Taxation reflective Journals
Li Zaihua S3420690 HP: 92336485
Singapore Budget 2014 – Earnst and Young
Summary
Budget 2014 has witnessed the effort from Government in the economic restructuring path by extending and refining tax incentives to boost productivity and promote innovation so as to sustain its competitiveness in the economy. At the same time, several measures were introduced to build an inclusive social structure of Singapore by providing financial support to the senior citizens and the lower income groups.
In an attempt to enable productivity and innovation, PIC+ scheme for small and medium enterprises (SMEs) was introduced by the Government, and along with other measures such as the extension of financial schemes for companies at different growing stages. One of the measures is the extension of the R&D tax incentive for a longer timeframe of 10 years in hope of yielding successful results from the businesses’ innovation activities. The move for extending the tax incentive is essential as in a global perspective, there is a strong competition for R&D activities.
In 2013, Singapore economy has achieved a significant 4.1%, so as to further strengthen the competitiveness of the economy in 2014, especially in the financial services sector, Government introduced measures that focus on tax certainty and maintain a level-playing for Singapore-incorporated banks which issue Basel III Additional Tier 1 instruments, and such instruments will be treated as debt for tax purposes. Additionally, enhancing and refining the tax incentive schemes for qualifying funds promotes the fund management sector in Singapore.
Lastly, Budget 2014 aims to achieve a fair and equitable society, and financial assistance in education for children from lower income households is one example, as well as the generous Pioneer Generation Package, an 8 billion initiative to salute those who helped in nation building.
Applicable Laws
1. Extension of Productivity & Innovation Credit Scheme
Currently, businesses
Singapore Budget 2014 – Earnst and Young
Summary
Budget 2014 has witnessed the effort from Government in the economic restructuring path by extending and refining tax incentives to boost productivity and promote innovation so as to sustain its competitiveness in the economy. At the same time, several measures were introduced to build an inclusive social structure of Singapore by providing financial support to the senior citizens and the lower income groups.
In an attempt to enable productivity and innovation, PIC+ scheme for small and medium enterprises (SMEs) was introduced by the Government, and along with other measures such as the extension of financial schemes for companies at different growing stages. One of the measures is the extension of the R&D tax incentive for a longer timeframe of 10 years in hope of yielding successful results from the businesses’ innovation activities. The move for extending the tax incentive is essential as in a global perspective, there is a strong competition for R&D activities.
In 2013, Singapore economy has achieved a significant 4.1%, so as to further strengthen the competitiveness of the economy in 2014, especially in the financial services sector, Government introduced measures that focus on tax certainty and maintain a level-playing for Singapore-incorporated banks which issue Basel III Additional Tier 1 instruments, and such instruments will be treated as debt for tax purposes. Additionally, enhancing and refining the tax incentive schemes for qualifying funds promotes the fund management sector in Singapore.
Lastly, Budget 2014 aims to achieve a fair and equitable society, and financial assistance in education for children from lower income households is one example, as well as the generous Pioneer Generation Package, an 8 billion initiative to salute those who helped in nation building.
Applicable Laws
1. Extension of Productivity & Innovation Credit Scheme
Currently, businesses