Budget Commentary - Singapore

Local Today.
Global Tomorrow.

Corporate Tax

50% corporate income tax rebate capped at $25,000 for Year of Assessment (YA) 2017. Tax rebate extended to YA 2018, at a reduced rate of 20% of tax payable and subject to a cap of $10,000. 

New Intellectual Property Development Incentive scheme introduced.  

Tax deduction for research and development cost sharing agreements payments liberalised.

Simplification of the following tax incentives: 

  • Global Trader Programme.
  • Finance and Treasury Centre scheme. 

The Aircraft Leasing Scheme will be extended and enhanced. 

Initiatives to help strengthen the competitiveness of the financial sector:

  • Withholding tax exemption on payments made to non-resident non-individuals for structured products offered by financial institutions is extended.
  • Certain incentives under the Project and Infrastructure Finance incentive package are extended. 

Incentives schemes extended are:

  • The withholding tax exemption on payments for international telecommunications submarine cable capacity under an Indefeasible Rights of Use agreement.
  • The Integrated Investment Allowance scheme.

Incentives or deductions that are withdrawn or allowed to lapse: 

  • 250% tax deduction for donation of computers.
  • Accelerated Depreciation Allowance for Energy Efficient Equipment and Technology scheme.
  • Accelerated writing-down allowances for acquisition of intellectual property  rights for media and digital entertainment content.
  • The International Arbitration Tax incentive.

Personal Tax

Personal income tax rebate of 20% of tax payable and capped at $500 for YA 2017.

Other changes

Increase in water prices, fees and imposition of a 10% Water Conservation Tax on the NEWater tariff.

Proposed carbon tax from 2019. 

A volume-based diesel tax will replace lump-sum tax on diesel cars.

The Approved Building Project scheme allowed to lapse.

Singapore Budget 2017

PwC explores and provides first-hand insights from a tax perspective on a series of important decisions that will drive the course of the country’s future success.

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