isca budget 2015 update and its tax implications: impact ...download.isca.org.sg/event/tax2015.pdf©...
TRANSCRIPT
![Page 1: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/1.jpg)
© 2015 ISCA
ISCA Budget 2015 Update and its
Tax Implications:
Impact on Corporate Firms and Individuals
11 March 2015, Wednesday
8.30 a.m. – 12.30 p.m.
![Page 2: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/2.jpg)
© 2015 ISCA
2015 Budget Highlights
Prof. Sum Yee Loong Professor of Accounting (Practice),
School of Accountancy, SMU
![Page 3: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/3.jpg)
© 2015 ISCA
Singapore’s Growth
In The Last 50 Years
3
![Page 4: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/4.jpg)
© 2015 ISCA
1963 – 1980
Industrialisation
Average annual growth 10%
4
![Page 5: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/5.jpg)
© 2015 ISCA
1980 – 1997
Move towards greater value-added
Emphasis on services sector
Average annual growth 8%
5
![Page 6: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/6.jpg)
© 2015 ISCA
1998 – 2009
Greater value-added activities
Higher skills activities (R&D)
Average annual growth 4.5%
6
![Page 7: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/7.jpg)
© 2015 ISCA
Corporate Tax
7
![Page 8: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/8.jpg)
© 2015 ISCA
Corporate Tax Rate
Remains @ 17%
8
![Page 9: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/9.jpg)
© 2015 ISCA
Corporate Tax Comparisons
Ireland
12.5
16.5 1720 21
25 25.5
30
35
0
10
20
30
40
Ireland Hong Kong Singapore
Taiwan
Thailand UK China
Malaysia
Indonesia
Japan India
Australia
Philippines
US
9
![Page 10: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/10.jpg)
© 2015 ISCA
30% Tax Rebate
YA 2013 – YA 2015
Max $30,000 per YA
10
![Page 11: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/11.jpg)
© 2015 ISCA
C.I. $
Rate* %
300,000 5.8
500,000 8.3
740,735 9.5
1,000,000 11.4
* After partial exemption of $152,500 & rebate
YA 2013 – YA 2015
11
![Page 12: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/12.jpg)
© 2015 ISCA
30% Tax Rebate
YA 2016 – 2017
Max $20,000 per YA
12
![Page 13: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/13.jpg)
© 2015 ISCA
C.I. $
Rate* %
300,000 5.8
500,000 8.3
544,659 8.6
1,000,000 12.41
* After partial exemption of $152,500 & rebate
YA 2016
13
![Page 14: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/14.jpg)
© 2015 ISCA
Introduced in 2010 Budget and enhanced in 2011, 2012, 2013 & 2014 400% of up to $400k of qualifying expenditures on: • R&D • Acquisition & Licensing of IP • Registration of IP • Investments in design • Investments in automation • Training for employees
PIC
14
![Page 15: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/15.jpg)
© 2015 ISCA
PIC
PIC Bonus not extended
15
![Page 16: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/16.jpg)
© 2015 ISCA
PIC
Cash Conversion
Up to $60,000
(on first $100,000 expenditure)
Effective conversion rate of 15%
From YA 2013
16
![Page 17: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/17.jpg)
© 2015 ISCA
NO
$
Profit 800,000
PIC (400,000)
C.I. 400,000
PTE (152,500)
247,500
Tax @ 17% Rebate
42,075 (12,622)
Cash conversion -
29,453
Cash Conversion
YES
$
800,000
-
800,000
(152,500)
647,500 110,075 (20,000)
(60,000)
20,075
($9,378)
YA 2015
17
![Page 18: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/18.jpg)
© 2015 ISCA
PIC
Reconciliation
$59,265 @ 17% 10,075
$340,732 @ 11.9% 40,547
Cash payout (60,000)
(9,378)
18
![Page 19: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/19.jpg)
© 2015 ISCA
NO
$
Profit 500,000
PIC (400,000)
C.I. 100,000
PTE (52,500)
47,500
Tax @ 17% Rebate
8,075 (2,422)
Cash conversion -
5,653
Cash Conversion
YES
$
500,000
-
500,000
(152,500)
347,500
59,075 (17,722)
(60,000)
(18,647)
($24,300)
YA 2015
19
![Page 20: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/20.jpg)
© 2015 ISCA
PIC
Reconciliation
$200,000 @ 11.9% 23,800
$200,000 @ 5.95% 11,900
35,700
Cash payout (60,000)
(24,300)
20
![Page 21: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/21.jpg)
© 2015 ISCA
NO
$
Profit 800,000
PIC (400,000)
C.I. 400,000
PTE (152,500)
247,500 Tax @ 17% Rebate
42,075 (12,622)
Cash conversion -
29,453
Cash Conversion
YES
$
800,000
-
800,000
(152,500)
647,500 110,075 (20,000)
(60,000)
30,075
$622
YA 2016
21
![Page 22: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/22.jpg)
© 2015 ISCA
PIC
Reconciliation
$255,341 @ 17% 43,408
$144,659 @ 11.9% 17,214
Cash payout (60,000)
622
22
![Page 23: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/23.jpg)
© 2015 ISCA
NO
$
Profit 500,000
PIC (400,000)
C.I. 100,000
PTE (52,500)
47,500 Tax @ 17% Rebate
8,075 (2,422)
Cash conversion -
5,653
Cash Conversion
YES
$
500,000
-
500,000
(152,500)
347,500 59,075
(17,722)
(60,000)
(18,647)
$24,300
YA 2016
23
![Page 24: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/24.jpg)
© 2015 ISCA
PIC
Reconciliation
$200,000 @ 11.9% 23,800
$200,000 @ 5.95% 11,900
35,700
Cash payout (60,000)
(24,300)
24
![Page 25: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/25.jpg)
© 2015 ISCA
M & A Scheme
M & A Allowance increased
from 5%
to 25%
Cap at $20 mil
Previous cap $100 mil
25
![Page 26: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/26.jpg)
© 2015 ISCA
M & A Scheme
Stamp Duty Relief on transfer of
shares
Cap at $20 mil
Previously $100 mil
26
![Page 27: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/27.jpg)
© 2015 ISCA
M & A Scheme
200% tax deduction for transaction
costs
(Max expenditure cap $100k p.a.)
27
![Page 28: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/28.jpg)
© 2015 ISCA
M & A Scheme
Shareholding required reduced
from > 50%
to at least 20%
(wef 1 April 2015)
28
![Page 29: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/29.jpg)
© 2015 ISCA
Internationalisation Scheme
Overseas investment development
expenditure
Currently max $100k p.a.
29
![Page 30: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/30.jpg)
© 2015 ISCA
Internationalisation Scheme
To cover manpower costs
Maximum $1 mil p.a.
(1 July 2015 – 31 March 2020)
30
![Page 31: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/31.jpg)
© 2015 ISCA
International Growth Scheme (IGS)
Companies embarking on
internationalisation activities
Incentive rate of 10%
(1 April 2015 – 31 March 2020)
31
![Page 32: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/32.jpg)
© 2015 ISCA
Angel Investors Tax Deduction (AITD)
Currently AITD must be:
Invested at individual level
In qualifying start-ups
Hold investment for at least 2 years
32
![Page 33: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/33.jpg)
© 2015 ISCA
Angel Investors Tax Deduction (AITD)
Deduction
50% of qualifying investment
Max $500k p.a.
33
![Page 34: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/34.jpg)
© 2015 ISCA
Angel Investors Tax Deduction (AITD)
Extended 5 years to 31 March 2020
34
![Page 35: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/35.jpg)
© 2015 ISCA
Angel Investors Tax Deduction (AITD)
To include investments co-funded by
SPRING Start-up Enterprise
Development Scheme (SEEDS) and
Business Angel Scheme (BAS)
35
![Page 36: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/36.jpg)
© 2015 ISCA
Fund Management
Withdrawal of Pioneer Service
Incentive
Incentive rate of 5% available
(wef 1 April 2015)
36
![Page 37: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/37.jpg)
© 2015 ISCA
UHNW
> US$ 30 mil
(Excluding own residence)
37
![Page 38: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/38.jpg)
© 2015 ISCA
UHNW
Increase of 15 UHNW per day in 2015
(5,475 p.a.)
38
![Page 39: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/39.jpg)
© 2015 ISCA
UHNW
Singapore ranked no. 3
(Knight Frank’s Wealth Report 2015)
39
![Page 40: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/40.jpg)
© 2015 ISCA
Investment Allowance
Investment allowance for
Energy Efficiency Scheme
Extended to 31 March 2021
40
![Page 41: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/41.jpg)
© 2015 ISCA
International Legal Services
Development & Expansion Incentive
Extended to 31 March 2020
41
![Page 42: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/42.jpg)
© 2015 ISCA
Approved Foreign Loan
Minimum increased
from $200k
to $20 mil
(wef 24 February 2015)
(Reviewed on 31 December 2023)
42
![Page 43: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/43.jpg)
© 2015 ISCA
Approved Royalties Incentive
Reviewed on 31 December 2023
43
![Page 44: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/44.jpg)
© 2015 ISCA
REITs
Tax concessions extended to
31 March 2020
44
![Page 45: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/45.jpg)
© 2015 ISCA
REITs
Stamp Duty remission to expire on
31 March 2015
45
![Page 46: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/46.jpg)
© 2015 ISCA
Offshore Leasing
Incentive under S43I
Ceases on 31 December 2015
46
![Page 47: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/47.jpg)
© 2015 ISCA
Currently:
Tax exemption for income from operations of Singapore
and foreign ships
Tax exemption for leasing of ships
10% tax for managing of container investment enterprise
10% tax for shipping related support services
W/H tax exemption on qualifying loans
Exemptions and concession extended to 31 May 2021
Maritime Sector Incentive (MSI)
47
![Page 48: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/48.jpg)
© 2015 ISCA
OHQ
OHQ Incentive
Ceases on 30 September 2015
48
![Page 49: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/49.jpg)
© 2015 ISCA
Approved Donations
2015
300%
2016 – 2018
250%
49
![Page 50: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/50.jpg)
© 2015 ISCA
GST
Credit for pre-registration GST
Incurred within 6 months of GST
registration
Registration from 1 July 2015
50
![Page 51: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/51.jpg)
© 2015 ISCA
Personal Tax
51
![Page 52: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/52.jpg)
© 2015 ISCA
2025
38
64
100
0
20
40
60
80
100
120
Japan Hong Kong Singapore Taiwan South Korea
Median Individual Pre-Tax Wages
1975
52
![Page 53: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/53.jpg)
© 2015 ISCA
52
7780
93100
0
20
40
60
80
100
120
Japan Singapore Hong Kong South Korea Taiwan
Median Individual Pre-Tax Wages
2013
53
![Page 54: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/54.jpg)
© 2015 ISCA
Aging Population
Singapore fastest aging city
54
![Page 55: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/55.jpg)
© 2015 ISCA
Personal Tax
YA 2015
Tax rebate 50%
Maximum $1k
55
![Page 56: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/56.jpg)
© 2015 ISCA
Personal Tax
YA 2015
Salary 60,000
Bonus 20,900
80,900
EIR 1,000
NSmen 3,000
CPF 16,180 (20,180)
C.I. 60,720
Tax on $40k 550
$20,720 @ 7% 1450
2000
Rebate @ 50% (1000)
Net tax payable 1000
Effective tax rate 1.24%
56
![Page 57: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/57.jpg)
© 2015 ISCA
Comparative personal effective tax rates
Year of Assessment 2015
Employee married with 2 children
Gross annual remuneration of $200k
28.6%
7.9%10.5%
21.0% 21.8% 22.6%
26.1%
29.2%
0%
5%
10%
15%
20%
25%
30%
35%
Singapore Hong
Kong
USA Japan Malaysia China India UK
% Tax Rate
*8.7% (with HK$20k rebate)
*
57
![Page 58: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/58.jpg)
© 2015 ISCA
Personal Tax
From YA 2017
Change in tax rates
- marginal tax rate – 22%
58
![Page 59: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/59.jpg)
© 2015 ISCA
0
20
40
60
80
100
120
140
160
180
200
220
240
260
280
300
320
340
C.I.
Tax
$320,000
$42,350
$320,000
$44,550
0
2 3.5
7
11.5
15
17
18
0
3.5
7
11.5
15
18
19.5
2
19
20
YA 2015
%
YA 2017
%
$ ‘000
Tax Rate
59
![Page 60: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/60.jpg)
© 2015 ISCA
Personal Tax
C.I
YA 2015 YA 2017
$500k 78,350 84,150
Increase 5,800
$1,000k 178,350 194,150
Increase 15,800
60
![Page 61: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/61.jpg)
© 2015 ISCA
N/R Arbitrators
Exemption
Extended to 31 March 2020
61
![Page 62: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/62.jpg)
© 2015 ISCA
N/R Mediators
Currently taxed on
15% of gross income
20 % of net income
62
![Page 63: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/63.jpg)
© 2015 ISCA
N/R Mediators
Exemption from
1 April 2015 – 31 March 2020
63
![Page 64: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/64.jpg)
© 2015 ISCA
Inventor, Designer or Creator of
Approved IP or Innovations
Concession withdrawn
(wef YA 2017)
64
![Page 65: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/65.jpg)
© 2015 ISCA
Rental of Residential Property
Deduction of 15% of gross income
(wef YA 2016)
65
![Page 66: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/66.jpg)
© 2015 ISCA
CPF
66
![Page 67: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/67.jpg)
© 2015 ISCA
CPF
Ordinary wages cap increased to
$6k p.m.
(wef 1 January 2016)
67
![Page 68: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/68.jpg)
© 2015 ISCA
CPF
Total wages cap increased to $102k
p.m. (17 x $6k)
(wef 1 January 2016)
68
![Page 69: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/69.jpg)
© 2015 ISCA
CPF
CPF for older workers
Current Proposed
% %
50 – 55
Employer 16 17
Employee 19 20
55 – 60
Employer 12 13
Employee 13 13
60 – 65
Employer 8.5 9
Employee 7.5 7.5
(wef 1 January 2016)
69
![Page 70: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/70.jpg)
© 2015 ISCA
SRS
Citizens & PRs
$15,300
(15% x $102k)
(wef 1 January 2016)
70
![Page 71: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/71.jpg)
© 2015 ISCA
SRS
Expats
$35,700
(35% x $102k)
(wef 1 January 2016)
71
![Page 72: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/72.jpg)
© 2015 ISCA
Excise Duties
Petrol – 20 cents per litre increase
(wef 23 February 2015)
72
![Page 73: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/73.jpg)
© 2015 ISCA
fb.com/ISCA.Official
http://www.linkedin.com/company/institute-
of-singapore-chartered-accountants-isca-
@ISCA_Official
![Page 74: ISCA Budget 2015 Update and its Tax Implications: Impact ...download.isca.org.sg/event/TAX2015.pdf© 2015 ISCA ISCA Budget 2015 Update and its Tax Implications: Impact on Corporate](https://reader033.vdocument.in/reader033/viewer/2022042806/5f72bf1c0a58335cf94e06ae/html5/thumbnails/74.jpg)
© 2015 ISCA
This Presentation (the Presentation) has been prepared by ISCA for the exclusive use
of the recipients to whom it is addressed.
Each recipient agrees that it will not permit any third party to, copy, reproduce or
distribute to others this Presentation, in whole or in part, at any time without the prior
written consent of ISCA, and that it will keep confidential all information contained
herein not already in the public domain.
The Preparers expressly disclaim any and all liability for representations or warranties,
expressed or implied, contained in, or for omissions from, this Presentation or any other
written or oral communication transmitted to any interested party in connection with this
Presentation so far as is permitted by law. In particular, but without limitation, no
representation or warranty is given as to the achievement or reasonableness of, and no
reliance should be placed on, any projections, estimates, forecasts, analyses or forward
looking statements contained in this Presentation which involve by their nature a
number of risks, uncertainties or assumptions that could cause actual results or events
to differ materially from those expressed or implied in this Presentation.
In furnishing this Presentation, the Preparers reserve the right to amend or replace this
Presentation at any time and undertake no obligation to update any of the information
contained in the Presentation or to correct any inaccuracies that may become apparent.
This Presentation shall remain the property of ISCA.
Important disclaimer