Singapore legislation

Regulation 7AA

of Income Tax (Exemption and Concessionary Tax Rate for Income from Composite Insurance Business) Regulations

Regulation 7AA

Income derived on or after 1 July 2021 of approved captive insurer exempt from tax

Amended byS 214/2023 wef 31/12/2021S 214/2023 wef 31/12/2021S 214/2023 wef 28/04/2023S 214/2023 wef 31/12/2021S 493/2021 wef 01/07/2021

Subregulation 1

Subject to the condition in paragraph (3), the income specified in paragraph (2) derived on or after 1 July 2021 by an approved captive insurer (X) in a basis period for any year of assessment is exempt from tax, if its approval was granted at any time before 1 July 2017.

Subregulation 2

For the purposes of paragraph (1), the income is —

(a)

income of the type and amount in regulation 7AA of the Income Tax (Exemption and Concessionary Tax Rate for Income from General Insurance Business) Regulations (Rg 26) (called in these Regulations the General Insurance Regulations), that would be exempt from tax had X been an approved captive insurer to which regulation 7AA(1) of the General Insurance Regulations applies; and

(b)

income of the type and amount in regulation 5C of the Income Tax (Exemption and Concessionary Tax Rate for Income from Life Insurance Business) Regulations (Rg 28) (called in this regulation the Life Insurance Regulations), that would be exempt from tax had X been an approved captive insurer to which regulation 5C(1) of the Life Insurance Regulations applies.

Subregulation 3

Amended byS 214/2023 wef 31/12/2021S 214/2023 wef 31/12/2021S 214/2023 wef 28/04/2023S 214/2023 wef 31/12/2021S 493/2021 wef 01/07/2021

For the purposes of paragraph (1), the condition is that at all times in the basis period in which the income is derived, all the functions in the following are undertaken by X, by a company incorporated in Singapore, or by personnel located in Singapore who are employed by a company incorporated outside Singapore:

(a)

either or both of the following:

(i)

ensuring compliance with any requirement or any direction, notice or other document issued under the Insurance Act 1966;

(ii)

ensuring compliance with any requirement or any direction, notice or other document issued under the Monetary Authority of Singapore Act 1970 or the Financial Services and Markets Act 2022;

(b)

ensuring compliance with any requirement relating to financial accounting, auditing and reporting under the Companies Act 1967;

(c)

the day-to-day management of the X’s business.

Read in full context — Income Tax (Exemption and Concessionary Tax Rate for Income from Composite Insurance Business) Regulations →