Singapore legislation
Clause 6
of Economic Expansion Incentives (Relief from Income Tax) Bill
Clause 6
Tax relief period
(1)
The tax relief period of a pioneer enterprise shall commence on its production day and shall, subject to subsection (2) of this section, continue for a period of —
two years, where its fixed capital expenditure is less than two hundred and fifty thousand dollars;
three years, where its fixed capital expenditure is not less than two hundred and fifty thousand dollars but is less than five hundred thousand dollars;
four years, where its fixed capital expenditure is not less than five hundred thousand dollars but is less than one million dollars;
five years, where its fixed capital expenditure is not less than one million dollars.
(2)
The Minister may direct the extension of the tax relief period of a pioneer enterprise —
where the tax relief period is two years and he is satisfied that the pioneer enterprise has incurred by the end of that period fixed capital expenditure of not less than two hundred and fifty thousand dollars, to three years from its production day;
where the tax relief period is two or three years and he is satisfied that the pioneer enterprise has incurred by the end of that period fixed capital expenditure of not less than five hundred thousand dollars, to four years from its production day; and
where the tax relief period is two, three or four years and he is satisfied that the pioneer enterprise has incurred by the end of that period fixed capital expenditure of not less than one million dollars, to five years from its production day.
(3)
For the purposes of this section, in relation to a pioneer enterprise, “fixed capital expenditure” means capital expenditure incurred by the pioneer enterprise on its factory in Singapore, and on any plant or machinery used in Singapore in connection with its pioneer product.
(4)
For the purpose of obtaining a direction under subsection (2) of this section —
a pioneer enterprise shall make an application in writing to the Minister not later than one month after the date on which its tax relief period ends, or within such further time as he may allow; and
an application made under paragraph (a) of this subsection shall contain particulars of the fixed capital expenditure incurred by the applicant including, where necessary, particulars of such capital expenditure as the applicant is desirous that the Minister shall take into account as forming part of its fixed capital expenditure.
(5)
Upon receipt of any such application, the Minister may call for such further particulars as he considers necessary, and shall either make the direction in accordance with subsection (2) of this section or shall cause a notice of refusal to make such direction to be sent to the applicant.