No. S 428
Income Tax Act
(Chapter 134)
Income Tax (Exemption of Interest and Other Payments for Economic and Technological Development) (No. 2) Notification 2000
In exercise of the powers conferred by section 13(4) of the Income Tax Act, the Minister for Finance hereby makes the following Notification:
Citation and commencement
1.  This Notification may be cited as the Income Tax (Exemption of Interest and Other Payments for Economic and Technological Development) (No. 2) Notification 2000 and shall be deemed to have come into operation on 25th February 2000.
Definitions
2.  In this Notification —
“financial guarantee insurance policy” means a policy that guarantees to the beneficiary of the policy the performance of a financial obligation in accordance with the terms of the obligation, including the right to receive scheduled payments in a trust certificate or other equity security but excludes letters of credit issued by licensed banks, performance bonds, fidelity bonds and such other similar contracts of guarantee as the Monetary Authority of Singapore may determine;
“financial guarantee insurer” means an insurer who is registered under the Insurance Act (Cap. 142) and who is permitted by his registration to carry on the business of issuing financial guarantee insurance policies.
Exemption
3.  There shall be exempt from tax any payment made under a financial guarantee insurance policy by a financial guarantee insurer where —
(a)the payment arises from a breach of any financial obligation the performance of which is covered under the policy; and
(b)the beneficial owner of the payment is —
(i)an individual who is not resident in Singapore; or
(ii)a person, other than an individual, who is neither a resident of nor a permanent establishment in Singapore.

Made this 26th day of September 2000.

LIM SIONG GUAN
Permanent Secretary,
Ministry of Finance,
Singapore.
[MF(R) R32.12.06 V16; AG/LEG/SL/134/97/3 Vol. 2]