Clause 16

in subsection (2)(a), after “for that basis period”, insert “except as provided in subsection (2CA)”;

after subsection (2C), insert —“(2CA) Subject to subsection (2CB), subsection (2)(a) does not apply to the following provisions and allowance written back by a bank or qualifying finance company in the basis period for the year of assessment 2022 or any subsequent year of assessment:

a provision made for expected credit losses of any of the following loans that are not credit‑impaired, being losses that were recognised in accordance with FRS 109 or SFRS(I) 9 (as the case may be) in the basis period for the year of assessment 2021 or any preceding year of assessment:

a loan to and placement with any financial institution in Singapore or any other country;

a loan to the Government or the government of any other country;

a loan to and placement with the Monetary Authority of Singapore or the central bank or other monetary authority of any other country;

a loan to any statutory body or corporation guaranteed by the Government or the government of any other country;

such other loan or advance as may be prescribed by rules made under section 7;

a provision made for expected credit losses of securities issued or guaranteed by the Government or the government of any country that are not credit‑impaired, being losses that were recognised in accordance with FRS 109 or SFRS(I) 9 (as the case may be) in the basis period for the year of assessment 2021 or any preceding year of assessment;

an allowance for any loan mentioned in paragraph (a)(i) to (v) or any investment in securities mentioned in paragraph (b) where the loan or securities are not credit‑impaired, being allowances that were recognised in the retained earnings account of the bank or qualifying finance company as required by an MAS notice in the basis period for the year of assessment 2021 or any preceding year of assessment.(2CB) Subsection (2CA) applies only if the bank or qualifying finance company is able to directly identify, to the satisfaction of the Comptroller, the amount of the provision or allowance mentioned in paragraph (a), (b) or (c) of that subsection that was written back in the basis period for the year of assessment concerned.”;

in subsection (6B), replace “2024” with “2029”; and

in subsection (7), delete the definition of “capital funds”.