Budget 2005

Prime Minister and Minister for Finance, Mr Lee Hsien Loong delivered the 2005 Budget Speech in Parliament on 18 February 2005. This year's budget is set in the background of in improved economy arising from a strong economics growth of 8.4% in Financial Year 2004. As a result, the fiscal position offers a budget surplus in contrast to last year's deficit.

The Budget focused on promoting an economy brimming with opportunities and on fostering a stronger sense of community among Singaporeans.

In view of the economic recovery, the Prime Minister also announced an additional 3% cut in the budget caps for all ministries except the Ministry Of  Defence for Financial Year 2005 on top of the 2% cut last year.

• Business Changes
• Worker
• Central Provident Fund and other changes
• Non-Trade Income
• Capital Allowances and Tax Exemption
• Enhancement Tax Incentives
• The carry-back relief system
• Tax Changes : Corporate Tax
• Tax Changes : Personal Tax
• Tax Changes : Stamp Duty
• Tax Changes : Goods and Services Tax
• Tax Changes : Estate Duty
• Tax Changes : Betting Duty

Companies with S44 balance @ 31.12.2005 can remain under th eimputation system up to 2 years. You can utilised S44 balance to pay franked dividends.

Updated January 2006