Income Tax (Concessionary Rate of Tax for Foreign Income of Approved Container Investment Enterprise) Order 2010

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No. S 699

Income Tax Act

(Chapter 134)

Income Tax (Concessionary Rate of Tax for Foreign Income of Approved Container Investment Enterprise) Order 2010

In exercise of the powers conferred by section 13(12) of the Income Tax Act, the Minister for Finance hereby makes the following Order:

Citation and commencement

1. This Order may be cited as the Income Tax (Concessionary Rate of Tax for Foreign Income of Approved Container Investment Enterprise) Order 2010 and shall be deemed to have come into operation on 1st April 2008.

Definitions

2. In this Order —

“approved container investment enterprise” means a container investment enterprise approved under section 43ZA of the Act;

“container” has the same meaning as in section 43ZA(7) of the Act.

Concessionary tax rate for foreign income received by approved container investment enterprise

3.—(1) Where a company or partnership that is incorporated, registered or formed outside Singapore (excluding a permanent establishment in Singapore) is approved by the Minister or such person as he may appoint as satisfying the requirements set out in sub-paragraph (2), then, for so long as the company or partnership is so approved, tax at a concessionary rate referred to in sub-paragraph (3) shall be levied and paid on the income of an approved container investment enterprise received in Singapore that comprises —

(a)	the dividends from such an approved company; or
(b)	the partnership profits of such an approved partnership,

if the dividends or partnership profits, as the case may be, are paid out of income derived by the approved company or partnership from any activity referred to in sub-paragraph (2)(a)(i) or (ii).

(2) The requirements referred to in sub-paragraph (1) are that the approved company or partnership, as the case may be —

(a)

does not carry on any business other than any of the following:

(i)	leasing any container owned by the approved company or partnership acquired before or during the period of its approval and used for the international transportation of goods (other than the leasing of a container which has been treated as though the container had been sold pursuant to regulations made under section 10D(1) of the Act);
(ii)	foreign exchange and risk management activities which are carried out in connection with and incidental to the activity referred to in sub-paragraph (i);

(b)

carries on its business from a place outside Singapore;

(c)

is controlled and managed by the approved container investment enterprise referred to in sub-paragraph (1); and

(d)

makes the payments referred to in sub-paragraph (1) to the approved container investment enterprise for a purpose which promotes or enhances the economic development of Singapore.

(3) The concessionary rate of tax referred to in sub-paragraph (1) shall be 5% or 10%, determined in accordance with conditions imposed by the Minister and notified to the approved container investment enterprise.

Made this 18th day of November 2010.

PETER ONG

Permanent Secretary,
Ministry of Finance,
Singapore.

[R032.018.2934.V3; AG/LLRD/SL/134/2005/52 Vol. 1]

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