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3.23 Currently, the Overseas Investment Incentive
allows an approved company to deduct losses arising
from the sale of shares or liquidation of an approved
overseas investment against its statutory income.
To help our companies expand overseas, I have
decided to revamp this incentive to allow an approved
company to defer its income taxes for two years
if its approved overseas investment incurs operating
losses during the first three years of the investment.
This will affect all new investments made from
1 January 2004.
3.24 The details of the tax changes to foster
entrepreneurship are in Annex
D.
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