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Amendments are not highlighted in legislation amended before 2012. We are working on it.
Formal Consolidation |  Amended S 81/2009
Income of approved captive insurer exempt from tax
5A.—(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)income derived from accepting offshore life insurance as computed in accordance with section 26(7)(a)(i) of the Act, excluding —
(i)amounts derived from offshore life policies covering third parties which are not underwritten in the course of, nor incidental to, its captive insurance business; and
(ii)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 (Cap. 142) relating to offshore life policies;
(b)such part of the income referred to in regulation 4(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 offshore life policies 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 offshore life policies covering third parties which are not underwritten in the course of, nor incidental to, its captive insurance business);
 
Po
has the same meaning as in regulation 5(1); and
 
A
is the total amount of the income referred to in regulation 4(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 4(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 the income under paragraph (1)(b) as appears to him to be reasonable in the circumstances.
[S 81/2009 wef 17/02/2006]
Informal Consolidation | Amended S 320/2016
Income of approved captive insurer exempt from tax
5A.—(1)  There shall be exempt from tax the following income derived by an approved captive insurer (including one who is also an approved insurer) in a basis period for any year of assessment that ends at any time before 5 August 2014:
(a)income derived from accepting offshore life insurance as computed in accordance with section 26(7)(a)(i) of the Act, excluding —
(i)amounts derived from offshore life policies covering third parties which are not underwritten in the course of, nor incidental to, its captive insurance business; and
(ii)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 (Cap. 142) relating to offshore life policies;
[S 81/2009 wef Y/A 2005 & Sub Ys/A:2009-SL-134-RG-81]
(b)such part of the income referred to in regulation 4(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 offshore life policies 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 offshore life policies covering third parties which are not underwritten in the course of, nor incidental to, its captive insurance business);
Po
has the same meaning as in regulation 5(1), with the reference to the approved insurer in that provision modified to refer to the approved captive insurer; and
A
is the total amount of the income referred to in regulation 4(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 320/2016 wef 19/02/2011]
[S 320/2016 wef 05/08/2014]
(1A)  The income mentioned in paragraph (1)(a) and (b), that is derived by an approved captive insurer (including one who is also an approved insurer) in a basis period for any year 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; or
(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 320/2016 wef 05/08/2014]
(1B)  The requirement mentioned in paragraph (1A) is that at least one aspect of each of the following functions of the approved captive insurer is undertaken by a company incorporated in Singapore, or by personnel located in Singapore who are employed by a company incorporated outside Singapore:
(a)compliance with any requirement, and with any direction, notice or other document issued, under the Insurance Act and the Monetary Authority of Singapore Act;
(b)compliance with any requirement relating to financial accounting, auditing and reporting;
(c)the day to day management of the captive insurer’s business.
[S 320/2016 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 4(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 the income under paragraph (1)(b) as appears to him to be reasonable in the circumstances.
[S 81/2009 wef 17/02/2006]