Section 51
Application for approval of project
of Economic Expansion Incentives (Relief from Income Tax) Act 1967
(1)
Where a company proposes to carry out a project outside Singapore under which another company (called in this Part the project company) —
is to manufacture or increase the manufacture of any product for the firstmentioned company; or
is to provide specialised engineering or technical services on behalf of or to the firstmentioned company,the firstmentioned company may apply in the prescribed form to the Minister for an IIA in respect of the fixed capital expenditure to be incurred on qualifying equipment for the project.
(2)
Where the Minister considers it expedient to do so, having regard to the economic, technical and other merits of the project, the Minister may approve the project for the purposes of this Part and issue an approval letter to the company which qualifies the company for an IIA.
(3)
The IIA in respect of the fixed capital expenditure for an approved project is an amount that is the lower of the following:
an amount equal to the percentage (specified in the approval letter for the approved project), of C × D;
an amount specified in the approval letter for that approved project for the purpose of this subsection, if any.
(4)
For the purpose of subsection (3) —
C is the fixed capital expenditure incurred on the qualifying equipment for the approved project; and
D is 100% or, if the qualifying equipment is primarily used for manufacturing or providing the specialised engineering or technical services, the percentage determined by the Minister, and specified in the approval letter for the approved project, of the primary use.
(5)
Every approval letter issued to a company under subsection (2) in respect of its approved project —
must specify the qualifying equipment for the approved project, the fixed capital expenditure for which qualifies for the IIA;
must specify a period (called in this Part the qualifying period) for each qualifying equipment, commencing from a specified date (called in this Part the investment day) and within which the fixed capital expenditure is to be incurred on the qualifying equipment to qualify for the IIA;
must specify the IIA to be given;
must specify such other terms and conditions as the Minister may impose on the approval letter; and
must specify such other matters that are required to be specified in the approval letter.
(6)
The maximum qualifying period for any qualifying equipment is —
where the qualifying equipment is not acquired under a hire‑purchase agreement — 5 years; and
where the qualifying equipment is acquired under a hire‑purchase agreement — 8 years.
(7)
The decision as to whether to specify any particular equipment as qualifying equipment is at the Minister’s discretion, and the Minister’s decision is final.
(8)
The Minister may, upon an application by a company issued with an approval letter, amend the approval letter by substituting for the investment day for the approved project 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 the approved project.
(9)
The Minister may, in the Minister’s discretion, amend an approval letter by adding to, removing or substituting (as the case may be) any matter required to be specified in the approval letter under subsection (5).
(10)
An amendment in subsection (9) takes effect from the date of the amended approval letter or, if specified in the amended approval letter, the effective date of the amendment.
(11)
Approval under this section may only be granted during the period between 17 February 2012 and 31 December 2022 (both dates inclusive).[97ZB