Exemption in relation to applicable loan
4.—(1)  Subject to sub‑paragraphs (2) to (6) and the conditions imposed by the Minister under section 13(4) of the Act, a qualifying payment that an approved aircraft leasing company is liable to make on or after the specified date to a specified person under an agreement for an applicable loan, is exempt from tax.
(2)  The exemption in sub‑paragraph (1) applies only to the amount of the qualifying payment derived by the formula
where —
(a)A is the principal of the applicable loan;
(b)B is that part of the principal of the applicable loan that is not attributable to a purpose specified in paragraph 3(2) (including the part of the principal that is capitalised interest); and
(c)C is the qualifying payment.
(3)  Sub‑paragraph (1) does not apply in relation to any loan obtained before 1 May 2012 and which is already the subject of another exemption under the Act.
(4)  Sub‑paragraph (1) only applies if the approved aircraft leasing company makes a declaration, in relation to the applicable loan, to the Economic Development Board established by section 3 of the Economic Development Board Act 1961 —
(a)regarding the satisfaction by the approved aircraft leasing company of the requirements and conditions for the exemption; and
(b)in the form specified by the Economic Development Board.
[S 164/2022 wef 31/12/2021]
(5)  Sub‑paragraph (1) does not apply to any qualifying payment liable to be made at any time from (and including) the date of occurrence of the earliest of the following events:
(a)the approved aircraft leasing company disposes of the aircraft or aircraft engine (as the case may be) in respect of which the applicable loan is obtained;
(b)the approval of the approved aircraft leasing company as such is revoked or withdrawn;
(c)the approved aircraft leasing company fails to satisfy any condition mentioned in sub‑paragraph (1).
(6)  Subject to sub‑paragraph (5), sub‑paragraph (1) continues to apply to a qualifying payment liable to be made even after the expiry of the approval of the approved aircraft leasing company as an approved aircraft leasing company (other than by way of revocation or withdrawal), and any reference in this paragraph to an approved aircraft leasing company is to be construed accordingly.