On 16 February 2021, the following tax changes were announced by Deputy Prime Minister and Minister for Finance, Mr. Heng Swee Keat, in his Budget Statement for the Financial Year 2021. Tax measures in the budget 2021 concern:
- Investment allowance scheme extended through 31 December 2026;
- Withholding tax (WHT) exemptions for the financial sector;
- Double tax deduction for international scheme;
- 100% investment allowance on approved automation projects until 31 March 2021;
- WHT exemption on payments made for structured products extended for 5 years;
- WHT exemption on payments for over-the-counter (OTC) financial derivatives, extended for 5 years, through 31 December 2026;
- Repeal of the accelerated depreciation allowances for highly efficient pollution control equipment scheme;
- Tax deduction for costs attributable to retail bonds extended through 31 December 2026.
