The guidance reflects the tax authority’s position concerning the tax treatment of investments held by insurers, reflecting a 2014 decision of the Singapore Court of Appeal. The guidance states that the tax authority will continue to treat the investments of insurers as their “revenue assets” and accordingly tax the gains realized on disposal of these investments as “trade income” (on the basis that the investment activities are an integral part of the insurance business of the insurer). Any investment income derived from the investments prior to disposal, such as dividends, interest, or rental, also would be taxable as “trade income.”
The guidance states that the tax authority expects the bulk of insurers’ investments to be revenue in nature.
Read a November 2015 report [PDF 461 KB] prepared by the KPMG member firm in Singapore: Income Tax Treatment of Gains Derived from the Disposal of Investments of Insurers
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.