Singapore legislation

Regulation 3

of Income Tax (Payment by Bank in Singapore to Bank outside Singapore — Section 13(4) Exemption) Notification 2024

Regulation 3

Exemption

Amended byS 770/2024 wef 04/11/2022S 770/2024 wef 04/11/2022S 770/2024 wef 03/10/2024S 770/2024 wef 03/10/2024

Subregulation 1

Amended byS 770/2024 wef 04/11/2022S 770/2024 wef 04/11/2022S 770/2024 wef 03/10/2024

Subject to sub‑paragraphs (2), (3) and (4), where a qualifying payment is made by a bank in Singapore to a bank outside Singapore, the qualifying payment is exempt from tax if the qualifying payment —

(a)

is liable to be made at any time during the period from 1 April 2021 to 31 December 2031 (both dates inclusive) under —

(i)

a contract which took effect before 1 April 2021;

(ii)

a contract which was extended or renewed, where the extension or renewal took effect before 1 April 2021; or

(iii)

a debt security which was issued before 1 April 2021; (b)is liable to be made under a contract which takes effect on a date which falls within the period from 1 April 2021 to 31 December 2031 (both dates inclusive);

(c)

is liable to be made —

(i)

under a contract which is extended or renewed, where the extension or renewal takes effect on a date which falls within the period from 1 April 2021 to 31 December 2031 (both dates inclusive); and

(ii)

on or after the date on which the extension or renewal takes effect; (ca)is liable to be made —

(i)

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 2031 (both dates inclusive); and

(ii)

on or after the date on which the variation takes effect; or

(d)

is liable to be made under a debt security which is issued on a date which falls within the period from 1 April 2021 to 31 December 2031 (both dates inclusive).

Subregulation 2

The exemption in sub‑paragraph (1) only applies —

(a)

if the bank outside Singapore is not resident in Singapore and does not have a permanent establishment in Singapore; or (b)if the bank outside Singapore is not resident in Singapore and carries on an operation in Singapore through a permanent establishment in Singapore, and —

(i)

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 the bank outside Singapore through that operation.

Subregulation 3

The exemption in sub‑paragraph (1) does not apply to any qualifying payment made by a bank in Singapore in connection with an arrangement mentioned in section 33(1) of the Act.

Subregulation 4

Amended byS 770/2024 wef 03/10/2024

The exemption in sub-paragraph (1) does not apply to any qualifying payment liable to be made —

(a)

under a contract mentioned in sub-paragraph (1)(b), (c) or (ca), that is varied with effect from a date on or after 1 January 2032; and

(b)

on or after the date on which the variation takes effect.