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BUDGET 2017

 

BUDGET 2017 TAX CHANGES

 

Corporate Tax 

 

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Corporate income tax rebate:

 

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50% of tax payable for Year of Assessment (YA) 2017, subject to a cap of $25,000, which is raised from $20,000

 

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20% of tax payable for YA 2018, subject to a cap of $10,000.

 

 

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Introducing new Intellectual Property Development Incentive (IDI) scheme which will take effect from 1 July 2017 (administered by EDB). Income earned from commercialising certain IP rights may be taxed at a lower tax rate.

 

 

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Regarding payments for research and development (R&D) cost sharing agreements (CSA) on or after 21.2.2017, taxpayers may opt to claim tax deduction under Section 14D for 75% of the payments made under CSA incurred for qualifying R&D projects without the need for the expenditure details

 

For qualifying M&A deals made from 1 April 2016 to 31 March 2020.

 

 

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For Global Trader Programme, the definition of qualifying transactions and income on or after 21.2.2017 is broadened to facilitate and encourage trading activities in Singapore. However, the substantive requirement to qualify for the incentive will be increased for new or renewal application.

 

Personal Tax 

 

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One-time personal income tax rebate of tax payable for YA 2017, subject to a cap of $500

  


Other changes

 

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GST Tourist Refund Scheme will be withdrawn for tourists who are departing by international cruise from the cruise terminals and whose purchases are made on or after 1 July 2017.

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Proposed carbon tax from 2019.

  

 

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