Singapore legislation
Section 21
of Economic Expansion Incentives (Relief from Income Tax) Act
Section 21
Issue of expansion certificate and amendment thereof
(1)
Any company intending to incur new capital expenditure for the purpose of the manufacture or increased manufacture of an approved product may, where the expenditure exceeds $10 million, make an application in writing to the Minister to be approved as an expanding enterprise, in such form and with such particulars as may be prescribed.
(2)
Where the Minister is satisfied that it is expedient in the public interest to do so, he may approve that company as an expanding enterprise and issue an expansion certificate to the company, subject to such conditions as he thinks fit.
(3)
In this Part, “new capital expenditure” means expenditure incurred by a company in the purchase of productive equipment which is intended to increase its production or profitability.
(3A)
Any expenditure incurred in the purchase of productive equipment which is not new shall be deemed not to be new capital expenditure unless it is proved to the satisfaction of the Minister that —
the purchase of the productive equipment is economically justifiable; and
the purchase price represents a fair open market value of the productive equipment.
(4)
Every expansion certificate issued under this section shall specify the date on or before which the productive equipment shall be put into operation and that date shall be deemed to be the expansion day for the purposes of this Part.
(5)
The Minister may, in his discretion, upon the application of any expanding enterprise, amend its expansion certificate by substituting for the expansion day specified therein such earlier or later date as he thinks fit and thereupon the provisions of this Part shall have effect as if the date so substituted were the expansion day in relation to that expanding enterprise.