8.—(1) Subject to this regulation, tax is payable at the rate of 10% on the income mentioned in paragraph (2) derived by an approved insurer in a basis period for any year of assessment.
(2) For the purposes of paragraph (1), the income is —
(a)
underwriting income derived from the insurer’s general business in Singapore (excluding specified general business);
(b)
the part of A that is ascertained by the formula
(c)
the part of B that is ascertained by the formula and
(d)
the part of C that is ascertained by the formula
(3) In paragraph (2) —
“A” is the total amount of the following income of the approved insurer (excluding excluded income) derived in the basis period:
(a)
dividends and qualifying interest derived from the investment of its insurance fund established and maintained under the Insurance Act 1966 for its offshore general business in Singapore;
[S 942/2022 wef 31/12/2021]
(b)
gains or profits from the sale of qualifying investments acquired using such insurance fund,
less any expenses incurred in the production of such income for which a deduction is allowed under the Act;
“B” is the total amount of the following income of the approved insurer (excluding excluded income) derived in the basis period:
(a)
dividends and qualifying interest derived from the investment of its insurance fund established and maintained under the Insurance Act 1966 for its general business in Singapore (other than offshore general business);
[S 942/2022 wef 31/12/2021]
(b)
gains or profits from the sale of qualifying investments acquired using such insurance fund,
less any expenses incurred in the production of such income for which a deduction is allowed under the Act;
“C” is the total amount of the following income of the approved insurer (excluding excluded income) derived in the basis period:
(a)
dividends and qualifying interest derived from the investment of its shareholders’ fund established in Singapore and used to support its general business in Singapore;
(b)
gains or profits from the sale of qualifying investments acquired using such shareholders’ fund,
less any expenses incurred in the production of such income for which a deduction is allowed under the Act;
“Pig” is the total amount of the gross premiums received or receivable in the basis period in respect of all policies underwritten by the approved insurer in the course of carrying on its general business in Singapore (other than offshore general business);
“Pigx” is the total amount of gross premiums received or receivable in the basis period in respect of all policies underwritten by the approved insurer in the course of carrying on its general business in Singapore (other than offshore general business), excluding direct stand‑alone policies;
“Pog” is the total amount of gross premiums received or receivable in the basis period in respect of all policies underwritten by the approved insurer in the course of carrying on its offshore general business in Singapore;
“Pogx” is the total amount of gross premiums received or receivable in the basis period in respect of all policies underwritten by the approved insurer in the course of carrying on its offshore general business in Singapore, excluding direct stand‑alone policies;
“excluded income” means any income derived in the basis period from any investment in, or the sale of, any stock, share or other securities of a company that —
(a)
is in the business of trading or holding —
(i)
prescribed assets or projects, and other immovable property; or
(ii)
immovable properties other than prescribed assets or projects;
(b)
is not in the business of property development; and
(c)
is not listed on a stock exchange in Singapore or elsewhere.
(4) Where the approved insurer is also an approved captive insurer, the reference to gross premiums in the definitions of “Pigx” and “Pogx” in paragraph (3) excludes the gross premiums received or receivable in the basis period in respect of all policies underwritten by the approved insurer in the course of carrying on its captive general business in Singapore.
(5) Where the approved insurer is also an approved marine hull and liability insurer, the reference to gross premiums in the definitions of “Pigx” and “Pogx” in paragraph (3) excludes the gross premiums received or receivable in the basis period in respect of all policies underwritten by the approved insurer in the course of carrying on its marine hull and liability insurance and reinsurance business in Singapore.
(6) Where the approved insurer is also an approved specialised insurer, the reference to gross premiums in the definitions of “Pigx” and “Pogx” in paragraph (3) excludes the gross premiums received or receivable in the basis period in respect of all policies underwritten by the approved insurer in the course of carrying on its specialised insurance business in Singapore.
(7) For the purposes of paragraph (2), where the Comptroller is satisfied that any part of the insurance fund mentioned in the definition of “A” or “B” in paragraph (3) is not required to support the offshore general business in Singapore or the general business in Singapore (other than the offshore general business) of the approved insurer (as the case may be), the Comptroller may adopt such reduced amount of “A” in paragraph (2)(b) or “B” in paragraph (2)(c) as appears to the Comptroller to be reasonable in the circumstances.
(8) For the purposes of paragraph (2), where the Comptroller is satisfied that any part of the shareholders’ fund mentioned in the definition of “C” in paragraph (3) is not required to support the general business in Singapore of the approved insurer, the Comptroller may adopt such reduced amount of “C” in paragraph (2)(d) as appears to the Comptroller to be reasonable in the circumstances.
(9) A reference in this regulation to interest includes a reference to qualifying return in lieu of interest.