Singapore legislation

Clause 4

of Economic Expansion Incentives (Relief from Income Tax) (Amendment) Bill

Clause 4

Amendment of section 41

In the principal Act, in section 41 —

(a)

in subsection (1), replace the definition of “fixed capital expenditure” with —“ “fixed capital expenditure” means —

(a)

capital expenditure to be incurred on an approved project by a company on the following items that are used for carrying out the project:

(i)

any factory building (excluding land) in Singapore and, in relation to any project under section 43(1)(b), (c), (d), (f), (g) or (k), includes a building or structure specially designed for carrying out the project;

(ii)

the acquisition of any know‑how or patent rights;

(iii)

any new productive equipment (and, subject to the approval of the Minister, any secondhand productive equipment) to be used in Singapore and, in relation to any project under section 43(1)(h) or (k), includes any productive equipment to be used outside Singapore as approved under section 43(3); and

(b)

without affecting paragraph (a), for any project under section 43(1)(m), such capital expenditure as may be prescribed;”; and

(b)

after subsection (3), insert —“(4) For the purposes of this Part, the Minister may prescribe that fixed capital expenditure incurred by a company in relation to any project under section 43(1)(m) is not fixed capital expenditure for the purposes of this Part to the extent that it is or is to be subsidised by grants or subsidies from the Government or a statutory board.”.

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