Further deduction for expenses relating to approved trade fairs, exhibitions or trade missions or to maintenance of overseas trade office
—(1) Subject to this section, where the Comptroller is satisfied that the expenses specified in subsection (2) have been incurred by an approved firm or company resident in or having a permanent establishment in Singapore for the primary purpose of —
promoting the trading of goods or the provision of services; or
the provision of services in connection with the use of any right under a master franchise or master intellectual property licence where the firm or company is the holder of the franchise or licence,
there shall be allowed a further deduction of the amount of such expenses in addition to the amount allowed under section 14.
(2) The expenses referred to in subsection (1) are —
expenses in establishing, maintaining or otherwise participating in —
a trade fair, trade exhibition, trade mission or trade promotion activity held or conducted outside Singapore; or
an approved trade fair or trade exhibition held in Singapore;
expenses in maintaining an approved overseas trade office; or
market development expenditure for the carrying out of any approved marketing project.
(2A) For the purposes of subsection (1), the firm or company need not be an approved firm or approved company to be allowed a deduction under that subsection in respect of expenses referred to in subsection (2)(a) which are incurred at any time from 1st April 2012 to 31st March 2016 (both dates inclusive) for the primary purpose of promoting the trading of goods or the provision of services, provided that the aggregate of —
the expenses for which the deduction is so allowed; and
the expenditure for which a deduction is allowed to the firm or company under section 14K(1A),
does not exceed $100,000 for each year of assessment.
(3) The Minister or such person as he may appoint may specify the maximum amount of expenditure (or any item thereof) to be allowed under subsection (1), other than expenses that are the subject of a claim for deduction under subsection (2A).
[26/93; 31/98; 7/2007; 29/2012]
(4) No deduction shall be allowed under this section in respect of —
any expenses which are not allowed as deductions under section 14;
travelling, accommodation and subsistence expenses or allowances for —
more than 2 employees taking part in the trade fair, trade exhibition, trade mission or trade promotion activity, being one held or conducted overseas; or
more than the approved number of employees taking part in the approved marketing project;
any expenses relating to an approved overseas trade office —
which are incurred in the establishment of the approved overseas trade office;
by way of remuneration, travelling, accommodation and subsistence expenses or allowances for more than the approved number of employees of the approved overseas trade office;
which are specifically excluded as a condition for the approval of the overseas trade office under this section;
which are incurred after the end of the approved number of years from the date of establishment of the approved overseas trade office; or
which are incurred by a firm or company having a permanent establishment subject to tax in the country in which the approved trade office is established;
any expenses incurred during the basis period for a year of assessment by a firm or company if —
any part of its income for that year of assessment is exempt or partly exempt from tax under section 13A, 13F, 13S or 13V;
any part of its income for that year of assessment is subject to tax at a concessionary rate of tax under section 43C, 43E, 43G, 43J, 43P, 43Q, 43W, 43ZA, 43ZB, 43ZC or 43ZF or the regulations made thereunder; or
it is given tax relief under Part II, III or IIIB of the Economic Expansion Incentives (Relief from Income Tax) Act (Cap. 86) for that year of assessment, or is given an investment allowance under Part X of that Act for that year of assessment; or
any expenses to the extent they are or are to be subsidised by a grant or subsidy from the Government or a statutory board.
[26/93; 31/98; 32/99; 22/2011; 29/2012]
(4A) Notwithstanding subsection (4), the Minister or such person as he may appoint may, in any particular case, subject to such conditions as he may impose, allow a deduction of any expenses referred to in subsection (4)(c)(v) provided that they are not also expenses referred to in subsection (4)(c)(i), (ii), (iii) or (iv).
(5) [Deleted by Act 19 of 2013]
(6) [Deleted by Act 19 of 2013]
(7) [Deleted by Act 19 of 2013]
(8) [Deleted by Act 19 of 2013]
(9) [Deleted by Act 19 of 2013]
(10) Notwithstanding anything in this section, where it appears to the Comptroller that in any year of assessment any further deduction which has been allowed under this section or section 14E or 14L ought not to have been so allowed, the Comptroller may, within the year of assessment or within 4 years after the expiration thereof, make such assessment or additional assessment upon the firm or company as may be necessary in order to make good any loss of tax.
(11) In this section —
“approved” means approved by the Minister or such person as he may appoint;
“market development expenditure” means —
approved expenses directly attributable to the carrying out of market research or obtaining of market information, including any feasibility study;
expenses in respect of advertisements placed in approved media;
expenses incurred on approved promotion campaigns; or
approved expenses incurred in the design of packaging, or in the certification of goods or services where such certification is carried out by an approved person;
“master franchise” means any agreement under which the franchisor authorises or permits the franchisee to use in Singapore or overseas a business system owned or controlled by the franchisor, including the sub-franchising of the business system;
“master intellectual property licence” means any licence under which the licensor authorises or permits the licensee to use in Singapore or overseas the rights under a patent, copyright, trade mark, design or know-how, including the sub-licensing of the same.
(12) No approval shall be granted under this section after 31st March 2016.