On 23/05/2013,
you requested for the version in force on 23/05/2013
incorporating all amendments published on or before 23/05/2013.
The closest version currently available is that of 16/12/2008.
29. Section 20 of the principal Act is amended —
(a)
by deleting paragraph (b) of subsection (1) and substituting the following paragraph:
“(b)
while continuing to belong to that person —
(i)
in a case where the machinery or plant which —
(A)
was provided for any research and development undertaken by him directly in Singapore or by a research and development organisation on his behalf in Singapore; and
(B)
was not provided for the purpose of a trade or business carried on by him,
permanently ceases to be used for any research and development undertaken by him directly in Singapore or by a research and development organisation on his behalf in Singapore, and is not used for the purpose of a trade, profession or business carried on by him; or
(ii)
in any other case, permanently ceases to be used for the purpose of a trade, profession or business carried on by him in Singapore (whether by reason of the discontinuance of the trade, profession or business, or discontinuance of use of such machinery or plant in a trade, profession or business which continues to be carried on in Singapore),”;
(b)
by inserting, immediately after the words “in Singapore,” in subsection (2), the words “or (as the case may be) for the purpose of any research and development undertaken by him directly in Singapore or by a research and development organisation on his behalf in Singapore,”; and
(c)
by inserting, immediately after subsection (6A), the following subsections:
“(6B) Section 14D(4) and (5) shall apply in relation to the balancing allowance to be made to a person under subsection (1)(b)(i) as they apply in relation to the deduction of the expenditure and payments referred to in section 14D(1)(aa) and (c), subject to the following modifications:
(a)
a reference to the amount of the expenditure or payments is a reference to the amount of the balancing allowance;
(b)
a reference to unabsorbed losses is a reference to unabsorbed allowances; and
(c)
a reference to a specified amount of the expenditure or payments is a reference to an amount computed in accordance with the following formula:
A | x | B, |
C |
where | A | is the amount of the balancing allowance that could have been made against the income of the person under subsection (1)(b)(i) if the income had been subject to tax at the rate specified in section 43(1)(a); |
B | is the rate of tax specified in section 43(1)(a); and | |
C | is — | |
(i) in a case where the concessionary income (as defined in section 14D(5)) 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 | ||
(ii) 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. |
(6C) Notwithstanding anything in this Act or the Economic Expansion Incentives (Relief from Income Tax) Act (Cap. 86), where a balancing charge falls to be made on a person under subsection (1)(b)(i), the amount of the charge shall be deemed to be income of that person that is chargeable to tax at the rate of tax specified in section 43(1)(a).”.