Income Tax (Concessionary Rate of Tax for Approved Global Trading Companies) (Amendment) Regulations 2013 deemed to come into operation on 20th December 2011

On By taxsgIn e-Gazette, Legislative Updates

29 March 2013

The Income Tax (Concessionary Rate of Tax for Approved Global Trading Companies) (Amendment) Regulations 2013 amends the Income Tax (Concessionary Rate of Tax for Approved Global Trading Companies) Regulations 2003 (G.N. No. S 204/2003) as follows:

Definitions

  • The definition of “commodity futures trading” has been amended and definitions for the following terms have been added: “exchange-traded specified derivative instrument”;“over the counter specified derivative instrument” and “specified derivative instrument”.

Concessionary Tax Rate

  • Regulation 5(1)(cb) has been amended to apply to income derived on or after 27th February 2009 (previously restricted to income on or after 27th February 2009 but before 1 January 2014), from trading in exchange-traded freight derivatives on any exchange carried out by an approved global trading company in accordance with the rules and regulations or customs and practices of that exchange, where the company is a member of the exchange, or where the trade is executed through another person who is a member of the exchange on behalf of the company.
  • Regulation 5(1)(cc) has been deleted.
  • Regulation 5(1)(e) has been added so that the 10% concessionary tax rate applies to income derived in the basis period for the year of assessment (YA) 2012 or any subsequent YA from trading in any over the counter specified derivative instrument with certain specified persons.
  • Regulation 5(1)(f) has been added so that the 10% concessionary tax rate applies to income derived in the basis period for the YA 2012 or any subsequent YA from trading in any exchange-traded specified derivative instrument on any exchange carried out by the approved global trading company in accordance with the rules and regulations or customs and practices of that exchange, where the company is a member of the exchange, or where the trade is executed through another person who is a member of the exchange on behalf of the company.
  • Regulation 5(3) has been amended so that the 5% concessionary tax rate applies to income (with some exceptions) derived by any approved global trading company from qualifying transactions in liquefied natural gas on or after 24th May 2007 (previously restricted to income during the period from 24th May 2007 to 23rd May 2017 [both dates inclusive]).

The Regulations were first published on 21 March 2013 and the amendments are deemed to have come into operation on 20th December 2011.

Source: e-Gazette