Clause 26

after subsection (1AC), insert —“(1AD) Where a company —

that is a qualifying company for any year of assessment between the years of assessment 2024 and 2028 (both years inclusive); and

that carries on a trade or business during the basis period for that year of assessment,incurs during the basis period capital expenditure in acquiring one or more intellectual property rights for use in its trade or business, there is to be made, in addition to the writing‑down allowance under subsection (1AA), a writing‑down allowance computed in accordance with the formulawhere A is the lower of the following:

the capital expenditure incurred during the basis period for that year of assessment; (b)$400,000.(1AE) The writing-down allowance under subsection (1AD) is to be made to the qualifying company during the writing‑down period elected under subsection (1AA) for the same expenditure.(1AF) In this section, a company is a qualifying company for a year of assessment if —

where the company is not part of a group — the company derives less than $500 million in gross revenue from all of its trades and businesses in that basis period; or

where the company is part of a group — all the entities in the group derive a total of less than $500 million in gross revenue from all of the entities’ trades and businesses in that basis period.(1AG) For the purposes of subsection (1AF) —

“FRS 110” means the financial reporting standard known as Financial Reporting Standard 110 (Consolidated Financial Statements) that is treated as made by the Accounting Standards Committee under Part 3 of the Accounting Standards Act 2007, as amended from time to time; and

“group” means a group of entities (whether incorporated or registered in Singapore or elsewhere) comprising a parent and its subsidiaries within the meaning of FRS 110.(1AH) No allowance under subsection (1AD) may be made to any qualifying company in respect of any instalment paid by the qualifying company under any agreement to acquire any intellectual property rights that is signed before the basis period for the year of assessment 2024.”;

in subsection (1C), after “(both years inclusive),”, insert “or between the year of assessment 2024 and the year of assessment 2028 (both years inclusive),”;

in subsections (1C), (2) and (2E), after “subsection (1A),” wherever it appears, insert “(1AD),”;

in subsections (1D), (2D), (2E)(d), (10C) and (12), after “subsections (1A),”, insert “(1AD),”;

in subsection (10)(aa), replace “2025” with “2028”;

in subsection (10A), after “(1AA),” wherever it appears, insert “(1AD),”;

in subsection (10A)(a)(i), after “14E”, insert “, 14EA”;

in subsection (10E), after “subsection (1AA),”, insert “(1AD),”; and

in subsection (10I), replace “subsection (1BAA)” with “subsection (1AD) or (1BAA) (as the case may be)”.