Stamp Duties (Islamic Debt Securities Arrangements) (Remission) Rules 2009

No. S 207

Stamp Duties Act

(Chapter 312)

Stamp Duties (Islamic Debt Securities Arrangements) (Remission) Rules 2009

In exercise of the powers conferred by sections 74 and 77 of the Stamp Duties Act, the Minister for Finance hereby makes the following Rules:

Citation and commencement

1.  These Rules may be cited as the Stamp Duties (Islamic Debt Securities Arrangements) (Remission) Rules 2009 and shall be deemed to have come into operation on 17th February 2006.

Definitions

2.  In these Rules —

“approved” means approved by the Minister or such other person as he may appoint;

“Islamic debt securities” has the same meaning as in section 43N(4) of the Income Tax Act (Cap. 134);

“Islamic debt securities arrangement” means an arrangement where —

(a) immovable property in Singapore or any interest therein is acquired by a special purpose vehicle from the originator, funded through the issuance of Islamic debt securities by the special purpose vehicle;

(b) such immovable property or interest therein, as the case may be, is leased by the special purpose vehicle to the originator; and

(c) such immovable property or interest therein, as the case may be, is re-acquired by the originator upon the maturity of the Islamic debt securities;

“originator”, in relation to an Islamic debt securities arrangement, means any person who transfers immovable properties in Singapore or any interest therein to a special purpose vehicle in the Islamic debt securities arrangement;

“qualifying debt securities” has the same meaning as in section 13(16) of the Income Tax Act (Cap. 134);

“related party”, in relation to a person, means any other person who, directly or indirectly, controls that person, or is controlled, directly or indirectly, by that person, or where he and that other person, directly or indirectly, are under the control of a common person;

“special purpose vehicle” means a company whose only business is to engage in Islamic debt securities arrangements.

Remission of duty relating to Islamic debt securities arrangements

3.  Subject to the conditions specified in rule 4 and the submission of such documents as the Commissioner may require, there shall be remitted all duty chargeable under the Act in excess of $500 on any instrument relating to an approved Islamic debt securities arrangement.

Conditions for remission

4.  The conditions for the remission referred to in rule 3 are as follows:

(a) the instrument relating to the acquisition of the immovable property or interest therein, as the case may be, by the special purpose vehicle under the approved Islamic debt securities arrangement is executed on or after 17th February 2006;

(b) the acquisition by the special purpose vehicle, and the re-acquisition by the originator, of the immovable property or interest therein, as the case may be, under the approved Islamic debt securities arrangement, are at the same price;

(c) the price referred to in paragraph (b) is the value of the Islamic debt securities issued by the special purpose vehicle to fund its acquisition of the immovable property or interest therein, as the case may be, from the originator, which value shall be determined on or before the commencement of the arrangement; and

(d) where the Islamic debt securities are qualifying debt securities, less than 50% of the Islamic debt securities issued is beneficially held or funded, directly or indirectly, at any time during the term of the debt securities, by the originator or by related parties of the originator.

Made this 5th day of May 2009.

TEO MING KIAN

Permanent Secretary,
Ministry of Finance,
Singapore.

[MFR032.018.2925 V4; AG/LEG/SL/312/2005/4 Vol. 1]