Singapore legislation
Clause 28
of Economic Expansion Incentives (Relief from Income Tax) Bill
Clause 28
Computation of export profits
(1)
The income of an export enterprise in respect of its trade or business to which its export enterprise certificate relates shall be ascertained (after making any necessary adjustments in consequence of a direction under section 9 of this Act, as applied to this Part by section 24 of this Act), for any accounting period during its tax relief period, in accordance with the provisions of the Income Tax Ordinance (Cap. 166), without making any deductions which may fall to be made under any of the provisions contained in sections 16, 17, 18, 19, 19A, 20, 21 and 22 of that Ordinance.
(2)
The total export profits of an export enterprise shall be deemed to be that part of the income so ascertained which bears the same proportion to such income as the total value of the export sales (f.o.b.) of its export product or export produce whether made directly or indirectly by sale to an independent exporter (hereinafter in this Part referred to as “the export sales”) bears to the total value of the sums receivable in respect of —
its domestic sales of manufactured products or produce at ex-factory prices;
its export sales (f.o.b.) of its export product and export produce;
its export sales (f.o.b.) of other products; and
all other sales and provisions of service,(hereinafter in this Part referred to as “the total sales”).
(3)
Where a company exports any products or produce, to which its export enterprise certificate relates, to a country which is an established export market, the amount of its export profit arising from the export of such products or produce to such country which will qualify for the relief provided by section 30 of this Act shall be the excess of such profit over a fixed sum to be determined in the following manner: —
in the case of a company which has previously exported such products or produce to an established export market, the average annual export profit of the company during the period ending 31st December, 1965, ascertained in the manner provided by subsection (5) of this section; and
in the case of a company which has not prior to 31st December, 1965, exported such products or produce to an established export market, the fixed sum shall be such an amount as the Minister may determine having regard to the total sales of such company and the percentage of the total sales of other major export enterprises which is exported to such established export market:Provided that where such company is a pioneer enterprise this subsection shall apply notwithstanding that such company was deemed to commence a new trade or business at the end of its tax relief period as a pioneer enterprise.
(4)
Where a company exports any products or produce to which its export enterprise certificate relates, to a country which is not an established export market the whole of its export profit arising from the export of such products or produce to such country shall qualify for the relief provided by section 30 of this Act.
(5)
For the purposes of this section —
“average annual export profit” means a sum equal to one-fifth of the total export profits of the company from the export of such products or produce to an established export market ascertained in the manner provided by subsection (2) of this section during the five year period ending 31st December, 1965:Provided that —
where the company concerned has adopted an accounting period ending on a date other than 31st December, the Comptroller may make such adjustment on a time basis as appear to be reasonable in ascertaining the total export profits of such period;
where the company concerned has exported such products or produce to an established export market for a period of less than five years prior to 31st December, 1965, the average annual export profit shall be ascertained by dividing the total export profits of the period by the number of months in which such export has been carried on and multiplying the resultant by twelve;
“established export market” means a country to which any product or produce, approved under section 20 of this Act as an export product or export produce, has been exported by any Singapore manufacturer continuously and in such volume as the Minister may determine for a minimum period of five years immediately preceding 1st January, 1966.