Question 2 E Inc (EI) is a company incorporated and tax resident in the US and recently the Board of Directors of EI (the Board) are looking to expand their business operations to Asia. Singapore is being considered one of the desirable locations for setting up the new Asian Headquarter (HQ).

Required: (a) From an international tax perspective, comment and appraise the use of Singapore as the Asian HQ. In other words, why should EI choose Singapore as its Asian HQ? (10 marks)

(b) Based on some online tax research, EIs Board have identified a number of potential tax incentives the Singapore HQ may potentially qualify. For the purpose of this part, illustrate the benefits for EI to obtain Pioneer Service Incentive and Development & Expansion Incentive under the Economic Expansion Incentives (Relief from Income Tax Act) (EEIA). (8 marks)

(c) For the purpose of this part, illustrate the benefits for EI to obtain the investment allowance incentive under the EEIA and indicate under what circumstances EI should consider applying for this incentive. (7 marks)