The Budget for 2013 was presented to Parliament by the Finance Minister on 25 February 2012. The Budget aims at increasing productivity and growth. Major changes include income tax rebates and restructuring of the Progressive Property Tax Regime (PPTR). Generally the Budget will apply from the year of assessment 2014.
The main changes are summarized below:
Corporate taxation
A 30% corporate income tax rebate capped at SGD 30,000 per year of assessment (YA) will be granted to all companies for 3 years from YA 2013 to YA 2015. Investment holding companies and property development companies incorporated from 26 February 2013 will be excluded from the start-up tax exemption scheme.
Personal taxation
A personal income tax rebate will be granted to all resident individuals for YA 2013. The rebate is given at 30% for individuals below 60 years and at 50% for individuals aged 60 and above as at 31 December 2012. Both rebates are subject to a cap of SGD 1,500 per taxpayer. With effect from YA 2015, changes will be made to the taxation of certain accommodation benefits enjoyed by employees.
