Singapore: Budget 2018 | KPMG | BE
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Singapore: Budget 2018

Singapore: Budget 2018

The Finance Minister on 19 February 2018, delivered a budget for 2018 that includes certain tax-related measures.

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  • One provision is intended to encourage companies to reduce emissions, and outlines details of a previously announced carbon tax to be implemented from 2019.
  • Another measure is aimed at helping domestic companies cope with near-term cost pressures, with the extension of a wage credit scheme for three more years.
  • A 250% tax deduction for donations made to “institutions of public character” is also extended for another three years.

 

For business taxpayers, the budget includes the following measures:

  • Corporate income tax rebate enhancement and extension
  • Reduced thresholds for start-up tax exemption schemes
  • Funding support of up to 70% for adopting pre-scoped, off-the-shelf solutions to improve productivity
  • Funding support of up to 70% for firms to build a range of capabilities (such as innovation)
  • Enhanced tax deduction for qualifying intellectual property (IP) licensing costs or registration costs
  • Increased tax deduction for staff costs and consumables incurred with respect to qualifying research and development (R&D) costs

 

The goods and services tax (GST) rate will increase from 7% to 9%, at some point between 2021 and 2025, and GST will be introduced on business-to-business and business-to-consumer imported services on or after 1 January 2020.

 

Read a February 2018 report that also provides a set of charts and tables showing the tax effects of the budget 2018, as prepared by the KPMG member firm in Singapore

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