Income Tax (Exemption of Interest and Other Payments for Economic and Technological Development) Notification 2005

No. S 649

Income Tax Act

(Chapter 134)

Income Tax (Exemption of Interest and Other Payments for Economic and Technological Development) Notification 2005

In exercise of the powers conferred by section 13(4) of the Income Tax Act, the Minister for Finance hereby makes the following Notification:

Citation and commencement

1.  This Notification may be cited as the Income Tax (Exemption of Interest and Other Payments for Economic and Technological Development) Notification 2005 and shall be deemed to have come into operation on 27th February 2004.

Definitions

2.  In this Notification —

“Authority” means the Monetary Authority of Singapore established under the Monetary Authority of Singapore Act (Cap. 186);

“financial derivatives” means derivatives the payoffs of which are linked, whether in whole or in part, to the payoffs or performance of any financial assets, securities, financial instruments or indices, but does not include derivatives the payoffs of which are linked wholly to the payoffs or performance of commodities;

“financial institution” means any institution licensed or approved by the Authority, or exempted from such licensing and approval under any Act administered by the Authority, and includes an institution approved as a Finance and Treasury Centre under section 43G of the Act.

Exemption

3.  There shall be exempt from tax any payment which a financial institution is liable to pay, from 27th February 2004 to 19th May 2007 (both dates inclusive), on over-the-counter financial derivatives to a person who is neither resident in Singapore nor a permanent establishment in Singapore, subject to —

(a) such conditions as may be imposed by the Minister or such person as he may appoint;

(b) such declaration (in relation to transactions by institutions that are exempted from licensing or approval under any Act administered by the Authority) as may be required by the Comptroller or the Authority for the purpose of this Notification; and

(c) such declaration (in relation to transactions with related parties) as may be required by the Comptroller or the Authority for the purpose of this Notification.

Made this 4th day of October 2005.

LIM SIONG GUAN

Permanent Secretary,
Ministry of Finance,
Singapore.

[MF(R) R32.12.0006 Vol. 18; AG/LEG/SL/134/2005/8 Vol. 1]