Clause 38

by deleting “24.5%” in subsection (1)(a) and (b) and substituting in each case “22%”;

by inserting, immediately after subsection (3), the following subsections:“(3A) Notwithstanding anything in this Act but subject to subsection (3B) and sections 13(1)(r) and 40A, tax at the rate of 15% shall be levied and paid on the gross amount of any income accruing in or derived from Singapore on or after 3rd May 2002 from any profession or vocation carried on by —

an individual not resident in Singapore and whose principal place of business is situated outside Singapore; or

a foreign firm.(3B) Any individual or foreign firm to which subsection (3A) applies may make an irrevocable option to be taxed under subsection (1)(b) within 30 days from the date of payment of the income to the individual or firm or, where such payment was made before the date of commencement of the Income Tax (Amendment) Act 2002, within 30 days after that date.(3C) In subsection (3A), “foreign firm” means an unincorporated body of 2 or more persons who have entered into partnership with one another with a view to carrying on business for profit and whose principal place of business is situated outside Singapore.”;

by deleting the words “subsection (3)” in subsection (4) and substituting the words “subsections (3) and (3A)”; and

by deleting subsection (8) and substituting the following subsection:“(8) The reference to 22% in subsection (1) shall, for the year of assessment 2002, be read as a reference to 24.5%.”.