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At a glance
Introduction
This Governments not for turning 3
Business tax
Corporate income tax rate Granting a corporate income tax rebate from YA 2013 to YA 2015 Liberalising the scope of PIC automation equipment Enhancing the PIC scheme to include IP in-licensing PIC Bonus Expiry and withdrawal of certain tax schemes Rationalising the Start-Up Tax Exemption (SUTE) scheme Extension of Maritime Sector Incentive-Approved International Shipping Enterprise (MSI-AIS) award Extending and enhancing various financial services tax incentives Extending and enhancing the Financial Sector Incentive scheme Extending and refining the QDS and QDS+ incentive schemes Enhancing the tax exemption scheme for the underwriting of offshore specialised insurance risks Extending and enhancing the tax incentive scheme for offshore insurance broking business 7 9 10 12 14 16 18 20 21 22 24 26 27
At a glance
Miscellaneous
Wage Credit Scheme Foreign worker policies Property tax Land Productivity Grant GST Voucher Special Payment Changes to the taxation of tobacco Changes to the vehicle tax regime and administration 41 44 46 49 49 49 50
52 53
Introduction
This Governments not for turning
Showing resolve
The ladys not for turning, said Margaret Thatcher, then the UKs Prime Minister, in her speech to the Conservative Party Conference on 10 October 1980. Thatchers firm refusal to perform a U-turn in response to opposition to her liberalisation of the economy rang clear in my mind as Budget 2013 struck me with a sense of dj vu. For business, the last few Budgets have all been about productivity. Incentives to promote productivity have been key policy tools, as has been the weaning off of foreign low-cost labour. The transition to become a globally competitive company has hardly been smooth-sailing for most businesses concerned, or Singapore overall. With Singapore undergoing an economic and social change, there have been challenges, which are only to be expected. Yet Budget 2013 forged ahead with what was deemed necessary to restructure Singapores economy for a sustainable future. Notwithstanding high business costs, the Government did not offer many immediate sweeteners to cushion the impact. Instead, it is more of the same, with increasing productivity and innovation seen as long-term solutions to high costs. SMEs that were hoping for some respite from restrictions on low-cost foreign labour are likely to be disappointed at least for now.
required and money will automatically be paid to qualifying companies. SMEs that have found the rules and process around incentives a barrier will have much to rejoice. However, the WCS does not provide immediate relief to wage costs; it co-funds wage increases. Also, the focus is on ensuring that Singaporeans will continue to be the key beneficiary of productivity gains. Considering the current debates around population policies, this is hardly surprising. Budget 2013 also saw the Government taking a more targeted and sectoral approach towards productivity. The Government plans to fund Collaborative Industry Projects in seven new priority industries to develop industry-wide productivity solutions. This clearly is looking to transform an entire industry on a level that will far outweigh the benefits of productivity gains in any one company. An innocuous but significant announcement in the Budget is the introduction of the Land Productivity Grant, which will support companies that intensify their use of land locally, as well as those that relocate some operations offshore while retaining core functions in Singapore. A familiar concept to many MNCs, exporting low-cost jobs is not so frequently supported by governments. Granted that there have been other tax incentives that encourage productivity in a similar vein, such as the Integrated Investment Allowance scheme that was introduced in Budget 2012, to my knowledge it is the first time that the Government has publicly announced its intent to use cash grants for such purposes. Whether the cash grants are enough to help SMEs make this leap remains to be seen.
Business tax
Business tax
Proposed
The Minister did not propose a reduction in the corporate income tax rate. The headline tax rate stays at 17% and the partial tax exemption threshold remains as before.
Points of view
The corporate income tax rate has remained at 17% since YA 2010. At 17%, Singapores corporate income tax rate continues to be one of the lowest in the world. This rate is only 0.5% higher than the current Hong Kong corporate tax rate of 16.5% and 4.5% higher than the corporate tax rate of 12.5% in Ireland for trading income. After taking into account the partial tax exemption, the effective tax rate of a company in Singapore with S$500,000 of normal chargeable income will be only 11.8%. It is further reduced to 8.27% if we were to take into account the corporate income tax rebate announced for YA 2013 to YA 2015. This is notably lower than the tax rate of 16.5% in Hong Kong and 12.5% in Ireland. Without taking into account the corporate income tax rebate, only with normal chargeable income exceeding S$5.2m and S$577,000 would a company in Singapore be paying tax at an effective rate higher than 16.5% and 12.5% respectively. After taking into account the corporate income tax rebate for YA 2013 to YA 2015, Singapores effective tax rate would be higher than 16.5% and 12.5% only if the normal chargeable income exceeds S$11.2m and S$1.24m respectively. While Singapores headline tax rate remains at 17%, it is clear that the partial tax exemption and various tax incentives, including the PIC, will reduce the effective tax rate to well below 17%. A further enhancement to benefit SMEs that can be considered in the future is to increase the threshold for partial tax exemption. The 3% difference between corporate income tax rate of 17% and the top marginal personal income tax rate of 20% continues to exist. Clearly, self-employed individuals, depending on their level of income, should give serious consideration to corporatising their businesses in view of the lower corporate income tax rate and partial tax exemption. The additional costs of operating a company, e.g., audit and secretarial fees, will have to be taken into account before such a decision is made. Lower tax rates are available under the various tax incentive regimes. Qualifying companies may enjoy concessionary tax rates ranging from 0% to 15%, depending on the types of incentive awarded. The attractiveness of applying for tax incentives where the concessionary tax rate is above 10% continues to be challenged.
Business tax
Country United States Australia India Philippines New Zealand Japan China Indonesia Malaysia Vietnam United Kingdom Korea Thailand Singapore Taiwan Hong Kong Germany Ireland 0 5 10 12.5 (j) 15 20 25 30 15 17 (a) 17 (a)(i) 16.5 22 (a) 20 (a)(h) 28 25.5 (a) 25 25 (a)(d) 25(a) 25 (e)(f) 24 (a)(g) 30 30 (b) 30 (c) 35 (a)
35
40 Percentage
Notes: (a) Lower rates or partial tax exemption are applicable for lower income bands or companies with smaller paid-up capital / turnover (b) 40% for non-resident companies (c) With certain exceptions, a 2% Minimum Corporate Income Tax (MCIT) may be imposed on domestic and resident foreign corporations beginning with the fourth tax year following the year of commencement of business operations; MCIT must be paid if the corporation has zero or negative taxable income or the MCIT is greater than the regular corporate income tax (d) Listed companies meeting certain conditions may enjoy lower rates (e) Proposed to be reduced to 23% with effect from 1 January 2014 (f) A higher rate is applicable for petroleum and mining companies (g) To be reduced to 23% from 1 April 2013 (h) Applicable only for the accounting period commencing on or after 1 January 2013 and 1 January 2014 (i) An alternative minimum tax (AMT) of 12% is payable on base income of more than NT$500,000, and if the AMT is higher than the regular income tax (j) A higher rate is applicable for certain non-trading income and other activities The above rates are the top corporate tax rates, excluding dividend withholding tax, surcharges, trade tax, or other state or local taxes, where applicable.
8
Business tax
Proposed
To relieve business costs, a 30% corporate income tax rebate capped at S$30,000 per YA, will be granted to companies for three years from YA 2013 to YA 2015.
Points of view
he IRAS has clarified that: T The corporate income tax rebate will be given to all companies including registered business trusts regardless of tax residency status and eligibility for concessionary corporate tax rates, except income of a non-resident company that is subject to final WHT; Companies do not need to apply for the corporate income tax rebate. The IRAS will compute the amount of corporate income tax rebate when it assesses the companies income tax returns; The corporate income tax rebate will be computed on the tax payable after deducting tax setoffs such as foreign tax credit and unilateral tax credit; and Where a company has chargeable income taxed at both concessionary and normal tax rates, the corporate income tax rebate will be computed based on the aggregate gross tax payable for both concessionary and normal income. The corporate income tax rebate will provide some relief to companies as they face increasing business cost pressures. Unlike the 5% SME cash grant for YA 2011 and YA 2012 which was computed on revenue, the rebate is to be computed on the tax payable. Therefore, companies that are loss making will not be able to benefit from the tax rebate from YA 2013 to YA 2015. Companies may consider deferring capital allowances claims or planning their group loss relief in YA 2013 to YA 2015 to maximise the corporate income tax rebate.
Business tax
Proposed
The Minister will make it easier and allow more equipment to qualify for PIC benefits, through the following changes: For equipment that is not on the prescribed list, the IRAS will assess and grant approval for PIC benefits based on the following liberalised conditions: The equipment automates or mechanises, whether in whole or in part, the work processes, whether core or non-core of the business; and The equipment enhances productivity of the business (for example, in terms of reduced man hours, more output or improved work processes). Equipment that is a basic tool will be allowed, so long as: It increases productivity compared to the existing equipment used in the business; or It has not been used in the business before.
A basic tool is one which is necessary for carrying out the trade or business, and is commonly used in the industry. Examples of basic tools used in the F&B industry include microwave ovens and blenders and those used in the laundry business include washing machines and dryers.
10
Business tax
The term automation equipment is also changed to IT and automation equipment as PIC already supports IT-related software besides automation equipment. The prescribed equipment list will be updated regularly to take into account feedback from businesses. The above changes will take effect from YA 2013. The IRAS released the updated equipment list on their website on 26 February 2013.
Points of view
he liberalisation now removes the requirement for automation equipment which are basic tools to have T more advanced/superior technology than existing automation equipment used in performing a similar function in the business, so long as companies can demonstrate that the automation equipment leads to increased productivity compared to the existing equipment used in the business. This is in line with the Governments push for productivity growth and should result in more automation equipment qualifying for the PIC scheme. he current criteria require the equipment to automate the core work processes as well as enhance the T productivity of the principal trade of the business. The proposed liberalisation now removes the need to distinguish between core versus non-core work processes as well as principal versus non-principal trade. As such, automation equipment used in carrying out ancillary activities to support the main business activities should be eligible to qualify under the proposed liberalised criteria. he latest list of prescribed automation equipment was issued in May 2012. It would be helpful if the list T is updated at designated regular intervals to provide certainty and to minimise the administrative burden on taxpayers in seeking separate approvals. urrently, taxpayers may still apply for approval in respect of non-prescribed automation equipment C even after the capital expenditure has been incurred. This treatment should continue to apply under the proposed liberalisation. n addition, the IRAS has indicated in its website that the processing time of such case-by-case I applications will be reduced to three weeks instead of the current two months. he application has to be submitted to the IRAS at least two months before the income tax filing T due date.
11
Business tax
Proposed
The PIC scheme will be enhanced to include IP in-licensing as a qualifying activity. This enhancement is aimed at helping businesses, especially SMEs, that license IP rights rather than acquire the IP for innovation and productivity improvements. The enhancement extends the qualifying activities under Acquisition of IP to include IP in-licensing. The cost of IP acquisition and in-licensing of IP will be eligible for enhanced allowance/deductions under the PIC scheme, up to a combined cap of S$400,000 per YA. Similarly, cost of IP acquisition and in-licensing of IP will qualify for a cash payout under the PIC scheme, subject to conditions. This change will take effect for IP in-licensing costs incurred from YA 2013 to YA 2015. The current PIC qualifying activity of Acquisition of IP will be renamed to Acquisition and In-Licensing of IP to reflect the change. The IRAS will release further details by April 2013.
Points of view
ased on clarification by the MoF, IP in-licensing is not intended to cover franchising arrangements. B urrently, under the PIC scheme, businesses may claim PIC enhanced allowances on expenditure C incurred on acquisition of automation equipment and PIC enhanced deductions on expenditure incurred on leasing of automation equipment. The proposed enhancement to include IP in-licensing as a qualifying activity would better align the PIC scheme for IP with that for automation equipment. he enhanced WDA for acquisition of IP applies to eight categories of IP rights specified under s19B T of the ITA, namely patent, copyright, trademark, registered design, geographical indication, lay-out design of integrated circuit, trade secret or information that has commercial value, or the grant of protection of a plant variety. We await further clarification on the types of payment includable under IP in-licensing and whether IP in-licensing would similarly be restricted to the same eight categories of IP rights under s19B. P in-licensing payments may take the form of a lump sum upfront payment instead of recurring I annual payments, or an initial payment in addition to annual license payments. We hope that the definition of IP in-licensing will include such lump sum payments and initial payments for the right to use IP. It would be beneficial to businesses if the definition of IP in-licensing is more widely defined to cover such costs.
12
Business tax
nhanced WDA for IP acquisition applies only if the legal and economic ownership of the IP is E acquired. Even where specific approval for WDA under s19B is granted for the acquisition of economic interest (but not legal ownership) of IP, such IP does not qualify for PIC. It would be welcome if these restrictions were relaxed at the same time as including IP in-licensing under the PIC scheme. imilar to the existing PIC scheme for leasing of automation equipment, it is likely that the proposed S PIC deduction for IP in-licensing will only be granted to the licensee who uses the IP for his own business and not for sub-license to another person. S19B of the ITA contains certain anti-avoidance provisions for IP transfers between related parties under certain circumstances. We would expect anti-avoidance provisions to be also included for the proposed IP in-licensing.
13
Business tax
PIC Bonus
Current
There is no such scheme currently.
Proposed
To encourage businesses to take advantage of the PIC scheme, the Government will introduce a PIC Bonus. Businesses that invest a minimum of S$5,000 per YA in PIC qualifying expenditure will receive a dollarfor-dollar matching cash bonus. The bonus will be up to S$15,000 over three YAs, YA 2013 to YA 2015. This PIC Bonus is paid over and above existing PIC benefits. The S$5,000 minimum qualifying expenditure encourages small businesses to undertake meaningful productivity investments.
Points of view
he PIC Bonus is given in addition to the existing 400% tax deductions/allowances and/or cash T conversion option (PIC cash payout) under the PIC scheme. This is in line with the Governments intention to encourage and reward innovation and productivity. he IRAS has clarified that: T he PIC Bonus is applicable to sole-proprietorships, partnerships and companies that have: T ncurred at least S$5,000 in PIC qualifying expenditure (net of grant or subsidy) during the I basis period for the YA in which a PIC Bonus is claimed; ctive business operations in Singapore; and A t least three local employees (Singapore citizens or permanent residents) with CPF contributions, A excluding sole-proprietors, partners under contract for service and shareholders who are directors of the company. he PIC Bonus is not available to town councils, clubs and associations since it is to help business T enterprises, especially SMEs, with cash-flow needs for their expenditure on innovation and productivity initiatives. usinesses do not need to apply for the PIC Bonus separately. They can claim the PIC Bonus with B their PIC cash payout applications or income tax returns. here the 400% tax deductions/allowances are claimed in the income tax return, businesses can W expect to receive the PIC Bonus within three months from the date of receipt of the income tax return by the IRAS, provided all requisite information is furnished with the said return. The IRAS
14
Business tax
will start disbursing the PIC Bonus from October 2013. Where the PIC cash payout is claimed (this can be made up to four times a year), the IRAS will generally approve the cash payout claim within three months from the date of receipt of the application, provided all requisite information is submitted at the time of application. Those YA 2013 and YA 2014 PIC cash payout applications which have been approved by the IRAS prior to Budget 2013 will also qualify for the PIC Bonus. The IRAS will start disbursing the PIC Bonus for these cases from July 2013. The PIC Bonus is taxable. Currently, the PIC cash payout allows businesses to convert PIC qualifying expenditure of up to S$100,000 for each of the YA 2013 to YA 2015 into cash at the rate of 60%, subject to a minimum expenditure of S$400 for each option exercised. Taking both the PIC Bonus and the PIC cash payout into consideration, businesses could effectively receive cash at 160% on the first S$5,000 of PIC qualifying expenditure for each YA from YA 2013 to YA 2015. The PIC Bonus will help to encourage small businesses to undertake productivity initiatives. For businesses to reap the full benefits, it will be even better if the Government could exempt the PIC Bonus from tax.
15
Business tax
Further tax deduction scheme for expenses incurred in relocation or recruitment of overseas talent
Approved insurers and reinsurers can enjoy a 5% concessionary tax rate on qualifying income derived from offshore Islamic insurance (takaful) and reinsurance (retakaful) businesses.
The Government has assessed that the objective of the scheme no longer merits a tax incentive. As such, the scheme will be allowed to expire on 31 March 2013. Insurers who conduct offshore Islamic insurance and reinsurance activities may apply to the MAS for the existing 10% Offshore Insurance Business Scheme. The objective of the scheme is assessed to no longer merit a tax incentive. As such, it will be allowed to expire on 31 March 2013. With broad-based changes to the tax regime for foreign-sourced income in past years, the scheme is assessed to be no longer relevant. The OEI scheme is withdrawn from 25 February 2013. The ACT scheme is assessed to no longer merit a tax incentive. As such, it is withdrawn from 25 February 2013.
This scheme grants tax exemption on qualifying locally-sourced investment income and foreignsourced income to family-owned investment holding companies. Under the OEI scheme, an approved company is granted tax exemption on qualifying income from approved overseas investments or projects for a maximum period of ten years. The ACT scheme was introduced to position Singapore as an electronic commerce hub, and grants various income tax concessions.
16
Business tax
Points of view
Currently, a tax deduction is given for upfront land premiums paid in respect of a designated lease for the construction or use of an industrial building. With the phasing out of industrial building allowance in 2010, it has been widely anticipated that this tax deduction scheme may be phased out as well. Taxpayers who incur such upfront land premiums on leases granted on or after 28 February 2013 will no longer be able to claim a tax deduction on such expenditure. Such taxpayers will now be worse off tax-wise as compared to those who pay the land rental over the lease period, as the latter is tax deductible. Although JTC has recently tightened its rule on the option to pay monthly land rental, this option remains open to lessees who are industrialists. Therefore, taxpayers who are industrialists and who were entitled to a tax deduction for upfront land premiums may need to reassess, as it may now make more sense from a tax perspective to opt for land rental payment. With the tightening of the foreign worker policies, it is not surprising that the further tax deduction scheme for expenses incurred in relocation or recruitment of overseas talent will be phased out. This is also to align with the Governments intention to reduce reliance on foreign labour. The tax incentive scheme for Family-Owned Investment Holding Companies (FIHC) was introduced in 2008 to align the tax treatment of qualifying locally-sourced investment income and foreign-sourced income derived by individuals regardless of whether such income is received directly by individuals or through a qualifying FIHC owned by individuals who are members of the same family. However, as the FIHC scheme does not give more tax certainty with regard to gains on disposal of investments, due to the need to meet qualifying conditions, we believe few have found this incentive attractive.
17
Business tax
Proposed
The SUTE scheme will no longer be available to the following companies: roperty developer - a company that buys or leases land and arranges for a building to be built on P the land in order to lease, manage or sell the building; and Investment holding company - a company whose principal activity is that of investment holding. It derives only investment income such as rental, dividend, or interest income. Investment holding companies derive only passive incomes, while the real estate industry typically incorporates a new company for each new property development. The SUTE scheme for encouraging entrepreneurship is not intended for such companies. Property developers and investment holding companies will still be able to enjoy the partial tax exemption generally available to all companies. This change takes effect for start-ups incorporated from 26 February 2013.
18
Business tax
Points of view
The proposed exclusion of property developers and investment holding companies from the SUTE scheme reinforces the Governments intention to incentivise genuine entrepreneurship. It has been clarified by the MoF that s10E companies, i.e., companies which are in the business of making investments, are not within the ambit of the proposed exclusion. Such companies will continue to enjoy the benefits under the SUTE scheme. Companies which do not fall within the above exclusion may nonetheless fail to enjoy the SUTE if they are shell companies set up to take advantage of the SUTE scheme.
19
Business tax
Proposed
To promote the growth of our maritime industry, the maximum tenure of the MSI-AIS award will be increased from 30 years to 40 years. Companies can be granted the MSI-AIS award for a 10-year period, with the possibility of renewal up to a maximum tenure of 40 years, subject to conditions.
Points of view
he above extension is in line with the Governments initiatives to enhance and promote Singapore T as an International Maritime Centre and make it more attractive for international ship owners and operators to base their commercial shipping operations in Singapore. he initial players of this award, introduced in 1991, would be in their last tranche of the award T based on the 30-year tenure. With this proposed extension, these initial players may enjoy tax exemption for 10 more years, subject to conditions. Hence, this provides greater tax certainty to these pioneer companies. he current MSI-AIS award includes other tax benefits, such as automatic exemption from WHT on T interest payments made on qualifying loans to finance the purchase or construction of ships and tax exemption on gains from disposal of vessels under construction (including new building contracts). These tax benefits are subject to the sunset clauses and other conditions under the respective concessions. There appear to be no changes to the time line for these benefits. xisting conditions such as having a good track record, incremental business spending in Singapore, E headcount and size of the fleet being managed on an incremental basis are likely to continue to be imposed by the Maritime and Port Authority of Singapore in reviewing applications for each extension of the MSI-AIS award. he existing sunset clause of 31 May 2016 for the application of the five-year MSI-AIS (Entry) award T would seem to remain unchanged.
20
Business tax
Proposed
These will be extended and, in some cases, refined and/or enhanced as part of Singapores efforts to continue to enhance its status as a major financial centre. Table 1 below provides a snapshot of the changes announced. Table 1: Extension of tax incentive schemes due to expire in 2013
Tax incentive scheme Financial Sector Incentive (FSI) FSI Islamic Finance Qualifying Debt Securities (QDS) and QDS Plus Primary dealers trading in Singapore Government securities Approved Special Purpose Vehicle Offshore Insurance Broking Business Expiry 31 December 2013 31 March 2013 31 December 2013 Extension 31 December 2018 Not extended 31 December 2018 Changes Refinements are at page 22 Subsumed under FSI- Standard Tier Rationalisation and refinements are at page 24 None Release of further details by the MAS By end June 2013 By end June 2013 By end June 2013
31 December 2013
31 December 2018
Not applicable
Points of view
renewal period of five years is now the norm for tax incentives as this facilitates a regular review A of each incentive with the view to making enhancements where appropriate to ensure that the incentive remains relevant to the industry or beneficial for the economy. It remains to be seen whether existing conditions will be modified or clarified when the MAS release details in the next few months.
21
Business tax
The FSI Scheme would expire on 31 December 2013. The FSI-IF award would expire on 31 March 2013.
Proposed
To continue the growth of financial sector activities in Singapore, the FSI scheme (excluding the FSI-IF award) will be extended for five years to 31 December 2018. The FSI scheme will be refined as follows: he five separate FSI-DM sub-awards will be merged to form a single FSI-DM award; T The FSI-BM and FSI-EM awards will be merged to form a single FSI-Capital Markets (FSI-CM) award. Debt securities substantially arranged by recipients of the FSI-CM award and FSI-ST award will qualify as Qualifying Debt Securities (QDS), subject to the conditions under the QDS scheme; WHT exemption will be granted automatically to FSI-HQ award recipients on interest payments made during the period of their FSI-HQ award for qualifying loans. This will take effect from 25 February 2013;
22
Business tax
The range of incentivised activities and financial instruments will be broadened for the FSI-ST, FSI-CM and FSI-CFS awards; and The FSI-IF award will be allowed to expire on 31 March 2013. The existing qualifying Islamic Finance activities will be incentivised under the FSI-ST award. Unless otherwise specified, the changes will take effect from 1 January 2014. Existing award recipients can continue with their awards until the end of their award tenures, provided the award recipients continue to fulfill the conditions under the respective awards. The MAS will release further details by 30 June 2013.
Points of view
he Governments response to the financial industrys call for a more streamlined and an easier T to administer incentive platform is much welcomed. Rather than slicing activities into distinctive product types, the proposed changes to approve and administer the FSI awards by broad business units will be more aligned with the industry. The extension of the FSI scheme to 31 December 2018 provides certainty to new applicants as well as existing FSI companies who are able to meet the conditions for renewal of this incentive. he qualifying conditions for the proposed merged FSI-DM and FSI-CM awards will likely include T minimum professional headcount for the qualifying activities. There may be changes to the existing qualifying conditions and details will be released by the MAS by 30 June 2013. urrently, debt securities which are arranged by FSI companies with the FSI-BM award qualify as C QDS. The proposed enhancement to extend the QDS scheme to debt securities arranged by FSI companies with either the FSI-ST or FSI-BM awards is a positive move and should encourage more banks to hire professionals with bond arrangement and distribution expertise in order to satisfy the substantially arranged in Singapore condition. he proposed automatic WHT exemption available to FSI-HQ companies on interest payments on T qualifying loans will be welcomed by FSI-HQ companies as it will reduce their administrative burden and eliminate the time lag to apply for the WHT exemption before making interest payments for each qualifying loan. t is hoped that an exclusion approach will be adopted when the range of incentivised activities I and financial instruments for the FSI-ST, FSI-CM and FSI-CFS awards are broadened. An exclusion approach minimises potential uncertainty/ambuiguity on the types of income qualifying for the concessionary tax rates. s the existing qualifying Islamic Finance activities will be incentivised under the FSI-ST award A from 1 April 2013, it will be necessary to provide deferred tax at the higher 12% rate on temporary differences relating to FSI-IF activities which reverse after 1 April 2013.
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Business tax
Proposed
To further promote Singapores debt market, the QDS and the QDS+ schemes will be extended for five years to 31 December 2018. For debt securities issued during the period of 1 January 2014 to 31 December 2018, the requirement that the QDS has to be substantially arranged in Singapore will be rationalised to ease compliance for issuers. The QDS+ scheme will be refined to allow debt securities with standard early termination clauses to qualify for the QDS+ scheme, subject to conditions. The other existing conditions of the schemes remain unchanged. The MAS will release further details by the end of June 2013.
24
Business tax
Points of view
The QDS and QDS+ schemes are instrumental to the development of the corporate debt market in Singapore. The extension of the schemes for another five years is indicative of the relevance and effectiveness of the schemes in enhancing the development of the Singapore debt market. We are aware that the MAS has obtained feedback from industry players in the course of rationalising the substantially arranged by financial institutions in Singapore condition. The MAS has confirmed that with effect from 1 January 2014, the substantially arranged by financial institutions in Singapore condition will be rationalised as follows: Where debt securities are issued under a programme set up during the period from 1 January 2014 to 31 December 2018, the programme must be wholly arranged by FSI-CM2 or FSI-ST award holders (hereinafter termed qualifying programme). If a new issuer joins a qualifying programme, the participation of the new issuer must be wholly arranged by FSI-CM or FSI-ST award holders. If a debt tranche is not issued under a qualifying programme, more than half of the debt issued in that tranche must be distributed by FSI-CM or FSI-ST award holders. Where debt securities are issued during the period from 1 January 2014 to 31 December 2018 but not under a programme, more than half of the lead managers for the debt issue must be FSI-CM or FSI-ST award holders. If the FSI-CM and FSI-ST award holders are not appointed as lead managers, the MAS could consider other proxies such as revenue or distribution work attributed to FSI-CM or FSI-ST award holders, i.e., if the issuer of the debt securities is based in Singapore, more than half of the revenue from arranging the issue attributes to FSI-CM or FSI-ST companies. If the issuer of the debt securities is not based in Singapore, more than half of the debt securities issued under the issuance are distributed by FSI-CM or FSI-ST companies. For the purpose of the QDS+ scheme, preliminary clarification from the MAS indicates that acceptable standard early termination clauses are likely to include early termination due to taxation, default, redemption or modification and amendment events. Debt securities with embedded options which can be exercised within 10 years from the date of issuance will continue to be excluded from the QDS+ scheme from the onset. The MAS has confirmed that should the debt securities with standard early termination clauses be redeemed prematurely (i.e., before the 10th year), QDS+ tax benefits will not be clawed back. Instead, QDS+ status will be revoked prospectively for outstanding debt securities (if any). The outstanding debt securities may still enjoy QDS tax benefits if the other QDS conditions of the scheme continue to be met. The effective date of this change to the QDS+ scheme will take effect from the date of release of the MAS circular before the end of June 2013.
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Business tax
Enhancing the tax exemption scheme for the underwriting of offshore specialised insurance risks
Current
Approved insurers and reinsurers under the tax incentive scheme for the underwriting of offshore specialised insurance risks enjoy tax exemption on qualifying income derived from the following qualifying offshore specialised insurance lines: errorism risks; T olitical risks; P Energy risks; viation and aerospace risks; and A griculture risks. A The above scheme was introduced in 2006 and will expire on 31 August 2016.
Proposed
To encourage the underwriting of severe and volatile catastrophe risks from Singapore, tax exemption will be granted on qualifying income derived from offshore catastrophe excess of loss (CAT-XOL) reinsurance layers. This refers to CAT-XOL reinsurance layers providing coverage for more than one risk arising from a single event and against natural perils. This change will take effect from 25 February 2013 and the MAS will release further details by the end of April 2013. All existing conditions of the scheme remain unchanged.
Points of view
atastrophe excess of loss reinsurance was developed after the San Francisco earthquake in 1906 C to protect insurers against exceptional loss. It may involve a horizontal spread, in that several insurers may be involved in paying the claims and a vertical spread, in that the risk may be divided into several layers for reinsurance purposes. Catastrophe excess of loss reinsurance protects the primary insurer from excessive losses arising from a particular occurrence that results in an aggregation of claims. The primary insurer can plan to spread his risks into several layers for reinsurance purpose and cover is provided in slices at each layer with different layers accepted by different reinsurers. Similar to the inclusion of agricultural risks into the scheme in 2011, we hope that automatic inclusion would also be accorded to existing approved specialised insurers without the need for them to make a separate application. The inclusion of catastrophe excess of loss reinsurance layers in the above tax exemption will complement the development of Singapore as an attractive Asian location for insurance/ reinsurance activities.
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Business tax
Extending and enhancing the tax incentive scheme for offshore insurance broking business
Current
Insurance and reinsurance brokers on this scheme currently enjoy a 10% concessionary tax rate on commission and fee income derived from the provision of insurance broking and advisory services in Singapore to persons that are not based in Singapore. The above incentive scheme, introduced in 2008, would expire on 31 March 2013.
Proposed
To support Singapores position as a major regional insurance and reinsurance hub, the scheme will be extended for another five years to 31 March 2018. In addition, the following changes will be made to the scheme: Insurance broking activities will be incentivised if the risks being insured or reinsured are offshore risks; and To accelerate the development of the specialty insurance cluster in Singapore, a new 5%-tier award for the offshore specialty insurance broking business will be introduced. Qualifying brokers can enjoy a 5% concessionary tax rate on commission and fee income derived from the provision of qualifying specialty insurance broking and advisory services. The above changes will take effect from 1 April 2013. The MAS will release further details by the end of April 2013.
Points of view
ith the proposed change, commission income from broking services relating to Singapore risks W will no longer enjoy the tax concession even if the services are provided to persons that are not based in Singapore. On the other hand, it would appear that broking income relating to offshore risks will qualify for the 10% tax concession from 1 April 2013, even if the income is derived from clients based in Singapore. We await details from the MAS as to which specialised insurance lines will qualify for the 5% concessionary tax rate. In our view, it is likely that the specialised insurance lines that are covered under the tax exemption scheme for the underwriting of offshore qualifying specialised insurance risks (i.e., terrorism, political, energy, aviation and aerospace, agricultural and catastrophe excess of loss reinsurance risks) will be included.
27
Proposed
There is no change to the current personal income tax rates for YA 2013. In view of the stronger than expected surplus in 2012, the Government has announced that a personal income tax rebate will be granted to all resident taxpayers as follows: 30% rebate will be granted to those who are less than 60 years old as at 31 December 2012; and 50% tax rebate will be granted to those aged 60 and above as at 31 December 2012. The rebate will be for YA 2013 and capped at S$1,500 per taxpayer.
Points of view
There is no change to the top marginal tax rate of 20%. It has been the Governments view in prior years that there was no pressing need to reduce it as yet. The current top marginal tax rate remains competitive in this region. The current 20% top marginal personal income tax rate remains three percentage points higher than the corporate income tax rate. This may continue to encourage successful entrepreneurs to corporatise their business rather than conducting it through sole proprietorship or partnership. The income tax rebate announced in the Budget 2013 brings more benefit to lower income earners as the rebate is capped for all at S$1,500, although the cap is lower than that set in the prior years (YA 2011, YA 2009 and YA 2008) of S$2,000. For the first time, the income tax rebate targets those aged 60 and above separately, with those in this age group being granted a higher tax rebate of 50% but still subject to the cap of S$1,500. This change is in line with the Governments concerns over the ageing population and recognises that there are now more older taxpayers in the workforce. It may also encourage some older workers to remain in the work force past the age of 60. The higher tax rebate recognises that the older age group will often be at a lower income bracket and with the higher tax rebate at 50%, the full $1,500 tax rebate will start to be fully utilised at a lower income level. Based on the current personal income tax rate structure and YA 2013 income tax rebate, an individual under 50 years of age who earns between S$63,000 and S$566,000 will pay lower income tax in Singapore compared to Hong Kong. The upper threshold could be higher for individuals who qualify for the tax benefits under the Not Ordinarily Resident scheme.
29
Comparative analysis
(2012/2013 Hong Kong versus Singapore YA 2013 tax rates)
16.00%
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00% 50 100 150 200 250 300 350 400 450 500 550 600
Notes: 1. Assumes a married man, 50 years of age and below, with two children, wife has no income and sole source of income is from his employment. 2. Hong Kong calculations are based on 2012/2013 tax rates. 3. Singapore calculations are based on YA 2013 tax rates, with 30% tax rebate capped at S$1,500. 4. Exchange rate used : S$1 : HK$6.2159.
30
Comparison of top marginal personal income tax rates in selected countries in the region
Country Australia China Japan Taiwan Korea Thailand Vietnam Philippines India Indonesia Malaysia Myanmar Singapore Hong Kong 0 5 10 15 17 20 25 30 35 40 45 50 Percentage 20 20 26 30 30 32 35 38 37 40* 40 45 45
Notes: The above table is based on latest tax rates as at December 2012.
* Excludes local inhabitant tax
31
Proposed
The current way of taxing housing and hotel accommodation has remained unchanged since the 1960s and appears to under-value the actual benefits received by employees. To simplify tax compliance and to tax such employment perquisites more equitably, the Government will tax the accommodation benefits enjoyed by employees according to market value: The taxable value of housing accommodation will be the annual value of the premises, less rent paid by the employee; The taxable value of hotel accommodation will be the actual cost of the hotel stay benefit provided to the employee; and
32
The taxable value of furniture and fittings will be based on a percentage of the annual value of the housing accommodation. The IRAS will release further details of the changes by October 2013. The proposed amendments will take effect from YA 2015.
Points of view
Generally, the taxable value of accommodation benefit based on 10% of employment income is lower than the annual value of property. The proposed amendments will substantially increase the taxable value of accommodation provided to the employee. This is illustrated in an example below. Hotel accommodation on a temporary basis is commonly provided by the employer to foreign employees who first come to work in Singapore. This is to assist them during the transition period whilst they are looking for permanent accommodation. The change in the treatment to tax the actual cost of the hotel stay will significantly increase the taxable value of hotel accommodation provided to the employee. The proposed changes have removed the tax benefit which can be gained from the structuring of the remuneration package to provide housing benefit. This tax benefit serves to mitigate the higher accommodation costs in Singapore. The proposed changes will hence reduce the take home pay for employees who are provided with the benefit of housing accommodation and hotel accommodation. Employers who bear the tax liabilities on behalf of their employees will ultimately be faced with higher staff costs. Companies with international mobility programs that include the provision of housing benefit will need to review their policy vis--vis the lower tax benefit to be gained from company provided accommodation. Depending on the level of the employees remuneration and the annual value of the property, it may no longer make sense for the employer to sign the rental agreement to achieve a lower tax cost in relation to the risks involved in taking up the lease. The employee may also prefer to receive the benefit in the form of an allowance. Tax concessionary treatment for accommodation and hotel accommodation benefit is commonly available in many countries in the Asia Pacific region, e.g., China, Hong Kong and Malaysia. Nevertheless it is hard to justify such concessionary treatment in todays globalised business environment and on the grounds of fairness.
33
Illustration: Tax impact of the change in the taxable benefit of housing accommodation Singapore income tax computation - YA 2015
Current tax treatment on housing accommodation (S$) Salary Furniture & Fittings Housing Benefit Assessable income Less: Personal reliefs Earned income Spouse Child Chargeable income Tax on 1st S$160,000 Balance @ 17% Tax on 1st S$200,000 Balance @ 18% Net tax payable Difference in tax to be paid 18,764 (1,000) (2,000) (8,000) 188,320 13,950 4,814 20,750 6,705 27,455 8,691 (1,000) (2,000) (8,000) 237,250 180,000 1,200 18,120 199,320 Proposed changes to taxable benefit on housing accommodation (S$) 180,000 3,250 65,000 248,250
Assumptions: 1. 2. 3. 4. Taxpayer is married, with two dependent children. Salary is S$15,000 per month. House rental is S$8,000 per month. Annual value of property is S$65,000. Taxable benefit of furniture and fittings amount to S$1,200 per annum under current treatment. For the taxable value under the proposed treatment, we have assumed the furniture and fittings based on 5% of the annual value of the housing. The implementation details will only be released by the IRAS in October 2013. 5. No other reliefs/deductions apply. 6. Based on current individual tax rates without tax rebate.
34
Proposed
ERIS (Start-Ups) The ERIS (Start-Ups) scheme, which expired on 15 February 2013, will not be renewed. Employees who were granted ESOPs or ESOWs, which qualify for exemption under the ERIS (Start-ups) on or before 15 February 2013, will continue to enjoy partial tax exemption under the ERIS (Start-ups) in respect of the gains derived from such ESOPs or ESOWs, as long as the gains are derived on or before 31 December 2023. ERIS (SMEs) and ERIS (All Corporations) The ERIS (SMEs) and ERIS (All Corporations) schemes will expire with effect from 1 January 2014. Employees who were granted ESOPs or ESOWs which qualify for exemption under the ERIS (SMEs) and ERIS (All Corporations) schemes on or before 31 December 2013, will continue to enjoy partial tax exemption under the relevant schemes in respect of the gains derived from such ESOPs or ESOWs as long as the gains are derived on or before 31 December 2023.
Points of view
The Government has over the years implemented several tax incentives in respect of the taxation of share gains to make the granting of share benefits more attractive. The Government used these various incentive schemes to encourage employers to use share benefits to attract and retain talent and to encourage entrepreneurship. With the ERIS (SMEs) and ERIS (All Corporations) schemes expiring with effect from 1 January 2014, employers may consider whether to accelerate share grants to take advantage of the incentives. These changes seek to rationalise the tax treatment of remuneration, regardless of form, for employees. This is also in line with the Governments objective to temper inequality. With the proposed changes, it appears that the only tax incentive scheme remaining for share remuneration plans is the Qualified Employee Equity-Based Remuneration scheme. This scheme was introduced to alleviate cash flow problems faced by employees who do not sell their shares after acquiring them, or after exercising their stock options by allowing employees to defer payment of tax on ESOP or ESOW gains for up to five years, subject to an interest charge at the IRAS prescribed prime rate.
35
Proposed
The CPF contribution rates for low-wage workers will be raised to help them save more for retirement and medical needs. This change targets employees earning more than S$50 up to S$1,500 per month and is effective for wages earned from 1 January 2014. The key changes are as follows: The phased-in employer CPF contribution rates for employees aged above 35 years and earning more than S$50 up to S$1,500 per month will be removed. The new rates will follow the existing full employer CPF contribution rates of their respective age groups. The employee CPF contribution rates for all employees earning at least S$750 per month will follow the existing full employee CPF contribution rates of their respective age groups. The employee CPF contribution rates for employees earning more than S$500 up to S$750 per month will be phased-in. As before, there is no employee CPF contribution for employees earning less than S$501. There is no change to the CPF allocation rates. This increased CPF contribution will be credited to the Ordinary, Special and Medisave Accounts at the prevailing allocation rates. There is also no change to the CPF Ordinary Wage Ceiling and the CPF Annual Limit. They will remain at S$5,000 and S$30,600 respectively.
Points of view
The increase in employers contribution to the full employer rate for the low wage worker will help these workers to increase their savings towards retirement. The employee CPF contribution rates have increased in tandem with the employer CPF contribution rates. This is in line with the Governments view that employees, as individuals, have a part to play in saving for their own retirement and medical needs. Although their monthly net disposable income may decrease (due to the rise in employees CPF contributions), these employees may be in a better position overall in future as the accumulated wealth in their CPF accounts would grow faster, especially with the increase in the employers CPF contributions as well. Companies hiring such workers may experience an increase in labour costs. However, the cost increase could be partially mitigated by other initiatives introduced by the Government, for example the Wage Credit Scheme.
36
Proposed
With effect from 1 January 2014, self-employed persons earning an NTI of above S$6,000 to S$12,000 will be required to contribute half (instead of the current one-third) of the full Medisave contribution rate relevant to their age group. For those who earn NTI of above S$12,000 to S$18,000, the contribution rate will increase with income, from half of the full rate (at NTI of S$12,000) to the full contribution rate (at NTI of S$18,000).
Points of view
Self-employed persons have a large part to play in saving for their own medical needs. Although their monthly net disposable income may decrease with this change (due to the rise in CPF contribution rates), these individuals would probably have a more secured retirement in future as the accumulated monies in their Medisave accounts would grow faster in meeting their future medical needs.
37
Proposed
The Minister did not propose any change to the GST rate. The GST rate for standard rated supplies stays at 7%.
Points of view
The Minister has previously indicated in 2011 that, at least for 5 years, there is no reason to raise the GST rate. Hence, as expected, the Minister did not propose any change to the GST rate in this Budget.
Prevailing standard GST/VAT rates in selected Asia Pacific countries as at 1 January 2013
Asia Pacific
Country China New Zealand Philippines Australia Indonesia Korea Vietnam Singapore Thailand Japan Taiwan 0 5 5 5 10 15 20 Percentage 7 7 (a) 10 10 10 10 12 15 17
39
Miscellaneous
Miscellaneous
Proposed
The WCS is part of the 3-year Transition Support Package introduced in Budget 2013. Under the WCS, the Government will co-fund 40% of the wage increases given to Singaporean employees earning a gross monthly wage up to S$4,000. Wage increases that are given in 2013 to 2015 will be eligible for the WCS. Eligible employers will receive a payout automatically each year. The first payout will be in the second quarter of 2014 and the last payout will be in 2016. Details of the scheme are as follows: Gross monthly wage is defined as the total wages paid by the employer to the employee in the calendar year, divided by the number of months in which CPF contributions were made. Total wages paid to an employee is computed from the CPF contributions that the employer makes for the employee in the year. Total wages includes basic salary and additional wages like overtime pay and bonuses, and excludes employer CPF contributions. To qualify for co-funding in calendar year 2013, the employee must be a Singapore citizen, earn a gross monthly wage of up to and including S$4,000, be employed for at least three months in 2012 and be on the employers payroll for at least three months in 2013. Employers must have paid the employee CPF contributions for at least three months in 2013. Owners of companies or businesses do not qualify as employees even if CPF contributions are paid. Government-related entities and entities not registered in Singapore are excluded from receiving the wage credit. The WCS aims to support sharing of productivity gains between employers and employees through meaningful wage increases, especially for lower wage workers. Once an employees gross monthly wage exceeds S$4,000, the portion of the wage increase that brings the gross monthly wage above S$4,000 will not be eligible for co-funding under the WCS. The increase in an employees gross monthly wage over the preceding year must be at least S$50 to qualify for wage credits.
41
Miscellaneous
Points of view
n view of tightening foreign worker policies and the need for productivity growth, businesses may I have to restructure in a tight labour market in the coming years, and wages may rise accordingly. The WCS is a targeted measure to help businesses defray the cost of raising wages. This is a broad based scheme that benefits all businesses in Singapore (with the exception of government-related entities and entities not registered in Singapore) , whether they have tax losses or profits for the basis year 2013 to 2015. This is a more direct approach to helping employers increase wages for Singaporean employees. Similar to the Jobs Credit scheme (which has expired), the Government foots part of the bill. We expect that branches of foreign companies registered in Singapore will be included in the scheme as being entities with a business registered in Singapore. The scheme encourages the employment of Singaporean employees as the WCS enhances the cost competitiveness of Singaporean workers vis-a-vis foreign workers. It has been clarified that the wage credit is taxable in the hands of the employers. This effectively reduces the cost savings to employers. As this scheme relies on existing CPF contribution data, there is no additional compliance burden on companies. Unlike other cash grants, this scheme is automatic and there is no need to apply for this cash grant. As the definition of gross monthly wage includes additional wages such as overtime pay and bonus, fluctuations in these amounts from year to year will affect the calculation of the wage increase and resulting wage credit. An employee who receives an increase in their monthly basic wage, but works less overtime or receives a lower annual bonus, may not receive an increase in gross monthly wage as defined for the purposes of the wage credit. The IRAS will release further details by June 2013.
42
Miscellaneous
Table 1: Illustration of WCS benefits If an employer increases the gross monthly wage of his employee by S$200 in 2013, the Government would co-fund 40% of the S$200 wage increase, not just for 2013 but the next two years. If further S$200 increases are given in 2014 and 2015, the Government will co-fund 40% of the total wage increase of S$400 and S$600 in 2014 and 2015 respectively. At the end of three years, the employee will receive a total of S$14,400 more in wages, of which the Government would have co-funded S$5,760.
S$200
Gross monthly wage increase
S$200 S$200
2013
S$200 S$200
2015
S$200
2014
S$80
S$160
S$240
43
Miscellaneous
44
Miscellaneous
The MOM will put in place a new EP framework to ensure that firms give fair consideration to Singaporeans in their hiring practices. Details of the framework may take some time to develop and the MOM will consult with relevant stakeholders in this regard. As an example, the framework may include steps such as requiring employers to advertise job vacancies to locals prior to applying for an EP for a foreign candidate. The MOM will release more details.
45
Miscellaneous
Property tax
Current
The annual property tax rate is 10% on the Annual Value (AV) for all properties. An exception applies to owner-occupied residential properties, which are taxed under a progressive property tax structure as noted in the table below. Table 1: Current progressive property tax rates for owner-occupied residential properties
Annual Value First S$6,000 Next S$59,000 AV above S$65,000 Property tax rates 0% 4% 6%
The AV is calculated in various ways depending on the type of property. For buildings, the AV is the estimated amount of annual rent of the property based on comparable rental rates (excluding the furniture, furnishings and maintenance fees). For land and development sites, the AV is determined at 5% of their estimated freehold market values. For certain specialised properties (such as hotels, ports, refineries, etc.) there are specific formulae or valuation methods to calculate the AV. Refund concessions are available for certain vacant properties, including: Properties that are vacant, despite reasonable efforts to find a tenant; Properties undergoing repairs to render them fit for occupation; and Residential properties that are fit for occupation and intended for owner-occupation, but undergoing building works. This is subject to a maximum period of two years and the property must be owner-occupied for at least one year after the completion of the building works. Residential properties that are demolished and reconstructed are taxed at the prevailing rate of 10%. However, if they are intended for owner-occupation, the owner can apply to the IRAS to be taxed at the owner-occupier rates for a maximum period of two years. The property must be owner-occupied for at least one year after the completion of the construction works. Vacant land that is undergoing new development is subject to property tax at the prevailing rate of 10% during the period of development.
46
Miscellaneous
Proposed
A more progressive property tax rate system for residential property will be implemented over two years starting 1 January 2014. This means that residential properties with a higher AV will be subject to increased rates of property tax, as outlined in the tables below. Property tax on land and non-residential property, as well as property tax on residential property undergoing demolition and reconstruction, will remain at 10%. Refund concessions on vacant property will be removed with effect from 1 January 2014. However, owners whose property is intended for owner-occupation and is undergoing repair or building works can apply to the IRAS to be taxed based on the proposed owner-occupied residential property tax rates. In addition, vacant land undergoing development and intended for owner-occupation may be taxed at owner-occupied residential property tax rates, upon application to the IRAS. These concessions apply for a period of up to two years and are subject to the property being owner-occupied for at least one year after completion of the repairs or building works. For owner-occupied residential property there will be nine levels of property tax. Table 2: Proposed progressive property tax rates for owner-occupied residential properties
Annual Value First S$8,000 Next S$47,000 Next S$5,000 Next S$10,000 Next S$15,000 Next S$15,000 Next S$15,000 Next S$15,000 AV above S$130,000 Property tax rates from 1 January 2014 0% 4% 5% 6% 7% 9% 11% 13% 15% Property tax rates from 1 January 2015 0% 4% 6% 6% 8% 10% 12% 14% 16%
47
Miscellaneous
For non-owner-occupied residential property there will be six levels of property tax. Table 3: Proposed progressive property tax rates for non-owner-occupied residential properties
Annual Value First S$30,000 Next S$15,000 Next S$15,000 Next S$15,000 Next S$15,000 AV above S$90,000 Property tax rates from 1 January 2014 10% 11% 13% 15% 17% 19% Property tax rates from 1 January 2015 10% 12% 14% 16% 18% 20%
The IRAS will release further details of the changes by June 2013.
48
Miscellaneous
49
Miscellaneous
50
Miscellaneous
51
Glossary of terms
The following definitions apply throughout this budget synopsis unless otherwise stated: COE CPF EDB F&B FY Government GST HDB IP IRAS ITA JTC MAS Minister MNC MoF OTC PIC PR R&D SME VAT WHT YA YAs Certificate of entitlement Central Provident Fund Singapore Economic Development Board Food and beverage Financial year Government of Singapore Goods and services tax Housing and Development Board Intellectual property Inland Revenue Authority of Singapore Income Tax Act Jurong Town Corporation Monetary Authority of Singapore Minister for Finance Multinational corporation Ministry of Finance Over-the-counter - Productivity and Innovation Credit Permanent Resident Research and development Small and medium enterprise Value added tax Withholding tax Year of Assessment Years of Assessment
52
For further information, you can also contact one of the following or your usual Ernst & Young contact: Singapore Tax Partners and Directors
Business Tax Services Chung-Sim Siew Moon +65 6309 8807 siew-moon.sim@sg.ey.com Ang Lea Lea +65 6309 8755 lea-lea.ang@sg.ey.com Helen Bok +65 6309 8943 helen.bok@sg.ey.com Chai Wai Fook +65 6309 8775 wai-fook.chai@sg.ey.com Cheong Choy Wai +65 6309 8226 choy.wai.cheong@sg.ey.com Chia Seng Chye +65 6309 8359 seng.chye.chia@sg.ey.com Choo Eng Chuan +65 6309 8212 eng.chuan.choo@sg.ey.com Goh Siow Hui +65 6309 8333 siow.hui.goh@sg.ey.com Lim Gek Khim +65 6309 8452 gek-khim.lim@sg.ey.com Lim Joo Hiang +65 6309 8654 joo-hiang.lim@sg.ey.com Latha Mathew +65 6309 8609 latha.mathew@sg.ey.com Florence Ng +65 6309 8632 florence.ng@sg.ey.com Ivy Ng +65 6309 8650 ivy.ng@sg.ey.com Poh Bee Tin +65 6309 8017 bee-tin.poh@sg.ey.com Nadin Soh +65 6309 8630 nadin.soh@sg.ey.com
Transfer Pricing Luis Coronado +65 6309 8826 luis.coronado@sg.ey.com Henry Syrett +65 6309 8157 henry.syrett@sg.ey.com Stephen Lam +65 6309 8305 stephen.lam@sg.ey.com
Financial Services Organization Chong Lee Siang +65 6309 8202 lee.siang.chong@sg.ey.com Amy Ang +65 6309 8347 amy.ang@sg.ey.com Stephen Bruce +65 6309 8898 stephen.bruce@sg.ey.com Kang Choon Pin +65 6309 8204 choon.pin.kang@sg.ey.com Desmond Teo +65 6309 6111 desmond.teo@sg.ey.com
Asia Pacific Tax Centre Jonathan Stuart-Smith +65 6309 6022 jonathan.stuart-smith@sg.ey.com Matthew Andrew +65 6309 8038 matthew.andrew@sg.ey.com Paul Griffiths +65 6309 8068 paul.griffiths@sg.ey.com Gagan Malik +65 6309 8524 gagan.malik@sg.ey.com Christine Schwarzl +65 6309 8256 christine.schwarzl@sg.ey.com
Human Capital Grahame Wright +65 6309 8701 grahame.k.wright@sg.ey.com Kerrie Chang +65 6309 8341 kerrie.chang@sg.ey.com Tina Chua +65 6309 8823 tina.chua@sg.ey.com Stephanie King +65 6309 8800 stephanie.king@sg.ey.com Grenda Pua +65 6309 8753 grenda.pua@sg.ey.com Jeffrey Teong +65 6309 8610 jeffrey.teong@sg.ey.com Wu Soo Mee +65 6309 8917 soo.mee.wu@sg.ey.com
53
Notes
54
Notes
55
Human Capital
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