Clause 3

by deleting the words “27th February 2003” wherever they appear in subsections (1)(a) and (2) and substituting in each case the words “31st December 2008”;

by deleting paragraph (p) of subsection (1) and substituting the following paragraph:“(p)for a period of 5 years from 1st January 2003, such income of the Singapore Commodity Exchange Limited as may be prescribed;”;

by deleting the word “and” at the end of subsection (1)(z);

by deleting the full-stop at the end of paragraph (za) of subsection (1) and substituting a semi-colon, and by inserting immediately thereafter the following paragraphs:“(zb)any subsidy, allowance or benefit provided by an employer to an employee for the attendance by any child of the employee at a child care centre licensed under the Child Care Centres Act (Cap. 37A);

by inserting, immediately above subsection (8) under the sub-heading “Income received from outside Singapore”, the following subsections:“(7A) Where the conditions specified in subsection (7B) are satisfied, there shall be exempt from tax the following income received in Singapore on or after 1st June 2003 from any territory outside Singapore by any person resident in Singapore:

any dividend derived from any territory outside Singapore;

any profit derived from any trade or business carried on by a branch in any territory outside Singapore of a company resident in Singapore; and

any income derived from any professional, consultancy and other services rendered in any territory outside Singapore only if the Comptroller is satisfied that the income is derived, for the purposes of this Act, from outside Singapore.(7B) The conditions referred to in subsection (7A) are —

the income is subject to tax of a similar character to income tax (by whatever name called) under the law of the territory from which the income is received;

at the time the income is received in Singapore by the person resident in Singapore, the highest rate of tax of a similar character to income tax (by whatever name called) levied under the law of the territory from which the income is received on any gains or profits from any trade or business carried on by any company in that territory at that time is not less than 15%; and (c)the Comptroller is satisfied that the tax exemption would be beneficial to the person resident in Singapore.(7C) Where the income referred to in subsection (7A) consists of dividends paid by a company, the tax referred to in subsection (7B)(a) shall be —

where the company is resident in the territory from which the dividends are received, the tax paid in that territory by the company in respect of its income out of which the dividends are paid; and

the tax paid on the dividends in the territory from which the dividends are received.(7D) The Minister may make regulations generally to give full effect to or for carrying out the purposes of subsection (7A).”;

by deleting the words “or is taxed at a concessionary rate of tax by virtue of an order made under subsection (8) and the income is received by a company which is resident in Singapore” in subsection (10) and substituting the words “under subsection (7A), or is exempt from tax or is taxed at a concessionary rate of tax by virtue of an order made under subsection (8) and the income is received by a company which is resident in Singapore (other than income derived from Malaysia and received in Singapore on or after 1st June 2003 by a company resident in Singapore where the company in paying any dividend out of such income declares itself to be a resident of Malaysia under paragraph 3 of Article VII of the Income Tax (Singapore — Malaysia) (Avoidance of Double Taxation Agreement) Order (O 19))”;

by inserting, immediately after the definition of “financial institution” in subsection (11), the following definition:“ “financial sector incentive (bond market) company” means a company approved as such by the Minister or such person as he may appoint;”;

by deleting the words “27th February 2003” in paragraphs (a) and (b)(i) of the definition of “qualifying debt securities” in subsection (11) and substituting in each case the words “31st December 2008”;

by deleting the word “or” at the end of paragraph (b)(i) of the definition of “qualifying debt securities” in subsection (11);

by deleting sub-paragraph (ii) of paragraph (b) of the definition of “qualifying debt securities” in subsection (11) and substituting the following sub-paragraphs:“(ii)by any approved bond intermediary and issued —

during the period from 27th February 1999 to 31st December 2008 under any prescribed programme the arrangement of which is completed on or before 31st December 2003; or

during the period from 27th February 1999 to 31st December 2003 in any other case; or

by any financial sector incentive (bond market) company and issued during the period from 1st January 2004 to 31st December 2008,”;

by renumbering the existing sub-paragraphs (iii) and (iv) of the definition of “qualifying debt securities” in subsection (11) as sub-paragraphs (iv) and (v), respectively; and

by deleting subsection (13) and substituting the following subsection:“(13) In this section —“approved bank” means a bank in Singapore approved by the Minister by order in the Gazette;“child”, in relation to an employee, means any legitimate child, illegitimate child, step-child, child adopted in accordance with any written law relating to the adoption of children and any child whom the employee is the legal guardian;“deposit”, in relation to any standard savings, current or fixed deposit account referred to in subsection (1)(zc) and (zd), means any deposit of moneys but does not include —

any deposit of moneys the interest from which is determined by the performance of any securities or by the fluctuations in currency exchange rates or by any combination thereof; and

any other prescribed deposit.”.