Singapore legislation
Regulation 21
Regulation 21
Specificity and contingency of subsidy
Subregulation 1
In order to determine whether a subsidy is specific to an enterprise or industry or group of enterprises or industries (called in this regulation certain enterprises) within the jurisdiction of the granting authority, the following principles apply:
where the granting authority, or the legislation pursuant to which the granting authority operates, explicitly limits access to a subsidy to certain enterprises, the subsidy is specific;
where the granting authority, or the legislation pursuant to which the granting authority operates, establishes objective criteria or conditions governing the eligibility for, and the amount of, a subsidy, specificity does not exist, provided that the eligibility is automatic and that such criteria and conditions are strictly adhered to and are clearly spelt out in written law or other official document so as to be capable of verification; (c)if, despite any appearance of non-specificity resulting from the application of the principles laid down in sub-paragraphs (a) and (b), there are reasons to believe that the subsidy may in fact be specific, other factors may be considered.
Subregulation 2
For the purposes of paragraph (1)(b), objective criteria or conditions mean criteria or conditions which are neutral, which do not favour certain enterprises over others, and which are economic in nature and horizontal in application, such as the number of employees or the size of enterprise.
Subregulation 3
For the purposes of paragraph (1)(c) —
factors that may be considered are the use of a subsidy programme by a limited number of certain enterprises, predominant use by certain enterprises, the granting of disproportionately large amounts of subsidy to certain enterprises, and the manner in which discretion has been exercised by the granting authority in the decision to grant a subsidy; and
account must be taken of the extent of diversification of economic activities within the jurisdiction of the granting authority, as well as of the length of time during which the subsidy programme has been in operation.
Subregulation 4
The setting or change of generally applicable tax rates by all levels of government entitled to do so is not to be deemed to be a specific subsidy.
Subregulation 5
A subsidy is contingent upon export performance within the meaning of section 2(3)(b)(i) of the Act where the facts demonstrate that the granting of a subsidy, without having been made legally contingent upon export performance, is in fact tied to actual or anticipated exportation or export earnings.
Subregulation 6
A subsidy that is granted to certain enterprises which export is not for that reason alone considered to be contingent upon export performance within the meaning of section 2(3)(b)(i) of the Act.
Subregulation 7
Any determination of specificity under this regulation must be clearly substantiated on the basis of positive evidence.