Long Title

Part I PRELIMINARY

Part II ADMINISTRATION

Part III IMPOSITION OF INCOME TAX

Part IV EXEMPTION FROM INCOME TAX

Part V DEDUCTIONS AGAINST INCOME

Part VI CAPITAL ALLOWANCES

Part VII ASCERTAINMENT OF CERTAIN INCOME

Part VIII ASCERTAINMENT OF STATUTORY INCOME

Part IX ASCERTAINMENT OF ASSESSABLE INCOME

Part X ASCERTAINMENT OF CHARGEABLE INCOME AND PERSONAL RELIEFS

Part XI RATES OF TAX

Part XII DEDUCTION OF TAX AT SOURCE

Part XIII ALLOWANCES FOR TAX CHARGED

Part XIV RELIEF AGAINST DOUBLE TAXATION

Part XV PERSONS CHARGEABLE

Husband and wife

Trustees, agents and curators

Part XVI RETURNS

Part XVII ASSESSMENTS AND OBJECTIONS

Part XVIII APPEALS

Part XIX COLLECTION, RECOVERY AND REPAYMENT OF TAX

Part XX OFFENCES AND PENALTIES

Part XXA EXCHANGE OF INFORMATION UNDER AVOIDANCE OF DOUBLE TAXATION ARRANGEMENTS AND EXCHANGE OF INFORMATION ARRANGEMENTS

Part XXB INTERNATIONAL AGREEMENTS TO IMPROVE TAX COMPLIANCE

Part XXI MISCELLANEOUS

FIRST SCHEDULE Institution, authority, person or fund exempted

SECOND SCHEDULE Rates of tax

THIRD SCHEDULE Repealed

FOURTH SCHEDULE Name of bond, securities, stock or fund

FIFTH SCHEDULE Child relief

SIXTH SCHEDULE Number of years of working life of asset

SEVENTH SCHEDULE Advance rulings

EIGHTH SCHEDULE Information to be included in a request for information under Part XXA

Legislative History

Comparative Table

Comparative Table

Expenditure on research and development
14D.
—(1)  For the purpose of ascertaining the income of any person carrying on any trade or business and subject to subsection (4), the following expenditure incurred (other than any amount which is allowable as a deduction under section 14) by that person shall be allowed as a deduction:
(a)
expenditure incurred on research and development undertaken directly by him and related to that trade or business (except to the extent that it is capital expenditure on plant, machinery, land or buildings or on alterations, additions or extensions to buildings or in the acquisition of rights in or arising out of research and development);
(aa)
expenditure incurred during the basis period for any year of assessment between the year of assessment 2009 and the year of assessment 2025 (both years inclusive) on research and development undertaken in Singapore directly by him and not related to that trade or business (except to the extent that it is capital expenditure on plant, machinery, land or buildings or on alterations, additions or extensions to buildings or in the acquisition of rights in or arising out of research and development);
[Act 37 of 2014 wef 27/11/2014]
(b)
payments made by that person to a research and development organisation for undertaking on his behalf in Singapore research and development related to that trade or business;
(ba)
payments made by that person to a research and development organisation for undertaking on his behalf, partly in Singapore and partly outside Singapore, research and development related to that trade or business;
(c)
payments made during the basis period for any year of assessment between the year of assessment 2009 and the year of assessment 2025 (both years inclusive) by that person to a research and development organisation for undertaking on his behalf in Singapore research and development not related to that trade or business;
[Act 37 of 2014 wef 27/11/2014]
(d)
payments made by that person to a research and development organisation for undertaking on his behalf outside Singapore research and development related to that trade or business;
(e)
payments made by that person under any cost-sharing agreement during the basis period for the year of assessment 2012 or a subsequent year of assessment, in respect of research and development that is related to that trade or business (excluding any payment made by him for the right to become a party to the cost-sharing agreement), regardless of who undertakes the research and development so long as it is undertaken wholly or partly for himself or on his behalf; and
(f)
payments made by that person during the basis period for any year of assessment between the year of assessment 2012 and the year of assessment 2025 (both years inclusive), under any cost-sharing agreement in respect of research and development that is undertaken in Singapore and is not related to that trade or business (excluding any payment made by him for the right to become a party to the cost-sharing agreement), regardless of who undertakes the research and development so long as it is undertaken wholly or partly for himself or on his behalf.
[28/80; 3/89; 24/2000; 37/2002; 34/2008; 29/2010; 29/2012]
[Act 37 of 2014 wef 27/11/2014]
(1A)  The expenditure or payment referred to in subsection (1) shall not include any such expenditure or payment to the extent that it is or is to be subsidised by grants or subsidies from the Government or a statutory board.
[29/2010; 29/2012]
(2)  For the purposes of this section, any expenditure incurred by a person prior to the commencement of his trade or business shall be deemed to have been incurred by that person on the first day on which he carries on that trade or business.
(3)  For the purposes of subsection (1)(ba) or (d), a claim for deduction shall be allowed to a person only if —
(a)
there is an undertaking by the person that any benefit which may arise from the conduct of the research and development shall accrue to the person; and
(b)
the claim is made by the person in such manner and subject to such conditions as the Comptroller may require.
[37/2002; 34/2008; 29/2012]
(3A)  For the purposes of subsection (1)(e) in respect of research and development that is undertaken wholly or partly outside Singapore, a claim for deduction shall be allowed to a person only if —
(a)
there is an undertaking by the person that any benefit which may arise from the conduct of the research and development shall accrue, wholly or partly, to the person; and
(b)
the claim is made by the person in such manner and subject to such conditions as the Comptroller may require.
[29/2012]
(4)  The deduction of the expenditure and payments referred to in subsection (1)(aa), (c) and (f) shall be made in accordance with the following provisions:
(a)
if the person derives from the trade or business carried on by him both normal income and concessionary income, the amount of the expenditure or payments (after deducting any amount in respect of which an election for a cash payout has been made under section 37I) shall so far as possible be deducted against the normal income, and any remaining balance of the amount shall be treated as part of the unabsorbed losses in respect of the normal income to be deducted against the concessionary income in accordance with section 37B;
(b)
if the concessionary income referred to in paragraph (a) is subject to tax at 2 or more concessionary rates of tax, the deduction under section 37B of the remaining balance referred to in that paragraph shall so far as possible be made against the part of the concessionary income that is subject to tax at the higher or highest concessionary rate of tax, and the deduction under section 37B of any remaining balance shall so far as possible be made against the part of the concessionary income that is subject to tax at the lower or next lowest concessionary rate of tax, and so on;
(c)
if the person derives from the trade or business only concessionary income which is subject to tax at a single concessionary rate of tax, a specified amount of the expenditure or payments shall be deducted against the concessionary income;
(d)
if the person derives from the trade or business only concessionary income which is subject to tax at 2 or more concessionary rates of tax, a specified amount of the expenditure or payments shall so far as possible be deducted against the part of the concessionary income that is subject to the higher or highest concessionary rate of tax, and any remaining balance of the specified amount shall be treated as part of the unabsorbed losses in respect of that part of the concessionary income that is subject to the higher or highest concessionary rate of tax, to be deducted in accordance with section 37B against the rest of the concessionary income;
(e)
if the rest of the concessionary income referred to in paragraph (d) is subject to tax at 2 or more concessionary rates of tax, then paragraph (b) shall apply, with the necessary modifications, to the last-mentioned deduction in paragraph (d).
[34/2008; 29/2010; 29/2012]
(4A)  Where a person to whom deductions have been allowed for payments referred to in subsection (1)(e) or (f) becomes entitled to any royalty or other payments (in one lump sum or otherwise) for the use of or right to use any technology or know-how developed from the research and development activities conducted under the cost-sharing agreement, such royalty or payments shall be deemed to be income of that person that is derived from Singapore for the year of assessment which relates to the basis period in which he becomes entitled to the royalty or payments.
[29/2012]
(5)  In this section —
“concessionary income” means income that is subject to tax at a concessionary rate of tax;
“concessionary rate of tax” has the same meaning as in section 14C;
“cost-sharing agreement” means any agreement or arrangement made by 2 or more persons to share the expenditure of research and development activities to be carried out under the agreement or arrangement;
“normal income” means income that is subject to tax at the rate of tax specified in section 43(1)(a);
“specified amount”, in relation to any expenditure or payments, means an amount computed in accordance with the formula
where A
is the amount of the expenditure or payments (after deducting any amount in respect of which an election for a cash payout has been made under section 37I);
B
is the rate of tax specified in section 43(1)(a); and
C
is —
 
(a)
in a case where the concessionary income derived by the person from the trade or business carried on by him is subject to tax at a single concessionary rate of tax, that rate; or
 
(b)
in a case where the concessionary income derived by the person from the trade or business carried on by him is subject to tax at 2 or more concessionary rates of tax, the higher or highest of those rates.
[34/2008; 29/2010; 29/2012]
History for Provision '14D Expenditure on research and development'.
Left Arrow
Right Arrow
pr14D-.
30/04/1996
Formal Consolidation
30 April 1996
1996 RevEd
 

30/12/1999
Formal Consolidation
30 December 1999
1999 RevEd
 

01/01/2008
Formal Consolidation
01 January 2008
2008 RevEd
 

16/12/2008
Informal Consolidation
16 December 2008
Amended
Act 34 of 2008

01/01/2009
Informal Consolidation
16 December 2008
Amended
Act 34 of 2008

09/01/2009
Informal Consolidation
09 January 2009
Amended
Act 22 of 2011

22/01/2009
Informal Consolidation
28 November 2013
Amended
Act 19 of 2013

01/04/2009
Informal Consolidation
01 April 2009
Amended
Act 22 of 2011

04/05/2009
Informal Consolidation
31 December 2009
Amended
Act 27 of 2009

01/07/2009
Informal Consolidation
31 December 2009
Amended
Act 27 of 2009

01/10/2009
Informal Consolidation
28 November 2013
Amended
Act 19 of 2013

29/12/2009
Informal Consolidation
31 December 2009
Amended
Act 27 of 2009

01/01/2010
Informal Consolidation
26 November 2010
Amended
Act 29 of 2010

09/02/2010
Informal Consolidation
22 January 2010
Amended
Act 24 of 2009

22/02/2010
Informal Consolidation
18 December 2012
Amended
Act 29 of 2012

23/02/2010
Informal Consolidation
20 December 2011
Amended
Act 22 of 2011

01/03/2010
Informal Consolidation
26 November 2010
Amended
Act 29 of 2010

01/04/2010
Informal Consolidation
18 December 2012
Amended
Act 29 of 2012

21/05/2010
Informal Consolidation
26 November 2010
Amended
Act 29 of 2010

07/07/2010
Informal Consolidation
20 December 2011
Amended
Act 22 of 2011

22/10/2010
Informal Consolidation
22 October 2010
Amended
Act 25 of 2010

22/11/2010
Informal Consolidation
22 November 2010
Amended
Act 29 of 2010

01/01/2011
Informal Consolidation
18 December 2012
Amended
Act 29 of 2012

19/02/2011
Informal Consolidation
19 February 2011
Amended
Act 22 of 2011

01/03/2011
Informal Consolidation
26 November 2010
Amended
Act 29 of 2010

01/04/2011
Informal Consolidation
01 April 2011
Amended
Act 22 of 2011

25/04/2011
Informal Consolidation
25 April 2011
Amended
Act 22 of 2011

01/05/2011
Informal Consolidation
08 April 2011
Amended
Act 13 of 2011

01/06/2011
Informal Consolidation
18 December 2012
Amended
Act 29 of 2012

01/09/2011
Informal Consolidation
01 September 2011
Amended
Act 22 of 2011

20/12/2011
Informal Consolidation
20 December 2011
Amended
Act 22 of 2011

01/01/2012
Informal Consolidation
20 December 2011
Amended
Act 22 of 2011

17/02/2012
Informal Consolidation
18 December 2012
Amended
Act 29 of 2012

28/02/2012
Informal Consolidation
18 December 2012
Amended
Act 29 of 2012

01/03/2012
Informal Consolidation
18 December 2012
Amended
Act 29 of 2012

01/04/2012
Informal Consolidation
18 December 2012
Amended
Act 29 of 2012

01/06/2012
Informal Consolidation
18 December 2012
Amended
Act 29 of 2012

03/12/2012
Informal Consolidation
03 December 2012
Amended
S 595/2012

18/12/2012
Informal Consolidation
28 November 2013
Amended
Act 19 of 2013

31/01/2013
Informal Consolidation
02 January 2013
Amended
Act 36 of 2012

17/02/2013
Informal Consolidation
17 December 2012
Amended
Act 2 of 2013

25/02/2013
Informal Consolidation
28 November 2013
Amended
Act 19 of 2013

26/02/2013
Informal Consolidation
28 November 2013
Amended
Act 19 of 2013

28/02/2013
Informal Consolidation
27 November 2014
Amended
Act 37 of 2014

13/03/2013
Informal Consolidation
04 February 2013
Amended
Act 3 of 2013

01/04/2013
Informal Consolidation
28 November 2013
Amended
Act 19 of 2013

18/04/2013
Informal Consolidation
17 April 2013
Amended
Act 11 of 2013

28/06/2013
Informal Consolidation
28 November 2013
Amended
Act 19 of 2013

28/11/2013
Informal Consolidation
28 November 2013
Amended
Act 19 of 2013

23/12/2013
Informal Consolidation
20 December 2013
Amended
S 775/2013

31/03/2014
Formal Consolidation
31 March 2014
2014 RevEd
 

21/02/2014
Informal Consolidation
27 November 2014
Amended
Act 37 of 2014

01/01/2014
Informal Consolidation
28 November 2013
Amended
Act 19 of 2013

27/11/2014
Informal Consolidation
27 November 2014
Amended
Act 37 of 2014

01/09/2014
Informal Consolidation
27 November 2014
Amended
Act 37 of 2014

01/01/2015
Informal Consolidation
01 January 2015
Amended
Act 37 of 2014

22/02/2014
Informal Consolidation
27 November 2014
Amended
Act 37 of 2014

01/04/2014
Informal Consolidation
27 November 2014
Amended
Act 37 of 2014

30/05/2014
Informal Consolidation
27 November 2014
Amended
Act 37 of 2014

01/06/2015
Informal Consolidation
01 June 2015
Amended
Act 37 of 2014

01/07/2015
Informal Consolidation
27 November 2014
Amended
Act 37 of 2014