Clause 5

Subject to this section, where the Comptroller is satisfied that —

a person carrying on a manufacturing trade or business has incurred expenditure on or after 1st April, 1980, in undertaking directly by himself, or in paying a research and development organisation to undertake on his behalf, an approved research and development project in Singapore which is related to that trade or business; or

a research and development organisation has incurred expenditure on or after 1st April, 1980, in undertaking an approved research and development project in Singapore and no deduction under this section has been allowed to another person in respect of any expenditure for that project or for another project of which that project forms a part,there shall be allowed to that person or research and development organisation a further deduction of the amount of such expenditure in addition to the deduction allowed under section 14 or 14D.(2) The Minister may —

specify the maximum amount of the expenditure (or any item thereof) incurred to be allowed under subsection (1);

impose such conditions as he thinks fit when approving the research and development project and may specify the period or periods for which deduction is to be allowed under this section.(3) No deduction shall be allowed under this section in respect of any expenditure which is not allowed under section 14 or 14D.(4) For the purposes of this section, “approved” means approved by the Minister or such person as he may appoint.”.