Singapore legislation

Regulation 4B

of Income Tax (Concessionary Rate of Tax for Financial Sector Incentive Companies) Regulations 2005

Regulation 4B

12% tax payable on qualifying income of financial sector incentive (trustee companies) company derived between 1 April 2016 and 30 June 2021

Amended byS 487/2021 wef 01/07/2021S 772/2017 wef 01/04/2016S 487/2021 wef 01/07/2021

Subregulation 1

Amended byS 487/2021 wef 01/07/2021

Subject to paragraph (2), tax is payable at the rate of 12% on the income of a financial sector incentive (trustee companies) company derived during the period between 1 April 2016 and 30 June 2021 (both dates inclusive) from providing any of the following services:

(a)

trustee or custodian services in the company’s capacity as a trustee of a relevant foreign trust, or as a trustee of a philanthropic purpose trust in respect of a foreign account;

(b)

trustee or custodian services for or on behalf of any unit trust —

(i)

which is also a trust fund that is a foreign investor; and

(ii)

the funds of which are invested in designated investments;

(c)

trustee or custodian services in respect of foreign bond or loan stock issues, including services for monitoring loan covenants and administering loan repayments;

(d)

custodian services for or on behalf of any foreign mutual fund corporation, where the funds of the foreign mutual fund corporation are invested in designated investments;

(e)

trust management or administration services provided to a trustee of a relevant foreign trust, to any eligible holding company of a relevant foreign trust, or to a trustee of a philanthropic purpose trust in respect of a foreign account;

(f)

trustee services in respect of the issue of units of —

(i)

a foreign collective investment scheme; or

(ii)

a foreign business trust,where the proceeds of the issue of the units are used outside Singapore;

(g)

custodian services in respect of —

(i)

any qualifying debt securities;

(ii)

any foreign debt securities;

(iii)

any foreign equity securities;

(iv)

any units in a foreign collective investment scheme; or

(v)

any units in a foreign business trust.

Subregulation 2

Amended byS 772/2017 wef 01/04/2016S 487/2021 wef 01/07/2021

Paragraph (1) does not apply to any payment for the services mentioned in paragraph (1)(a) to (f), that is borne, directly or indirectly, by a person resident in Singapore or by a permanent establishment in Singapore (excluding, in the case of services mentioned in sub‑paragraph (a), (b), (e) or (f) of paragraph (1), payment by a trustee of the trust mentioned in that sub‑paragraph where the trustee is incorporated, resident or registered in Singapore).

Read in full context — Income Tax (Concessionary Rate of Tax for Financial Sector Incentive Companies) Regulations 2005 →