Singapore legislation

Clause 7

Amendment of section 43A

Section 43A of the principal Act is hereby amended by deleting subsection (2) thereof and substituting therefor the following subsections: —“(2) In subsection (1) of this section,“off-shore income” means —

(a)

income derived from loans made to persons outside Singapore to be used outside Singapore where the interest on such loans is not borne, directly or indirectly, by a person resident in Singapore or a permanent establishment in Singapore; and

(b)

fees, commission or interest received from advising or confirming off-shore letters of credit from transactions in bills drawn on such letters of credit.(3) For the purpose of paragraph (b) of subsection (2) of this section, an off-shore letter of credit is a letter of credit subject to the following conditions: —

(a)

the letter of credit is opened in currencies other than Singapore dollars;

(b)

neither the buyer nor the seller who is a party to the letter of credit is a resident of Singapore or a permanent establishment in Singapore; and

(c)

the goods covered in the letter of credit are not exported from or imported into Singapore.”.

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