Definitions
2.—(1)  In these Regulations, unless the context otherwise requires —
“approved company” means an approved company to which the tax exemption under section 13R of the Act applies;
[S 212/2016 wef 17/02/2006]
“Approved Derivatives Trader” has the same meaning as in the Income Tax (Concessionary Rate of Tax for Derivatives Activities) Regulations 2003 (G.N. No. S 637/2003) in force immediately before 1st January 2004;
“Approved Fund Manager” means a Fund Manager approved before 1st January 2004 under section 43A(1)(b) of the Act;
“Approved Headquarters Company” means a headquarters company approved under section 43E of the Act by the Monetary Authority of Singapore in its capacity as a person appointed by the Minister for the purposes of that section;
“Approved Securities Company” means a company approved before 1st January 2004 for derivatives activities under section 43A(1)(c) of the Act;
“approved start-up fund manager” has the same meaning as in —
(a)the Income Tax (Income from Funds Managed for Foreign Investors) Regulations 2003 (G.N. No. S 640/2003);
(b)the Income Tax (Exemption of Income of Trustee of Trust Fund Arising from Funds Managed by Fund Manager in Singapore) Regulations 2010 (G.N. No. S 7/2010); or
(c)the Income Tax (Exemption of Income of Non-residents Arising from Funds Managed by Fund Manager in Singapore) Regulations 2010 (G.N. No. S 6/2010),
as the case may be;
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“debt securities” has the same meaning as in section 43N of the Act;
“designated investments” and “designated person” have the same meanings as in the Income Tax (Exemption of Income of Non-residents Arising From Funds Managed by Fund Manager in Singapore) Regulations 2010 (G.N. No. S 6/2010);
“designated securities” means —
(a)stocks, shares, bonds and other securities, denominated in any foreign currency, issued by a company which is neither incorporated in Singapore nor resident in Singapore; or
(b)bonds denominated in any foreign currency issued by any foreign government;
“Equity Capital Market Intermediary” has the same meaning as in the Income Tax (Concessionary Rate of Tax for Equity Capital Market Intermediary) Regulations 2003 (G.N. No. S 638/2003) in force immediately before 1st January 2004;
“financial derivatives” means derivatives the payoffs of which are linked, whether in whole or in part, to the payoffs or performance of any financial assets, securities, financial instruments or indices, but excludes derivatives the payoffs of which are wholly linked to the payoffs or performance of commodities;
“financial sector incentive (bond market) company” means a company approved as such under section 43Q of the Act;
“financial sector incentive (credit facilities syndication) company” means a company approved as such under section 43Q of the Act;
“financial sector incentive (derivatives market) company” means a company approved as such under section 43Q of the Act;
“financial sector incentive (equity market) company” means a company approved as such under section 43Q of the Act;
“financial sector incentive (fund management) company” means a company approved as such under section 43Q of the Act;
“financial sector incentive (headquarter services) company” means a company approved as such under section 43Q of the Act;
“financial sector incentive (project finance) company” means a company approved as such under section 43Q of the Act;
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“financial sector incentive (standard tier) company” means a company approved as such under section 43Q of the Act;
“foreign bond or loan stock issue” means any bond or loan stock issued by a person who (excluding any permanent establishment it may have in Singapore) is not resident in Singapore, or by a permanent establishment outside Singapore of a person resident in Singapore in respect of any business carried on outside Singapore through that permanent establishment, where —
(a)the bond or loan stock is denominated in any currency other than the Singapore dollar;
(b)the proceeds of the bond or loan stock issue are to be used outside Singapore; and
(c)the expenses incurred in respect of the bond or loan stock issue are not borne, directly or indirectly, by a person resident in Singapore or a permanent establishment in Singapore;
“foreign debt securities” means any bonds, notes, commercial papers, treasury bills or certificates of deposits which are —
(a)issued by a company which is neither incorporated in Singapore nor resident in Singapore (excluding any permanent establishment it may have in Singapore), or by any foreign government; or
(b)listed on the Singapore Exchange, and issued by a company which —
(i)is incorporated in Singapore;
(ii)has at least 50% of its annual turnover derived from outside Singapore; and
(iii)is approved, for the purpose of these Regulations, by the Minister or such person as he may appoint;
“foreign equity securities” means stocks, shares or other equity securities which are —
(a)issued by a company which is neither incorporated in Singapore nor resident in Singapore; or
(b)listed on the Singapore Exchange, and issued by a company which —
(i)is incorporated in Singapore;
(ii)has at least 50% of its annual turnover derived from outside Singapore; and
(iii)is approved, for the purpose of these Regulations, by the Minister or such person as he may appoint;
“foreign investor” means —
(a)an individual who is neither a citizen of Singapore nor resident in Singapore and who is the beneficial owner of funds managed by any fund manager in Singapore;
(b)a company not resident in Singapore —
(i)which is incorporated before 15th February 2007 and of which not more than 20% of the total number of the issued shares are beneficially owned, directly or indirectly, by persons who are citizens of Singapore or resident in Singapore (excluding the total percentage owned directly by any designated person); or
(ii)which is incorporated on or after 15th February 2007 and of which not more than 20% of the total value of the issued securities are beneficially owned, directly or indirectly, by persons who are citizens of Singapore or resident in Singapore (excluding the total percentage owned directly by any designated person); or
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(c)a trust fund not more than 20% of the value of which is beneficially held, directly or indirectly, by persons who are not referred to in paragraphs (a) and (b) (after excluding the total percentage held directly by any designated person),
but excludes —
(i)any company or trust fund that —
(A)has a permanent establishment in Singapore (other than a fund manager);
(B)carries on a business in Singapore; or
(C)beneficially owns more than 20% of the total number of the issued shares of any company incorporated in Singapore; and
(ii)any company —
(A)which is incorporated before 15th February 2007 and of which 20% or more of the total number of the issued shares are beneficially owned, directly or indirectly, by a company referred to in paragraph (i); or
(B)which is incorporated on or after 15th February 2007 and of which 20% or more of the total value of the issued securities are beneficially owned, directly or indirectly, by a company referred to in paragraph (i),
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unless approval is granted by the Minister or approving authority;
“foreign mutual fund corporation” means a mutual fund corporation not more than 20% of the total number of the issued shares of which are beneficially held, directly or indirectly, by persons who are not referred to in paragraphs (a) and (b) of the definition of “foreign investor” (after excluding the total percentage held directly by any designated person);
“foreign trust” has the meaning given to it in regulation 2A of the Income Tax (Exemption of Income of Foreign Trusts) Regulations (Rg 24);
“futures member of the Singapore Exchange” has the same meaning as in section 43D(4) of the Act;
“initial public offering” means a public offering of securities of a company, the stocks or shares of which have not previously been listed on the Singapore Exchange, in conjunction with the listing of those securities on the Singapore Exchange, and includes a listing of securities of such a company on the Singapore Exchange by way of an introduction;
“issued securities” means —
(a)issued debentures, stocks or shares;
(b)any right, option or derivative in respect of any such debentures, stocks or shares; or
(c)any right under a contract for differences, or under any other contract the purpose or pretended purpose of which is to secure a profit or avoid a loss by reference to fluctuations, in —
(i)the value or price of any such debentures, stocks or shares;
(ii)the value or price of any group of any such debentures, stocks or shares; or
(iii)an index of any such debentures, stocks or shares,
and includes derivatives of a buy-sell nature for funding purpose, but does not include —
(A)futures contracts which are traded on a futures market;
(B)bills of exchange;
(C)promissory notes; or
(D)certificates of deposit issued by a bank or finance company;
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“mutual fund corporation” means a collective investment scheme or closed-end fund, as defined in section 2 of the Securities and Futures Act (Cap. 289), that is constituted as a corporation;
“non-qualifying investor”, in relation to a prescribed person or an approved company as at the last day of its basis period for any year of assessment, means —
(a)a relevant owner referred to in section 13CA or 13R of the Act, as the case may be;
(b)a relevant beneficiary referred to in section 13CA of the Act; or
(c)a person referred to in section 13CA(6) or 13R(5) of the Act that has equity interest in the prescribed person or approved company, as the case may be,
who is liable to pay a penalty as determined in accordance with section 13CA or 13R of the Act as the case may be, which is based on the income of the prescribed person or approved company for its basis period relating to the same year of assessment;
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“offshore credit facility” means —
(a)any facility where —
(i)loans, advances or funds are made available to a person referred to in paragraph (a) of the definition of “specified person”;
(ii)the loans, advances or funds made available are to be used outside Singapore; and
(iii)no interest, commission, fee or other payment in respect of the facility is borne, directly or indirectly, by any person resident in Singapore (except in respect of any business carried on outside Singapore by a person resident in Singapore through a permanent establishment outside Singapore) or by any permanent establishment in Singapore;
(b)any facility where —
(i)loans, advances or funds are made available to a person referred to in paragraph (b) of the definition of “specified person”;
(ii)the loans, advances or funds made available are to be used outside Singapore; and
(iii)no interest, commission, fee or other payment in respect of the facility is deductible against any income of that person accruing in or derived from Singapore;
(c)any facility where —
(i)guarantees or letters of credit are made available to, and issued in favour of, a non-resident person (other than his permanent establishment in Singapore) or a person resident in Singapore in respect of any business carried on outside Singapore through a permanent establishment outside Singapore; and
(ii)no interest, commission, fee or other payment in respect of the facility is borne, directly or indirectly, by any person resident in Singapore (except in respect of any business carried on outside Singapore by a person resident in Singapore through a permanent establishment outside Singapore) or by any permanent establishment in Singapore;
(d)any facility where —
(i)the issue of bonds, notes, certificates of deposit or other instruments of indebtedness is provided to a person referred to in paragraph (a) of the definition of “specified person”;
(ii)the funds raised from the issue of such bonds, notes, certificates of deposit or other instruments of indebtedness are to be used outside Singapore; and
(iii)no interest, commission, fee or other payment in respect of the facility is borne, directly or indirectly, by any person resident in Singapore (except in respect of any business carried on outside Singapore by a person resident in Singapore through a permanent establishment outside Singapore) or by any permanent establishment in Singapore; or
(e)any facility where —
(i)the issue of bonds, notes, certificates of deposit or other instruments of indebtedness is provided to a person referred to in paragraph (b) of the definition of “specified person”;
(ii)the funds raised from the issue of such bonds, notes, certificates of deposit or other instruments of indebtedness are to be used outside Singapore; and
(iii)no interest, commission, fee or other payment in respect of the facility is deductible against any income of that person accruing in or derived from Singapore;
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“offshore guarantee facility” means any facility where —
(a)guarantees or letters of credit are made available to and issued in favour of a bank licensed under the Banking Act (Cap. 19) or a merchant bank approved under section 28 of the Monetary Authority of Singapore Act (Cap. 186), for the purpose of providing or participating in a loan made to a non-resident person (other than his permanent establishment in Singapore);
(b)the loan is to be used outside Singapore; and
(c)no interest in respect of the loan is borne, directly or indirectly, by any person resident in Singapore (except in respect of any business carried on outside Singapore by a person resident in Singapore through a permanent establishment outside Singapore) or by any permanent establishment in Singapore;
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“offshore trade transaction” means any trade transaction where —
(a)neither the buyer nor the seller is a resident of Singapore or a permanent establishment in Singapore;
(b)the goods are not exported from or imported into Singapore except for transhipment; and
(c)the transaction is carried out in one or more foreign currencies;
“prescribed asset or project” means an infrastructure asset or project prescribed in regulation 5 of the Income Tax (Qualifying Project Debt Securities) Regulations 2008 (G.N. No. S 315/2008);
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“prescribed person” means a person prescribed in regulation 2 of the Income Tax (Exemption of Income of Non-residents Arising From Funds Managed by Fund Manager in Singapore) Regulations 2010 (G.N. No. S 6/2010) to which tax exemption under section 13CA of the Act applies;
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“prescribed trust fund” means a trust fund prescribed in the Income Tax (Exemption of Income of Trustee of Trust Fund Arising from Funds Managed by Fund Manager in Singapore) Regulations 2010 (G.N. No. S 7/2010);
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“qualifying debt securities” has the same meaning as in section 13(16) of the Act;
“qualifying derivatives” means financial derivatives transacted over-the-counter;
“qualifying project debt securities” has the same meaning as in section 13(16) of the Act;
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“qualifying project loan” means a loan which satisfies the following conditions:
(a)the interest payment in respect of the loan is funded primarily by the cash flows from one or more prescribed assets or projects;
(b)the proceeds from the loan are only used to acquire, develop or invest in any prescribed asset or project or to refinance a previous loan where the previous loan is only used to acquire, develop or invest in any prescribed asset or project;
(c)the proceeds from the loan are used outside Singapore;
(d)the loan is substantially advised on and structured by a financial sector incentive (project finance) company or a financial institution in Singapore where the employees of the financial institution who are based in Singapore have a leading and substantial role in advising on and structuring the loan;
(e)the loan agreement takes effect any time on or after 1st November 2006 but not after 31st December 2008; and
(f)no interest, commission, fee or other payment in respect of the loan is deductible under the Act against any income of any person accruing in or derived from Singapore;
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“related party”, in relation to any specified person, means any other person who —
(a)controls the specified person, whether directly or indirectly;
(b)is controlled by the specified person, whether directly or indirectly; or
(c)together with the specified person, is controlled by a common person, whether directly or indirectly;
[S 54/2010 wef 16/02/2008]
“relevant foreign trust” means a foreign trust as defined in regulation 2A of the Income Tax (Exemption of Income of Foreign Trusts) Regulations (Rg 24), other than a unit trust referred to in paragraph (1)(b) of that regulation;
“securities lending or repurchase arrangement” has the same meaning as in section 10N of the Act;
[S 260/2006 wef 18/02/2005]
“specified person”, in relation to any offshore credit facility, means —
(a)a non-resident person (other than his permanent establishment in Singapore) or a permanent establishment outside Singapore of a person resident in Singapore in respect of any business carried on outside Singapore through that permanent establishment; and
(b)a person resident in Singapore (except in respect of any business carried on outside Singapore by a person resident in Singapore through a permanent establishment outside Singapore) or a permanent establishment in Singapore;
[S 54/2010 wef 16/02/2008]
“subsequent incentive period” means a further period referred to in regulation 3(5)(a);
“unit” means a right or an interest (whether described as a unit, a sub-unit or otherwise) which may be acquired under a unit trust;
“unit trust” means any trust established for the purpose, or having the effect, of providing facilities for the participation by persons, as beneficiaries under a trust, in profits or income arising from the acquisition, holding, management or disposal of securities or any other property.
(2)  Any reference in these Regulations to an approving authority is a reference to such person as the Minister may appoint for the purposes of the provision in which that reference appears.
(3)  Any reference in these Regulations to the value of issued securities of a company is a reference to the value of those securities ––
(a)at the time of their issue by the company; or
(b)in the case of derivatives of a buy-sell nature for funding purpose, at the time of their buy-sell transaction.
[S 586/2008 wef 15/02/2007]