Regulation 1
Citation and commencement
This Notification is the Income Tax (Finance Lease of Ship — Section 13(4) Exemption) Notification 2020 and is deemed to have come into operation on 12 December 2018.
/akn/sg/act/sub_leg/1947/ITA-S789-2020
Income Tax (Finance Lease of Ship — Section 13(4) Exemption) Notification 2020
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- Type
- Subsidiary Legislation
- Status
- In force
- Enacted
- 1947
- Sections
- 4
Quick answer
About this subsidiary legislation
Income Tax (Finance Lease of Ship — Section 13(4) Exemption) Notification 2020 is Singapore Subsidiary Legislation, cited as Subsidiary Legislation ITA-S789-2020 1947, currently marked in force and first recorded in 1947.
Regulation 2
Definitions
Amended byS 309/2024 wef 31/12/2021S 309/2024 wef 31/12/2021S 309/2024 wef 31/12/2021S 309/2024 wef 12/04/2024S 309/2024 wef 31/12/2021S 309/2024 wef 31/12/2021S 309/2024 wef 31/12/2021S 309/2024 wef 31/12/2021
In this Notification —“approved international shipping enterprise” means an approved international shipping enterprise mentioned in section 13E of the Act; “approved shipping investment enterprise” —
(a)
means an approved shipping investment enterprise mentioned in section 13P of the Act; and (b)includes a partnership approved by the Minister (or an authorised body) under section 13P of the Act as applied by section 36 of the Act;“finance lease”, in relation to a ship, means a lease of the ship (including any arrangement or agreement made in connection with the lease) that has the effect of transferring substantially the obsolescence, risks or rewards incidental to ownership of the ship to the lessee;“foreign ship” means a sea‑going ship other than a Singapore ship;“international shipping enterprise” has the meaning given by section 13E(6) of the Act; “provisionally registered ship” means a ship that is provisionally registered under the Merchant Shipping Act 1995, but excludes one whose registry is closed, deemed closed or suspended; “shipping enterprise” means a company that owns or operates one or more Singapore ships;“shipping investment enterprise” has the meaning given by section 13P(20) of the Act;“Singapore ship” —
(a)
means a ship in respect of which a certificate of registry has been issued under the Merchant Shipping Act 1995 and whose registry is not closed or deemed to be closed or suspended; and
(b)
includes a provisionally registered ship.
Definition
“approved international shipping enterprise” means an approved international shipping enterprise mentioned in section 13E of the Act;
Amended byS 309/2024 wef 31/12/2021
Definition
“approved shipping investment enterprise” —
(a)
means an approved shipping investment enterprise mentioned in section 13P of the Act; and (b)includes a partnership approved by the Minister (or an authorised body) under section 13P of the Act as applied by section 36 of the Act;
Amended byS 309/2024 wef 31/12/2021S 309/2024 wef 31/12/2021S 309/2024 wef 12/04/2024
Definition
“finance lease”, in relation to a ship, means a lease of the ship (including any arrangement or agreement made in connection with the lease) that has the effect of transferring substantially the obsolescence, risks or rewards incidental to ownership of the ship to the lessee;
Definition
“international shipping enterprise” has the meaning given by section 13E(6) of the Act;
Amended byS 309/2024 wef 31/12/2021
Definition
“provisionally registered ship” means a ship that is provisionally registered under the Merchant Shipping Act 1995, but excludes one whose registry is closed, deemed closed or suspended;
Amended byS 309/2024 wef 31/12/2021
Definition
“shipping enterprise” means a company that owns or operates one or more Singapore ships;
Definition
“shipping investment enterprise” has the meaning given by section 13P(20) of the Act;
Amended byS 309/2024 wef 31/12/2021
Definition
“Singapore ship” —
(a)
means a ship in respect of which a certificate of registry has been issued under the Merchant Shipping Act 1995 and whose registry is not closed or deemed to be closed or suspended; and
(b)
includes a provisionally registered ship.
Amended byS 309/2024 wef 31/12/2021
Regulation 3
Exemption for payment under finance lease of Singapore ship
Amended byS 157/2022 wef 04/03/2022S 309/2024 wef 31/12/2021
Subregulation 1
Amended byS 157/2022 wef 04/03/2022
Subject to this paragraph, any payment that a shipping enterprise is liable to make on or after 12 December 2018 to a person resident outside Singapore (called in this Notification a non‑resident person) under a finance lease of any Singapore ship that is entered into on or before 31 December 2028, is exempt from tax.
Subregulation 2
Sub‑paragraph (1) does not apply to —
(a)
any payment liable to be made under the finance lease that is derived from any operation carried on by the non‑resident person through the person’s permanent establishment in Singapore; or
(b)
any payment liable to be made under the finance lease on or after the date on which the Singapore ship ceases to be a Singapore ship.
Subregulation 3
Amended byS 309/2024 wef 31/12/2021
Where the finance lease mentioned in sub‑paragraph (1) is in relation to a provisionally registered ship, and the shipping enterprise liable to make payment under the finance lease is not an approved international shipping enterprise or approved shipping investment enterprise, the exemption is subject to the condition that the ship subsequently obtains a certificate of registry under the Merchant Shipping Act 1995.
Regulation 4
Exemption for payment under finance lease of foreign ship
Amended byS 157/2022 wef 04/03/2022
Subregulation 1
Amended byS 157/2022 wef 04/03/2022
Subject to this paragraph, any payment that an approved international shipping enterprise or approved shipping investment enterprise is liable to make on or after 12 December 2018 to a non‑resident person under a finance lease of any foreign ship that is entered into on or before 31 December 2028, is exempt from tax.
Subregulation 2
Sub‑paragraph (1) does not apply to —
(a)
any payment liable to be made under the finance lease that is derived from any operation carried on by the non‑resident person through the person’s permanent establishment in Singapore; or
(b)
any payment liable to be made on or after the date that the approval of the approved international shipping enterprise or approved shipping investment enterprise is revoked or withdrawn.
Subregulation 3
Sub‑paragraph (1) continues to apply to an international shipping enterprise or a shipping investment enterprise the approval of which has expired, but that remains liable to make any payment under the finance lease on or after the date of expiry of the approval.
Subregulation 4
For the purposes of sub‑paragraph (3), a reference in sub‑paragraphs (1) and (2) to an approved international shipping enterprise or approved shipping investment enterprise is to an international shipping enterprise or a shipping investment enterprise, as the case may be.
Common questions
- What is Income Tax (Finance Lease of Ship — Section 13(4) Exemption) Notification 2020?
- Income Tax (Finance Lease of Ship — Section 13(4) Exemption) Notification 2020 is Singapore Subsidiary Legislation, cited as Subsidiary Legislation ITA-S789-2020 1947, currently marked in force and first recorded in 1947.
- Is Income Tax (Finance Lease of Ship — Section 13(4) Exemption) Notification 2020 still in force?
- Yes — Income Tax (Finance Lease of Ship — Section 13(4) Exemption) Notification 2020 is currently in force.
- When did Income Tax (Finance Lease of Ship — Section 13(4) Exemption) Notification 2020 take effect?
- Income Tax (Finance Lease of Ship — Section 13(4) Exemption) Notification 2020 was first recorded in 1947.
- How many regulations does Income Tax (Finance Lease of Ship — Section 13(4) Exemption) Notification 2020 have?
- Income Tax (Finance Lease of Ship — Section 13(4) Exemption) Notification 2020 contains 4 regulations.
- Where can I read the official version of Income Tax (Finance Lease of Ship — Section 13(4) Exemption) Notification 2020?
- The official text of Income Tax (Finance Lease of Ship — Section 13(4) Exemption) Notification 2020 is published at sso.agc.gov.sg.