Singapore Gazettes Laws For 2021 Price range Adjustments

Singapore Gazettes Laws For 2021 Price range Adjustments

by Mary Swire, Tax-Information.com, Hong Kong

23 November 2021

The Revenue Tax (Modification) Invoice 2021 was revealed in Singapore’s Official Gazette on November 16, 2021, following approval earlier by Singapore’s President.


The Invoice accommodates tax measures introduced within the 2021 Price range; economy-wide and sector-specific measures introduced by the Authorities in Might 2021 and July 2021 in response to the COVID-19 pandemic; tax modifications arising from periodic overview of Singapore’s earnings tax system; and technical amendments.


For example, the invoice contains the next measures introduced within the Price range:


  • The enhancement to the loss carry-back reduction scheme to permit for qualifying deductions to be carried again for as much as three years (as a substitute of 1) will probably be prolonged for Yr of Evaluation 2021;

  • The choice to speed up the write-off of the price of buying plant and equipment over two years (as a substitute of three) will probably be prolonged to capital expenditure incurred on the acquisition of plant and equipment within the foundation interval for YA 2022;

  • The choice to say renovation and refurbishment deduction in a single YA (as a substitute of three) will probably be prolonged to qualifying expenditure incurred on renovation and refurbishment within the foundation interval for YA 2022;

  • The Double Tax Deduction for Internationalisation scheme will probably be enhanced equivalent to to cowl extra qualifying bills (e.g. particular bills incurred to take part in accepted digital commerce gala’s); and

  • The 250 p.c tax deduction for qualifying donations made to Establishments of Public Character (IPCs) and different qualifying recipients will probably be prolonged for one more two years (that’s, to donations made in the course of the interval January 1, 2022, to December 31, 2023, inclusive).


The Invoice additionally offers for refinements and proposed amendments of present tax insurance policies and tax administration arising from periodic overview of Singapore’s earnings tax system.


Notable modifications embrace the introduction of a requirement for taxpayers to offer a written discover to the Comptroller when a overseas tax authority makes a downward adjustment of overseas tax which leads to the overseas tax credit score beforehand allowed in Singapore on foreign-sourced earnings turning into extreme.


Singapore’s company earnings tax system taxes foreign-sourced earnings upon remittance, and offers for a tax credit score for overseas taxes paid on the identical earnings. The place overseas tax paid exceeds the Singapore tax due on the foreign-sourced earnings, no additional earnings tax is payable in Singapore. The modification would require taxpayers to inform the Comptroller inside one yr when a overseas tax authority makes a downward adjustment of overseas tax which leads to the overseas tax credit score beforehand allowed in Singapore turning into extreme, as IRAS would wish to lift extra tax assessments.


The interval for IRAS to lift extra tax assessments, in relation to downward adjustment of overseas tax, can even be elevated from two years to a few years.


Correspondingly, in conditions the place there are upward adjustment of overseas tax, taxpayers also can make the declare for added overseas tax credit inside three years from the date of the upward adjustment.


Amendments are additionally included to align the utmost penalty quantities for non-filing and different associated offences below the Revenue Tax Act with these for comparable offences below the Items and Companies Tax Act and Property Tax Act.



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