31.

Currently, authors, composers and inventors can avail themselves of a tax incentive which exempts from tax 90 per cent of gross royalties received. To further encourage the development of the arts and innovation in Singapore, I have decided to liberalise the current scheme. The changes are as follows:

1. Concession for Authors and Composers
   Currently, the concession is only applicable to income received by authors and composers from publishers in Singapore for the assignmentof or for the right to use the copyright in any literary, dramatic, musical or artistic work. With effect from Year of Assessment 2001, royalty payments received by a composer or an author from recording, film or drama companies in Singapore will also qualify for this incentive.
2. Concession for Inventors and Innovators
   The incentive for inventors and innovators is presently applicable only to income derived by a Singapore citizen or permanent resident for the assignment of or for the rights in any approved inventions or innovations that are manufacturing-related. This incentive will be extended to cover any approved inventions or innovations from the non-manufacturing sectors. The scheme will also be extended to foreigners, provided that the creations of the inventions or innovations are substantially carried out in Singapor

32.

To qualify for the incentive, the inventions or innovations must be protectable. The Economic Development Board will administer the incentive. It will be granted for a period of 5 years from Year of Assessment 2001.