Singapore legislation
Regulation 5
of Income Tax (Shipping Enterprises — Section 13(4) Exemption) Notification 2025
Regulation 5
General exemption of qualifying payments under applicable loan obtained by shipping enterprise
Subregulation 1
Subject to sub‑paragraph (2), paragraphs 7 and 9 and the conditions imposed by the Minister under section 13(4) of the Act, a qualifying payment (excluding any pre‑delivery payment amount) that a shipping enterprise is liable to make on or after 24 February 2015 to a specified person under an agreement for an applicable loan obtained by the shipping enterprise, is exempt from tax.
Subregulation 2
Where one or more of the following apply:
the applicable loan is obtained for more than one purpose, any one of which is not specified in paragraph 3(2);
any of the purposes specified in paragraph 3(2) for which the applicable loan is obtained relates to any ship that —
does not meet the registration requirement; or
is under construction on the applicable date;
any ship to which the applicable loan relates and that meets the registration requirement is disposed of;
any ship to which the applicable loan relates and that met the registration requirement described in paragraph 2(2)(a)(i), ceases to be registered or provisionally registered under the Merchant Shipping Act 1995,then the exemption under sub‑paragraph (1) applies only to the amount of the qualifying payment derived by the formulawhere —
A is the principal of the applicable loan;
B is the part of the principal of the applicable loan that is not attributable to any purpose specified in paragraph 3(2);
C is the part of the principal of the applicable loan that is attributable to a purpose specified in paragraph 3(2) but that relates to each ship that —
does not meet the registration requirement;
meets the registration requirement but is disposed of; or
met the registration requirement described in paragraph 2(2)(a)(i) but ceases to be registered or provisionally registered under the Merchant Shipping Act 1995; and
D is the amount of the qualifying payment (excluding any pre‑delivery payment amount).