Clause 16

by deleting the words “(1B) and” in subsection (1) and substituting the words “(1G) and”;

by deleting the word “and” at the end of paragraph (cb) of subsection (1), and by inserting immediately thereafter the following paragraphs:“(cc)on or after 12 December 2018 from the chartering or finance leasing by the approved shipping investment enterprise of any sea‑going ship, for use by the lessee outside the limits of the port of Singapore, if the ship was —

acquired by an approved related party before or during the period of its approval under subsection (3); and

chartered, or leased under a finance lease, by the approved related party to the approved shipping investment enterprise; (cd)on or after 12 December 2018 from foreign exchange and risk management activities that are carried out in connection with and incidental to an activity mentioned in paragraph (cc); and”;

by renumbering subsections (1AA) and (1B) as subsections (1F) and (1G), respectively;

by inserting, immediately after subsection (1A), the following subsections:“(1B) In relation to income mentioned in subsection (1)(cc) or (cd), subsection (1) continues to apply to a shipping investment enterprise the approval of which has expired or been withdrawn, but that continues to derive such income, if both the shipping investment enterprise and the related party mentioned in subsection (1)(cc) have, by the date of the expiry or before the withdrawal, fulfilled all the conditions of their respective approvals under subsection (3).(1C) For the purpose of subsection (1B), the shipping investment enterprise is treated under this section as an approved shipping investment enterprise.(1D) Subsection (1)(ca) and (cc) does not apply to income derived on or after 12 December 2018 from the chartering or finance leasing of a sea‑going ship that is acquired by the approved shipping investment enterprise or the approved related party by way of a finance lease entered into with an entity that was not an approved related party.(1E) Subsections (1)(cc) and (cd) and (1B) apply to income derived by an approved shipping investment enterprise in relation to a ship acquired by the related party before the period of the approval of the related party, if and only if the approved shipping investment enterprise is approved on or after 1 April 2008.”;

by inserting, immediately after the words “shipping investment enterprise” in subsection (2), the words “or a related party of an approved shipping investment enterprise”; (f)by deleting the words “and (cb)” in subsection (6) and substituting the words “, (cb), (cc) and (cd)”; (g)by inserting, immediately after the words “any sea‑going ship” in the definition of “finance leasing” in subsection (20), the words “(including any arrangement or agreement in connection with such leasing)”;

by inserting, immediately after the definition of “registered business trust” in subsection (20), the following definition:“ “related party”, in relation to an approved shipping investment enterprise, means any entity that is related to the approved shipping investment enterprise in such manner as may be prescribed by rules made under section 7;”;

by deleting the definition of “tax exempt period” in subsection (20) and substituting the following definition:“ “tax exempt period”, in relation to an approved shipping investment enterprise, means —

in a case where the enterprise is approved on or after 1 April 2008 and —

acquired; or (ii)chartered, or leased under a finance lease, from a related party, a sea-going ship for use outside the limits of the port of Singapore before the date of approval of the enterprise — the period from the date of that approval to the date where no income of any sea‑going ship of that enterprise is eligible for exemption from tax under subsection (1) (both dates inclusive); or (b)in any other case — the period from the date the enterprise —

first acquired; or (ii)first chartered, or leased under a finance lease, from a related party, during the period of approval of the enterprise, a sea‑going ship for use outside the limits of the port of Singapore, to the date where no income of any sea‑going ship of that enterprise is eligible for exemption from tax under subsection (1) (both dates inclusive).”; and

by inserting, immediately after subsection (20), the following subsection:“(21) Rules made for the purpose of the definition of “related party” in subsection (20) may be made to take effect from (and including) 12 December 2018.”.