Singapore’s Finance Ministry Set to Amend Income Tax Bill

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Singapore Company Registration

Amendments to the Singapore income tax bill will help SMEs cope with the weakened GDP, as well as provide opportunities to thrive in spite of the prolonged difficulties in the global market.

(PRWEB) August 08, 2012

Singapore’s Ministry of Finance (MOF) is currently conducting a public consultation on the draft Income Tax (Amendment) Bill of 2012. The public consultation commenced last July 24, 2012, and is scheduled to end in approximately a week, on August 13, 2012.

The MOF’s proposed amendments to the Income Tax Act are primarily focused on the revisions announced in the 2012 Budget Statement, including the following key factors:

• Provisions of one-off cash grants to Small and Medium Enterprises (SMEs) capped at $5,000 to help SMEs offset rising business costs;
• Revisions to the Productivity and Innovation Credit Scheme to boost the innovation and productivity efforts of companies, such as faster access to more cash upfront for investments, as well as relaxing some of the PIC Scheme’s qualifying conditions;
• Provision of certainty of non-taxation of gains on disposal of equity investments to minimize compliance costs, facilitate corporate restructuring, and attract more investors to form a Singapore company and
• Enhancements to the Earned Income Relief of up to $8,000 and $12,000 for the elderly and handicapped persons respectively so as to encourage them to stay employed.

The Income Tax (Amendment) Bill of 2012 further provides changes to existing tax policies as a result of ongoing reviews of Singapore’s tax system, including: the alignment of tax treatment with new accounting standards for small entities, as well as revisions to the CPF Minimum Sum Topping-Up scheme to accommodate parents-in-law and grandparents-in-law.

For Mr. Satish Bakhda, General Manager and Head of Operations at Rikvin, a Singapore company registration specialist, the proposed amendments are ideal for Singapore’s continued economic growth.

“Amid a slow economy, we need to intensify our productivity efforts and enhance Singapore’s attractiveness as a primary business location,” Mr. Bakhda said. “Amendments to the Singapore income tax bill will help SMEs cope with the weakened GDP, as well as provide opportunities to thrive in spite of the prolonged difficulties in the global market.”

The public may access the consultation documents and supporting literature through the Ministry of Finance’s website (http://www.mof.gov.sg) and the REACH consultation portal (http://www.reach.gov.sg). The public is encouraged to send feedback to the Ministry of Finance directly via the website, email, fax, or post.

ABOUT THE PUBLISHER:
Established in 1998, Rikvin has since partnered with thousands of investors, entrepreneurs and professionals in their pursuit to access business opportunities overseas. Rikvin’s areas of expertise include Singapore company setup, accounting, taxation and other related corporate services. Rikvin is also a licensed employment agency with the Ministry of Manpower (MOM) and offers a full spectrum of Singapore employment pass services for foreign professionals and for global entrepreneurs who wish to setup a Singapore company.

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