Clause 2

by inserting, immediately after the words “section 13A” in the 2nd line of subsection (4)(a), the words “or by an approved shipping investment enterprise within the meaning of section 13S”;

by deleting the 8th to 11th lines of subsection (4)(a) and substituting the following words: “where Ais the amount of allowances under section 19 or 19A made to the enterprise in respect of the Singapore ship against any income exempt from tax under section 13A or 13S;”;

by deleting the words “would be income of a shipping enterprise within the meaning of section 13A or income of an approved international shipping enterprise within the meaning of section 13F” in the 2nd, 3rd and 4th lines of subsection (4)(b) and substituting the words “is exempt from tax under section 13A or 13F, or the income derived from the chartering or finance leasing of which is exempt from tax under section 13S”;

by deleting the words “or 13F” in the 12th line of subsection (4)(b) and substituting the words “, 13F or 13S”;

by inserting, immediately after the words “section 13F” in subsection (5), the words “or the income derived from the chartering or finance leasing of which is exempt from tax under section 13S”;

by inserting, immediately after subsection (5), the following subsection:“(5A) In subsections (4) and (5), “finance leasing” has the same meaning as in section 13S(20).”;

by inserting, immediately after subsection (6), the following subsection:“(6A) For the avoidance of doubt, section 10(5) in force immediately before 10th December 2002 shall continue to apply to any gains or profits directly or indirectly derived by the exercise, assignment or release of any right or benefit to acquire shares (including stocks) in a company granted to a person before 1st January 2003, whether in his name or in the name of his nominee or agent, where the right or benefit was obtained by that person by reason of any office or employment held by him.”;

by deleting the words “from a person carrying on in Singapore the business of publishing, of recording music or of producing cinematograph films, choreographic works or plays” in the 4th, 5th and 6th lines of subsection (14);

by deleting subsection (16) and substituting the following subsection:“(16) For the purposes of subsection (1)(a) and (f), the income derived by an individual who is the inventor, author, proprietor, designer or creator (as the case may be) of an approved intellectual property or approved innovation, or by any company in which he beneficially owns all the issued shares, from any royalties or other payments received as consideration for the assignment of or the rights in the approved intellectual property 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 royalties or other payments,whichever is the less.”;

by deleting the definition of “rights in the approved invention or approved innovation” in subsection (18) and substituting the following definition:“ “rights in the approved intellectual property or approved innovation” means the rights relating to any patent, copyright, trade mark, industrial design, layout-design of integrated circuit, or know-how of an approved intellectual property or approved innovation, where a substantial part of the work in producing the approved intellectual property or innovation is undertaken in Singapore.”; and

by deleting paragraph (f) of subsection (20A) and substituting the following paragraph:“(f)discount from —

qualifying debt securities issued during the period from 27th February 2004 to 16th February 2006 which mature within one year from the date of issue of those securities; or

qualifying debt securities issued during the period from 17th February 2006 to 31st December 2008; and”.