Income Tax (Exemption of Interest and Other Payments for Economic and Technological Development) (No. 6) Notification 2009

Status:

Published in Subsidiary Legislation Supplement
on 22 Jan 2009

No. S 574

Income Tax Act

(Chapter 134)

Income Tax (Exemption of Interest and Other Payments for Economic and Technological Development) (No. 6) Notification 2009

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. 6) Notification 2009 and shall be deemed to have come into operation on 22nd January 2009.

Definitions

2.—(1) In this Notification —

“approved loan”, in relation to a financial sector incentive (headquarter services) company, means a loan or other arrangement similar in nature to a loan, approved for the purposes of paragraph 3 by the Minister, where —

(a)

the loan agreement takes effect during the period from 22nd January 2009 to 31st December 2013 (both dates inclusive);

(b)

the loan is denominated in a currency other than the Singapore dollar;

(c)

the loan is from —

(i)	any office or associated company outside Singapore of the financial sector incentive (headquarter services) company, which has been approved for the purposes of this Notification by the Minister or such person as he may appoint;
(ii)	any bank outside Singapore; or
(iii)	any non-bank financial institution outside Singapore which is not an office or associated company of the financial sector incentive (headquarter services) company; and

(d)

the funds obtained from the loan are used for any of the financial sector incentive (headquarter services) company’s approved services;

“approved services”, in relation to a financial sector incentive (headquarter services) company, means the services approved under regulation 5(1) of the Income Tax (Concessionary Rate of Tax for Financial Sector Incentive Companies) Regulations 2005 (G.N. No. S 735/2005);

“associated company”, in relation to a financial sector incentive (headquarter services) company, means a company —

(a)	the operations of which are or can be controlled, directly or indirectly, by that financial sector incentive (headquarter services) company;
(b)	which controls or can control, directly or indirectly, the operations of that financial sector incentive (headquarter services) company; or
(c)	the operations of which are or can be controlled, directly or indirectly, by a person or persons who control or can control, directly or indirectly, the operations of that financial sector incentive (headquarter services) company;

“financial sector incentive (headquarter services) company” means a company approved as such under section 43Q of the Act.

(2) For the purposes of sub-paragraph (1), a company shall be deemed to be an associated company in relation to a financial sector incentive (headquarter services) company if —

(a)	at least 25% of the total number of its issued shares are beneficially owned, directly or indirectly, by the financial sector incentive (headquarter services) company; or
(b)	at least 25% of the total number of the issued shares of the financial sector incentive (headquarter services) company are beneficially owned, directly or indirectly, by the first-mentioned company.

Exemption

3. There shall be exempt from tax the interest payable by a company for the time being approved as a financial sector incentive (headquarter services) company on an approved loan, subject to the conditions imposed by the Minister and notified to the financial sector incentive (headquarter services) company.

Made this 16th day of November 2009.

PETER ONG

Permanent Secretary,
Ministry of Finance,
Singapore.

[MOFR32.16.0057 Pt2 V10; AG/LEG/SL/134/2005/8 Vol. 3]

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