Singapore legislation
Clause 17
of Economic Expansion Incentives (Relief from Income Tax) Bill
Clause 17
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 such expenditure exceeds one million dollars; or
where such expenditure is less than one million dollars but exceeds one hundred thousand dollars, and will result in an increase of not less than thirty per centum in value at original cost of all the productive equipment of the company,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 such company as an expanding enterprise and issue an expansion certificate to such company, subject to such conditions as he thinks fit.
(3)
For the purposes of this Part of this Act, “new capital expenditure” means expenditure incurred by a company in the purchase of productive equipment which is intended to increase its production or profitability;Provided that 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 such productive equipment is economically justifiable; and
the purchase price represents a fair open market value of such 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 such date shall be deemed to be the expansion day for the purposes of this Part of this Act.
(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 of this Act shall have effect as if the day so substituted were the expansion day in relation to such expanding enterprise.