3. The exemption under paragraph 2 shall apply only if the payment for shrink-wrap software —
(a)
is for software distributed only in the form of compact discs or floppy diskettes in wrapped boxes accompanied by shrink-wrapped licences granting the purchaser the right to use the software under the following conditions:
(i)
the purchaser only receives the right to use the software but is not permitted to modify it in any way;
(ii)
the purchaser is not licensed to reverse engineer, de-compile, or disassemble the computer program; and
(iii)
the purchaser may resell his copy of the software as long as any other copies he has made are destroyed and the same terms and conditions of the licence are imposed on the subsequent purchaser; and
(b)
is made to a non-resident person and the payment —
(i)
is not derived by that person from any trade or business carried on or exercised by him in Singapore; and
(ii)
is not effectively connected with any permanent establishment in Singapore.