Clause 2

Section 10 of the Income Tax Act (referred to in this Act as the principal Act) is amended by inserting, immediately after subsection (8), the following subsection:“(9) For the purposes of paragraph (a) or (f) of subsection (1), the income derived by any author or composer or any company in which he beneficially owns all the issued share capital, from any royalties or other payments received from a publisher carrying on the business of publishing in Singapore as consideration for the assignment of or for the right to use the copyright in any literary, dramatic, musical or artistic work shall be deemed to be the amount remaining after the deductions allowable under Part IV have been made or an amount equal to 10 per cent of the gross amount of the royalties or other payments, whichever is the less.”.