Singapore legislation

Clause 51

Amendment of section 43ZF

Section 43ZF of the principal Act is amended —

(a)

by deleting the words “1st June 2011 and 31st May 2021” in subsection (2) and substituting the words “1 June 2011 and 31 December 2026”;

(b)

by deleting the words “subsection (1A)” in subsection (4) and substituting the words “subsection (1A) or (5E)”;

(c)

by deleting the words “the extended period” in subsections (5) and (5B) and substituting in each case the words “any extended period”;

(d)

by inserting, immediately after the words “subsection (5C)” in subsection (5B), the words “or (5CA)”;

(e)

by deleting subsection (5C) and substituting the following subsections:“(5C) Despite section 43, where an approved company whose period of approval is extended under subsection (5A) did not make an election under subsection (5F) for the extended period, then tax at the rate of A% is levied and must be paid for each year of assessment upon the amount of its income in subsection (5D) that is derived on or after the service approval date and during the extended period, from providing in or from Singapore any shipping-related support service approved for it under subsection (5B).(5CA) Despite section 43, where an approved company whose period of approval is extended under subsection (5A) made an election under subsection (5F) for the extended period, then tax at the rate of (0.5 + A)% is levied and must be paid for each year of assessment upon the amount of its income in subsection (5E) that is derived on or after the service approval date and during the extended period, from providing in or from Singapore any shipping-related support service approved for it under subsection (5B).(5CB) In subsections (5C) and (5CA), “A” is the concessionary rate of tax applicable to the income of the approved company from providing in or from Singapore any shipping-related support service approved for it under subsection (2A) or (5B) (as the case may be) immediately before the commencement of the extended period concerned of its approval under subsection (5A).”;

(f)

by deleting subsections (5E) and (5F) and substituting the following subsections:“(5E) In subsection (5CA), the amount of the income is that which exceeds the base amount immediately before the commencement of the extended period concerned of its approval under subsection (5A), which is calculated in accordance with subsection (4) or (5I), as the case may be.(5F) An approved company whose period of approval is extended under subsection (5A) may make an election for an amount of its income mentioned in subsection (5CA) that is derived on or after the service approval date and during the extended period, from providing in or from Singapore any shipping-related support service approved for it under subsection (5B), to be taxed in accordance with subsection (5CA).”;

(g)

by deleting the words “subsection (5E)” in subsection (5G) and substituting the words “subsection (5F)”;

(h)

by deleting subsection (5H) and substituting the following subsection:“(5H) An election under subsection (5F) is irrevocable for the extended period of its approval in which the election is made.”;

(i)

by deleting the words “subsection (5D)” in subsection (5I) and substituting the words “subsection (5D) or (5E)”;

(j)

by inserting, immediately after the words “extended period” in subsection (5J), the word “concerned”; and

(k)

by deleting the words “and (5C)” in subsection (9)(a) and substituting the words “, (5C) and (5CA)”.

Read in full context — Income Tax (Amendment) Bill →