—(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.
(2) In determining the income of a leasing company from offshore leasing —
the allowances under section 19, 19A, 20, 21, 22 or 23 in respect of offshore finance leasing in any year of assessment after deduction against the income from such leasing shall be available as a deduction against any income from onshore finance 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;
where the 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 in paragraph (b) 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;
(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.
(4) [Deleted by Act 53/2007]
(5) [Deleted by Act 53/2007]
(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).
(7) An election under subsection (6) shall be made by a leasing company by notice in writing to the Comptroller and shall be irrevocable.
(8) Where a leasing company has made an election under subsection (6) —
any allowance or the balance thereof in respect of finance leasing which was 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 the income from finance leasing for the first year of assessment to which paragraph (a) applies and for any subsequent year of assessment.
[11/94; 1/98; 53/2007]
(9) In this section —
“finance lease”, “finance leasing” and “onshore finance leasing” have the same meanings 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 —
are in currencies other than Singapore dollars; and
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.