No. S 593
Income Tax Act
(Chapter 134)
Income Tax (Concessionary Rate of Tax for Approved Global Trading Companies) (Amendment) Regulations 2009
In exercise of the powers conferred by section 43P of the Income Tax Act, the Minister for Finance hereby makes the following Regulations:
Citation and commencement
1.—(1)  These Regulations may be cited as the Income Tax (Concessionary Rate of Tax for Approved Global Trading Companies) (Amendment) Regulations 2009.
(2)  Regulations 2(a), 3(c) and (d), 4(a), (c), (d) and (e), 5 and 6 shall be deemed to have come into operation on 24th May 2007.
(3)  Regulations 2(b), (c) and (d), 3(a) and (b) and 4(b) shall have effect for the year of assessment 2006 and subsequent years of assessment.
Amendment of regulation 2
2.  Regulation 2 of the Income Tax (Concessionary Rate of Tax for Approved Global Trading Companies) Regulations 2003 (G.N. No. S 204/2003) (referred to in these Regulations as the principal Regulations) is amended —
(a)by inserting, immediately after the definition of “approved oil trading company”, the following definition:
“ “carbon credit” means the right to emit an amount of any greenhouse gas having the same global warming potential as one tonne of carbon dioxide;”;
(b)by deleting the word “or” at the end of paragraph (viii) of the definition of “commodity futures trading”;
(c)by inserting the word “or” at the end of paragraph (ix) of the definition of “commodity futures trading”, and by inserting immediately thereafter the following paragraph:
(x)  a financial sector incentive company which is —
(A)a bank licensed under the Banking Act (Cap. 19); or
(B)a merchant bank approved under section 28 of the Monetary Authority of Singapore Act (Cap. 186);”; and
(d)by inserting, immediately after the definition of “exchange-traded freight derivatives”, the following definition:
“ “financial sector incentive company” has the same meaning as in section 43Q of the Act;”.
Amendment of regulation 4
3.  Regulation 4(1) of the principal Regulations is amended —
(a)by deleting the word “or” at the end of sub-paragraph (c)(vii);
(b)by deleting the full-stop at the end of sub-paragraph (viii) of sub-paragraph (c) and substituting the word “; or”, and by inserting immediately thereafter the following sub-paragraph:
(ix)  a financial sector incentive company which is —
(A)a bank licensed under the Banking Act (Cap. 19); or
(B)a merchant bank approved under section 28 of the Monetary Authority of Singapore Act (Cap. 186).”;
(c)by deleting the word “or” at the end of sub-paragraph (c)(viii); and
(d)by deleting the full-stop at the end of sub-paragraph (ix) of sub-paragraph (c) and substituting the word “; or”, and by inserting immediately thereafter the following sub-paragraph:
(x)  any other person on or after 24th May 2007, provided that the transaction is cleared on or after that date through the SGX AsiaClear Facility by the Singapore Exchange Derivatives Clearing Limited.”.
Amendment of regulation 5
4.  Regulation 5 of the principal Regulations is amended —
(a)by deleting the word “and” at the end of paragraph (1)(b);
(b)by deleting the full-stop at the end of sub-paragraph (I) of paragraph (1)(c) and substituting a semi-colon, and by inserting immediately thereafter the following sub-paragraph:
(J)  a financial sector incentive company which is —
(JA)a bank licensed under the Banking Act (Cap. 19); or
(JB)a merchant bank approved under section 28 of the Monetary Authority of Singapore Act (Cap. 186).”;
(c)by deleting the full-stop at the end of sub-paragraph (c) of paragraph (1) and substituting the word “; and”; and by inserting immediately thereafter the following sub-paragraph:
(d)income derived on or after 24th May 2007 from trading in over the counter freight derivatives with any person, where the trade is cleared on or after that date through the SGX AsiaClear Facility by the Singapore Exchange Derivatives Clearing Limited.”;
(d)by deleting sub-paragraph (b) of paragraph (2) and substituting the following sub-paragraph:
(b)any income attributable to —
(i)storage in Singapore of the commodities specified by the Minister, or such person as he may appoint, under regulation 3(1); or
(ii)any activities carried out in Singapore which add value to such commodities by any physical alteration, addition or improvement (including refining, blending, processing or bulk-breaking).”; and
(e)by inserting, immediately after paragraph (2), the following paragraphs:
(3)  Subject to paragraph (4), where liquefied natural gas is a commodity specified by the Minister or such person as he may appoint in respect of any global trading company approved under regulation 3(1), tax shall be payable at the rate of 5% on any income derived during the period from 24th May 2007 to 23rd May 2017 (both dates inclusive) by the approved global trading company from qualifying transactions in liquefied natural gas.
(4)  Paragraph (3) shall not apply to any income attributable to —
(a)storage in Singapore of the liquefied natural gas; or
(b)any activities carried out in Singapore which add value to the liquefied natural gas by any physical alteration, addition or improvement (including refining, blending, processing or bulk-breaking).”.
Amendment of regulation 6
5.  Regulation 6(1) of the principal Regulations is amended by deleting sub-paragraph (c) and substituting the following sub-paragraph:
(c)the manner and extent to which income attributable to —
(i)storage in Singapore of the commodities specified by the Minister, or such person as he may appoint, under regulation 3(1); or
(ii)any activities carried out in Singapore which add value to such commodities by any physical alteration, addition or improvement (including refining, blending, processing or bulk-breaking),
should be excluded from the income referred to in regulation 5(1) and (3).”.
Amendment of First Schedule
6.  The First Schedule to the principal Regulations is amended by deleting the full-stop at the end of item 8, and by inserting immediately thereafter the following item:
9. Carbon credits
 
24th May 2007.
”.
[G.N. No. S 189/2008]
Made this 24th day of November 2009.
PETER ONG
Permanent Secretary,
Ministry of Finance,
Singapore.
[MF(R) 32.18.35 V23; AG/LEG/SL/134/2005/11 Vol. 1]