Section 41
Interpretation of this Part
of Economic Expansion Incentives (Relief from Income Tax) Act 1967
(1)
In this Part, unless the context otherwise requires —
Definition
“approved project” means a project approved by the Minister under section 43(2);
Definition
“chargeable concessionary income” means concessionary income after deducting expenses, donations, allowances or losses allowable under the Income Tax Act 1947 against the concessionary income;
Definition
“chargeable normal income” means normal income after deducting expenses, donations, allowances or losses allowable under the Income Tax Act 1947 against the normal income;
Definition
“concessionary income” means income subject to tax at the concessionary rate of tax under section 43A, 43C, 43D, 43E, 43F, 43G, 43H, 43I, 43J, 43K, 43L, 43M, 43N, 43O, 43P, 43Q, 43R, 43S, 43T, 43U, 43V, 43W or 43X of the Income Tax Act 1947, or the regulations made under any of those provisions, as the case may be;
Definition
“concessionary investment allowance” means an investment allowance given to a company for an approved project from which the concessionary income of the company is derived;
Definition
“concessionary investment allowance account” means an account kept by a company for the purpose of calculating the amount of concessionary investment allowance granted under this Part;
Definition
“construction operations” means —
construction, alteration, repair, extension or demolition of buildings and structures;
construction, alteration, repair, extension or demolition of any works forming, or to form, part of any land; or
any operations which form an integral part of, or are preparatory to, or are for rendering complete the operations described in paragraph (a) or (b) including site clearance, earth‑moving excavation, laying of foundations, site restoration, landscaping and the provision of drains and of roadways and other access works;
Definition
“corporate partnership” means a partnership, limited liability partnership or limited partnership comprising solely of partners that are companies;
Definition
“fixed capital expenditure” means capital expenditure to be incurred on an approved project by a company on the following items that are used for carrying out the project —
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;
the acquisition of any know-how or patent rights; and
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), (i) or (k), includes any productive equipment to be used outside Singapore as approved under section 43(3);
Definition
“investment day”, in relation to a company, means the date specified in its certificate as the date from which the company qualifies for the investment allowance;
Definition
“normal income” means income subject to tax at the rate of tax under section 43(1)(a) of the Income Tax Act 1947;
Definition
“normal investment allowance” means an investment allowance given to a company for an approved project from which the normal income of the company is derived;
Definition
“normal investment allowance account” means an account kept by a company for the purpose of calculating the amount of normal investment allowance granted under this Part;
Definition
“relevant income”, in relation to a company, means any income which —
does not form part of the statutory income of the company or is exempt from tax under the provisions of this Act (other than this Part) or the Income Tax Act 1947; or
is subject to tax at the concessionary rate under Part IIIA in force immediately before 28 April 2004 or Part 4;
Definition
“research and development” has the meaning given by section 2(1) of the Income Tax Act 1947;
Definition
“space satellite” means an apparatus placed in orbit relative to the earth for any economic, scientific or technological purpose;
Definition
“submarine cable system” means a network of interconnected submarine cables, and includes its submarine landing terminating equipment, terrestrial or submarine optical fibre systems, network equipment and any other equipment ancillary to the submarine cable system.
(2)
For the purposes of this Part, fixed capital expenditure is not to be deemed to be incurred by a company unless —
in the case of any factory building or productive equipment to be constructed or installed on site, the expenditure is attributable to payment against work done in the construction of the building or the construction or installation of the productive equipment;
in the case of any productive equipment, other than that to which paragraph (a) or (c) applies, the company has received delivery of the equipment in Singapore;
in the case of any productive equipment to be used in relation to a project under section 43(1)(h), (i) or (k), the company has received delivery of the equipment.
(3)
For the purposes of this Part, fixed capital expenditure incurred by a company in relation to a project under section 43(1)(k) excludes any such expenditure to the extent that it is or is to be subsidised by grants or subsidies from the Government or a statutory board.[66