On March 24, 2016 was released a budget that includes measures to expand and strengthen the financial sector, as well as tax incentives for international trade.
It will be extended by a double tax deduction for the Internationalization Scheme for four years from 1 April 2016 to 31 March 2020. This will cover the cost of qualifying activities such as participating in the development of foreign business and investment research.
The budget also proposes not to impose the company’s profits from the sale of its equity investment until 31 May 2022, which will help to provide certainty for the advance of corporate restructuring.
The Minister also proposed to extend the Finance and Treasury scheme until 31 March 2021 where since March 25, 2016 includes the following enhancements took effect:
- Concession rate has been reduced to eight percent.
- In order to qualify for the preferential terms of the tax rate will be allowed to receive funds indirectly from authorized offices and associates.
- The amount of exemptions granted in accordance with Article 13 (4). The volume will be expanded to cover the interest payments on deposits, provided that the funds are used for qualifying activities or services.
In an effort to help businesses, especially small and medium enterprises, the budget to raise the existing corporate income tax rebate from 30 percent to 50 percent.
The budget also expands the fund of small and medium-sized businesses, to provide more capital to support small and medium-sized enterprises in Singapore.