This content is from: Local Insights

Singapore

In February, the Singapore government unveiled its budget for 1998. Highlights of the budget for businesses include:

  • stamp duty abolished on all instruments except those related to stocks and shares and immovable property;
  • a full exemption from income tax for five to 10 years for fund managers managing at least S$5 billion of non-resident funds, with effect from year of assessment 1999 (fund managers managing less than S$5 billion may qualify on a case-by-case basis);
  • no tax on disposal gains from unit trusts with immediate effect;
  • no tax on fee income from arranging debt securities in Singapore;
  • 10% preferential tax rate on bond interest and bond trading income with immediate effect;
  • extension of tax exemption for syndicated offshore credit and underwriting for five years with effect from April 1;
  • no tax deduction limits for bank general provisions for two years, from year of assessment 1998;
  • venture capital tax concession for up to five more years on a case-by-case basis;
  • tax concession for approved exhibition organizers, from year of assessment 1999;
  • no tax on income from freight uplift, from year of assessment 1999;
  • tax concession for global shipping agencies, ship management companies and freight and logistics operators for five years from year of assessment 1999;
  • no tax on income of approved insurers from offshore marine hull and liability insurance from year of assessment 1999;
  • tax concession for offshore income from internet transactions, for five years from year of assessment 1999;
  • double tax deduction for approved relocation and recruitment expenses for hiring foreign talent;
  • enhancement of Local Enterprise Financing Scheme; and
  • a waiver of property tax for land under development for up to five years.

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