Extend the Double Tax To support businesses in their internationalisation efforts, the DTD for Sections 14B and for internationalisation scheme will be extended till 31 March 2020. 14K Deduction (“DTD”) Internationalisation scheme [Clauses 13 and 14] Enhance the Land To encourage higher industrial land productivity, the LIA scheme will Section 18C Intensification Allowance be extended to buildings used by a user or multiple users who are [Clause 19] related, for one or more qualifying trades or business. A new criterion (“LIA”) requiring LIA applicants to be related to the qualifying user or users of the building will also be introduced. The change is effective from 25 March 2016. Provide an election for To recognise varying useful lives of IPRs while maintaining a simple Section 19B down period for intellectual and certain tax regime, companies or partnerships may elect for their [Clause 20] Section 19B writing allowance to be granted over a property rights (“IPRs”) down period of 5, 10 or 15 years. Consequential amendment to The change will apply to capital expenditure incurred in respect of Section 37I qualifying IPR acquisitions made during any basis period relating to [Clause 22] YA 2017 to YA 2020. Introduce a specific To ensure that Section 19B writing allowances are granted based Section 19B mechanism for IPR on transacted values that are reflective of the open market value of an [Clause 20]
Extend the Double Tax Deduction (“DTD”) for Internationalisation scheme To support businesses in their internationalisation efforts, the DTD for internationalisation scheme will be extended till 31 March 2020. Sections 14B and 14K [Clauses 13 and 14] Enhance the Land Intensification Allowance (“LIA”) To encourage higher industrial land productivity, the LIA scheme will be extended to buildings used by a user or multiple users who are related, for one or more qualifying trades or business. A new criterion requiring LIA applicants to be related to the qualifying user or users of the building will also be introduced. The change is effective from 25 March 2016. Section 18C [Clause 19] Provide an election for period for intellectual property rights (“IPRs”) To recognise varying useful lives of IPRs while maintaining a simple and certain tax regime, companies or partnerships may elect for their Section 19B writing down allowance to be granted over a period of 5, 10 or 15 years. The change will apply to capital expenditure incurred in respect of qualifying IPR acquisitions made during any basis period relating to YA 2017 to YA 2020. Section 19B [Clause 20] Consequential amendment to Section 37I [Clause 22] Introduce a specific mechanism for IPR To ensure that Section 19B writing down allowances are granted based on transacted values that are reflective of the open market value of an Section 19B [Clause 20]
SUMMARY%20TABLE%20ON%20CHANGES%20TO%20THE%20INCOME%20TAX%20ACT%20(ITA)%20AS%20ANNOUNCED%20IN.docx