Clause 6

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

export market development expenditure for the carrying out of an approved marketing project overseas; or

advertising expenses in respect of advertisements placed in any approved Singapore publication designed for publicity overseas,have been incurred on or after the 1st day of April 1979, by a company resident in Singapore principally for promoting the export of goods manufactured in Singapore, there shall be allowed a further deduction of the amount of such expenditure in addition to the deduction allowed under section 14 of this Act.(2) The Minister may specify the maximum amount of export market development expenditure (or any item thereof) or of advertising expenses to be allowed under subsection (1) of this section.(3) No deduction shall be allowed under this section in respect of —

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

any expenses incurred during its tax relief period (or qualifying period in the case of investment allowance) by a company which is given tax relief under the Economic Expansion Incentives (Relief from Income Tax) Act (Cap. 135);

any expenses which are allowed as deductions under section 14B of this Act; or

travelling, accommodation and subsistence expenses or allowances for more than two employees taking part overseas in the approved marketing project.(4) For the purposes of this section —

“approved” means approved by the Minister or such person as he may appoint;

“export market development expenditure” means —

expenses directly attributable to the carrying out of export market research or obtaining of export market information;

expenses in respect of advertisements placed in overseas news media, including television, newspapers and trade journals; or

expenses incurred on overseas export promotion campaigns.Expenditure on scientific research14D.—

For the purpose of ascertaining the income of any person carrying on a manufacturing trade or business, the following expenditure incurred on or after the 1st day of April 1979 (other than any amount which is allowable as a deduction under section 14 of this Act) by that person shall be allowed as a deduction: —

expenditure incurred on scientific research carried out in Singapore and related to that trade or business (except to the extent that it is capital expenditure on plant, machinery, land or buildings or on alterations, additions or extensions to buildings or in the acquisition of rights in or arising out of scientific research); and

payments to an approved research institute for scientific research related to that trade or business.(2) In this section —“approved research institute” means any institute or body which is approved by the Minister for the purposes of this section;“scientific research” means any activities in the fields of natural or applied science for the extension of knowledge.(3) For the purposes of this section —

any reference to scientific research related to a trade or business shall be read as including a reference to any scientific research which may lead to or facilitate an extension, or an improvement in the technical efficiency, of that trade or business; and

any expenditure incurred by a person prior to the commencement of his manufacturing trade or business shall be deemed to have been incurred by that person on the first day on which he carries on that trade or business.”.