The Singapore Budget 2013 revealed the Government’s two key pillars for a better Singapore. They are restructuring for quality growth and building a more inclusive society. The government has remained steadfast in its pursuit of productivity and, at the same time, will enhance assistance to businesses. For a more inclusive society, the Government will enhance social mobility, adopt more progressive taxation and enhance help to the needy.
Budget 2013 Highlights
Productivity
Productivity and Innovation Credit (PIC) Bonus
- Cash bonus for businesses investing a minimum of $5,000 in PIC qualifying expenditure per year, up to $15,000 over YA 2013 to YA 2015
Enhancements to the PIC scheme
- Update prescribed equipment list and liberalize conditions for equipments not in list
- Intellectual property (IP) rights under licensing agreements to qualify under scheme
Land Productivity Grant
- Grant to companies that intensify land use or save land and help for companies which relocate offshore while retaining core functions in Singapore
Industry-Wide Collaborations
- Co-fund development and adoption of solutions through Collaborative Industry Projects
- Expand Partnerships for Capability Transformation (PACT) beyond the manufacturing sector
- Link SMEs with research institutes and technology providers to develop productivity solutions
Manpower
Co-Fund wage increase through wage credit scheme (WCS)
- Co-fund 40% of gross monthly wage increases for Singaporeans earning up to $4,000 over next three years
Tightening of Foreign Labor
- Higher levies on foreign workers, varying by sector and skill-levels, in July 2014 and July 2015
- Cut Dependency Ratio Ceiling (DRC) for services work permits to 40% from 45% and S-Pass to 15% from 20% from 1 July 2013
- Cut DRC in marine sector to around one-third over 2 phases in 1 Jan 2016 and 1 Jan 2018
- Increase S Pass qualifying salary criteria to $2,200 from $2,000
- Tighten eligibility for Employment Pass (EP) workforce, especially for Q1 pass holders
Helping Businesses to Cope with Cost Pressures
- Corporate Income Tax (CIT) Rebate of 30%, capped at $30,000 per YA from YA 2013 to YA 2015
- Commercial vehicles, beyond ten-year COE, allowed to renew COE for 2 five-year periods
- 30% road tax rebate for goods vehicles, buses and taxies for one year
The Singapore Budget 2013 is aimed at bringing about a better Singapore. With the implementation of this, if you as business owner need assistance and professional help on areas such as taxation or advisory matters, do take a look at what J Accounting Services have to offer you.
