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2008
> Singapore Budget 2008 at a Glance: Key Tax Measures Relevant to Companies
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Singapore Budget 2008 at a Glance: Key Tax Measures Relevant to Companies |
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Measures for Encouraging R&D
1. Enhanced deduction for R&D expenses
- Tax deductions for R&D done in Singapore increased from 100% to 150%.
2. Liberalisation of “related to that trade or business” requirement
- R&D activities done in Singapore unrelated to existing trade or business qualify for tax deductions
3. R&D tax allowance
- R&D tax allowance of 50% of chargeable income, up to S$150,000, shall be granted for each YA
- Can be carried forward for up to 3 years to offset against incremental R&D expenses
4. R&D incentive for start-up enterprises (RISE)
- Targeted at high-tech business start-ups in their first 3 YAs
- RISE allows a conversion of up to S$225,000 of tax losses into cash
- Maximum cash grant for each YA is S$20,250 if the company has incurred at least S$150,000 for R&D activities
Measures for Talent Attraction
5. Not Ordinarily Resident (NOR) Scheme
- Enhancement of current NOR scheme to also cover benefits-in-kind (e.g. leave pay)
- Simplified requirement of Singapore employment income threshold of S$160,000 to replace requirement for effective tax rate of 10%
6. Overseas Talent Recruitment Scheme
- Extension of scheme until 2013
Other Tax Measures
7. Tax credit for foreign-sourced income
- Unilateral tax credit given to all foreign-sourced income earned in non- tax treaty partner countries
8. Allowance for fixtures, fittings and installations
- Special writing down allowances for fixtures, fittings and installations over 3 years
- Capped at expenses of S$150,000 every 3 years
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- Commentaries and Synopses on Singapore Budget 2008 Prepared by Accounting Firms:
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