On 7 December 2020, Singapore published the Income Tax (Amendment) Act 2020 and the Goods and Services Tax (Amendment) Act 2020 in the Official Gazette. The two Acts were approved in parliament on 3 November and assented to by the President on 25 November. The tax measures are summarized as follows:
- A Corporate Income Tax (CIT) Rebate for Year of Assessment (YA) 2020 is 25% of tax payable, capped at SGD 15,000 per company.
- An extension of the Double Tax Deduction for Internationalization (DTDi) scheme until 31 December 2025.
- An increase in the number of YAs for which the current year unabsorbed capital allowance (CA) and trade losses for a YA may be carried back, with qualifying deductions for YA 2020 allowed to be carried back up to 3 immediately preceding YAs (instead of 1);
- An extension of the Mergers & Acquisitions scheme to cover qualifying acquisitions made on or before 31 December 2025.
- An extension of Extend the Finance and Treasury scheme for finance and treasury activities until 31 December 2026.
- An extension of the tax incentives for venture capital funds and venture capital fund management companies until 31 December 2025.
- The introduction of restrictions on tax deductions and allowances in relation to capital grants, including that for capital grants approved on or after 1 January 2021.
- The introduction of a surcharge for tax avoidance arrangements from YA 2023 and subsequent YAs equal to 50% of the amount of additional income tax imposed by the Comptroller.
