Income Tax (Concessionary Rate of Tax or Exemption for Income Derived from Debt Securities) (Amendment) Regulations 2005

No. S 349

Income Tax Act

(Chapter 134)

Income Tax (Concessionary Rate of Tax or Exemption for Income Derived from Debt Securities) (Amendment) Regulations 2005

In exercise of the powers conferred by section 43N 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 or Exemption for Income Derived from Debt Securities) (Amendment) Regulations 2005.

(2) Regulations 2, 3 (a) and 5 shall be deemed to have come into operation on 1st January 2004.

(3) Regulations 3 (b) and (d), 4 and 6 (a) shall be deemed to have come into operation on 3rd December 2003.

(4) Regulations 3 (c) and 6 (b) shall be deemed to have come into operation on 27th February 2004.

Amendment of regulation 2

2. Regulation 2 of the Income Tax (Concessionary Rate of Tax or Exemption for Income Derived from Debt Securities) Regulations (Rg 32) (referred to in these Regulations as the principal Regulations) is amended by deleting the words “section 13 (11)” in the definitions of “financial institution” and “qualifying debt securities” and substituting the words “section 13 (16)”.

Amendment of regulation 3

3. Regulation 3 of the principal Regulations is amended —

(a)

by deleting the words “section 43N(1A)” in paragraph (aa) and substituting the words “section 43N(2)”;

(b)

by deleting the words “27th February 2003” in paragraph (aa) and substituting the words “31st December 2008”; and

(c)

by inserting, immediately after paragraph (aa), the following paragraph:

“(ab)

subject to section 43N(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 mature within one year from the date of issue, and issued during the period from 27th February 2004 to 31st December 2008;”; and

(d)

by deleting the words “27th February 2003” in paragraphs (b) and (c) and substituting in each case the words “31st December 2003”.

Amendment of regulation 4

4. Regulation 4 of the principal Regulations is amended —

(a)

by deleting the words “on or after 26th April 1999 from arranging, underwriting and distributing any qualifying debt securities issued during the period from 26th April 1999 to 27th February 2003” in paragraph (aa) and substituting the words “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

(b)

by deleting the words “27th February 2003” in paragraph (b) and substituting the words “27th February 2008”.

Amendment of regulation 5

5. Regulation 5 of the principal Regulations is amended by deleting the words “section 37 (2)” in paragraph (b) and substituting the words “section 37 (3)”.

Deletion, substitution and amendment of regulation 7

6. The principal Regulations are amended —

(a)

by deleting regulation 7 and substituting the following regulation:

“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 26th April 1999 to 31st December 2008, 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.

(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.”; and

(b)

by inserting, immediately after paragraph (1) of regulation 7, the following paragraph:

“(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 27th February 2004 to 31st December 2008, 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.”.

[G.N. No. S 214/2001]

Made this 31st day of May 2005.

LIM SIONG GUAN

Permanent Secretary,
Ministry of Finance,
Singapore.

[MF (R) 32.19.2871 V3; AG/LEG/SL/134/2005/1 Vol. 1]

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