13.5% tax payable on qualifying income of financial sector incentive (standard tier) company
5.—(1) Tax is payable at the rate of 13.5% on the following income of a financial sector incentive (standard tier) company:
(a)
income from any of the activities specified in the First Schedule;
(b)
interest from any deposit held by the company as a corporate futures member as a margin for any transaction in relation to any activity mentioned in paragraph 1(e), (g) or (h) of the First Schedule.
[S 111/2019 wef 01/06/2017]
(2) Unless the Minister or approving authority otherwise determines, paragraph (1) does not apply to the following income in the circumstances mentioned in paragraph (3):
(a)
any interest derived from qualifying debt securities issued during the period from 10 May 1999 to 31 December 2023 (both dates inclusive);
[S 111/2019 wef 01/01/2019]
(b)
any discount from qualifying debt securities issued during the period from 17 February 2006 to 31 December 2023 (both dates inclusive);
[S 111/2019 wef 01/01/2019]
(c)
any amount payable from Islamic debt securities which are qualifying debt securities, and issued during the period from 1 January 2005 to 31 December 2023 (both dates inclusive);
[S 111/2019 wef 01/01/2019]
(d)
any prepayment fee, redemption premium or break cost from qualifying debt securities issued during the period from 15 February 2007 to 31 December 2023 (both dates inclusive).
[S 111/2019 wef 01/01/2019]
(3) The circumstances mentioned in paragraph (2) are —
(a)
50% or more of those securities which are outstanding at any time during the life of the issue is beneficially held or funded, directly or indirectly, by related parties of the issuer of those securities; and
(b)
either —
(i)
the financial sector incentive (standard tier) company is a related party of the issuer of those securities; or
(ii)
the funds used by the financial sector incentive (standard tier) company to acquire those securities are obtained, directly or indirectly, from any related party of the issuer of those securities.
(4) Paragraph (1) does not apply to any income derived by a financial sector incentive (standard tier) company from any qualifying debt securities issued during the applicable period mentioned in paragraph (2), if the issuer of such securities, or such other person as the Monetary Authority of Singapore may direct, has not furnished to the Monetary Authority of Singapore in respect of the issue of those securities —
(a)
a return on those securities within such period as the Monetary Authority of Singapore may specify; and
(b)
such other particulars in connection with those securities as the Monetary Authority of Singapore may require.
(5) In this regulation, “break cost”, “prepayment fee”, “redemption premium” and “related party” have the same meanings as in section 13(16) of the Act.