Clause 41

by inserting, immediately after subsection (5), the following subsections:“(5A) For the purpose of subsections (1)(c) and (5)(ii), a reference to a local employee of an eligible person based on the eligible 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 eligible person;

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

who is on the payroll of the central hirer or the eligible 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 eligible person; and

a local person —

who, being an employee of another person (referred to in this subsection and subsection (5B) as the employer), is seconded to the eligible person under a bona fide commercial arrangement to work solely for the eligible person in that part of the basis period;

who is on the payroll of the employer or the eligible 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 eligible person,and the local person shall be treated as employed by the eligible person for the purpose of those provisions.(5B) In determining whether the central hirer or employer referred to in subsection (5A) satisfies subsection (1)(c) or (5)(ii), the person referred to in subsection (5A)(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 (5A).”;

by inserting, immediately after subsection (8), the following subsection:“(8A) For the purposes of subsections (7) and (8), a reference to capital expenditure on the provision of any PIC automation equipment includes a reference to capital expenditure 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.”;

by inserting, immediately after the definition of “local employee” in subsection (18), the following definition:“ “local person”, in relation to an eligible person, means any citizen or permanent resident of Singapore, but excludes —

a shareholder who is also a director of the eligible person if the eligible 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 eligible person if the eligible person is a partnership;”; and

by inserting, immediately after the words “PIC automation equipment” in item (g) of the table of the definition of “ “Productivity and Innovation Credit Scheme expenditure” or “PIC expenditure” ” in subsection (18), the words “(including any expenditure that is treated as expenditure incurred on the provision of PIC automation equipment under section 19A(16A))”.