Singapore legislation
Regulation 13
of Income Tax (Shipping Enterprises — Section 13(4) Exemption) Notification 2025
Regulation 13
Exemption of qualifying payments under applicable finance lease entered into by approved international shipping enterprise or approved shipping investment enterprise
Subregulation 1
Subject to this paragraph, paragraph 14 and the conditions imposed by the Minister under section 13(4) of the Act, a qualifying payment that an approved international shipping enterprise or approved shipping investment enterprise (X) is liable to make between 24 February 2015 and 11 December 2018 (both dates inclusive) to a specified person under an applicable finance lease entered into by X, is exempt from tax.
Subregulation 2
Where one or both of the following apply:
any ship that is not a foreign ship is leased under the applicable finance lease;
any foreign ship leased under the applicable finance lease is disposed of,then the exemption under sub‑paragraph (1) applies only to the amount of the qualifying payment derived by the formulawhere —
A is the part of the principal of the applicable finance lease that is attributable to the leasing of those foreign ships that have not been disposed of;
B is the principal of the applicable finance lease; and
C is the amount of the qualifying payment.
Subregulation 3
The exemption under sub‑paragraph (1) does not apply to any qualifying payment liable to be made —
after the day that the applicable finance lease ceases to be treated as a sale pursuant to regulations made under section 10C of the Act; or
on or after the day that the approval of the approved international shipping enterprise or approved shipping investment enterprise (as the case may be) as such is revoked or withdrawn.
Subregulation 4
Where —
sub‑paragraph (1) has operated to exempt from tax any qualifying payment liable to be made under an applicable finance lease mentioned in that sub‑paragraph; and
the term of the approval of X as an approved international shipping enterprise or approved shipping investment enterprise (as the case may be) subsequently expires,then any qualifying payment that X is liable to make under that applicable finance lease on or after the date of the expiry to a specified person mentioned in that sub‑paragraph, is also exempt from tax.
Subregulation 5
The exemption under sub‑paragraph (4) is subject to the conditions mentioned in sub‑paragraph (1) and to sub‑paragraphs (2) and (3)(a) and paragraph 14, and for this purpose those provisions apply as if a reference to an approved international shipping enterprise or approved shipping investment enterprise were a reference to an international shipping enterprise or a shipping investment enterprise, as the case may be.