YA	Rebate Rate	Cap
2021	N/A	N/A
2020	25%	15,000
2019	20%	10,000
2018	40%	15,000
2017	50%	25,000
2016	50%	20,000
2013 – 2015	30%	30,000

For comparison, we append below corporate tax rates for selected jurisdictions:

Jurisdiction	Corporate Tax Rate (%)	Jurisdiction	Corporate Tax Rate (%)
Hong Kong	16.5	Vietnam	20
Taiwan	20	China	25
Thailand	20	The Philippines	30
South Korea	25	India	30
Indonesia	22	Japan	30.62
Malaysia	24

2. Tax Changes for Businesses

2.1 Extension of the Enhanced Capital Allowance (“CA”) and Loss Carry Back Scheme
The carry-back relief scheme was enhanced during YA 2020 to allow qualifying deductions to be carried back up to three immediate preceding YAs, capped at $100,000.  This scheme has been extended to apply to qualifying deductions for YA 2021.

2.2 Extension of the Option to Accelerate the Write-off of Plant and Machinery Cost
Taxpayers who incur capital expenditure on the acquisition of plant and machinery during YA2021 have an option to accelerate the write-off of the cost of acquiring such plant and machinery over 2 years at 75% in the first year and the remaining 25% in the second year.  This option has been extended to apply to plant and machinery acquired during YA 2022.

2.3 Extension of the Option to accelerate Renovation and Refurbishment (“R&R”) Deductions
Currently, qualifying R&R expenditure is claimable over 3 consecutive YAs, starting from the YA in which the R&R expenditure is incurred with a cap of $300,000 for every period of 3 years.This option was enhanced in YA 2021 giving taxpayers an option to claim R&R deduction in one YA with the same $300,000 cap.  This option has been extended to apply to qualifying expenditure incurred during YA 2022.  

2.4 Enhancement of the Double Tax Deduction for Internationalisation (“DTDi”) Scheme
Under the DTDi scheme which remains valid till 31 December 2025, businesses are allowed a tax deduction of 200% on qualifying market expansion and investment development expenses, subject to approval for amounts above $150,000.  Under the budget measures, enhancements to the scope of the DTDi scheme and qualifying expenses will apply to eligible expenses incurred on or after 17 February 2021.Enterprise Singapore will provide further details of the changes by 28 February 2021.

2.5 Extension of the 250% Tax Deduction for Qualifying donations
The current entitlement to a 250% tax deduction for qualifying donations made to Institutions of a Public Character (“IPC”) has been extended to 31 December 2023.  All other conditions of the scheme remain the same.  

2.6 Extension of the Business and IPC Partnership Scheme (“BIPS”)
Currently qualifying persons can enjoy a total of 250% tax deduction on qualifying expenditure such as wages incurred in respect of the provision of services or secondment of an employee to an IPC.  This scheme which will lapse by 31 December 2021 has been extended till 31 December 2023.  

2.7 Extension of the Investment Allowance for Automation Projects
Currently, companies can claim 100% investment allowance (“IA”) in respect of qualifying capital costs incurred on approved automation projects. The IA is given in addition to the usual capital allowance available for purchase of plant and machinery capped at S$10 million per automation project. This scheme which will lapse by 31 March 2021 has been extended till 31 March 2023.  

2.8 Extension and Enhancement of the Investment Allowance for Emissions Reduction
The Investment Allowance for Emissions Reduction (previously known as IA for Energy Efficiency) improvement projects will be expanded to include projects involving reduction of greenhouse gas emissions with eligibility conditions streamlined and subject to approval.  This scheme which will lapse by 31 March 2021 will be extended till 31 December 2026. EDB will release further details of the changes by 30 June 2021.

2.9 Withdrawal of the Accelerated Depreciation Allowances for Highly Efficient Pollution Control Equipment (“ADA-PCE”) Scheme
The ADA-PCE scheme which accelerates the write-off of the cost of acquiring highly PCE equipment over one year has been withdrawn from 17 February 2021.

3. Goods and Services Tax

3.1 Extension of Goods and Services Tax (“GST”) to Low-value Goods
Currently, low-value goods (below $400) which are imported via air or post are not subject to GST.  Under the budget measures, with effect from 1 January 2023, such low-value goods will be subject to GST.  This will be effected via the Overseas Vendor Registration and reverse charge regimes.  Implementation details are pending industry consultation.

3.2 Extension of GST to Business-to-Consumer (“B2C”) Imported Services
Currently, GST applies to B2C digital services and Business to Business (“B2B”) imported services.  Under the budget measures, GST will apply to B2C imported non-digital services with effect from 1 January 2023.  This will be effected via the Overseas Vendor Registration regime.  Implementation details are pending industry consultation.  

3.3 Change in Basis for Application of Zero-Rating to Supply of Media Sales
Currently, for GST purposes, the basis for determining whether zero-rating applies to a supply of media sales is based on the place of circulation of the advertisement.  With effect from 1 January 2022, the basis for determining whether zero-rating applies to a supply of media sales will be based on the place where the customer and direct beneficiary of the service belong.  

4. Extensions to Financial Sector Deductions and Exemptions

4.1 Extension and Refinement of the Double Tax Deduction (“DTD”) for Costs Attributable to Retail Bonds
Currently, bond issuers who carry on a trade or business in Singapore, are allowed to claim a tax deduction of up to 200% on qualifying upfront costs attributable to retail bonds.  This scheme which was scheduled to lapse in respect of bonds issued after 18 May 2021 has been extended to 31 December 2026 with refined scope to costs incurred attributable to rated retail bonds. MAS will provide further details of the changes by 31 May 2021.

4.2 Extension and Rationalisation of the Withholding Exemption for Financial Sector
The withholding tax exemption applicable to banks (or specified entities) to non-resident persons or Singapore permanent establishments which will lapse in respect of contracts made up to 31 March 2021 has been extended till 31 December 2026.  MAS will release further details of all changes by 31 May 2021.

4.3 Extension of the Withholding Exemption on Payments made for Structured Products
The current withholding tax exemption for payments made from structured products offered by financial institutions in Singapore which was scheduled to lapse in respect of contracts taking effect after 31 March 2021 has been extended to 31 December 2026.  MAS will release further details of the changes by 31 May 2021.

4.4    Extension of the Withholding Exemption on Payments for Over-The-Counter (“OTC”) Financial Derivatives
The current withholding tax exemption for payments made from OTC financial derivatives by financial institutions in Singapore which was scheduled to lapse after 31 March 2021 has been extended to 31 December 2026.  MAS will release further details of the changes by 31 May 2021.

5. Extensions for Not-for Profit Organisations

Extension of the Tax Incentive for Not-for-Profit (“NPO”)
The current tax exemption on income derived by an approved NPOs which was scheduled to lapse after 31 March 2022 has been extended to 31 December 2027.  

6. Tax Changes for Insurance Sector

Lapse of the Insurance Business Development – Specialised Insurance (“IBD-SI”) Scheme

The current IBD umbrella scheme which provides for concessionary tax rates for award recipients on qualifying income derived from carrying on specialized insurance and reinsurance business will be allowed to lapse after 31 August 2021.

7. Other Tax Changes–Vehicles

7.1 Enhancement of the Electric Vehicle Early Adoption Incentive
The current incentive of 45% rebate off the Additional Registration Fee (“ARF”) for electric cars and taxis from January 2021 to December 2023 has a cap of $20,000 and an ARF floor of $5,000.  The ARF floor of $5,000 will be reduced to $0 from January 2022.

7.2 Revision to petrol duty rates with offsetting measures
Petrol duty rates for Premium and Intermediate grade petrol will be increased.  To ease the transition to the revised petrol duty rates, a road tax rebate will be provided for a period of one year.

8. Changes to Individual Income Tax

8.1    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 Year of Assessment (“YA”) 2017
	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

9. Year of Assessment 2021 tax filing due dates

We wish to take this opportunity to remind our clients of the tax filing due dates for the Year of Assessment 2021: 

Personal Tax	filing due on 18 April 2021 (By e-filing)
Partnerships, Clubs, Associations and Management Corporations	filing due on 15 April 2021
Corporate Tax	filing due on 30 November 2021