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Economic Expansion Incentives (Relief from Income Tax) (Amendment) Bill

Bill No. 23/1989

Read the first time on 13th March 1989.

An Act to amend the Economic Expansion Incentives (Relief from Income Tax) Act (Chapter 86 of the 1988 Revised Edition).

Be it enacted by the President with the advice and consent of the Parliament of Singapore, as follows:

Short title

1. This Act may be cited as the Economic Expansion Incentives (Relief from Income Tax) (Amendment) Act 1989.

Amendment of heading of Part XIIIA

2. Part XIIIA of the Economic Expansion Incentives (Relief from Income Tax) Act (referred to in this Act as the principal Act) is amended by deleting the heading immediately above section 97A and substituting the following heading:

“OVERSEAS INVESTMENT AND
VENTURE CAPITAL INCENTIVES”.

Amendment of section 97A

3. Section 97A of the principal Act is amended —

(a)

by deleting the words “or a technology investment company” in the second line of the definition of “eligible holding company” and substituting the words “, a technology investment company or an overseas investment company”;

(b)

by deleting the words “or the technology investment company” in paragraphs (b) and (c) of the definition of “eligible holding company” and substituting in each case the words “, the technology investment company or the overseas investment company”; and

(c)

by inserting, immediately after the definition of “eligible individual”, the following definition:

“ “overseas investment company” means a company approved as an overseas investment company under section 97C(4);”.

Amendment of section 97C

4. Section 97C of the principal Act is amended —

(a)

by inserting, immediately after the word “satisfied” in the first line of subsection (2), the words “in respect of any application under subsection (1)”;

(b)

by inserting, immediately after subsection (2), the following subsections:

“(3) Any company, incorporated and resident in Singapore, desirous of investing in an overseas company for the purpose of acquiring for use in Singapore any technology from the overseas company or for the purpose of gaining access to any overseas market for its eligible holding company or any subsidiary thereof, may make an application in the prescribed form to the Minister to be approved as an overseas investment company.

(4) Where the Minister is satisfied in respect of any application under subsection (3) that the technology acquired, if introduced in Singapore or the access which would be gained to any overseas market, would promote or enhance the technological or economic development of Singapore, he may approve the company as an overseas investment company and issue a certificate to the company subject to such conditions as he may impose.”; and

(c)

by inserting, immediately after the word “company” in the marginal note, the words “or overseas investment company”.

Amendment of section 97D

5. Section 97D of the principal Act is amended —

(a)

by inserting, immediately after the word “company” in subsection (2)(a) and (b), in each case the words “or an overseas investment company”;

(b)

by inserting, immediately after the word “company” in the fifth line of subsection (3)(a), the words “or in an overseas investment company”;

(c)

by deleting the words “or technology investment company” in the eighth and ninth lines of subsection (3)(a) and in subsection (3)(b), and substituting in each case the words “, technology investment company or overseas investment company”; and

(d)

by deleting subsection (4) and substituting the following subsection:

“(4) The deduction under subsections (1) and (2) shall be available only —

(a)	to a person to whom shares are allotted by a venture company or technology investment company on or after 1st April 1986;
(b)	to a person to whom shares are allotted by an overseas investment company on or after 1st April 1988,

and shall not be available to any transferee of such shares.”.

Amendment of section 97E

6. Section 97E (2) of the principal Act is amended by inserting, immediately after the word “company”, the words “and an overseas investment company”.

Amendment of section 97F

7. Section 97F of the principal Act is amended by deleting the words “or a technology investment company” in the sixth line and substituting the words “, a technology investment company or an overseas investment company”.