On or about 15 August 2019, the Ministry of Finance (MOF) has released the summary of responses to the public consultation on the draft Income Tax (Amendment) Bill 2019.
The key feedback received pertained to the following tax changes:
- to increase the prescribed deemed expense ratio, and to increase or remove the revenue threshold for self-employed commission agents
- to clarify on the revocation of tax incentive awards upon the failure of an incentive recipient to meet the conditions of a tax incentive
- to clarify that the amendment of the definition of “qualifying debt securities” under s 13(16) of the Income Tax Act will permit an alternative set of qualifying conditions for insurance-linked securities, and
- to clarify the lapsing of the Approved Unit Trust Scheme.
Of the 46 suggestions received, 28 suggestions were accepted and incorporated into the draft text of the Bill. The other suggestions were not accepted, as they were inconsistent with the policy objectives of the proposed legislative changes or with legislative drafting conventions.
The proposed legislative changes will be incorporated into the draft Income Tax (Amendment) Bill 2019 to be presented to Parliament in the last quarter of 2019.
Source: MOF website, 15 August 2019