Singapore legislation
Clause 22
of Economic Expansion Incentives (Relief from Income Tax) (Amendment) Bill
Clause 22
Saving and transitional provisions
(1)
Despite section 8, section 35(2) and (3) of the principal Act as in force immediately before the date of commencement of section 8 continues to apply in relation to any contravention mentioned in section 35(2) of the principal Act as in force immediately before that date (called in this section the repealed provision), that took place before that date.
(2)
Where —
before the date of commencement of section 8, a company contravened section 34 of the principal Act or a condition mentioned in the repealed provision; and
the Minister charged with the responsibility for finance is satisfied that the company did not knowingly or intentionally contravene section 34 of the principal Act or that condition, as the case may be,that Minister may waive all or a part of any debt due from the company under the repealed provision, including the repealed provision as continued by subsection (1).
(3)
Any application for approval under section 37 of the principal Act that was pending immediately before the publication date is deemed to have been withdrawn on the publication date.
(4)
Where —
during the period between 1 April 2023 and the day immediately before the publication date (both dates inclusive) (called in this section the transitional period), the Minister approves, under section 37 of the principal Act as in force during the transitional period, any royalties or technical assistance fees or contributions to research and development costs payable under an agreement or arrangement (A) as approved royalties, fees or contributions of a company;
the company had entered into agreement or arrangement A for the purpose of carrying on an activity of the company (called in this section the relevant activity); and
on or after the publication date, the Minister approves, under section 40A of the principal Act as in force on the publication date, the relevant activity for the company for a period that includes any part of the transitional period,then the consequences in subsection (5) apply.
(5)
The consequences for subsection (4) are as follows:
where the Minister had approved the royalties, fees or contributions mentioned in subsection (4)(a) with effect from a date (called in this subsection the start date) that is before 1 April 2023, then, despite section 10(b) —
the approval is treated as having been validly given under section 37 of the principal Act, as if section 10(b) had not been enacted, but only for the period between the start date and 31 March 2023 (both dates inclusive); and
the principal Act (as amended by this Act) applies in relation to such approval;
where the tax relief amount under section 39 for the transitional period is more than the tax relief amount under section 40B for the transitional period, the difference between the amounts —
is considered to have been deducted from the royalties, fees and contributions payable by the company under agreement or arrangement A during the transitional period under section 45A of the Income Tax Act 1947;
is a debt due from the company to the Government; and
is, with the prior sanction of the Minister, recoverable in the manner provided by section 89 of the Income Tax Act 1947;
where the tax relief amount under section 39 for the transitional period is less than the tax relief amount under section 40B for the transitional period, the Comptroller must refund the company the difference between those amounts;
if (whether in a case in paragraph (a) or otherwise) —
during the transitional period, the company did or omitted to do anything that would have (but for section 10(b)) constituted a contravention of any condition of the approval under subsection (4)(a); (ii)on or after the publication date, the Minister grants the approval under subsection (4)(c) for a period that starts on or before the date of the contravention mentioned in sub‑paragraph (i); and (iii)the Minister is satisfied that any condition of the approval under subsection (4)(c) is identical to or substantially the same as the condition mentioned in sub‑paragraph (i),then —
the company is treated as having contravened the condition of the approval under subsection (4)(c); and
the principal Act as in force on or after the publication date applies to the contravention mentioned in sub‑paragraph (iv).
(6)
For the purposes of subsections (4) and (5) —
Definition
“tax relief amount under section 39 for the transitional period” means the amount of tax which, prior to the publication date, a company had, in reliance on section 39(1) of the principal Act as in force during the transitional period, not deducted from the royalties, fees or contributions payable to a non‑resident person under section 45A of the Income Tax Act 1947 during the transitional period;
Definition
“tax relief amount under section 40B for the transitional period” means the amount of tax which, but for section 40B(5) and (6) of the principal Act as in force on the publication date, would have been deductible by a company under section 45A of the Income Tax Act 1947 from any royalties, fees or contributions payable by the company to a non‑resident person during the transitional period.
(7)
For a period of 2 years after the publication date, the Minister may, by regulations, prescribe such provisions of a saving or transitional nature consequent on the enactment of any provision of this Act as the Minister may consider necessary or expedient.
(8)
Regulations made under subsection (7) that are consequent on the enactment of any provision of this Act mentioned in section 1(2) may be made to operate retrospectively in relation to that provision to any date not being a date earlier than 1 April 2023.
(9)
In this section, “publication date” means the date of publication of this Act in the Gazette.