Singapore legislation
Clause 3
Clause 3
Amendment of section 10
Section 10 of the principal Act is amended by inserting, immediately after subsection (9), the following subsection:“(10) (a) For the purposes of subsection (1)(a) or (f), the income derived by an individual, being a citizen or permanent resident of Singapore who is an inventor or author of an approved invention or approved product innovation, from any royalties or other payments received as consideration for the assignment of or for the rights in the approved invention or approved product innovation shall be deemed to be the amount remaining after the deductions allowable under Part IV have been made or an amount equal to 10% of the gross amount of the royalties or other payments, whichever is the less.(b)Notwithstanding subsection (10)(a), where it appears to the Comptroller that any amount of income which has been determined under this subsection for the purposes of subsection (1)(a) or (f) ought not to have been so determined for any year of assessment, the Comptroller may, within 12 years after the end of that year of assessment, make such assessment or additional assessment upon the individual as may be necessary in order to make good any loss of tax.(c)In this subsection —“approved” means approved by the Minister or such other person as he may appoint;“product innovation” means —
any new product, or any new method in the manufacture or processing of goods or materials; or
a substantial improvement in any product, or in any method in the manufacture or processing of goods or materials,which involves novelty or originality but does not include a computer program unless it is in the nature of a new computer operating system or new language used in a computer program;“rights in the approved invention or approved product innovation” means the rights relating to any patent, copyright, industrial design or know-how of an approved invention or approved product innovation.”.