Clause 9

by inserting, immediately after paragraph (a) of subsection (1), the following paragraph:“(aa)subject to subsection (2A) and the prescribed conditions, the discount from any qualifying debt securities, which mature within one year from the date of issue of those securities and issued during the period from 27th February 2004 to 31st December 2008, by —

any person who is not resident in Singapore and who does not have any permanent establishment in Singapore; and

any person who is not resident in Singapore and who carries on any operation in Singapore through a permanent establishment in Singapore where the funds used by that person to acquire the qualifying debt securities are not obtained from the operation;”;

by deleting sub-paragraphs (ii) and (iii) of subsection (1)(o) and substituting the following sub-paragraph:“(ii)on or after 27th February 2004 for the charter of any dredger, seismic ship or any vessel used for offshore oil or gas activity,”;

by inserting, immediately after paragraph (u) of subsection (1), the following paragraph:“(ua)such interest derived during the period 1st January 2003 to 31st December 2004 by any individual resident in Singapore from the deposit of moneys in one or more of his POSB savings accounts with The Development Bank of Singapore Ltd;”;

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

by deleting paragraph (zd) of subsection (1) and substituting the following paragraphs:“(zd)the interest derived on or after 1st January 2005 by any individual from the deposit of moneys with an approved bank or a finance company licensed under the Finance Companies Act in Singapore; and

any interest from debt securities;

any discount from debt securities which mature within one year from the date of issue of those securities;

any income from an annuity, except income from —

any annuity purchased by the employer of an individual in lieu of any pension or other benefit payable during his employment or upon his retirement; and

any annuity purchased under SRS;

any income from any life insurance policy, except income referred to in section 10(3);

any distribution made by any collective investment scheme constituted as a unit trust (including any real estate investment trust) authorised under section 286 of the Securities and Futures Act (Cap. 289) that is income or deemed to be income of the individual, except distributions made out of Singapore dividends from which tax is deducted or deductible under section 44; and

any fee or compensatory payment from securities lending or repurchase arrangements,except where such income is derived through a partnership in Singapore or is derived from the carrying on of a trade, business or profession.”;

by inserting, immediately after subsection (2), the following subsection:“(2A) Subsection (1)(aa) shall not, unless otherwise approved by the Minister or such person as he may appoint, apply to any discount derived from any qualifying debt securities where 50% or more of the issue of those securities is beneficially held or funded, directly or indirectly, at any time during the life of the issue by related parties of the issuer of those securities and where such discount is derived by —

any related party of the issuer of those securities; or

any other person where the funds used by such person to acquire those securities are obtained, directly or indirectly, from any related party of the issuer of those securities.”;

by deleting subsection (5) and the subsection heading;

by deleting subsection (8) and substituting the following subsections:“(7A) There shall be exempt from tax any income arising from sources outside Singapore and received in Singapore —

by any individual who is not resident in Singapore; and

on or after 1st January 2004 by any individual who is resident in Singapore if the Comptroller is satisfied that the tax exemption would be beneficial to the individual, but excludes such income received by him through a partnership in Singapore.(8) Where the conditions specified in subsection (9) are satisfied, there shall be exempt from tax —

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,and received in Singapore —

on or after 1st June 2003 by any person, not being an individual, resident in Singapore;

during 1st June 2003 to 31st December 2003 by any individual resident in Singapore; and

on or after 1st January 2004 by any individual resident in Singapore through a partnership in Singapore.”;

by deleting the words “and (zd)” in the definition of “deposit” in subsection (16); and

by inserting, immediately after the definition of “related party” in subsection (16), the following definition:“ “securities lending or repurchase arrangement” has the same meaning as in section 10N(12);”.