Income Tax (Concessionary Rate of Tax for Income Derived from Securities Lending or Repurchase Arrangements) Regulations 2006

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No. S 259

Income Tax Act

(Chapter 134)

Income Tax
(Concessionary Rate of Tax for Income Derived from Securities Lending or Repurchase Arrangements) Regulations 2006

In exercise of the powers conferred by section 43T of the Income Tax Act, the Minister for Finance hereby makes the following Regulations:

Citation and commencement

1. These Regulations may be cited as the Income Tax (Concessionary Rate of Tax for Income Derived from Securities Lending or Repurchase Arrangements) Regulations 2006 and shall be deemed to have come into operation on 18th February 2005.

Definitions

2. In these Regulations ––

“qualifying securities lending or repurchase company” has the same meaning as in section 43T of the Act;

“securities lending or repurchase arrangement” has the same meaning as in section 10N of the Act.

Concessionary rate of tax

3.—(1) Tax shall be payable at the rate of 10% on the income derived by a qualifying securities lending or repurchase company on or after 18th February 2005 but before 1st January 2009, from ––

(a)	granting under a securities lending or repurchase arrangement of any loan of any debt and equity securities, except stock and shares of any company resident in Singapore which are not listed on a stock exchange in Singapore or elsewhere; or
(b)	arranging under a securities lending or repurchase arrangement of any loan of any debt and equity securities, except stock and shares of any company resident in Singapore which are not listed on a stock exchange in Singapore or elsewhere.

(2) The rate of tax of 10% referred to in paragraph (1) shall not apply to any dividend derived from Singapore from which tax is deducted or deductible under section 44 of the Act.

Determination of income chargeable to tax

4. For the purposes of regulation 3, the Comptroller shall determine —

(a)	the income chargeable to tax of a qualifying securities lending or repurchase company having regard to such expenses, capital allowances and donations allowable under the Act as are, in his opinion, to be deducted in ascertaining such income; and
(b)	the manner and extent to which any losses arising from the income specified in regulation 3 may be deducted under the Act in ascertaining the chargeable income of the qualifying securities lending or repurchase company.

Made this 8th day of May 2006.

LIM SIONG GUAN

Permanent Secretary,
Ministry of Finance,
Singapore.

[MF(R) 32.19.18 V5; AG/LEG/SL/134/2005/19 Vol. 1]

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