Singapore Budget Tax Change 2010
Tax changes were announced by Minister for Finance, Mr. Tharman Shanmugaratnam in his Budget Speech for the Financial Year 2010 which was delivered in Parliament on Monday, 22 February 2010.
For businesses, the Productivity and Innovation Credit is introduced to provide significant tax deductions for investments in a range of six activities along with the innovation value chain – R&D done in Singapore; the registration of Intellectual Property (“IP”); acquisition of IP; investments in design done in Singapore; spending on equipment or software aimed at automating processes; and costs of training employees so as to upgrade skills and capabilities.
The Productivity and Innovation Credit is introduced to provide significant tax deductions for investments in a range of six activities along with the innovation value chain – R&D done in Singapore; the registration of Intellectual Property (“IP”); acquisition of IP; investments in design done in Singapore; spending on equipment or software aimed at automating processes; and costs of training employees so as to upgrade skills and capabilities.
It will be available for all businesses from Years of Assessment 2011 to 2015.Businesses which have at least 3 local employees (Singapore Citizens or PRs with CPF contributions) may convert the tax deductions or allowances arising from their qualifying expenditure on the six types of activities under the Credit into a non-taxable cash grant.
Visit IRAS website for more updated information regarding the Singapore Budget Tax Change 2010.
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