The Business Times
SUBSCRIBERS

Tax deductions for banks' Basel III issues

Additional Tier 1 instruments to be treated as debt for tax purposes, to level field for S'pore-incorporated banks

Published Fri, Feb 21, 2014 · 10:00 PM
Share this article.

LOCAL banks which have been selling debt to boost their capital in order to fall in line with stricter regulatory requirements gained more clarity yesterday on the tax treatment for their funding instruments.

The government said: "To provide tax certainty and maintain a level playing field for Singapore-incorporated banks which issue Basel III Additional Tier 1 instruments, such instruments - other than shares - will be treated as debt for tax purposes.

"Hence, distributions on such instruments will be deductible for issuers, and taxable in the hands of investors, subject to existing rules."

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to  t.me/BizTimes

New Articles

SUPPORT SOUTH-EAST ASIA'S LEADING FINANCIAL DAILY

Get the latest coverage and full access to all BT premium content.

SUBSCRIBE NOW

Browse corporate subscription here