Deduction, etc., where activity subject to 2 concessionary tax rates
9A.—(1)  This regulation applies where income of a financial sector incentive company from an activity is subject to 2 different concessionary rates of tax under these Regulations for the same period (called in this regulation the common period), and either —
(a)the income from that activity for a part of that period has been charged to tax at one of those rates; or
(b)the capital allowance, losses or donations that are attributable or apportioned to that activity have been deducted against income of the company —
(i)derived during a part of that period; and
(ii)that has been charged to tax under these Regulations at one of those rates.
(2)  In ascertaining the income of the company under regulation 9 for any remaining part of the common period (called in this regulation the remaining period) —
(a)any expenses, capital allowances, losses and donations that are attributable or apportioned to that activity, and that are allowable under the Act against income in the remaining period, may only be deducted against income of the company in the remaining period that is subject to the rate at which the income mentioned in paragraph (1)(a) or (b) has been charged to tax (called in this regulation the initial rate); but
(b)any part of those expenses, capital allowances, losses and donations that remain unabsorbed are considered unabsorbed capital allowances, losses and donations in respect of the company’s income that is subject to the initial rate, and may be deducted against any other income of the company in the remaining period and in accordance with section 37B of the Act (if applicable).
(3)  The deduction of unabsorbed capital allowances, losses and donations under paragraph (2)(b) against other income of the company is subject to the conditions by which unabsorbed capital allowances, losses and donations may be carried forward for deduction against income under sections 23 and 37 of the Act (if applicable).
(4)  Despite anything in these Regulations, in a case mentioned in paragraph (1)(b), tax is payable at the initial rate on the income of the company derived from that activity for the remaining period, and not at the other concessionary rate of tax mentioned in paragraph (1).
[S 212/2016 wef 01/01/2014]