Extend the Double Tax Deduction (“DTD”) for Internationalisation scheme To support businesses in their internationalisation efforts, the DTD for internationalisation scheme will be extended till 31 March 2020. Sections 14B and 14K [Clauses 13 and 14] Enhance the Land Intensification Allowance (“LIA”) To encourage higher industrial land productivity, the LIA scheme will be extended to buildings used by a user or multiple users who are related, for one or more qualifying trades or business. A new criterion requiring LIA applicants to be related to the qualifying user or users of the building will also be introduced. The change is effective from 25 March 2016. Section 18C [Clause 19] Provide an election for period for intellectual property rights (“IPRs”) To recognise varying useful lives of IPRs while maintaining a simple and certain tax regime, companies or partnerships may elect for their Section 19B writing down allowance to be granted over a period of 5, 10 or 15 years. The change will apply to capital expenditure incurred in respect of qualifying IPR acquisitions made during any basis period relating to YA 2017 to YA 2020. Section 19B [Clause 20] Consequential amendment to Section 37I [Clause 22] Introduce a specific mechanism for IPR To ensure that Section 19B writing down allowances are granted based on transacted values that are reflective of the open market value of an Section 19B [Clause 20]
expenses, they will be allocated between the pre-incentive and incentive income based on income proportion This change will take effect for Section 14U and pre-commencement expenses that are incurred from 25 March 2016. Introduce mandatory electronic filing (“e-filing”) for corporate income tax returns In line with government’s direction for more effective delivery of public services and to be aligned with the Smart Nation vision to harness technology to enhance productivity, mandatory e-filing of CIT returns will be implemented in stages as follows: Sections 8A and 63 [Clauses 3 and 43] Extend the Not-for-Profit Organisation (“NPO”) tax incentive To continue promoting Singapore as a hub for NPOs, the NPO tax incentive will be extended till 31 March 2022. Section 13U [Clause 10] Withdraw the tax exemption on income derived by As the scheme is assessed to be no longer relevant, the tax exemption for non-residents trading in Singapore in specified commodities via Section 13 [Clause 5]
trading in Singapore in specified commodities via consignment arrangements consignment arrangements will be withdrawn from YA 2018. Withdraw the Investment Company scheme As the scheme is assessed to be no longer relevant, the Approved Investment Company scheme will be withdrawn after 1 January 2017. Section 10A [Clause 4] Enhancing the Global Trader Programme (Structured Commodity Finance) (“GTP(SCF)”) scheme To strengthen Singapore’s trade finance capabilities and encourage more SCF activities to be done in Singapore, the GTP(SCF) scheme is enhanced with effect from 25 March 2016 to include the following new qualifying activities: Consolidation, management and distribution of funds for designated investments; Treasury advisory services in relation to mergers and acquisitions; and Streaming financing. Section 43P [Clause 36] Introduce a cap of $80,000 on personal income tax reliefs To enhance the progressivity of our personal income tax regime, the total amount of personal income tax reliefs that an individual can claim will be capped at $80,000 per YA with effect from YA 2018. Sections 39A, 40B, 40C and 40D [Clauses 25, 26, 27 and 28]