Income Tax (Concessionary Rate of Tax for Asian Currency Unit Income) (Amendment) Regulations 2003

Status:

Published in Subsidiary Legislation Supplement
on 30 Dec 2003

No. S 642

Income Tax Act

(Chapter 134)

Income Tax (Concessionary Rate of Tax for Asian Currency Unit Income) (Amendment) Regulations 2003

In exercise of the powers conferred by section 43A of the Income Tax Act, the Minister for Finance hereby makes the following Regulations:

Citation and commencement

1.—(1) These Regulations may be cited as the Income Tax (Concessionary Rate of Tax for Asian Currency Unit Income) (Amendment) Regulations 2003.

(2) Regulations 2 (a) (in relation to the definition of “Approved Securities Company”) and (b) (in relation to the definition of “Equity Capital Market Intermediary”), 3, 4, 6, 7 and 8 shall have effect for the year of assessment 2003 and subsequent years of assessment.

(3) Regulation 2(a) (in relation to the definition of “designated investments”) and (c) shall be deemed to have come into operation on 3rd May 2002.

(4) Regulations 2 (b) (in relation to the definitions of “designated securities” and “financial derivatives”) and 5 shall be deemed to have come into operation on 20th May 2002.

Amendment of regulation 2

2. Regulation 2 of the Income Tax (Concessionary Rate of Tax for Asian Currency Unit Income) Regulations (Rg 10) (referred to in these Regulations as the principal Regulations) is amended —

(a)

by deleting the definitions of “approved securities company” and “designated investments” and substituting the following definitions:

“ “Approved Securities Company” has the same meaning as in the Income Tax (Concessionary Rate of Tax for Derivatives Activities) Regulations 2003 (G.N. No. S 637/2003);

“designated investments” has the same meaning as in the Income Tax (Income from Funds Managed for Foreign Investors) Regulations 2003 (G.N. No. S 640/2003);”;

(b)

by inserting, immediately after the definition of “designated person”, the following definitions:

“ “designated securities” has the same meaning as in the Income Tax (Income from Funds Managed for Foreign Investors) Regulations 2003 (G.N. No. S 640/2003);

“Equity Capital Market Intermediary” has the same meaning as in the Income Tax (Concessionary Rate of Tax for Equity Capital Market Intermediary) Regulations 2003 (G.N. No. S 638/2003);

“financial derivatives” has the same meaning as in the Income Tax (Concessionary Rate of Tax for Derivatives Activities) Regulations 2003 (G.N. No. S 637/2003);”; and

(c)

by deleting the words “the approved Asian Currency Unit” in paragraph (a) of the definition of “foreign investor” and substituting the words “a fund manager in Singapore”.

Amendment of regulation 3

3. Regulation 3 of the principal Regulations is amended —

(a)

by inserting, immediately after the word “Singapore” in paragraph (g), the words “, excluding corporate advisory services”;

(b)

by deleting paragraphs (k), (m), (p) and (t);

(c)

by deleting paragraph (u) and substituting the following paragraph:

“(u)	subject to regulation 9, arranging on behalf of foreign investors any loan of designated securities under a securities lending arrangement in writing to an Equity Capital Market Intermediary approved for securities trading or securities lending activities;”;

(d)

by deleting paragraphs (v), (w) and (x);

(e)

by deleting the words “paragraphs (a) to (x)” in paragraph (y) and substituting the words “paragraphs (a) to (u)”;

(f)

by deleting the word “or” at the end of paragraph (y)(ii);

(g)

by inserting, at the end of paragraph (y)(iii), the word “or”;

(h)

by inserting, immediately after sub-paragraph (iii) of paragraph (y), the following sub-paragraph:

“(iv)

an Approved Securities Company;”;

(i)

by deleting the word “or” at the end of paragraph (z)(ii); and

(j)

by deleting the full-stop at the end of sub-paragraph (iii) of paragraph (z) and substituting the word “; or”, and by inserting immediately thereafter the following sub-paragraph:

“(iv)

an Approved Securities Company.”.

Amendment of regulation 6

4. Regulation 6 (1) of the principal Regulations is amended —

(a)	by inserting, immediately before the words “regulation 3 (k)” in sub-paragraph (b)(i), the word “deleted”; and
(b)	by inserting, immediately before the words “regulation 3(p)” in sub-paragraph (b)(ii), the word “deleted”.

Deletion and substitution of regulation 7

5. Regulation 7 of the principal Regulations is deleted and the following regulation substituted therefor:

“5% tax payable on income derived by Asian Currency Unit approved as Approved Derivatives Trader

7.—(1) Notwithstanding regulation 3, tax shall be payable at the rate of 5% on income derived by an Asian Currency Unit of a financial institution which has been approved as an Approved Derivatives Trader during the period from 20th May 2002 to 31st December 2003 (both dates inclusive) by the Minister or such person as he may appoint, from —

(a)

services as an intermediary in connection with transactions relating to over-the-counter financial derivatives in currencies other than Singapore dollars for —

(i)	an Asian Currency Unit of another financial institution;
(ii)	a person who is neither resident in Singapore nor a permanent establishment in Singapore;
(iii)	a branch office outside Singapore of a company resident in Singapore; or
(iv)	an Approved Securities Company; and

(b)

trading in over-the-counter financial derivatives in currencies other than Singapore dollars with —

(i)	an Asian Currency Unit of another financial institution;
(ii)	a person who is neither resident in Singapore nor a permanent establishment in Singapore;
(iii)	a branch office outside Singapore of a company resident in Singapore; or
(iv)	an Approved Securities Company.

(2) The 5% tax rate shall apply for such period not exceeding 5 years as the Minister, or such person as he may appoint, may specify.”.

Amendment of regulation 8

6. Regulation 8 (2) of the principal Regulations is amended by inserting, immediately after the words “Regulation 3 (k)”, the words “(in force immediately before the year of assessment 2003)”.

Amendment of regulation 10

7. Regulation 10 (2) of the principal Regulations is amended —

(a)	by inserting, immediately after the words “regulation 3 (w)”, the words “(in force immediately before the year of assessment 2003)”; and
(b)	by inserting, immediately after the words “Income Tax (Concessionary Rate of Tax for Approved Securities Companies) Regulations (Rg 9)”, the words “(in force immediately before the year of assessment 2003)”.

Amendment of regulation 11

8. Regulation 11 (1) of the principal Regulations is amended by deleting the words “regulation 3 (k), (m), (n), (o), (p), (u) and (x)” and substituting the words “regulation 3 (k), (m), (p) and (x) (in force immediately before the year of assessment 2003) and regulation 3(n), (o) and (u)”.

Made this 29th day of December 2003.

LIM SIONG GUAN

Permanent Secretary,
Ministry of Finance,
Singapore.

[R32.19.2420 Vol. 2; AG/LEG/SL/134/2002/5 Vol. 1]

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