Exemption for payment under finance lease of container by approved international shipping enterprise or approved container investment enterprise
4.—(1) Subject to this paragraph, any payment that an approved international shipping enterprise or approved container investment enterprise is liable to make to a non‑resident person on or after 12 December 2018 under any finance lease entered into on or before 31 December 2028 of at least one container for the carriage of goods by sea and intermodal equipment (if it is included in the finance lease of the container or containers), is exempt from tax.
[S 158/2022 wef 04/03/2022]
(2) Sub‑paragraph (1) does not apply to —
(a)
any payment liable to be made under the finance lease that is derived from any operation carried on by the non‑resident person through the person’s permanent establishment in Singapore;
(b)
any payment liable to be made under the finance lease after the day that the container or (where more than one container is the subject of the finance lease) one or more of the containers is or are disposed of or lost at sea (called in this sub‑paragraph disposed container or containers), unless the terms of the finance lease —
(i)
require that the disposed container or containers (as the case may be) be replaced, if the value or the total value of the disposed container or containers exceeds a sum stipulated in the finance lease; or
(ii)
require the repayment of that part of the finance lease attributable to the cost of acquiring the disposed container or containers (as the case may be), if the value or the total value of the disposed container or containers exceeds a sum stipulated in the finance lease; or
(c)
any payment liable to be made under the finance lease on or after the date that the approval of the approved international shipping enterprise or approved container investment enterprise is revoked or withdrawn.
(3) Sub‑paragraph (1) continues to apply to an international shipping enterprise or a container investment enterprise the approval of which has expired, but that remains liable to make any payment under the finance lease on or after the date of the expiry of the approval.
(4) For the purposes of sub‑paragraph (3), a reference in sub‑paragraphs (1) and (2) to an approved international shipping enterprise or approved container investment enterprise is to an international shipping enterprise or a container investment enterprise, as the case may be.