Computation of income of financial sector incentive (standard tier) company derived before 1st January 2011 and of financial sector incentive (fund management) company from managing funds of certain foreign investors and approved companies
7.—(1)  In respect of services provided to a foreign investor under regulation 4(1)(l) or (m) or (2E) or 6(1)(a) or (c), where the foreign investor is —
(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 individuals or companies referred to in paragraph (a) or (b), as the case may be, of that definition and by designated persons;
[S 586/2008 wef 15/02/2007]
[S 638/2011 wef 29/11/2011]
(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 individuals or companies referred to in paragraph (a) or (b), as the case may be, of that definition and by designated persons; or
[S 586/2008 wef 15/02/2007]
[S 638/2011 wef 29/11/2011]
(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 individuals or companies referred to in paragraph (a) or (b), as the case may be, of that definition and by designated persons,
[S 638/2011 wef 29/11/2011]
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:
where A
is the number of issued shares of the company referred to in paragraph (a), the value of issued securities of the company referred to in paragraph (aa) or the value of the trust fund referred to in paragraph (b), as the case may be, which are 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 referred to in paragraph (a), the total value of issued securities of the company referred to in paragraph (aa) or the total value of the trust fund referred to in paragraph (b), 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)or (2E) or 6(1)( a) or (c) to the foreign investor.
(2)  In respect of services provided to an approved company under regulation 4(2D) or 6(1)(b), where the approved company is —
(a)a company incorporated before 15th February 2007, 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 citizens of Singapore or resident in Singapore and by designated persons; or
(b)a company incorporated on or after 15th February 2007, 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 citizens of Singapore or resident in Singapore 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:
[S 586/2008 wef 17/02/2006]
where D
is the number of issued shares of the company referred to in sub-paragraph (a) or the value of issued securities of the company referred to in sub-paragraph (b), as the case may be, which are not beneficially owned or held, directly or indirectly, by persons who are citizens of Singapore or resident in Singapore or by designated persons;
E
is the total number of issued shares of the company referred to in sub-paragraph (a) or the total value of issued securities of the company referred to in sub-paragraph (b), as the case may be; and
F
is the amount of fees and commissions derived from the provision of the services referred to in regulation 4(2D) or 6(1)(b) to the approved company.
(3)  In respect of services provided to a trustee of a prescribed trust fund under regulation 4(2F)(c), (f), (g) or (h) or 6(4)(c), (f), (g) or (h), where any designated person is a beneficiary of that trust fund and where more than 20% of the total value of that trust fund is beneficially held, directly or indirectly, by persons who are citizens of Singapore or resident in Singapore 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:
[S 54/2010 wef 01/09/2007]
where G
is the value of the trust fund which is not beneficially owned or held, directly or indirectly, by persons who are citizens of Singapore or resident in Singapore or by designated persons;
H
is the total value of the trust fund; and
I
is the amount of fees and commissions derived from the provision of the services referred to in regulation 4(2F) or 6(4) to the trustee of a prescribed trust fund.