Income Tax (Amendment) Bill

by inserting, immediately after the word “Act” at the end of paragraph (e), the words “, except dividends received by it from any company in which it holds, at the time such dividends are declared, more than half of the issued share capital of the company unless the Minister otherwise approves”; and

by inserting, immediately after the word “assessment” in the second line of sub-paragraph (b) of the proviso to paragraph (g), the words “for charities or charitable objects within Singapore”.

by deleting subsection (1) and substituting the following subsection: —“(1) Where a company derives income which is subject to tax in accordance with regulations prescribed under section 43A, 43C or 43D, the following provisions shall have effect.”;

by deleting the words “or 43C” wherever they appear in subsections (2) and (8)(a) and substituting in each case the words “, 43C or 43D”;

by deleting the words “financial institution or insurance” wherever they appear in subsections (2), (3), (4), (6), (8)(c) and (8)(d);

by deleting the words “financial institution or an insurance” in subsections (7) and (8)(a); and

by deleting the words “paid by financial institutions and insurance companies” in the marginal note.

Subject to this section for the purpose of ascertaining the income for the basis period for any year of assessment of an approved investment company, there shall be allowed as a deduction any expenses for the management of its investments paid to any person who is a resident of or a permanent establishment in Singapore and the amount of the deduction shall be ascertained by the formula where Ais the total expenses for the management of its investments paid for that basis period;Bis the total interest and dividends chargeable to tax in that basis period;Cis the total investment income (whether chargeable to tax or not) for that basis period.(2) The deduction allowed under this section for any year of assessment shall not exceed the total interest and dividends chargeable to tax of the approved investment company in the basis period for that year of assessment.(3) For the purposes of this section —

“approved” means approved by the Minister or such person as he may appoint;

“investment company” means any company whose business consists wholly or mainly in the making of investments and the principal part of whose income is derived therefrom, and includes any unit trust.Expenditure on energy conservation14G.—

Subject to this section, where any person being the owner of any premises in a centrally air-conditioned commercial building has during any period incurred any approved expenditure in relation to that building when carrying on any trade, business, profession or vocation at those premises, or when receiving rent from the letting of those premises, there shall for the purpose of ascertaining the income of the person for that period be allowed a deduction of an amount equal to that expenditure.(2) Where any person has been allowed a deduction under this section in respect of any approved expenditure, no deduction shall be allowed under any other provision of this Act in respect of that expenditure or by way of depreciation in respect of any asset acquired as a result of that expenditure.(3) For the purposes of this section —

“approved expenditure”, in relation to a commercial building, means any expenditure approved by the Minister or such person as he may appoint and incurred in effecting, for the purposes of energy conservation, alteration of the building which results in a reduction of the overall thermal transfer value of the building to 45 watts per square metre or less and, in connection therewith, any alteration of the central air-conditioning plant of the building which results in an improvement to the coefficient of performance of the plant;

“commercial building” includes any part of the building which is used for residential purposes; and

“owner” has the same meaning as in the Property Tax Act (Cap. 144).”.

the reference to twenty-five per cent in subsection (1) shall be read as a reference to twenty per cent;

the reference to three per cent in subsections (2) and (3) and in the sixteenth line of subsection (5) of section 18 shall be read as a reference to two per cent; and

the reference to capital expenditure in subsections (1) and (2) shall not include any capital expenditure incurred before 1st January, 1982.”.

by deleting the comma at the end of paragraph (i) of subsection (1) and substituting the word “; or”, and by inserting immediately thereafter the following paragraph: —“(j)for the purposes of a hotel on the island of Sentosa and approved by the Minister (referred to in this section as a Sentosa hotel),”; and

by inserting, immediately after the word “hotel” in the fourth and in the sixth lines of subsection (3), the words “(other than a Sentosa hotel)”.

by deleting the word “or” at the end of paragraph (c) of subsection (1);

by deleting the comma at the end of paragraph (d) of subsection (1) and substituting the word “; or”, and by inserting immediately thereafter the following paragraph: —“(e)he is carrying on a business which includes construction operations,”;

by deleting the word “and” at the end of sub-paragraph (iii) of subsection (1);

by deleting the full-stop at the end of sub-paragraph (iv) of subsection (1) and substituting the word “; and”, and by inserting immediately thereafter the following sub-paragraph: —“(v)during the period 1st January, 1981 and 31st December, 1985, on the provision of building and construction equipment for use in his business relating to construction operations.”; and

by deleting the full-stop at the end of paragraph (b) of subsection (4) and substituting a semi-colon, and by inserting immediately thereafter the following paragraphs: —“(c)“building and construction equipment” means building and construction equipment falling under item 3 of the Sixth Schedule to this Act;

“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 sub-paragraph (i) or (ii) including site clearance, earth-moving, excavation, laying of foundations, site restoration, landscaping and the provision of drains and of roadways and other access works.”.

by deleting paragraph (b) of subsection (1) and substituting the following paragraph: —“(b)a deduction, in respect of earned income, which shall be —

in the case of an individual not falling within any other sub-paragraph or a Hindu joint family, the sum of one thousand dollars or the amount of the earned income;

in the case of an individual who, in the year immediately preceding the year of assessment, was totally blind or suffering from any physical or mental disability which permanently and severely restricted his capacity for work, the sum of two thousand dollars or the amount of the earned income;

in the case of an individual who, at any time in the year immediately preceding the year of assessment, was above fifty-five years of age but was not above sixty years of age, the sum of two thousand dollars or the amount of the earned income; and

in the case of an individual who, at any time in the year immediately preceding the year of assessment, was above sixty years of age, the sum of three thousand dollars or the amount of earned income,whichever is the less:Provided that not more than one deduction shall be allowed under this paragraph to any individual for any year of assessment.”; and

by deleting the word “earned” in paragraph (a) of subsection (2).