Clause 15

Where the Comptroller is satisfied that —

any investment development expenditure for the carrying out of an approved investment project overseas; or

any expense for the maintenance of an approved overseas project development office,has been incurred on or after 1st April 1993 by an approved firm or company resident in Singapore and carrying on business in Singapore, there shall be allowed —

where such expenditure or expense is allowable as a deduction under section 14, a further deduction of the amount of such expenditure or expense in addition to the deduction allowed under that section; and

where such expenditure or expense is not allowable as a deduction under section 14, a deduction equal to twice the amount of such expenditure or expense.(2) The Minister or such person as he may appoint may —

specify the maximum amount of investment development expenditure for the carrying out of an approved investment project overseas or expenses for the maintenance of an approved overseas project development office (or any item thereof) to be allowed under subsection (1); and

impose such conditions as he thinks fit when approving the investment project or the overseas project development office for which the deduction is to be allowed under this section.(3) No deduction shall be allowed under this section in respect of —

travelling, accommodation and subsistence expenses or allowances for more than two employees taking part in an approved investment project overseas;

any expenses for the maintenance of an approved overseas project development office —

which are incurred for the establishment of that office;

by way of remuneration, travelling, accommodation and subsistence expenses or allowances for more than 3 employees of that office;

which are specifically excluded as a condition of approval for that office under this section;

which are incurred after the end of the first 6 months of the establishment of that office; and

which are incurred by the approved firm or company having a permanent establishment which has, during the first 6 months of the establishment of that office, income chargeable to tax in the country in which that office is established.(4) As soon as any amount of deduction is allowed to any company under subsection (1), a sum equal to the amount of the expenditure or expense incurred by the company which qualified for the deduction under subsection (1) shall be credited to an account (referred to in this section as the further deduction account) to be kept by the company for the purposes of this section.(5) Section 14B(3B) to (3E) shall apply with the necessary modifications to any company to which a deduction is allowed under subsection (1) and, in relation to a deduction allowed to any company under subsection (1)(ii), the references to further deduction in those subsections shall be read as references to a deduction of a sum equal to the amount of the expenditure or expense incurred by the company which qualified for the deduction under subsection (1)(ii).(6) For the purposes of this section —“approved” means approved by the Minister or such person as he may appoint;“investment development expenditure” means expenses directly attributable to the carrying out of —

any study to identify investment overseas; and

any feasibility or due diligence study on any approved investment overseas;“overseas project development office” means any office established for the purpose of identifying, initiating and developing any approved investment overseas.”.