Singapore legislation
Regulation 5
Regulation 5
Concessionary rate of tax for income derived before 1 July 2021 of approved insurer
Subregulation 1
Tax shall be payable at the rate of 10% on the following income derived before 1 July 2021 by an approved insurer:
the income derived from accepting general insurance covering offshore risks and reinsurance covering offshore risks;
the dividends and interest derived from outside Singapore, the gains or profits realised from the sale of offshore investments, and interest from ACU deposits derived from —
subject to paragraph (2), the investment of its insurance fund established and maintained under the Insurance Act 1966 for the offshore general insurance business; and
the investment of its shareholders’ funds established in Singapore which are used to support the offshore general insurance business as ascertained under regulation 6.
Subregulation 2
Where the Comptroller is satisfied that any part of the insurance fund referred to in sub-paragraph (b)(i) of paragraph (1) is not required to support the offshore general insurance business of an approved insurer, he may adopt such reduced amount of the dividends, interest and gains or profits under that sub-paragraph as appears to him to be reasonable in the circumstances.
Subregulation 3
For the year of assessment 2012 and subsequent years of assessment, a reference in this regulation to interest includes a reference to qualifying return in lieu of interest.