Singapore legislation
Clause 3
of Economic Expansion Incentives (Relief from Income Tax) (Amendment) Bill
Clause 3
New Part IIA
The principal Act is amended by inserting, immediately after Part II, the following Part:“PART IIAPIONEER SERVICE COMPANIESInterpretation of this Part15A. For the purposes of this Part, unless the context otherwise requires —“commencement day”, in relation to a pioneer service company, means the date specified under section 15B(3) or (4) in the certificate issued to that company under that section;“pioneer service company” means a company which has been issued with a certificate under section 15B;“qualifying activity” means any of the following: (a)any engineering or technical services including laboratory, consultancy and research and development activities;
computer-based information and other computer related services;
the development or production of any industrial design; and
such other services or activities as may be prescribed.Application for and issue and amendment of certificate for pioneer service company15B.—
Where a company is engaged in any qualifying activity, the company may apply in the prescribed form to the Minister for approval as a pioneer service company.(2) The Minister may, if he considers it expedient in the public interest to do so, approve the application and issue the company with a certificate subject to such terms and conditions as he thinks fit.(3) Every certificate issued under this section shall specify a date (not earlier than 1st April 1983) as the commencement day from which the company shall be entitled to tax relief under this Part.(4) The Minister may in his discretion, upon the application of the company, amend its certificate by substituting for the commencement day specified therein such earlier or later date as he thinks fit and thereupon the provisions of this Part shall have effect as if the date so substituted were the commencement day in relation to that certificate.Tax relief period of pioneer service company15C. The tax relief period of a pioneer service company, in relation to any qualifying activity specified in any certificate issued to that company under section 15B, shall commence on the commencement day and shall continue for a period of 5 years or such longer period, not exceeding 10 years, as the Minister may determine.Application of sections 7 to 15 to pioneer service company15D. Sections 7 to 15 shall apply to a pioneer service company under this Part and for the purposes of such application —
any reference to a pioneer enterprise shall be read as a reference to a pioneer service company;
any reference to a pioneer product shall be read as a reference to a qualifying activity;
any reference to the production day of a pioneer enterprise shall be read as a reference to the commencement day of a pioneer service company;
any reference to a pioneer certificate shall be read as a reference to a certificate issued under section 15B.”.