessionary rate of tax for leasing of aircraft and aircraft engines
43Y.
—(1)  Notwithstanding section 43, tax at the rate of 10% or 5% as the Minister (or such person as the Minister may appoint) may specify, shall be levied and paid for each year of assessment upon the income of an approved aircraft leasing company accruing in or derived from Singapore in respect of leasing of any aircraft or aircraft engine or such other activity as may be prescribed by regulations.
(2)  The concessionary rate of tax referred to in subsection (1) shall apply to an approved aircraft leasing company subject to such conditions as the Minister or such person as he may appoint may impose.
(3)  Tax at the concessionary rate of the income of an approved aircraft leasing company under subsection (1) shall be for a period not exceeding 5 years, except that the Minister or such person as he may appoint may extend that period for a further period or periods, each of which shall not exceed 5 years.
(4)  Approval may be granted under this section between 1st March 2007 and 29th February 2012.
(5)  In determining the income of an approved aircraft leasing company from the leasing of any aircraft or aircraft engine —
(a)
the allowances under section 19, 19A, 20, 21, 22 or 23 shall be taken into account notwithstanding that no claim for such allowances has been made;
(b)
the allowances under section 19, 19A, 20, 21, 22 or 23 in respect of finance leasing in any year of assessment shall be deducted against the income from such leasing for that year of assessment, and any balance of the allowances shall not, subject to paragraph (c), be available as a deduction against any other income or be available for transfer under section 37C;
(c)
where the approved aircraft leasing company ceases to derive income from finance leasing in the basis period for any year of assessment, any balance of the allowances in respect of finance leasing after the deduction against the income from such leasing shall be available as a deduction against any other income for that year of assessment and for any subsequent year of assessment in accordance with section 23; and
(d)
the Comptroller shall determine the manner and extent to which —
(i)
allowances under section 19, 19A, 20, 21, 22 or 23 and any expenses and donations allowable under this Act are to be deducted; and
(ii)
any loss may be deducted under section 37.
(6)  Subsection (5) shall apply, with the necessary modifications, in determining the income of an approved aircraft leasing company from any activity prescribed by regulations made under subsection (1) as if such income were income from operating leasing.
(7)  In this section —
“aircraft leasing company” means a company incorporated and resident in Singapore or a registered business trust, carrying on a business of leasing aircraft or aircraft engines;
“approved” means approved by the Minister or such person as he may appoint;
“finance leasing”, in relation to any aircraft or aircraft engine, means a lease of the aircraft or aircraft engine (including any arrangement or agreement in connection with the lease) which has the effect of transferring substantially the obsolescence, risks or rewards incidental to ownership of such aircraft or aircraft engine to the lessee;
“leasing of any aircraft or aircraft engine” means the leasing of any aircraft or aircraft engine, other than one which has been treated as though it had been sold pursuant to regulations made under section 10D(1);
“operating leasing”, in relation to any aircraft or aircraft engine, means the leasing of the aircraft or aircraft engine, other than finance leasing.
Concessionary rate of tax for aircraft investment manager
43Z.
—(1)  Notwithstanding section 43, the Minister may by regulations provide that tax at the rate of 10% shall be levied and paid for each year of assessment upon such income as the Minister may specify of an approved aircraft investment manager derived by it on or after 1st March 2007 from —
(a)
managing an approved aircraft leasing company; or
(b)
such other services or activities carried out for an approved aircraft leasing company as may be prescribed by regulations.
(2)  Regulations made under subsection (1) may provide for the deduction of losses otherwise than in accordance with section 37(3).
(3)  The concessionary rate of tax referred to in subsection (1) shall apply to an approved aircraft investment manager subject to such conditions as the Minister or such person as he may appoint may impose.
(4)  Approval may be granted under this section between 1st March 2007 and 29th February 2012.
(5)  In this section —
“aircraft investment manager” means any company incorporated in Singapore;
“aircraft leasing company” has the same meaning as in section 43Y;
“approved” means approved by the Minister or such person as he may appoint.