Summary Of
Singapore Budget 2019
Personal Tax
1. Personal Income Tax Rebate
As part of the Bicentennial Bonus, a Personal Income Tax Rebate of 50% of tax payable will be granted to all tax resident individuals for YA 2019.
The rebate will be capped at $200 per taxpayer.
2. Grandparent Caregiver Relief
To support and recognise working mothers with handicapped and unmarried dependent children, taxpayers are allowed to claim Grandparent Caregiver Relief in respect of a handicapped and unmarried dependent child, regardless of the child’s age, if they have met all other conditions.
With effect from YA 2020.
3. Not Ordinarily Resident (NOR) Scheme
The NOR scheme allows an eligible individual to enjoy, for a five-year period, time apportionment of his/her Singapore employment income and tax exemption of his/her employer’s contribution to a non-mandatory overseas pension or provident fund, will lapse after YA 2020. Individuals who have been accorded the NOR status will continue to be granted NOR tax concessions until their NOR status expires, if they continue to meet the conditions of the concessions.
The final NOR status will be granted for YA 2020 and expire in YA 2024.
For All Business
1. Writing Down Allowance for Acquisition of Qualifying Intellectual Property Rights
The writing down allowance in respect of the acquisition of qualifying intellectual property rights (IPRs) under s 19B will be extended to cover the capital expenditure incurred in respect of qualifying IPRs acquired on or before the last day of the basis period for YA 2025.
2. Extend the income tax concessions for Singapore-listed Real Estate Investment Trusts (“S-REITs”)
The existing tax concessions for S-REITs will be extended till 31 December 2025. The clause for the tax exemption on S-REITs distributions received by individuals will be removed. All other conditions for the income tax concessions remain the unchanged.
3. Extend the income tax concessions for Singapore-listed Real Estate Investment Trusts Exchange-Traded Funds (“REITs ETFs”)
The existing tax treatment accorded to REITs ETFs will be extended till 31 December 2025. The clause will be removed for the tax exemption on REITs ETFs distributions received by individuals. All other conditions for the income tax concessions remain the unchanged.
4. Lapse the Designated Unit Trust (“DUT”) scheme
Tax incentive schemes are reviewed regularly to ensure relevance. The DUT scheme will lapse after 31 March 2019. Funds in the form of unit trusts may apply for other tax incentives for funds. Existing DUTs will continue to receive the tax deferral benefits under the DUT scheme, on and after 1 April 2019, if they continue to meet all the conditions.
5. Lapse the Approved Unit Trust (“AUT”) scheme
Tax incentive schemes are reviewed regularly to ensure relevance. The AUT scheme will lapse after 18 February 2019. Existing AUTs will continue to receive the tax concession under the AUT scheme for a period of five years from YA 2020 to YA 2024. This will allow existing AUTs sufficient time to transit to alternative tax incentive schemes, where relevant.
Goods And Services Tax
GST Import Relief for Travellers
| Table 1: GST Import Relief | |
| Time spent outside Singapore | Value of goods granted GST relief |
| 48 hours and above | $500 (down from the current $600) |
| Less than 48 hours | $100 (down from the current $150) |
The GST import relief for eligible travellers in respect of goods bought overseas has been reduced for travellers arriving in Singapore from 12.00am, 19 February 2019.
Source: IRAS website available at https://www.iras.gov.sg/irashome/News-and-Events/Singapore-Budget/Budget-2019—Overview-of-Tax-Changes/#:~:text=As%20part%20of%20the%20Bicentennial,capped%20at%20%24200%20per%20taxpayer.&text=This%20will%20take%20effect%20from,for%20income%20earned%20in%202019)
