The Finance Minister of Singapore presented The Budget for 2015 to Parliament by on 23 February 2015. The proposals include measures regarding:

  • Corporate taxation;
  • Individual taxation;
  • Goods and services tax; and
  • Other taxes and measures.

The main highlights of the budget for 2015/16 are summarized below:

Corporate taxation:

  • Tax rebate- A 30% corporate income tax rebate capped at SGD 20,000 per YA will be granted to all companies for YAs 2016 and 2017.
  • Tax incentives- The Budget provides various tax incentives and more details on these changes will be released by May 2015.

 Individual taxation:

  • A new income tax rate structure will take effect from YA 2017
  • A personal income tax rebate of 50% capped at SGD 1,000 per taxpayer will be granted to all tax resident individuals for YA 2015.
  • An individual who derives passive rental income from residential property in Singapore may claim a specified amount of rental expenses (based on 15% of the gross rental income) in lieu of claiming the actual amount of deductible expenses incurred (excluding interest expenses). This change, however, does not apply to rental income derived by an individual through a partnership in Singapore and from a trust property. Further details of this change will be released by May 2015.
  • Income derived by non-tax resident mediators for mediation works carried out in Singapore from 1 April 2015 to 31 March 2020 will be exempt from tax.
  • The current tax exemption on income derived by non-residents on or after 3 May 2002 from arbitration work carried out in Singapore will be reviewed on 31 March 2020.
  • The self-employed tax relief cap will be raised to SGD 37,740 from YA 2017 onwards.

Goods and services tax:

  • Goods and services tax (GST), which (unless otherwise indicated) will apply from the year of assessment (YA) 2016:

-Pre-registration claims: The Inland Revenue Authority of Singapore (IRAS) will simplify the pre-registration claim rules to allow newly GST-registered business to claim pre-registration GST in full on the following goods acquired within 6 months before the GST registration date of the business:

            – Goods held by the business at the point of registration; and

            – Property rental, utilities and services that are not directly attributable to any supply made by the business before GST registration. This change also will take effect from 1 July 2015. IRAS will release further details by June 2015.

 Other taxes and measures:

–          The CPF salary maximum will be increased from SGD 5,000 to SGD 6,000.

–          The Supplementary Retirement Scheme contribution cap will be increased as follows:

–          SGD 15,300 (Singaporeans/permanent residents); and SGD 35,700 (foreigners).