Tender, cancellation and settlement interest
Published 2 June 2025, Singapore issuer notes are QDS due in symbolic T+2. Its offer buys validly tendered/accepted notes for cash subject to offer conditions being satisfied or waived; every purchased note is retired and cancelled. Each $1,000 principal validly accepted by the early deadline receives $(1,000+X). Separately holders receive accrued/unpaid interest from the last interest payment up to, but excluding, the specified Year T settlement date. X is anonymised, not a disclosed standard fee.
Classification and three tax outcomes
Buying before maturity is early redemption; the X excess is the issuer’s fee/premium in connection with it. IRAS classifies it as early redemption fee and/or redemption premium under 13(16). Subject where applicable to all 13(2F)/43H and QDS Regulations conditions, holders can obtain 13(1)(ba)/43H concessions/exemptions, and individuals have 13(1)(zk) exemption except Singapore-partnership or Singapore trade/business/profession income. Paid/deemed-paid Tender Fees to non-residents are not subject to 45A(2B)(a) withholding.
Keep the specified payment separate
The decision concerns the tender excess and does not replace the treatment of separately accrued interest or dispense with QDS qualification. Only the applicant and specified transaction are bound and the summary is not updated for later tax-law or interpretation changes.
Official source
This article independently explains the substantive contents of the official PDF, including the relevant conditions, procedures and annexes. The linked document remains the authoritative source for its original wording, and later changes should be checked separately.
Read the official PDF ↗