Published by Authority

NO. 6]Friday, September 27 [1985

The following Act was passed by Parliament on 30th August 1985 and assented to by the President on 20th September 1985:—
Income Tax (Amendment) Act 1985

(No. 7 of 1985)

I assent.

20th September 1985.
Date of Commencement: 27th September 1985
An Act to amend the Income Tax Act (Chapter 141 of the Revised Edition).
Be it enacted by the President with the advice and consent of the Parliament of Singapore, as follows:
Short title
1.—(1)  This Act may be cited as the Income Tax (Amendment) Act 1985.
(2)  Sections 5 and 6 shall have effect for the year of assessment 1986 and subsequent years of assessment.
Amendment of section 14
2.  Section 14(1)(e) of the Income Tax Act (referred to in this Act as the principal Act) is amended —
(a)by deleting the word “and” at the end of sub-paragraph (i) (D) of the proviso;
(b)by deleting the words “shall not exceed 22%,” in sub-paragraph (i) (E) of the proviso and substituting the words “and before 1st July 1983 shall not exceed 22%;”; and
(c)by inserting, immediately after sub-paragraph (i) (E) of the proviso, the following sub-paragraphs:
(F)commencing on or after 1st July 1983 and before 1st July 1984 shall not exceed 23%; and
(G)commencing on or after 1st July 1984 shall not exceed 25%,”.
Amendment of section 19A
3.  Section 19A of the principal Act is amended —
(a)by deleting the words “on or after 1st January 1984” in subsection (1) and substituting the words “during or after the basis period for the year of assessment 1985”;
(b)by deleting the word “office” wherever it appears in subsections (1A) and (1B);
(c)by deleting “1984” in subsections (1A) and (1B) and substituting “1985”;
(d)by inserting, immediately before the definition of “computer” in subsection (4)(a), the following definition:
“ “automation equipment” means any machinery or plant designed for the automation of functions or services in any office or factory;”; and
(e)by deleting the definition of “office automation equipment” in subsection (4)(a).
Amendment of section 25
4.  Section 25 of the principal Act is amended by inserting, immediately after the words “Part XV”, the words “in force before the year of assessment 1966”.
Amendment of section 39
5.  Section 39 of the principal Act is amended —
(a)by deleting the full-stop at the end of paragraph (g) of subsection (2) and substituting a semicolon, and by inserting immediately thereafter the following paragraph:
(h)had undertaken any course of study for the purpose of gaining an approved academic or professional qualification or such other approved course as is related to his trade, business, profession, vocation or employment, there shall be allowed a deduction of the amount incurred by him in that year on the fees (including examination and tuition fees) for the course, subject to a maximum deduction of $2,000; but no deduction shall be allowed under this paragraph in respect of any sum which has been allowed under section 14.”; and
(b)by inserting, immediately after subsection (2), the following subsection:
(3)  For the purposes of subsection (2)(h),
“approved” means approved by the Minister or such other person as he may appoint.”.
New section 50A
6.  The principal Act is amended by inserting, immediately after section 50, the following section:
Unilateral tax credits
50A.—(1)  To such extent as the Minister may by regulations prescribe, tax credit under section 50 shall, subject to those regulations, be given to any person resident in Singapore for tax payable under the law of any territory outside Singapore in respect of any income (including income from employment) derived by him from such professional, consultancy and other services as may be so prescribed notwithstanding that there are no arrangements for the time being in force under section 49 with the government of that territory.
(2)  The Minister may in any regulations under subsection (1) specify the territories in respect of which those regulations shall have effect; and section 50 shall, with the necessary modifications and subject to those regulations, apply for the purposes of that subsection as if any territory to which those regulations have effect were a territory with which arrangements have been made under section 49.”.