Singapore legislation
Section 38
of Economic Expansion Incentives (Relief from Income Tax) Act
Section 38
Conditions for relief
(1)
The tax relief provided under this Part applies to an export enterprise during its tax relief period subject to the following conditions:
in respect of the first year of assessment, for which the export year forms the basis period, the export sales shall amount, in proportion, to not less than 20% of the total sales and, in value, to not less than $100,000 during that accounting period;
in respect of subsequent years of assessment, subject to the export sales having satisfied that minimum proportion and value in the export year or where a direction has been made by the Minister under subsection (2) in respect of that year, the export sales shall amount in value to not less than $100,000 during the relevant accounting period; and
where the minimum requirements as to proportion and value have not been satisfied in the export year, and no direction has been made by the Minister under subsection (2), the relief provided by this Part shall apply for the first time only in respect of a year of assessment where during the relevant accounting period the minimum requirements as to proportion and value have both been satisfied or where a direction to this effect has been made by the Minister under subsection (2), and thereafter shall continue to be available where during the relevant accounting period the minimum requirement as to value has been satisfied.
(2)
Notwithstanding subsection (1), where, in its export year, the export sales of an export enterprise amount in value to $100,000 or more, but in proportion, to less than 20% of the total sales, and the Minister is satisfied, on the representations of the enterprise that the failure to realise that proportion of the total sales was due to causes beyond the control of the enterprise, or having regard to the quantum of its output and sales other than export sales, it is reasonable and expedient in the public interest to do so, the Minister may direct that the relief provided under this Part shall apply in respect of the year of assessment corresponding to its export year or in respect of any subsequent year of assessment during its tax relief period.