Tax Services

• Financial Services Tax Bulletin, October 2008
• Customs and Trade updates
• The MAS issues a new circular on the tax exemption scheme for qualifying family-owned investment holding companies (FIHCs)
• The MOF issues draft Income Tax (Amendment) Bill 2008, Goods and Services Tax (Amendment) Bill 2008 and Stamp Duties (Amendment) Bill 2008 for public feedback
• The MOF seeks public feedback research and development (R&D) guidance
• IRAS issues circulars on:

  • The Equity Remuneration Incentive Scheme (ERIS)
  • Transfer pricing consultations
  • The Not Ordinarily Resident (NOR) scheme (revised circular)
  • Special allowance for furniture, fittings and installations
  • The tax exemption for foreign-sourced dividends, branch profits and service income (revised circular)
  • Advance rulings. This is a revision to the circular to announce that IRAS will continue to absorb the 2% increase in GST on fees for advance rulings until 31 December 2008
• Other IRAS income tax circulars have been streamlined and revised to reflect updates to the legislation and other consequential changes. No significant changes are noted
• IRAS simplifies the tax clearance procedure for companies applying for strike-off. by removing the requirement for such companies to obtain tax clearance. Instead, companies which have submitted their tax returns up to the date of the cessation of business and have settled all outstanding tax matters may proceed to apply for a strike off
• Employers with 100 or more employees must participate in the Auto-Inclusion Scheme under which they are required to file the employment income of their employees electronically by 1 March 2009. These employers should have received a letter from IRAS by July 2008, and those who did not should inform IRAS. Employers with fewer than 100 employees are also required to file electronically if they have received a notice from IRAS. Other employers are given until 2010 to join the Auto-Inclusion Scheme. These employers are to prepare Forms IR8A and IR8S and Appendices 8A and 8B and give them to employees not later than 1 March 2009
• The MOM issues a circular on the higher tax deduction for medical expenses
• Enhancements to the marriage and parenthood tax measures announced during the Prime Minister’s National Day Rally Speech
• GST updates:

  • IRAS sought feedback on a draft circular detailing a new Hand-carried Exports Scheme which will be introduced on 1 April 2009. The scheme will apply to all GST-registered persons that have exports hand-carried through Changi International Airport, and who wish to have those export sales zero-rated. The consultation period ended on 30 September 2008
  • GST-registered traders will be required to report their revenues in their GST returns with effect from February 2009
  • The Major Exporter Scheme circular was revised to reflect recent changes to the renewal process
  • IRAS issues a revised circular on GST and the gold jewellery industry
• Double taxation agreement update:

  • Singapore and Uzbekistan signed a treaty on 24 July 2008. This treaty is not yet in force

  For further details, please call your usual PricewaterhouseCoopers contact.

Revenue legislation updates

• The following subsidiary legislation which extend the qualifying debt securities scheme to include break costs, prepayment fees and redemption premiums:
• The Income Tax (Qualifying Debt Securities) (Amendment) Regulations 2008
• The Income Tax (Concessionary Rate of Tax or Exemption for Income Derived from Debt Securities) (Amendment) Regulations 2008
• The Income Tax (Exemption of Income of Foreign Trusts) (Amendment) Regulations 2008
• The Income Tax (Qualifying Project Debt Securities) Regulations 2008
• Notice to Employers
• The Stamp Duties (Diplomatic and Consular Members) (Remission) Rules 2008
• The Estate Duty (Abolition) Act 2008
• Updates on exemptions of interest and other payments for economic and technological development, to the list of approved banks and notices of appointments

For further details, please call your usual PricewaterhouseCoopers contact.

Articles of Interest