Singapore legislation
Clause 25
Clause 25
New section 14O
The principal Act is amended by inserting, immediately after section 14N, the following section:“Deduction for special reserve of approved general insurance company14O.—
The Minister may by regulations provide that, for the purpose of ascertaining the income of a general insurance company approved by the Minister or such person as he may appoint from carrying on the business of insuring and reinsuring offshore risks, there shall be allowed for a period of 10 years a deduction for the prescribed amount of special reserves set aside by the approved general insurance company for prescribed offshore risks.(2) Regulations made under subsection (1) may provide for —
any amount transferred to the special reserve on an earlier date to be deemed to have been transferred out of the special reserve first;
the circumstances in which any amount which has been allowed as deduction under this section may be deemed as trading receipt for any basis period;
the adjustment of any amount deemed as trading receipt for any basis period in respect of any amount which has been allowed as deduction under this section; and
generally for giving full effect to or for carrying out the purposes of this section.(3) In this section, “offshore risk” has the same meaning as in section 26.”.