Income Tax Act 1947 · 2020 Revised Edition · Part 3 · Imposition of Income Tax
10I. Additional Tier 1 capital instruments
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Any distribution by —
a bank incorporated in Singapore with a full banking licence; or
a designated financial holding company that has a subsidiary that is a bank mentioned in paragraph (a),that is liable to be made in respect of an AT1 instrument in the basis period for the year of assessment 2015 or a subsequent year of assessment is deemed for the purposes of this Act, and for that year of assessment, as interest derived from a debt security.
Any distribution by —
a local licensed insurer; or
a designated financial holding company that has a subsidiary that is a local licensed insurer,that is liable to be made in respect of an AT1 instrument issued on or after 1 January 2025, is deemed, for the purposes of this Act, as interest derived from a debt security.
In this section —
“AT1 instrument” means a security (not being shares) commonly known as Additional Tier 1 capital instrument which —
is issued in Singapore but not through a branch situated outside Singapore; and
satisfies any of the following:
according to MAS Notice 637, may be used to satisfy the capital adequacy requirement of a bank incorporated in Singapore with a full banking licence, under section 10(2) of the Banking Act 1970; (ii)according to a direction issued under section 28(3) of the Monetary Authority of Singapore Act 1970 as in force immediately before the date of commencement of the Financial Holding Companies Act 2013 and to MAS Notice 637, may be used to satisfy the capital adequacy requirement of any other financial institution within the meaning of section 27A(6) of the Monetary Authority of Singapore Act 1970 as in force immediately before the date of commencement of the Financial Holding Companies Act 2013;
according to MAS Notice FHC-N637 and MAS Notice FHC-N133, may be used to satisfy the capital adequacy requirement of a designated financial holding company;
company
“company” means any company incorporated or registered under any law in force in Singapore or elsewhere;
according to MAS Notice 133, may be included as Tier 1 Capital of a local licensed insurer for the purpose of section 17 of the Insurance Act 1966;
“designated financial holding company” means a financial holding company that is designated under section 4 of the Financial Holding Companies Act 2013;
“full banking licence” has the meaning given by the Banking (Fees) Notification;
“local licensed insurer” means an insurer that is for the time being licensed under section 11 of the Insurance Act 1966, and that is incorporated, formed or established in Singapore;
“MAS Notice FHC-N133” means the notice commonly known as MAS Notice FHC-N133 that is issued by the Monetary Authority of Singapore under section 36(1) of the Financial Holding Companies Act 2013, and includes any notice that replaces it;
“MAS Notice FHC-N637” means the notice commonly known as MAS Notice FHC-N637 that is issued by the Monetary Authority of Singapore under sections 3(1), 36(1), 37(1), 38(2) and 60(1) of the Financial Holding Companies Act 2013, and includes any notice that replaces it;
“MAS Notice 133” means the notice commonly known as MAS Notice 133 that is issued by the Monetary Authority of Singapore under sections 17 and 154(4) of the Insurance Act 1966, and includes any notice that replaces it;
“MAS Notice 637” means the notice commonly known as MAS Notice 637 that is issued by the Monetary Authority of Singapore pursuant to sections 10(2), 10A(1), 10B(1) and 65(2) of the Banking Act 1970, and includes any notice that replaces it;
“subsidiary”, in relation to a designated financial holding company, has the meaning given by section 5 of the Companies Act 1967, except that any reference to “corporation” in that provision is to be construed as if the term did not exclude a co-operative society.[10O