Singapore legislation

Regulation 2

of Income Tax (Income from Finance Leases) Regulations

Regulation 2

Definitions

In these Regulations —“leveraged lease” is a finance lease the parties to which include a lessor, lessee and one or more long-term creditors who provide a substantial part of the financing for the acquisition of the leased machinery or plant without any recourse to the lessor for the repayment of the loan;“limited use asset” means any machinery or plant —

(a)

for which there is no other user;

(b)

where it is not commercially feasible for the lessor to lease the machinery or plant to another user; or

(c)

where the costs of dismantling and reassembling the machinery or plant are so high as to render a subsequent lease not economically viable;“sale and lease-back transaction” means a transaction where the asset is sold and subsequently leased back to the seller.

Definition

“leveraged lease” is a finance lease the parties to which include a lessor, lessee and one or more long-term creditors who provide a substantial part of the financing for the acquisition of the leased machinery or plant without any recourse to the lessor for the repayment of the loan;

Definition

“limited use asset” means any machinery or plant —

(a)

for which there is no other user;

(b)

where it is not commercially feasible for the lessor to lease the machinery or plant to another user; or

(c)

where the costs of dismantling and reassembling the machinery or plant are so high as to render a subsequent lease not economically viable;

Definition

“sale and lease-back transaction” means a transaction where the asset is sold and subsequently leased back to the seller.