4.—(1) For the year of assessment 2016 and subsequent years of assessment, and subject to paragraphs (3) and (4), tax is payable at the rate of 10% on any income of an approved global trading company from —
(a)
profits from physical trading carried out by the company in the commodities specified for the company;
(b)
profits from commodity futures trading carried out —
(i)
by the company, where the company is a member of the exchange on which such trade is executed; or
(ii)
by a person executing the trade on behalf of the company, the person being a member of the exchange on which the trade is executed;
(c)
profits from trading in exchange‑traded freight derivatives, or any exchange‑traded specified derivative instrument on any exchange —
(i)
by the company, where the company is a member of the exchange; or
(ii)
by a person executing the trade on behalf of the company, the person being a member of the exchange;
(d)
profits from trading in over‑the‑counter commodity derivatives or over‑the‑counter specified derivative instruments carried out by the company with —
(i)
a specified entity;
(ii)
an Asian Currency Unit of a financial institution;
(iii)
a person who carries on the business of refining petroleum in Singapore;
(iv)
a financial sector incentive company which is a bank licensed under the Banking Act (Cap. 19) or a merchant bank approved under section 28 of the Monetary Authority of Singapore Act (Cap. 186); or
(v)
any other person, if the trade is cleared through the SGX AsiaClear Facility by the Singapore Exchange Derivatives Clearing Limited;
(e)
profits from trading in over‑the‑counter freight derivatives carried out by the company, with —
(i)
a specified entity;
(ii)
an Asian Currency Unit of a financial institution;
(iii)
a person who carries on the business of refining petroleum in Singapore;
(iv)
a shipping enterprise;
(v)
a financial sector incentive company which is a bank licensed under the Banking Act or a merchant bank approved under section 28 of the Monetary Authority of Singapore Act; or
(vi)
any other person, if the trade is cleared through the SGX AsiaClear Facility by the Singapore Exchange Derivatives Clearing Limited; and
(f)
commission and fees from acting as a broker in any physical trading in the commodities specified for the company, carried out —
(i)
between specified entities;
(ii)
between a specified entity and a person who carries on the business of refining petroleum in Singapore; or
(iii)
between persons who carry on the business of refining petroleum in Singapore.
(2) For the year of assessment 2016 and subsequent years of assessment, and subject to paragraphs (3) and (4), tax is payable at the rate of 5% on any income mentioned in paragraph (1) of an approved global trading company if the company satisfies the conditions imposed by the Minister or the appointed person for the purposes of this paragraph.
(3) Paragraphs (1) and (2) do not apply to any profits from physical trading carried out by an approved global trading company in any commodity specified for the company, that are attributable to —
(a)
storage in Singapore of that commodity; or
(b)
any activity carried out in Singapore which adds value to that commodity by any physical alteration, addition or improvement to that commodity (including refining, blending, processing or bulk‑breaking).
(4) Subject to paragraph (5), where liquefied natural gas is a commodity specified for an approved global trading company, then, for the year of assessment 2016 and subsequent years of assessment, tax is payable at the rate of 5% on any income of the company from profits from any qualifying transaction in liquefied natural gas.
(5) Paragraph (4) does not apply to profits from physical trading in liquefied natural gas, being income attributable to —
(a)
storage of liquefied natural gas in Singapore; or
(b)
any activity carried out in Singapore which adds value to the liquefied natural gas by any physical alteration, addition or improvement to it (including refining, blending, processing or bulk‑breaking).
(6) In paragraph (4), “qualifying transaction”, in relation to an approved global trading company, means —
(a)
physical trading carried out by the company;
(b)
commodity futures trading carried out —
(i)
by the company, where the company is a member of the exchange on which such trade is executed; or
(ii)
by a person executing the trade on behalf of the company, the person being a member of the exchange on which the trade is executed; or
(c)
trading in over-the-counter commodity derivatives carried out by the company with —
(i)
a specified entity;
(ii)
an Asian Currency Unit of a financial institution;
(iii)
a person who carries on the business of refining petroleum in Singapore;
(iv)
a financial sector incentive company which is a bank licensed under the Banking Act or a merchant bank approved under section 28 of the Monetary Authority of Singapore Act; or
(v)
any other person, if the trade is cleared through the SGX AsiaClear Facility by the Singapore Exchange Derivatives Clearing Limited.