Singapore legislation
Section 19J
of Economic Expansion Incentives (Relief from Income Tax) Act
Section 19J
Application for and issue of certificate to development and expansion company
(1)
Any company engaged in any qualifying activity may apply in the prescribed form to the Minister for approval as a development and expansion company.
(2)
The Minister may, if he considers it expedient in the public interest to do so, approve the application and issue the company with a certificate subject to such terms and conditions as he may impose.
(3)
Every certificate issued to a development and expansion company under this section shall specify —
a date as the commencement day from which the company shall be entitled to tax relief under this Part;
its qualifying activities; and
the concessionary rate of tax to be levied for the purposes of this Part.
(4)
The Minister may, in his discretion, upon an application of a development and expansion company, amend its certificate by substituting for the commencement day specified therein such other date as he thinks fit and thereupon the provisions of this Part shall have effect as if that date were the commencement day in relation to that certificate.
(5)
Notwithstanding section 43 of the Income Tax Act (Cap. 134), tax at such concessionary rate, not being less than 10% as the Minister may specify, shall be levied and paid for each year of assessment upon the expansion income derived by a development and expansion company during its tax relief period from its qualifying activities.
(6)
The expansion income shall be the income from such qualifying activitiesto which the certificate issued under this section relates that exceeds the average corresponding income.
(7)
The average corresponding income referred to in subsection (6) shall be determined by taking one-third of the total of the corresponding income from such qualifying activities for the 3 years immediately preceding the commencement day specified in the certificate issued under this section.
(8)
Notwithstanding subsection (7), the Minister may, if he thinks fit, specify any amount to be the average corresponding income in substitution of the amount determined under that subsection.