Singapore legislation
Clause 26
Clause 26
Amendment of section 19
Section 19 of the principal Act is amended —
by deleting the words “the annual allowance in respect of any machinery or plant” in subsection (2)(a) and substituting the words “subject to subsection (2AA), the annual allowance in respect of any machinery or plant acquired by a person either in the basis period for a year of assessment before the year of assessment 2023 or under a hire-purchase agreement signed in the basis period for a year of assessment before the year of assessment 2023”;
by deleting paragraph (ba) of subsection (2) and substituting the following paragraphs:“(ba)for the purposes of paragraph (a), the total number of years of working life of an aircraft acquired on or after 1 March 2012 but before the basis period for the year of assessment 2023 by an approved aircraft leasing company mentioned in section 43Y is, if the company has made an election under subsection (2A) —
the sum of —
the number of years of working life of an aircraft as specified in the Sixth Schedule; and
the period of extension specified by the company under subsection (2A); or
20 years,whichever is less;
(bb)the annual allowance in respect of any machinery or plant acquired by a person in the basis period for the year of assessment 2023 or a subsequent year of assessment or under a hire-purchase agreement signed in the basis period for the year of assessment 2023 or a subsequent year of assessment is —
in the case of an asset that is not acquired under a hire-purchase agreement — the amount ascertained by dividing the excess of the original cost of the asset over any initial allowance granted under subsection (1) by any of the following number of years as elected by the person:
where the number of years of working life of the asset as specified in the Sixth Schedule is less than 16 years and unless otherwise provided under paragraph (bd) — 6 or 12 years;
where the number of years of working life of the asset as specified in the Sixth Schedule is 16 years — 6, 12 or 16 years; or
in the case of an asset acquired under a hire-purchase agreement — the amount ascertained by dividing the excess of the original cost of the asset over the total amount of the initial amount allowable in respect of the asset under subsection (1) by any of the following number of years as elected by the person:
where the number of years of working life of the asset as specified in the Sixth Schedule is less than 16 years and unless otherwise provided under paragraph (bd) — 6 or 12 years;
where the number of years of working life of the asset as specified in the Sixth Schedule is 16 years — 6, 12 or 16 years;
(bc)the election under paragraph (bb) must be made to the Comptroller at the time of lodgment of the person’s return of income for the year of assessment relating to the basis period in which the asset was acquired or the hire-purchase agreement was signed or within such further time as the Comptroller may allow, and such election is irrevocable;
(bd)for the purposes of paragraph (bb), the total number of years of working life of an aircraft acquired in the basis period for the year of assessment 2023 or a subsequent year of assessment by an approved aircraft leasing company mentioned in section 43Y is, if the company has made an election under subsection (2A) —
the sum of —
either 6 or 12 years as elected by the company under paragraph (bb); and
the period of extension specified by the company under subsection (2A); or
20 years,whichever is less;”;
by inserting, immediately after subsection (2), the following subsections:“(2AA) Where —
a machinery or plant is acquired by a person either in the basis period for a year of assessment before the year of assessment 2023 or under a hire-purchase agreement signed in the basis period for a year of assessment before the year of assessment 2023; and
no due claim for an allowance in respect of that asset has been made under subsection (1) or (2)(a) for any year of assessment before the year of assessment 2023,then, if the person makes a claim for an annual allowance in respect of that asset for the year of assessment 2023 or a subsequent year of assessment, the annual allowance in respect of that asset is ascertained by dividing the original cost of that asset by the number of years of working life of that asset, as elected by the person under subsection (2AB).(2AB) For the purposes of subsection (2AA), the person may elect for the number of years of working life of the asset to be —
if the number of years of its working life as specified in the Sixth Schedule is less than 16 years — 6 or 12 years; or
if the number of years of its working life as specified in the Sixth Schedule is 16 years — 6, 12 or 16 years.(2AC) An election under subsection (2AB) must be made by the person to the Comptroller at the time of lodgment of the person’s return of income for the year of assessment 2023 or within such further time as the Comptroller may allow, and such election is irrevocable.”;
by inserting, immediately after the words “as specified in the Sixth Schedule” in subsection (2A), the words “or as elected by the person under subsection (2)(bb),”;
by deleting subsection (2B);
by deleting the words “or (1B)” wherever they appear in subsection (3) and substituting in each case the words “, (1B) or (1E)”;
by deleting the word “and” at the end of subsection (5)(d); and
by deleting the full-stop at the end of paragraph (e) of subsection (5) and substituting the word “; and”, and by inserting immediately thereafter the following paragraph:“(f)a chauffeured private hire car as defined in section 14ZC(8) —
that is acquired in the basis period for the year of assessment 2021 or a subsequent year of assessment by a person that carries on the business of providing chauffeur services, and used by the person principally for such business; or
that was initially acquired by a person carrying on the business of hiring out cars and used by the person principally for such business, and is then used in the basis period for the year of assessment 2021 or a subsequent year of assessment by the same person principally for the business of providing chauffeur services carried on by the person.”.