(a) Budget 2019 changes. There are 7 changes announced in the 2019 Budget Statement. The key changes are:
i) Personal Income Tax Rebate. As part of the Bicentennial Bonus, a Personal Income Tax Rebate of 50% of tax payable capped at $200 will be granted to all tax resident individuals for Year of Assessment (“YA”) 2019 (i.e. for income earned in 2018).
ii) Lapse the Not Ordinarily Resident ("NOR") Scheme. Introduced in Budget 2002, the NOR scheme will lapse after YA 2020. The last such NOR status will be granted for YA 2020 and expire in YA 2024. Individuals who have been accorded the NOR status and continue to meet the conditions will continue to be granted NOR tax concessions until their status expires.
iii) Extend and refine the tax incentive schemes for funds managed by Singapore-based fund managers. To continue to grow Singapore’s asset management industry, the tax concessions relating to qualifying funds under Sections 13CA/ 13R/ 13X of the ITA will be extended till 31 December 2024 along with refinements to the scheme parameters.
(b) Other proposed amendments. There are 12 changes to existing tax policies and administration, arising from the periodic review of Singapore’s income tax system. The changes include introducing a prescribed deemed expense ratio for tax resident individuals who are self-employed commission agents (i.e. general commission agents, insurance agents, real estate agents, and remisiers) earning gross annual commission income of up to $50,000 in respect of which there are deductible outgoings or expenses. To ease tax compliance, these commission agents will be allowed to claim tax deduction based on either (i) a prescribed deemed expense ratio, set at 25% of gross commission income; or (ii) the actual amount of expenses incurred in the production of their commission income. This will be effective from YA 2020, i.e. in respect of income earned in 2019. The remaining two changes are technical amendments.
(a) Please identify yourself and the organisation you represent (if any) so that we can follow up to clarify any comments if needed.
(b) Be clear and concise in your comments.
(c) Focus your comments on how the legislative amendments can be better written to make them clearer and to make compliance easier, or on how the non-Budget tax policy changes can be improved.
(d) Use the prescribed template provided to organise your feedback.
(e) As far as possible, explain your points with illustrations, examples, data or alternative formulations of the amendments.
(a) email to firstname.lastname@example.org (preferred mode); or
(b) fax to 6337 4134; or
(c) post to:
Ministry of Finance100 High Street, #10-01The TreasurySingapore 179434Attention: Tax Policy Directorate
10. For reference, please refer below to download the relevant documents for this public consultation.