Singapore Expats Forum

Singapore budget 2007

Discuss about the latest news & interesting topics, real life experience or other out of topic discussions with locals & expatriates in Singapore.

User avatar
Posts: 158
Joined: Sat, 23 Dec 2006

Singapore budget 2007

Postby saint73 » Thu, 15 Feb 2007 9:47 pm


Making Singapore the Best Place to Start and Grow A Business

For All Companies

Reduce the corporate tax rate by two percentage points to 18% from Year of Assessment (YA) 2008. This will cost the Government $800 million a year.
Increase the corporate tax exemption threshold from $100,000 to $300,000 from YA2008, with the following exemption rates: - 75% exemption for the first $10,000 of chargeable income; and
- 50% exemption for the next $290,000 of chargeable income.
This will cost the Government $150 million a year.
With the above changes, the corporate tax structure will be as follows: Amount of chargeable income Effective tax rate
First $10,000 4.5%
Next $290,000 9.0%
In excess of $300,000 18.0%

Allow tax deduction for other specified borrowing costs that are paid as a substitute for interest expense, from YA2008. IRAS will release details by May 2007. This will cost the Government $110 million a year.
Extend the concession permitting writing down allowances for acquired intellectual property from 31 October 2008 to 31 October 2013.
Increase the qualifying period for the investment allowance incentive from five to eight years, for assets acquired on hire-purchase basis. This will be effective for assets purchased on hire-purchase terms from 15 February 2007.
For Start-ups and SMEs

Remove the YA2009 expiry date for the corporate tax exemption scheme for start-ups, which exempts the first $100,000 of chargeable income.
Grant SMEs cash rebates on the first $80,000 of total employer and employee CPF contributions over two years: - In the first year (1 July 2007 – 30 June 2008), the rebate is 2% of the first $40,000 of total CPF contribution and 1% of the next $40,000 of total CPF contribution.
- In the second year (1 July 2008 – 30 June 2009), the rebate is 1% of the first $40,000 of total CPF contribution and 0.5 % of the next $40,000 of total CPF contribution.
This will cost the Government $100 million. Further details of the application process for rebates and the eligibility criteria will be released by 1 May 2007.
Provide a grant for SMEs voluntarily registering for GST (capped at $5,000 per SME) to support up to 50% of GST registration-related costs, such as hardware, software, Internet connection and IT implementation consultancy and training.
Growing “High-Trust”

  • Similar Topics
    Last post

Return to “General Discussions”

Who is online

Users browsing this forum: No registered users and 5 guests