Clause 9

by inserting, immediately after subsection (1) thereof, the following subsection: —“(1A) An insurance company shall maintain separate accounts for the income derived by it from carrying on the business (other than the business of life assurance) of reinsuring offshore risks.”;

by deleting the full-stop at the end of subsection (2) thereof and substituting therefor a colon and by inserting immediately thereafter the following proviso: —“Provided that in ascertaining the gains or profits derived by an insurance company from carrying on the business (other than the business of life assurance) of reinsuring offshore risks for the purposes of any concessionary rate of tax prescribed by regulations made under section 43C of this Act —

no income other than income from premiums, dividends and interest shall be included;

income in respect of dividends and interest shall be apportioned in such manner as may be prescribed by those regulations; and

any item of expenditure not directly attributable to that business shall be apportioned in such manner as may be prescribed by those regulations.”; and

by inserting, immediately after subsection (4) thereof, the following subsection: —“(5) For the purposes of this section and section 43C of this Act, “offshore risks” means any risk outside Singapore and —

in relation to facultative general reinsurance —

the insured is not a person resident in Singapore or is not a permanent establishment in Singapore; and

the insurer who issues the original policy of insurance is not a resident or a permanent establishment in Singapore;

in relation to treaty general reinsurance —

the insurer who issues the original policy of insurance is not a resident or a permanent establishment in Singapore; and

not less than seventy-five per cent of the total risk is outside Singapore,and where any such risk is in transit in Singapore it shall be deemed to be outside Singapore.”.