English (United Kingdom)Simplified Chinese

BUDGET 2016

 

BUDGET 2016 TAX CHANGES

 

Corporate Tax 

 

-

Rebate of 50% of tax payable for Years of Assessment (YsA) 2016 and YA 2017, subject to a cap of $20,000.

 

 

-

PIC scheme will not be available from YA 2019.

 

Cash payout rate reduced from 60% to 40% of qualifying expenditure incurred from 1 August 2016. (Cost still capped at $100,000 for each YA)

 

 

-

Mandatory e-filing for the following:

 

Estimated Chargeable Income, Form C and Form C-S from :-

 

 

YA 2018 if the company’s turnover is more than $10mil in YA 2017

 

 

YA 2019 if the company’s turnover is more than $1mil in YA 2018

 

 

YA 2020 for all companies

 

PIC cash payout application (with effect from 1 August 2016)

 

 

-

Automation Support Package

 

100% Investment Allowance on approved capital expenditure (net of grants)

 

- In addition to the existing capital allowance for plant and machinery.

 

- Approved capital expenditure is capped at $10mil per project.

 

 

-

Merger & acquisition (M&A) scheme

 

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

 

- 25% tax allowance for up to $40m consideration paid per YA.

 

- Stamp duty relief for up to $40m consideration paid per financial year.

 

 

-

Land Intensification Allowance (LIA) scheme

 

- Extended to buildings used by a user or multiple users who are related for one or multiple qualifying trades or business. Applications can be made from 25 March 2016 for expenditure incurred on or after 25 March 2016.

 

 

 

 

-

Intellectual Property Rights (IPR) under Section 19B

 

For qualifying IPR acquired within the basis periods for YA 2017 to YA 2020.

 

- May elect to claim Section 19B allowances over 5, 10 or 15 years.

 

- The Comptroller is empowered to make adjustments if IPR is not transacted at open market value.

 

 

-

Business and IPC Partnership scheme (BIPS)

 

Businesses that send employees to provide free services to IPCs, including secondments.

 

- Additional 150% tax deduction on wages and incidental expenses subject to relevant conditions and the receiving IPCs’ agreement.

 

- Capped at $250,000 per business and $50,000 per IPC.

 

- Applies from 1 July 2016 to 31 December 2018.

 

 

-

Maritime Sector Incentive (MSI)

 

With effect from 25 March 2016, award will cover income derived from operation or leasing of Singapore-registered ships used for exploration or exploitation of:

 

- offshore energy; or

 

- offshore minerals; or

 

- ancillary activities

 

Restriction on counter parties lifted.


-

Pre-commencement Expenses

 

- To be specifically identified and set off against pre-incentive and incentive income.

 

- Unidentifiable expenses to be allocated based on an income ratio (turnover, gross profit, etc).

 

 


Personal Tax 

 

-

Total personal income tax relief will be capped at $80,000 per YA with effect from YA 2018.

-

Home leave passage provided to expatriates, their spouse and children will be taxable in full with effect from YA 2018.

  


 

 

 
<< Start < Prev 1 2 3 4 Next > End >>

Page 2 of 4

Resources

Brochure