Singapore legislation
Section 32
of Economic Expansion Incentives (Relief from Income Tax) Act
Section 32
Tax relief period
(1)
The tax relief period of an export enterprise shall —
not being a pioneer enterprise, commence from its export year and shall continue for a period of 5 years inclusive of the export year; or
being a pioneer enterprise, commence on the first day of its export year or, if the export year falls within the period of its old trade or business, on the date of the commencement of its new trade or business, and shall continue for a period of 3 years.
(2)
Notwithstanding subsection (1), where an export enterprise has incurred or is intending to incur a fixed capital expenditure of —
not less than $1,000 million; or
not less than $150 million but less than $1,000 million and —
more than 50% of the paid-up capital of the export enterprise is held by persons permanently resident in Singapore; and
in the opinion of the Minister the export enterprise will promote or enhance the economic or technological development of Singapore,its tax relief period —
where the export enterprise is not a pioneer enterprise, shall commence from its export year and continue for a period of 15 years inclusive of the export year; or
where the export enterprise is a pioneer enterprise, shall commence from its export year or, if the export year falls within the period of its old trade or business, from the date of the commencement of its new trade or business, and continue for such period as together with its tax relief period as a pioneer enterprise will extend in the aggregate to 15 years.
(3)
The Minister may, where he is satisfied that it is expedient in the public interest to do so and subject to such terms and conditions as he may impose, extend the tax relief period of any export enterprise for such further period as he thinks fit.
(4)
In subsection (2), “fixed capital expenditure” means capital expenditure which has been or is intended to be incurred by the export enterprise, in connection with its export product, on its factory building (excluding land) in Singapore, and on any new plant or new machinery used in Singapore and, subject to the approval of the Minister, on any secondhand plant or secondhand machinery used in Singapore.