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 31/03/2005.
PART XIIIF
OVERSEAS INVESTMENT INCENTIVE
97ZK. In this Part, unless the context otherwise requires —
“accounting period”, in relation to an eligible investee company, means an accounting period of 12 months (or such other period as the Minister may determine) during which the eligible investee company is designated as such, and any subsequent period of 12 months (or such other period as the Minister may determine) where the eligible investee company remains designated as such for the whole or part of the period;
“chargeable income”, in relation to an eligible holding company, means the income of the company chargeable to tax after deducting —
(a)
expenses, allowances, losses, donations and any qualifying deductions available for transfer under section 37C of the Income Tax Act (Cap. 134); and
(b)
allowances and losses allowable under this Act;
“eligible holding company” means a company which is approved as an eligible holding company under section 97ZL(2)(a);
“eligible investee company” means an overseas company which is designated as an eligible investee company under section 97ZL(2)(b);
“new overseas market”, in relation to an eligible holding company, means an investment in any place, product or technology in a country outside Singapore which is different from the place, product or technology which the company is engaged in before its approval as an eligible holding company;
“overseas company” means a company —
(a)
that carries on any trade or business in a country outside Singapore;
(b)
that is not incorporated in Singapore and not listed on the Singapore Exchange or elsewhere; and
(c)
in respect of which at least 50% (or such other percentage as the Minister may determine) of its paid-up capital (excluding any part of the paid-up capital held by an eligible holding company before the date of commencement specified in the letter of approval referred to in section 97ZL(2)(a)) is held by an eligible holding company throughout the period referred to in section 97ZL(2)(b);
“qualifying year of assessment”, in relation to an eligible holding company, means any year of assessment relating to the relevant accounting period of the company;
“relevant accounting period”, in relation to an eligible holding company, means the basis period of the company that ends on the same date or a date no later than one year from the end of the corresponding accounting period of the eligible investee company.
[11/2004]
97ZL.
—(1) Any company, incorporated and resident in Singapore, desirous of investing in an overseas company on or after 1st January 2004 for the purpose of acquiring for use in Singapore any technology from the overseas company or for the purpose of gaining access to any new overseas market may make an application in the prescribed form to the Minister to be approved as an eligible holding company.
[11/2004]
(2) Where the Minister is satisfied in respect of any application under subsection (1) that the technology acquired, if introduced in Singapore or the access which would be gained to the new overseas market, would promote or enhance the technological or economic development of Singapore, he may —
(a)
approve the applicant company as an eligible holding company and issue a letter of approval to the company subject to such terms and conditions as he may impose; and
(b)
designate the overseas company as an eligible investee company for a period of 3 years from the date of commencement specified in the letter of approval referred to in paragraph (a).
[11/2004]
[]
(3) No approval under this section shall be given after 31st December 2006.
[11/2004]
97ZM.
—(1) Where an eligible holding company is liable to pay any tax on its chargeable income for any qualifying year of assessment and where the eligible investee company incurs any qualifying loss from the carrying on of any trade or business during the accounting period that ends on the same date or a date no earlier than one year from the end of the relevant accounting period of the eligible holding company to which that qualifying year of assessment relates, the payment of a specified amount of the tax for that qualifying year of assessment by the eligible holding company shall be deferred.
[11/2004]
(2) The specified amount of tax the payment of which may be deferred for any qualifying year of assessment by an eligible holding company under subsection (1) shall be ascertained in accordance with the formula
A x C | ||
B | ||
where | A | is the amount of qualifying loss of the eligible investee company incurred during the accounting period of the company as determined under section 97ZN; |
B | is the amount of chargeable income of the eligible holding company for the qualifying year of assessment relating to the relevant accounting period which ends on the same date or a date no later than one year from the end of the accounting period of the eligible investee company during which the qualifying loss is incurred; and | |
C | is the amount of tax payable by the eligible holding company for the qualifying year of assessment relating to the relevant accounting period which ends on the same date or a date no later than one year from the end of the accounting period of the eligible investee company during which the qualifying loss is incurred. |
[11/2004]
(3) The specified amount of tax deferred by an eligible holding company under subsection (1) for any qualifying year of assessment shall be paid by the company to the Comptroller not later than 2 years from the date of the notice of assessment on which tax for that qualifying year of assessment was imposed, and where more than one assessment is issued to the company for that qualifying year of assessment, the specified amount of tax shall be paid not later than 2 years from the date of the earliest of the notices of assessment.
[11/2004]
(4) Where an eligible investee company incurs a qualifying loss from the carrying on of any trade or business in any accounting period, but the eligible holding company is not liable to pay any tax for the qualifying year of assessment relating to the relevant accounting period which ends on the same date or a date no later than one year from the end of the accounting period of the eligible investee company, the amount of such loss shall not be used to compute the specified amount of tax the payment of which may be deferred for any subsequent qualifying year of assessment by the eligible holding company.
[11/2004]
(5) If, at the time the qualifying loss of an eligible investee company is ascertained for any accounting period, the eligible holding company has made any payment of any part of the tax payable for the qualifying year of assessment relating to the relevant accounting period which ends on the same date or a date no later than one year from the end of the accounting period of the eligible investee company, the amount of tax that the eligible holding company may defer under subsection (1) for that qualifying year of assessment shall be limited to the amount of the tax remaining unpaid by the company as at the date the qualifying loss is ascertained.
[11/2004]
(6) Where the specified amount of tax deferred by an eligible holding company under subsection (1) for any qualifying year of assessment has been ascertained and any subsequent revision of assessment is made on the company for that qualifying year of assessment, the specified amount of tax to be deferred by the company under subsection (1) for that qualifying year of assessment shall be re-ascertained in accordance with the formula specified in subsection (2) for the subsequent revision of assessment, except that the references to the amount in B and C shall be read as references to the revised amount, in each case.
[11/2004]
97ZN.
—(1) The qualifying loss of an eligible investee company for any accounting period shall be the lowest of the following amounts:
(a)
the amount determined in accordance with the formula
D x E x G | ||
F | ||
where | D | is the amount of loss before tax as disclosed in the audited financial statementf the eligible investee company for that accounting period; |
E | is — | |
(i) the number of days from the date the eligible investee company is designated as such to the end of the accounting period, if the accounting period is the first accounting period of the company; | ||
(ii) the number of days from the first day of the accounting period to the last day the eligible investee company remains designated as such, if the accounting period is the last accounting period of the company; or | ||
(iii) the number of days in the accounting period of the eligible investee company, in any other case; | ||
F | is the number of days in that accounting period of the eligible investee company; and | |
G | is the percentage of paid-up capital (excluding any part of the paid-up capital held by the eligible holding company before the date of commencement specified in the letter of approval referred to in section 97ZL(2)(a)) of the eligible investee company that is held by the eligible holding company during that accounting period of the eligible investee company, and where the percentage of paid-up capital (excluding any part of the paid-up capital held by the eligible holding company before the date of commencement specified in the letter of approval referred to in section 97ZL(2)(a)) changes during that accounting period, the average percentage held over such accounting period; |
(b)
the amount of paid-up capital (excluding any part of the paid-up capital held by the eligible holding company before the date of commencement specified in the letter of approval referred to in section 97ZL(2)(a)) held by the eligible holding company in the eligible investee company during that accounting period of the eligible investee company, and where the amount of paid-up capital (excluding any part of the paid-up capital held by the eligible holding company before the date of commencement specified in the letter of approval referred to in section 97ZL(2)(a)) changes during that accounting period, the average amount held over such accounting period; or
(c)
the amount of chargeable income of the eligible holding company for the qualifying year of assessment relating to the relevant accounting period which ends on the same date or a date no later than one year from the end of that accounting period of the eligible investee company.
[11/2004]
(2) The amount of qualifying loss of an eligible investee company for any accounting period shall be certified by the external auditor of the company unless the Minister otherwise directs.
[11/2004]
97ZO. Notwithstanding anything in this Part, where it appears to the Comptroller that any amount of tax the payment of which has been deferred by an eligible holding company for any qualifying year of assessment under section 97ZM(1) ought not to have been deferred by reason of the revocation under section 99 of the letter of approval issued under section 97ZL to the company, the company shall pay the amount of tax deferred to the Comptroller immediately upon receipt of a notice in writing from the Comptroller to do so.
[11/2004]