EXPORT OF SERVICES
44A. For the purposes of this Part, unless the context otherwise requires —
“commencement day”, in relation to an export service company or export service firm, means the date specified under section 44B(3) in the certificate issued to that company or firm under that section;
“export service company” means a company which has been issued with a certificate under section 44B(2);
“export service firm” means a firm which has been issued with a certificate under section 44B(2);
“qualifying services” means any of the following services undertaken with respect to overseas projects for persons who are neither residents of nor permanent establishments in Singapore:
technical services including construction, distribution, design and engineering services;
consultancy, management, supervisory or advisory services relating to any technical matter or to any trade or business;
fabrication of machinery and equipment and procurement of materials, components and equipment;
data processing, programming, computer software development, telecommunications and other computer services;
professional services including accounting, legal, medical and architectural services;
educational and training services; and
any other services as may be prescribed.
—(1) Where a company or firm is engaged in any qualifying service, the company or firm may apply in the prescribed form to the Minister for approval as an export service company or export service firm.
(2) The Minister may, if he considers it expedient in the public interest to do so, approve the application and issue the company or firm with a certificate subject to such terms and conditions as he may impose.
(3) Every certificate issued to an export service company or firm under this section shall specify —
a date as the commencement day from which the company or firm shall be entitled to tax relief under this Part;
its qualifying services; and
its base amount of income for the purpose of section 44E(2).
(4) The Minister may, in his discretion, upon the application of an export service company or firm, amend its certificate by substituting for the commencement day specified therein such earlier or later date as he thinks fit and thereupon the provisions of this Part shall have effect as if the date so substituted were the commencement day in relation to that certificate.
—(1) The tax relief period of an export service company or firm shall commence on its commencement day and shall continue for such period, not exceeding 10 years, as the Minister may, in his discretion, determine.
(2) The Minister may, where he is satisfied that it is expedient in the public interest to do so and subject to such terms and conditions as he may impose, extend the tax relief period of any export service company or firm for such further periods, not exceeding 5 years at any one time, as he may determine, except that the tax relief period of the export service company or firm shall not in the aggregate exceed 20 years.
—(1) Section 9 shall apply, with the necessary modifications, to an export service company or firm as it applies to a pioneer enterprise.
(2) Section 40 shall apply, with the necessary modifications, to an export service company as it applies to an export enterprise.
(3) Sections 49 and 50 shall apply, with the necessary modifications, to an export service company or firm as they apply to an international trading company and for the purposes of such application, the reference in section 49(2) to the export sales of qualifying manufactured goods, Singapore domestic produce and qualifying commodities shall be read as a reference to the provision of qualifying services.
—(1) The income of an export service company or firm in respect of its qualifying services shall be ascertained (after making such adjustments as may be necessary in consequence of a direction under section 9 as made applicable by section 44D) for any accounting period during its tax relief period in accordance with the Income Tax Act, and, in particular, the following provisions shall apply:
income from sources other than the qualifying services shall be excluded and separately assessed;
there shall be deducted in arriving at the income derived from the qualifying services —
all direct costs and expenses incurred in respect of the qualifying services;
all indirect expenses which are reasonably and properly attributable to the qualifying services;
—(1) For each year of assessment, the Comptroller shall issue to an export service company or firm a statement for that year of assessment showing the amount of income ascertained under section 44E(2) which will qualify for the relief provided by this section, and Parts XVII and XVIII of the Income Tax Act (relating to objections and appeals) and any regulations made thereunder shall apply, with the necessary modifications, as if that statement were a notice of assessment given under those provisions.
(2) Subject to section 40(6), where any statement issued under subsection (1) has become final and conclusive, 90% of the amount of the qualifying income referred to in subsection (1) shall not form part of the statutory income of the export service company or firm for the year of assessment to which the income relates and shall be exempt from tax.
44G. The Comptroller may require an auditor to certify the income derived by an export service company or firm from its qualifying services and any direct costs and expenses incurred therefor.
44H. Where the export service firm is a partnership, this Part shall apply to the partners subject to such provisions as may be prescribed.
44I. The Minister may by regulations provide, in relation to an export service company or firm, for the deduction of —