Comparison View

Formal Consolidation |  Amended S 79/2009
Income of approved specialised insurer exempt from tax
7B.—(1)  There shall be exempt from tax the following income derived by an approved specialised 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 offshore qualifying specialised insurance business; and
(b)such part of the income referred to in regulation 5(1)(b) as is ascertained by the formula —
Ps
 
 
— —
X
B
Po
 
 
where
Ps
is the amount of the gross premiums received or receivable during the basis period in respect of policies for offshore qualifying specialised insurance risks underwritten by the approved specialised insurer;
 
Po
has the same meaning as in regulation 6(1); and
 
B
is the total amount of the income referred to in regulation 5(1)(b) of the approved specialised 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 specialised insurer (including one who is also an approved insurer) is not required to support the offshore qualifying specialised 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 01/09/2006]
Informal Consolidation | Amended S 492/2021
Income derived before 1 July 2021 of approved specialised insurer exempt from tax
7B.—(1)  There shall be exempt from tax the following income derived by an approved specialised insurer (including one who is also an approved insurer) in a basis period for any year of assessment and before 1 September 2016, if the insurer’s approval is granted before that date —
(a)the underwriting income derived from accepting offshore qualifying specialised insurance business; and
(b)such part of the income referred to in regulation 5(1)(b) as is ascertained by the formula —
where Ps  is the amount of the gross premiums received or receivable during the basis period in respect of policies for offshore qualifying specialised insurance risks underwritten by the approved specialised insurer;
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 specialised insurer; and
B  is the total amount of the income referred to in regulation 5(1)(b) of the approved specialised 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 601/2017 wef 01/04/2016]
(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 specialised insurer (including one who is also an approved insurer) is not required to support the offshore qualifying specialised 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]
(3)  For the purposes of paragraph (1)(b), a policy for risks arising from a natural catastrophe is to be regarded as a policy for offshore qualifying specialised insurance risks only if it is a catastrophe excess of loss policy, and the reference to offshore qualifying specialised insurance business in paragraph (2) is to be read accordingly.
[S 318/2016 wef 25/02/2013]
(4)  The income specified in regulation 5D(4)(a) and (b) derived before 1 July 2021 by an approved specialised insurer (including one who is also an approved insurer) in a basis period for any year of assessment and on or after 1 September 2016 is exempt from tax, if the insurer’s approval is granted before 1 September 2016.
[S 601/2017 wef 01/04/2016]
[S 492/2021 wef 01/07/2021]
(5)  For the purposes of paragraph (4), where the Comptroller is satisfied that any part of the insurance fund or shareholders’ funds of the approved specialised insurer (being the fund or funds mentioned in regulation 5(1)(b) the income in relation to which is used to determine the value of “A” in regulation 5B(1)(b) (as applied by paragraph (4) through the reference to regulation 5D(4)(b))) is not required to support the qualifying specialised insurance business of the insurer, the Comptroller may adopt such reduced amount of “A” as appears to the Comptroller to be reasonable in the circumstances.
[S 601/2017 wef 01/04/2016]
(6)  For the purposes of paragraph (4), where the Comptroller is satisfied that any part of the insurance fund or shareholders’ funds of the approved specialised insurer (being the fund or funds mentioned in the definition of “B” in regulation 5B(1)(b) (as applied by paragraph (4) through the reference to regulation 5D(4)(b))) is not required to support the qualifying specialised insurance business of the insurer, the Comptroller may adopt such reduced amount of “B” as appears to the Comptroller to be reasonable in the circumstances.
[S 601/2017 wef 01/04/2016]
(7)  For the purposes of the definitions of “Ps” and “Pt” in regulation 5D(4)(b)(ii) and (iii) (as applied by paragraph (4)), a policy for a risk arising from a natural catastrophe underwritten by the approved specialised insurer is regarded as a policy underwritten by the insurer in the course of carrying on its offshore qualifying specialised insurance business or qualifying specialised insurance business (other than offshore qualifying specialised insurance business), as the case may be, if and only if it is a catastrophe excess of loss policy.
[S 601/2017 wef 01/04/2016]
[S 492/2021 wef 01/07/2021]