Clause 9

by deleting “27%” wherever it appears in subsections (1) and (2) and substituting in each case “26%”;

by inserting, immediately after subsection (1A), the following subsections:“(1B) Notwithstanding anything in this Act, tax at the rate of 15% shall be levied and paid on the gross amount of —

any income referred to in section 12(6); and

any income referred to in section 12(7)(a), (b) and (d) but excluding the incomes specified in subsection (1D),accruing in or derived from Singapore on or after 28th February 1996 by a person not resident in Singapore which is not derived by the person from any trade, business, profession or vocation carried on or exercised by him in Singapore and which is not effectively connected with any permanent establishment in Singapore of the person.(1C) In subsection (1B), “gross amount”, in relation to any income referred to in that subsection, means the full amount of the income without any deduction and relief being allowed against the income under the provisions of this Act.(1D) The incomes excluded under subsection (1B)(b) are —

any royalty and other payments referred to in section 10(9) or (10) which are derived by the person not resident in Singapore; and

any payment to a person not resident in Singapore for the rendering of assistance or service in connection with the application or use of scientific, technical, industrial or commercial knowledge or information.”; and

by deleting the full-stop at the end of paragraph (d) of subsection (2) and substituting a semi-colon, and by inserting immediately thereafter the following paragraph:“(e)for the years of assessment 1994, 1995 and 1996, be read as a reference to 27%.”.