Singapore legislation
Regulation 6
Regulation 6
Exemption in relation to finance lease treated as sale
Subregulation 1
Subject to sub‑paragraphs (2) to (6) and the conditions imposed by the Minister under section 13(4) of the Act, a qualifying payment that an approved aircraft leasing company is liable to make on or after the specified date to a specified person for the lease of one or more aircraft or aircraft engines under a finance lease treated as a sale entered into by the approved aircraft leasing company on or before 31 December 2027, is exempt from tax.
Subregulation 2
The exemption in sub‑paragraph (1) applies only to the amount of the qualifying payment derived by the formulawhere —
A is the sum of all payments that are attributable to the principal repayments under the finance lease treated as a sale;
B is that part of the payments mentioned in A that are not attributable to the lease of one or more aircraft or aircraft engines; and
C is the qualifying payment.
Subregulation 3
Sub‑paragraph (1) does not apply in relation to any finance lease treated as a sale entered into before 1 May 2012 and which is already the subject of another exemption under the Act.
Subregulation 4
Sub‑paragraph (1) only applies if the approved aircraft leasing company makes a declaration, in relation to the finance lease treated as a sale, to the Economic Development Board —
regarding the satisfaction by the approved aircraft leasing company of the requirements and conditions for the exemption; and
in the form specified by the Economic Development Board.
Subregulation 5
Sub‑paragraph (1) does not apply to any qualifying payment liable to be made at any time from (and including) the date of occurrence of the earliest of the following events:
the finance lease treated as a sale is discharged or ceases to be one treated as a sale;
the finance lease ceases to be a finance lease;
the approval of the approved aircraft leasing company as such is revoked or withdrawn;
the approved aircraft leasing company fails to satisfy any condition mentioned in sub‑paragraph (1).
Subregulation 6
Subject to sub‑paragraph (5), sub‑paragraph (1) continues to apply to a qualifying payment liable to be made even after the expiry of the approval of the approved aircraft leasing company as an approved aircraft leasing company (other than by way of revocation or withdrawal), and any reference in this paragraph to an approved aircraft leasing company is to be construed accordingly.