SUMMARY TABLE ON PROPOSED NON-BUDGET CHANGES TO THE INCOME TAX ACT s/n. Legislative Change Brief Description of Legislative Change Amendment to Income Tax Act [Clause in Income Tax (Amendment) Bill] Allow tax exemption on To exempt from tax an SRS member’s SRS savings of up to Section 10L Supplementary Retirement $400,000 for a deemed withdrawal made upon death, or a [Clause 7] Scheme (“SRS”) withdrawal withdrawal in full made on grounds of terminal illness. This is to upon death or terminal ensure that the SRS member is not unduly disadvantaged by the illness withdrawal. The change will be effective from YA 2016. Ensure that a dependant is To clarify that a dependant can be the subject of claim of only one Section 39 the subject of claim of only dependant-related personal income tax relief, with the exception of [Clause 25] one dependant-related the Grandparent Caregiver Relief and Working Mother’s Child personal income tax relief Relief. This is to align the tax treatment of all dependant-related reliefs and to ensure consistency by disallowing a dependant from being the subject of multiple dependant-related relief claims. Align the interest rate used To align the interest rate payable by the Comptroller on a refund of Section 93 in calculating the interest tax withheld (pending the determination of an appeal by the [Clause 40] payable by the Comptroller Comptroller against an order or a decision by the Income Tax Board in specified scenarios to the of Review or by a court) to the Prime Lending Rate adopted by the Prime Lending Rate Government in respect of monies owed to and by the Government. Align the personal income To align the various individual non-tax-resident / Hindu joint family Sections 43, 45 and tax rate for non-tax-resident tax rates to the top marginal personal income tax rate of 22% with 45B individual taxpayers to the effect from YA 2017. [Clauses 26, 35 and top marginal personal 36] income tax rate of 22%
SUMMARY TABLE ON PROPOSED NON-BUDGET CHANGES TO THE INCOME TAX ACT s/n. Legislative Change Brief Description of Legislative Change Amendment to Income Tax Act [Clause in Income Tax (Amendment) Bill] Allow tax exemption on Supplementary Retirement Scheme (“SRS”) withdrawal upon death or terminal illness To exempt from tax an SRS member’s SRS savings of up to $400,000 for a deemed withdrawal made upon death, or a withdrawal in full made on grounds of terminal illness. This is to ensure that the SRS member is not unduly disadvantaged by the withdrawal. The change will be effective from YA 2016. Section 10L [Clause 7] Ensure that a dependant is the subject of claim of only one dependant-related personal income tax relief To clarify that a dependant can be the subject of claim of only one dependant-related personal income tax relief, with the exception of the Grandparent Caregiver Relief and Working Mother’s Child Relief. This is to align the tax treatment of all dependant-related reliefs and to ensure consistency by disallowing a dependant from being the subject of multiple dependant-related relief claims. Section 39 [Clause 25] Align the interest rate used in calculating the interest payable by the Comptroller in specified scenarios to the Prime Lending Rate To align the interest rate payable by the Comptroller on a refund of tax withheld (pending the determination of an appeal by the Comptroller against an order or a decision by the Income Tax Board of Review or by a court) to the Prime Lending Rate adopted by the Government in respect of monies owed to and by the Government. Section 93 [Clause 40] Align the personal income tax rate for non-tax-resident individual taxpayers to the top marginal personal income tax rate of 22% To align the various individual non-tax-resident / Hindu joint family tax rates to the top marginal personal income tax rate of 22% with effect from YA 2017. Sections 43, 45 and 45B [Clauses 26, 35 and 36]
ITA2015_NBC_SummaryTable.docx