Singapore’s Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam delivered the 2012 budget address to Parliament on February 17, 2012, in which he presented a series of tax changes, some of which are highlighted below:
- For individuals, with effect from year of assessment (YA) 2013, the amount of enhanced earned income relief (EIR) and handicapped EIR will be increased to encourage elderly workers to stay employed and to provide more support to handicapped workers.
- To provide more support for businesses to invest in innovation and productivity, the Productivity and Innovation Credit (PIC) scheme will be enhanced by increasing the cash payout rate from 30 percent to 60 percent for up to S$100,000 of qualifying expenditure, and allowing expenditure incurred on R&D cost-sharing agreements to qualify as expenditure on R&D and enjoy PIC deduction.
- With effect from Oct. 1, 2012, the import and supply of investment-grade gold, silver and platinum will be exempt from goods and services tax.
- To further support companies carrying out M&A, 200 percent tax allowance will be granted on the transaction costs incurred on qualifying M&A, subject to an expenditure cap of S$100,000 per YA.
- For withholding tax, the payer will be allowed one additional month to file and pay the tax, i.e. by the 15th of the second month following the date of payment to the non- resident. This change will take effect for all payments made to non-residents on or after July 1, 2012.
For the complete speech, please click here.