/akn/sg/act/sub_leg/1947/ITA-S341-2016

Income Tax (Concessionary Rate of Tax for Global Trading Companies) Regulations 2016

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Type: Subsidiary Legislation
Status: In force
Enacted: 1947
Sections: 7

Quick answer

About this subsidiary legislation

Income Tax (Concessionary Rate of Tax for Global Trading Companies) Regulations 2016 is Singapore Subsidiary Legislation, cited as Subsidiary Legislation ITA-S341-2016 1947, currently marked in force and first recorded in 1947.

Regulation 1

Citation and commencement

These Regulations are the Income Tax (Concessionary Rate of Tax for Global Trading Companies) Regulations 2016 and come into operation on 21 July 2016.

Regulation 2

Definitions

Amended byS 302/2024 wef 31/12/2021S 302/2024 wef 31/12/2021S 852/2021 wef 08/11/2021S 852/2021 wef 08/11/2021S 852/2021 wef 08/11/2021S 302/2024 wef 31/12/2021S 852/2021 wef 08/11/2021S 852/2021 wef 08/11/2021S 852/2021 wef 08/11/2021S 852/2021 wef 08/11/2021S 302/2024 wef 31/12/2021S 302/2024 wef 31/12/2021S 302/2024 wef 31/12/2021S 302/2024 wef 31/12/2021S 852/2021 wef 08/11/2021S 852/2021 wef 08/11/2021S 302/2024 wef 31/12/2021S 235/2017 wef 21/02/2017S 852/2021 wef 08/11/2021

Subregulation 1

In these Regulations, unless the context otherwise requires —

Definition

“appointed person” means a person appointed by the Minister for the purposes of section 43P of the Act as in force immediately before 31 December 2021;

Amended byS 302/2024 wef 31/12/2021

Definition

“approved global trading company” means a global trading company that is approved for the purposes of section 43I of the Act by the Minister or an authorised body, and includes a global trading company which is treated under regulation 6(3) as an approved global trading company;

Amended byS 302/2024 wef 31/12/2021

Definition

“associated company”, in relation to an approved global trading company, means a company that is associated with the approved global trading company under regulation 2A;

Amended byS 852/2021 wef 08/11/2021

Definition

“AT1 instrument” means a security (not being a stock or a share) commonly known as Additional Tier 1 capital instrument;

Amended byS 852/2021 wef 08/11/2021

Definition

“carbon credit” means the right to emit an amount of any greenhouse gas that has the same global warming potential as one tonne of carbon dioxide;

Definition

“collective investment scheme” has the meaning given by section 2(1) of the Securities and Futures Act 2001;

Amended byS 852/2021 wef 08/11/2021S 302/2024 wef 31/12/2021

Definition

“commodity” means any of the commodities specified in the First Schedule;

Amended byS 852/2021 wef 08/11/2021

Definition

“physical trading” means trading in any commodity on a spot or forward basis between an approved global trading company and any other entity, where the intention of the parties at the time the transaction is entered into is that actual delivery of the commodity is required, whether or not the delivery is actually made;

Amended byS 852/2021 wef 08/11/2021

Definition

“prescribed advisory services in relation to mergers and acquisitions” means advisory services provided by an approved global trading company to any of its associated companies in relation to any merger and acquisition that involves the associated company or another associated company of the approved global trading company;

Amended byS 852/2021 wef 08/11/2021

Definition

“prescribed qualifying structured commodity financing activities” means any activity specified in the Second Schedule;

Amended byS 852/2021 wef 08/11/2021

Definition

“prescribed treasury activities” means —

(a)

the provision of services in relation to the consolidation, management and distribution of funds by an approved global trading company to any of its associated companies; and

(b)

the following activities carried out by an approved global trading company on its own account:

(i)

transacting or investing in stocks and shares of any company;

(ii)

transacting or investing in certificates of deposits, notes, bonds, treasury bills, commercial papers, AT1 instruments and units in a collective investment scheme (excluding any collective investment scheme constituted as a unit trust) issued or operated by —

(A)

the Government or any foreign government;

(B)

a bank that holds a licence under section 7 or 79 of the Banking Act 1970; (C)a merchant bank that holds a merchant bank licence, or is treated as having been granted a merchant bank licence, under the Banking Act 1970; (D)a bank outside Singapore; or

(E)

a company;

(iii)

investing in deposits held in Singapore with any financial institution in Singapore, or in deposits held outside Singapore with any financial institution outside Singapore;

(iv)

foreign exchange transactions;

(v)

reinvoicing activities for its associated companies;

(vi)

providing credit facilities to its associated companies;

(vii)

transactions involving derivatives (including transactions involving interest rate or currency swaps and transactions in financial futures contracts or options) entered into with —

(A)

any bank outside Singapore;

(B)

any bank that holds a licence under section 7 or 79 of the Banking Act 1970;

(C)

any merchant bank that holds a merchant bank licence, or is treated as having been granted a merchant bank licence, under the Banking Act 1970;

(D)

its associated companies; or

(E)

a member of any exchange;

(viii)

transacting or investing in units in any unit trust, where the manager of the unit trust engages wholly in one or more of the activities set out in sub-paragraph (i), (ii), (iii), (iv) or (vii);

Amended byS 302/2024 wef 31/12/2021S 302/2024 wef 31/12/2021S 302/2024 wef 31/12/2021S 302/2024 wef 31/12/2021S 852/2021 wef 08/11/2021

Definition

“unit” and “unit trust” have the meanings given by section 10A(2) of the Act.

Amended byS 852/2021 wef 08/11/2021S 302/2024 wef 31/12/2021

Subregulation 2

Amended byS 852/2021 wef 08/11/2021

In these Regulations —

(a)

a commodity; or (b)a prescribed qualifying structured commodity financing activity, prescribed treasury activity or prescribed advisory service in relation to mergers and acquisitions,is specified for an approved global trading company if it is specified under regulation 3(1)(b) for the company.

Regulation 2A

Association

Amended byS 852/2021 wef 08/11/2021

Subregulation 1

In these Regulations, a company (X) is associated with an approved global trading company (Y) if the requirement relating to the control of operations mentioned in paragraph (2), or the beneficial ownership of issued shares mentioned in paragraph (3), is satisfied.

Subregulation 2

The requirement relating to the control of operations is any of the following:

(a)

X controls or can control the operations of Y;

(b)

Y controls or can control the operations of X;

(c)

one other person controls or can control, or 2 or more other persons together control or can control, the operations of both X and Y.

Subregulation 3

The requirement relating to the beneficial ownership of issued shares is any of the following:

(a)

X beneficially owns at least 25% of the total number of the issued shares of Y;

(b)

Y beneficially owns at least 25% of the total number of the issued shares of X.

Subregulation 4

For the purposes of paragraphs (2) and (3), the control or beneficial ownership may be direct or indirect, or both direct and indirect.

Regulation 3

Approval of global trading company

Amended byS 765/2025 wef 28/11/2025S 302/2024 wef 31/12/2021S 302/2024 wef 12/04/2024S 852/2021 wef 08/11/2021

Subregulation 1

Amended byS 765/2025 wef 28/11/2025S 302/2024 wef 31/12/2021

For the purposes of section section 43I(1)(a) of the Act, the Minister or authorised body may —

(a)

approve a global trading company as an approved global trading company for any income of the company specified in regulation 4 to be chargeable with tax at the rate of 5%, 10% or 15%; and

(b)

specify the commodities, the prescribed qualifying structured commodity financing activities, the prescribed treasury activities and the prescribed advisory services in relation to mergers and acquisitions, for the approved global trading company in relation to the approval.

Subregulation 2

The approval mentioned in paragraph (1) is for a period not exceeding 5 years starting on the date of the approval or any other date specified in the approval.

Subregulation 3

Amended byS 302/2024 wef 12/04/2024

The Minister or authorised body may, in any particular case, extend the period mentioned in paragraph (2) by notice in writing for one or more further periods, and each extension must be a period not exceeding 5 years.

Regulation 4

Concessionary rate of tax

Amended byS 765/2025 wef 28/11/2025S 765/2025 wef 28/11/2025S 302/2024 wef 12/04/2024S 765/2025 wef 28/11/2025S 765/2025 wef 28/11/2025S 765/2025 wef 28/11/2025S 765/2025 wef 28/11/2025S 852/2021 wef 08/11/2021

Subregulation 1

Amended byS 765/2025 wef 28/11/2025

Subject to paragraph (6), tax at the rate of 5% is levied and must be paid for each year of assessment on the following income derived on or after 19 February 2020 by an approved global trading company that has been approved for that rate:

(a)

profits from any physical trading carried out by the company in the commodities specified for the company;

(b)

profits from any trading in any derivative instrument carried out by the company;

(c)

commission and fees from acting as broker in any physical trading in the commodities specified for the company;

(d)

income from the carrying on of any prescribed qualifying structured commodity financing activity, prescribed treasury activity or prescribed advisory services in relation to mergers and acquisitions, specified for the company.

Subregulation 2

Amended byS 765/2025 wef 28/11/2025

Subject to paragraphs (3) and (6), tax at the rate of 10% is levied and must be paid for each year of assessment on the income mentioned in paragraph (1) of an approved global trading company that has been approved for that rate.

Subregulation 3

Amended byS 302/2024 wef 12/04/2024S 765/2025 wef 28/11/2025

Despite paragraph (2) but subject to paragraphs (4) and (6), tax at the rate of 5% is levied and must be paid for each year of assessment on the following income derived on or after 19 February 2020 by an approved global trading company that has been approved for tax at the rate of 10% and has liquefied natural gas as a commodity specified for it in relation to the approval:

(a)

profits from any physical trading in liquefied natural gas carried out by the company;

(b)

profits from any trading in any derivative instrument carried out by the company, where —

(i)

the underlying commodity of the derivative instrument is liquefied natural gas; or

(ii)

the trading is carried out for the purpose of hedging against any risk in any physical trading in liquefied natural gas carried out by the company, but only if the company —

(A)

has in place a system to ensure that such trading and profits are separately identifiable; and

(B)

satisfies the Minister or authorised body that it has complied with any other condition that may be imposed by the Minister or authorised body.

Subregulation 4

Paragraph (3) applies only to any income derived by an approved global trading company that is approved before 1 April 2021 during the period of its approval or extended period of its approval, where the period or extended period commences before that date.

Subregulation 5

Amended byS 765/2025 wef 28/11/2025

Subject to paragraph (6), tax at the rate of 15% is levied and must be paid for each year of assessment on the income mentioned in paragraph (1) of an approved global trading company that has been approved for that rate.

Subregulation 6

Amended byS 765/2025 wef 28/11/2025

Despite paragraphs (1), (2), (3) and (5), where the Minister or an authorised body substitutes, under section 43I(1AC) of the Act, the rate of tax applicable to an approved global trading company, tax at the substituted rate of 5%, 10% or 15% (as the case may be) is levied and must be paid for each year of assessment on —

(a)

in the case of paragraph (1), (2) or (5) — the income mentioned in paragraph (1); or

(b)

in the case of paragraph (3) — the income mentioned in that paragraph,that is derived by the company from (and including) the date specified by the Minister or authorised body to the company for the application of the substituted rate.

Subregulation 7

Amended byS 765/2025 wef 28/11/2025

Paragraphs (5) and (6) apply only for the year of assessment 2025 and subsequent years of assessment.

Regulation 5

Determination of income chargeable to tax

Amended byS 235/2017 wef 21/02/2017S 765/2025 wef 28/11/2025S 235/2017 wef 21/02/2017S 765/2025 wef 28/11/2025

For the purposes of regulation 4, the Comptroller may determine —

(a)

the income of an approved global trading company chargeable to the rate of tax in regulation 4(1), (2), (3), (5) or (6), having regard to such expenses, donations and allowances under the Act as are, in the Comptroller’s opinion, to be deducted in ascertaining such income; and (b)the manner and extent to which any loss arising from the activities referred to in regulation 4(1), (2), (3), (5) or (6) may be deducted under the Act in ascertaining such income.(c)[Deleted by S 235/2017 wef 21/02/2017]

Regulation 6

Revocation and savings of past approvals

Amended byS 852/2021 wef 08/11/2021

Subregulation 1

The Income Tax (Concessionary Rate of Tax for Approved Global Trading Companies) Regulations 2003 (G.N. No. S 204/2003) (called in this regulation the revoked Regulations) are revoked.

Subregulation 2

Despite paragraph (1) and these Regulations —

(a)

regulations 5 and 6 of the revoked Regulations; and

(b)

regulations 2 and 4 of the revoked Regulations, insofar as they apply to the interpretation of regulations 5 and 6 of the revoked Regulations,continue to apply and have effect in relation to the income of an approved global trading company for the year of assessment 2015 and prior years of assessment.

Subregulation 3

Subject to paragraph (4), a company is treated as an approved global trading company if —

(a)

the company was approved under regulation 3(1) of the revoked Regulations by the Minister or the appointed person; and

(b)

the approval (called in this regulation the original approval) is in force on 21 July 2016.

Subregulation 4

Amended byS 852/2021 wef 08/11/2021

The approval of a company treated under paragraph (3) as an approved global trading company —

(a)

is in respect of the same commodities as are specified in writing in the original approval by the Minister or the appointed person;

(b)

expires on the date on which the original approval would have expired if these Regulations had not been made; and

(c)

may be extended in accordance with regulations 3(3) as if the reference in that provision to the period mentioned in regulation 3(2) were a reference to the period of the original approval.

Common questions

What is Income Tax (Concessionary Rate of Tax for Global Trading Companies) Regulations 2016?: Income Tax (Concessionary Rate of Tax for Global Trading Companies) Regulations 2016 is Singapore Subsidiary Legislation, cited as Subsidiary Legislation ITA-S341-2016 1947, currently marked in force and first recorded in 1947.
Is Income Tax (Concessionary Rate of Tax for Global Trading Companies) Regulations 2016 still in force?: Yes — Income Tax (Concessionary Rate of Tax for Global Trading Companies) Regulations 2016 is currently in force.
When did Income Tax (Concessionary Rate of Tax for Global Trading Companies) Regulations 2016 take effect?: Income Tax (Concessionary Rate of Tax for Global Trading Companies) Regulations 2016 was first recorded in 1947.
How many regulations does Income Tax (Concessionary Rate of Tax for Global Trading Companies) Regulations 2016 have?: Income Tax (Concessionary Rate of Tax for Global Trading Companies) Regulations 2016 contains 7 regulations.
Where can I read the official version of Income Tax (Concessionary Rate of Tax for Global Trading Companies) Regulations 2016?: The official text of Income Tax (Concessionary Rate of Tax for Global Trading Companies) Regulations 2016 is published at sso.agc.gov.sg.