Singapore legislation
Regulation 3
of Income Tax (Shipping Enterprises — Section 13(4) Exemption) Notification 2025
Regulation 3
Meaning of “applicable loan” obtained by shipping enterprise
Subregulation 1
In this Notification, an applicable loan obtained by a shipping enterprise (including an approved international shipping enterprise and an approved shipping investment enterprise) is a loan (or other arrangement similar to a loan) obtained on or before 31 May 2021 by the shipping enterprise —
solely for one or more of the purposes specified in sub‑paragraph (2); or
for purposes which include one or more of the purposes specified in sub‑paragraph (2).
Subregulation 2
The purposes mentioned in sub‑paragraph (1) are —
the acquisition by the shipping enterprise of one or more ships, at least one of which meets the registration requirement;
the acquisition by the shipping enterprise of all the shares of a special purpose vehicle that —
on the applicable date has sole legal and beneficial ownership of one or more ships, each of which meets the registration requirement; and
does not own any foreign ship on the applicable date;
the acquisition by the shipping enterprise of all the shares issued by a special purpose vehicle in a single issue (called in this paragraph the additional shares), where —
the shipping enterprise has sole legal and beneficial ownership of all the shares of the special purpose vehicle immediately before the additional shares are issued;
the purpose or purposes for the acquisition of the additional shares is or are or include one or both of the following:
the financing of the acquisition by the special purpose vehicle of one or more ships, each of which meets the registration requirement;
the financing of the costs incurred for lengthening or conversion works carried out on one or more ships (each of which meets the registration requirement) owned by the special purpose vehicle;
the special purpose vehicle has sole legal and beneficial ownership of the following, where applicable:
each ship mentioned in sub‑paragraph (ii)(A) upon the acquisition of the ship;
each ship mentioned in sub‑paragraph (ii)(B) on which the lengthening or conversion works are carried out; and
the special purpose vehicle does not own any foreign ship on the applicable date;
the grant of a loan by the shipping enterprise to a special purpose vehicle, where —
the shipping enterprise has sole legal and beneficial ownership of all the shares of the special purpose vehicle;
the purpose or purposes for which the loan is granted by the shipping enterprise is or are or include one or both of the following:
the financing of the acquisition by the special purpose vehicle of one or more ships, each of which meets the registration requirement;
the financing of the costs incurred for lengthening or conversion works carried out on one or more ships (each of which meets the registration requirement) owned by the special purpose vehicle;
the special purpose vehicle has sole legal and beneficial ownership of the following, where applicable:
each ship mentioned in sub‑paragraph (ii)(A) upon the acquisition of the ship;
each ship mentioned in sub‑paragraph (ii)(B) on which the lengthening or conversion works are carried out; and
the special purpose vehicle does not own any foreign ship on the applicable date;
the financing of any costs incurred for lengthening or conversion works carried out on one or more ships (at least one of which meets the registration requirement) owned by the shipping enterprise; and
the financing of qualifying payments on a previous loan obtained by the shipping enterprise solely for one or more of the following purposes, or for purposes which include one or more of the following:
the acquisition of one or more ships, at least one of which meets the registration requirement at the time the previous loan is entered into;
the acquisition of all the shares of a special purpose vehicle that, at the time the previous loan is entered into, has sole legal and beneficial ownership of one or more ships, each of which meets the registration requirement, and does not own any foreign ship;
the acquisition of all the shares issued by a special purpose vehicle in a single issue in the circumstances mentioned in sub‑paragraph (c)(i), (ii) and (iii), where the special purpose vehicle does not own any foreign ship at the time the previous loan is entered into;
the grant of a loan by the shipping enterprise to a special purpose vehicle in the circumstances mentioned in sub‑paragraph (d)(i), (ii) and (iii), where the special purpose vehicle does not own any foreign ship at the time the previous loan is entered into;
the financing of any costs incurred for lengthening or conversion works carried out on one or more ships (at least one of which meets the registration requirement at the time the previous loan is entered into) owned by the shipping enterprise.
Subregulation 3
For the purposes of sub‑paragraph (2)(b), (c), (d)(i) and (f)(ii) and (iii), any treasury share in a special purpose vehicle is to be disregarded when determining whether a shipping enterprise —
has sole legal and beneficial ownership of all the shares of the special purpose vehicle; or
acquires all the shares of or issued by the special purpose vehicle.
Subregulation 4
A reference to the acquisition or the financing of the acquisition of one or more ships in a provision in the first column of the following table, includes a reference to the financing of any relevant fees and costs and any relevant premiums if (and only if) the circumstance in the second column of the table corresponding to that provision exists:First columnSecond column(a)Sub‑paragraph (2)(a) or (f)(i)The loan or previous loan (as the case may be) obtained by the shipping enterprise is for both the acquisition of the ship or ships by the shipping enterprise and the financing of the relevant fees and costs and the relevant premiums(b)Sub‑paragraph (2)(c)(ii)(A) (including that provision as applied in sub‑paragraph (2)(f)(iii))The acquisition by the shipping enterprise of the additional shares of the special purpose vehicle is for both the financing of the acquisition of the ship or ships by the special purpose vehicle and the financing of the relevant fees and costs and the relevant premiums(c)Sub‑paragraph (2)(d)(ii)(A) (including that provision as applied in sub‑paragraph (2)(f)(iv))The loan granted by the shipping enterprise to the special purpose vehicle is for both the financing of the acquisition of the ship or ships by the special purpose vehicle and the financing of the relevant fees and costs and the relevant premiums
Subregulation 5
A reference in sub‑paragraph (2)(c)(ii)(B), (d)(ii)(B), (e) or (f)(v) to the financing of any costs incurred for lengthening or conversion works carried out on one or more ships includes a reference to the financing of any relevant fees and costs and any relevant premiums if (and only if) the loan or previous loan (as the case may be) obtained by the shipping enterprise is for both the financing of the costs incurred for the lengthening or conversion works and the financing of the relevant fees and costs and the relevant premiums.