Section 39

Where an amount of the export profit of an export enterprise qualifies under sections 37 and 38 for the relief provided by this section (referred to in this section as the qualifying export profit), there shall be deducted from that amount such part of the allowances provided for in sections 16, 17, 18, 19, 19A, 20, 21 and 22 of the Income Tax Act (Cap. 134) as may be attributable to the qualifying export profit.

The part of the allowances referred to in subsection (1) so attributable to the qualifying export profit shall be deemed to be such amount which bears the same proportion to the total allowances deductible by the export enterprise under sections 16, 17, 18, 19, 19A, 20, 21 and 22 of the Income Tax Act (Cap. 134) (notwithstanding that no claim for such allowances has been made) as the amount of the qualifying export profit bears to the income of the export enterprise ascertained under section 37(1).

For each year of assessment the Comptroller shall issue to the export enterprise a statement for that year of assessment showing the balance of the qualifying export profit after deduction of the allowances under subsection (1) and the provisions of Parts XVII and XVIII of the Income Tax Act (relating to objections and appeals) shall apply, with the necessary modifications, as if such a statement were a notice of assessment given under those provisions.

Subject to section 40(6), where any statement issued under subsection (2) has become final and conclusive, an amount equal to 90% of the balance of such qualifying export profit shall not form part of the statutory income of the export enterprise for that year of assessment and shall be exempt from tax.