Income Tax (Concessionary Rate of Tax or Exemption for Income Derived from Debt Securities) Regulations

Source: Singapore Statutes Online | Archived by Legal Wires

Income Tax Act
(CHAPTER 134, SECTION 43N)
Income Tax (Concessionary Rate of Tax or Exemption for
Income Derived from Debt Securities) Regulations
Rg 32
G.N. No. S 479/1999

REVISED EDITION 2001
(31st January 2001)
[2nd November 1999]
Citation
1.  These Regulations may be cited as the Income Tax (Concessionary Rate of Tax or Exemption for Income Derived from Debt Securities) Regulations.
Definitions
2.  In these Regulations —
“Authority” means the Monetary Authority of Singapore;
[S 239/2016 wef 28/06/2013]
“debt securities”, “Islamic debt securities”, “primary dealer” and “Singapore Government securities” have the same meanings as in section 43H of the Act;
[S 51/2006 wef 01/01/2005]
[S 195/2026 wef 31/12/2021]
[Deleted by S 195/2026 wef 15/02/2023]
“early redemption fee”, “financial institution”, “qualifying debt securities” and “redemption premium” have the meanings given by section 13(16) of the Act.
[S 195/2026 wef 15/02/2023]
Concessionary rate of tax
3.  Tax shall be payable at the rate of 10% on —
(a)any interest derived by a company on or after 28th February 1998 from any qualifying debt securities issued during the period from 28th February 1998 to 25th April 1999;
[S 214/2001 wef 10/04/2001]
(aa)subject to section 43H(2) of the Act, regulation 7 and the conditions specified in the Income Tax (Qualifying Debt Securities) Regulations 2001 (G.N. No. S 212/2001), any interest derived by a company on or after 26 April 1999 from any qualifying debt securities issued during the period from 26 April 1999 to 31 December 2028 (both dates inclusive);
[S 239/2016 wef 01/01/2014]
[S 267/2009 wef 01/01/2009]
[S 349/2005 wef 01/01/2004]
[S 349/2005 wef 03/12/2003]
[S 214/2001 wef 10/04/2001]
[S 868/2018 wef 27/12/2018]
[S 195/2026 wef 31/12/2021]
[S 195/2026 wef 01/01/2024]
(ab)subject to section 43H(2) of the Act, regulation 7 and the conditions specified in the Income Tax (Qualifying Debt Securities) Regulations (Rg 35), any discount derived by a company from any qualifying debt securities which are —
(i)[Deleted by S 195/2026 wef 01/01/2024]
(ii)issued during the period from 17 February 2006 to 31 December 2028 (both dates inclusive);
[S 239/2016 wef 01/01/2014]
[S 267/2009 wef 01/01/2009]
[S 98/2007 wef 17/02/2006]
[S 868/2018 wef 27/12/2018]
[S 195/2026 wef 01/01/2024]
[S 195/2026 wef 31/12/2021]
(ac)subject to section 43H(2) of the Act, regulation 7 and the conditions specified in the Income Tax (Qualifying Debt Securities) Regulations (Rg 35), any amount payable to any company from any Islamic debt securities which are qualifying debt securities, and issued during the period from 1 January 2005 to 31 December 2028 (both dates inclusive);
[S 239/2016 wef 01/01/2014]
[S 267/2009 wef 01/01/2009]
[S 51/2006 wef 01/01/2005]
[S 868/2018 wef 27/12/2018]
[S 195/2026 wef 31/12/2021]
[S 195/2026 wef 01/01/2024]
(ad)subject to section 43H(2) of the Act, regulation 7 and the conditions specified in the Income Tax (Qualifying Debt Securities) Regulations (Rg 35), any early redemption fee or redemption premium derived by a company on or after 15 February 2007 from any qualifying debt securities issued during the period from 15 February 2007 to 31 December 2028 (both dates inclusive);
[S 239/2016 wef 01/01/2014]
[S 267/2009 wef 01/01/2009]
[S 398/2008 wef 15/02/2007]
[S 868/2018 wef 27/12/2018]
[S 195/2026 wef 31/12/2021]
[S 195/2026 wef 15/02/2023]
[S 195/2026 wef 01/01/2024]
(b)any income derived by a financial institution from trading in any debt securities during the period from 28th February 1998 to 31st December 2003; and
[S 349/2005 wef 03/12/2003]
(c)any 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.
[S 349/2005 wef 03/12/2003]
Tax exemption
4.  There shall be exempt from tax —
(a)any income derived by a financial institution on or after 28th February 1998 from arranging, underwriting and distributing any qualifying debt securities issued during the period from 28th February 1998 to 25th April 1999;
[S 214/2001 wef 10/04/2001]
(aa)subject to regulation 7 and the conditions specified in the Income Tax (Qualifying Debt Securities) Regulations 2001 (G.N. No. S 212/2001), any income derived by a financial institution before 1st January 2004 from arranging, underwriting and distributing any qualifying debt securities issued during the period from 26th April 1999 to 31st December 2003; and
[S 349/2005 wef 03/12/2003]
[S 214/2001 wef 10/04/2001]
(b)notwithstanding regulation 3(b), any income derived by a primary dealer from trading in any Singapore Government securities during the period from 27 February 1999 to 31 December 2028 (both dates inclusive).
[S 239/2016 wef 01/01/2014]
[S 267/2009 wef 01/01/2009]
[S 868/2018 wef 27/12/2018]
[S 195/2026 wef 01/01/2024]
Determination of income chargeable to tax at concessionary rate
5.  For the purposes of regulation 3, the Comptroller shall determine —
(a)the income chargeable to tax of a company or financial institution, as the case may be, having regard to such expenses, capital allowances and donations allowable under the Act as are, in his opinion, to be deducted in ascertaining such income; and
(b)the manner and extent to which any losses arising from the activities specified in these regulations may be deducted under the Act in ascertaining the chargeable income of a company or financial institution, as the case may be.
[S 51/2006 wef 26/01/2006]
Determination of income exempted from tax
6.—(1)  In determining the income of a financial institution or a primary dealer to be exempted from tax under regulation 4 —
(a)the Comptroller shall have regard to such expenses and capital allowances allowable under the Act as are, in his opinion, to be deducted in ascertaining such income;
[S 520/2013 wef Y/A 2013 & Sub. Ys/A]
(b)there shall be deducted from that income any allowances under section 19, 19A, 20, 21 or 22 attributable to that income notwithstanding that no claim for those allowances has been made;
(c)any balance of the allowances mentioned in sub-paragraph (b) and any losses incurred in respect of any activity the income from which would be exempted from tax under regulation 4 shall only be deducted against income from the same activity exempted under that regulation, and any balance of such allowances and losses shall not be deducted against any other income; and
(d)any balance of the allowances and losses mentioned in sub-paragraph (c) remaining unabsorbed as at the end of the period for which the exemption from tax under regulation 4 applies shall, subject to paragraph (2), be available as a deduction against any other income for the year of assessment which relates to the basis period in which the tax exemption ceases and any subsequent year of assessment in accordance with section 23 or 37 of the Act, as the case may be.
(2)  Section 37A of the Act shall apply to any amount of allowances and losses available as a deduction against any other income as provided under paragraph (1)(d) as if they were unabsorbed allowances or losses in respect of the income of a company subject to tax at a lower rate of tax under that section; and for this purpose the rate of tax shall be taken to be the concessionary rate of tax in accordance with regulations made under section 43H of the Act.
[S 98/2007 wef 13/02/2007]
[S 195/2026 wef 31/12/2021]
Requirement to submit return
7.—(1)  The concessionary rate of tax referred to in regulation 3(aa) shall not apply to any interest derived by a company from any qualifying debt securities issued during the period from 26 April 1999 to 31 December 2028 (both dates inclusive), where the issuer of such securities, or such other person as the Authority may direct, has not furnished to the Authority in respect of the issue of the debt securities —
(a)a return on those securities within such period as the Authority may specify; and
[S 239/2016 wef 28/06/2013]
(b)such other particulars in connection with those securities as the Authority may require.
[S 239/2016 wef 01/01/2014]
[S 239/2016 wef 28/06/2013]
[S 267/2009 wef 01/01/2009]
[S 868/2018 wef 27/12/2018]
[S 195/2026 wef 01/01/2024]
(1A)  The concessionary rate of tax referred to in regulation 3(ab) shall not apply to the discount derived by a company from any qualifying debt securities issued during the period from 17 February 2006 to 31 December 2028 (both dates inclusive), where the issuer of such securities, or such other person as the Authority may direct, has not furnished to the Authority in respect of the issue of the debt securities —
(a)a return on those securities within such period as the Authority may specify; and
[S 239/2016 wef 28/06/2013]
(b)such other particulars in connection with those securities as the Authority may require.
[S 239/2016 wef 01/01/2014]
[S 239/2016 wef 28/06/2013]
[S 267/2009 wef 01/01/2009]
[S 349/2005 wef 27/02/2004]
[S 868/2018 wef 27/12/2018]
[S 195/2026 wef 01/01/2024]
(1B)  The concessionary rate of tax referred to in regulation 3(ac) shall not apply to any amount payable to a company from any Islamic debt securities which are qualifying debt securities, and issued during the period from 1 January 2005 to 31 December 2028 (both dates inclusive), where the issuer of such securities, or such other person as the Authority may direct, has not furnished to the Authority in respect of the issue of the debt securities —
(a)a return on those securities within such period as the Authority may specify; and
[S 239/2016 wef 28/06/2013]
(b)such other particulars in connection with those securities as the Authority may require.
[S 239/2016 wef 01/01/2014]
[S 239/2016 wef 28/06/2013]
[S 267/2009 wef 01/01/2009]
[S 51/2006 wef 01/01/2005]
[S 868/2018 wef 27/12/2018]
[S 195/2026 wef 01/01/2024]
(1C)  The concessionary rate of tax referred to in regulation 3(ad) shall not apply to any early redemption fee or redemption premium derived by a company from any qualifying debt securities issued during the period from 15 February 2007 to 31 December 2028 (both dates inclusive), where the issuer of such securities, or such other person as the Authority may direct, has not furnished to the Authority in respect of the issue of the debt securities —
(a)a return on those securities within such period as the Authority may specify; and
[S 239/2016 wef 28/06/2013]
(b)such other particulars in connection with those securities as the Authority may require.
[S 239/2016 wef 01/01/2014]
[S 239/2016 wef 28/06/2013]
[S 267/2009 wef 01/01/2009]
[S 398/2008 wef 15/02/2007]
[S 868/2018 wef 27/12/2018]
[S 195/2026 wef 15/02/2023]
[S 195/2026 wef 01/01/2024]
(2)  The tax exemption referred to in regulation 4(aa) shall not apply to any income derived by a financial institution from arranging, underwriting and distributing any qualifying debt securities during the period from 26th April 1999 to 31st December 2003, where the issuer of such securities, or such other person as the Comptroller may direct, has not furnished to the Comptroller in respect of the issue of the debt securities —
(a)a return on those securities within such period as the Comptroller may specify; and
(b)such other particulars in connection with those securities as the Comptroller may require.
[S 349/2005 wef 03/12/2003]

LEGISLATIVE HISTORY

Income Tax (Concessionary Rate of Tax or Exemption for Income Derived from Debt Securities) Regulations

 

This Legislative History is provided for the convenience of users of the Income Tax (Concessionary Rate of Tax or Exemption for Income Derived from Debt Securities) Regulations. It is not part of these Regulations.
1.  
G. N. No. S 479/1999—Income Tax (Concessionary Rate of Tax or Exemption for Income Derived from Debt Securities) Regulations 1999
Date of commencement
:
2 November 1999
2.  
G. N. No. S 427/2000—Income Tax (Concessionary Rate of Tax or Exemption for Income Derived from Debt Securities) (Amendment) Regulations 2000
Date of commencement
:
28 September 2000
3.  
2001 Revised Edition—Income Tax (Concessionary Rate of Tax or Exemption for Income Derived from Debt Securities) Regulations
Date of operation
:
31 January 2001
4.  
G. N. No. S 214/2001—Income Tax (Concessionary Rate of Tax or Exemption for Income Derived from Debt Securities) (Amendment) Regulations 2001
Date of commencement
:
10 April 2001
5.  
G. N. No. S 349/2005—Income Tax (Concessionary Rate of Tax or Exemption for Income Derived from Debt Securities) (Amendment) Regulations 2005
Date of commencement
:
3 December 2003
6.  
G. N. No. S 349/2005—Income Tax (Concessionary Rate of Tax or Exemption for Income Derived from Debt Securities) (Amendment) Regulations 2005
Date of commencement
:
1 January 2004
7.  
G. N. No. S 349/2005—Income Tax (Concessionary Rate of Tax or Exemption for Income Derived from Debt Securities) (Amendment) Regulations 2005
Date of commencement
:
27 February 2004
8.  
G. N. No. S 51/2006—Income Tax (Concessionary Rate of Tax or Exemption for Income Derived from Debt Securities) (Amendment) Regulations 2006
Date of commencement
:
1 January 2005
9.  
G. N. No. S 51/2006—Income Tax (Concessionary Rate of Tax or Exemption for Income Derived from Debt Securities) (Amendment) Regulations 2006
Date of commencement
:
26 January 2006
10.  
G. N. No. S 98/2007—Income Tax (Concessionary Rate of Tax or Exemption for Income Derived from Debt Securities) (Amendment) Regulations 2007
Date of commencement
:
17 February 2006
11.  
G. N. No. S 98/2007—Income Tax (Concessionary Rate of Tax or Exemption for Income Derived from Debt Securities) (Amendment) Regulations 2007
Date of commencement
:
13 February 2007
12.  
G. N. No. S 398/2008—Income Tax (Concessionary Rate of Tax or Exemption for Income Derived from Debt Securities) (Amendment) Regulations 2008
Date of commencement
:
15 February 2007
13.  
G. N. No. S 267/2009—Income Tax (Concessionary Rate of Tax or Exemption for Income Derived from Debt Securities) (Amendment) Regulations 2009
Date of commencement
:
1 January 2009
14.  
G. N. No. S 239/2016—Income Tax (Concessionary Rate of Tax or Exemption for Income Derived from Debt Securities) (Amendment) Regulations 2016
Date of commencement
:
28 June 2013
15.  
G.N. No. S 520/2013—Income Tax (Concessionary Rate of Tax or Exemption for Income Derived from Debt Securities) (Amendment) Regulations 2013
Date of commencement
:
13 August 2013
16.  
G. N. No. S 239/2016—Income Tax (Concessionary Rate of Tax or Exemption for Income Derived from Debt Securities) (Amendment) Regulations 2016
Date of commencement
:
1 January 2014
17.  
G.N. No. S 868/2018—Income Tax (Concessionary Rate of Tax or Exemption for Income Derived from Debt Securities) (Amendment) Regulations 2018
Date of commencement
:
27 December 2018
18.  
G.N. No. S 195/2026—Income Tax (Concessionary Rate of Tax or Exemption for Income Derived from Debt Securities) (Amendment) Regulations 2026
Date of commencement
:
31 December 2021
19.  
G.N. No. S 195/2026—Income Tax (Concessionary Rate of Tax or Exemption for Income Derived from Debt Securities) (Amendment) Regulations 2026
Date of commencement
:
15 February 2023
20.  
G.N. No. S 195/2026—Income Tax (Concessionary Rate of Tax or Exemption for Income Derived from Debt Securities) (Amendment) Regulations 2026
Date of commencement
:
1 January 2024

Archived for legal research. Authoritative version at sso.agc.gov.sg.