2. Regulation 2 of the Income Tax (Concessionary Rate of Tax for Financial Sector Incentive Companies) Regulations 2005 (G.N. No. S 735/2005) (referred to in these Regulations as the principal Regulations) is amended —| (a) | by deleting the words “Income Tax (Income from Funds Managed for Foreign Investors) Regulations 2003 (G.N. No. S 640/2003)” in the definition of ““designated investments” and “designated person”” in paragraph (1) and substituting the words “Income Tax (Exemption of Income of Non-residents Arising From Funds Managed by Fund Manager in Singapore) Regulations 2010 (G.N. No. S 6/2010)”; | | (b) | by inserting, immediately after the definition of “financial sector incentive (credit facilities syndication) company” in paragraph (1), the following definition:| “ “financial sector incentive (debt capital market) company” means a company approved as such under section 43Q of the Act;”; |
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| | (c) | by inserting, immediately after the definition of “financial sector incentive (headquarter services) company” in paragraph (1), the following definition:| “ “financial sector incentive (Islamic finance) company” means a company approved as such under section 43Q of the Act;”; |
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| | (d) | by inserting, immediately after the words “derivatives of a buy-sell nature” in the definition of “issued securities” in paragraph (1), the words “for funding purpose”; | | (e) | by deleting the definition of ““offshore credit facility” and “offshore guarantee facility”” in paragraph (1) and substituting the following definitions:“ “non-qualifying investor”, in relation to a prescribed person or an approved company as at the last day of its basis period for any year of assessment, means —| (a) | a relevant owner referred to in section 13CA or 13R of the Act, as the case may be; | | (b) | a relevant beneficiary referred to in section 13CA of the Act; or | | (c) | a person referred to in section 13CA(6) or 13R(5) of the Act that has equity interest in the prescribed person or approved company, as the case may be, |
| who is liable to pay a penalty as determined in accordance with section 13CA or 13R of the Act as the case may be, which is based on the income of the prescribed person or approved company for its basis period relating to the same year of assessment; |
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“offshore credit facility” means —| (a) | any facility where —| (i) | loans, advances or funds are made available to a person referred to in paragraph (a) of the definition of “specified person”; | | (ii) | the loans, advances or funds made available are to be used outside Singapore; and | | (iii) | no interest, commission, fee or other payment in respect of the facility is borne, directly or indirectly, by any person resident in Singapore (except in respect of any business carried on outside Singapore by a person resident in Singapore through a permanent establishment outside Singapore) or by any permanent establishment in Singapore; |
| | (b) | any facility where —| (i) | loans, advances or funds are made available to a person referred to in paragraph (b) of the definition of “specified person”; | | (ii) | the loans, advances or funds made available are to be used outside Singapore; and | | (iii) | no interest, commission, fee or other payment in respect of the facility is deductible against any income of that person accruing in or derived from Singapore; |
| | (c) | any facility where —| (i) | guarantees or letters of credit are made available to, and issued in favour of, a non-resident person (other than his permanent establishment in Singapore) or a person resident in Singapore in respect of any business carried on outside Singapore through a permanent establishment outside Singapore; and | | (ii) | no interest, commission, fee or other payment in respect of the facility is borne, directly or indirectly, by any person resident in Singapore (except in respect of any business carried on outside Singapore by a person resident in Singapore through a permanent establishment outside Singapore) or by any permanent establishment in Singapore; |
| | (d) | any facility where —| (i) | the issue of bonds, notes, certificates of deposit or other instruments of indebtedness is provided to a person referred to in paragraph (a) of the definition of “specified person”; | | (ii) | the funds raised from the issue of such bonds, notes, certificates of deposit or other instruments of indebtedness are to be used outside Singapore; and | | (iii) | no interest, commission, fee or other payment in respect of the facility is borne, directly or indirectly, by any person resident in Singapore (except in respect of any business carried on outside Singapore by a person resident in Singapore through a permanent establishment outside Singapore) or by any permanent establishment in Singapore; or |
| | (e) | any facility where —| (i) | the issue of bonds, notes, certificates of deposit or other instruments of indebtedness is provided to a person referred to in paragraph (b) of the definition of “specified person”; | | (ii) | the funds raised from the issue of such bonds, notes, certificates of deposit or other instruments of indebtedness are to be used outside Singapore; and | | (iii) | no interest, commission, fee or other payment in respect of the facility is deductible against any income of that person accruing in or derived from Singapore; |
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“offshore guarantee facility” means any facility where —| (a) | guarantees or letters of credit are made available to and issued in favour of 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), for the purpose of providing or participating in a loan made to a non-resident person (other than his permanent establishment in Singapore); | | (b) | the loan is to be used outside Singapore; and | | (c) | no interest in respect of the loan is borne, directly or indirectly, by any person resident in Singapore (except in respect of any business carried on outside Singapore by a person resident in Singapore through a permanent establishment outside Singapore) or by any permanent establishment in Singapore;”; |
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| | (f) | by inserting, immediately after the definition of “prescribed asset or project” in paragraph (1), the following definitions:| “ “prescribed person” means a person prescribed in regulation 2 of the Income Tax (Exemption of Income of Non-residents Arising From Funds Managed by Fund Manager in Singapore) Regulations 2010 (G.N. No. S 6/2010) to which tax exemption under section 13CA of the Act applies; |
| “prescribed trust fund” means a trust fund prescribed in the Income Tax (Exemption of Income of Trustee of Trust Fund Arising from Funds Managed by Fund Manager in Singapore) Regulations 2010 (G.N. No. S 7/2010);”; |
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| | (g) | by inserting, immediately after the definition of “qualifying project loan” in paragraph (1), the following definition:“ “related party”, in relation to any specified person, means any other person who —| (a) | controls the specified person, whether directly or indirectly; | | (b) | is controlled by the specified person, whether directly or indirectly; or | | (c) | together with the specified person, is controlled by a common person, whether directly or indirectly;”; |
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| | (h) | by inserting, immediately after the definition of “securities lending or repurchase arrangement” in paragraph (1), the following definition:“ “specified person”, in relation to any offshore credit facility, means —| (a) | a non-resident person (other than his permanent establishment in Singapore) or a permanent establishment outside Singapore of a person resident in Singapore in respect of any business carried on outside Singapore through that permanent establishment; and | | (b) | a person resident in Singapore (except in respect of any business carried on outside Singapore by a person resident in Singapore through a permanent establishment outside Singapore) or a permanent establishment in Singapore;”; and |
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| | (i) | by inserting, immediately after the words “derivatives of a buy-sell nature” in paragraph (3)(b), the words “for funding purpose”. |
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