Singapore legislation
Regulation 3
Regulation 3
Exemption
Subregulation 1
Subject to sub-paragraphs (3) and (4), a qualifying payment which is made to a person referred to in sub-paragraph (6) by —
a bank; (aa)[Deleted by S 330/2024 wef 15/04/2024](b)a merchant bank; or (c)a finance company,shall be exempt from tax if the qualifying payment —
is liable to be made during the period from 1st April 2011 to 31 December 2026 (both dates inclusive) under —
a contract which took effect before 1st April 2011;
a contract which is extended or renewed, where the extension or renewal took effect before 1st April 2011; or
a debt security which was issued before 1st April 2011; (ii)is liable to be made under a contract which takes effect on a date which falls within the period from 1st April 2011 to 31 December 2026 (both dates inclusive);
is liable to be made —
under a contract which is extended or renewed, where the extension or renewal takes effect on a date which falls within the period from 1st April 2011 to 31 December 2026 (both dates inclusive); and
on or after the date on which such extension or renewal takes effect;
(iiia)is liable to be made —
under a contract which is varied, where the variation takes effect on a date which falls within the period from 4 November 2022 to 31 December 2026 (both dates inclusive); and (B)on or after the date on which the variation takes effect; or
is liable to be made under a debt security which is issued on a date which falls within the period from 1st April 2011 to 31 December 2026 (both dates inclusive).
Subregulation 2
Subject to sub-paragraphs (3) and (5), a qualifying payment which is made to a person referred to in sub-paragraph (6) by a person (referred to in this Notification as an approved payer) who —
holds a capital markets services licence under the Securities and Futures Act 2001 for dealing in capital markets products and advising on corporate finance;
is involved or will be involved in the underwriting of debt or equity issuances; and
is approved for the purposes of this Notification by the Minister or an authorised body, subject to such conditions as the Minister or authorised body, as the case may be, may impose,shall be exempt from tax if the qualifying payment —
is liable to be made during the period from the date on which the approval referred to in sub-paragraph (c) is given (referred to in this Notification as the approval date) to 31 December 2026 (both dates inclusive) under —
a contract which took effect before the approval date;
a contract which is extended or renewed, where the extension or renewal took effect before the approval date;
(BA)a contract which is varied, where the variation took effect before the approval date, being a date that is on or after 4 November 2022; or
a debt security which was issued before the approval date;
is liable to be made under a contract which takes effect on a date which falls within the period from the approval date to 31 December 2026 (both dates inclusive);
is liable to be made —
under a contract which is extended or renewed, where the extension or renewal takes effect on a date which falls within the period from the approval date to 31 December 2026 (both dates inclusive); and
on or after the date on which such extension or renewal takes effect;
(iiia)is liable to be made —
under a contract which is varied, where the variation takes effect on a date which falls within the period from 4 November 2022 or the approval date (whichever is later) to 31 December 2026 (both dates inclusive); and (B)on or after the date on which the variation takes effect; or
is liable to be made under a debt security which is issued on a date which falls within the period from the approval date to 31 December 2026 (both dates inclusive).
Subregulation 3
The exemptions referred to in sub-paragraphs (1) and (2) shall not apply to any qualifying payment made by a bank, merchant bank, finance company or an approved payer, as the case may be, in connection with an arrangement referred to in section 33(1) of the Act.
Subregulation 4
Sub-paragraph (1) does not apply to any qualifying payment liable to be made —
under a contract mentioned in sub-paragraph (1)(ii), (iii) or (iiia), that is varied with effect from a date on or after 1 January 2027; and (b)on or after the date on which such variation takes effect.
Subregulation 5
Sub-paragraph (2) does not apply to any qualifying payment liable to be made —
under a contract mentioned in sub-paragraph (2)(ii), (iii) or (iiia), that is varied with effect from a date on or after 1 January 2027; and (b)on or after the date on which such variation takes effect.
Subregulation 6
The person referred to in sub-paragraphs (1) and (2), to whom the qualifying payment is made, is —
a person who is not resident in Singapore and who does not have a permanent establishment in Singapore; or (b)a person who is not resident in Singapore and who carries on any operation in Singapore through a permanent establishment in Singapore, where —
the contract under which the qualifying payment is made is not entered into through that operation; or (ii)the debt security under which the qualifying payment is made is not acquired by that person through that operation.