Singapore legislation
Clause 4
of Economic Expansion Incentives (Relief from Income Tax) (Amendment) Bill
Clause 4
Repeal and re-enactment of sections 6 and 7
Sections 6 and 7 of the principal Act are repealed and the following sections substituted therefor:“Tax relief period for pioneer product6.—
The tax relief period of a pioneer enterprise for a pioneer product commences on the production day of that pioneer product and continues for such period, not exceeding 15 years, as the Minister may determine.(2) Subject to subsections (3) and (4), the Minister may, if the Minister is satisfied that it is expedient in the public interest to do so and subject to such conditions as the Minister may impose —
where the pioneer certificate issued to a pioneer enterprise only specifies one pioneer product, extend the tax relief period in subsection (1) for that product for such further period or periods, not exceeding 5 years at any one time, as the Minister may determine; or
where the pioneer certificate issued to a pioneer enterprise specifies more than one pioneer product, extend the tax relief period or periods in subsection (1) for one or more of those products for such further period or periods, not exceeding 5 years at any one time, as the Minister may determine.(3) The total tax relief period for a pioneer product, together with all extensions, must not in total exceed 15 years.(4) Where the Minister extends the tax relief periods of a pioneer enterprise for more than one of the pioneer products specified in the pioneer certificate under subsection (2)(b), the Minister must ensure that all the tax relief periods of those pioneer products, after such extension, expire on the same day.(5) Where a pioneer product is removed from a pioneer certificate under section 5(5)(b) or (6), its tax relief period expires on the effective date of its removal.Provisions governing old and new trade or business
7. For the purposes of the Income Tax Act (Cap. 134) and this Act —
an old trade or business of a pioneer enterprise in respect of a pioneer product or products which is or are the subject of a single pioneer certificate issued to the pioneer enterprise is considered to have permanently ceased on the tax relief expiry date;
the pioneer enterprise is considered to have set up and commenced a new trade or business in respect of the same product or products on the day immediately following the tax relief expiry date;
the pioneer enterprise must make up accounts of each old trade or business for a period not exceeding one year, commencing on —
the production day of the pioneer product; or
where the pioneer certificate specifies 2 or more pioneer products, the earlier or earliest of the production days of those pioneer products, for successive periods of one year thereafter and for the period not exceeding one year ending on the tax relief expiry date;
in making up the first accounts of the new trade or business referred to in paragraph (b), the pioneer enterprise must take as the opening figures for those accounts the closing figures in respect of its assets and liabilities as shown in its last accounts of the corresponding old trade or business; and
the next accounts of the new trade or business following the first accounts referred to in paragraph (d), must be made up by reference to the closing figures in the first accounts, and any subsequent accounts of the new trade or business must be similarly made up by reference to the closing figures of the preceding accounts of the new trade or business.”.