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Deloitte Releases Singapore 2015 Budget Wish List

Friday, January 2, 2015

Deloitte Singapore has released its annual tax policy wish list, which has been compiled in response to an ongoing Ministry of Finance pre-2015 Budget consultation on tax and spending measures.

Deloitte said the list focuses on achieving "sustainable, inclusive growth and a forward-looking, competitive business environment for Singapore," and, to that end, the Government should "consider revisiting" some of the tax incentives currently available for investors.

For example, the wish list proposes an increase in the partial tax exemption on chargeable income for small- and medium-sized enterprises (SMEs) to the first SGD600,000 (USD452,700) from the current SGD300,000. The effective tax rate for SMEs with chargeable income of SGD600,000 would then drop to 7.8 percent, from the current 12.7 percent.

To raise productivity and innovation, Deloitte believes that the administrative burden of the Productivity and Innovation Credit (PIC) scheme could be lowered by combining the cap for a PIC cash payout, which is currently limited to SGD100,000 per year of assessment (YA), across the relevant YAs until 2018, similar to the provision available for PIC enhanced deductions.

In addition, to offer more support for SMEs, it suggests that the PIC cash payout conversion cap should be increased to SGD200,000 per YA, while an enhanced deduction for qualifying PIC spending for SMEs could be increased to 400 percent (from 300 percent), making a total of 500 percent tax deduction.

The wish list also proposes a number of GST changes, including the introduction of a reverse charge mechanism. It also proposes waiving the requirement to report zero-rated purchases and increasing the value threshold for simplified invoices from SGD1,000 to SGD3,000.

The firm has said Singapore should also undertake a review of the measures in place for key industries, including for financial services, shipping, telecommunications, and real estate investment trusts. Last, Deloitte recommended that there should be a reduction in domestic interest withholding tax rates from the current 15 percent to 10 percent, so as to reduce the cost of financing for Singapore companies. A thin capitalization rule could be implemented to mitigate the possible impact of this change on the Singapore tax base, it said.

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The Report

Offshore Trusts Guide: Introduction

The History of Offshore Trusts
Development of Professional Competence in the Jurisdictions
What Future for the Trust?
The New Age of Transparency
The Swiss Association of Trust Companies
The Society of Trusts and Estates Practitioners

Offshore Trusts Guide: Jurisdictions

Bahamas

Bahamas: Legal Framework and Formation Rules and Fees
Bahamas: 2006 Private Trust Companies Legislation

Barbados

Barbados: Legal Framework and Formation Rules and Fees
Barbados: Supervisory and Licensing Regime and Fees

Bermuda

Bermuda: Legal Framework and Formation Rules and Fees
Bermuda: Supervisory and Licensing Regime and Fees

British Virgin Islands

British Virgin Islands: Legal Framework and Formation Rules and Fees
British Virgin Islands: Special Trusts Act 2003
British Virgin Islands: The Trustee Act 2003
British Virgin Islands: :Supervisory and Licensing Regime and Fees
British Virgin Islands: New Laws on Private Trust Companies
British Virgin Islands: New Private Trust Company Regulations

Cayman Islands

Cayman Islands: Legal Framework and Formation Rules and Fees
Cayman Islands: Supervisory and Licensing Regime and Fees

Cook Islands

Cook Islands: Legal Framework and Formation Rules and Fees
Cook Islands: Supervisory and Licensing Regime and Fees

Cyprus

Cyprus: Legal Framework and Formation Rules and Fees
Cyprus: Supervision, Licensing and Tax

Gibraltar

Gibraltar: Legal Framework and Formation Rules and Fees
Gibraltar: Legislation, Regulation and Supervision

Guernsey

Guernsey: Legal Framework and Formation Rules and Fees
Guernsey: Trusts Law 2007

Isle of Man

Isle of Man: Legal Framework and Formation Rules and Fees
Isle of Man: Supervisory and Licensing Regime
Isle of Man: Uses Clients and Tax Treatment

Jersey

Jersey: Legal Framework and Formation Rules and Fees
Jersey: Supervisory and Licensing Regime
Jersey: Trusts Amendment Act 2006
Jersey: Foundations

Liechtenstein

Liechtenstein: Legal Framework and Formation Rules and Fees
Liechtenstein: Regulation Supervision and Transparency
Liechtenstein: Characteristics of Liechtenstein Trusts
Liechtenstein: Foundations

Madeira

Madeira: Legal Framework and Formation Rules and Fees

Malta

Malta: Legal Framework and Formation Rules and Fees
Malta: The Trust and Trustees Act 2004

Mauritius

Mauritius: Legal Framework and Formation Rules and Fees
Mauritius: Characteristics of the 2001 Trusts Act
Mauritius: Additional Provisions of the 2001 Trusts Act
Mauritius: Tax Treatment

Monaco

Monaco: Legal Framework and Formation Rules and Fees

Nevis

Nevis: Legal Framework and Formation Rules and Fees

Panama

Panama: Legal Framework and Formation Rules and Fees
Panama: Requirements for Acting as Trust Company in Panama

Seychelles

Seychelles: Legal Framework and Formation Rules and Fees

Turks & Caicos

Turks & Caicos: Legal Framework and Formation Rules and Fees
Turks & Caicos: The Voidable Dispositions Ordinance

Vanuatu

Vanuatu Legal Framework and Formation Rules and Fees




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