Clause 33

by deleting subsection (1) and substituting the following subsections:“(1) Despite section 43, tax at the rate of 10% is to be levied and paid for each year of assessment upon the amount of income in subsection (1A) of an approved company derived on or after the service approval date and during the period of its approval under subsection (2) (but not any extended period of its approval under subsection (5A)), from providing in or from Singapore any shipping‑related support service approved for it under subsection (2A).(1A) In subsection (1), the amount of the income is that which exceeds the base amount calculated in accordance with subsection (4).”;

by deleting “2016” in subsection (2) and substituting “2021”;

by inserting, immediately after subsection (2), the following subsection:“(2A) The Minister or appointed person must approve for the company one or more shipping‑related support services for the purposes of subsection (1) at the time of granting the approval, and may approve for the company additional shipping‑related support services during the period it is approved.”;

by deleting the words “subsection (1)” in subsection (4) and substituting the words “subsection (1A)”;

by inserting, immediately after the words “audited accounts” in subsection (4)(a), the words “(or such other accounts as the Minister or appointed person may approve for the company)”;

by inserting, immediately after the word “approval” in subsection (5), the following words “(but not the extended period of its approval under subsection (5A))”;

by inserting, immediately after subsection (5), the following subsections:“(5A) The Minister or appointed person may extend the period of any approval under subsection (2) for further periods of 5 years at any one time, and the extension is subject to the company satisfying such conditions as the Minister or appointed person has imposed on it at the time of granting the extension.(5B) The Minister or appointed person must approve for the company one or more shipping‑related support services for the purposes of subsection (5C) at the time of granting the extension, and may approve for the company additional shipping‑related support services during the extended period of its approval.(5C) Despite section 43, tax at the rate of 10% is levied and must be paid for each year of assessment upon the amount of income in subsection (5D) of an approved company derived on or after the service approval date and during the extended period of its approval under subsection (5A), from providing in or from Singapore any shipping‑related support service approved for it under subsection (5B).(5D) In subsection (5C), the amount of the income is that which exceeds the base amount calculated in accordance with subsection (5I).(5E) The approved company may, in lieu of subsection (5C), elect for the amount referred to in subsection (5F) of its income derived on or after the service approval date and during the extended period of its approval under subsection (5A), from providing in or from Singapore any shipping‑related support service approved for it under subsection (5B), to be taxed at a rate of 10.5%.(5F) In subsection (5E), the amount of the income is that which exceeds the base amount referred to in subsection (4).(5G) An election under subsection (5E) must be made in such form and manner and within such reasonable time as the Minister or appointed person may allow, and must be accompanied by such particulars as the Minister or appointed person determines.(5H) An election under subsection (5E) is irrevocable.(5I) The base amount referred to in subsection (5D) is determined as follows:

where the approved company had provided one or more of the shipping‑related support services approved for it under subsection (5B) at any time during the period of 3 years immediately before the date the extension is granted under subsection (5A), the base amount is ascertained by the following formula:where Ais the total net profit before tax as shown in the company’s audited accounts (or such other accounts as the Minister or appointed person may approve for the company) that is derived from providing all of those services during that period of 3 years; andBis the actual number of months (a period of less than a month being reckoned as one month) during that period in which those services were provided;

where the company had not provided any of the shipping‑related support services approved for it under subsection (5B) at any time during the period referred to in paragraph (a), the base amount is zero;

the Minister may in a particular case specify an amount in substitution for the amount referred to in paragraph (a) or (b).(5J) The base amount determined in accordance with subsection (5I) applies to the approved company for the entire duration of the extended period of its approval under subsection (5A), unless the Minister otherwise decides.”;

by deleting the words “subsection (4)” in the definition of “corporate service” in subsection (8) and substituting the words “subsections (4) and (5I)”;

by inserting, immediately after the definition of “freight forwarding and logistics service” in subsection (8), the following definition:“ “prescribed ship management services” has the same meaning as in section 13A(16);”;

by deleting the words “subsection (1)” in the definition of “service approval date” in subsection (8) and substituting the words “subsection (2A) or (5B)”;

by deleting the definition of “ship” in subsection (8) and substituting the following definition:“ “ship” has the same meaning as in section 2(1) of the Merchant Shipping Act (Cap. 179);”;

by deleting the definition of “ship management services” in subsection (8);

by deleting the words “any vessel” in paragraph (c) of the definition of “shipping‑related business” in subsection (8) and substituting the word “ship”;

by deleting paragraph (j) of the definition of “shipping‑related business” in subsection (8) and substituting the following paragraph:“(j)prescribed ship management services;”;

by deleting paragraph (c) of the definition of “shipping‑related support service” in subsection (8) and substituting the following paragraph:“(c)prescribed ship management services;”;

by deleting the words “subsection (1)” in subsection (9)(a) and substituting the words “subsections (1), (2A), (5B) and (5C)”; and

by deleting the words “subsection (4)” in subsection (9)(b) and substituting the words “subsections (4) and (5I)”.