PART 1 | Citation, commencement and application |
1.—(1) These Regulations may be cited as the Income Tax (Productivity and Innovation Credit Plus Scheme) Regulations 2015 and shall come into operation on 16 January 2015.| (2) These Regulations have effect for the years of assessment 2015, 2016, 2017 and 2018. |
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| Meaning of “qualifying persons” and “qualifying conditions” |
2.—(1) For the purposes of section 37IC of the Act and these Regulations, a qualifying person for any year of assessment set out in the first column of the following table, is a person who meets the qualifying conditions in the corresponding year of assessment set out opposite in the second column of the table: | | | | Corresponding year of assessment |
| | | | | | | | | 2015, 2016, 2017 or 2018. |
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(2) In these Regulations, a person meets the qualifying conditions in a year of assessment if the person carries on a trade, profession or business in Singapore in the basis period for that year of assessment, and —| (a) | for a person that is a company which is not part of a group, if the person —| (i) | derives not more than $100 million in turnover in that basis period; or | | (ii) | employs not more than 200 employees as at the last day of that basis period; |
| | (b) | for a person that is a company which is part of a group, if all entities in the group —| (i) | derive, in total, not more than $100 million in turnover in that basis period; or | | (ii) | employ, in total, not more than 200 employees as at the last day of that basis period; |
| | (c) | for a person who is an individual sole proprietor, if the person —| (i) | derives not more than $100 million in that basis period from all of the person’s trades, professions and businesses carried on through sole‑proprietorships; or | | (ii) | employs, in respect of all of those trades, professions and businesses, not more than 200 employees as at the last day of that basis period; |
| | (d) | for a person that is a partnership which is either under the control of a single partner who is an individual, or over which no single partner has control, if the partnership —| (i) | derives not more than $100 million in turnover in the basis period; or | | (ii) | employs not more than 200 employees as at the last day of the basis period; or |
| | (e) | for a person that is a partnership under the control of a single partner which is a company, if, collectively, the partnership, the company, and all other entities in the group of which the partnership and the company are parts —| (i) | derive, in total, not more than $100 million in turnover in the basis period; or | | (ii) | employ, in total, not more than 200 employees as at the last day of the basis period. |
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| (3) In paragraph (2)(d) and (e), whether or not a partnership is under the control of a partner is determined in accordance with FRS 27 or FRS 110, whichever is applicable to the partnership. |
(4) In this regulation —| “FRS 27” means the financial reporting standard known as Financial Reporting Standard 27 (Consolidated and Separate Financial Statements) that is treated as made by the Accounting Standards Council under Part III of the Accounting Standards Act (Cap. 2B), as amended from time to time; |
| “FRS 110” means the financial reporting standard known as Financial Reporting Standard 110 (Consolidated Financial Statements) that is treated as made by the Accounting Standards Council under Part III of the Accounting Standards Act, as amended from time to time; |
| “group” means a group of entities (whether incorporated or registered in Singapore or elsewhere) comprising a parent and its subsidiaries within the meaning of FRS 27 or FRS 110, whichever is applicable to the person. |
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| Meaning of “PIC provisions”, “affected amounts”, “subsection (2) amounts” and “qualifying expenditure” |
3.—(1) In these Regulations, a PIC provision is —| (a) | in the case of Part 2 of these Regulations, section 14A(1B), 14DA(2), 14R(2), 14S(2), 14T(2), 14W(1), 19A(2B) or 19B(1B) of the Act; or | | (b) | in the case of Part 3 of these Regulations, section 14A(1BA), 14DA(2), 14R(2A), 14S(2AA), 14T(2A), 14W(4), 19A(2BAA) or 19B(1BAA) of the Act. |
(2) In these Regulations, the affected amount of a PIC provision is —| (a) | if the PIC provision is section 14DA(2) of the Act —| (i) | the sum of the amounts represented by the letters U, V, W and X in that provision that pertain to the year of assessment in question; or | | (ii) | if the sum referred to in sub-paragraph (i) exceeds the specified amount in section 14DA(4) of the Act (as modified by regulation 5, 7, 9 or 11) that pertains to that year of assessment, the sum of the amounts represented by the letters Y and Z in section 14DA(2) of the Act that pertain to that year of assessment; or |
| | (b) | if the PIC provision is any other PIC provision, the amount represented by the letter A in the PIC provision that pertains to the year of assessment in question. |
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| (3) In these Regulations, “subsection (2) amount”, in relation to any year of assessment, has the meaning given to that expression in section 14DA(6) of the Act. |
(4) In these Regulations, the qualifying expenditure for a PIC provision in the first column of the following table is the expenditure set out opposite that PIC provision in the second column of the table: | |
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| Section 14A(1B) or (1BA) of the Act |
| | Qualifying intellectual property registration costs as defined in section 14A of the Act |
| | Section 14DA(2) of the Act |
| | Qualifying expenditure as defined in section 14DA of the Act |
| | Section 14R(2) or (2A) of the Act |
| | Qualifying training expenditure as defined in section 14R of the Act |
| | Section 14S(2) or (2AA) of the Act |
| | Qualifying design expenditure as defined in section 14S of the Act |
| | Section 14T(2) or (2A) of the Act |
| | Expenditure on the leasing of any PIC automation equipment, or procuring of cloud computing services as defined in section 14T of the Act |
| | Section 14W(1) or (4) of the Act |
| | Expenditure on the licensing from another of any qualifying intellectual property rights as defined in section 14W of the Act |
| | Section 19A(2B) or (2BAA) of the Act |
| | Capital expenditure on the provision of any PIC automation equipment (including any capital expenditure treated as capital expenditure incurred on the provision of PIC automation equipment under section 19A(16A) of the Act) |
| | Section 19B(1B) or (1BAA) of the Act |
| | Capital expenditure on acquiring any intellectual property rights. |
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