Tag: MOF

Tax concessions given to foreign nationals or entities through free trade agreements (FTAs)

On By taxsgIn General News, Latest Tax News, Stamp Duty

23 September 2013

The US-Singapore FTA (USSFTA) and the Singapore-European Free Trade Association FTA (ESFTA) are the only two FTAs where Singapore is obliged to accord Nationals of the United States of America, and the Nationals and Permanent Residents of Switzerland, Norway, Liechtenstein and Iceland, similar treatment in respect of taxes (including stamp duties) as Singaporeans. Otherwise, foreign entities do not enjoy Additional Buyer’s Stamp Duty (ABSD) remission in the purchase of residential properties in Singapore.

The above is based on the reply by the Ministry of Finance on 16 September 2013 to parliamentary questions from Non-Constituency Member of Parliament Gerald Giam Yean Song.

Source: Ministry of Finance

MOF seeks public feedback on the Goods and Services Tax (GST)

On By taxsgIn General News, Goods and Services Tax, Latest Tax News

10 August 2013

The Ministry of Finance is conducting a public consultation on the draft GST (Amendment) Bill 2013 from 5 to 25 August 2013.

The proposed amendments to existing tax policies and tax administration comprise:

(a) The Comptroller of GST and authorised persons may confiscate goods and arrest persons in cases where Tourist Refund Scheme fraud is suspected;

(b) When there is a change of local agent between the time of import and the subsequent supply of goods, the new local agent is liable for GST;

(c) The Inland Revenue Authority of Singapore (IRAS) may release anonymised information to Government and Statutory Boards for statistical or research purposes, or disclose information concerning professional misconduct to the relevant professional body for their investigation;

(d) If a person, who had been permitted under the Approved Refiner and Consolidator Scheme to buy goods without GST, was subsequently found to be ineligible for the benefit, he has to pay back the GST; and

(e) The term “refine”, in the Approved Refiner and Consolidator Scheme, includes casting precious metals into a different form.

Additionally, the Bill includes the following non-tax policy changes:

(a) IRAS may share information with the Commercial Affairs Department and the Singapore Police Force for investigations relating to money laundering of tax crimes proceeds without a court order.

(b) The tax authority may offset outstanding taxes from Government payments to the taxpayer under any law, contract or scheme.

For full details, please refer to the Ministry of Finance’s website or the REACH consultation portal.

Source: Ministry of Finance

Public consultation on changes to the Income Tax Act relating to the Exchange of Information (EOI) Regime

On By taxsgIn Income Tax Act, Latest Tax News, Legislative Updates

19 July 2013

The Ministry of Finance is seeking feedback on the amendments in the draft Income Tax (Amendment) Bill 2013 concerning recent changes made to the EOI regime. This exercise will be conducted from 18 July to 31 July 2013.

The proposed amendments, which were unveiled in May 2013, will enable Singapore to cooperate more fully with other nations to curtail tax crimes. They are as follows:

  1. In keeping with the internationally agreed Standard, Singapore will provide EOI assistance to all existing tax treaty partners, without having to revise bilateral agreements individually.
  2. The local tax authority will be allowed access to bank and trust information from financial institutions without a Court Order.
  3. The Government will reach an agreement with its US counterpart to help financial institutions here comply with the Foreign Account Tax Compliance Act.

For full details please refer to the Ministry of Finance’s website.

Source: Ministry of Finance

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

On By taxsgIn General News

19 June 2013

A public consultation on the draft Income Tax (Amendment) Bill 2013 will be conducted by the Ministry of Finance (MOF) from 17 June to 7 July 2013.

The proposed amendments to the Income Tax Act (ITA) which principally relate to the changes announced in the 2013 Budget Statement are as follows:

  • Granting corporate tax rebate at 30% of tax payable capped at $30,000 per Year of Assessment (YA) for YAs 2013 to 2015,
  • Provision of a Productivity and Innovation Credit (PIC) bonus up to $15,000 over three YAs (YAs 2013 to 2015)
  • Enhancements to the PIC Scheme by liberalising the scope of automation equipment eligible for PIC and by extending PIC beyond IP acquisition to IP in-licensing, and
  • Granting personal income tax rebate for YA 2013 for resident-individual taxpayers. The rebate is 30% of tax payable, capped at $1,500 for taxpayers below 60 years old, and 50% of tax payable, capped at $1,500 for those aged 60 years and above.

The Income Tax (Amendment) Bill 2011 also provides for refinements to existing tax policies and tax administration which include the following:

  • Lifting current restrictions on deductions/capital allowances for foreign-hired and foreign-owned cars
  • Simplifying capping rule on tax deduction and tax exemption for third-party voluntary contributions (VC) made to an Employee or Self-Employed Person (SEP)’s medisave account, and
  • Allowing taxpayers in a non-taxable position to apply to Comptroller to amend tax assessments to correct for their own error.

For full details please refer to the Ministry of Finance’s website.

Source: Ministry of Finance

Property tax payment due by 31 January 2013

On By taxsgIn Latest Tax News

4 January 2013

HDB flat owners would have received their 2013 Valuation Notice cum Property Tax Bill by the end of December 2012.

Similar to 2012, all one-room and two-room owner-occupiers of HDB homes will not pay property tax in 2013. Property tax bill for 2013 will increase by between $40 to $50, after taking into considering a new $40 rebate for the majority of other HDB flat types. The increase in property tax comes after the revision of Annual Values (‘AV’) of HDB flats with effect from 1 January 2013.

The AV is the estimated annual market rent of a property as if it was rented out, and is used as a basis to compute the property tax payable. Property tax is calculated at 10% of the AV for non-Owner Occupied Homes. For Owner-Occupied HDB Flats, property tax payable is calculated at the concessionary tax rates as follows:

• First $6,000 = 0%
• Next $59,000 = 4%
• Amount exceeding $65,000 = 6%

A 5% penalty will be imposed for owners who fail to pay or have not arranged to pay by 31 January 2013.

More details can be found in the IRAS e-Tax Guide, ‘Revision of Annual Values for HDB Flats from 1 January 2013’.

Source: Ministry of Finance (MOF) and the Inland Revenue Authority of Singapore (IRAS)