Interpretation And Application |
1. In this Schedule —“business trust” has the meaning given by the Business Trusts Act 2004; |
“credit” includes —(a) | the supply of credit by a person, in connection with a supply of goods or services by the person, for which a separate charge is made and disclosed to the recipient of the supply of goods or services; | (b) | the discounting of any bill of exchange, promissory note, invoice or any similar instrument or debt security; and | (c) | the supply of credit by way of factoring of debts and forfaiting, |
but excludes the supply of a credit card, charge card or similar payment card made to a cardholder for which a fee for joining or subscription is charged other than the provision of credit for which a separate charge in respect of interest is made and disclosed; |
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“debt security” means any interest in or right to be paid money that is, or is to be, owing by any person or any option to acquire any such interest or right but excludes a contract of insurance and an estate or interest in land, other than an estate or interest as mortgagee or chargeholder; |
“derivative” means any financial instrument that derives its value from an underlying financial asset, index or other investment, and includes options, swaps and credit default swaps; |
“effective return” means —(a) | in the case of a qualifying Islamic financial arrangement in relation to non‑residential property in the circumstances described in paragraph (a)(ii)(A) of the definition of that arrangement, the difference between the price of the non‑residential property sold by the provider of the financing to the purchaser over the cost of the non‑residential property bought by the provider of the financing; | (b) | in the case of a qualifying Islamic financial arrangement in relation to non‑residential property in the circumstances described in paragraph (a)(ii)(B) of the definition of that arrangement, the difference between the total of the lease payments made by the purchaser over the cost of the non‑residential property bought by the provider of the financing; | (c) | in the case of a qualifying Islamic financial arrangement in relation to an asset acquired by a provider of the financing, the difference between the price of the asset sold by the provider of the financing to the bank over the cost of the asset bought by the bank on behalf of the provider of the financing; | (d) | in the case of a qualifying Islamic financial arrangement in relation to an asset jointly acquired by a provider of the financing and a purchaser, the difference between the total amount of —(i) | the money payable by the purchaser for the interest in the asset belonging to the provider of the financing; | (ii) | any lease payments for the lease of the asset; | (iii) | any moneys payable for the subsequent use of any portion of the asset referred to in sub‑paragraph (c)(v) of the definition of “qualifying Islamic financial arrangement”, as may be applicable; and | (iv) | any moneys payable in the event of an early termination of the arrangement referred to in sub‑paragraph (c)(vi) of the definition of “qualifying Islamic financial arrangement”, as may be applicable, |
and the money provided by the provider of the financing for the joint purchase of the asset; |
| (e) | in the case of a qualifying Islamic financial arrangement in relation to the construction of an asset where the asset is constructed or a comparable asset substituted therefor, the difference between the total amount of money payable by the purchaser for the asset or the comparable asset and the amount of money provided by the provider of the financing for the construction of the asset; and | (f) | in the case of an Islamic debt securities arrangement, the payments referred to in paragraph (b) of the definition of “Islamic debt securities”; |
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“equity security” means any interest in or right to a share in the capital of a body corporate (other than a limited liability partnership) or any option to acquire any such interest or right but excludes a contract of insurance and an estate or interest in land, other than an estate or interest as mortgagee or chargeholder; [S 109/2023 wef 01/03/2023] |
“interest in a partnership” means —(a) | any right of a partner in a partnership or limited liability partnership to a proportion of the partnership property on the dissolution or winding up of the partnership or limited liability partnership (as the case may be), as specified in the partnership agreement; or | (b) | if none is specified, any right of a partner in a partnership or limited liability partnership to a proportion of the profits of the partnership or limited liability partnership, as the case may be; [S 109/2023 wef 01/03/2023] |
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“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) | where the amounts payable from such securities and trust certificates are periodic and supported by a regular stream of receipts from underlying assets; |
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“Islamic debt securities arrangement” means an arrangement under which —(a) | immovable properties in Singapore, or all or part of the beneficial interest therein, are acquired by a special purpose vehicle from a person (called in this definition the originator) where the acquisition is funded through the issuance of Islamic debt securities by the special purpose vehicle; | (b) | the immovable properties are leased by the special purpose vehicle to the originator; and | (c) | the immovable properties, or all or part of the beneficial interest therein referred to in paragraph (a), are re‑acquired by the originator upon the maturity of the Islamic debt securities; |
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“life insurance contract” means a contract for the provision of a life policy within the meaning of the Insurance Act 1966; |
“limited liability partnership” has the meaning given by the Limited Liability Partnerships Act 2005; [S 109/2023 wef 01/03/2023] |
“Monetary Authority of Singapore” means the Monetary Authority of Singapore established under section 3 of the Monetary Authority of Singapore Act 1970; |
“non-residential property” means any land, building, flat or tenement other than any land, building, flat or tenement described in paragraph 2(a), (b) and (c) of Part 1; |
“public authority” means a body established or constituted by or under a public Act to perform or discharge a public function; |
“qualifying Islamic financial arrangement” means an arrangement which is 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 —(a) | in relation to non-residential property, is an arrangement that is entered into between a provider of the financing and a purchaser whereby —(i) | the provider of the financing acquires all or part of the beneficial interest in the non‑residential property from the seller with a view to selling the same to the purchaser; and | (ii) | the provider of the financing —(A) | immediately sells such beneficial interest to the purchaser (whether for consideration of a lump sum payment or instalment payments); or | (B) | immediately leases such beneficial interest to the purchaser with an option for the purchaser to acquire the non‑residential property; |
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| (b) | in relation to an asset which is acquired by a provider of the financing, is an arrangement that is entered into between the provider of the financing and a bank whereby —(i) | the provider of the financing appoints the bank as an agent to acquire the asset on its behalf, with a view to selling the asset to the bank; | (ii) | the provider of the financing immediately sells the asset to the bank (whether for consideration of a lump sum payment or instalment payments); | (iii) | the bank immediately sells the asset to another person at the same price at which the asset was first acquired on behalf of the provider of the financing by the bank; and | (iv) | the bank is not required to effect payment to the provider of the financing until after the asset is sold; |
| (c) | in relation to the asset which is jointly acquired by a provider of the financing and a purchaser, is an arrangement that is entered into between the provider of the financing and the purchaser whereby —(i) | the provider of the financing (or its agent) acquires partial interest in the asset with a view to selling its interest in the asset to the purchaser; | (ii) | the provider of the financing (or its agent) sells its interest in the asset to the purchaser on a periodic basis for an amount of money determined at the start of the arrangement; | (iii) | the provider of the financing (or its agent) leases the portion of its interest in the asset that has yet to be sold to the purchaser for an amount of money determined at the start of the arrangement; | (iv) | the provider of the financing (or its agent) appoints the purchaser, or a third party, to take on the obligations in connection with the use of the asset, including its maintenance and insurance; | (v) | in the event the asset is not in existence at the time of the joint purchase, and the provider of the financing (or its agent) leases the unsold portion of its interest in the asset to the purchaser, an amount of money may be paid by the purchaser to the provider of the financing (or its agent) for the subsequent use of that portion of the asset; | (vi) | in the event of an early termination of the arrangement, the purchaser purchases the remaining unsold portion of the interest in the asset belonging to the provider of the financing (or its agent) for an amount of money determined at the start of the arrangement; | (vii) | in the event the purchaser is unable to pay the amount of money in sub‑paragraph (vi), the provider of the financing (or its agent) may sell the asset to a third party at a price lower than the outstanding amount payable by the purchaser; and | (viii) | the purchaser purchases the whole of the interest in the asset belonging to the provider of the financing (or its agent) upon the expiry of the arrangement and obtains full ownership of the asset; |
| (d) | in relation to the construction of an asset, is an arrangement that is entered into between a provider of the financing and a purchaser whereby —(i) | at the request of the purchaser and in accordance to the purchaser’s specifications, the provider of the financing commissions the purchaser to construct an asset, for an amount of money, with a view to selling the completed asset to the purchaser; | (ii) | either —(A) | the provider of the financing (or its agent) leases the asset to the purchaser with an option for the purchaser to acquire the asset; or | (B) | the purchaser undertakes to purchase the asset from the provider of the financing (or its agent) after the completed asset has been transferred to the provider of the financing in accordance with sub‑paragraph (v)(A); |
| (iii) | the purchaser procures the construction of the asset by a third party; | (iv) | the provider of the financing (or its agent) makes periodic payments to the purchaser for the construction of the asset; | (v) | one of the following events takes place:(A) | the purchaser transfers the ownership of the asset to the provider of the financing (or its agent) on a mutually agreed date on or after the completion of the construction of the asset by the third party; | (B) | the purchaser returns all the periodic payments received to the provider of the financing (or its agent) and cancels the lease arrangement referred to in sub‑paragraph (ii)(A); or | (C) | the provider of the financing (or its agent) agrees to the substitution of the asset that is the subject of the lease arrangement in sub‑paragraph (ii)(A) or the purchase undertaking in sub‑paragraph (ii)(B) with a comparable asset, and the purchaser transfers the ownership of the comparable asset to the provider of the financing (or its agent), on a mutually agreed date; |
| (vi) | the provider of the financing (or its agent) does not take physical delivery of the asset or the comparable asset, as the case may be; and | (vii) | at the end of the arrangement, the provider of the financing (or its agent) transfers ownership of the asset or the comparable asset, as the case may be, to the purchaser pursuant to —(A) | the lease arrangement referred to in sub‑paragraph (ii)(A) (except upon the occurrence of the event in sub‑paragraph (v)(B)); or | (B) | the purchase undertaking referred to in sub‑paragraph (ii)(B), |
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“qualifying Islamic agency arrangement” means an arrangement —(a) | which is 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) | whereby —(i) | a bank appoints another bank as an agent of the firstmentioned bank for a fee, to use the firstmentioned bank’s funds with a view of generating an expected gain; | (ii) | the second-mentioned bank returns the firstmentioned bank’s funds and the expected gain at the end of the arrangement; and | (iii) | the second-mentioned bank retains any gains in excess of the expected gain; |
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“special purpose vehicle”, in relation to an Islamic debt securities arrangement, means a company whose only business is to acquire the originator’s immovable properties in Singapore, lease them back to the originator and transfer such properties to the originator upon the maturity of the Islamic debt securities; |
“specified CPF scheme” means a scheme established under the Central Provident Fund Act 1953 that —(a) | provides for the payment of moneys on the death of a person or on the happening of any contingency dependent on the termination or continuance of human life, except where the payment is only to be made in the event of —(i) | death by accident; or | (ii) | death resulting from specified sickness; |
| (b) | is subject to payment of premiums for a term dependent on the termination or continuance of human life; | (c) | provides for the payment of an annuity for a term dependent on the termination or continuance of human life; or | (d) | is a combination of any of the above; |
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“trust certificates” means certificates evidencing beneficial ownership in underlying assets; |
“unit” means a right or interest (whether described as a unit, a sub-unit or otherwise) which may be acquired under a unit trust or business trust. |
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1A. In the definition of “equity security” in paragraph 1, the reference to a share in the capital of a body corporate includes a share in a VCC. |
2. In this Schedule, gold, silver or platinum (as the case may be) possesses investment characteristics if —(a) | it is refined (as defined in section 37B(2)) by —(i) | in the case of gold or silver, a refiner who is or was in the “Good Delivery” list of the London Bullion Market Association; | (ii) | in the case of platinum, a refiner who is or was in the “Good Delivery” list of the London Platinum and Palladium Market; or | (iii) | in any case, a refiner who —(A) | intends to be on the “Good Delivery” list of the London Bullion Market Association or the London Platinum and Palladium Market, as the case may be; and | (B) | is endorsed by the Enterprise Singapore Board established by section 3 of the Enterprise Singapore Board Act 2018 at the following times:(BA) | in the case of a supply of investment precious metals, at the time of the supply; | (BB) | in the case of an import of investment precious metals, at the time the investment precious metals are removed from customs control; and |
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| (b) | it bears a mark or characteristic that is internationally accepted as guaranteeing its quality. |
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3.—(1) Paragraph 1 (other than sub-paragraph (q)) and paragraph 2 of Part 1 does not apply to any services consisting of arranging, broking, underwriting or advising on any of the activities specified therein in return for a brokerage fee, commission or other similar consideration.(2) Paragraph 1(j) and (n) of Part 1 does not apply to any supply which section 37 provides is to be disregarded for the purposes of this Act. |
(3) Paragraph 2 of Part 1 does not apply to that part of the supply comprising —(a) | the sale and lease of any furniture, furnishings, fittings, appliances or effects; | (b) | services consisting of the maintenance, repair and upkeep of the building, flat or tenement or any common property or limited common property connected therewith; and | (c) | any building, flat or tenement which is not used or to be used principally for residential purposes. |
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(4) For the purpose of paragraph 3(3)(c) of this Part and paragraph 2(c) of Part 1, the Minister may, by order in the Gazette, provide that any building, flat or tenement is to be included, or is not to be included, as a building, flat or tenement used or to be used principally for residential purposes. [28/2007; 20/2010; 19/2012; 37/2017; 10/2018; 28/2019; 33/2019; S 676/2008; S 391/2009; S 567/2010; S 692/2011; S 496/2012; S 852/2012; S 828/2013; S 396/2016; S 374/2017; S 312/2018; S 35/2019; S 575/2019; S 581/2021] |
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