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Singapore legislation

Regulation 2

of Inland Revenue Authority of Singapore (Prescribed Interest Rate for Section 17D) Regulations 2024

Regulation 2

Prescribed interest rate for failure to pay claim amount

Subregulation 1

For the purposes of section 17D of the Act, the prescribed rate of interest on the outstanding claim amount mentioned in that section is 4.5% points above the 3‑month compounded SORA for the period —

(a)

starting on the date after the end of the payment period mentioned in that section; and (b)ending on the date the claim amount mentioned in that section is paid to the Authority in full.

Subregulation 2

In this regulation —

Definition

“3‑month compounded SORA”, in relation to a period, means —

(a)

if the period or a part of the period falls within the 6‑month period beginning on 1 April of a calendar year, then, for the period or the part (as the case may be) — the compounded average of the SORA values for a 3‑month period computed by the Monetary Authority of Singapore using the prescribed methodology, and published —

(i)

on its Internet website at https://www.mas.gov.sg; or

(ii)

where the website is unavailable to the public, in any other form that is readily accessible by the public,on either of the following days:

(iii)

if 1 March of that calendar year is a business day — that day;

(iv)

if 1 March of that calendar year is not a business day — the last business day in February of that calendar year; or

(b)

if the period or a part of the period falls within the 6‑month period beginning on 1 October of a calendar year, then, for the period or the part (as the case may be) — the compounded average of the SORA values for a 3‑month period computed by the Monetary Authority of Singapore using the prescribed methodology, and published —

(i)

on its Internet website at https://www.mas.gov.sg; or

(ii)

where the website is unavailable to the public, in any other form that is readily accessible by the public,on either of the following days:

(iii)

if 1 September of that calendar year is a business day — that day;

(iv)

if 1 September of that calendar year is not a business day — the last business day in August of that calendar year;

Definition

“bank holiday” means a day declared by the Monetary Authority of Singapore to be a bank holiday under section 60(1) of the Banking Act 1970;

Definition

“business day” means any day other than a Saturday, Sunday, public holiday or bank holiday;

Definition

“prescribed methodology” means the methodology set out in the document called “Compounded Singapore Overnight Rate Average Index (“SORA Index”), Compounded SORA and MAS Floating Rate Notes (“MAS FRN”): A User Guide” dated 16 March 2021;

Definition

“Singapore Overnight Rate Average” or “SORA” means the volume‑weighted average rate of borrowing transactions in the unsecured overnight interbank Singapore dollar cash market in Singapore between 8 a.m. and 6.15 p.m., as published by the Monetary Authority of Singapore —

(a)

on its Internet website at https://www.mas.gov.sg; or

(b)

where the website is unavailable to the public, in any other form that is readily accessible by the public.