Singapore – Budget Provides for Rebate of 20-Percent of Tax Payable

Singapore – Budget Provides for Rebate of 20-Percent of

This GMS Flash Alert reports on a measure in the recent Singapore budget that provides for a one-off personal income tax rebate of 20 percent of tax payable which is capped.

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In his 2017 Budget Statement1 delivered on 20 February 2017, the Finance Minister for Singapore announced that a personal income tax rebate of 20 percent of tax payable, capped at S$500, will be granted to all resident individuals for the Year of Assessment (“YA”) 2017 (i.e., for income earned in the year 2016).

For a complete analysis of the Budget, see “Singapore Budget 2017 Moving Forward Together,” a publication of the KPMG International member firm in Singapore. 

WHY THIS MATTERS

Non-Singapore citizens who have ceased Singapore employment, and who are eligible for the 20-percent rebate, should make sure the Inland Revenue Authority of Singapore (“IRAS”) has a current mailing address on file in order to receive the amended Notice of Assessment (“NOA”) and refund cheque.  Otherwise, the IRAS will send the amended NOA and refund cheque to the individual’s last known address.  

Where a tax equalization policy is applied, employers will have to take certain steps if they are requesting a refund on behalf of their employees eligible for the 20-percent rebate. 

Tax Rebate: Further Details

Based on the progressive tax rates, resident taxpayers will receive the maximum rebate of S$500 if their chargeable income is at least S$67,858.

KPMG NOTE

Where an employer is responsible for the foreign employee’s Singapore tax under a corporate tax equalization policy, the employer will have to provide required documents (e.g., an authorisation letter from the employee) to IRAS to request the refund cheque to be issued in the name of the employer.  Otherwise, the employer would need to recover the funds from the tax refund directly from the employee.  

Employers should clearly communicate to affected employees, in general terms, the steps being taken and why the refund is being appropriated by the employer (if such is the case). 

FOOTNOTE

1  See the Singapore Ministry of Finance website for the budget speech and related documentation. 

CONTACTS

For additional information or assistance, please contact your local GMS or People Services professional or one of the following professionals with the KPMG International member firm in Singapore:

 

BJ Ooi, Partner, Head of GMS

Tel. +65 6213 2657

boonjinooi@kpmg.com.sg

 

Dennis McEvoy, Partner

Tel. +65 6213 2645

dennismcevoy@kpmg.com.sg

 

The information contained in this newsletter was submitted by the KPMG International member firm in Singapore.

© 2017 KPMG Services Pte Ltd (Registration No. 200003956G), a Singapore incorporated company and a member firm of the KPMG network of independent member firms affiliated with KPMG International cooperative, KPMG International. All rights reserved.

Flash Alert is an Global Mobility Services publication of KPMG LLPs Washington National Tax practice. The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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