1. Key Features
|
Year of Assessment |
Corporate Tax Rate (%) |
|
2009 |
18 |
|
2010-2019 |
17 |
For comparison, we append below corporate tax rates for selected jurisdictions:
|
Jurisdiction |
Corporate Tax Rate (%) |
|
Hong Kong |
16.5 |
|
Taiwan |
20 |
|
Thailand |
20 |
|
South Korea |
25 |
|
Indonesia |
25 |
|
Malaysia |
24 |
|
Vietnam |
20 |
|
China |
25 |
|
The Philippines |
30 |
|
India |
25 |
|
Japan |
30.86 |
2. Tax Changes for Businesses
2.1 Extending the Writing Down Allowance (“WDA”)
Currently, writing down allowance (“WDA”) for acquisition of intellectual property rights (“IPR”) is given to qualifying taxpayers under Section 19B of the Income Tax Act. Under this scheme, taxpayers can claim an annual WDA on the cost of acquiring the IPR in 5, 10 or 15 years. The scheme will be extended to YA 2025.
2.2 Extending the 100% Investment Allowance (“IA”) for Automation Support Package
Under current law, taxpayers incurred qualifying capital expenditure for automation project will be allowed with 100% tax deduction. The scheme will be extended for 2 more years up to 31 March 2021.
2.3 Extending the Tax Concession for Singapore-listed REIT
Tax concessions including tax exemption on distributions received by individuals are given to Singapore-listed Real Estate Investment Trusts (“REIT”). The existing concessions will be extended to 31 December 2025.
2.4 Extending the Tax Concession for Singapore-listed REIT – Exchange Traded Funds
Tax concessions including tax exemption on distributions received by individuals, tax transparency treatment and 10% tax on non-resident non-individuals are given to Singapore-listed Real Estate Investment Trusts (“REIT”) Exchange Traded Funds. The concessions will be extended to 31 December 2025.
The current tax incentives for funds managed by Singapore-based fund managers include tax exemption on specified income derived from designated investments and withholding tax exemption on interest payment to non-resident. Some of the qualifying conditions for the scheme will be modified for ease of compliance.
The current scheme provides for tax transparency treatment for specified income derived by the DUT. The scheme will lapse after 31 March 2019 without renewal.
The current scheme provides for tax transparency treatment on gains from disposal of securities and tax exemption on distributions received by individual resident in Singapore. The scheme will lapse after 18 February 2019 without renewal.
4. Goods and Services Tax (GST)
4.1 Tightening of GST Import Relief for Travelers
Currently, travelers are granted with import GST relief for goods with value of up to S$150 if the traveler is outside Singapore for less than 48 hours, and up to S$600 if the traveler is outside Singapore for more than 48 hours. The relief will be adjusted from 19 February 2019 as follows:
|
Time Spent outside Singapore |
Value of goods granted |
|
48 hours and above |
$500 |
|
Less than 48 hours |
$100 |
4.2 Extending GST Remission for Singapore-Listed REITs and RBTs
GST remission is currently granted to Singapore-listed Real Estate Investment Trusts (“REIT”) and Registered Business Trusts (“RBT”) in infrastructure business, ship leasing and aircraft leasing sectors. The scheme will be extended to 31 December 2025.
4.3 Recovery of GST for Qualifying Funds
Under current law, concession is given to qualifying funds managed by prescribed fund managers in Singapore to claim for GST input tax incurred at a fixed recovery rate. The scheme will be extended to 31 December 2024.
6. Changes to Individual Income Tax
6.1 Tax Rebate for YA 2019
There will be a 50% tax rebate, capped at S$200 given to all resident individual taxpayers for the YA 2019.
6.2 Personal Income Tax Rates
The personal tax rates have been implemented from the YA 2017. No changes to personal tax rate were introduced in this budget. We append below the tax rate table for resident taxpayers:
|
|
Tax rate structure with effect from |
|||
|
|
|
Chargeable Income ($) |
Tax Rate (%) |
Gross Tax Payable ($) |
|
|
On the first On the next |
20,000 10,000 |
0 2 |
0 200 |
|
|
On the first On the next |
30,000 10,000 |
- 3.5 |
200 350 |
|
|
On the first On the next |
40,000 40.000 |
- 7 |
550 2,800 |
|
|
On the first On the next |
80,000 40,000 |
- 11.5 |
3,350 4,600 |
|
|
On the first On the next |
120,000 40,000 |
- 15 |
7,950 6,000 |
|
|
On the first On the next |
160,000 40,000 |
- 18 |
13,950 7,200 |
|
|
On the first On the next |
200,000 40,000 |
- 19 |
21,150 7,600 |
|
|
On the first On the next |
240,000 40,000 |
- 19.5 |
28,750 7,800 |
|
|
On the first On the next |
280,000 40,000 |
- 20 |
36,550 8,000 |
|
|
On the first In excess of |
320,000 320,000 |
- 22 |
44,550
|
6.3 Changes to Grandparent Caregiver Relief
Working mothers will be allowed to claim for Grandparent Caregiver Relief from the YA 2020 for taking care of handicapped, unmarried child without age limit. The other conditions remain unchanged but the child age limit of 12 years old will be removed from the YA 2020.
6.4 Lapse of the Non-Ordinary Resident (“NOR”) Scheme
Under the NOR scheme, foreigner working in Singapore will be granted with the benefits under this scheme when they travel outside Singapore for works for more 90 days in a year. The taxable employment income will be apportioned based on the number of days present in Singapore, with conditions. The scheme will lapse after YA 2020. The last batch of qualifying taxpayers will be granted with the scheme from YA 2020 to YA 2024.
|
Assessable Income for Year of Assessment 2018 up to $28,000 |
Annual Value of Home as at 31 Dec 2018 |
|
|
Up to $13,000 |
More than $13,000 and up to $21,000 |
|
|
Aged 21 and above in 2019 |
$300 |
$150 |
7.2 Workforce Bicentennial Bonus
The following workforce bicentennial bonus will be given to eligible Singaporeans in 2019:
|
Age in 2018 |
10% of the Total Annual WIS Payment for Work Year 2018 |
|
|
Employee |
Self-Employed Persons |
|
|
35 to 44 |
Between $100 and $150 |
$100 |
|
45 to 54 |
Between $100 and $220 |
Between $100 and $147 |
|
55 to 59 |
Between $100 and $290 |
Between $100 and $194 |
|
60 and above |
Between $100 and $300 |
Between $100 and $240 |
7.3 CPF Top-Up
A one-off CPF top-up to Special or Retirement account will be given as follows:
|
Age in 2019 |
Combined CPF Ordinary and Special Account or Retirement Account Balance as at 31 Dec 2018 |
|
|
Up to $30,000 |
More than $30,000 and less than $60,000 |
|
|
50 to 54 |
$500 |
$300 |
|
55 to 64 |
$1,000 |
$600 |
7.4 Service and Conservancy Charges (S&CC) Rebate
|
HDB Flat Type |
FY 2019 S&CC Rebate (no. of months) |
||||
|
April 2019 |
July 2019 |
October 2019 |
January 2020 |
Total for FY2019 |
|
|
1- and 2-room |
1 |
1 |
1 |
0.5 |
3.5 |
|
3- and 4-room |
1 |
0.5 |
0.5 |
0.5 |
2.5 |
|
5-room |
0.5 |
0.5 |
0.5 |
0.5 |
2 |
|
Executive / Multi-Generation |
0.5 |
0.5 |
0.5 |
- |
1.5 |
Mr Chng Chung Hing
Tax Director
Accredited Tax Advisor
Loke Lum Tax Advisory Pte Ltd
Compiled on 19th February 2019