Singapore Budget 2020

Investing in Change for Future Generations

Watch our Webinar OnDemand

Watch as our experts share their insights on how the Budget measures will impact your business.

Whether it's tax measures to help businesses cope with immediate headwinds or enhancements made to our tax systems to enable economic growth, there’s no question that Singapore Budget 2020 is centred on supporting businesses through these trying times and positioning the country and its people for the next bound of growth.

Watch as our experts breakdown the Budget measures that can help your business address your near-term challenges and long term needs.

  • $10.9 billion

    estimated FY 2020 overall budget deficit (2.1% of GDP)

  • $83.6 billion

    expected expenditure, 7% higher than in FY 2019

  • $5.6 billion

    worth two packages to tide over current economic downturn

  • $6 billion

    set aside for the Assurance Package in the GSTV Fund

Key tax highlights

Corporate income tax

  • Corporate income tax rebate at a rate of 25% of tax payable for YA 2020, capped at $15,000.
  • Automatic additional two months extension of interestfree instalments for payment of tax on ECI filed within specified period.
  • The carry-back relief scheme is enhanced by increasing the carried back years to 3 immediate preceding YAs from the current 1 YA, for YA 2020. Taxpayers may also elect to carry back based on an estimated amount of qualifying deductions, subject to conditions.
  • Changes to capital allowance (CA) claim.
    1. Option to accelerate to:
      –  2-year CA claim from the 3-year for qualifying assets acquired in the basis period for YA 2021. Once accelerated write-off is selected, no deferment of claims is allowed.
      –  1-year renovation and refurbishment claim from the 3-year (under section 14Q of the Income Tax Act) for qualifying expenditure incurred during the basis period for YA 2021.
    2. Option to simplify section 19 CA claims for qualifying plant and machinery acquired in or after FY 2022 or when acquired prior to the FY, CA claims were deferred.

View more

Goods and services tax

  • GST rate to remain at 7% in 2021.
  • GST will continue to be absorbed on publicly subsidised healthcare and education.
  • Assurance Package will be provided when the GST rate is raised.

View more

Tax incentives

  • Extend DTDi scheme to 31 December 2025 and the scope is expanded to include qualifying third-party consultancy costs and other qualifying overseas business missions costs for expenses incurred on or after 1 April 2020.
  • Extended M&A scheme to cover qualifying acquisitions made on or before 31 December 2025. However, stamp duty relief will lapse for instruments executed on or after 1 April 2020 and no waiver for the condition that the acquiring company must be held by an ultimate holding company that is incorporated in and is a tax resident of Singapore.
  • Extend the upfront certainty of non-taxation of companies’ gains on disposal of ordinary shares to 31 December 2027.
  • Extend the IBD and IBD-CI schemes to 31 December 2025. However, the IBD-MHL scheme will lapse after 31 March 2020.
  • Extended venture capital funding for Singaporebased companies, the Section 13H scheme and Fund Management Incentive to 31 December 2025.
  • Section 14E incentive will lapse after 31 March 2020.
  • Extended withholding tax exemption for non-resident mediators and arbitrators, and the 10% concessionary withholding tax rate for NRPEs to 31 March 2022.
  • Incentives extended to 31 December 2025 include LIA and section 19D WDA.
  • Incentives extended to 31 December 2026 include MSI scheme, WHT exemption for qualifying payments made on qualifying financing arrangements, FTC and GTP.
  • Lapsed of the Angel Investors Tax Deduction after 31 March 2020.

View more

Other tax changes

  • Property tax rebate ranging from 10% to 30% for the period 1 January 2020 to 31 December 2020, for qualifying commercial properties such as licensed hotels, serviced apartments, and prescribed Meetings, Incentive, Conferences and Events (MICE) venues.
  • Changes to road tax for Electric Vehicles and Hybrid Cars.

View more

Views from experts

loading-player

Playback of this video is not currently available

Who are the winners for this year's Budget?

Local enterprises with transformation initiatives underway, the workforce across all age groups, industries most hard-hit by COVD-19 and there's a "bonus" for all of us - the GST rate will not be raised in 2021. Watch Abhijit Ghosh roundup SG Budget 2020 in 2 minutes.

loading-player

Playback of this video is not currently available

Like how ships need good captains, SMEs need strong leaders.

One of the things that stood out in SGBudget2020 is the call for greater enterprise leadership to steer SMEs through these changing times. Hear from our Entrepreneurial and Private Business Partner, Dr. Wilson Chew, on his take of what this year’s Budget measures mean for SMEs.

News

{{filterContent.facetedTitle}}

Contact us

Chris Woo

Tax Leader, PwC Singapore

Tel: +65 9118 0811

Abhijit Ghosh

Partner, Tax Markets Leader, PwC Singapore

Tel: +65 8223 0698

Paul Lau

Partner, Tax, PwC Singapore

Tel: +65 6236 3733

Follow us