Insurance Broking Business [Clause 35] (“IBD-SIBB”) scheme to lapse Rationalise the withholding tax As part of the Government’s process to continually review tax Section 13 exemptions for the financial concessions to ensure relevance, the WHT exemptions for interest from sector approved Asian Dollar Bonds will be withdrawn [Clause 9(b)] for payments under agreements entered into on or after 1 January 2019. Enhance the tax deduction for To encourage R&D to be done in Singapore, we will increase the tax Sections 14DA, qualifying expenditure on deduction for staff costs and consumables incurred on qualifying R&D 14E qualifying research and projects performed in Singapore from 150% to 250%. development (“R&D”) projects [Clauses 16, 17] performed in Singapore This change will take effect from YA 2019 to YA 2025. Enhance the tax deduction for To encourage businesses, in particular smaller ones, to register and Section 14A costs on protecting intellectual protect their IPs, we will: property (“IP”) a) Extend the scheme till YA 2025; and [Clause 13] b) Raise the tax deduction from 100% to 200% for the first $100,000 of qualifying IP registration costs incurred for each YA. This change will take effect from YA 2019 to YA 2025. Enhance the tax deduction for To support businesses to buy and use new solutions, we will raise the Section 14WA costs on IP in-licensing tax deduction from 100% to 200% for the first $100,000 of qualifying IP in-licensing costs incurred for each YA. [Clause 20] Qualifying IP in-licensing include payments made by a qualifying person to publicly funded research performers or other businesses, but
Insurance Broking Business (“IBD-SIBB”) scheme to lapse [Clause 35] Rationalise the withholding tax exemptions for the financial sector As part of the Government’s process to continually review tax concessions to ensure relevance, the WHT exemptions for interest from approved Asian Dollar Bonds will be withdrawn for payments under agreements entered into on or after 1 January 2019. Section 13 [Clause 9(b)] Enhance the tax deduction for qualifying expenditure on qualifying research and development (“R&D”) projects performed in Singapore To encourage R&D to be done in Singapore, we will increase the tax deduction for staff costs and consumables incurred on qualifying R&D projects performed in Singapore from 150% to 250%. This change will take effect from YA 2019 to YA 2025. Sections 14DA, 14E [Clauses 16, 17] Enhance the tax deduction for costs on protecting intellectual property (“IP”) To encourage businesses, in particular smaller ones, to register and protect their IPs, we will: a) Extend the scheme till YA 2025; and b) Raise the tax deduction from 100% to 200% for the first $100,000 of qualifying IP registration costs incurred for each YA. This change will take effect from YA 2019 to YA 2025. Section 14A [Clause 13] Enhance the tax deduction for costs on IP in-licensing To support businesses to buy and use new solutions, we will raise the tax deduction from 100% to 200% for the first $100,000 of qualifying IP in-licensing costs incurred for each YA. Qualifying IP in-licensing include payments made by a qualifying person to publicly funded research performers or other businesses, but Section 14WA [Clause 20]
ita2018_summarytable_budgetc6fab95452f447848cc95844932ef730.docx