Singapore legislation
Clause 14
of Economic Expansion Incentives (Relief from Income Tax) (Amendment) Bill
Clause 14
Amendment of section 19
Section 19 of the principal Act is hereby amended —
by deleting subsection (2) thereof and substituting therefor the following: —“(2) The income of the expanding enterprise in respect of its trade or business to which its expansion certificate relates (hereinafter in this Part referred to as the “expansion income”) shall be ascertained, for any accounting period during its tax relief period, in accordance with the provisions of the Income Tax Ordinance (Cap. 166):Provided that in determining the income of the expanding enterprise, the allowances provided for in sections 16, 17, 18, 19, 19A, 20, 21 and 22 of the Income Tax Ordinance shall be taken into account notwithstanding that no claim for such allowances has been made.”; and
by deleting subsections (5) and (6) thereof and substituting therefor the following: —“(5) The expansion income so ascertained shall be compared with the corresponding income of the expanding enterprise for the accounting period immediately preceding the tax relief period (hereinafter in this Part referred to as the “pre-relief income”) and relief shall be given to the following extent: —
where the pre-relief income equals or exceeds the expansion income, no relief shall be given;
where the expansion income exceeds the pre-relief income, the amount of excess shall not form part of the statutory income of the expanding enterprise for any year of assessment and shall be exempt from tax:Provided that the amount of exempt income shall not, unless the Minister in his discretion otherwise decides, exceed the sum which bears the same proportion to the expansion income as the new capital expenditure on productive equipment bears to the total of such new capital expenditure and the value at original cost of the productive equipment owned or used by the expanding enterprise prior to its expansion.(6) Where an expanding enterprise has been approved as a pioneer enterprise or as an export enterprise or as both, the total amount of income exempted under this section and Part II or Part IV of this Act shall not exceed one hundred per centum of the expansion income.”.