Bill tabled to extend period during which approvals may be given for certain incentive schemes under Economic Expansion Incentives (Relief from Income Tax) Act 1967

30 October 2023

On 2 October 2023, the Economic Expansion Incentives (Relief from Income Tax) (Amendment) Bill (“Bill”) was tabled in Parliament. Among other things, the Bill seeks to make the following changes to the Economic Expansion Incentives (Relief from Income Tax) Act 1967 (“Act”):

• The period during which approvals may be given in respect of certain incentive schemes under the Act, including for pioneer service companies, development and expansion companies, pioneer enterprises, approval for approved foreign loans and investment allowances, will be extended from 31 December 2023 to 31 December 2028.
• The Bill will sunset the existing Approved Royalty Incentive (“ARI”) scheme under sections 37 to 40 (where approvals are tied to individual agreements) and introduce in its place a new ARI scheme that provides for the approval of an activity of a company, and tax reliefs for royalties, technical assistance fees or contributions to research and development costs under any agreement or arrangement that the company enters into for the purposes of carrying on such an activity.
• Part 9 of the Act relating to the Integrated Investment Allowance will be deleted as it is spent. The last date on which the Minister for Trade and Industry could grant an approval under Part 9 was 31 December 2022.
• The powers of the Minister for Finance and the Minister for Trade and Industry in their administration of various incentive schemes under the Act will be enhanced.

The Bill also makes consequential amendments to the Income Tax Act 1947.

Reference materials

The Economic Expansion Incentives (Relief from Income Tax) (Amendment) Bill is available on Singapore Statutes Online sso.agc.gov.sg.