Clause 21

after the definition of “capital expenditure”, insert —“ “central hirer”, in relation to a central hiring arrangement for a group of related parties, means the person who carries out hiring functions for those parties under the arrangement;“central hiring arrangement” means an arrangement for a group of related parties entered into for a bona fide commercial reason, where the hiring functions of the parties in the group are carried out by a single person;”; and

delete the definition of “local employee” and substitute —“ “local employee” means an individual who —

is a citizen of Singapore or a Singapore permanent resident;

makes contributions in respect of the income derived from his or her employment with the acquiring company to the Central Provident Fund which are obligatory under the Central Provident Fund Act 1953; and

is any of the following:

an employee of the acquiring company;

for the year of assessment 2020 or a subsequent year of assessment — an individual who is engaged by the central hirer of a central hiring arrangement for a group of related parties which includes the acquiring company —

who is deployed to work solely for the acquiring company; and

whose salary and other remuneration is borne, directly or indirectly, by the acquiring company and not claimed by the central hirer as a deduction against the central hirer’s own income;

for the year of assessment 2020 or a subsequent year of assessment — an employee of another person (called B) —

who is seconded to the acquiring company under a bona fide commercial arrangement to work solely for the acquiring company; and

whose salary and other remuneration is borne, directly or indirectly, by the acquiring company and not claimed by B as a deduction against B’s own income,but excludes a director as defined in section 4 of the Companies Act 1967;”.