News Archive

 

 

Highlights of the 2013 Budget

 

Business

 

 

Corporate Income Tax Rebate

 

A 30% corporate income tax rebate, capped at S$30,000 per YA, will be granted to companies from YA 2013 to YA 2015

 

 

Productivity and Innovation Credit (PIC) Bonus

 

Qualifying businesses that invest a minimum of SGD5,000 per year in PIC qualifying expenditure will receive PIC cash bonus up to SGD15,000 over three years, YA 2013 to YA 2015.

 

Qualifying active businesses include sole-proprietorships, partnerships and companies that have at least THREE local employees (who are not owners of the business) and incurred at least SGD5,000 in PIC qualifying expenditure during the basis period for the YA in which a PIC Bonus is claimed;

 

CA TRUST comment

 

To fully benefit from the 30% corporate income tax rebate from YA 2013 to YA 2015, Companies should consider

  • opting for PIC cash conversion rather than claim 400% deduction;

  • deferring capital allowances claims;

  • planning their group loss relief claims.

 

 

 

Individuals

 

A personal income tax rebate capped at SGD1,500 will be granted to all individual resident taxpayers for YA 2013 based as follows:

 

a. 30% rebate will be granted to those who are less than 60 years old as at 31 December 2012; and

 

b. 50% tax rebate will be granted to those aged 60 and above as at 31 December 2012.

 

CA TRUST comment

 

With the income tax rebate for YA2013, a middle wage earner (approximately earning between SGD65k and SGD550k), would pay lower income tax in Singapore than in Hong Kong.