Computation of income of financial sector incentive company from managing funds of certain foreign investors
7.  In respect of services provided to a foreign investor under regulation 4(1)(l) or (m) or 6(1), where the foreign investor is —
(a)a company referred to in paragraph (b) of the definition of “foreign investor” in regulation 2 in which any designated person is a shareholder and of which more than 20% of the total number of the issued shares are beneficially owned, directly or indirectly, by persons who are not referred to in paragraphs (a) and (b) of that definition and by designated persons; or
(a)a company referred to in paragraph (b)(i) of the definition of “foreign investor” in regulation 2 in which any designated person is a shareholder and of which more than 20% of the total number of the issued shares are beneficially owned, directly or indirectly, by persons who are not referred to in paragraphs (a) and (b) of that definition and by designated persons;
(aa)a company referred to in paragraph (b)(ii) of the definition of “foreign investor” in regulation 2 in which any designated person is a shareholder and of which more than 20% of the total value of the issued securities are beneficially owned, directly or indirectly, by persons who are not referred to in paragraphs (a) and (b) of that definition and by designated persons; or
(b)a trust fund referred to in paragraph (c) of the definition of “foreign investor” in regulation 2 in which any designated person is a beneficiary and of which more than 20% of the value is beneficially held, directly or indirectly, by persons who are not referred to in paragraphs (a) and (b) of that definition and by designated persons,
the amount of fees and commissions which is chargeable with tax at the concessionary rate of 10% shall be computed in accordance with the following formula:
 
 
 
 
 
 
 
 
 
A +
(20% x B)
 
 
 
 
 
_______________
x C
 
 
 
 
 
B
 
 
 
 
 
 
 
where
A
is the number of issued shares of the company or the value of the trust fund, as the case may be, which is not beneficially owned or held, directly or indirectly, by persons who are not referred to in paragraphs (a) and (b) of the definition of “foreign investor” in regulation 2 or by designated persons;
 
B
is the total number of issued shares of the company or the value of the trust fund, as the case may be; and
 
C
is the amount of fees and commissions derived from the provision of the services referred to in regulation 4(1)(l) or (m) or 6(1) to the foreign investor.