Concessionary rate of tax for income of approved insurance broker
5.—(1) Tax is payable at the rate of 10% on the commissions and fees derived by an approved insurance broker from the provision of either or both of the following services that do not relate to any insurance in paragraph (2):
(a)
insurance broking services;
(b)
advisory services.
[S 8/2019 wef 01/04/2018]
(2) For the purposes of paragraph (1), the insurance are —
(a)
an insurance under a direct stand‑alone policy; or
[S 8/2019 wef 01/04/2018]
(b)
an insurance against any risk underwritten by a direct life insurer in the course of carrying on its life business.
[S 8/2019 wef 01/04/2018]
(c)
[Deleted by S 8/2019 wef 01/04/2018]
(3) For the purposes of paragraph (1), the Comptroller must determine —
(a)
the income chargeable to tax under that paragraph having regard to such expenses, capital allowances and donations allowable under the Act as are, in the Comptroller’s opinion, to be deducted in ascertaining such income; and
(b)
the manner and extent to which any losses arising from the provision of the services to which that paragraph applies, may be deducted under section 37(3) of the Act in ascertaining the chargeable income of the approved insurance broker under that paragraph.
[S 8/2019 wef 01/04/2018]
(4) In paragraph (2)(a), “direct stand‑alone policy” means a direct insurance policy that a person purchases to cover one or more of the following risks (and not any other risk):