On or about 12 December 2019, the Inland Revenue Board of Singapore (IRAS) has released the third edition of the e-Tax Guide on Pioneer Incentive: Tax Treatment of Gains and Losses from a Separate Trade. It replaces the second edition published on 29 August 2017.
The e-Tax Guide has been updated and re-written as follows:
- to define statutory income in paragraph 3.5;
- to clarify that the statutory income, and not the adjusted profit, of the separate trade of the pioneer enterprise or pioneer service company is deemed to be 5% of the gross revenue for the purpose of section 8(3) of the EEIA by amending paragraph 5.2. The application of this change will take effect from Year of Assessment 2020; and
- to streamline the considerations for waiver of sections 8(2) and 8(3) requirements under paragraph 6.
For more information, please visit the IRAS website.
Source: IRAS website, 12 December 2019.