| At present, Asian Currency Units
(ACUs) of banks and merchant banks enjoy a concessionary
tax of 10 per cent on income earned from ACU activities.
They also enjoy a further reduction in the tax rate
to 5 per cent on the incremental income derived from
certain high-value added activities. To qualify, the
taxable income of some of these activities must each
exceed S$10 million.
To give a further boost to ACU activities,
the 5 per cent tax on incremental income will be extended
to income derived from all taxable ACU activities if
the total taxable income from all such activities exceed
S$50 million. ACUs can avail themselves of either the
existing incentive for selected high-value activities
or the new incentive which covers all ACU activities.
The new incentive will be granted for an initial period
of 5 years with effect from Year of Assessment 1998.
|
