Concessionary rate of tax for approved insurer
5.—(1)  Tax shall be payable at the rate of 10% on the following income derived by an approved insurer:
(a)the income derived from accepting general insurance covering offshore risks and reinsurance covering offshore risks;
(b)the income from insurance funds established and maintained for offshore life policies computed in accordance with section 26(7)(a)(i) of the Act (but excluding the investment income and gains or profits derived from the sale of investments and other income, whether derived from Singapore or elsewhere, of any life insurance fund established under the Insurance Act relating to offshore life policies); and
[S 80/2009 wef 17/02/2008]
(c)the dividends and interest derived from outside Singapore, the gains or profits realised from the sale of offshore investments, and interest from ACU deposits derived from —
(i)subject to paragraph (2), the investment of its insurance fund established and maintained under the Insurance Act (Cap. 142) for the offshore general insurance business or offshore life business; and
(ii)the investment of its shareholders’ funds established in Singapore which are used to support the offshore general insurance business or offshore life business as ascertained under regulation 6.
[S 80/2009, wef Y/A 2005 & Sub Ys/A]
[S 212/2013 wef 19/02/2011]
(2)  Where the Comptroller is satisfied that any part of the insurance fund referred to in sub-paragraph (c)(i) of paragraph (1) is not required to support the offshore general insurance business or offshore life business of an approved insurer, he may adopt such reduced amount of the dividends, interest and gains or profits under that sub-paragraph as appears to him to be reasonable in the circumstances.
[S 80/2009, wef Y/A 2005 & Sub Ys/A]
[S 747/2010 wef 01/04/2008]