Singapore Budget 2009 Announces New Tax Benefits for Businesses ...

PRLog (Press Release) - Jan 27, 2009 -
Overview of Tax Changes Announced in Budget 2009   
   
Individuals     
   
Tax Changes   Summary

Personal Income Tax Rebate for Resident Individuals   All resident individual taxpayers will be given a one-off income tax rebate of 20%, up to a cap of $2,000, for the tax  payable for  Year of Assessment (YA) 2009.


Tax Exemption of Foreign - Sourced Income Received in Singapore   Tax exemption will be granted to all foreign-sourced income earned/ accrued outside Singapore on or before  21 Jan 2009 to resident non-individuals and resident partners of partnerships in Singapore and received in Singapore during the period from  22 Jan 2009 to  21 Jan 2010.

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.
   
   
Property    
   
Tax Changes   Summary

40% Property Tax Rebate for Owner-Occupied Residential Properties   Owner-occupied residential properties will be granted a rebate of 40% on the property tax payable (after existing rebates) for calendar year 2009.
   
   
40% Property Tax Rebate for Commercial and Industrial Properties   Owners of commercial and industrial properties will be granted a rebate of 40% on the property tax payable for calendar year 2009.
   
Property Tax Deferral for Land Approved For Development for Businesses   Business owners may apply for property tax deferral for land approved for development if they satisfy the eligibility criteria. The period of the property tax deferral shall be from 22 Jan 2009 to 21 Jan 2011.
      
Deferment of Increase in Assessment Rate for Hotel Rooms   Tax exemption will be granted to all foreign-sourced income earned/ accrued outside Singapore on or before  21 Jan 2009 to resident non-individuals and resident partners of partnerships in Singapore and received in Singapore during the period from  22 Jan 2009 to  21 Jan 2010.
   
   
Businesses    
   
Tax Changes   Summary

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.
   
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.

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.
   
   
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.
   
Tax Framework for facilitation Corporate Amalgamations   A new tax framework for qualifying amalgamations will be introduced.

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.

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.
   
   
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.
   
   
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.

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.
   
   
Review and Enhancement to Current FSI-HQ Scheme   A series of enhancements will be made to the FSI-HQ scheme.

Extension and Enhancement for the Commodity Derivatives Trading(CDT) Scheme   A series of enhancements will be made to the CDT scheme. 
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.

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).
   
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.

Ms. Ragini Dhanvantray CEO of Rikvin Consultancy offering a comprehensive Singapore Company Incorporation and Business Migration service for investors and entrepreneurs says “Singapore is emerging as the hub of Asia for almost all industry, offers the best quality of life and a safe option for investing during this downtimes.  Clients who wish to make Singapore a place to live & do business, can call to 65-64388887 or visit the website http://www.rikvin.com for more information

For more information on Singapore Budget 2009, please click the following links: http://www.rikvin.com/singapore-budget-2009.html