Singapore legislation
Regulation 5C
Regulation 5C
Concessionary rates of tax and exemption for income derived on or after 1 July 2021 of approved marine hull and liability insurer
Subregulation 1
The income specified in paragraph (4) derived on or after 1 July 2021 by an approved marine hull and liability insurer in a basis period for any year of assessment is exempt from tax, if the insurer’s approval was granted before 1 April 2016 and the insurer satisfies the qualifying conditions mentioned in regulation 7(1).
Subregulation 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 marine hull and liability insurer mentioned in regulation 5B(2) in a basis period for any year of assessment.
Subregulation 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 marine hull and liability insurer in a basis period for any year of assessment, if the insurer’s approval was granted between 1 April 2016 and 31 May 2017 (both dates inclusive).
Subregulation 4
For the purposes of paragraphs (1), (2) and (3), the income is —
underwriting income derived from the insurer’s marine hull and liability insurance and reinsurance business in Singapore;
the part of A that is ascertained by the formula ;
the part of B that is ascertained by the formula ; and
the part of C that is ascertained by the formula .
Subregulation 5
In paragraph (4) —
Definition
“A”, “B”, “C”, “Pig” and “Pog” have the same meanings given by regulation 5A(3), with each reference to approved insurer substituted with a reference to approved marine hull and liability insurer;
Definition
“Pim” is the total amount of gross premiums received or receivable in the basis period in respect of all policies underwritten by the approved marine hull and liability insurer in the course of carrying on its marine hull and liability insurance and reinsurance business in Singapore (other than offshore marine hull and liability insurance and reinsurance business);
Definition
“Pom” is the total amount of gross premiums received or receivable in the basis period in respect of all policies underwritten by the approved marine hull and liability insurer in the course of carrying on its offshore marine hull and liability insurance and reinsurance business in Singapore.
Subregulation 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 marine hull and liability insurance and reinsurance business in Singapore or marine hull and liability insurance and reinsurance business in Singapore (other than offshore marine hull and liability insurance and reinsurance business) of the approved marine hull and liability 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.
Subregulation 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 marine hull and liability insurance and reinsurance business in Singapore of the approved marine hull and liability 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.