No. S 733
Stamp Duties Act
(Chapter 312)
Stamp Duties (Qualifying Islamic Financing Arrangements) (Remission) Rules 2005
In exercise of the powers conferred by sections 74 and 77 of the Stamp Duties Act, the Minister for Finance hereby makes the following Rules:
Citation
1.  These Rules may be cited as the Stamp Duties (Qualifying Islamic Financing Arrangements) (Remission) Rules 2005.
Definitions
2.  In these Rules —
“financial institution” means an institution licensed or approved by the Monetary Authority of Singapore, or exempted from such licensing or approval, under any Act administered by the Monetary Authority of Singapore, and includes an institution approved as a Finance and Treasury Centre under section 43G of the Income Tax Act (Cap. 134);
“qualifying Islamic financing arrangement” means an arrangement that is entered into between a financial institution (referred to in these Rules as the capital provider) and any person (referred to in these Rules as the purchaser) with regard to any immovable property situate in Singapore or any interest therein, whereby the capital provider purchases the immovable property or interest therein with a view to selling the same to the purchaser and —
(a)the capital provider then sells the immovable property or interest therein to the purchaser; or
(b)the capital provider then leases the immovable property or interest therein to the purchaser with an option for the purchaser to purchase the same.
Remission of stamp duty relating to qualifying Islamic financing arrangements
3.  Subject to the conditions specified in rule 4 and the submission of such document as the Commissioner may require, there shall be remitted all duty chargeable —
(a)in excess of $500 on any instrument relating to —
(i)the sale of the immovable property or interest therein by the capital provider under a qualifying Islamic financing arrangement to the purchaser as referred to in paragraph (a) of the definition of “qualifying Islamic financing arrangement”; and
(ii)the lease of the immovable property or interest therein by the capital provider under a qualifying Islamic financing arrangement to the purchaser as referred to in paragraph (b) of the definition of “qualifying Islamic financing arrangement”,
where the instrument relating to the initial purchase of the immovable property or interest therein by the capital provider is executed on or after 1st January 2005; and
(b)on any instrument relating to the sale of the immovable property or interest therein by the capital provider under a qualifying Islamic financing arrangement to the purchaser upon the exercise by the purchaser of the option to purchase referred to in paragraph (b) of the definition of “qualifying Islamic financing arrangement”, where the instrument relating to the initial purchase of the immovable property or interest therein by the capital provider is executed on or after 1st January 2005.
Conditions for remission
4.  The conditions for the remission referred to in rule 3 are —
(a)ad valorem stamp duty has been paid on the instrument relating to the initial purchase of the immovable property situate in Singapore or any interest therein by the capital provider referred to in the definition of “qualifying Islamic financing arrangement”; and
(b)the qualifying Islamic financing arrangement is endorsed by any Shari’ah council or body, or by any committee formed for the purpose of providing guidance on compliance with Shari’ah laws.
Made this 17th day of November 2005.
LIM SIONG GUAN
Permanent Secretary,
Ministry of Finance,
Singapore.
[MF(R) 032.18.2925 V1; AG/LEG/SL/312/2002/1 Vol. 1]