Singapore Budget 2008 - Key Corporate Tax Reliefs at a glance

PRLog (Press Release) – Feb 15, 2008 – In Singapore 2008-2009 budget speech, the finance minister unveiled a series of personal and corporate tax benefits designed to help both the working class as well as corporate business community in Singapore.

Key Corporate Tax Reliefs - At A Glance

The qualifying conditions on the existing tax exemption of $100,000 on normal chargeable income for each of its first three consecutive tax filing years have been relaxed. (Newly Singapore setup Companies Pay Zero Corporate Tax for the first $100,000 Profit for 3 years consecutively.) To find out more on how to setup Singapore Company and reside in Singapore, please vsit the following link: http://www.rikvin.com/Singapore-Company-Registration-Set ...

According to the new policy, tax exemption is allowed as long as there is at least one individual shareholder that holds at least 10% of the shares. The rest of the shareholding can be owned by corporate entities.

All Singapore companies that earned income from countries that don’t have double tax agreement with Singapore, will be allowed a tax credit on their foreign-sourced income from those countries.

Making Innovation Pervasive

Allowed tax deductions for R&D done in Singapore increased from 100% to 150%. For example, with every $100,000 of local R&D spending, a company will be able to deduct $150,000 from its taxable income. The restriction of R&D done in Singapore must be related to a company’s existing business has been removed.

Singapore companies will be allowed to write down the cost of fixtures and fittings over a period of three years up to a maximum of $150,000. They can do this every three years.

Licensed insurance companies to enjoy a concessionary tax rate of 10% on the income they derive from offering insurance broking and advisory services to offshore clients.

Shipping companies to enjoy a concessionary tax rate of 5-10% on income from container leasing activities.

Family owned investment holding companies to enjoy the same scope of exemptions that individuals currently enjoy on Singapore and foreign-sourced income.


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