With all eyes on the goal of Smart Nation and a vibrant future economy, we are all waiting to find out what fiscal changes the upcoming 2018 Singapore Budget Announcement will put forth to propel the country forward.
What can we expect in this year’s Budget? Here are the top 3 fiscal changes on our wish list.
Technology is rapidly changing service delivery in both the public and private sectors. Against the backdrop of Singapore’s continuing digital transformation to become a Smart Nation, Prime Minister Lee Hsien Loong and Finance Minister Heng Swee Keat have reiterated the need for the country to have sustainable revenues for investing in its future, and yet remain competitive internationally. It is in the light of these considerations that PwC suggests the following changes to enhance the fiscal environment to make it more conducive for Singapore to continue with this transformation, whilst at the same time encourage innovation and enterprise.
Key recommendations to help Singapore embrace digital disruption include enhancement to the writing down allowance for acquisition of intellectual property, and enhancements on the research and development (R&D) front to promote the creation of a more conducive environment to anchor high value added activities and intellectual property ownership (IP) in Singapore. We also submit measures to encourage local businesses to reinvent themselves to expand their footprint locally and overseas; these include enhancement to the double deduction for internationalisation and tax concessions for training and to help companies “go digital”.
We have separately provided the Monetary Authority of Singapore (MAS) with suggested tax measures relating to the financial sector.