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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 XXA EXCHANGE OF INFORMATION UNDER AVOIDANCE OF DOUBLE TAXATION ARRANGEMENTS AND EXCHANGE OF INFORMATION ARRANGEMENTS

Part XXB INTERNATIONAL AGREEMENTS TO IMPROVE TAX COMPLIANCE

Part XXI MISCELLANEOUS

FIRST SCHEDULE Institution, authority, person or fund exempted

SECOND SCHEDULE Rates of tax

THIRD SCHEDULE Repealed

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

EIGHTH SCHEDULE Information to be included in a request for information under Part XXA

Legislative History

Comparative Table

Comparative Table

 
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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 (both dates inclusive) which mature within one year from the date of issue of those securities; or
[Act 37 of 2014 wef 27/11/2014]
(ii)
any qualifying debt securities issued during the period from 17th February 2006 to 31st December 2018 (both dates inclusive);
[Act 37 of 2014 wef 27/11/2014]
(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 2018 (both dates inclusive);
[Act 37 of 2014 wef 27/11/2014]
(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 2018 (both dates inclusive);
[Act 37 of 2014 wef 27/11/2014]
(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 (both dates inclusive); and
[Act 37 of 2014 wef 27/11/2014]
(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 (both dates inclusive) 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; 49/2004; 34/2005; 7/2007; 53/2007; 34/2008; 19/2013]
[Act 37 of 2014 wef 27/11/2014]
(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 2018 (both dates inclusive);
[Act 37 of 2014 wef 27/11/2014]
(b)
any discount from —
(i)
any qualifying debt securities issued during the period from 27th February 2004 to 16th February 2006 (both dates inclusive) which mature within one year from the date of issue of those securities; or
[Act 37 of 2014 wef 27/11/2014]
(ii)
any qualifying debt securities issued during the period from 17th February 2006 to 31st December 2018 (both dates inclusive);
[Act 37 of 2014 wef 27/11/2014]
(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 2018;
(d)
any prepayment fee, redemption premium or break cost from qualifying debt securities issued during the period from 15th February 2007 to 31st December 2018 (both dates inclusive); and
[Act 37 of 2014 wef 27/11/2014]
(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 those securities which are outstanding at any time during the life of the issue is beneficially held or funded, directly or indirectly, by related parties of the issuer of those securities and where such income is derived by —
(A)
any company which is a related party of the issuer of those securities; or
(B)
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.
[49/2004; 34/2005; 7/2007; 53/2007; 34/2008; 19/2013]
[Act 37 of 2014 wef 27/11/2014]
(2A)  Subsection (1) shall not apply to income from qualifying debt securities derived by a financial sector incentive (standard tier) company.
[29/2010]
(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 31st December 2018 (both dates inclusive),
[Act 37 of 2014 wef 27/11/2014]
and for deduction of losses otherwise than in accordance with section 37(3).
[32/99; 21/2003; 34/2008; 19/2013]
(3A)  A primary dealer referred to in subsection (3)(b) may elect in accordance with subsection (3B) not to be subject to the regulations made under subsection (1); and if the primary dealer so elects, the regulations shall cease to apply to the income of that primary dealer for the year of assessment for which the election is made and for subsequent years of assessment.
[Act 37 of 2014 wef 27/11/2014]
(3B)  The election referred to in subsection (3A) shall be made by the primary dealer by notice in writing to the Comptroller —
(a)
at the time of lodgment of the return of income for a year of assessment; or
(b)
at such further time as the Comptroller may allow.
[Act 37 of 2014 wef 27/11/2014]
(3C)  The election made by a primary dealer under subsection (3A) shall be irrevocable.
[Act 37 of 2014 wef 27/11/2014]
(4)  In this section —
“break cost”, “financial institution”, “prepayment fee”, “qualifying debt securities”, “redemption premium” and “related party” have the same meanings as in section 13(16);
“debt securities” means bonds, notes, commercial papers, treasury bills, certificates of deposits, and AT1 instruments within the meaning of section 10O(2);
[Act 37 of 2014 wef Y/A 2015 and sub Ys/A]
“financial sector incentive (standard tier) company” means a financial sector incentive company within the meaning of section 43Q(3), being one that has been approved by the Minister or such person as he may appoint as a financial sector incentive (standard tier) company;
“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, and shall be deemed to include any issue of bills and notes by the Monetary Authority of Singapore that are approved by the Minister for the purposes of this Act;
“trust certificates” means certificates evidencing beneficial ownership in underlying assets.
[31/98; 32/99; 34/2005; 53/2007; 29/2010; 22/2011]
(5)  Subsections (1)(a), (aa), (ab), (ac) and (ad) and (2) and regulations made thereunder shall apply to a body of persons for the year of assessment 2010 and subsequent years of assessment.
[27/2009]
History for Provision '43N Concessionary rate of tax for income derived from debt securities'.
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Right Arrow
pr43N-.
14/08/1998
Formal Consolidation
14 August 1998
Act
134 of 1996
Compare versionsDiff

16/11/1998
Informal Consolidation
16 November 1998
Amended
Act 37 of 1998

03/09/1999
Informal Consolidation
31 August 1999
Amended
Act 32 of 1999

01/12/1999
Informal Consolidation
07 September 2000
Amended
Act 24 of 2000

30/12/1999
Formal Consolidation
30 December 1999
1999 RevEd
 
Compare versionsDiff

07/09/2000
Informal Consolidation
07 September 2000
Amended
Act 24 of 2000

01/01/2008
Formal Consolidation
01 January 2008
2008 RevEd
 
Compare versionsDiff

16/12/2008
Informal Consolidation
16 December 2008
Amended
Act 34 of 2008

29/12/2009
Informal Consolidation
31 December 2009
Amended
Act 27 of 2009

01/01/2010
Informal Consolidation
26 November 2010
Amended
Act 29 of 2010

22/11/2010
Informal Consolidation
22 November 2010
Amended
Act 29 of 2010

01/01/2011
Informal Consolidation
18 December 2012
Amended
Act 29 of 2012

01/04/2011
Informal Consolidation
01 April 2011
Amended
Act 22 of 2011

01/06/2011
Informal Consolidation
18 December 2012
Amended
Act 29 of 2012

01/01/2012
Informal Consolidation
20 December 2011
Amended
Act 22 of 2011

01/01/2014
Informal Consolidation
28 November 2013
Amended
Act 19 of 2013

31/03/2014
Formal Consolidation
31 March 2014
2014 RevEd
 
Compare versionsDiff

27/11/2014
Informal Consolidation
27 November 2014
Amended
Act 37 of 2014

01/01/2015
Informal Consolidation
01 January 2015
Amended
Act 37 of 2014