BUDGET 2016 - Shaping our future together: Fiscal position

Budget Briefs: Apply online for PIC cash payouts

Apply online for PIC cash payouts

To streamline and speed up the processing of cash payouts under the Productivity and Innovation Credit (PIC) scheme, businesses that want to apply for the payouts will have to file them online starting from Aug 1. Previously, businesses could choose to submit hard copies of their applications.

Tax on expat home leave passage

Starting from the 2018 Year of Assessment, the concession of taxing only 20 per cent of the value of home leave passages for expatriate employees will be removed.

Currently, the air passages for home leave that expatriate employees, their spouses and their children enjoy - up to a certain limit - are taxed at 20 per cent of their value, rather than the full amount.

 

Global Trader Programme

 

Companies that carry out activities such as mergers and acquisitions advisory services and streaming financing will qualify to be part of the Global Trader Programme (Structured Commodity Finance) scheme. This means they will get concessionary tax rates on their income for these activities.

The move is meant to strengthen Singapore's trade finance capabilities and encourage more structured commodity finance activities to be carried out here. IE Singapore will release more details of the changes by June.

Tax incentives for insurance sector

Tax incentive schemes for marine hull and liability insurance, specialised insurance business and captive insurance will be brought under the Insurance Business Development umbrella scheme.

This is to streamline and simplify tax incentives for the insurance sector and ensure the continued growth of high-value insurance activities. The Monetary Authority of Singapore will release further details of the changes by June.

Double tax deduction on expenses

To support businesses in their internationalisation efforts, a scheme which allows businesses to do a double tax deduction on qualifying expenses will be extended to 2020.

A version of this article appeared in the print edition of The Straits Times on March 25, 2016, with the headline 'Budget Briefs'. Print Edition | Subscribe