Income Tax (Concessionary Rate of Tax for Provision of Processing Services to Financial Institutions) Regulations 2005

Status:

Current version
as at 18 Nov 2024

Search within Legislation

Search Results

No. S 348

Income Tax Act

(Chapter 134)

Income Tax (Concessionary Rate of Tax for Provision of Processing Services to Financial Institutions) Regulations 2005

In exercise of the powers conferred by section 43R 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 Provision of Processing Services to Financial Institutions) Regulations 2005 and shall be deemed to have come into operation on 30th November 2004.

Definitions

2. In these Regulations —

“approved company” means a company in Singapore which is approved under section 43R of the Act;

“prescribed processing services” means any of the services specified in the Schedule provided in Singapore by an approved company.

Period of concession

3. The Minister, or such person as he may appoint, may approve any company for the purposes of section 43R of the Act for such period not exceeding 10 years as he may specify.

Concessionary rate of tax

4. Tax shall be payable at the rate of 5% on the income derived by an approved company on or after 27th February 2004 in respect of the provision of any prescribed processing services to —

(a)	any financial institution; or
(b)	another approved company.

Determination of income chargeable to tax

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

(a)	the income chargeable to tax of an approved 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 any prescribed processing services may be deducted under section 37(3) of the Act in ascertaining the chargeable income of the approved company.

Made this 31st day of May 2005.

LIM SIONG GUAN

Permanent Secretary,
Ministry of Finance,
Singapore.

[MF (R) 32.19.2873 V1; AG/LEG/SL/134/2005/3 Vol. 1]