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Concessionary rates of tax and exemption for income derived on or after 1 July 2021 of approved specialised insurer

Income Tax (Exemption and Concessionary Tax Rate for Income from General Insurance Business) Regulations

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—(1) The income specified in paragraph (4) derived on or after 1 July 2021 by an approved specialised insurer in a basis period for any year of assessment is exempt from tax, if its approval was granted at any time before 1 September 2016 and the insurer had not been approved as an approved specialised insurer at any time before the date of approval.(2) Tax is payable at the rate of 5% on income specified in paragraph (4) derived on or after 1 July 2021 by an approved specialised insurer in a basis period for any year of assessment, if its approval was granted between 1 September 2016 and 31 May 2017 (both dates inclusive), and the insurer had not been approved as an approved specialised insurer at any time before the date of the approval.(3) Tax is payable at the rate of 10% on income specified in paragraph (4) derived on or after 1 July 2021 by an approved specialised insurer in a basis period for any year of assessment, if its approval was granted between 1 September 2016 and 31 May 2017 (both dates inclusive), and the insurer had been approved as an approved specialised insurer at any time before the date of the firstmentioned approval.(4) For the purposes of paragraphs (1), (2) and (3), the income is —(a)underwriting income derived by the approved specialised insurer from its specialised insurance business in Singapore;(b)the part of A that is ascertained by the formula ;(c)the part of B that is ascertained by the formula ; and(d)the part of C that is ascertained by the formula .(5) In paragraph (4) —“A”, “B”, “C”, “Pig” and “Pog” have the same meanings given by regulation 5A(3), with each reference to approved insurer substituted with the reference to approved specialised insurer;“Pis” is the total amount of gross premiums received or receivable in the basis period in respect of all policies underwritten by the approved specialised insurer in the course of carrying on its specialised insurance business in Singapore (other than offshore specialised insurance business);“Pos” is the total amount of gross premiums received or receivable in the basis period in respect of all policies underwritten by the approved specialised insurer in the course of carrying on its offshore specialised insurance business in Singapore.(6) For the purposes of paragraph (4), where the Comptroller is satisfied that any part of the insurance fund mentioned in the definition of “A” or “B” in regulation 5A(3) (as applied by paragraph (5)) is not required to support the offshore specialised insurance business in Singapore or specialised insurance business in Singapore (other than offshore specialised insurance business) of the approved specialised insurer (as the case may be), the Comptroller may adopt such reduced amount of “A” in paragraph (4)(b) or “B” in paragraph (4)(c) as appears to the Comptroller to be reasonable in the circumstances.(7) For the purposes of paragraph (4), where the Comptroller is satisfied that any part of the shareholders’ fund mentioned in the definition of “C” in regulation 5A(3) (as applied by paragraph (5)) is not required to support the specialised insurance business in Singapore of the approved specialised insurer, the Comptroller may adopt such reduced amount of “C” in paragraph (4)(d) as appears to the Comptroller to be reasonable in the circumstances.(8) For the purposes of the definitions of “Pis” and “Pos” in paragraph (4), a policy for a risk arising from a natural catastrophe underwritten by the approved specialised insurer is regarded as a policy underwritten by the insurer in the course of carrying on its specialised insurance business (other than offshore specialised insurance business) or offshore specialised insurance business (as the case may be), if and only if it is a catastrophe excess of loss policy.

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