On or about 19 June 2019, the Ministry of Finance (MOF) is inviting interested parties to provide feedback on the draft Income Tax (Amendment) Bill 2019 from 19 June to 10 July 2019.
The proposed amendments to the Income Tax Act (“ITA”) include 7 changes announced in the 2019 Budget Statement, with the key changes as follows:
- Personal Income Tax Rebate (as part of the Bicentennial Bonus) of 50% of tax payable capped at $200 will be granted to all tax resident individuals for Year of Assessment (“YA”) 2019,
- Lapse the Not Ordinarily Resident (“NOR”) Scheme which was introduced in Budget 2002 will lapse after YA 2020. The last such NOR status will be granted for YA 2020 and expire in YA 2024, and
- Extend and refine the tax incentive schemes for funds managed by Singapore-based fund managers. 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.
The other proposed amendments also provides for 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. These commission agents will be allowed to claim tax deduction based on either:
- a prescribed deemed expense ratio, set at 25% of gross commission income; or
- 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.
For more information, please visit the MOF website press release.
Source: MOF website 19 June 2019.