§ 43P — Concessionary rate of tax for container investment enterprise

43P.—(1) Despite section 43 but subject to subsection (5), tax at the rate of 5% or 10% as the Minister or an authorised body may specify, is to be levied and paid for each year of assessment upon the income of an approved container investment enterprise accruing in or derived from Singapore from —(a)

the leasing of any container owned by the enterprise acquired before or during the period of approval of the enterprise mentioned in subsection (4) and used for the international transportation of goods;

(b)

foreign exchange and risk management activities which are carried out in connection with and incidental to the leasing mentioned in paragraph (a);

(c)

for the year of assessment 2013 and subsequent years of assessment, the leasing of any intermodal equipment owned by the enterprise acquired before or during the period of approval of the enterprise mentioned in subsection (4), which is incidental to the leasing mentioned in paragraph (a);

(d)

for the year of assessment 2013 and subsequent years of assessment, foreign exchange and risk management activities which are carried out in connection with and incidental to the leasing mentioned in paragraph (c);

(e)

the leasing of any container used for international transportation of goods, if the container was —(i)

acquired by an approved related party before or during the period of the approval of the related party under subsection (4); and

(ii)

leased by the approved related party to the approved container investment enterprise;

(f)

the leasing of any intermodal equipment that is incidental to the lease mentioned in paragraph (e), if the intermodal equipment was —(i)

acquired by an approved related party before or during the period of the approval of the related party under subsection (4); and

(ii)

leased by the approved related party to the approved container investment enterprise; and

(g)

foreign exchange and risk management activities that are carried out in connection with and incidental to the leases mentioned in paragraphs (e) and (f).[32/2019]

[Act 41 of 2020 wef 12/04/2024]

(1A) Subsection (1)(e), (f) and (g) only applies to income derived on or after 12 December 2018.[32/2019]

(2) Subsection (1)(a), (b), (c) or (d) continues to apply to a container investment enterprise the approval of which has expired or been withdrawn, but which continues to derive income of the type mentioned in that provision in relation to a container or an intermodal equipment acquired before or during the period of approval of the enterprise, provided that the enterprise has by the date of the expiry or before the withdrawal of its approval fulfilled all the conditions mentioned in subsection (4), and any reference in this section to an approved container investment enterprise is to be construed accordingly.[32/2019]

(2A) Subsection (1)(e), (f) or (g) continues to apply to a container investment enterprise the approval of which has expired or been withdrawn, but that continues to derive income of the type mentioned in that provision if both the container investment enterprise and the approved related party have by the date of the expiry or before the withdrawal, fulfilled all the conditions of their respective approvals under subsection (4).[32/2019]

(2B) For the purpose of subsection (2A), the container investment enterprise is treated under this section as an approved container investment enterprise.[32/2019]

(2C) Subsection (1)(a), (c), (e) and (f) does not apply to —(a)

income derived between 12 December 2018 and 18 February 2025 (both dates inclusive) from the leasing of a container or intermodal equipment that is acquired by the approved container investment enterprise or the approved related party by way of a finance lease entered into with an entity that is not an approved related party; or

(b)

income derived on or after 19 February 2025 from the leasing of a container or intermodal equipment that is acquired by the approved container investment enterprise or the approved related party by way of a finance lease not treated as a sale under section 10C, entered into with an entity that is not an approved related party.[Act 25 of 2025 wef 19/02/2025]

(3) The Minister or an authorised body may, at any time between 1 April 2008 and 31 December 2031 (both dates inclusive), approve a container investment enterprise or a related party of an approved container investment enterprise for the purposes of subsection (1).[37/2014; 2/2016; 32/2019; 41/2020]

[Act 41 of 2020 wef 12/04/2024]

[Act 25 of 2025 wef 19/02/2025]

(4) The approval under subsection (3) is subject to such conditions as the Minister may specify, and must —(a)

where the approval is granted during the period between 1 April 2008 and 28 February 2011 (both dates inclusive), be for such period not exceeding 10 years, as the Minister may specify; and

(b)

where the approval is granted during the period between 1 March 2011 and 31 December 2031 (both dates inclusive), be for such period not exceeding 5 years, as the Minister may specify,

except that the Minister may extend the period so specified for such further periods as the Minister thinks fit.

[37/2014; 2/2016; 41/2020]

[Act 25 of 2025 wef 19/02/2025]

(4A) A reference to the Minister in subsection (4), in the case of an approval granted on or after the date of commencement of section 38(1)(a) of the Income Tax (Amendment) Act 2021, includes the authorised body.[Act 27 of 2021 wef 12/04/2024]

(5) The Minister or an authorised body may, in respect of any container, class of containers, intermodal equipment or class of intermodal equipment, specify a period not exceeding a period of 15 years, during which the income from the leasing of such container, class of containers, intermodal equipment or class of intermodal equipment is subject to the applicable concessionary tax rate under subsection (1).[Act 41 of 2020 wef 12/04/2024]

(6) In determining the income of an approved container investment enterprise from the leasing of any container or intermodal equipment —(a)

the allowances under section 19, 19A, 20, 21, 22 or 23 (other than allowances made to the lessee under regulations made under section 10C) must be taken into account even if no claim for such allowances has been made;

(b)

the allowances under section 19, 19A, 20, 21, 22 or 23 (other than allowances made to the lessee under regulations made under section 10C) in respect of finance leasing in any year of assessment must be deducted against the income from such leasing for that year of assessment, and any balance of the allowances is not, subject to paragraph (c), available as a deduction against any other income or available for transfer under section 37B;

(c)

where the approved container investment enterprise ceases to derive income from finance leasing in the basis period for any year of assessment, any balance of the allowances in respect of finance leasing after the deduction against the income from such leasing is available as a deduction against any other income for that year of assessment and for any subsequent year of assessment in accordance with section 23; and

(d)

the Comptroller must determine the manner and extent to which —(i)

allowances under section 19, 19A, 20, 21, 22 or 23 and any expenses and donations allowable under this Act are to be deducted; and

(ii)

any loss may be deducted under section 37.[2/2016]

(7) In this section —“approved” means approved by the Minister or an authorised body;[Act 41 of 2020 wef 12/04/2024]

“container” means a sea‑container used for the international transportation of goods and that adheres to the standards defined by the Institute of International Container Lessors or the International Organization for Standardization for such sea‑container, or (for the year of assessment 2013 and subsequent years of assessment) by any of those organisations or any other equivalent organisation for such sea‑container;

“container investment enterprise” means —(a)

a company incorporated and resident in Singapore; or

(b)

a registered business trust;

“finance leasing”, in relation to any container or intermodal equipment, means a lease of the container or intermodal equipment (including any arrangement or agreement in connection with the lease) which has the effect of transferring substantially the obsolescence, risks or rewards incidental to ownership of such container or intermodal equipment to the lessee;

“intermodal equipment” means any trailer, flatcar, car rack or other equipment, which facilitates the transportation of containers from one mode of transport to another;

“registered business trust” has the meaning given by the Business Trusts Act 2004;

“related party”, in relation to an approved container investment enterprise, means —(a)

any entity that is related to the approved container investment enterprise in such manner as may be prescribed by rules made under section 7; or

(b)

any other entity that is approved by the Minister or authorised body in any particular case to be a related party of the approved container investment enterprise.[32/2019; 27/2021]

[Act 27 of 2021 wef 12/04/2024]

(8) Rules made for the purpose of the definition of “related party” in subsection (7) may be made to take effect from (and including) 12 December 2018.[43ZA

[32/2019]

—(1) Despite section 43 but subject to subsection (5), tax at the rate of 5% or 10% as the Minister or an authorised body may specify, is to be levied and paid for each year of assessment upon the income of an approved container investment enterprise accruing in or derived from Singapore from —(a)

the leasing of any container owned by the enterprise acquired before or during the period of approval of the enterprise mentioned in subsection (4) and used for the international transportation of goods;

(b)

foreign exchange and risk management activities which are carried out in connection with and incidental to the leasing mentioned in paragraph (a);

(c)

for the year of assessment 2013 and subsequent years of assessment, the leasing of any intermodal equipment owned by the enterprise acquired before or during the period of approval of the enterprise mentioned in subsection (4), which is incidental to the leasing mentioned in paragraph (a);

(d)

for the year of assessment 2013 and subsequent years of assessment, foreign exchange and risk management activities which are carried out in connection with and incidental to the leasing mentioned in paragraph (c);

(e)

the leasing of any container used for international transportation of goods, if the container was —(i)

acquired by an approved related party before or during the period of the approval of the related party under subsection (4); and

(ii)

leased by the approved related party to the approved container investment enterprise;

(f)

the leasing of any intermodal equipment that is incidental to the lease mentioned in paragraph (e), if the intermodal equipment was —(i)

acquired by an approved related party before or during the period of the approval of the related party under subsection (4); and

(ii)

leased by the approved related party to the approved container investment enterprise; and

(g)

foreign exchange and risk management activities that are carried out in connection with and incidental to the leases mentioned in paragraphs (e) and (f).[32/2019]

[Act 41 of 2020 wef 12/04/2024]

(1A) Subsection (1)(e), (f) and (g) only applies to income derived on or after 12 December 2018.[32/2019]

(2) Subsection (1)(a), (b), (c) or (d) continues to apply to a container investment enterprise the approval of which has expired or been withdrawn, but which continues to derive income of the type mentioned in that provision in relation to a container or an intermodal equipment acquired before or during the period of approval of the enterprise, provided that the enterprise has by the date of the expiry or before the withdrawal of its approval fulfilled all the conditions mentioned in subsection (4), and any reference in this section to an approved container investment enterprise is to be construed accordingly.[32/2019]

(2A) Subsection (1)(e), (f) or (g) continues to apply to a container investment enterprise the approval of which has expired or been withdrawn, but that continues to derive income of the type mentioned in that provision if both the container investment enterprise and the approved related party have by the date of the expiry or before the withdrawal, fulfilled all the conditions of their respective approvals under subsection (4).[32/2019]

(2B) For the purpose of subsection (2A), the container investment enterprise is treated under this section as an approved container investment enterprise.[32/2019]

(2C) Subsection (1)(a), (c), (e) and (f) does not apply to —(a)

income derived between 12 December 2018 and 18 February 2025 (both dates inclusive) from the leasing of a container or intermodal equipment that is acquired by the approved container investment enterprise or the approved related party by way of a finance lease entered into with an entity that is not an approved related party; or

(b)

income derived on or after 19 February 2025 from the leasing of a container or intermodal equipment that is acquired by the approved container investment enterprise or the approved related party by way of a finance lease not treated as a sale under section 10C, entered into with an entity that is not an approved related party.[Act 25 of 2025 wef 19/02/2025]

(3) The Minister or an authorised body may, at any time between 1 April 2008 and 31 December 2031 (both dates inclusive), approve a container investment enterprise or a related party of an approved container investment enterprise for the purposes of subsection (1).[37/2014; 2/2016; 32/2019; 41/2020]

[Act 41 of 2020 wef 12/04/2024]

[Act 25 of 2025 wef 19/02/2025]

(4) The approval under subsection (3) is subject to such conditions as the Minister may specify, and must —(a)

where the approval is granted during the period between 1 April 2008 and 28 February 2011 (both dates inclusive), be for such period not exceeding 10 years, as the Minister may specify; and

(b)

where the approval is granted during the period between 1 March 2011 and 31 December 2031 (both dates inclusive), be for such period not exceeding 5 years, as the Minister may specify,

except that the Minister may extend the period so specified for such further periods as the Minister thinks fit.

[37/2014; 2/2016; 41/2020]

[Act 25 of 2025 wef 19/02/2025]

(4A) A reference to the Minister in subsection (4), in the case of an approval granted on or after the date of commencement of section 38(1)(a) of the Income Tax (Amendment) Act 2021, includes the authorised body.[Act 27 of 2021 wef 12/04/2024]

(5) The Minister or an authorised body may, in respect of any container, class of containers, intermodal equipment or class of intermodal equipment, specify a period not exceeding a period of 15 years, during which the income from the leasing of such container, class of containers, intermodal equipment or class of intermodal equipment is subject to the applicable concessionary tax rate under subsection (1).[Act 41 of 2020 wef 12/04/2024]

(6) In determining the income of an approved container investment enterprise from the leasing of any container or intermodal equipment —(a)

the allowances under section 19, 19A, 20, 21, 22 or 23 (other than allowances made to the lessee under regulations made under section 10C) must be taken into account even if no claim for such allowances has been made;

(b)

the allowances under section 19, 19A, 20, 21, 22 or 23 (other than allowances made to the lessee under regulations made under section 10C) in respect of finance leasing in any year of assessment must be deducted against the income from such leasing for that year of assessment, and any balance of the allowances is not, subject to paragraph (c), available as a deduction against any other income or available for transfer under section 37B;

(c)

where the approved container investment enterprise ceases to derive income from finance leasing in the basis period for any year of assessment, any balance of the allowances in respect of finance leasing after the deduction against the income from such leasing is available as a deduction against any other income for that year of assessment and for any subsequent year of assessment in accordance with section 23; and

(d)

the Comptroller must determine the manner and extent to which —(i)

allowances under section 19, 19A, 20, 21, 22 or 23 and any expenses and donations allowable under this Act are to be deducted; and

(ii)

any loss may be deducted under section 37.[2/2016]

(7) In this section —“approved” means approved by the Minister or an authorised body;[Act 41 of 2020 wef 12/04/2024]

“container” means a sea‑container used for the international transportation of goods and that adheres to the standards defined by the Institute of International Container Lessors or the International Organization for Standardization for such sea‑container, or (for the year of assessment 2013 and subsequent years of assessment) by any of those organisations or any other equivalent organisation for such sea‑container;

“container investment enterprise” means —(a)

a company incorporated and resident in Singapore; or

(b)

a registered business trust;

“finance leasing”, in relation to any container or intermodal equipment, means a lease of the container or intermodal equipment (including any arrangement or agreement in connection with the lease) which has the effect of transferring substantially the obsolescence, risks or rewards incidental to ownership of such container or intermodal equipment to the lessee;

“intermodal equipment” means any trailer, flatcar, car rack or other equipment, which facilitates the transportation of containers from one mode of transport to another;

“registered business trust” has the meaning given by the Business Trusts Act 2004;

“related party”, in relation to an approved container investment enterprise, means —(a)

any entity that is related to the approved container investment enterprise in such manner as may be prescribed by rules made under section 7; or

(b)

any other entity that is approved by the Minister or authorised body in any particular case to be a related party of the approved container investment enterprise.[32/2019; 27/2021]

[Act 27 of 2021 wef 12/04/2024]

(8) Rules made for the purpose of the definition of “related party” in subsection (7) may be made to take effect from (and including) 12 December 2018.[43ZA

[32/2019]