Clause 16

Notwithstanding section 43, the Minister may by regulations provide that tax at the rate of 10% or such other concessionary rate be levied and paid for each year of assessment upon such income as he 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 to its offices and associated companies where such offices and associated companies are outside Singapore; and those regulations may provide for the deduction of losses otherwise than in accordance with section 37(2).(2) The concessionary rate of tax referred to in subsection (1) shall apply 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;

in respect of any qualifying activity only where the qualifying activity has been approved in relation to that Centre for such concessionary rate; and

subject to such conditions as the Minister or such person appointed by him may impose.(3) For the purposes of this section —“approved” means approved by the Minister or such person as he may appoint;“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:Provided that a company shall be deemed to be an associated company in relation to a company with an approved Finance and Treasury Centre if —

at least 25% of its issued capital is beneficially owned, directly or indirectly, by the company with the approved Centre;

at least 25% of the issued capital of the company with the approved Centre is beneficially owned, directly or indirectly, by the first-mentioned company;“Finance and Treasury Centre” means a division or department of a company which provides treasury, investment or financial services in Singapore for its offices outside Singapore or its associated companies outside Singapore.Concessionary rate of tax for international commodity trading company43H.—

Notwithstanding section 43, the Minister may by regulations provide that tax at the rate of 10% or such other concessionary rate shall be levied and paid for each year of assessment upon such income as the Minister may specify of an approved international commodity trading company derived by it from such qualifying transactions in commodities or commodity futures as may be prescribed, and those regulations may provide for the deduction of losses otherwise than in accordance with section 37(2).(2) For the purposes of this section —“approved” means approved by the Minister or such person as he may appoint;“international commodity trading company” means a company carrying on the business of international trading of commodities other than petroleum or petroleum products.Concessionary rate of tax for offshore leasing of machinery and plant43I.—

Notwithstanding section 43, tax at the rate of 10% or such other concessionary rate as the Minister may by order prescribe shall be levied and paid for each year of assessment upon the income of a leasing company accruing in or derived from Singapore in respect of offshore leasing of any machinery or plant.(2) In determining the income of a leasing company from offshore leasing —

the allowances under section 19, 19A, 20, 21, 22 or 23 shall be taken into account notwithstanding that no claim for such allowances has been made;

the allowances under section 19, 19A, 20, 21, 22 or 23 shall only be available against that income, and the balance of such allowances shall not be available as a deduction against any other income;

the Comptroller shall determine the manner and extent to which allowances under section 19, 19A, 20, 21, 22 or 23 and any expenses and donations allowable under this Act are to be deducted.(3) Where in any year a leasing company incurs a loss in respect of offshore leasing, that loss shall be deducted in accordance with section 37 but only against the income of the leasing company from offshore leasing.(4) Where a leasing company permanently ceases to carry on its offshore leasing business, the balance of any allowance or loss attributable to that business which remains unabsorbed at the date of such cessation shall be reduced to such proportion of the balance as the concessionary rate of tax referred to in subsection (1) bears to the rate of tax for every company under section 43(1)(a) applicable for the year of assessment which relates to the basis period in which the cessation occurs; and the amount so reduced shall be available as a deduction against any other income of the leasing company for that year of assessment, and any balance of that amount shall be available as a deduction for any subsequent year of assessment in accordance with section 23 or 37, as the case may be.(5) For the purposes of this section —“leasing company” means any company carrying on a business of leasing machinery or plant;“offshore leasing” means the leasing of any machinery or plant, other than those which have been treated as though they had been sold pursuant to regulations made under section 10D(1), where such machinery or plant is used outside Singapore, and the payments under the lease —

are in currencies other than Singapore dollars; and

are not deductible against any income accruing in or derived from Singapore.”.