Comparison View

Formal Consolidation |  Amended S 79/2009
Income of approved captive insurer exempt from tax
7A.—(1)  There shall be exempt from tax the following income derived by an approved captive insurer (including one who is also an approved insurer) for the basis period for any year of assessment —
(a)the underwriting income derived from accepting general insurance covering offshore risks (excluding amounts derived from policies covering third party offshore risks not underwritten in the course of, nor incidental to, its captive insurance business); and
(b)such part of the income referred to in regulation 5(1)(b) as is ascertained by the formula —
Pc
 
 
— —
X
A
Po
 
 
where
Pc
is the amount of the gross premiums received or receivable during the basis period in respect of policies covering offshore risks underwritten by the approved captive insurer in the course of carrying on its offshore captive insurance business in Singapore (excluding amounts received or receivable in respect of policies covering third party offshore risks not underwritten in the course of, nor incidental to, its captive insurance business);
 
Po
has the same meaning as in regulation 6(1); and
 
A
is the total amount of the income referred to in regulation 5(1)(b) of the approved captive insurer for the basis period less any expenses directly attributable to the production of such income allowable under the Act.
(2)  Where the Comptroller is satisfied that any part of the insurance fund or the shareholders’ funds referred to in regulation 5(1)(b) of the approved captive insurer (including one who is also an approved insurer) is not required to support the offshore captive insurance business of such insurer, he may adopt such reduced amount of income under paragraph (1)(b) as appears to him to be reasonable in the circumstances.
[S 79/2009 wef 17/02/2006]
Informal Consolidation | Amended S 492/2021
Income derived before 1 July 2021 of approved captive insurer exempt from tax
7A.—(1)  There shall be exempt from tax the following income derived by an approved captive insurer (including one who is also an approved insurer) whose approval is granted before 1 June 2017, in a basis period for any year of assessment that ends at any time before 5 August 2014:
(a)the underwriting income derived from accepting general insurance covering offshore risks (excluding amounts derived from policies covering third party offshore risks not underwritten in the course of, nor incidental to, its captive insurance business); and
(b)such part of the income referred to in regulation 5(1)(b) as is ascertained by the formula —
where Pc  is the amount of the gross premiums received or receivable during the basis period in respect of policies covering offshore risks underwritten by the approved captive insurer in the course of carrying on its offshore captive insurance business in Singapore (excluding amounts received or receivable in respect of policies covering third party offshore risks not underwritten in the course of, nor incidental to, its captive insurance business);
Po  has the same meaning as in regulation 5B(1), with the references to the approved marine hull and liability insurer therein modified to refer to the approved captive insurer; and
A  is the total amount of the income referred to in regulation 5(1)(b) of the approved captive insurer for the basis period less any expenses directly attributable to the production of such income allowable under the Act.
[S 213/2013 wef 19/02/2011]
[S 318/2016 wef 05/08/2014]
[S 601/2017 wef 01/04/2016]
[S 612/2017 wef 01/06/2017]
(1A)  The income in paragraph (1)(a) and (b), that is derived before 1 July 2021 by an approved captive insurer (including one who is also an approved insurer) whose approval is granted before 1 June 2017, in a basis period for any period of assessment other than one mentioned in paragraph (1), is exempt from tax if —
(a)in the case of a basis period that commences on or after 5 August 2014, the requirement in paragraph (1B) is satisfied at all times during that basis period; and
(b)in the case of a basis period in which 5 August 2014 falls (but not one whose commencement date is that date), the requirement in paragraph (1B) is satisfied at all times between 5 August 2014 and the last day of that basis period (both dates inclusive).
[S 318/2016 wef 05/08/2014]
[S 601/2017 wef 01/04/2016]
[S 612/2017 wef 01/06/2017]
[S 492/2021 wef 01/07/2021]
(1B)  The requirement mentioned in paragraph (1A) is that all the functions in the following sub-paragraphs are undertaken by the approved captive insurer, by a company incorporated in Singapore, or by personnel located in Singapore who are employed by a company incorporated outside Singapore:
(a)either or both of the following:
(i)ensuring compliance with any requirement or any direction, notice or other document issued under the Insurance Act;
(ii)ensuring compliance with any requirement or any direction, notice or other document issued under the Monetary Authority of Singapore Act;
(b)ensuring compliance with any requirement relating to financial accounting, auditing and reporting under the Companies Act;
(c)the day-to-day management of the approved captive insurer’s business.
[S 601/2017 wef 26/10/2017]
[S 318/2016 wef 05/08/2014]
(2)  Where the Comptroller is satisfied that any part of the insurance fund or the shareholders’ funds referred to in regulation 5(1)(b) of the approved captive insurer (including one who is also an approved insurer) is not required to support the offshore captive insurance business of such insurer, he may adopt such reduced amount of income under paragraph (1)(b) as appears to him to be reasonable in the circumstances.
[S 79/2009 wef 17/02/2006]
[S 492/2021 wef 01/07/2021]