One-off Personal Income Tax Rebate for Resident Individual Taxpayers - WEF YA 2011

All resident individual taxpayers will be given a one-off personal income tax rebate of 20%, capped at $2,000 per taxpayer, for the tax  payable for Year of Assessment (YA) 2011.

 

Changes to Personal Income Tax Rate Structure for Resident Individual Taxpayers - WEF YA 2012

Refer to IRAS for more details.

 

Tax Deduction of 2.5 times the Amount of Donation

The tax deduction of 2.5 times the amount of donation will be extended for another five years for donations made from 1 Jan 2011 to 31 Dec 2015. Refer to IRAS for more details.

 

Supplementary Retirement Scheme (SRS) - Increase in contribution cap - WEF 1 Sept 2011

Annual SRS contribution cap will be increased to $12,750 for Singaporean/SPR and $29,750 for foreigner.  Refer to IRAS for more details.

 

Higher Central Provident Fund (CPF) Employer's Contribution Rate and Salary Ceiling - WEF 1 Sept 2011

Employer’s compulsory CPF contribution rate will be increased to 16%, and current CPF monthly salary ceiling of $4,500 will be increased to $5,000.

 

Tax benefits for third party contributors of the Voluntary Cash Contributions to Medisave Account - WEF 1 Jan 2011

The voluntary cash contributions by companies (e.g. taxi companies) to Medisave account of self-employed persons (eg. taxi drivers) on or after 1 Jan 2011 will be exempt from tax in the hands of the self-employed persons.  Refer to IRAS for more details.

GST changes to marine related supplies

a) New GST scheme to allow ‘approved marine customers’ to buy or rent goods without having to pay GST.

b) Expanding the scope of zero-rating of repair and maintenance services for ship parts or components under Section 21(3)(p).  Refer to IRAS for more details.
 

GST changes for the biomedical industry

(a) New GST relief for clinical trial materials (CTMs) imported into Singapore.

(b) Enhancement of the Approved Contract Manufacturer and Trader (ACMT) scheme for contract manufacturers.  Refer to IRAS for more details.

 

Zero-rating of specialised storage and other value-added services - WEF 1 Oct 2010

GST-registered businesses may zero-rate the supply of prescribed services performed on high-value collectible items stored in specialised warehouses approved under the scheme.  Refer to IRAS for more details.

 

 

 

New Definition of SMEs: the new definition of SMEs will take effect from 1 April 2011, and will apply to all enterprises across all sectors.  Refer to here for more details.

 

Current Definition	New Definition (WEF 1 April 2011)
Manufacturing enterprises that have fixed asset investments of $15 million and below Non-manufacturing enterprises that have a staff size of 200 and below	An enterprise with an annual sales turnover under $100 million, or An enterprise with an employment size below 200

 

Changes to EP/S Pass Qualifying Salaries: MOM will be increasing the qualifying salaries for the EP and S Pass with effect from 1 July 2011.  Refer to MOM for more details.

 

Pass Type	Current Qualifying Salary	New Qualifying Salary (WEF 1 Jul 2011)
P1 – Employment Pass	$7,000	$8,000
P2 – Employment Pass	$3,500	$4,000
Q1 – Employment Pass	$2,500	$2,800
S Pass	$1,800	$2,000

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One-off Corporate Income Tax (CIT) Rebate or SME Cash Grant - WEF YA 2011

• CIT Rebate is 20% of YA 2011 corporate income tax payable, capped at $10,000.
• SME Cash Grant will be based on 5% of the company’s revenue for YA 2011, subject to a cap of $5,000. To enjoy the SME Cash Grant, companies must have made CPF contributions in YA 2011.  Refer to example here and IRAS for more details.

Enhancement of the Productivity and Innovation Credit (PIC) Scheme  The PIC scheme is simplified and enhanced in 4 main areas (Refer to example here and IRAS for more details):

1. The quantum of tax deduction or allowance is increased to 400% of expenditure, for the first $400,000 spent on each qualifying activity;
2. PIC benefits will be made available to R&D done abroad;
3. Businesses will be allowed to combine the $400,000 expenditure cap per year for YA 2013 to YA 2015 into a new ceiling of $1,200,000 over the three years;
4. A simpler and enhanced cash conversion option where taxpayers can opt to receive, in lieu of tax deduction benefits, a cash payout of 30% of the first $100,000 of qualifying expenditure, up to $30,000.

To help businesses with their cash flow and investment in productivity, the Tax Deferral Option was announced by Minister for Finance on 2 Mar 2011.  Refer to example here and IRAS for more details.

Foreign Tax Credit (FTC) Pooling system - WEF YA 2012

FTC pooling is introduced to give businesses greater flexibility in their claim of FTCs, reduce their Singapore taxes payable on remitted foreign income (“FI”), as well as to simplify tax compliance.

Under the FTC pooling system, FTC is computed on a pooled basis, rather than on a source-by-source and country-by-country basis for each particular stream of income. The amount of FTC to be granted will be based on the lower of the pooled foreign taxes paid on the FI and the pooled Singapore tax payable on such FI. Refer to example here and IRAS for more details.
 

Streamlining of the section 14B and section 14K Tax Deduction Schemes - WEF 1 April 2011

The sections 14B and 14K tax deduction schemes will be merged into a single scheme. Businesses can now submit their applications up to the day of their overseas marketing trip, instead of seven days before the trip.  These changes will apply to applications submitted and approved on or after 1 April 2011.  Refer to IRAS for more details.

 

Enhancement of the concession for enterprise development - enhancing the claim of pre-commencement expenses - WEF YA 2012

To facilitate the starting up of businesses, business will be allowed to claim pre-commencement revenue expenses incurred in the accounting year immediately preceding the accounting year in which they earn the first dollar of trade receipts.  Refer to example here and IRAS for more details.

Facilitate  Employee Equity-Based Remuneration (EEBR) schemes - WEF YA 2012

Company will be allowed tax deduction for the cost incurred to acquire its parent company’s shares through a Special Purpose Vehicle (SPV) for the fulfillment of its EEBR obligations.  Refer to IRAS for more details.

 

Renewal of Tax Exemption Scheme for Income Derived from Structured Products - The existing tax exemption scheme for income derived from structured products will be extended to 31 Mar 2017.  Refer to IRAS for more details.

 

Tax Benefits for Voluntary CPF Medisave Contributions - Eligible companies that make voluntary contributions to Self-employed Persons' (SEPs’) CPF Medisave Accounts from 1 Jan 2011 will be given tax deduction.  Refer to IRAS for more details.  

Enhancement to deductions on donations - The tax deduction of 250% will be extended for another five years for donations made during 1 Jan 2011 to 31 Dec 2015.  Refer to IRAS for more details.  
 

Stamp duty relief for the transfer of assets upon conversion of an existing Company to a Limited Liability Partnership (“LLP”) - Refer to IRAS for more details.

 

Extension of stamp duty remission in excess of $50 to  aborted leases -  Refer to IRAS for more details.

 

Removal of most fixed and nominal stamp duties - Refer to IRAS for more details.

 

Extension of Stamp Duties Remission for Project Finance - Refer to IRAS for more details.

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