Section 35
Amendment of section 21E
Section 21E of the principal Act is amended by inserting after subsection (2) the following subsections:
“(2A) For the avoidance of doubt, the income of a pioneer company referred to in subsection (2) shall not include any income from royalty and other income derived from an intellectual property right if it is receivable as consideration for the commercial exploitation of that right.
(2B)
Any income derived from intellectual property right referred to in subsection (2A) is subject to tax under the Income
Tax Act 1967.
(2C)
For the purpose of this section, “intellectual property right” means a right arising from any patent, utility innovation and discovery, copyright, trade mark and service mark, industrial design, layout-design of integrated circuit, secret processes or formulae and know-how, geographical indication and the grant of protection of a plant variety, and other like rights, whether or not registered or registrable.”.
Amendment of section 25