Extension of the Asian Currency Unit (ACU) Scheme
to All Offshore Financial Derivatives
47.
At present, ACUs are taxed
at a concessionary rate of 10 per cent on income
from transactions in certain specified derivatives,
including interest rate and currency swaps in
non-Singapore dollars, with offshore counterparties
and other ACUs.
48.
The trading of financial products
other than plain vanilla swaps has expanded considerably.
To further develop this area of business, the
10 per cent tax rate will be extended to income
derived by ACUs from all other offshore derivative
transactions in non-Singapore dollars. This extension
will take effect from Year of Assessment 2001
and will apply for 5 years.
