Economic Expansion Incentives (Relief from Income Tax) Act

• Jurisdiction: Singapore
• Coming into Force: 31 March 2005
• copyrightNote: © Singapore legislation sourced from Singapore Statutes Online. It is subject to copyright of the Singapore Government and is reproduced with the permission of the Attorney-General’s Chambers of Singapore.
• Enactment Date: 15 December 1967
• Published date: 31 March 2005
• Record Number: Cap. 86
• Act Number: (Original Enactment: Act 36 of 1967)

Economic Expansion Incentives (Relief from Income Tax) Act

(CHAPTER 86)

(Original Enactment: Act 36 of 1967)

REVISED EDITION 2005

(31st March 2005)

An Act relating to incentives for the establishment of pioneer industries and for economic expansion generally, by way of providing relief from income tax.

[15th December 1967]

PART I PRELIMINARY Short title 1. This Act may be cited as the Economic Expansion Incentives (Relief from Income Tax) Act. Act to be construed as one with Income Tax Act 2. This Act shall, unless otherwise expressly provided for in this Act, be construed as one with the Income Tax Act (Cap. 134). Interpretation 3. In this Act, unless the context otherwise requires — “approved foreign loan” means a loan which is approved under section 57 to be an approved foreign loan; [Act 11 of 2016 wef 24/02/2015] “approved royalties, fees or contributions” means royalties, technical assistance fees or contributions to research and development costs which have been approved under section 61 to be approved royalties, fees or contributions; [Act 11 of 2016 wef 24/02/2015] “certificate” includes a letter or other document issued by the Minister to a company pursuant to an application made by the company under a provision of this Act; [Act 1 of 2012 wef 29/02/2012] “company” means any company incorporated or registered in accordance with the provisions of any written law relating to companies; “Comptroller” means the Comptroller of Income Tax appointed under the Income Tax Act (Cap. 134); “foreign loan certificate” means a foreign loan certificate issued under section 57; “intellectual property income” means any intellectual property income prescribed by the Minister under section 102; [Act 8 of 2018 wef 04/05/2018] “manufacture”, in relation to a product, includes any process or method used in making or developing the product; “new trade or business” means the trade or business — (a) in respect of any product or products specified in a single pioneer certificate of a pioneer enterprise; and (b) that is considered under section 7 to have been set up and commenced on the day following the tax relief expiry date of the old trade or business in respect of that product or those products; [Act 11 of 2016 wef 19/04/2016] “old trade or business” means the trade or business of a pioneer enterprise which satisfies all the following conditions: (a) it is in respect of one or more pioneer products specified in a single pioneer certificate of the pioneer enterprise; (b) the part of the trade or business in respect of each pioneer product is carried on during the tax relief period for that product; (c) it either ceases before or is considered, under section 7, to have permanently ceased on the tax relief expiry date; [Act 11 of 2016 wef 19/04/2016] “pioneer certificate” means a pioneer certificate issued under section 5; “pioneer enterprise” means any company which has been approved by the Minister under section 5 for a pioneer product and to which a pioneer certificate is issued under that section; [Act 11 of 2016 wef 19/04/2016] “pioneer industry” means an industry approved under section 4 to be a pioneer industry; “pioneer product” means a product approved under section 4 to be a pioneer product; “production day”, in relation to a pioneer product that is approved under section 5(2) for a pioneer enterprise, means the date specified in the pioneer enterprise’s pioneer certificate under section 5(3)(b) or (5)(a) or (c) as the production day of that product; [Act 11 of 2016 wef 19/04/2016] “productive equipment” means machinery or plant which would normally qualify for deduction under sections 19, 19A, 20, 21 and 22 of the Income Tax Act; “royalties, fees or contributions certificate” means a certificate issued under section 61; “royalties or technical assistance fees” includes — (a) any royalties, rentals or other amounts paid as consideration for the use of, or the right to use, copyright, scientific works, patents, designs, plans, secret processes, formulae, trade marks, licences or other like property or rights; (b) income derived from the alienation of property or information mentioned in paragraph (a); and (c) other amounts paid in consideration of services rendered by a non-resident person or his employee in connection with the use of property or rights belonging to, or the initial operation of any plant, machinery or other apparatus purchased from, the non-resident person, but does not include royalties, rentals or other amounts paid in respect of the operation of mines, quarries or other places of extraction of natural resources; or fees paid to an individual for the performance of professional services in Singapore other than as an employee; “tax” means income tax imposed by the Income Tax Act (Cap. 134); [34/84; 11/2004; 48/2004] [Act 11 of 2016 wef 19/04/2016] “tax relief expiry date”, in relation to an old trade or business, means — (a) where the old trade or business is in respect of only one pioneer product, the date on which the tax relief period for that pioneer product expires; or (b) where the old trade or business is in respect of 2 or more pioneer products, the date on which all the tax relief periods for those products expire, or (if the Minister has removed one or more but not all of those products from the pioneer certificate under section 5, or extended the tax relief period or periods for one or more but not all of those products under section 6) the date of expiry of the tax relief period with the latest date of expiry. [Act 11 of 2016 wef 19/04/2016]

PART II PIONEER INDUSTRIES Power to approve an industry and a product as a pioneer industry and a pioneer product 4.—(1) The Minister may, if he considers it expedient in the public interest to do so, approve an industry, which is not being carried on in Singapore on a scale adequate to the economic needs of Singapore and for which in his opinion there are favourable prospects for development, to be a pioneer industry and any specific product of that industry to be a pioneer product. [48/2004] (2) The Minister may revoke any approval given under this section but any such revocation shall not affect the operation of any pioneer certificate issued to any pioneer enterprise before the revocation. [48/2004] (3) Any industry which has been approved as a pioneer industry or any product which has been approved as a pioneer product before the date of commencement of the Economic Expansion Incentives (Relief from Income Tax) (Amendment No. 2) Act 2004 shall be deemed to have been approved under this section. [48/2004] Application for and issue and amendment of pioneer certificate 5.—(1) Any company which is desirous of producing a pioneer product may make an application in writing to the Minister to be approved as a pioneer enterprise for that pioneer product in such form and with such particulars as may be prescribed. [Act 11 of 2016 wef 19/04/2016] (1A) A company may make an application under subsection (1) to be approved as a pioneer enterprise for more than one pioneer product which it is desirous of producing. [Act 11 of 2016 wef 19/04/2016] (2) Where the Minister is satisfied that it is expedient in the public interest to do so and, in particular, having regard to the production or anticipated production of the pioneer product from all sources of production in Singapore, the Minister may approve that company as a pioneer enterprise for that pioneer product and issue a pioneer certificate to the company in respect of that pioneer product, subject to such conditions as he thinks fit. [Act 11 of 2016 wef 19/04/2016] (2A) No company may be approved as a pioneer enterprise on or after 1 January 2024. [Act 11 of 2016 wef 19/04/2016] (3) Every pioneer certificate issued under this section to a pioneer enterprise must be in respect of a pioneer product and must specify — (a) the pioneer product; and (b) the date on or before which it is expected that the pioneer enterprise will commence to produce in marketable quantities the pioneer product. [Act 11 of 2016 wef 19/04/2016] (4) Where the Minister approves a company as a pioneer enterprise for 2 or more pioneer products, the Minister may issue a single pioneer certificate in respect of those pioneer products if — (a) the tax relief periods of the pioneer enterprise for all the pioneer products, as determined by the Minister under section 6, expire on the same day; and (b) the Minister is satisfied that the pioneer enterprise will be producing all the pioneer products as part of the same project. [Act 11 of 2016 wef 19/04/2016] (5) The Minister may, upon the application of any pioneer enterprise, amend a pioneer certificate issued to the pioneer enterprise — (a) by substituting for the date referred to in subsection (3)(b) of a pioneer product specified in the pioneer certificate such earlier or later date as the Minister thinks fit, and upon such substitution the provisions of this Act have effect as if the date so substituted were the pioneer enterprise’s production day of that product; (b) by removing any pioneer product from the pioneer certificate with effect from a date determined by the Minister; or (c) by adding to the pioneer certificate any pioneer product and the date on or before which it is expected that the pioneer enterprise will commence to produce that product in marketable quantities, if — (i) the tax relief period for the pioneer product expires on the same day as the tax relief period or periods of the other pioneer product or products already specified in the pioneer certificate; and (ii) the Minister is satisfied that the pioneer enterprise will be producing that pioneer product and the other pioneer product or products already specified in the pioneer certificate as part of the same project. [Act 11 of 2016 wef 19/04/2016] (6) Without prejudice to section 99, the Minister may, on the Minister’s own initiative, remove any pioneer product from a pioneer certificate with effect from a date determined by the Minister, if the Minister is satisfied that the pioneer enterprise has contravened — (a) ...