Budget Commentary - Singapore

Caring and Sustained Growth
Securing our Future

Goods and Services Tax

  • With effect from 19 February 2019, the GST import relief for value of goods bought overseas is reduced to the following:
    • $100 (from $150), for travellers who spend less than 48 hours outside Singapore.
    • $500 (from $600), for travellers who spend 48 hours or more outside Singapore.
  • Extend the concession for partial recovery of input GST for qualifying funds to 31 December 2024.
  • Extend the GST remission for S-REITs and Singapore-listed RBTs in the infrastructure business, ship leasing and aircraft leasing sectors to 31 December 2025.

Corporate income tax

  • Extend writing down allowance for capital expenditure incurred on acquiring qualifying intellectual property rights to YA 2025.
  • Extend the 100% IA to include projects approved from 1 April 2019 to 31 March 2021.
  • Extend the concessions for S-REITs and REITs ETFs to 31 December 2025 and remove sunset clause for the tax exemption on distributions received by individuals.
  • Extend and refine the tax incentive schemes for qualifying funds (under Sections 13CA, 13R and 13X) managed by Singapore-based fund managers to 31 December 2024.
  • AUT scheme to lapse after 18 February 2019 and DUT after 31 March 2019.

Personal income tax

  • Personal income tax rebate of 50% of tax payable by tax resident individuals for YA 2019, subject to a cap of $200.
  • Grandparent Caregiver Relief for tax resident working mothers with handicapped and unmarried dependent children regardless of the child's age with effect from YA 2020.
  • NOR scheme will lapse after YA 2020.

Other changes

  • Restructure diesel tax regime with effect from 18 February 2019, including:
    • Increase in the excise duty on diesel fuel to $0.20 per litre.
    • Permanently reduce the annual special tax for diesel cars and taxis by $100 and $850 respectively.
    • Road tax rebates for commercial diesel vehicles and additional cash grants for diesel buses ferrying students.
  • Reduce duty-free allowance for liquor products to two litres (from three litres) with effect from 1 April 2019.
  • The concessionary tax treatment under the Property Tax (Tourist Projects) Order will lapse after 18 February 2019.


Budget Seminar 2019

Join PwC at our annual Budget Seminar on Monday, 25 February 2019 to find out how the Budget measures will impact your business.

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Singapore Budget 2019

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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