Singapore legislation
Section 43I
Section 43I
Concessionary rate of tax for global trading company and qualifying company
(1)
Despite section 43, the Minister may by regulations provide that tax at the rate of 5% or 10% is to be levied and paid for each year of assessment upon —
such income as the Minister may specify of an approved global trading company —
that is derived by it from such prescribed qualifying transactions in such prescribed commodities as the Minister or a person appointed by him may specify to the company;
that is derived by it in the basis period for the year of assessment 2012 or a subsequent year of assessment, from prescribed qualifying transactions in any derivative instrument; or
that is derived by it on or after 19 February 2020 from the carrying on of such prescribed qualifying structured commodity financing activities, prescribed treasury activities or prescribed advisory services in relation to mergers and acquisitions, as the Minister or a person appointed by the Minister may specify to the company; and
such income as the Minister may specify of an approved qualifying company that is derived on or after 21 May 2010 from the carrying on of such prescribed qualifying structured commodity financing activities, prescribed treasury activities or prescribed advisory services in relation to mergers and acquisitions, as the Minister or a person appointed by the Minister may specify to the company,and those regulations may provide for the deduction of losses otherwise than in accordance with section 37(3).
(1AA)
1AA
Subject to the regulations under subsection (1), the income of an approved global trading company or approved qualifying company mentioned in that subsection —
is chargeable with tax at the rate of 5% if the company has been approved for that rate; or
is chargeable with tax at the rate of 10% if the company has been approved for that rate.
(1AB)
1AB
For the purposes of this section, the Minister or a person appointed by the Minister may, subject to such conditions as the Minister or person may impose, approve —
a global trading company as an approved global trading company; or
a qualifying company as an approved qualifying company.
(1A)
No approval may be granted under this section to a global trading company after 31 December 2026.
(1B)
No approval may be granted under this section to a qualifying company after 31 March 2021, and any approval granted to a qualifying company must be for a period that commences on or before that date.
(2)
[Deleted by Act 32 of 2019]
(3)
In this section —
Definition
“global trading company” means a company that carries on the business of international trading of commodities or commodities derivatives, or of brokering international trades in commodities, or both;
Definition
“qualifying company” means —
an approved company that carries on the business of international trading of commodities or commodities derivatives; or
a wholly‑owned subsidiary of another company, where the other company carries on the business of international trading of commodities or commodities derivatives,that carries on any qualifying structured commodity financing activities, treasury activities, or advisory services in relation to mergers and acquisitions, prescribed under subsection (1).[43P