Exemption for payment under finance lease of container by shipping enterprise
3.—(1)  Subject to this paragraph, any payment that a shipping enterprise is liable to make on or after 12 December 2018 to a person resident outside Singapore (called in this Notification a non‑resident person) under a finance lease entered into on or before 31 December 2023 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.
(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 shipping enterprise ceases to own or operate any Singapore ship.
(3)  Where the shipping enterprise mentioned in sub‑paragraph (1) owns or operates only one ship, and that ship is provisionally registered under the Merchant Shipping Act 1995, the exemption is subject to the condition that the ship subsequently obtains a certificate of registry under that Act.
[S 308/2024 wef 31/12/2021]