Economic Expansion Incentives (Relief from Income Tax) Bill

Bill No. 32/1967

Read the first time on 14th November 1967.

An Act to amend and consolidate the laws relating to incentives for the establishment of pioneer industries and for economic expansion generally, by way of providing relief from income tax and to repeal the Pioneer Industries (Relief from Income Tax) Ordinance, 1959 (No. 1 of 1959) and the Industrial Expansion (Relief from Income Tax) Ordinance, 1959 (No. 2 of 1959).

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

PART I

PRELIMINARY

Short title and commencement

1.—(1) This Act may be cited as the Economic Expansion Incentives (Relief from Income Tax) Act, 1967, and shall come into operation on such date as the Minister may, by notification in the Gazette, appoint.

(2) The provisions of Parts III, IV, V and VI of this Act shall apply in respect of the year of assessment 1967 and subsequent years of assessment.

Construction

2. This Act shall be construed as one with the Income Tax Ordinance (Cap. 166).

Interpretation

3.—(1) In this Act, unless the context otherwise requires —

“approved foreign loan” means a loan which is certified under section 36 of this Act to be an approved foreign loan;

“approved product” means a product declared under section 16 of this Act to be an approved product;

“approved royalties, fees or contributions” means royalties, technical assistance fees or contributions to research and development costs which have been certified under section 40 of this Act to be approved royalties, fees or contributions;

“company” means any company incorporated or registered in accordance with the provisions of any written law relating to companies;

“Comptroller” means the Comptroller of Income Tax appointed under the Income Tax Ordinance;

“expanding enterprise” means any company which has been approved by the Minister and to which an expansion certificate has been issued under section 17 of this Act;

“expansion certificate” means an expansion certificate issued under section 17 of this Act;

“expansion day”, in relation to an expanding enterprise, means the day specified in its expansion certificate under subsection (4) or (5) of section 17 of this Act;

“export enterprise” means any company which has been approved by the Minister and to which an export enterprise certificate has been issued under section 21 of this Act;

“export enterprise certificate” means an export enterprise certificate issued under section 21 of this Act;

“export produce” means the produce of deep-sea fisheries, including fresh or frozen fish, approved under section 20 of this Act as an export produce;

“export product” means a product approved under section 20 of this Act as an export product;

“export year” means the year specified in the export enterprise certificate under subsection (3) of section 21 or section 22 of this Act;

“foreign loan certificate” means a foreign loan certificate issued under section 36 of this Act;

“new trade or business” means the trade or business of a pioneer enterprise deemed under section 7 of this Act to have been set up and commenced on the day following the end of its tax relief period;

“old trade or business” means the trade or business of a pioneer enterprise carried on by it during its tax relief period in accordance with section 7 of this Act, and which either ceases within or is deemed, under the said section, to cease at the end of that period;

“pioneer certificate” means a pioneer certificate issued under section 5 of this Act;

“pioneer enterprise” means any company which has been approved by the Minister and to which a pioneer certificate has been issued under section 5 of this Act;

“pioneer industry” means an industry declared under section 4 of this Act to be a pioneer industry;

“pioneer product” means a product declared under section 4 of this Act to be a pioneer product;

“production day”, in relation to a pioneer enterprise, means the day specified in its pioneer certificate under subsection (3) or (4) of section 5 of this Act;

“productive equipment” means machinery or plant which would normally qualify for deduction under the provisions of sections 19, 19A, 20, 21 and 22 of the Income Tax Ordinance (Cap. 166);

“royalties, fees or contributions certificate” means a certificate issued under section 40 of this Act;

“royalties or technical assistance fees” includes —

(a)

any royalties, rentals or other amounts paid as consideration for the use of, or the right to use —

(i)	copyrights, artistic or scientific works, patents, designs, plans, secret processes or formulae, trademarks, motion picture films, films or tapes for radio or television, broadcasting or other like property or rights;
(ii)	information concerning industrial, commercial or scientific knowledge, experience or skill;

(b)

income derived from the alienation of property or information mentioned in paragraph (a) of this definition; and

(c)

other amounts paid in consideration of services rendered by a non-resident person or his employee in connection with the use of property or right belonging to, or the initial operation of any plant, machinery or other apparatus purchased from, such non-resident person,

but does not include royalties, rentals or other amounts paid in respect of the operation of mines, quarries or other places of extraction of natural resources; or fees paid to an individual for the performance of professional services in Singapore other than as an employee;

“tax” means income tax imposed by the Income Tax Ordinance (Cap. 166).

(2) The expressions “officer of customs” and “senior officer of customs” shall have the same meanings as those expressions bear under the Customs Ordinance, 1960 (Ord. 44 of 1960).

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