Singapore Budget at a Glance
20 Feb 2018


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Sector Specific

 

Financial and insurance sectors

  • Tax framework for Singapore Variable Capital Companies (“S-VACCs”) to be introduced to complement the S-VACC regulatory framework
  • Tax exemption under the Enhanced-Tier Fund Scheme to be extended to all qualifying fund vehicles
  • Tax transparency treatment for Singapore-listed REITs to be extended to Singapore-listed REITs Exchange Traded Funds
  • Tax incentive scheme for Approved Special Purpose Vehicle engaged in asset securitisation to be extended to 31 December 2023
  • Financial Sector Incentive Scheme to be enhanced and extended to 31 December 2023
  • Tax deduction for qualifying financial institutions for impairment and loss allowances made in respect of non-credit-impaired financial instruments to be extended
  • Withholding tax exemptions for the financial sector to be rationalised
  • Insurance Business Development – Insurance Broking Business scheme to be extended to 31 December 2023 and Specialised Insurance Broking Business scheme to lapse after 31 March 2018
  • Qualifying Debt Securities incentive scheme to be extended till 31 December 2023 and Qualifying Debt Securities Plus incentive scheme to lapse after 31 December 2018
  • Tax exemption on income derived by primary dealers from trading in Singapore Government Securities to be extended to 31 December 2023

Infrastructure sector

  • Investment Allowance scheme to include qualifying investment in submarine cable systems landing in Singapore
  • New office to connect infrastructure demand in Asia to infrastructure financing, services and expertise

Real estate sector

  • Top marginal Buyer’s Stamp Duty rate will be raised from 3% to 4%. Applicable to residential property acquired on or after 20 February 2018, that is valued in excess of $1 million

Shipping and marine sectors

  • Increase in Foreign Workers’ Levy rates deferred for the Marine Shipyard and Process sectors to 30 June 2018
  • Introduction of 31 December 2022 as the review date for the withholding tax exemption on container lease payments made to non-resident lessors

 

 

 

 

Businesses

  • Corporate Income Tax (“CIT”) rebate enhanced and extended:
    • For YA 2018, CIT rebate raised to 40% of tax payable, capped at $15,000
    • CIT rebate extended to YA 2019, at a rate of 20% of tax payable, capped at $10,000
  • Thresholds for Start-up Tax Exemption and Partial Tax Exemption schemes reduced to first $200,000
  • Wage Credit Scheme extended for three more years to 2020, with government co-funding of qualifying wage increases at 20% for 2018, 15% for 2019 and 10% for 2020
  • Up to 70% funding support for the adoption of pre-scoped, off-the-shelf solutions to improve productivity
  • Up to 70% funding support for firms to build a range of capabilities including innovation, talent development and internationalisation
  • Funding support for collaborations and partnerships between firms of all sizes
  • Double Tax Deduction for Internationalisation enhanced with an increase in the expenditure cap for claims without prior approval from $100,000 to $150,000 per year of assessment
  • Tax deduction for the first $100,000 of qualifying Intellectual Property (“IP”) licensing costs or qualifying IP registration costs raised to 200%
  • Tax deduction for staff costs and consumables incurred on qualifying R&D projects performed in Singapore raised from 150% to 250%

 

 

 

Goods & Services Tax (GST)

  • GST rate to be increased from 7% to 9%, sometime between 2021 and 2025
  • GST will be introduced on Business-to-Business and Business-to-Consumer imported services on or after 1 January 2020

Individuals

  • All Singaporeans aged 21 and above in 2018, will receive a one-off SG Bonus of $100 to $300, with the quantum dependent on annual income thresholds
  • GST Vouchers to be enhanced for eligible households and seniors

 

Environment & Society

  • From 2019, there will be a new carbon tax of $5 per tonne of greenhouse gas emissions, for all facilities producing 25,000 tonnes or more in  annual greenhouse gas emissions. There are plans  to increase the tax to between $10 and $15 per  tonne of emissions by 2030
  • Grants and support to help companies enhance energy efficiency and reduce emissions
  • Excise duties raised by 10% across all tobacco products
  • Enhanced 250% tax deduction for qualifying donations extended, for donations made on or before 31 December 2021
  • 250% tax deduction on qualifying costs incurred for businesses that support staff to volunteer and provide services to Institutions of a Public  Character (“IPC”) under Business and IPC  Partnership Scheme

 


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