On 19/05/2013,
you requested for the version in force on 19/05/2013
incorporating all amendments published on or before 19/05/2013.
The closest version currently available is that of 16/12/2008.
20. Section 14D of the principal Act is amended —
(a)
by deleting the words “a manufacturing trade or business or a trade or business for the provision of any services” in subsection (1) and substituting the words “any trade or business and subject to subsection (4)”;
(b)
by deleting the word “and” at the end of paragraph (a) of subsection (1), and by inserting immediately thereafter the following paragraph:
“(aa)
expenditure incurred during the basis period for any year of assessment between the year of assessment 2009 and the year of assessment 2013 (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);”;
(c)
by inserting, immediately after the words “on his behalf” in subsection (1)(b), the words “in Singapore”;
(d)
by deleting the full-stop at the end of paragraph (b) of subsection (1) and substituting a semi-colon, and by inserting immediately thereafter the following paragraphs:
“(c)
payments made during the basis period for any year of assessment between the year of assessment 2009 and the year of assessment 2013 (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; and
(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)
by deleting the words “If the research and development organisation referred to in subsection (1)(b) is outside Singapore” in subsection (3) and substituting the words “For the purposes of subsection (1)(d)”; and
(f)
by inserting, immediately after subsection (3), the following subsections:
“(4) The deduction of the expenditure and payments referred to in subsection (1)(aa) and (c) 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 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).
(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;
“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
A | x | B, |
C |
where | A | is the amount of the expenditure or payments; |
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.”. |