Singapore Tax Incentives
Two Corporate Tax Incentives for Singapore: At the start of the year 2013, Singapore has already cooked two corporate tax incentives that will make it even more appealing to many investors worldwide, which are highlighted within in the contents of the introduction of the Integrated Investment Allowance.
The Role of the Integrated Investment Allowance
The Integrated Investment Allowance (IIA) has been pushed and has been approved by the Ministry of Trade and Industry Singapore as it tries to put Singapore on edge with the ever changing business environment.
Included in it are the following taxes incentives that will certainly make you smile happily while watching your business grow even more in Singapore.
Additional Allowance on Fixed Capital Expenditure
Under this scheme, capital expenditures that have been incurred on or after February 17, 2012 will be qualified to take advantage of this scheme, which will run for five years. However, the existing Integrated Industrial Capital Allowance incentive would be removed, as IIA will replace it this year.
With this, companies may now claim capital allowance on equipment and plants used in their overseas operations, if and only if it is in connection with their business or trade and it adheres to the required specifications listed in the amendment.
Amendment to the Maximum Possible Incentive from 20 to 40 years for the Development and Expansion Incentive (DEI)
An additional delight to investors is the lengthening of the maximum efficacy of the scheme from twenty (20) to forty (40) years, which is seen by the Ministry as a good way to calibrate further long-term investment plans in Singapore, as it creates a steadier flow of investment for the country. It also believes that this will encourage companies to participate in high-value added activities in the city.
Both of these amendments and more has been approved as it is seen as an act to stimulate more economic activities in Singapore.
The additional claim on the capital allowance for qualifying equipment is believed to attract wholly owned subsidiaries outside of Singapore, to put the country on their priority list as it becomes more flexible with their intended overseas operation structure.
Singapore continues to think of ways and schemes that will help it maintain its position as the Number One destination for business enthusiasts. This move proves this commitment; therefore, don’t be too surprised if you will find more amendments in the future that will cater to advantageous business benefits in the future.