Singapore legislation
Regulation 3
of Income Tax (Concessionary Rate of Tax on Dividends — Aircraft Leasing Company) Order 2020
Regulation 3
Approval
Subregulation 1
The Minister or an authorised body may approve a company of an AALC for the purposes of this Order.
Subregulation 2
The Minister or authorised body may only approve a company if the Minister or authorised body is satisfied that all of the following conditions have been met:
the company is incorporated outside Singapore;
the company carries on, or intends to carry on, the business of leasing aircraft or aircraft engine outside Singapore;
the company intends to pay dividends derived from its income from its business of leasing aircraft or aircraft engine outside Singapore to the AALC and these payments will be used by the AALC for the AALC’s business of leasing aircraft or aircraft engine; (d)the AALC controls and manages the aircraft or aircraft engine that the company uses for its business of leasing aircraft or aircraft engine outside Singapore;
the AALC beneficially owns at least 25% of the equity interests of the company.
Subregulation 3
If, after a company has been approved under sub‑paragraph (2) —
the company ceases to be incorporated outside Singapore;
the company does not or ceases to carry on the business of leasing aircraft or aircraft engine outside Singapore;
the AALC does not or ceases to use the dividends that are paid to the AALC by the company out of the company’s income from its business of leasing aircraft or aircraft engine outside Singapore, for the AALC’s business of leasing aircraft or aircraft engine;
the AALC ceases to control or manage any aircraft or aircraft engine that the company uses for its business of leasing aircraft or aircraft engine outside Singapore; or (e)the AALC ceases to beneficially own at least 25% of the equity interests of the company,then the AALC must inform the Minister or authorised body of the occurrence of the event, and the approved company ceases to be approved beginning on the date of the occurrence.