Singapore legislation

Regulation 3

of Income Tax (Prescribed Islamic Financing Arrangements) Regulations 2009

Regulation 3

Prescribed arrangements

Amended byS 318/2011 wef 19/01/2009S 318/2011 wef 19/01/2009S 330/2012 wef 07/05/2009S 318/2011 wef 07/05/2009S 330/2012 wef 07/05/2009S 318/2011 wef 13/04/2010S 318/2011 wef 19/01/2009S 318/2011 wef 08/06/2011S 330/2012 wef 07/05/2009S 330/2012 wef 07/05/2009

The following Islamic financing arrangements are prescribed for the purpose of section 34B of the Act:

(a)

any Islamic deposit based on the Murabaha concept that —

(i)

is an arrangement between a Singapore bank and any customer that is not a bank, where the purchase of the asset referred to in paragraph (a)(i) of the definition of that deposit in regulation 2 took place on or after 11th June 2007; or (ii)is an arrangement between a non-Singapore bank and a customer (other than a Singapore bank) that is resident in Singapore, is a permanent establishment in Singapore or is carrying on business in Singapore, where the purchase of the asset referred to in paragraph (a)(i) of the definition of that deposit in regulation 2 took place on or after 17th February 2006; (iii)[Deleted by S 318/2011 wef 19/01/2009](aa)any Islamic financing based on the Diminishing Musharakah concept that is an arrangement between —

(i)

a Singapore financial institution and any customer; or

(ii)

a non-Singapore financial institution and a customer that is resident in Singapore, is a permanent establishment in Singapore or is carrying on a business in Singapore,where the use or purchase of the asset referred to in paragraph (a) of the definition of that financing in regulation 2 took place on or after 7th May 2009;

(ab)any Islamic financing based on the Istisna concept that is an arrangement between —

(i)

a Singapore financial institution and any customer; or

(ii)

a non-Singapore financial institution and a customer that is resident in Singapore, is a permanent establishment in Singapore or is carrying on a business in Singapore,where the commissioning of the customer to construct the asset referred to in paragraph (a) of the definition of that financing in regulation 2 took place on or after 13th April 2010;

(b)

any Islamic financing based on the Murabaha concept that is an arrangement between —

(i)

a Singapore financial institution and any customer; or

(ii)

a non-Singapore financial institution and a customer that is resident in Singapore, is a permanent establishment in Singapore or is carrying on business in Singapore, where the purchase of the asset referred to in paragraph (a) of the definition of that financing in regulation 2 took place on or after 17th February 2006;

(ba)any Islamic inter-bank placement based on the Murabaha concept that is an arrangement between banks, where the purchase of the asset referred to in paragraph (a) of the definition of that inter-bank placement in regulation 2 took place on or after 19th January 2009;

(bb)any Islamic inter-bank placement based on the Wakalah concept that is an arrangement between banks, where the appointment referred to in paragraph (a) of the definition of that inter-bank placement in regulation 2 took place on or after 8th June 2011;

(c)

any Islamic mortgage based on the Ijara Wa Igtina concept that is an arrangement between —

(i)

a Singapore financial institution and any customer; or

(ii)

a non-Singapore financial institution and a customer that is resident in Singapore, is a permanent establishment in Singapore or is carrying on business in Singapore,where the purchase of the asset by the financial institution or its agent referred to in paragraph (a) of the definition of that mortgage in regulation 2 took place —

(A)

in the case of a financial institution that is a Singapore bank, on or after 19th January 2009; and

(B)

in the case of a financial institution that is not a Singapore bank, on or after 17th February 2006;

(d)

any Islamic transaction based on the Spot Murabaha concept that is an arrangement between —

(i)

a Singapore financial institution and any customer; or

(ii)

a non-Singapore financial institution and a customer that is resident in Singapore, is a permanent establishment in Singapore or is carrying on a business in Singapore,where the purchase or sale of the asset, as the case may be, referred to in paragraph (a) of the definition of that transaction in regulation 2 took place on or after 7th May 2009.

Read in full context — Income Tax (Prescribed Islamic Financing Arrangements) Regulations 2009 →