In forceAmended2020 Revised Edition

Contents

Economic Expansion Incentives (Relief from Income Tax) Act 1967 · 2020 Revised Edition · Part 8 · Investment Allowances

43. Capital expenditure investment allowance

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Amended

Last amended by an amending law of 2024. 7 amendments in all.

(1)

Where a company proposes to carry out a project —

(a)

for the manufacture or increased manufacture of any product;

(b)

for the provision of specialised engineering or technical services;

(c)

for research and development;

(d)

for construction operations;

(e)

for reducing the consumption of water;

(f)

in relation to any qualifying activity as defined in section 16;

(g)

for the promotion of the tourist industry (other than a hotel) in Singapore;

(h)

for the operation of any space satellite;

(i)

[Deleted by Act 39 of 2023 wef 29/12/2023]

(j)

for improving energy efficiency;

(k)

for the construction and operation by the company of any submarine cable system with one or more landing stations in Singapore, and any such landing station; (l)for reducing greenhouse gas emissions; or

(m)

for such other activity as may be prescribed,the company may apply in the prescribed form to the Minister for the approval of an investment allowance in respect of the fixed capital expenditure for the project.

(1A)

Where a project is prescribed for the purposes of subsection (1)(m), the regulations may further provide that approval under this section may not be granted to any company in respect of the project after a prescribed date.

(2)

Where the Minister considers it expedient, having regard to the economic, technical and other merits of the project, the Minister may approve the project and issue the company with a certificate which qualifies the company for an investment allowance as stipulated in the certificate in respect of the fixed capital expenditure for the approved project subject to such terms and conditions as the Minister thinks fit.

(3)

For the purposes of subsection (2), the Minister may approve any investment allowance in respect of the fixed capital expenditure to be incurred on any productive equipment to be used outside Singapore for any project under subsection (1)(h) or (k).

(4)

Every certificate issued under this section must specify a date as the investment day from which the company is entitled to an investment allowance under this Part.

(5)

The Minister may upon the application of a company, amend its certificate by substituting for the investment day specified therein such earlier or later date as the Minister thinks fit and thereupon the provisions of this Part have effect as if the date so substituted were the investment day in relation to that certificate.

(6)

[Deleted by Act 39 of 2023 wef 29/12/2023]

(7)

Approval under this section may only be granted during the period from and including 1 April 2010 up to and including 31 December 2026 or such earlier date as may be prescribed to any company in respect of any project under subsection (1)(j).

(8)

Approval under this section may not be granted to any company in respect of any project under subsection (1)(a) to (h) on or after 1 January 2029 or such earlier date as may be prescribed.

(9)

Approval under this section may only be granted during the period from and including 20 February 2018 up to and including 31 December 2028 or such earlier date as may be prescribed to a company in respect of any fixed capital expenditure incurred by the company on or after 20 February 2018 on a submarine cable system or a landing station mentioned in subsection (1)(k), for a project under that subsection.

(10)

Approval under this section may only be granted during the period from and including 1 April 2021 up to and including 31 December 2026 or such earlier date as may be prescribed to a company in respect of any fixed capital expenditure incurred by the company on or after 1 April 2021 on a project mentioned in subsection (1)(l).[67

Terms defined in this Act

approved project
Defined · s 41
“approved project” means a project approved by the Minister under section 43(2);
Open s 41
certificate
Defined · s 3
“certificate” includes a letter or other document issued by the Minister to a company pursuant to an application made by the company under a provision of this Act;
Open s 3
company
Defined · s 3
“company” means any company incorporated or registered in accordance with the provisions of any written law relating to companies;
Open s 3
construction operations
Defined · s 41
“construction operations” means —(a)construction, alteration, repair, extension or demolition of buildings and structures;(b)construction, alteration, repair, extension or demolition of any works forming, or to form, part of any land; or(c)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;
Open s 41
fixed capital expenditure
Defined · s 41
“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 —(a)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;(b)the acquisition of any know-how or patent rights; and(c)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);
Open s 41
investment day
Defined · s 41
“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;
Open s 41
manufacture
Defined · s 3
“manufacture”, in relation to a product, includes any process or method used in making or developing the product;
Open s 3
productive equipment
Defined · s 3
“productive equipment” means machinery or plant which would normally qualify for deduction under sections 19, 19A, 20, 21 and 22 of the Income Tax Act 1947;
Open s 3
qualifying activity
Defined · s 16
“qualifying activity” means any of the following:(a)any engineering or technical services including laboratory, consultancy and research and development activities;(b)computer-based information and other computer related services;(c)the development or production of any industrial design; and(d)such other services or activities as may be prescribed.
Open s 16
research and development
Defined · s 41
“research and development” has the meaning given by section 2(1) of the Income Tax Act 1947;
Open s 41
space satellite
Defined · s 41
“space satellite” means an apparatus placed in orbit relative to the earth for any economic, scientific or technological purpose;
Open s 41
submarine cable system
Defined · s 41
“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.
Open s 41

Report

Read on from s 44

Part 9

Read on from Part 9

Part 10

Miscellaneous Provisions

Read on from Part 10