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Amendments are not highlighted in legislation amended before 2012. We are working on it.
Formal Consolidation |  Amended S 213/2013
Concessionary rate of tax for income of approved marine hull and liability insurer
5B.—(1)  Tax shall be payable at the rate of 5% on the following income derived by an approved marine hull and liability insurer to which this regulation applies, during the basis period for a year of assessment:
(a)the underwriting income derived from carrying on marine hull and liability business; and
(b)the amount of income derived from carrying on marine hull and liability business ascertained by the formula —
FORMULA.jpg
where Pm
is the amount of the gross premiums received or receivable during the basis period in respect of policies underwritten by the approved marine hull and liability insurer in the course of carrying on its business in Singapore from its offshore marine hull and liability business;
Pn
is the amount of the gross premiums received or receivable during the basis period in respect of policies underwritten by the approved marine hull and liability insurer in the course of carrying on its business in Singapore from its marine hull and liability business (other than offshore marine hull and liability business);
Po
is the amount of the gross premiums received or receivable during the basis period in respect of policies underwritten by the approved marine hull and liability insurer in the course of carrying on its business in Singapore from its offshore general insurance business;
Pi
is the amount of the gross premiums received or receivable during the basis period in respect of policies underwritten by the approved marine hull and liability insurer in the course of carrying on its business in Singapore from its general insurance business (other than offshore general insurance business);
A
is the total amount of its income referred to in regulation 5(1)(b) derived during the basis period; and
B
is the total amount of —
(a)the dividends and interest it derived from outside Singapore;
(b)the gains or profits it realised from the sale of its offshore investments; and
(c)the interest from ACU deposits it derived,
during the basis period from —
(i)the investment of its insurance fund established and maintained under the Insurance Act (Cap. 142) for its general insurance business; and
(ii)the investment of its shareholders’ funds established in Singapore which are used to support its general insurance business,
where the reference to the amount of gains or profits realised by the approved marine hull and liability insurer from the sale of its offshore investments is a reference to the amount (after deducting losses from the gains or profits) realised during the basis period from the sale of offshore investments acquired by the approved marine hull and liability insurer less any expenses directly attributable to the production of such gains or profits allowable under the Act.
(2)  This regulation applies to an approved marine hull and liability insurer —
(a)who had, at any time before 19th February 2011, been approved as an approved marine hull and liability insurer under regulation 4 and the approval had since expired;
(b)who had been approved again as an approved marine hull and liability insurer under regulation 4 on or after 19th February 2011; and
(c)who does not satisfy the qualifying conditions which the Minister or such person as he may appoint imposes for the purposes of regulation 7.
(3)  Where the Comptroller is satisfied that any part of the insurance funds or shareholders’ funds of an approved marine hull and liability insurer is not required to support its marine hull and liability business, he may adopt such reduced amount of the income, dividends, interest and gains or profits (as the case may be) under the definitions of “A” and “B” in paragraph (1)(b) as appears to him to be reasonable in the circumstances.
[S 213/2013 wef 19/02/2011]
Informal Consolidation | Amended S 601/2017
Concessionary rate of tax for income of approved marine hull and liability insurer
5B.—(1)  Tax shall be payable at the rate of 5% on the following income derived by an approved marine hull and liability insurer to which this paragraph applies, during the basis period for a year of assessment:
(a)the underwriting income derived from carrying on marine hull and liability insurance and reinsurance business; and
[S 612/2017 wef 01/04/2016]
(b)the amount of income derived from carrying on marine hull and liability insurance and reinsurance business ascertained by the formula —
where Pm
is the amount of the gross premiums received or receivable during the basis period in respect of policies underwritten by the approved marine hull and liability insurer in the course of carrying on its business in Singapore from its offshore marine hull and liability insurance and reinsurance business;
Pn
is the amount of the gross premiums received or receivable during the basis period in respect of policies underwritten by the approved marine hull and liability insurer in the course of carrying on its business in Singapore from its marine hull and liability insurance and reinsurance business (other than offshore marine hull and liability insurance and reinsurance business);
Po
is the amount of the gross premiums received or receivable during the basis period in respect of policies underwritten by the approved marine hull and liability insurer in the course of carrying on its business in Singapore from its offshore general insurance business;
Pi
is the amount of the gross premiums received or receivable during the basis period in respect of policies underwritten by the approved marine hull and liability insurer in the course of carrying on its business in Singapore from its general insurance business (other than offshore general insurance business);
A
is the total amount of its income referred to in regulation 5(1)(b) derived during the basis period; and
B
is the total amount of —
(a)the dividends and interest it derived from outside Singapore;
(b)the gains or profits it realised from the sale of its offshore investments; and
(c)the interest from ACU deposits it derived,
during the basis period from —
(i)the investment of its insurance fund established and maintained under the Insurance Act (Cap. 142) for its general insurance business; and
(ii)the investment of its shareholders’ funds established in Singapore which are used to support its general insurance business,
where the reference to the amount of gains or profits realised by the approved marine hull and liability insurer from the sale of its offshore investments is a reference to the amount (after deducting losses from the gains or profits) realised during the basis period from the sale of offshore investments acquired by the approved marine hull and liability insurer less any expenses directly attributable to the production of such gains or profits allowable under the Act.
[S 601/2017 wef 01/04/2016]
[S 612/2017 wef 01/04/2016]
(2)  Paragraph (1) applies to an approved marine hull and liability insurer —
(a)who had, at any time before 19 February 2011, been approved as an approved marine hull and liability insurer under regulation 4 and the approval had since expired;
(b)who had been approved again as an approved marine hull and liability insurer under regulation 4 between 19 February 2011 and 31 March 2016 (both dates inclusive); and
(c)who does not satisfy the qualifying conditions which the Minister or such person as the Minister may appoint imposes for the purposes of regulation 7.
[S 601/2017 wef 01/04/2016]
(2A)  Tax is payable at the rate of 10% on the income specified in paragraph (1)(a) and (b) that is derived by an approved marine hull and liability insurer in a basis period for any year of assessment, if the insurer’s approval is granted between 1 April 2016 and 31 May 2017 (both dates inclusive).
[S 601/2017 wef 01/04/2016]
[S 612/2017 wef 01/06/2017]
(3)  Where the Comptroller is satisfied that any part of the insurance funds or shareholders’ funds of an approved marine hull and liability insurer is not required to support its marine hull and liability insurance and reinsurance business, he may adopt such reduced amount of the income, dividends, interest and gains or profits (as the case may be) under the definitions of “A” and “B” in paragraph (1)(b) as appears to him to be reasonable in the circumstances.
[S 213/2013 wef 19/02/2011]
[S 612/2017 wef 01/04/2016]
(4)  For the year of assessment 2012 and subsequent years of assessment, a reference in this regulation to interest includes a reference to qualifying return in lieu of interest.
[S 318/2016 wef 05/07/2016]