Clause 2

by deleting subsection (9) and substituting the following subsection:“(9) For the purposes of subsection (1)(a) and (f), the income derived by any author, composer or choreographer, or any company in which he beneficially owns all the issued share capital, from any royalties or other payments received from a person carrying on in Singapore the business of publishing, of recording music or of producing cinematograph films, choreographic works or plays 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 of the royalties or other payments remaining after the deductions allowable under Parts V and VI have been made; or

an amount equal to 10% of the gross amount of the royalties or other payments,whichever is the less.”;

by deleting subsection (10) and substituting the following subsection:“(10) For the purposes of subsection (1)(a) and (f), the income derived by an individual who is an inventor, author or proprietor of an approved invention or approved innovation, from any royalties or other payments received as consideration for the assignment of or for the rights in the approved invention or approved innovation shall be deemed to be —

the amount of the royalties or other payments remaining after the deductions allowable under Parts V and VI have been made; or

an amount equal to 10% of the gross amount of the royalties or other payments,whichever is the less.”;

by deleting subsection (12) and substituting the following subsection:“(12) In subsection (10) —“approved” means approved for such period not exceeding 5 years by the Minister or such person as the Minister may appoint;“innovation” means —

any new product or new service, or any new method used in the manufacture or processing of goods or materials or in the provision of services; or

any substantial improvement in any product or in the provision of any service, or in any method used in the manufacture or processing of goods or materials or in the provision of services,which involves novelty or originality;“rights in the approved invention or approved innovation” means the rights relating to any patent, copyright, industrial design, trade mark or know-how of an approved invention or approved innovation where a substantial part of the work in developing the invention or innovation is undertaken in Singapore.”; and

by deleting the words “in respect of any unit purchased with moneys other than those standing to his credit in the Central Provident Fund” in the 2nd, 3rd and 4th lines of subsection (13A).