Singapore legislation
Regulation 4
Regulation 4
Transition from tax treatment under section 34AA of Act to tax treatment under section 34AAA of Act
Subregulation 1
This regulation applies to an insurer that is a qualifying person under section 34AA of the Act for the year of assessment immediately before the initial year of assessment.
Subregulation 2
The amount of any profit or loss in respect of any financial instrument on revenue account of the insurer on the first day of the basis period of the initial year of assessment (called in this regulation the amount B) is computed using the formula specified in the second column of the Second Schedule opposite the description in the first column of that Schedule to which the financial instrument belongs.
Subregulation 3
Where the financial instrument on revenue account of the insurer is not an instrument mentioned in the first column of the Second Schedule, the amount B in respect of that financial instrument is computed on a basis that the Comptroller considers reasonable in the circumstances.
Subregulation 4
The amount B computed in accordance with paragraph (2) or (3) must not include —
any amount that is brought into account under section 34AA of the Act for the purpose of section 10 of the Act for any year of assessment before the initial year of assessment; and
any amount of losses that had been allowed under the Act to the insurer for any year of assessment before the initial year of assessment.
Subregulation 5
Where the amount B computed in accordance with paragraph (2) or (3) is a positive amount, it is treated as income of the insurer for the initial year of assessment.
Subregulation 6
Where the amount B computed in accordance with paragraph (2) or (3) is a negative amount, an amount equal to it (expressed as a positive amount) is to be allowed as a deduction against the insurer’s income for the initial year of assessment.