Public consultation sought by MOF on changes to the Income Tax Act

24 July 2012

The Ministry of Finance (MOF) is seeking public consultation on the draft Income Tax (Amendment) Bill 2012. The proposed changes relate primarily to the changes as announced in the 2012 Budget Statement, as well as reviews made to the tax policies and administration.

Key changes resulting from Budget 2012 include:

  • Provision of one-off SME cash grant capped at $5,000
  • Enhancement to the Productivity and Innovation Credit (“PIC”) Scheme
  • Provision of certainty of non-taxation of gains on disposal of equity investments, and
  • Enhancements to the Earned Income Relief of up to $8,000 and $12,000 for the elderly and handicapped persons respectively.

Changes from ongoing review of the tax system:

  • Alignment of tax treatment with the new accounting standards for small entities, and
  • Enhancement to CPF Minimum Sum Topping-Up Scheme where deductions will be allowed on cash top-ups made under Minimum Sum Topping-Up accounts of parents-in-law and grandparents-in-law.

The consultation paper and feedback channels can be found at the MOF website or REACH portal.

The consultation period runs from 24 July 2012 till 13 August 2012.

Source: Ministry of Finance (MOF)