Clause 40

by deleting the words “or the year of assessment 2015” in subsections (1)(b), (2)(b), (4A)(a), (4B)(b), (4E)(b), (19) and (22) and substituting in each case the words “, the year of assessment 2015, the year of assessment 2016, the year of assessment 2017 or the year of assessment 2018”;

by deleting the words “or the year of assessment 2015” in subsection (2A)(h)(ii) and (i)(iv) and substituting in each case the words “the year of assessment 2015, the year of assessment 2016, the year of assessment 2017 or the year of assessment 2018”;

by deleting the words “or (2B)” in subsections (2A)(h), (7) and (10)(b) and substituting in each case the words “, (2B), (2BAA) or (10)”;

by inserting, immediately after the words “PIC automation equipment” in subsection (2A)(h), the words “(including any expenditure that is treated as expenditure incurred on the provision of PIC automation equipment under section 19A(16A))”;

by deleting the word “and” at the end of subsection (2A)(h);

by deleting the full-stop at the end of paragraph (i) of subsection (2A) and substituting the word “; and”, and by inserting immediately thereafter the following paragraph:“(j)section 37IC.”;

by deleting the words “and the year of assessment 2015” in subsection (4) and substituting the words “, the year of assessment 2015, the year of assessment 2016, the year of assessment 2017 and the year of assessment 2018”;

by deleting the words “or (2B)” in subsection (4A)(b) and substituting the words “, (2B) or (2BAA)”;

by deleting the words “year of assessment 2015” in subsection (4E)(e) and substituting the words “year of assessment 2018”;

by inserting, immediately after subsection (8), the following subsections:“(8A) Where a qualifying person incurs capital expenditure during the basis period for the year of assessment 2016 or a subsequent year of assessment on the provision of any PIC automation equipment, he shall only be allowed to make an election under subsection (1) or (4A) in respect of that expenditure if he proves to the satisfaction of the Comptroller that the PIC automation equipment is in use for the purposes of his trade, profession or business.(8B) The Comptroller may, subject to such conditions as he may impose, waive the application of subsection (8A) if he is satisfied that there is a reasonable cause for the PIC automation equipment not being in use for the purposes of the person’s trade, profession or business.”;

by deleting the words “or (2)” in subsection (14) and substituting the words “, (2) or (10)”;

by deleting the words “section 14A(1A) or (1B), 14DA(2), 14R, 14S, 14T, 14W, 19A(2A) or (2B) or 19B(1A) or (1B)” in subsection (14A) and substituting the words “section 14A(1A), (1B) or (1BA), 14DA(2), 14R, 14S, 14T, 14W, 19A(2A), (2B) or (2BAA) or 19B(1A), (1B) or (1BAA)”;

by inserting, immediately after the definition of “cash price” in subsection (21), the following definitions:“ “central hirer” and “central hiring arrangement” have the same meanings as in section 14R(6);”;

by inserting, immediately after the definition of “local employee” in subsection (21), the following definition:“ “local person”, in relation to a qualifying person who elects for a cash payout under subsection (1) or (4A), means any citizen or permanent resident of Singapore, but excludes —

a shareholder who is also a director of the qualifying person if the qualifying person is a company within the meaning of section 4 of the Companies Act (Cap. 50); and

a partner under a contract for service of the qualifying person if the qualifying person is a partnership;”;

by deleting the word “and” at the end of paragraph (b)(i) of the definition of “qualifying person” in subsection (21);

by inserting the word “and” at the end of paragraph (b)(ii) of the definition of “qualifying person” in subsection (21);

by inserting, immediately after sub‑paragraph (ii) of paragraph (b) of the definition of “qualifying person” in subsection (21), the following sub-paragraph:“(iii)in the case of a quarter of the basis period, for the year of assessment 2016, the year of assessment 2017 or the year of assessment 2018, all 3 months of the quarter;”;

by deleting the full‑stop at the end of the definition of “quarter” in subsection (21) and substituting a semi-colon, and by inserting immediately thereafter the following definition:“ “related parties” has the same meaning as in section 13(16).”;

by inserting, immediately after subsection (21), the following subsections:“(21A) For the purpose of paragraph (b)(ii) and (iii) of the definition of “qualifying person” in subsection (21), the reference to a local employee of a qualifying person based on the qualifying person’s payroll for any part of the basis period for the year of assessment 2014 or a subsequent year of assessment, includes a reference to —

a local person —

who is engaged by the central hirer of a central hiring arrangement for a group of related parties which includes the qualifying person;

who is deployed to work solely for the qualifying person in that part of the basis period;

who is on the payroll of the central hirer or the qualifying person for that part of the basis period; and

whose salary and other remuneration (including training expenditure incurred in respect of the person) for that part of the basis period is borne, directly or indirectly, by the qualifying person; and

a local person —

who, being an employee of another person (referred to in this subsection and subsection (21B) as the employer), is seconded to the qualifying person under a bona fide commercial arrangement to work solely for the qualifying person in that part of the basis period;

who is on the payroll of the employer or the qualifying person for that part of the basis period; and

whose salary and other remuneration (including training expenditure incurred in respect of the person) for that part of the basis period is borne, directly or indirectly, by the qualifying person,and the local person shall be treated as employed by the qualifying person for the purpose of paragraph (b) of the definition.(21B) In determining whether the central hirer or employer referred to in subsection (21A) satisfies the definition of “qualifying person” in subsection (21), the person referred to in subsection (21A)(a) or (b) shall not be treated as being employed by the central hirer or the employer based on the payroll of the central hirer or employer for the part of the basis period referred to in subsection (21A).(21C) In subsections (7), (8), (8A), (8B) and (10), a reference to expenditure incurred on the provision of a PIC automation equipment includes a reference to expenditure incurred on the provision of a website for the purposes of a trade, profession or business, and a reference to PIC automation equipment includes a reference to such a website.”; and

by inserting, immediately after paragraph (a) of subsection (22), the following paragraph:“(aa)the reference in sub‑paragraph (b)(iii) of the definition of “qualifying person” in subsection (21) to all 3 months of the quarter shall be read as a reference to the last 3 months of the combined consecutive quarters or such other months as the Comptroller may determine or, if the election is in respect of the entire basis period, the last 3 months of the basis period or such other months as the Comptroller may determine;”.