Budget 2018 was announced by the Singapore Government on 19 Feb 2018.
The Government continues to focus on long term investments to prepare Singapore for three major shifts in the coming decade – economic rise in Asia, emerging new technologies and ageing population.
Several key tax initiatives will be implemented by phases to finance the growing expenditures in areas like healthcare and infrastructure. Singapore Government continues to encourage corporations to innovate and harness new technologies in order to stay competitive in the digital economy.
Key highlights relevant to corporations:
- Wage Credit Scheme to continue for another three years.
- Corporate income tax rebate will be increased to 40% of tax payable, capped at S$15,000 for YA 2018. It will extend the corporate tax rebate to 2019, at the rate of 20% of tax payable, capped at S$10,000.
- Enhanced tax deductions on qualifying expenditure on R&D, registration of IP and IP in-licensing from YA 2019.
- Adjustments to lower tax exemptions for start-ups and partial tax exemptions from YA 2020.
- The Government plans to raise GST by 2%-points, from 7% to 9%, sometime in the period from 2021 to 2025. Exact timing of GST increase depends on economy, expenditure growth and existing taxes.
- New grants and channels available for corporations who seek innovations and internationalization.
For more information, please contact Linda Wong at firstname.lastname@example.org or Check How Tan at email@example.com .