Singapore legislation
Clause 16
of Economic Expansion Incentives (Relief from Income Tax) (Amendment) Bill
Clause 16
Repeal and re-enactment of section 23
Section 23 of the principal Act is hereby repealed and the following substituted therefor: —“Tax relief period23.—
Except as provided in subsection (2) of this section, the tax relief period of an export enterprise shall —
where the export enterprise is not a pioneer enterprise, commence from its export year and continue for a period of five years inclusive of such export year; and
where the export enterprise is a pioneer enterprise, commence from its export year or, if the export year falls within the period of its old trade or business, from the commencement of its new trade or business, and shall continue for such period as together with its tax relief period as a pioneer enterprise will extend in the aggregate to eight years.(2) Notwithstanding the provisions of subsection (1) of this section, where an export enterprise has incurred or is intending to incur a fixed capital expenditure of —
not less than one thousand million dollars; or
not less than one hundred and fifty million dollars but less than one thousand million dollars, and —
more than fifty per centum of the paid-up capital of the export enterprise is held by persons permanently resident in Singapore; and
in the opinion of the Minister the export enterprise will promote or enhance the economic or technological development of Singapore,its tax relief period shall —
where the export enterprise is not a pioneer enterprise, commence from its export year and continue for a period of fifteen years inclusive of such export year; and
where the export enterprise is a pioneer enterprise, commence from its export year or, if the export year falls within the period of its old trade or business, from the commencement of its new trade or business, and shall continue for such period as together with its tax relief period as a pioneer enterprise will extend in the aggregate to fifteen years.(3) The Minister may, where he is satisfied that it is expedient in the public interest to do so, extend the tax relief period of any export enterprise for such further period as he thinks fit.(4) For the purposes of subsection (2) of this section, “fixed capital expenditure” means capital expenditure which has been or is intended to be incurred by the export enterprise, in connection with its export product, on its factory building (excluding land) in Singapore, and on any new plant or new machinery used in Singapore and, subject to the approval of the Minister, on any second-hand plant or second-hand machinery used in Singapore.”.