Singapore Government
Link to Homepage
Home | About Us | Browse | Advanced Search | Results | My Preferences | FAQ | Help | PLUS
 
Contents  

Long Title

Enacting Formula

 
Slider
Left Corner
Previous | Next Print   Link to Viewed Version
 
On 18/10/2017, you requested the version as published on or before 18/10/2017.
Amendment of section 14DA
14.  Section 14DA of the principal Act is amended —
(a)
by deleting “2013” in subsection (1) and substituting “2015”;
(b)
by inserting, immediately after subsection (1), the following subsections:
(1A)  For the purpose of ascertaining the income of any person carrying on a trade or business during the basis period for any year of assessment between the year of assessment 2011 and the year of assessment 2015 (both years inclusive), there shall be allowed in respect of all his trades and businesses, in addition to the deductions allowed under section 14D and subsection (1), a deduction of the lower of $300,000 and the aggregate of —
(a)
the qualifying expenditure referred to subsection (1)(a); and
(b)
the qualifying amount of the payments referred to in subsection (1)(b).
(1B)  For the year of assessment 2011 and the year of assessment 2012, instead of the deduction under subsection (1A) in respect of each year of assessment, a person shall be allowed a deduction of —
(a)
for the year of assessment 2011, the lower of —
(i)
the aggregate of the qualifying expenditure referred to in subsection (1)(a) incurred and the qualifying amount of the payments referred to in subsection (1)(b) made during the basis period for that year of assessment; and
(ii)
$600,000; and
(b)
for the year of assessment 2012, the lower of —
(i)
the aggregate of the qualifying expenditure referred to in subsection (1)(a) incurred and the qualifying amount of the payments referred to in subsection (1)(b) made during the basis period for that year of assessment; and
(ii)
the balance after deducting from $600,000 the lower of the amounts specified in paragraph (a)(i) and (ii).
(1C)  For the purposes of subsections (1A)(b) and (1B)(a)(i) and (b)(i), the qualifying amount of the payments referred to in subsection (1)(b) is —
(a)
where more than 60% of all such payments are qualifying expenditure, the actual amount of qualifying expenditure;
(b)
in all other cases, 60% of such payments.
(1D)  For the purposes of subsections (1A) and (1B), where an individual carrying on a trade or business through 2 or more firms (excluding partnerships) has incurred qualifying expenditure referred to in subsection (1)(a) or made payments referred to in subsection (1)(b) during the basis period for any year of assessment between the year of assessment 2011 and the year of assessment 2015 (both years inclusive) in respect of such firms, the deduction that may be allowed to him for those expenditure or payments in respect of all his trades and businesses shall not exceed the lower amount referred to in subsection (1A) or, in the case of the year of assessment 2011 and the year of assessment 2012, the lower amounts referred to in subsection (1B)(a) and (b), respectively.
(1E)  For the purposes of subsections (1A) and (1B), where a partnership carrying on a trade or business has incurred qualifying expenditure referred to in subsection (1)(a) or made payments referred to in subsection (1)(b) during the basis period for any year of assessment between the year of assessment 2011 and the year of assessment 2015 (both years inclusive), the aggregate of the deductions that may be allowed to all the partners of the partnership for those expenditure or payments in respect of all the trades and businesses of the partnership shall not exceed the lower amount referred to in subsection (1A) or, in the case of the year of assessment 2011 and the year of assessment 2012, the lower amounts referred to in subsection (1B)(a) and (b), respectively.”;
(c)
by deleting the words “subsection (1)(a) and (b)” in subsection (2) and substituting the words “subsections (1)(a) and (b), (1A) and (1B)”;
(d)
by deleting paragraph (a) of subsection (2) and substituting the following paragraph:
(a)
a reference to the amount of the expenditure or payments (after deducting any amount in respect of which an election for a cash payout has been made under section 37I) is a reference to —
(i)
the percentage of the expenditure or payments referred to in subsection (1)(a) or (b); or
(ii)
the amount determined to be deducted under subsection (1A) or (1B),
as the case may be, after deducting any amount in respect of which an election for a cash payout has been made under section 37I; and”;
(e)
by deleting the definition “A” in subsection (2)(b) and substituting the following definition:
A is —
(i)
the percentage of the expenditure or payments referred to in subsection (1)(a) or (b); or
(ii)
the amount determined to be deducted under subsection (1A) or (1B),
as the case may be, after deducting any amount in respect of which an election for a cash payout has been made under section 37I;”;
(f)
by inserting, immediately after subsection (2), the following subsection:
(2A)  No deduction shall be allowed to a company under subsection (1A) or (1B) for any year of assessment if a deduction for any expenditure has been allowed under section 37G for that year of assessment.”;
(g)
by deleting the comma at the end of paragraph (c) of the definition of “qualifying expenditure” in subsection (3) and substituting a semi-colon;
(h)
by deleting the words “but does not include any expenditure to the extent it is subsidised by Government grants or subsidies;” in the definition of “qualifying expenditure” in subsection (3); and
(i)
by inserting, immediately after subsection (3), the following subsection:
(4)  In this section, a reference to qualifying expenditure or to payment made by a person to a research and development organisation for undertaking research and development in Singapore on his behalf excludes any such expenditure or payment, as the case may be, to the extent that it is subsidised by grants or subsidies from the Government or a statutory board.”.
No History for selected provision