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§ 37G — Cash payout under Productivity and Innovation Credit Scheme
37G.—(1) Subject to this section, where any qualifying person has incurred expenditure —(a)
during the basis period relating to the year of assessment 2011 or the year of assessment 2012; or
(b)
during any quarter of a basis period relating to the year of assessment 2013, the year of assessment 2014, the year of assessment 2015, the year of assessment 2016, the year of assessment 2017 or the year of assessment 2018,
for which a deduction or an allowance is allowable or can be made to the qualifying person under any of the provisions of this Act mentioned in subsection (2A) (as qualified by that subsection), the qualifying person may, in lieu of one or more of the deductions or allowances or any part thereof, and in respect of —
(c)
the expenditure qualifying for it or them; or
(d)
any part of such expenditure,
(called in this section the selected expenditure) the total amount of which (together with the cash price of any PIC automation equipment or intellectual property rights in respect of which an election under subsection (4A) is made at the same time) is at least $400, make an irrevocable written election for a cash payout computed in accordance with subsection (3) or (4), as the case may be.
[37/2014]
(2) The irrevocable written election under subsection (1) must —(a)
in respect of the year of assessment 2011 or the year of assessment 2012, be made to the Comptroller by the qualifying person at any time after the end of the basis period for that year of assessment but before the expiry of the time the qualifying person must deliver a return of the qualifying person’s income for that year of assessment or within such extended time as the Comptroller may allow;
(b)
in respect of the year of assessment 2013, the year of assessment 2014, the year of assessment 2015, the year of assessment 2016, the year of assessment 2017 or the year of assessment 2018, be made to the Comptroller by the qualifying person at any time after the end of the quarter of the basis period for that year of assessment but before the expiry of the time the qualifying person must deliver a return of the qualifying person’s income for that year of assessment or within such extended time as the Comptroller may allow;
(ba)
if made on or after 1 August 2016, be made using the electronic service, except that the Comptroller may in any particular case or class of cases permit the election to be made in any other manner; and
(c)
be accompanied by such information and supporting document to be given in such form and manner as the Comptroller may specify.[37/2014; 15/2016]
(2A) For the purposes of subsection (1), the provisions of this Act are —(a)
section 14 in respect of —(i)
expenditure that falls within the definition of “qualifying training expenditure” under section 14O for which a deduction may be given under that section;
(ii)
expenditure that falls within the definition of “qualifying design expenditure” under section 14P for which a deduction may be given under that section;
(iii)
expenditure on the leasing of a PIC automation equipment under a qualifying lease for which a deduction may be given under section 14Q; or
(iv)
expenditure on the licensing from another person of any qualifying intellectual property rights for which a deduction may be given under section 14T;
(b)
section 14A;
(c)
section 14C in respect of expenditure that falls within the definition of “qualifying expenditure” under section 14D;
(d)
section 14D;
(e)
section 14O;
(f)
section 14P;
(g)
section 14Q;
(ga)
section 14T;
(h)
section 19 or 19A(1), (1B), (2), (2A), (2B), (2BAA) or (10), in respect of expenditure incurred on the provision of any PIC automation equipment (including any expenditure that is treated as expenditure incurred on the provision of PIC automation equipment under section 19A(16A)), other than any equipment acquired —(i)
under a hire‑purchase agreement signed before the basis period for the year of assessment 2012 with a payment period that spans over 2 or more basis periods; or
(ii)
under a hire‑purchase agreement signed in the basis period for the year of assessment 2012, the year of assessment 2013, the year of assessment 2014, the year of assessment 2015, the year of assessment 2016, the year of assessment 2017 or the year of assessment 2018;
(i)
section 19B other than —(i)
a writing‑down allowance made in a case where the requirement under section 19B(2A) is waived;
(ii)
a writing‑down allowance made under section 19B(2C);
(iii)
a writing‑down allowance made in respect of any intellectual property rights acquired under an IPR instalment agreement signed before the basis period for the year of assessment 2012 with a payment period that spans over 2 or more basis periods; or
(iv)
a writing‑down allowance made in respect of any intellectual property rights acquired under an IPR instalment agreement signed in the basis period for the year of assessment 2012, the year of assessment 2013, the year of assessment 2014, the year of assessment 2015, the year of assessment 2016, the year of assessment 2017 or the year of assessment 2018; and
(j)
section 37J.[37/2014]
(3) For the year of assessment 2011 and the year of assessment 2012, the amount of cash payout is calculated in accordance with the formula
where A is —
(a)
for the year of assessment 2011, the lower of the following:(i)
the amount of the selected expenditure;
(ii)
$200,000; and
(b)
for the year of assessment 2012, the lower of the following:(i)
the amount of the selected expenditure;
(ii)
the balance after deducting from $200,000 the lower of the amounts specified in paragraph (a)(i) and (ii).
(3A) In subsection (3), the amount under paragraph (a)(ii) is substituted with “$100,000” if the person does not carry on any trade, profession or business during the basis period for the year of assessment 2012, and the balance under paragraph (b)(ii) is substituted with “$100,000” if the person does not carry on any trade, profession or business during the basis period for the year of assessment 2011.
(4) For the year of assessment 2013, the year of assessment 2014, the year of assessment 2015 and the year of assessment 2016, the amount of cash payout for each year of assessment is
where A is the lower of the following:
(a)
the aggregate amount of selected expenditure for all quarters of the basis period relating to that year of assessment;
(b)
$100,000.[37/2014; 15/2016]
(4AA) For the year of assessment 2017, the amount of cash payout is —(a)
if the last day of the basis period for that year of assessment is before 1 August 2016, the amount computed in accordance with subsection (4) (as applied with the necessary modifications); or
(b)
if the last day of the basis period for that year of assessment is on or after 1 August 2016
where A
is the lower of the following:
(i)
the aggregate amount of selected expenditure for one or more quarters (or part of such quarter) between the first day of the basis period for that year of assessment and 31 July 2016 (both dates inclusive);
(ii)
$100,000; and
B
is the lower of the following:
(i)
the aggregate amount of selected expenditure for one or more quarters (or part of such quarter) between 1 August 2016 and the last day of the basis period for that year of assessment (both dates inclusive);
(ii)
the balance after deducting the lower of the amounts specified in paragraphs (i) and (ii) of the definition of A from $100,000.
[15/2016]
(4AB) For the year of assessment 2018, the amount of cash payout is —(a)
if the first day of the basis period for that year of assessment is before 1 August 2016, the amount computed in accordance with subsection (4AA)(b) (as applied with the necessary modifications); or
(b)
if the first day of the basis period for that year of assessment is on or after 1 August 2016
where B
is the lower of the following:
(i)
the aggregate amount of selected expenditure for all quarters of the basis period for that year of assessment;
(ii)
$100,000.
[15/2016]
(4A) Where —(a)
a qualifying person has, in the basis period relating to the year of assessment 2012, the year of assessment 2013, the year of assessment 2014, the year of assessment 2015, the year of assessment 2016, the year of assessment 2017 or the year of assessment 2018, signed a hire‑purchase agreement to acquire any PIC automation equipment for the purposes of a trade, profession or business carried on by the qualifying person, or an IPR instalment agreement to acquire any intellectual property rights for use in the qualifying person’s trade or business;
(b)
allowances may be made to the qualifying person under section 19, 19A(1), (2), (2A), (2B) or (2BAA) or 19B for capital expenditure to be incurred under the agreement; and
(c)
the cash price for the equipment or intellectual property rights (together with any selected expenditure referred to in subsection (1) in respect of which an election is made under that subsection at the same time) is at least $400,
the qualifying person may, in lieu of all those allowances, make an irrevocable written election for a cash payout.
[37/2014]
(4B) The irrevocable written election under subsection (4A) must —(a)
if the hire‑purchase agreement or IPR instalment agreement is signed in the basis period for the year of assessment 2012, be made to the Comptroller by the qualifying person at any time after the end of the basis period but before the expiry of the time the qualifying person must deliver a return of the qualifying person’s income for that year of assessment or within such extended time as the Comptroller may allow;
(b)
if the hire‑purchase agreement or IPR instalment agreement is signed in any quarter of the basis period for the year of assessment 2013, the year of assessment 2014, the year of assessment 2015, the year of assessment 2016, the year of assessment 2017 or the year of assessment 2018, be made to the Comptroller by the qualifying person at any time after the end of that quarter but before the expiry of the time the qualifying person must deliver a return of the qualifying person’s income for that year of assessment or within such extended time as the Comptroller may allow;
(ba)
if made on or after 1 August 2016, be made using the electronic service, except that the Comptroller may in any particular case or class of cases permit the election to be made in any other manner; and
(c)
be accompanied by such information and supporting documents to be given in such form and manner as the Comptroller may specify.[37/2014; 15/2016]
(4C) Where an election under subsection (4A) is made, then subsections (3), (4), (4AA) and (4AB) apply with the following modifications:(a)
a reference to the amount of selected expenditure or the aggregate amount of selected expenditure for a year of assessment, being the year of assessment relating to the basis period in which the agreement is signed, is a reference to the aggregate of —(i)
the cash price of the PIC automation equipment or intellectual property rights; and
(ii)
the expenditure referred to in subsection (1) incurred in that basis period or all the quarters of that basis period (as the case may be), for which a deduction or an allowance is allowable or may be made to the qualifying person, and in respect of which an election has been made under that subsection;
(b)
a reference to the amount of selected expenditure or the aggregate amount of selected expenditure for any year of assessment excludes the amount of any capital expenditure made by the qualifying person under that agreement in the basis period for that year of assessment.[15/2016]
(4D) The maximum amount of cash payout for each equipment that is the subject of a hire‑purchase agreement, or any intellectual property rights that are the subject of an IPR instalment agreement, is the amount computed under subsection (3), (4), (4AA) or (4AB) (as modified by subsection (4C)) (as the case may be) that is attributable to —(a)
the cash price of the equipment or rights; or
(b)
such part of the price of the equipment or rights that the qualifying person elects to be used for computing the cash payout for the year of assessment if the selected expenditure or the aggregate amount of selected expenditure for the cash payout is —(i)
the amount mentioned in subsection (3)(a)(ii) in the case of the year of assessment 2011, or subsection (3)(b)(ii) in the case of the year of assessment 2012;
(ii)
$100,000 in the case of the year of assessment 2013, 2014, 2015 or 2016;
(iii)
$100,000 —(A)
in the case of the year of assessment 2017, where the last day of the basis period for that year of assessment is before 1 August 2016; or
(B)
in the case of the year of assessment 2018, where the first day of the basis period for that year of assessment is on or after 1 August 2016; or
(iv)
the amount mentioned in paragraph (ii) of the definition of A or paragraph (ii) of the definition of B in subsection (4AA)(b) —(A)
in the case of the year of assessment 2017, where the last day of the basis period for that year of assessment is on or after 1 August 2016; or
(B)
in the case of the year of assessment 2018, where the first day of the basis period for that year of assessment is before 1 August 2016.[15/2016]
(4DA) Sub‑paragraphs (i) to (iv) of subsection (4D)(b) have effect for all cash payouts for the respective years of assessment mentioned in those sub‑paragraphs.[15/2016]
(4DB) In subsections (4C)(a)(i) and (4D)(a), a reference to the cash price of intellectual property rights is, in a case where the Comptroller has treated the open‑market price mentioned in section 19B(10I) as the amount mentioned in section 19B(1C)(a)(i) in relation to those rights, a reference to the open‑market price.[34/2016]
(4E) The cash payout under subsection (4A) for each equipment that is the subject of a hire‑purchase agreement, or any intellectual property rights that are the subject of an IPR instalment agreement, must be made to the qualifying person in the following manner:(a)
the qualifying person may claim an amount of cash payout for the year of assessment relating to a basis period or a quarter thereof during which the qualifying person incurred capital expenditure under the agreement for that equipment or those rights;
(b)
the amount of cash payout that may be made to the qualifying person is the lesser of —(i)
A × B,where A
is the amount of such capital expenditure; and
B
is the percentage in the second column of the following table set out opposite the period in which the agreement is signed in the first column of the table:
If the agreement is signed
Percentage
In the basis period for the year of assessment 2012
30%
In the basis period for the year of assessment 2013, 2014, 2015 or 2016
60%
On or before 31 July 2016 in the basis period for the year of assessment 2017 or 2018
60%
On or after 1 August 2016 in the basis period for the year of assessment 2017 or 2018
40%; or
(ii)
the maximum amount referred to in subsection (4D) after deducting any cash payout made earlier for that equipment or those rights under this subsection;
(c)
no cash payout may be made for that equipment or those rights if the amount referred to in paragraph (b)(ii) is zero;
(d)
each claim must be made in such form and be accompanied by such information and supporting document relating to the capital expenditure as the Comptroller may specify;
(e)
to avoid doubt, a claim may be made for any year of assessment after the year of assessment 2018.[37/2014; 15/2016]
(5) For the purposes of subsections (1), (3), (4), (4AA), (4AB) and (4A), an individual carrying on one or more trades, professions or businesses through 2 or more firms (excluding partnerships) must not be granted a cash payout that exceeds the amount computed in accordance with subsection (3), (4), (4AA) or (4AB), as the case may be.[15/2016]
(6) [Deleted by Act 19 of 2013]
(7) Where a qualifying person has elected for a cash payout in lieu of a deduction or an allowance under section 14A, 19, 19A(1), (1B), (2), (2A), (2B), (2BAA) or (10) or 19B, the election so made is treated as having been made on the full amount of the expenditure qualifying for such deduction or allowance and incurred on —(a)
the grant or registration of each qualifying intellectual property right in each country;
(b)
the provision of each PIC automation equipment; or
(c)
the acquisition of each intellectual property right,
as the case may be, to which the election relates, net of any grant or subsidy from the Government or a statutory board.
[37/2014]
(8) Despite subsections (1), (4A) and (7), where a qualifying person has incurred capital expenditure —(a)
on the provision of any PIC automation equipment for the purpose of leasing such equipment; or
(b)
in acquiring any intellectual property rights in any software for the purpose of licensing all or any part of those rights,
the qualifying person is not allowed to exercise an election under subsection (1) or (4A) in respect of such expenditure.
(8A) Where a qualifying person incurs capital expenditure during the basis period for the year of assessment 2016 or a subsequent year of assessment on the provision of any PIC automation equipment, the qualifying person is only allowed to make an election under subsection (1) or (4A) in respect of that expenditure if the qualifying person proves to the Comptroller’s satisfaction that the PIC automation equipment is in use for the purposes of the qualifying person’s trade, profession or business.[37/2014]
(8B) The Comptroller may, subject to such conditions as the Comptroller may impose, waive the application of subsection (8A) if the Comptroller is satisfied that there is a reasonable cause for the PIC automation equipment not being in use for the purposes of the person’s trade, profession or business.[37/2014]
(9) No part of the amount of any expenditure referred to in subsection (7) for which an election is made or treated as having been made under subsection (1) or (4A) is eligible for a deduction or an allowance against the income of the qualifying person for any year of assessment.
(9A) [Deleted by Act 29 of 2012]
(10) Where a cash payout has been made under this section in lieu of —(a)
a deduction under section 14A and the intellectual property rights or the application for the registration or grant of the rights for which the deduction is made is sold, transferred or assigned within one year from the date of filing of the application for the registration or grant of such rights; or
(b)
an allowance under section 19 or 19A(1), (1B), (2), (2A), (2B), (2BAA) or (10) and the PIC automation equipment for which the allowance is made is sold, transferred, assigned or leased out within one year from the provision of such PIC automation equipment,
the following provisions apply:
(c)
the qualifying person must give written notice to the Comptroller of such sale, transfer, assignment or lease in the manner specified by the Comptroller within 30 days from the date of such sale, transfer, assignment or lease;
(d)
the cash payout in respect of the intellectual property rights, the application for the registration or grant of such rights, or the PIC automation equipment is recoverable by the Comptroller from the qualifying person as a debt due to the Government;
(e)
in the case of a PIC automation equipment that is the subject of a hire‑purchase agreement, no cash payout may be made to the qualifying person for any capital expenditure under the agreement incurred in the basis period or the quarter thereof (as the case may be) in which the sale, transfer, assignment or lease occurs and for any subsequent basis period or quarter thereof.[37/2014]
(10A) The Minister, or such person the Minister may appoint, may waive the application of subsection (10) in respect of an event referred to in paragraph (b) of that subsection in the same circumstances as those referred to in section 19A(2HA).
(11) Where a cash payout has been made to a qualifying person pursuant to an election under subsection (1) in lieu of a writing‑down allowance under section 19B, and any of the following events occurs within 5 years from the acquisition of the intellectual property rights:(a)
the intellectual property rights for which the writing‑down allowance is made come to an end without being subsequently revived;
(b)
all or any part of the intellectual property rights for which the writing‑down allowance is made are sold, transferred or assigned;
(c)
the qualifying person permanently ceases to carry on the trade or business for which the intellectual property rights are used;
(d)
all or any part of the intellectual property rights in any software for which the writing‑down allowance is granted are licensed to another,
then the following provisions apply:
(e)
the qualifying person must give written notice to the Comptroller of such event in the manner specified by the Comptroller within 30 days from the date of such event;
(f)
an amount computed in accordance with the following formula is recoverable by the Comptroller from the qualifying person as a debt due to the Government:
(11A) Where —(a)
an election has been made under subsection (4A) for a cash payout in lieu of a writing‑down allowance under section 19B; and
(b)
any of the events referred to in subsection (11)(a) to (d) occurs within 5 years from the acquisition of the intellectual property rights,
then the following provisions apply:
(c)
the qualifying person must give written notice to the Comptroller of such event in the manner specified by the Comptroller within 30 days from the date of such event;
(d)
where any amount of the cash payout has been made to the qualifying person before the occurrence of the event, an amount computed in accordance with the formula in subsection (11)(f) is recoverable by the Comptroller from the qualifying person as a debt due to the Government;
(e)
for the purposes of paragraph (d), the reference in the formula to the amount of cash payout is a reference to the total amount of the cash payout that has been made to the qualifying person before the occurrence of the event;
(f)
the amount of the cash payout that may be made to the qualifying person for the basis period or a quarter thereof (as the case may be) in which the event occurs and thereafter is, instead of the amount computed in accordance with subsection (4E)(b), an amount computed in accordance with the formula
(12) Where any tax, duty, interest or penalty is due under this Act, the Goods and Services Tax Act 1993, the Property Tax Act 1960 or the Stamp Duties Act 1929 by the qualifying person to the Comptroller of Income Tax, the Comptroller of Goods and Services Tax, the Comptroller of Property Tax or the Commissioner of Stamp Duties, the amount of cash payout made by the Comptroller to the qualifying person is reduced by the amount so due.
(13) Any amount reduced under subsection (12) is deemed to be tax, duty, interest or penalty paid by the qualifying person under the relevant Act and must (if it is due under an Act other than this Act) be paid by the Comptroller to the Comptroller of Goods and Services Tax, the Comptroller of Property Tax or the Commissioner of Stamp Duties, as the case may be.
(14) If an election has been made under subsection (1) or (4A) in respect of an amount of expenditure qualifying for a deduction or an allowance under section 14, 14A(1), 14C, 14D(1), 19, 19A(1), (1B), (2) or (10) or 19B(1) or (1AA), the amount of expenditure qualifying for the deduction or allowance under that provision is, despite anything in that provision, reduced by the firstmentioned amount.[37/2014; 34/2016]
(14A) If an election has been made under subsection (1) or (4A) in respect of an amount of expenditure qualifying for a deduction or allowance under section 14A(1A), (1B) or (1BA), 14D(2), 14O, 14P, 14Q, 14T, 19A(2A), (2B) or (2BAA) or 19B(1A), (1B) or (1BAA), the amount of expenditure qualifying for the deduction or allowance under that provision must, despite anything in that provision, not exceed the difference between —(a)
the maximum amount of expenditure in respect of which the deduction or allowance may be allowed or made under that provision for the year of assessment in question; and
(b)
the firstmentioned amount.[37/2014]
(15) Where a qualifying person has received a cash payout under subsection (1) or (4A) —(a)
in respect of any expenditure that is subsequently found not to qualify for the allowance or deduction under the relevant provision of this Act mentioned in subsection (2A) or (4A);
(b)
without having satisfied all of the requirements in this section (excluding the requirements in subsections (10) and (11)) for the payout; or
(c)
that is in excess of that which may be given to it under this section,
the amount of the cash payout or the excess amount of the cash payout (as the case may be) is recoverable by the Comptroller from the qualifying person as a debt due to the Government.
(16) The amount to be repaid under subsection (10), (11), (11A) or (15) is payable at the place stated in the notice served by the Comptroller on the qualifying person within 30 days after the service of the notice.
(17) The Comptroller may, in his or her discretion and subject to such terms and conditions as the Comptroller may impose, extend the time limit within which payment under subsection (16) is to be made.
(18) Sections 86(1) to (6), 87(1) and (2), 89, 90 and 91 apply to the collection and recovery by the Comptroller of the amounts recoverable under subsections (10), (11), (11A) and (15) as they apply to the collection and recovery of tax.
(19) Unless disallowed by the Comptroller under subsection (20), where the Comptroller has recovered any amount under subsection (15)(b) or (c), the amount of the relevant expenditure mentioned in subsection (14) or (14A) is to be increased by an amount determined in accordance with the formula
where A
is the amount recovered by the Comptroller under subsection (15)(b) or (c); and
B
is the percentage in the second column of the following table if the amount recovered is for a cash payout for —
(a)
expenditure incurred;
(b)
equipment acquired under a hire‑purchase agreement signed; or
(c)
intellectual property rights acquired under an IPR instalment agreement signed,
in the period set out opposite in the first column of the table:
When the expenditure was incurred, or the hire‑purchase agreement or IPR instalment agreement was signed
Percentage
In the basis period for the year of assessment 2011 or 2012
30%
In the basis period for the year of assessment 2013, 2014, 2015 or 2016
60%
On or before 31 July 2016 in the basis period for the year of assessment 2017 or 2018
60%
On or after 1 August 2016 in the basis period for the year of assessment 2017 or 2018
40%.
[15/2016]
(20) The Comptroller may disallow the increase under subsection (19) if the Comptroller is satisfied that the qualifying person has —(a)
provided the Comptroller with any information or document, in connection with an election under subsection (1) or (4A), which is false or misleading in a material particular;
(b)
omitted any material particular from any information or document given in connection with an election under subsection (1) or (4A);
(c)
prepared or maintained or authorised the preparation or maintenance of any false books of account or other records or falsified or authorised the falsification of any books of account or records in connection with an election under subsection (1) or (4A); or
(d)
made use of any fraud, art or contrivance whatsoever or authorised the use of such fraud, art or contrivance, in connection with an election under subsection (1) or (4A).
(21) In this section —“cash price” —(a)
in relation to any PIC automation equipment that is the subject of a hire‑purchase agreement, means the price (including capital expenditure incurred on alterations to an existing building incidental to the installation of the equipment but excluding any finance charges) at which the qualifying person in question might have purchased the equipment for cash at the time of the signing of the agreement; or
(b)
in relation to any intellectual property rights that are the subject of an IPR instalment agreement, means the price at which the qualifying person in question might have purchased those rights for cash at the time of the signing of the agreement;
“central hirer” and “central hiring arrangement” have the meanings given by section 14O(6);
“IPR instalment agreement” means an agreement for the purchase of intellectual property rights the payment for which is to be made by instalments;
“local employee”, in relation to a qualifying person who elects for a cash payout under subsection (1) or (4A), means any Singapore citizen or Singapore permanent resident, but excludes —(a)
a shareholder who is also a director of the qualifying person if the qualifying person is a company within the meaning of section 4 of the Companies Act 1967; and
(b)
a partner under a contract for service of the qualifying person if the qualifying person is a partnership;
“local person”, in relation to a qualifying person who elects for a cash payout under subsection (1) or (4A), means any citizen or permanent resident of Singapore, but excludes —(a)
a shareholder who is also a director of the qualifying person if the qualifying person is a company within the meaning of section 4 of the Companies Act 1967; and
(b)
a partner under a contract for service of the qualifying person if the qualifying person is a partnership;
“PIC automation equipment” has the meaning given by section 19A;
“qualifying person” means any company or firm (including a partnership) that —(a)
carries on a trade, profession or business in Singapore; and
(b)
employs and makes contributions to the Central Provident Fund in respect of not less than 3 local employees based on the payroll for —(i)
in the case of the basis period for the year of assessment 2011 or the year of assessment 2012, the last month (or such other month as the Comptroller may determine) of the basis period;
(ii)
in the case of a quarter of the basis period for the year of assessment 2013, the year of assessment 2014 or the year of assessment 2015, the last month of the quarter; and
(iii)
in the case of a quarter of the basis period, for the year of assessment 2016, the year of assessment 2017 or the year of assessment 2018, all 3 months of the quarter;
“quarter”, in relation to a basis period, means a period of 3 months beginning with —(a)
the first month of the basis period;
(b)
the 4th month of the basis period;
(c)
the 7th month of the basis period; or
(d)
the 10th month of the basis period,
or any of several non‑overlapping periods within the basis period as the Comptroller may specify for the qualifying person.
[Act 33 of 2022 wef 04/11/2022]
[37/2014]
[Deleted by Act 33 of 2022 wef 04/11/2022]
(21A) For the purpose of paragraph (b)(ii) and (iii) of the definition of “qualifying person” in subsection (21), the reference to a local employee of a qualifying person based on the qualifying person’s payroll for any part of the basis period for the year of assessment 2014 or a subsequent year of assessment, includes a reference to —(a)
a local person —(i)
who is engaged by the central hirer of a central hiring arrangement for a group of related parties which includes the qualifying person;
(ii)
who is deployed to work solely for the qualifying person in that part of the basis period;
(iii)
who is on the payroll of the central hirer or the qualifying person for that part of the basis period; and
(iv)
whose salary and other remuneration (including training expenditure incurred in respect of the person) for that part of the basis period is borne, directly or indirectly, by the qualifying person; and
(b)
a local person —(i)
who, being an employee of another person (called in this subsection and subsection (21B) the employer), is seconded to the qualifying person under a bona fide commercial arrangement to work solely for the qualifying person in that part of the basis period;
(ii)
who is on the payroll of the employer or the qualifying person for that part of the basis period; and
(iii)
whose salary and other remuneration (including training expenditure incurred in respect of the person) for that part of the basis period is borne, directly or indirectly, by the qualifying person,
and the local person is treated as employed by the qualifying person for the purpose of paragraph (b) of the definition.
[37/2014]
(21B) In determining whether the central hirer or employer referred to in subsection (21A) satisfies the definition of “qualifying person” in subsection (21), the person referred to in subsection (21A)(a) or (b) is not treated as being employed by the central hirer or the employer based on the payroll of the central hirer or employer for the part of the basis period referred to in subsection (21A).[37/2014]
(21C) In subsections (7), (8), (8A), (8B) and (10), a reference to expenditure incurred on the provision of a PIC automation equipment includes a reference to expenditure incurred on the provision of a website for the purposes of a trade, profession or business, and a reference to PIC automation equipment includes a reference to such a website.[37/2014]
(21D) To avoid doubt, where the Comptroller has treated the open‑market price mentioned in section 19B(10E) as the capital expenditure incurred for the acquisition of intellectual property rights, then the reference in this section to selected expenditure, insofar as it relates to that capital expenditure, is a reference to such open‑market price.[34/2016]
(22) The Comptroller may allow an election under subsection (1) or (4A), or both, to be made in respect of 2 or more consecutive quarters of the basis period for the year of assessment 2013, the year of assessment 2014, the year of assessment 2015, the year of assessment 2016, the year of assessment 2017 or the year of assessment 2018, and for that purpose —(a)
the reference in the definition of “qualifying person” in subsection (21) to the last month of a quarter is a reference to the last month of the combined consecutive quarters or, if the election is in respect of the entire basis period, the last month of the basis period or such other month as the Comptroller may determine;
(aa)
the reference in sub‑paragraph (b)(iii) of the definition of “qualifying person” in subsection (21) to all 3 months of the quarter is a reference to the last 3 months of the combined consecutive quarters or such other months as the Comptroller may determine or, if the election is in respect of the entire basis period, the last 3 months of the basis period or such other months as the Comptroller may determine;
(b)
the requirement under subsection (1) or (4A), or both (as the case may be) that the expenditure and cash price for a quarter of a basis period must be at least $400 is applied to all the expenditure or cash price, or both (as the case may be), for the combined consecutive quarters for which the qualifying person intends to make the election; and
(c)
the reference in subsection (2) or (4B), or both (as the case may be), to the end of a quarter is a reference to the end of the combined consecutive quarters.[37I
[37/2014]
—(1) Subject to this section, where any qualifying person has incurred expenditure —(a)
during the basis period relating to the year of assessment 2011 or the year of assessment 2012; or
(b)
during any quarter of a basis period relating to the year of assessment 2013, the year of assessment 2014, the year of assessment 2015, the year of assessment 2016, the year of assessment 2017 or the year of assessment 2018,
for which a deduction or an allowance is allowable or can be made to the qualifying person under any of the provisions of this Act mentioned in subsection (2A) (as qualified by that subsection), the qualifying person may, in lieu of one or more of the deductions or allowances or any part thereof, and in respect of —
(c)
the expenditure qualifying for it or them; or
(d)
any part of such expenditure,
(called in this section the selected expenditure) the total amount of which (together with the cash price of any PIC automation equipment or intellectual property rights in respect of which an election under subsection (4A) is made at the same time) is at least $400, make an irrevocable written election for a cash payout computed in accordance with subsection (3) or (4), as the case may be.
[37/2014]
(2) The irrevocable written election under subsection (1) must —(a)
in respect of the year of assessment 2011 or the year of assessment 2012, be made to the Comptroller by the qualifying person at any time after the end of the basis period for that year of assessment but before the expiry of the time the qualifying person must deliver a return of the qualifying person’s income for that year of assessment or within such extended time as the Comptroller may allow;
(b)
in respect of the year of assessment 2013, the year of assessment 2014, the year of assessment 2015, the year of assessment 2016, the year of assessment 2017 or the year of assessment 2018, be made to the Comptroller by the qualifying person at any time after the end of the quarter of the basis period for that year of assessment but before the expiry of the time the qualifying person must deliver a return of the qualifying person’s income for that year of assessment or within such extended time as the Comptroller may allow;
(ba)
if made on or after 1 August 2016, be made using the electronic service, except that the Comptroller may in any particular case or class of cases permit the election to be made in any other manner; and
(c)
be accompanied by such information and supporting document to be given in such form and manner as the Comptroller may specify.[37/2014; 15/2016]
(2A) For the purposes of subsection (1), the provisions of this Act are —(a)
section 14 in respect of —(i)
expenditure that falls within the definition of “qualifying training expenditure” under section 14O for which a deduction may be given under that section;
(ii)
expenditure that falls within the definition of “qualifying design expenditure” under section 14P for which a deduction may be given under that section;
(iii)
expenditure on the leasing of a PIC automation equipment under a qualifying lease for which a deduction may be given under section 14Q; or
(iv)
expenditure on the licensing from another person of any qualifying intellectual property rights for which a deduction may be given under section 14T;
(b)
section 14A;
(c)
section 14C in respect of expenditure that falls within the definition of “qualifying expenditure” under section 14D;
(d)
section 14D;
(e)
section 14O;
(f)
section 14P;
(g)
section 14Q;
(ga)
section 14T;
(h)
section 19 or 19A(1), (1B), (2), (2A), (2B), (2BAA) or (10), in respect of expenditure incurred on the provision of any PIC automation equipment (including any expenditure that is treated as expenditure incurred on the provision of PIC automation equipment under section 19A(16A)), other than any equipment acquired —(i)
under a hire‑purchase agreement signed before the basis period for the year of assessment 2012 with a payment period that spans over 2 or more basis periods; or
(ii)
under a hire‑purchase agreement signed in the basis period for the year of assessment 2012, the year of assessment 2013, the year of assessment 2014, the year of assessment 2015, the year of assessment 2016, the year of assessment 2017 or the year of assessment 2018;
(i)
section 19B other than —(i)
a writing‑down allowance made in a case where the requirement under section 19B(2A) is waived;
(ii)
a writing‑down allowance made under section 19B(2C);
(iii)
a writing‑down allowance made in respect of any intellectual property rights acquired under an IPR instalment agreement signed before the basis period for the year of assessment 2012 with a payment period that spans over 2 or more basis periods; or
(iv)
a writing‑down allowance made in respect of any intellectual property rights acquired under an IPR instalment agreement signed in the basis period for the year of assessment 2012, the year of assessment 2013, the year of assessment 2014, the year of assessment 2015, the year of assessment 2016, the year of assessment 2017 or the year of assessment 2018; and
(j)
section 37J.[37/2014]
(3) For the year of assessment 2011 and the year of assessment 2012, the amount of cash payout is calculated in accordance with the formula
where A is —
(a)
for the year of assessment 2011, the lower of the following:(i)
the amount of the selected expenditure;
(ii)
$200,000; and
(b)
for the year of assessment 2012, the lower of the following:(i)
the amount of the selected expenditure;
(ii)
the balance after deducting from $200,000 the lower of the amounts specified in paragraph (a)(i) and (ii).
(3A) In subsection (3), the amount under paragraph (a)(ii) is substituted with “$100,000” if the person does not carry on any trade, profession or business during the basis period for the year of assessment 2012, and the balance under paragraph (b)(ii) is substituted with “$100,000” if the person does not carry on any trade, profession or business during the basis period for the year of assessment 2011.
(4) For the year of assessment 2013, the year of assessment 2014, the year of assessment 2015 and the year of assessment 2016, the amount of cash payout for each year of assessment is
where A is the lower of the following:
(a)
the aggregate amount of selected expenditure for all quarters of the basis period relating to that year of assessment;
(b)
$100,000.[37/2014; 15/2016]
(4AA) For the year of assessment 2017, the amount of cash payout is —(a)
if the last day of the basis period for that year of assessment is before 1 August 2016, the amount computed in accordance with subsection (4) (as applied with the necessary modifications); or
(b)
if the last day of the basis period for that year of assessment is on or after 1 August 2016
where A
is the lower of the following:
(i)
the aggregate amount of selected expenditure for one or more quarters (or part of such quarter) between the first day of the basis period for that year of assessment and 31 July 2016 (both dates inclusive);
(ii)
$100,000; and
B
is the lower of the following:
(i)
the aggregate amount of selected expenditure for one or more quarters (or part of such quarter) between 1 August 2016 and the last day of the basis period for that year of assessment (both dates inclusive);
(ii)
the balance after deducting the lower of the amounts specified in paragraphs (i) and (ii) of the definition of A from $100,000.
[15/2016]
(4AB) For the year of assessment 2018, the amount of cash payout is —(a)
if the first day of the basis period for that year of assessment is before 1 August 2016, the amount computed in accordance with subsection (4AA)(b) (as applied with the necessary modifications); or
(b)
if the first day of the basis period for that year of assessment is on or after 1 August 2016
where B
is the lower of the following:
(i)
the aggregate amount of selected expenditure for all quarters of the basis period for that year of assessment;
(ii)
$100,000.
[15/2016]
(4A) Where —(a)
a qualifying person has, in the basis period relating to the year of assessment 2012, the year of assessment 2013, the year of assessment 2014, the year of assessment 2015, the year of assessment 2016, the year of assessment 2017 or the year of assessment 2018, signed a hire‑purchase agreement to acquire any PIC automation equipment for the purposes of a trade, profession or business carried on by the qualifying person, or an IPR instalment agreement to acquire any intellectual property rights for use in the qualifying person’s trade or business;
(b)
allowances may be made to the qualifying person under section 19, 19A(1), (2), (2A), (2B) or (2BAA) or 19B for capital expenditure to be incurred under the agreement; and
(c)
the cash price for the equipment or intellectual property rights (together with any selected expenditure referred to in subsection (1) in respect of which an election is made under that subsection at the same time) is at least $400,
the qualifying person may, in lieu of all those allowances, make an irrevocable written election for a cash payout.
[37/2014]
(4B) The irrevocable written election under subsection (4A) must —(a)
if the hire‑purchase agreement or IPR instalment agreement is signed in the basis period for the year of assessment 2012, be made to the Comptroller by the qualifying person at any time after the end of the basis period but before the expiry of the time the qualifying person must deliver a return of the qualifying person’s income for that year of assessment or within such extended time as the Comptroller may allow;
(b)
if the hire‑purchase agreement or IPR instalment agreement is signed in any quarter of the basis period for the year of assessment 2013, the year of assessment 2014, the year of assessment 2015, the year of assessment 2016, the year of assessment 2017 or the year of assessment 2018, be made to the Comptroller by the qualifying person at any time after the end of that quarter but before the expiry of the time the qualifying person must deliver a return of the qualifying person’s income for that year of assessment or within such extended time as the Comptroller may allow;
(ba)
if made on or after 1 August 2016, be made using the electronic service, except that the Comptroller may in any particular case or class of cases permit the election to be made in any other manner; and
(c)
be accompanied by such information and supporting documents to be given in such form and manner as the Comptroller may specify.[37/2014; 15/2016]
(4C) Where an election under subsection (4A) is made, then subsections (3), (4), (4AA) and (4AB) apply with the following modifications:(a)
a reference to the amount of selected expenditure or the aggregate amount of selected expenditure for a year of assessment, being the year of assessment relating to the basis period in which the agreement is signed, is a reference to the aggregate of —(i)
the cash price of the PIC automation equipment or intellectual property rights; and
(ii)
the expenditure referred to in subsection (1) incurred in that basis period or all the quarters of that basis period (as the case may be), for which a deduction or an allowance is allowable or may be made to the qualifying person, and in respect of which an election has been made under that subsection;
(b)
a reference to the amount of selected expenditure or the aggregate amount of selected expenditure for any year of assessment excludes the amount of any capital expenditure made by the qualifying person under that agreement in the basis period for that year of assessment.[15/2016]
(4D) The maximum amount of cash payout for each equipment that is the subject of a hire‑purchase agreement, or any intellectual property rights that are the subject of an IPR instalment agreement, is the amount computed under subsection (3), (4), (4AA) or (4AB) (as modified by subsection (4C)) (as the case may be) that is attributable to —(a)
the cash price of the equipment or rights; or
(b)
such part of the price of the equipment or rights that the qualifying person elects to be used for computing the cash payout for the year of assessment if the selected expenditure or the aggregate amount of selected expenditure for the cash payout is —(i)
the amount mentioned in subsection (3)(a)(ii) in the case of the year of assessment 2011, or subsection (3)(b)(ii) in the case of the year of assessment 2012;
(ii)
$100,000 in the case of the year of assessment 2013, 2014, 2015 or 2016;
(iii)
$100,000 —(A)
in the case of the year of assessment 2017, where the last day of the basis period for that year of assessment is before 1 August 2016; or
(B)
in the case of the year of assessment 2018, where the first day of the basis period for that year of assessment is on or after 1 August 2016; or
(iv)
the amount mentioned in paragraph (ii) of the definition of A or paragraph (ii) of the definition of B in subsection (4AA)(b) —(A)
in the case of the year of assessment 2017, where the last day of the basis period for that year of assessment is on or after 1 August 2016; or
(B)
in the case of the year of assessment 2018, where the first day of the basis period for that year of assessment is before 1 August 2016.[15/2016]
(4DA) Sub‑paragraphs (i) to (iv) of subsection (4D)(b) have effect for all cash payouts for the respective years of assessment mentioned in those sub‑paragraphs.[15/2016]
(4DB) In subsections (4C)(a)(i) and (4D)(a), a reference to the cash price of intellectual property rights is, in a case where the Comptroller has treated the open‑market price mentioned in section 19B(10I) as the amount mentioned in section 19B(1C)(a)(i) in relation to those rights, a reference to the open‑market price.[34/2016]
(4E) The cash payout under subsection (4A) for each equipment that is the subject of a hire‑purchase agreement, or any intellectual property rights that are the subject of an IPR instalment agreement, must be made to the qualifying person in the following manner:(a)
the qualifying person may claim an amount of cash payout for the year of assessment relating to a basis period or a quarter thereof during which the qualifying person incurred capital expenditure under the agreement for that equipment or those rights;
(b)
the amount of cash payout that may be made to the qualifying person is the lesser of —(i)
A × B,where A
is the amount of such capital expenditure; and
B
is the percentage in the second column of the following table set out opposite the period in which the agreement is signed in the first column of the table:
If the agreement is signed
Percentage
In the basis period for the year of assessment 2012
30%
In the basis period for the year of assessment 2013, 2014, 2015 or 2016
60%
On or before 31 July 2016 in the basis period for the year of assessment 2017 or 2018
60%
On or after 1 August 2016 in the basis period for the year of assessment 2017 or 2018
40%; or
(ii)
the maximum amount referred to in subsection (4D) after deducting any cash payout made earlier for that equipment or those rights under this subsection;
(c)
no cash payout may be made for that equipment or those rights if the amount referred to in paragraph (b)(ii) is zero;
(d)
each claim must be made in such form and be accompanied by such information and supporting document relating to the capital expenditure as the Comptroller may specify;
(e)
to avoid doubt, a claim may be made for any year of assessment after the year of assessment 2018.[37/2014; 15/2016]
(5) For the purposes of subsections (1), (3), (4), (4AA), (4AB) and (4A), an individual carrying on one or more trades, professions or businesses through 2 or more firms (excluding partnerships) must not be granted a cash payout that exceeds the amount computed in accordance with subsection (3), (4), (4AA) or (4AB), as the case may be.[15/2016]
(6) [Deleted by Act 19 of 2013]
(7) Where a qualifying person has elected for a cash payout in lieu of a deduction or an allowance under section 14A, 19, 19A(1), (1B), (2), (2A), (2B), (2BAA) or (10) or 19B, the election so made is treated as having been made on the full amount of the expenditure qualifying for such deduction or allowance and incurred on —(a)
the grant or registration of each qualifying intellectual property right in each country;
(b)
the provision of each PIC automation equipment; or
(c)
the acquisition of each intellectual property right,
as the case may be, to which the election relates, net of any grant or subsidy from the Government or a statutory board.
[37/2014]
(8) Despite subsections (1), (4A) and (7), where a qualifying person has incurred capital expenditure —(a)
on the provision of any PIC automation equipment for the purpose of leasing such equipment; or
(b)
in acquiring any intellectual property rights in any software for the purpose of licensing all or any part of those rights,
the qualifying person is not allowed to exercise an election under subsection (1) or (4A) in respect of such expenditure.
(8A) Where a qualifying person incurs capital expenditure during the basis period for the year of assessment 2016 or a subsequent year of assessment on the provision of any PIC automation equipment, the qualifying person is only allowed to make an election under subsection (1) or (4A) in respect of that expenditure if the qualifying person proves to the Comptroller’s satisfaction that the PIC automation equipment is in use for the purposes of the qualifying person’s trade, profession or business.[37/2014]
(8B) The Comptroller may, subject to such conditions as the Comptroller may impose, waive the application of subsection (8A) if the Comptroller is satisfied that there is a reasonable cause for the PIC automation equipment not being in use for the purposes of the person’s trade, profession or business.[37/2014]
(9) No part of the amount of any expenditure referred to in subsection (7) for which an election is made or treated as having been made under subsection (1) or (4A) is eligible for a deduction or an allowance against the income of the qualifying person for any year of assessment.
(9A) [Deleted by Act 29 of 2012]
(10) Where a cash payout has been made under this section in lieu of —(a)
a deduction under section 14A and the intellectual property rights or the application for the registration or grant of the rights for which the deduction is made is sold, transferred or assigned within one year from the date of filing of the application for the registration or grant of such rights; or
(b)
an allowance under section 19 or 19A(1), (1B), (2), (2A), (2B), (2BAA) or (10) and the PIC automation equipment for which the allowance is made is sold, transferred, assigned or leased out within one year from the provision of such PIC automation equipment,
the following provisions apply:
(c)
the qualifying person must give written notice to the Comptroller of such sale, transfer, assignment or lease in the manner specified by the Comptroller within 30 days from the date of such sale, transfer, assignment or lease;
(d)
the cash payout in respect of the intellectual property rights, the application for the registration or grant of such rights, or the PIC automation equipment is recoverable by the Comptroller from the qualifying person as a debt due to the Government;
(e)
in the case of a PIC automation equipment that is the subject of a hire‑purchase agreement, no cash payout may be made to the qualifying person for any capital expenditure under the agreement incurred in the basis period or the quarter thereof (as the case may be) in which the sale, transfer, assignment or lease occurs and for any subsequent basis period or quarter thereof.[37/2014]
(10A) The Minister, or such person the Minister may appoint, may waive the application of subsection (10) in respect of an event referred to in paragraph (b) of that subsection in the same circumstances as those referred to in section 19A(2HA).
(11) Where a cash payout has been made to a qualifying person pursuant to an election under subsection (1) in lieu of a writing‑down allowance under section 19B, and any of the following events occurs within 5 years from the acquisition of the intellectual property rights:(a)
the intellectual property rights for which the writing‑down allowance is made come to an end without being subsequently revived;
(b)
all or any part of the intellectual property rights for which the writing‑down allowance is made are sold, transferred or assigned;
(c)
the qualifying person permanently ceases to carry on the trade or business for which the intellectual property rights are used;
(d)
all or any part of the intellectual property rights in any software for which the writing‑down allowance is granted are licensed to another,
then the following provisions apply:
(e)
the qualifying person must give written notice to the Comptroller of such event in the manner specified by the Comptroller within 30 days from the date of such event;
(f)
an amount computed in accordance with the following formula is recoverable by the Comptroller from the qualifying person as a debt due to the Government:
(11A) Where —(a)
an election has been made under subsection (4A) for a cash payout in lieu of a writing‑down allowance under section 19B; and
(b)
any of the events referred to in subsection (11)(a) to (d) occurs within 5 years from the acquisition of the intellectual property rights,
then the following provisions apply:
(c)
the qualifying person must give written notice to the Comptroller of such event in the manner specified by the Comptroller within 30 days from the date of such event;
(d)
where any amount of the cash payout has been made to the qualifying person before the occurrence of the event, an amount computed in accordance with the formula in subsection (11)(f) is recoverable by the Comptroller from the qualifying person as a debt due to the Government;
(e)
for the purposes of paragraph (d), the reference in the formula to the amount of cash payout is a reference to the total amount of the cash payout that has been made to the qualifying person before the occurrence of the event;
(f)
the amount of the cash payout that may be made to the qualifying person for the basis period or a quarter thereof (as the case may be) in which the event occurs and thereafter is, instead of the amount computed in accordance with subsection (4E)(b), an amount computed in accordance with the formula
(12) Where any tax, duty, interest or penalty is due under this Act, the Goods and Services Tax Act 1993, the Property Tax Act 1960 or the Stamp Duties Act 1929 by the qualifying person to the Comptroller of Income Tax, the Comptroller of Goods and Services Tax, the Comptroller of Property Tax or the Commissioner of Stamp Duties, the amount of cash payout made by the Comptroller to the qualifying person is reduced by the amount so due.
(13) Any amount reduced under subsection (12) is deemed to be tax, duty, interest or penalty paid by the qualifying person under the relevant Act and must (if it is due under an Act other than this Act) be paid by the Comptroller to the Comptroller of Goods and Services Tax, the Comptroller of Property Tax or the Commissioner of Stamp Duties, as the case may be.
(14) If an election has been made under subsection (1) or (4A) in respect of an amount of expenditure qualifying for a deduction or an allowance under section 14, 14A(1), 14C, 14D(1), 19, 19A(1), (1B), (2) or (10) or 19B(1) or (1AA), the amount of expenditure qualifying for the deduction or allowance under that provision is, despite anything in that provision, reduced by the firstmentioned amount.[37/2014; 34/2016]
(14A) If an election has been made under subsection (1) or (4A) in respect of an amount of expenditure qualifying for a deduction or allowance under section 14A(1A), (1B) or (1BA), 14D(2), 14O, 14P, 14Q, 14T, 19A(2A), (2B) or (2BAA) or 19B(1A), (1B) or (1BAA), the amount of expenditure qualifying for the deduction or allowance under that provision must, despite anything in that provision, not exceed the difference between —(a)
the maximum amount of expenditure in respect of which the deduction or allowance may be allowed or made under that provision for the year of assessment in question; and
(b)
the firstmentioned amount.[37/2014]
(15) Where a qualifying person has received a cash payout under subsection (1) or (4A) —(a)
in respect of any expenditure that is subsequently found not to qualify for the allowance or deduction under the relevant provision of this Act mentioned in subsection (2A) or (4A);
(b)
without having satisfied all of the requirements in this section (excluding the requirements in subsections (10) and (11)) for the payout; or
(c)
that is in excess of that which may be given to it under this section,
the amount of the cash payout or the excess amount of the cash payout (as the case may be) is recoverable by the Comptroller from the qualifying person as a debt due to the Government.
(16) The amount to be repaid under subsection (10), (11), (11A) or (15) is payable at the place stated in the notice served by the Comptroller on the qualifying person within 30 days after the service of the notice.
(17) The Comptroller may, in his or her discretion and subject to such terms and conditions as the Comptroller may impose, extend the time limit within which payment under subsection (16) is to be made.
(18) Sections 86(1) to (6), 87(1) and (2), 89, 90 and 91 apply to the collection and recovery by the Comptroller of the amounts recoverable under subsections (10), (11), (11A) and (15) as they apply to the collection and recovery of tax.
(19) Unless disallowed by the Comptroller under subsection (20), where the Comptroller has recovered any amount under subsection (15)(b) or (c), the amount of the relevant expenditure mentioned in subsection (14) or (14A) is to be increased by an amount determined in accordance with the formula
where A
is the amount recovered by the Comptroller under subsection (15)(b) or (c); and
B
is the percentage in the second column of the following table if the amount recovered is for a cash payout for —
(a)
expenditure incurred;
(b)
equipment acquired under a hire‑purchase agreement signed; or
(c)
intellectual property rights acquired under an IPR instalment agreement signed,
in the period set out opposite in the first column of the table:
When the expenditure was incurred, or the hire‑purchase agreement or IPR instalment agreement was signed
Percentage
In the basis period for the year of assessment 2011 or 2012
30%
In the basis period for the year of assessment 2013, 2014, 2015 or 2016
60%
On or before 31 July 2016 in the basis period for the year of assessment 2017 or 2018
60%
On or after 1 August 2016 in the basis period for the year of assessment 2017 or 2018
40%.
[15/2016]
(20) The Comptroller may disallow the increase under subsection (19) if the Comptroller is satisfied that the qualifying person has —(a)
provided the Comptroller with any information or document, in connection with an election under subsection (1) or (4A), which is false or misleading in a material particular;
(b)
omitted any material particular from any information or document given in connection with an election under subsection (1) or (4A);
(c)
prepared or maintained or authorised the preparation or maintenance of any false books of account or other records or falsified or authorised the falsification of any books of account or records in connection with an election under subsection (1) or (4A); or
(d)
made use of any fraud, art or contrivance whatsoever or authorised the use of such fraud, art or contrivance, in connection with an election under subsection (1) or (4A).
(21) In this section —“cash price” —(a)
in relation to any PIC automation equipment that is the subject of a hire‑purchase agreement, means the price (including capital expenditure incurred on alterations to an existing building incidental to the installation of the equipment but excluding any finance charges) at which the qualifying person in question might have purchased the equipment for cash at the time of the signing of the agreement; or
(b)
in relation to any intellectual property rights that are the subject of an IPR instalment agreement, means the price at which the qualifying person in question might have purchased those rights for cash at the time of the signing of the agreement;
“central hirer” and “central hiring arrangement” have the meanings given by section 14O(6);
“IPR instalment agreement” means an agreement for the purchase of intellectual property rights the payment for which is to be made by instalments;
“local employee”, in relation to a qualifying person who elects for a cash payout under subsection (1) or (4A), means any Singapore citizen or Singapore permanent resident, but excludes —(a)
a shareholder who is also a director of the qualifying person if the qualifying person is a company within the meaning of section 4 of the Companies Act 1967; and
(b)
a partner under a contract for service of the qualifying person if the qualifying person is a partnership;
“local person”, in relation to a qualifying person who elects for a cash payout under subsection (1) or (4A), means any citizen or permanent resident of Singapore, but excludes —(a)
a shareholder who is also a director of the qualifying person if the qualifying person is a company within the meaning of section 4 of the Companies Act 1967; and
(b)
a partner under a contract for service of the qualifying person if the qualifying person is a partnership;
“PIC automation equipment” has the meaning given by section 19A;
“qualifying person” means any company or firm (including a partnership) that —(a)
carries on a trade, profession or business in Singapore; and
(b)
employs and makes contributions to the Central Provident Fund in respect of not less than 3 local employees based on the payroll for —(i)
in the case of the basis period for the year of assessment 2011 or the year of assessment 2012, the last month (or such other month as the Comptroller may determine) of the basis period;
(ii)
in the case of a quarter of the basis period for the year of assessment 2013, the year of assessment 2014 or the year of assessment 2015, the last month of the quarter; and
(iii)
in the case of a quarter of the basis period, for the year of assessment 2016, the year of assessment 2017 or the year of assessment 2018, all 3 months of the quarter;
“quarter”, in relation to a basis period, means a period of 3 months beginning with —(a)
the first month of the basis period;
(b)
the 4th month of the basis period;
(c)
the 7th month of the basis period; or
(d)
the 10th month of the basis period,
or any of several non‑overlapping periods within the basis period as the Comptroller may specify for the qualifying person.
[Act 33 of 2022 wef 04/11/2022]
[37/2014]
[Deleted by Act 33 of 2022 wef 04/11/2022]
(21A) For the purpose of paragraph (b)(ii) and (iii) of the definition of “qualifying person” in subsection (21), the reference to a local employee of a qualifying person based on the qualifying person’s payroll for any part of the basis period for the year of assessment 2014 or a subsequent year of assessment, includes a reference to —(a)
a local person —(i)
who is engaged by the central hirer of a central hiring arrangement for a group of related parties which includes the qualifying person;
(ii)
who is deployed to work solely for the qualifying person in that part of the basis period;
(iii)
who is on the payroll of the central hirer or the qualifying person for that part of the basis period; and
(iv)
whose salary and other remuneration (including training expenditure incurred in respect of the person) for that part of the basis period is borne, directly or indirectly, by the qualifying person; and
(b)
a local person —(i)
who, being an employee of another person (called in this subsection and subsection (21B) the employer), is seconded to the qualifying person under a bona fide commercial arrangement to work solely for the qualifying person in that part of the basis period;
(ii)
who is on the payroll of the employer or the qualifying person for that part of the basis period; and
(iii)
whose salary and other remuneration (including training expenditure incurred in respect of the person) for that part of the basis period is borne, directly or indirectly, by the qualifying person,
and the local person is treated as employed by the qualifying person for the purpose of paragraph (b) of the definition.
[37/2014]
(21B) In determining whether the central hirer or employer referred to in subsection (21A) satisfies the definition of “qualifying person” in subsection (21), the person referred to in subsection (21A)(a) or (b) is not treated as being employed by the central hirer or the employer based on the payroll of the central hirer or employer for the part of the basis period referred to in subsection (21A).[37/2014]
(21C) In subsections (7), (8), (8A), (8B) and (10), a reference to expenditure incurred on the provision of a PIC automation equipment includes a reference to expenditure incurred on the provision of a website for the purposes of a trade, profession or business, and a reference to PIC automation equipment includes a reference to such a website.[37/2014]
(21D) To avoid doubt, where the Comptroller has treated the open‑market price mentioned in section 19B(10E) as the capital expenditure incurred for the acquisition of intellectual property rights, then the reference in this section to selected expenditure, insofar as it relates to that capital expenditure, is a reference to such open‑market price.[34/2016]
(22) The Comptroller may allow an election under subsection (1) or (4A), or both, to be made in respect of 2 or more consecutive quarters of the basis period for the year of assessment 2013, the year of assessment 2014, the year of assessment 2015, the year of assessment 2016, the year of assessment 2017 or the year of assessment 2018, and for that purpose —(a)
the reference in the definition of “qualifying person” in subsection (21) to the last month of a quarter is a reference to the last month of the combined consecutive quarters or, if the election is in respect of the entire basis period, the last month of the basis period or such other month as the Comptroller may determine;
(aa)
the reference in sub‑paragraph (b)(iii) of the definition of “qualifying person” in subsection (21) to all 3 months of the quarter is a reference to the last 3 months of the combined consecutive quarters or such other months as the Comptroller may determine or, if the election is in respect of the entire basis period, the last 3 months of the basis period or such other months as the Comptroller may determine;
(b)
the requirement under subsection (1) or (4A), or both (as the case may be) that the expenditure and cash price for a quarter of a basis period must be at least $400 is applied to all the expenditure or cash price, or both (as the case may be), for the combined consecutive quarters for which the qualifying person intends to make the election; and
(c)
the reference in subsection (2) or (4B), or both (as the case may be), to the end of a quarter is a reference to the end of the combined consecutive quarters.[37I
[37/2014]
本頁資料來源：Singapore Statutes Online (AGC)·整理提供：法律人 LawPlayer· lawplayer.com