The following are highlights of the changes and relief measures that may have an impact on your businesses:

A) Corporate Income Tax Rebate

The Corporate Income Tax rebate will be raised from 30% to 50% for YA 2016 and YA 2017, with a cap of @$20,000 rebate per YA. This enhancement specifically aims to assist SMEs during the current economic climate.

Below is the illustration on the increase CIT rebate from 30% to 50% […]

B) E-filing of Corporate Income Tax

In consistency with the Government’s direction for a more effective public service delivery and alignment with the Smart Nation’s vision to harness technology to improve productivity, mandatory e-filing of CIT returns will be implemented in stages. Read here for more information.

C) Productivity Innovation Credit (PIC) Scheme

The PIC scheme will not be extended beyond YA 2018. In addition the cash payout rate will be lowered from 60% to 40% for qualifying expenditure incurred on or after 1 August 2016.
To facilitate the transition from 60% to 40% payout, IRAS will be releasing additional details in May 2016. These changes to the PIC scheme clearly reflect the Government’s stance towards directing assistance towards more targeted and sectoral-focused initiatives.

D) Foreign worker levy

In view of the challenging business conditions in the marine and process sectors, the increase in foreign worker levy for both these sectors will be deferred for 1 year, while there is no change in the manufacturing sector as announced in Budget 2015. The levy will be increased for the construction and services sectors. For a detailed view on the proposed changes, read here.

E) Special Employment Credit (SEC)

The SEC was due to expire on 31 December 2016. However, it was announced that the SEC will be extended 3 more years till end of 2019. The extension of this scheme is to address the immediate concern over the present economic uncertainties and to encourage the continued contribution of older Singaporeans in the workforce.

F) Extension of Double Tax Deduction (DTD)

With effect from 1 April 2012, the DTD process has been enhanced to allow companies to automatically claim double tax deduction without approval from Singapore Tourism Board (STB). This scheme, which expired on 31 March 2016, has been extended for another 4 years from 1 April 2016 to 31 March 2020, with all other conditions of the scheme remain the same.
For those who require frequent overseas travelling, this extension and enhancement will be beneficial for their businesses. Additional details of the change will be released by IE Singapore by June 2016.

G) Business Grants Portal

The Government will launch the Business Grants Portal in the fourth quarter of 2016 to help firms access available grants from various governmental agencies more easily. The portal will organise these grants along core business needs of

1. Capability building
2. Training
3. International expansion.

The portal will initially consists of grants from IE Singapore, SPRING, STB and Design Singapore and will progressively include grants from other Singapore agencies.

H) Maritime sector changes

Shipping enterprises operating Singapore-registered and foreign ships enjoy tax exemptions on certain types of shipping income under Section 13A of the Income Tax Act (ITA) […]