What is the Definition of JTC's Value-Added Terms? (JTC's Lease Renewal for Industrial Land)

DEFINITION OF VALUE ADD (VA) TERMS 
Operating Income
  • Sale/ Revenue - Refer to sales derived from goods manufactured or processed by the company only, excluding goods purchased for resale. The value of sales should be based on selling price excluding excise duties if any.
  • Other Operating IncomeOperating income the company derives other than those arising from a sale of manufactured goods.
  • Total Operating Income - Sum of Sale/ Revenue and Other Operating Income

Operating Costs
  • Raw Material, Components and Packaging (including subcontracted out) - Comprise direct input materials for the goods sold, both sourced from Singapore and imported, whether purchased by the company or by the outsourced company for work subcontracted out.
  • Work Subcontracted Out (i) In Singapore (ii) Outside Singapore - Work subcontracted out comprises activities of the company's core business which are performed externally and excludes cost of raw material, components and packaging incurred on behalf of the company Expenses from work subcontracted out are considered to have been incurred in Singapore if activities were conducted within Singapore.
  • Remuneration - Remuneration should pertain only to employees working in Singapore (those employed pertaining to the project). It should exclude those who are on the payroll of the Singapore entity and work outside Singapore, especially in the case of HQ projects, and should take in every component provided for in compensation package which is paid annually, including benefits. Locals refer to Singaporeans and Permanent Residents.
  • Depreciation - Depreciation refers to that for capital assets located in Singapore only
  • Rental - Clear distinction should be made between rental arising from the use of building space and that for land
  • Interest Cost - Interest Cost refers to interest payable to local banks, branches of the foreign bank and other corporations
  • Royalties & Know-how Fees (i) In Singapore (ii) Outside Singapore - Payment which is recurring for ongoing use of intellectual property and transfer of know-how. Does not include one-off lump sum payments made in the event of an acquisition of intellectual property
  • Other Operating Costs (i) In Singapore (ii) Outside Singapore - Examples include freight charges and advertising and promotion costs. Please provide a breakdown in terms of expenses incurred and activities carried out within Singapore or outside Singapore.