Tuesday, 21 February 2017

Singapore Budget 2017 Highlights!

Mr Heng Swee Keat presented the 2017 Budget on 20 February 2017. Overall, the main message and objective of his delivered content is to ensure Singapore remains relevant and adaptable amidst the constantly changing global business environment.

Amongst the highlights of the 2017 Budget announcement were:

Business Tax

  • An increase on the Corporate Income Tax rebate from $20,000 to $25,000 for YA 2017 (rate remains at 50%). The CIT rebate is also extended to YA 2018 at a reduced rate of 20%, and a cap of $10,000.
  • An extension of the withholding tax exemption for structured products offered by financial institutions
  • A tax deduction for cost sharing agreements for research and development projects
Personal Tax
  • A personal income tax rebate at 20% of tax payable for YA 2017, capped at $500 per taxpayer
Tax Incentives
  • An extension of the tax incentive schemes for Project and Infrastructure Finance and the Integrated Investment Allowance Scheme to 31 December 2022
  • An Intellectual Property (IP) Development Incentive to encourage the use of IPs arising from taxpayers' R&D activities
  • Further enhancements to the Global Trader Programme
Other Taxes
  • The Introduction of Carbon Tax
  • The restructuring of diesel taxes to encourage reduced consumption of diesel and for manufacturers to develop more energy-efficient vehicles. Various rebates were also introduced to ease the impact of diesel duty on school bus fees and commercial diesel vehicles.
  • The introduction of a tiered Additional Registration Fee for motorcycles
Human Resource Policies
  • Changes in existing foreign worker levy policies, depending on sector
  • A raise in the re-employment age from 65 to 67 from 1 July 2017.
  • An extension as well as change in quantum for the Additional Special Employment Credit scheme
Benefits for Individuals and Households
  • An increase in the CPF Housing Grant to help young families get their first home
  • An increase in  annual bursary amounts for those attending Post-Secondary Education Institutions, and a revision of the income eligibility criteria.
  • More GST Voucher benefits
  • An extension of the Service and Conservancy Charges rebate
Other Changes
  • Enhancements for the"Adapt and Grow" initiative
  • The setting up of a Global Innovation Alliance for Singaporeans to gain overseas experience, build networks and collaborate with their counterparts in other cities.
  • The build up of capabilities under the new Global Innovation Alliance collaboration and the SkillsFuture Leadership Development Initiative
  • The introduction of the SMEs Go Digital Programme to help SMEs build digital capabilities
  • Further development of initiatives under the Agency for Science, Technology and Research (A*STAR)
  • More initiatives and funds to encourage internationalisation, and innovation
  • Changes to vehicle schemes
  • Increases in water prices
  • More initiatives to help Persons with Disabilities as well as those with mental health issues
  • More funding to help strengthen community bonds
  • A permanent 2% downward adjustment to the budget caps of all Ministries and Organs of State to emphasise the need to stay prudent and effective.
To know more about what's in store, why not attend our upcoming event, the 2017 Singapore Budget and Tax Outlook? Featuring prominent speakers in the industry, our event will tell you all you need to know about Budget 2017, plus related developments and insights that you will NOT want to miss out on!

To sign up, talk to your favourite Account Manager or head over to our online store.

See you there!

No comments:

Post a comment

Tax Return Form Deadlines

Taking into consideration our current economic situation due to the Covid-19 pandemic, Inland Revenue Board of Malaysia (IRB) has extended t...