Income Tax (Concessionary Rate of Tax for Approved Headquarters Company) Regulations

Income Tax Act

(CHAPTER 134, Section 43E)

Income Tax (Concessionary Rate of
Tax for Approved Headquarters Company) Regulations

Rg 6

G.N. No. S 43/1988

REVISED EDITION 1990

(25th March 1992)

[4th March 1988]

Citation

1. These Regulations may be cited as the Income Tax (Concessionary Rate of Tax for Approved Headquarters Company) Regulations.

Approved headquarters company

2.—(1) The Minister may approve any headquarters company for the purposes of section 43E of the Act for such period not exceeding 10 years as he may specify.

(2) The Minister may in any particular case extend the period so specified for such further periods, not exceeding 10 years at any one time, as he thinks fit.

Concessionary rate of tax

3.—(1) Tax shall be payable at the rate of 10% on the income of an approved headquarters company derived by it from the provision of qualifying services which have been approved under section 43E (2) of the Act.

(2) Paragraph (1) shall apply in relation to an approved headquarters company from such date as the Minister may specify.

Definitions

4. For the purposes of regulation 3, “qualifying services” means —

(a)

the following services provided by an approved headquarters company to its offices, associated companies and other persons where such offices, associated companies and persons are outside Singapore and have been approved under section 43E (2) of the Act:

(i)	general management and administration;
(ii)	business planning;
(iii)	procurement of raw materials and components for use in the business of its approved offices and associated companies and other approved persons;
(iv)	technical support services;
(v)	marketing control and sales promotion planning;
(vi)	training and personnel management;
(vii)	treasury and fund management;
(viii)	corporate finance advisory services;
(ix)	economic or investment research and analysis; and
(x)	credit control and administration;

(b)

the provision of credit facilities to its approved offices and associated companies outside Singapore where the funds for providing the facilities were obtained from financial institutions in Singapore; and

(c)

research and development work carried out in Singapore on behalf of its approved offices and associated companies outside Singapore.

Determination of income chargeable to tax

5. For the purposes of regulation 3, the Comptroller shall determine —

(a)	the income chargeable to tax of an approved headquarters company having regard to such expenses, capital allowances and donations allowable under the Act as are, in his opinion, to be deducted in ascertaining such income; and
(b)	the manner and extent to which any losses arising from the activities specified in that regulation may be deducted under section 37(2) of the Act in ascertaining the chargeable income of the approved headquarters company.

[G.N. No. S 43/88]

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