Clarification of For avoidance of doubts, amendments are made Section 39 cap for CPF to clarify that the tax deduction for CPF MSTU [Clause Minimum Sum contributions for all contributions to a person’s 34(1)] Topping-Up retirement or special account, (whichever is (MSTU) applicable) are subject to the MSTU Topping-Up scheme Limit. The requirement to apportion the tax deduction is removed for legal clarity because there is no scenario under which the Comptroller is required to carry out that apportionment, and any adjustments will be made on the contribution amounts at source (by CPFB). Compulsory The Income Tax Act was amended in 2010 to Section provision of provide for the compulsory provision of 37(3B) donors’ Unique UIN/UEN by donors who make cash donations [Clause Identity directly to Institutions of Public Character 31(b)] Number (UIN) (IPCs). With the amendment, donors do not have or Unique to the tax deduction on these donations in Entity Number their income tax returns with effect from YA (UEN) for tax 2012. The tax deduction would be automatically deduction on included in their tax assessments. For donors donations who wish to remain anonymous and do not wish to claim tax deduction, they are not required to provide their UIN/UEN to the IPCs. From 1 January 2012, the compulsory provision of UIN/UEN will be extended to donors who make cash donations to IPCs through grant maker and donations of computers and art works to approved or prescribed institutions. Disallowance The legislative amendment seeks to disallow the Section 19B of enhanced claiming of the PIC benefits of an additional [Clause 30] writing-down 300% writing down allowance if the intellectual allowance property rights pertaining to the software are under PIC for acquired for purpose of licensing to others. This intellectual means that the additional 300% writing down property rights allowance will only be available to the end-user (IPR) relating of the software.
Clarification of cap for CPF Minimum Sum Topping-Up (MSTU) scheme For avoidance of doubts, amendments are made to clarify that the tax deduction for CPF MSTU contributions for all contributions to a person’s retirement or special account, (whichever is applicable) are subject to the MSTU Topping-Up Limit. The requirement to apportion the tax deduction is removed for legal clarity because there is no scenario under which the Comptroller is required to carry out that apportionment, and any adjustments will be made on the contribution amounts at source (by CPFB). Section 39 [Clause 34(1)] Compulsory provision of donors’ Unique Identity Number (UIN) or Unique Entity Number (UEN) for tax deduction on donations The Income Tax Act was amended in 2010 to provide for the compulsory provision of UIN/UEN by donors who make cash donations directly to Institutions of Public Character (IPCs). With the amendment, donors do not have to the tax deduction on these donations in their income tax returns with effect from YA 2012. The tax deduction would be automatically included in their tax assessments. For donors who wish to remain anonymous and do not wish to claim tax deduction, they are not required to provide their UIN/UEN to the IPCs. From 1 January 2012, the compulsory provision of UIN/UEN will be extended to donors who make cash donations to IPCs through grant maker and donations of computers and art works to approved or prescribed institutions. Section 37(3B) [Clause 31(b)] Disallowance of enhanced writing-down allowance under PIC for intellectual property rights (IPR) relating The legislative amendment seeks to disallow the claiming of the PIC benefits of an additional 300% writing down allowance if the intellectual property rights pertaining to the software are acquired for purpose of licensing to others. This means that the additional 300% writing down allowance will only be available to the end-user of the software. Section 19B [Clause 30]