Clause 2

by deleting subsection (3) and substituting the following subsections:“(3) Notwithstanding subsection (1), where a pioneer enterprise has incurred or has given a written undertaking to the Minister to incur a fixed capital expenditure of not less than $150 million and —

more than 50% of the paid-up capital of the pioneer enterprise is held by persons permanently resident in Singapore; and

such capital expenditure has been approved by the Minister as promoting or enhancing the economic or technological development of Singapore,the capital expenditure so incurred by the pioneer enterprise within its tax relief period in respect of any asset used for the purposes of its new trade or business shall, subject to such conditions as the Minister may impose, be deemed, for the purposes of sections 16, 17, 18, 19, 19A, 20, 21 and 22 of the Income Tax Act [Cap. 134], to have been incurred on the day immediately following the last day of its tax relief period:Provided that where the carrying on of a separate trade or business has been permitted under section 8(1), and an industrial building, plant or machinery is used both for the purposes of that trade or business and the trade or business relating to the relevant pioneer product, this subsection shall apply to that building, plant or machinery.(3A) Where a pioneer enterprise has, before the commencement of the Economic Expansion Incentives (Relief from Income Tax) (Amendment) Act 1991, incurred a fixed capital expenditure of not less than $1,000 million, subsection (3) shall apply to that enterprise in respect of that expenditure notwithstanding that the enterprise has not complied with paragraphs (a) and (b) of that subsection.”;

by inserting, immediately after the words “subsection (3)” in subsection (4), the words “or (3A)”; and

by deleting subsection (5) and substituting the following subsection:“(5) For the purposes of subsections (3) and (3A), “fixed capital expenditure” means capital expenditure in connection with a pioneer product, on factory building (excluding land) in Singapore and on any new plant or new machinery used in Singapore and, subject to the approval of the Minister, on any secondhand plant or secondhand machinery used in Singapore.”.