PERSONAL TAX

Recognising the contributions of our NS men

- Additional tax relief of $2,000 for NS key command and Staff Appointment holders

-The basis period for NS Men Tax relief will be on preceding work year

Boosting Creativity

-lower tax on income of inventor or author of approved invention/innovation extended to:

i) a company wholly owned by the inventor / author

ii) interactive digital media and industrial design

CORPORATE TAX – No change in existing corporate tax of 20%. The Singapore government is of the view that Singapore corporate tax remains one of the lowest in the world and would remain competitive if status quo is maintained.

Changes include:

i) Enhancement to claim industrial building allowance

ii) Tax deduction for employee stock options or share awards through treasury shares

iii) Record keeping requirements to be reduced to 5 years

iv) Approved Holding Company (AHC) incentive which treats gains from sale of shares in approved subsidiary companies as not taxable

OTHER TAX UPDATES

IRAS issues a circular on Income Tax Implications arising from the adoption of FRS 39 – Financial Instruments: Recognition and Measurement

One year loss carry back with effect from Year of Assessment 2006 is subject to a cap of $100,000/- and meeting the substantial shareholding and same business tests. It applies to all businesses including sole proprietorship and partnership.