The Ministry of Finance is now conducting a public consultation on the draft Income Tax (Amendment) Bill 2014 from 4 to 24 July 2014, and invites the Public to give feedback on the Bill.
The proposed amendments to the Income Tax Act (“ITA”) relate mainly to 14  changes announced in the 2014 Budget Statement. These include:

  • Extension of the Productivity and Innovation Credit (“PIC”) scheme for three years till Year of Assessment (“YA”) 2018, and the introduction of the PIC+ Scheme. Under PIC+, qualifying SMEs can claim a 400% tax deduction for up  to $600,000 of expenditure per qualifying activity per YA;
  • Extension of the Research & Development (“R&D”) tax measures. The additional 50% tax deduction for R&D granted under section 14DA(1) of the ITA is extended for ten years till YA 2025. The further tax deduction for EDBapproved R&D projects, granted under section 14E, is extended till 31 March  2020;
  • Extension of the Section 19B Writing Down Allowance (“WDA”) for acquisition of qualifying Intellectual Property Rights (“IPRs”) for five years till  YA 2020, and clarifying the type of “information that has commercial value” that would be eligible for WDA1;
  • Treatment of Additional Tier 1 instruments2 as debt for tax purpose in the basis period for YA 2015 and thereafter; and
  • Enhancement of various dependant-related reliefs for individual taxpayers from YA 2015

The Income Tax (Amendment) Bill 2014 also provides for refinements to existing tax policies and tax administration arising from ongoing reviews of Singapore’s income  tax system. These refinements include:

  • Additional measures to curb PIC abuse.
  • Allowing Supplementary Retirement Scheme (“SRS”) members to withdraw their SRS investments without liquidating the investments. This will reduce the transaction costs they incur for withdrawals. The SRS investments will be valued and taxed in the same manner as when the SRS investments are liquidated for cash withdrawal; and
  • Amendments to enable Singapore to ratify the Convention on Mutual Administrative Assistance in Tax Matters

The public can access the detailed consultation documents for the draft Income Tax (Amendment) Bill 2014 on the Ministry of Finance’s website (www.mof.gov.sg) and the REACH consultation portal (www.reach.gov.sg). Respondents may send their comments to the Ministry of Finance directly via the website, email, fax or post.

Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments
You May Also Like

MP Tin Pei Ling files police complaint over doctored image of CNY banner circulating online

On Tuesday (21 January), Member of Parliament (MP) for MacPherson Tin Pei…

High Court allows gay man to adopt his biological son born via surrogacy – but the government still opposes same-sex families

In a landmark decision, the Singapore High Court ruled on Monday (Dec…

中年雇员占本地劳动力六成 尚达曼鼓励雇主续聘用

国务资政兼社会政策统筹部长尚达曼坦言,本地劳动力队伍中,有60巴仙都是年龄40岁或以上的雇员。为此政府仍积极协助他们就业,包括鼓励雇主雇佣这批中年工友群体。 他指出,尽管当中一些中年工友学历不高,但刻苦耐劳且多年来已积累宝贵工作经验,为此政府仍会确保他们能继续为国家贡献。 目前尚达曼领导全国就业理事会,在今晚(17日)的演说,他提及政府给予那些雇佣中年工友的雇主额外支持。 尚达曼强调政府需确保“没有国人被落在后头”,而当前当务之急,是为国人保住工作,确保失业者尽快返回职场等。 当前贸易和旅游业前景低迷,而政府与各领域企业合作,提供临时工作以及实习机会,让国人边工作、边学习新技能,为下一份工作做好准备。 强化社会流动性 尚达曼也指在全球爆发疫情前,一些国家就已出现社会分化现象,而我国需避免这种问题,为此,将继续确保国人有机会接受教育、掌握技能和找到好工作;为输在起跑点的国人提供支持,维持社会流动性。 https://web.facebook.com/gov.sg/videos/292041325179615/?v=292041325179615&external_log_id=e30a1790-0a5b-4317-b40a-0bd36cc26b8f&q=Tharman%20Shanmugaratnam  

Bitter medicine prescription – with a little spin thrown in

Breaking News: Feb 27: Freeze on government fees extended till end of…