| Tax Changes |
Summary |
FAQ/ Related Information |
| 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.
|
- More information on Jobs Credit
- Calculator
- FAQ
|
| 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. |
|
| 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
Related information
- For Companies
- For Sole Proprietors/Self-employed
|
| 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
Allowable business expenses:
- for Companies
- for Sole Proprietors/Self-employed
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. |
|