Clause 10

by deleting the words “Subject to subsection (2)” in subsection (1) and substituting the words “Subject to subsections (1A) and (2)”;

by inserting, immediately after the words “operated by the qualifying special purpose vehicle” in subsection (1)(e), the words “, unless the conditions of its approval otherwise provides”;

by deleting the full-stop at the end of subsection (1)(e) and substituting a semi-colon;

by inserting, immediately after paragraph (e) of subsection (1), the following paragraph:“(f)for the year of assessment 2012 and subsequent years of assessment from the carriage by any foreign ship of passengers, mails, livestock or goods which are shipped in Singapore, except where such carriage is only within the limits of the port of Singapore.”;

by inserting, immediately after subsection (1), the following subsections:“(1A) Subsection (1)(e) does not apply to the provision by an approved international shipping enterprise of ship management services to a qualifying special purpose vehicle if at least 50% of the total number of the issued ordinary shares of the enterprise are beneficially owned, whether directly or indirectly, by another approved international shipping enterprise.(1B) An application may be made to the Minister or such person as he may appoint for a company —

which is an international shipping enterprise; or

which is not but intends to become an international shipping enterprise,to be approved as an approved international shipping enterprise, and the company is deemed upon approval to be an approved international shipping enterprise.”;

by deleting subsection (2) and substituting the following subsections:“(2) The exemption for each approved international shipping enterprise —

shall be for such period not exceeding 10 years from the date of its approval as the Minister or such person as he may appoint may specify, except that the Minister or such person as he may appoint may extend the period so specified for such further periods, not exceeding 10 years at a time, as he thinks fit; or

if, at the time of its approval, the company does not, in the opinion of the Minister or such person as he may appoint, satisfy such qualifying conditions as the Minister or person may determine for the purposes of paragraph (a), shall be for such period not exceeding 5 years from the date of its approval as the Minister or person may specify.(2A) The approval of an approved international shipping enterprise for a period of exemption referred to in subsection (2)(b) may only be granted at any time between 1st June 2011 and 31st May 2016 (both dates inclusive).”;

by deleting sub-paragraph (ii) of paragraph (a) of the definition of “qualifying special purpose vehicle” in subsection (6) and substituting the following sub-paragraph:“(ii)at least 50% of the total number of the issued ordinary shares of which are beneficially owned, whether directly or indirectly, by —

the approved international shipping enterprise; or

a company which beneficially owns (whether directly or indirectly) at least 50% of the total number of the issued ordinary shares of the approved international shipping enterprise;”;

by deleting the word “or” at the end of paragraph (b)(ii) of the definition of “qualifying special purpose vehicle” in subsection (6);

by deleting sub-paragraph (ii) of paragraph (c) of the definition of “qualifying special purpose vehicle” in subsection (6) and substituting the following sub-paragraph:“(ii)of which the approved international shipping enterprise is entitled, whether directly or indirectly, to at least 25% of its income;”; and

by inserting, immediately after paragraph (c) of the definition of “qualifying special purpose vehicle” in subsection (6), the following paragraphs:“(d)an approved company —

which is incorporated and resident in Singapore, and at least 50% of the total number of the issued ordinary shares of which are beneficially owned directly by another approved company which is a qualifying special purpose vehicle by virtue of paragraph (a)(ii)(B); or

which is incorporated outside Singapore, and at least 25% of the total number of the issued ordinary shares of which are beneficially owned directly by another approved company which is a qualifying special purpose vehicle by virtue of paragraph (a)(ii)(B); or

an approved partnership which is registered or formed outside Singapore and one of the partners of which is an approved company which is a qualifying special purpose vehicle by virtue of paragraph (a)(ii)(B), and is entitled to at least 25% of its income;”.