On 22/05/2013,
you requested for the version in force on 22/05/2013
incorporating all amendments published on or before 22/05/2013.
The closest version currently available is that of 18/09/1987.
12. The principal Act is amended by inserting, immediately after Part XIII, the following Part:
“PART XIIIA
VENTURE CAPITAL INCENTIVE
97A. For the purposes of this Part, unless the context otherwise requires —
“eligible holding company”, in relation to a venture company or a technology investment company, means a company incorporated in Singapore —
(a)
which is resident in Singapore;
(b)
which holds shares in the venture company or the technology investment company; and
(c)
in respect of which not less than 50% of the paid-up capital is beneficially owned by citizens or permanent residents of Singapore throughout the period during which it holds shares in the venture company or the technology investment company, unless the Minister otherwise decides;
“eligible individual”, in relation to a venture company, means an individual resident in Singapore who is a citizen or permanent resident of Singapore;
“technology investment company” means a company approved as a technology investment company under section 97C(2);
“venture company” means a company approved as a venture company under section 97B(2).
97B.
—(1) Any company incorporated in Singapore which is desirous of developing or using in Singapore a new technology in relation to a product, process or service may make an application in the prescribed form to the Minister to be approved as a venture company.
(2) Where the Minister is satisfied that the technology, if introduced in Singapore, would promote or enhance the economic or technological development of Singapore, he may approve the company as a venture company and issue a certificate to the company subject to such conditions as he may impose.
97C.
—(1) Any company, incorporated and resident in Singapore, desirous of investing in an overseas company which is developing or using a new technology in relation to a product, process or service may make an application in the prescribed form to the Minister to be approved as a technology investment company.
(2) Where the Minister is satisfied that the technology, if introduced in Singapore, would promote or enhance the economic or technological development of Singapore, he may approve the company as a technology investment company and issue a certificate to the company subject to such conditions as he may impose.
97D.
—(1) Where any eligible holding company or eligible individual has incurred any loss arising from —
(a)
the sale of shares held by it or him in a venture company; or
(b)
the liquidation of a venture company,
the loss shall be allowed as a deduction against the statutory income of the company or individual in accordance with section 37(2) of the Income Tax Act (Cap. 134) as if the loss were incurred from a trade or business carried on by it or him.
(2) Where any eligible holding company has incurred any loss arising from —
(a)
the sale of shares held by it in a technology investment company; or
(b)
the liquidation of a technology investment company,
the loss shall be allowed as a deduction against its statutory income in accordance with section 37(2) of the Income Tax Act as if the loss were incurred from a trade or business carried on by it.
(3) Notwithstanding subsections (1) and (2), no deduction shall be allowed in respect of any loss referred to in those subsections if —
(a)
the shares in respect of which the loss was incurred were held by an eligible holding company or eligible individual in a venture company, or by an eligible holding company in a technology investment company, for a period of less than two years from the date of issue of the shares, unless the loss was incurred as a result of the liquidation of the venture company or technology investment company; or
(b)
the sale of shares or liquidation occurred after 8 years from the date of approval under this Part of the venture company or technology investment company.
(4) The deduction under subsections (1) and (2) shall be available only to a person to whom shares are allotted by a venture company or technology investment company on or after 1st April 1986, and shall not be available to any transferee of such shares.
(5) For the purposes of subsections (1) and (2), the loss shall be the excess of the purchase price of the shares —
(a)
over the proceeds from the sale; and where the open market value at the date of the sale (or the value of net asset backing as determined by the Comptroller in the case of a company not quoted on any stock exchange) of the shares is greater than the sale proceeds, that value shall be deemed to be the proceeds from the sale; or
(b)
over the proceeds from the liquidation, as the case may be.
97F. Notwithstanding anything in this Part, where it appears to the Comptroller that any deduction under section 97D ought not to have been given to an eligible holding company or eligible individual by reason of the revocation under section 99 of a certificate issued to a venture company or a technology investment company, the Comptroller may, at any time within 12 years from the date of the revocation, make such assessment or additional assessment upon the eligible holding company (or any of its shareholders) or any eligible individual as may be necessary in order to recover any tax which should have been payable by the eligible holding company (or any of its shareholders) or the eligible individual.”.