Singapore legislation
Section 43E
Section 43E
Concessionary rate of tax for Finance and Treasury Centre
(1)
Despite section 43, the Minister may by regulations provide that tax at the concessionary rate specified in subsection (1A) is levied and must be paid for each year of assessment upon such income as the Minister may specify of a company derived from —
the operation of its approved Finance and Treasury Centre in respect of such qualifying activities carried out on its own account as may be prescribed; or
such prescribed qualifying services as may be provided by its approved Finance and Treasury Centre to —
its offices and associated companies outside Singapore; or
such of its offices and associated companies in Singapore as are approved on or after 18 February 2005,and those regulations may provide for the deduction of losses otherwise than in accordance with section 37(3).
(1A)
In subsection (1), the concessionary rate is —
in the case of a Finance and Treasury Centre approved as such on or before 24 March 2016, 10%; or
in any other case, 8%.
(2)
The concessionary rate of tax mentioned in subsection (1) applies to an approved Finance and Treasury Centre —
in respect of any qualifying service only where the qualifying service and the office or associated company to whom the service is rendered have been approved in relation to that Centre for such concessionary rate; and
in respect of any qualifying activity only where the qualifying activity has been approved in relation to that Centre for such concessionary rate.
(2A)
The Minister or a person appointed by the Minister may, subject to such conditions as the Minister or person may impose, approve a Finance and Treasury Centre for a company for the purposes of this section.
(3)
In this section —
Definition
“approved” means approved by the Minister or such person as the Minister appoints;
Definition
“associated company”, in relation to a company with an approved Finance and Treasury Centre, means a company —
the operations of which are or can be controlled, directly or indirectly, by the company with the approved Centre;
which controls or can control, directly or indirectly, the operations of the company with the approved Centre; or
the operations of which are or can be controlled, directly or indirectly, by a person or persons who control or can control, directly or indirectly, the operations of the company with the approved Centre;
Definition
“Finance and Treasury Centre” means a division or department of a company which provides treasury, investment or financial services in Singapore for its offices or its associated companies.
(4)
For the purposes of subsection (3), a company is deemed to be an associated company in relation to a company with an approved Finance and Treasury Centre if —
at least 25% of the total number of its issued shares are beneficially owned, directly or indirectly, by the company with the approved Centre; or
at least 25% of the total number of issued shares of the company with the approved Centre are beneficially owned, directly or indirectly, by the firstmentioned company.
(5)
No Finance and Treasury Centre may be approved as an approved Finance and Treasury Centre under this section after 31 December 2026.[43G