Find out information on various specific taxes and specific tax rates announced in Singapore budget.
Specific taxes apply on certain transactions or selected industries, goods or services. Specific taxes are in contrast to an ad valorem tax. Specific taxes have administrative advantages where measuring quantities is simple.
Accelerated Tax Deductionfor Renovation and Refurbishment:
To encourage businesses to refit their business premises in 2009 and 2010, businesses that incur qualifying renovation and refurbishment expenditure in the basis periods of Year of Assessment (YA) 2010 and 2011 will be allowed to deduct such expenditures, subject to a cap of $150,000, in one year instead of over three years.
Transport Related Taxes
A 30 per cent road tax rebate for vehicles, buses and taxis will be provided for one year from 1 July 2009. The green vehicle rebate scheme, due to expire on 31 December 2009 will also be extended for another two years to 31 December 2011.
Tax Deduction for Donations
As a measure to bolster the community support networks and to encourage continued as well as greater charitable giving in Singapore, the tax deduction for donations to an institution of public character (IPC) or approved institutions will be increased from 200 per cent to 250 per cent.
To enhance Singapore's position as a leading Asian hub for fund management business, a lower concessionary tax rate of 5 per cent (enhanced tier) will be introduced with effect from 1 April 2009 to 31 March 2014 (both dates inclusive) to the existing fund management incentives for funds with a minimum fund size of S$50 million at the point of application, subject to other conditions.
Restrictions on residence status of the fund vehicles and investment by Singapore-based investors will be lifted. To provide a further boost to the promotion of the fund management sector, the rules for recovering input GST will be simplified and qualifying funds managed by a prescribed fund manager will be able to claim a substantial portion of the input GST incurred on prescribed expenses, with immediate effect.