Singapore legislation

Clause 4

Repeal and re-enactment of section 14B

Section 14B of the principal Act is repealed and the following substituted therefor: —“Further deduction for expenses relating to approved trade fairs, exhibitions or trade missions or to maintenance of overseas trade office14B.—

(1)

Where the Comptroller is satisfied that expenses have been incurred —

(a)

on or after 4th June, 1977, by a manufacturer, trader, or bank resident in or having a permanent establishment in Singapore in establishing, maintaining or otherwise participating in an approved overseas trade fair, exhibition or trade mission which is for the primary purpose of promoting the export of goods manufactured in Singapore;

(b)

on or after 13th September, 1977, by a manufacturer resident in or having a permanent establishment in Singapore in establishing, maintaining or otherwise participating in an approved local trade fair or exhibition which is for the primary purpose of promoting the export of goods manufactured in Singapore; or

(c)

on or after 1st January, 1978, by a company resident in Singapore which is engaged in the manufacture of goods in Singapore or the export of goods manufactured in Singapore, in maintaining an approved overseas trade office established exclusively for the purpose of promoting the export of such goods,there shall be allowed a further deduction of the amount of such expenses in addition to the deduction allowed under section 14 of this Act, subject to the following provisions of this section.(2) In respect of the deduction allowable to a manufacturer under paragraph (b) of subsection (1) of this section, if the export sales of the manufacturer do not exceed fifty per cent of his total sales in the basis period for the year of assessment, the amount of deduction to be allowed shall be determined in accordance with the formula where A is the amount of expenses incurred;Bis the export sales in the basis period for the year of assessment; andCis the total sales in the basis period for the year of assessment.(3) No deduction shall be allowed under this section in respect of —

(a)

any expenses which are not allowed as deductions under section 14 of this Act;

(b)

travelling, accommodation and subsistence expenses or allowances for more than two employees taking part in the approved overseas trade fair, exhibition or trade mission;

(c)

any expenses incurred by an export enterprise under Part IV of the Economic Expansion Incentives (Relief from Income Tax) Act (Cap. 135);

(d)

any expenses relating to an approved overseas trade office —

(i)

which are incurred in the establishment of the approved overseas trade office;

(ii)

by way of remuneration, travelling, accommodation and subsistence expenses or allowances for more than three employees of the approved overseas trade office;

(iii)

which are specifically excluded as a condition for the approval of the overseas trade office under this section;

(iv)

which are incurred after the end of the first two years of the date of establishment of the approved overseas trade office; and

(v)

which are incurred by a company having a permanent establishment subject to tax in the country in which the approved trade office is established.(4) In this section, “approved” means approved by the Minister or such person as he may appoint for the purpose of this section.”.

Read in full context — Income Tax (Amendment) Bill →