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Contents  

Long Title

Part I PRELIMINARY

Part II ADMINISTRATION

Part III IMPOSITION OF INCOME TAX

Part IV EXEMPTION FROM INCOME TAX

Part V DEDUCTIONS AGAINST INCOME

Part VI CAPITAL ALLOWANCES

Part VII ASCERTAINMENT OF CERTAIN INCOME

Part VIII ASCERTAINMENT OF STATUTORY INCOME

Part IX ASCERTAINMENT OF ASSESSABLE INCOME

Part X ASCERTAINMENT OF CHARGEABLE INCOME AND PERSONAL RELIEFS

Part XI RATES OF TAX

Part XII DEDUCTION OF TAX AT SOURCE

Part XIII ALLOWANCES FOR TAX CHARGED

Part XIV RELIEF AGAINST DOUBLE TAXATION

Part XV PERSONS CHARGEABLE

Husband and wife

Trustees, agents and curators

Part XVI RETURNS

Part XVII ASSESSMENTS AND OBJECTIONS

Part XVIII APPEALS

Part XIX COLLECTION, RECOVERY AND REPAYMENT OF TAX

Part XX OFFENCES AND PENALTIES

Part XXA Exchange of information under avoidance of double taxation arrangements and exchange of information arrangements

Part XXB INTERNATIONAL AGREEMENTS TO IMPROVE TAX COMPLIANCE

Part XXI MISCELLANEOUS

FIRST SCHEDULE Institution, authority, person or fund exempted

SECOND SCHEDULE Rates of tax

THIRD SCHEDULE

FOURTH SCHEDULE Name of bond, securities, stock or fund

FIFTH SCHEDULE Child relief

SIXTH SCHEDULE Number of years of working life of asset

SEVENTH SCHEDULE Advance rulings

EIGHTH SCHEDULE Information to be included in a request for information under Part XXA

Legislative History

Comparative Table

Comparative Table

 
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Balancing allowances and charges for machinery or plant
20.
—(1)  Except as provided in this section, where at any time after the setting up and on or before the permanent discontinuance of a trade, profession or business, any event occurs whereby machinery or plant in respect of which allowances under section 19 or 19A have been made to a person carrying on a trade, profession or business —
(a)
ceases to belong to that person (whether on a sale of the machinery or plant or in any other circumstances of any description); or
(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),
an allowance or a charge, to be known as a balancing allowance or a balancing charge, shall in the circumstances mentioned in this section be made to or, as the case may be, on that person for the year of assessment in the basis period for which that event occurs.
(1A)  Where the property in machinery or plant passes at less than the open-market price, then for the purpose of determining the amount of any balancing allowance or balancing charge the event shall be treated as if it had given rise to sale moneys of an amount equal to the open-market price of the machinery or plant.
(2)  Where machinery or plant continues to belong to that person after the date on which it permanently ceases to be used for the purposes of a trade, profession or business carried on by him in Singapore, 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, it shall be deemed to have been sold on the date of permanent cessation of use at the open-market price on that date.
(2A)  Where there are no sale, insurance, salvage or compensation moneys or where the amount of the capital expenditure of the person in question on the provision of the machinery or plant still unallowed as at the time of the event exceeds those moneys, a balancing allowance shall be made, and the amount thereof shall be the amount of the expenditure still unallowed as aforesaid or, as the case may be, the excess thereof over those moneys.
(3)  If the sale, insurance, salvage or compensation moneys exceed the amount, if any, of the said expenditure still unallowed as at the time of the event, a balancing charge shall be made, and the amount on which it is made shall be an amount equal to the excess or, where the said amount still unallowed is nil, to those moneys.
(4)  Notwithstanding anything in subsection (3), in no case shall the amount on which a balancing charge is made on a person exceed —
(a)
the aggregate of the initial allowance, if any, and the annual allowances, if any, made to him under section 19 in respect of the expenditure in question; and
(b)
the special allowances, if any, made to him under section 19A in respect of the expenditure in question.
[13/84]
(5)  Notwithstanding anything in this section but subject to subsection (6A), where a balancing allowance or balancing charge falls to be made under subsection (1) in respect of a motor car to which section 19(3) applies, the sum to be taken in lieu of the open‑market price or sale, insurance, salvage or compensation moneys for the purpose of calculating such balancing allowance or charge shall be ascertained in accordance with the formula
where A
is the open-market price or sale, insurance, salvage or compensation moneys in respect of the motor car; and
B
is the capital expenditure incurred in respect of the motor car.
[37/75; 9/80; 5/83; 49/2004]
(6)  Notwithstanding anything in this section, no balancing allowance shall be made in respect of a motor car within the meaning of section 19(4)(a) which is not, for any basis period after the basis period for the year of assessment 1981, registered as a business service passenger vehicle for the purposes of the Road Traffic Act (Cap. 276).
[9/80; 1/98]
(6A)  Unless otherwise provided in this Act or the Economic Expansion Incentives (Relief from Income Tax) Act (Cap. 86), where, in the basis period for any year of assessment, the trade, profession or business, for which purpose the machinery or plant is provided, produces income that is exempt from tax as well as income chargeable with tax, and any balancing allowance or balancing charge arises to be made —
(a)
the balancing allowance shall be made against each income for that year of assessment in such proportion as appears reasonable to the Comptroller in the circumstances; and
(b)
such proportion of the balancing charge shall be exempt from tax as appears reasonable to the Comptroller in the circumstances.
(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), (c) and (f), 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:
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, 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).
(7)  In this section, “open-market price”, in relation to any machinery or plant, means the price which the machinery or plant would have fetched if sold in the open market at the time of the event in question; except that where the Comptroller is satisfied by reason of the special nature of any machinery or plant that it is not practicable to determine an open-market price, he may adopt such other value as appears to him to be reasonable in the circumstances.
History for Provision '20 Balancing allowances and charges for machinery or plant'.
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Right Arrow
pr20-.
30/04/1996
Formal Consolidation
30 April 1996
1996 RevEd
 
Compare versionsDiff

23/01/1998
Informal Consolidation
23 January 1998
Amended
Act 1 of 1998

27/02/1998
Informal Consolidation
14 August 1998
Amended
Act 31 of 1998

30/12/1999
Formal Consolidation
30 December 1999
1999 RevEd
 
Compare versionsDiff

18/01/2000
Informal Consolidation
07 September 2000
Amended
Act 24 of 2000

15/03/2000
Informal Consolidation
15 March 2000
Amended
Act 9 of 2000

07/09/2000
Informal Consolidation
07 September 2000
Amended
Act 24 of 2000

01/10/2000
Informal Consolidation
10 August 2001
Amended
Act 24 of 2001

31/01/2001
Informal Consolidation
10 August 2001
Amended
Act 24 of 2001

01/04/2001
Informal Consolidation
01 April 2001
Amended
Act 3 of 2001

01/06/2001
Informal Consolidation
10 December 2002
Amended
Act 37 of 2002

10/08/2001
Informal Consolidation
10 August 2001
Amended
Act 24 of 2001

13/10/2001
Informal Consolidation
10 December 2002
Amended
Act 37 of 2002

23/11/2001
Informal Consolidation
10 December 2002
Amended
Act 37 of 2002

01/01/2008
Formal Consolidation
01 January 2008
2008 RevEd
 
Compare versionsDiff

17/01/2008
Informal Consolidation
16 December 2008
Amended
Act 34 of 2008

16/02/2008
Informal Consolidation
16 December 2008
Amended
Act 34 of 2008

27/02/2008
Informal Consolidation
27 February 2008
Amended
Act 35 of 2007

01/04/2008
Informal Consolidation
18 December 2012
Amended
Act 29 of 2012

02/04/2008
Informal Consolidation
02 April 2008
Amended
Act 10 of 2006

01/10/2008
Informal Consolidation
31 December 2009
Amended
Act 27 of 2009

31/10/2008
Informal Consolidation
31 October 2008
Amended
Act 22 of 2011

16/12/2008
Informal Consolidation
16 December 2008
Amended
Act 34 of 2008

01/01/2009
Informal Consolidation
16 December 2008
Amended
Act 34 of 2008

09/01/2009
Informal Consolidation
09 January 2009
Amended
Act 22 of 2011

22/01/2009
Informal Consolidation
28 November 2013
Amended
Act 19 of 2013

01/04/2009
Informal Consolidation
01 April 2009
Amended
Act 22 of 2011

04/05/2009
Informal Consolidation
31 December 2009
Amended
Act 27 of 2009

01/07/2009
Informal Consolidation
31 December 2009
Amended
Act 27 of 2009

01/10/2009
Informal Consolidation
28 November 2013
Amended
Act 19 of 2013

29/12/2009
Informal Consolidation
31 December 2009
Amended
Act 27 of 2009

01/01/2010
Informal Consolidation
26 November 2010
Amended
Act 29 of 2010

09/02/2010
Informal Consolidation
22 January 2010
Amended
Act 24 of 2009

22/02/2010
Informal Consolidation
18 December 2012
Amended
Act 29 of 2012

23/02/2010
Informal Consolidation
20 December 2011
Amended
Act 22 of 2011

01/03/2010
Informal Consolidation
26 November 2010
Amended
Act 29 of 2010

01/04/2010
Informal Consolidation
18 December 2012
Amended
Act 29 of 2012

21/05/2010
Informal Consolidation
26 November 2010
Amended
Act 29 of 2010

07/07/2010
Informal Consolidation
20 December 2011
Amended
Act 22 of 2011

22/10/2010
Informal Consolidation
22 October 2010
Amended
Act 25 of 2010

22/11/2010
Informal Consolidation
22 November 2010
Amended
Act 29 of 2010

01/01/2011
Informal Consolidation
18 December 2012
Amended
Act 29 of 2012

19/02/2011
Informal Consolidation
19 February 2011
Amended
Act 22 of 2011

01/03/2011
Informal Consolidation
26 November 2010
Amended
Act 29 of 2010

01/04/2011
Informal Consolidation
01 April 2011
Amended
Act 22 of 2011

25/04/2011
Informal Consolidation
25 April 2011
Amended
Act 22 of 2011

01/05/2011
Informal Consolidation
08 April 2011
Amended
Act 13 of 2011

01/06/2011
Informal Consolidation
18 December 2012
Amended
Act 29 of 2012

01/09/2011
Informal Consolidation
01 September 2011
Amended
Act 22 of 2011

20/12/2011
Informal Consolidation
20 December 2011
Amended
Act 22 of 2011

17/02/2013
Informal Consolidation
17 December 2012
Amended
Act 2 of 2013

28/02/2012
Informal Consolidation
18 December 2012
Amended
Act 29 of 2012

03/12/2012
Informal Consolidation
03 December 2012
Amended
S 595/2012

28/06/2013
Informal Consolidation
28 November 2013
Amended
Act 19 of 2013

28/11/2013
Informal Consolidation
28 November 2013
Amended
Act 19 of 2013

25/02/2013
Informal Consolidation
28 November 2013
Amended
Act 19 of 2013

21/02/2014
Informal Consolidation
27 November 2014
Amended
Act 37 of 2014

13/03/2013
Informal Consolidation
04 February 2013
Amended
Act 3 of 2013

01/01/2012
Informal Consolidation
20 December 2011
Amended
Act 22 of 2011

01/03/2012
Informal Consolidation
18 December 2012
Amended
Act 29 of 2012

18/04/2013
Informal Consolidation
17 April 2013
Amended
Act 11 of 2013

01/06/2012
Informal Consolidation
18 December 2012
Amended
Act 29 of 2012

23/12/2013
Informal Consolidation
20 December 2013
Amended
S 775/2013

30/05/2014
Informal Consolidation
27 November 2014
Amended
Act 37 of 2014

28/02/2013
Informal Consolidation
27 November 2014
Amended
Act 37 of 2014

27/11/2014
Informal Consolidation
27 November 2014
Amended
Act 37 of 2014

01/04/2012
Informal Consolidation
18 December 2012
Amended
Act 29 of 2012

17/02/2012
Informal Consolidation
18 December 2012
Amended
Act 29 of 2012

26/02/2013
Informal Consolidation
28 November 2013
Amended
Act 19 of 2013

01/01/2014
Informal Consolidation
28 November 2013
Amended
Act 19 of 2013

18/12/2012
Informal Consolidation
28 November 2013
Amended
Act 19 of 2013

31/01/2013
Informal Consolidation
02 January 2013
Amended
Act 36 of 2012

01/09/2014
Informal Consolidation
27 November 2014
Amended
Act 37 of 2014

01/04/2013
Informal Consolidation
28 November 2013
Amended
Act 19 of 2013

31/03/2014
Formal Consolidation
31 March 2014
2014 RevEd
 
Compare versionsDiff

01/04/2014
Informal Consolidation
27 November 2014
Amended
Act 37 of 2014

22/02/2014
Informal Consolidation
27 November 2014
Amended
Act 37 of 2014

01/01/2015
Informal Consolidation
01 January 2015
Amended
Act 37 of 2014

01/06/2015
Informal Consolidation
01 June 2015
Amended
Act 37 of 2014

01/07/2015
Informal Consolidation
27 November 2014
Amended
Act 37 of 2014