Singapore legislation
Regulation 5
of Income Tax (Concessionary Rate of Tax for Financial Sector Incentive Companies) Regulations 2017
Regulation 5
13.5% tax payable on qualifying income of financial sector incentive (standard tier) company
Subregulation 1
Tax is payable at the rate of 13.5% on the following income of a financial sector incentive (standard tier) company:
during the period between 1 June 2017 and 31 December 2023 (both dates inclusive) —
income from any of the activities specified in Part 1 of the First Schedule; and
interest from any deposit held by the company as a corporate futures member as a margin for any transaction in relation to any activity mentioned in paragraph 1(e), (g) or (h) of Part 1 of the First Schedule;
during the period between 15 February 2023 and 31 December 2023 (both dates inclusive), income from any of the additional activities specified in Part 2 of the First Schedule; and
on or after 1 January 2024, being —
income from any of the activities specified in the Third Schedule; and
interest from any deposit held by the company as a corporate futures member as a margin for any transaction in relation to any activity mentioned in paragraph 1(k), (o) or (p) of the Third Schedule.
Subregulation 2
Unless the Minister or approving authority otherwise determines, paragraph (1) does not apply to the following income in the circumstances mentioned in paragraph (3):
any interest derived from qualifying debt securities issued during the period from 10 May 1999 to 31 December 2028 (both dates inclusive);
any discount from qualifying debt securities issued during the period from 17 February 2006 to 31 December 2028 (both dates inclusive);
any amount payable from Islamic debt securities which are qualifying debt securities, and issued during the period from 1 January 2005 to 31 December 2028 (both dates inclusive);
any early redemption fee or redemption premium from qualifying debt securities issued during the period from 15 February 2007 to 31 December 2028 (both dates inclusive).
Subregulation 3
The circumstances mentioned in paragraph (2) are —
50% or more of those securities which are outstanding at any time during the life of the issue is beneficially held or funded, directly or indirectly, by related parties of the issuer of those securities; and (b)either —
the financial sector incentive (standard tier) company is a related party of the issuer of those securities; or
the funds used by the financial sector incentive (standard tier) company to acquire those securities are obtained, directly or indirectly, from any related party of the issuer of those securities.
Subregulation 4
Paragraph (1) does not apply to any income derived by a financial sector incentive (standard tier) company from any qualifying debt securities issued during the applicable period mentioned in paragraph (2), if the issuer of such securities, or such other person as the Monetary Authority of Singapore may direct, has not furnished to the Monetary Authority of Singapore in respect of the issue of those securities —
a return on those securities within such period as the Monetary Authority of Singapore may specify; and
such other particulars in connection with those securities as the Monetary Authority of Singapore may require.
Subregulation 5
[Deleted by S 398/2025 wef 15/02/2023]