Highlights of the Budget 2003 is especially extracted for you in this section. It is equipped with detailed information concerning your business, enabling you to keep yourself up-to-date to the latest economic news and newly implemented rules and regulations of the Government. The changes are in tune with the ERC’s recommendation report and show the Government’s determination to restructure the economy. It also allows you to find out how your business had been affected by the new Budget announcement. From there, you would then be able to formulate strategic plans to make essential changes and leverage on it to your company’s advantage. Below are the five strategies that the Government has undertaken to keep Singapore’s economy to move ahead.
It includes:
The 2004 budget includes a comprehensive package of measures to create a ‘best for business’ environment that supports creativity and enterprise, and attract talent and investments to Singapore.
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.
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
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Tax Changes |
Summary |
FAQ/ Related Information |
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Jobs Credit |
The Jobs Credit Scheme is introduced to encourage businesses to preserve jobs in the downturn. The first quarterly payment will be paid on 31 Mar 2009, and subsequent ones in Jun, Sep, and Dec 2009. Employers do not need to apply for the Jobs Credit. The Jobs Credit is automatically granted to eligible employers and computed based on CPF contribution data.
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Corporate income tax rate cut |
Corporate income tax rate will be reduced from 18% to 17% to help maintain Singapore's competitiveness. The rate cut will take effect from YA 2010.
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Enhancement of Carry-Back Relief for YA 2009 and YA 2010 |
Unutilised trade losses and capital allowance for YA 2009 and YA2010 can be carried back to set off against Assessable Income of 3 immediately preceding YAs up to a limit of $200,000. |
e- Tax Guide on Enhanced Carry-back Relief System |
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Enhancement of Tax Deduction for Capital Expenditure Incurred on Renovation or Refurbishment Works |
Businesses that incur qualifying Renovation & Refurbishment expenses in the basis periods for YA 2010 and YA 2011 can deduct such expenses in one year instead of over three years, subject to the cap of $150,000 for each relevant three-year period. |
Related information Revised e-Tax Guide (23 Feb 09) on Deduction for Expenditure Incurred on Renovation and Refurbishment Works |
| Extension of the Tax Exemption Scheme for New Start-up Companies to Companies limited by Guarantee | Companies Limited by Guarantee (CLGs) will be allowed to qualify for the tax exemption scheme for new start-up companies effective from YA2010. | Excerpt from Budget Speech Annex Related information Tax Exemption Scheme for New Start-up companies |
| Tax Framework for facilitating Corporate Amalgamations | A new tax framework for qualifying amalgamations will be introduced. | Consultation Paper on Proposed Tax Framework for Corporate Amalgamations Excerpt from Budget Speech Annex |
| Enhancement of Capital Allowance Granted In Respect of Plant or Machinery Acquired for YA2010 and 2011 | Accelerated write-down of capital allowance (CA) will be allowed on plant and machinery acquired in the basis periods for YA 2010 and YA 2011. CA is computed based on 75% of the capital expenditure for the first YA and 25% of the capital expenditure for the second YA. |
Excerpt from Budget Speech Annex |
| Accelerated Writing - Down Allowance for Acquisition of Intellectual Property for Media & Digital Entertainment Content | The writing-down period for writing-down allowance under section 19B will be reduced from 5 years to 2 years in respect of acquisition cost of intellectual property rights for Media & Digital Entertainment (MDE) content incurred by an approved MDE company or partnership, subject to conditions. |
Excerpt from Budget Speech Annex |
| Extension and Enhancement of Withholding Tax Exemption for Maritime Industry | Under the Block Transfer Scheme (BTS), WHT exemption can be granted in respect of interest payable on a loan taken by a shipping enterprise from a lender outside Singapore to acquire a Singapore-flagged ship. This WHT exemption is for ships registered with the Singapore Registry of Ships (SRS) on any date from 1 Jan 2009 to 31 Dec 2013. |
Excerpt from Budget Speech Annex |
| Enhancement of Fund Management Incentive Scheme | Existing fund management incentive schemes under sections 13C, 13CA and 13R will be enhanced by introducing an enhanced tier. The enhanced tier is open to fund vehicles in the form of companies, trusts and limited partnerships. |
Excerpt from Budget Speech Annex |
| Enhancement of the List of Specified Income and Designated Investment for Certain Tax Incentive Schemes | The tax exemption schemes for foreign investors and qualifying resident funds, tax incentive schemes for approved trustee companies and financial sector incentive companies are enhanced by expanding the list of specified income and designated investment. |
Excerpt from Budget Speech Annex |
| Review and Enhancement to Current FSI-HQ Scheme | A series of enhancements will be made to the FSI-HQ scheme. | Excerpt from Budget Speech Annex |
| Extension and Enhancement for the Commodity Derivatives Trading(CDT) Scheme | A series of enhancements will be made to the CDT scheme. | Excerpt from Budget Speech Annex |
| Extension of Tax Deduction for Provisions Made under MAS Notices | The tax deduction for collective impairment provisions made by banks, merchant banks or finance companies under MAS Notices 612, 811 and 1005 will be extended for a further 3 years, subject to conditions. | Excerpt from Budget Speech Annex |
| Tax Exemption of Foreign - Sourced Income Received in Singapore | Resident non-individuals and resident partners of partnerships in Singapore will enjoy tax exemption on all foreign-sourced income that was earned/ accrued on or before 21 Jan 2009 and remitted to Singapore during the period from 22 Jan 2009 to 21 Jan 2010 (both dates inclusive). |
Excerpt from Budget Speech Annex Related Information Exemption of foreign sourced income for companies |
| Enhancement of tax deduction on donation | Tax deduction will be increased for donations made in 2009 to Institutions of a Public Character and other approved recipients (such as approved museums, prescribed schools etc.) from double to 2.5 times. |
Extracted from IRAS
Updated Aug 2009
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Tax Changes |
Summary |
FAQ/Related Information |
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Changes to the GST treatment of aircraft and aircraft related supplies |
The following GST changes will take effect from 1 Apr 2009:
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Changes to the GST treatment of aircraft and aircraft related supplies |
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Suspension of GST on goods temporarily removed from Zero GST or Licensed Warehouse for Auctions and Exhibitions |
With effect from 1 Apr 2009, GST will be suspended on the following:
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Recovery of GST for qualifying funds |
Qualifying funds managed by prescribed fund managers will be allowed to recover a substantial portion of the GST incurred on prescribed expenses incurred from 22 Jan 2009 to 31 Mar 2014 (both dates inclusive).
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Extracted from IRAS
Updated Aug 2009
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Tax Changes |
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FAQ/Related Information |
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Personal Income Tax Rebate for Resident Individuals |
All resident individual taxpayer will be given a one-off income tax rebate of 20%, up to a cap of $2,000, for the tax payable for Year of Assessment (YA) 2009. |
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Flexible GIRO arrangements |
Taxpayers* who have lost their jobs in 2008 or 2009, for example due to retrenchment, can approach IRAS to re-work their GIRO instalment plans (up to a maximum of 24- month instalments) for tax assessed in YA 2009. Please call 1800 356 8300 for assistance. |
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Removal of Income Tax on Net Annual Value |
Income tax on net annual value of all residential properties will be removed from YA2010. |
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Tax Exemption of Foreign - Sourced Income Received in Singapore |
Tax exemption will be granted to all foreign-sourced income earned/ accrued outside Singapore on or before 21 Jan 2009 to resident non-individuals and resident partners of partnerships in Singapore and received in Singapore during the period from 22 Jan 2009 to 21 Jan 2010. |
Extract from the Budget Speech Annex |
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Enhancement of tax deduction on donation |
Tax deduction will be increased for donations made in 2009 to Institutions of a Public Character and other approved recipients (such as approved museums, prescribed schools etc.) from double to 2.5 times. |
Extracted from IRAS
Updated Aug 2009
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Tax Changes |
Summary |
FAQ/ Related Information |
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40% Property Tax Rebate for Owner-Occupied Residential Properties |
Owner-occupied residential properties will be granted a rebate of 40% on the property tax payable (after existing rebates) for calendar year 2009. |
e-Tax Guide on Property Tax Rebate ( Residential)
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40% Property Tax Rebate for Commercial and Industrial Properties |
Owners of commercial and industrial properties will be granted a rebate of 40% on the property tax payable for calendar year 2009. |
e-Tax Guide on Property Tax Rebate (Commercial and Industrial)
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Property Tax Deferral for Land Approved For Development for Businesses |
Business owners may apply for property tax deferral for land approved for development if they satisfy the eligibility criteria. The period of the property tax deferral shall be from 22 Jan 2009 to 21 Jan 2011. |
e-Tax Guide on Property Tax Deferral |
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Deferment of Increase in Assessment Rate for Hotel Rooms |
The increase in rate from 20% to 25% of gross room receipts with effect from 1 January 2009 will be deferred for 1 year. The rate for 2009 will remain at 20% of gross room receipts.
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Extracted from IRAS
Updated Aug 2009