Tax Alert 

KPMG's Tax Alert examines and discusses the recent tax developments in Singapore and the implications thereof.
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  • June 2015 - Issue 10 (PDF, 364KB) New
    Extension of the Enhanced-Tier Fund Tax Exemption Scheme
    The Enhanced-Tier Fund Tax Exemption Scheme (commonly known as Section 13X Scheme) was first introduced in 2009 to provide Singapore-based fund managers with greater flexibility in sourcing for mandates.

    The Section 13X Scheme provides for tax exemption on specified income derived from designated investments by an approved fund.

  • June 2015 - Issue 9 (PDF, 345KB) New
    Owners of Rental Property Can Claim Deemed Expenses Now
    The Singapore Government first announced in Budget 2015 that property owners who derive passive rental income from residential properties can elect to claim rental expenses on a 'deemed' basis in lieu of actual expenses in determining net taxable income. The rationale behind the deemed expense deduction is to simplify the tax filing process and alleviate the burden of record keeping for taxpayers.

    In response to Budget 2015, the Inland Revenue Authority of Singapore (IRAS) has published an e-Tax Guide providing additional guidance. This tax alert summarises the deemed expense election rule.

  • May
  • May 2015 - Issue 8 (PDF, 254KB)
    A Leg Up For The Future of Manufacturing in Singapore
    The SkillsFuture initiative, as announced in the 2015 Singapore Budget, is an ambitious programme: the Government is setting aside a billion dollars each year for the next five years to help Singaporeans gain deeper skills valued by industries.

    This initiative is good reason for the manufacturing sector to cheer. Amidst lacklustre productivity growth, SkillsFuture tackles the labour part of the productivity equation.

  • May 2015 - Issue 7 (PDF, 139KB)
    Go Big An SME may have less resources than an MNC, but it can still be an equally attractive employer
    SMEs are the growth engines of our economy, since they make up 99 per cent of the local enterprises and over 50 per cent of Singapore’s gross domestic product. Many are often looking out for growth opportunities, and many have established a presence overseas.

    However, as the business environment becomes more complex, how should small and medium-sized enterprises (SMEs) recalibrate themselves in order to stay competitive?

  • April
  • April 2015 - Issue 6 (PDF, 401KB)
    Rules Affecting Offshore Funds and Claiming of GST on Re-import of Value-Added Goods
    With effect from 1 April 2015, if an overseas incorporated fund wholly relies on a Singapore-based fund manager (SFM) to carry on its business, the offshore fund has a business establishment in Singapore through the SFM.

    The SFM is wholly carrying on the fund’s business if it has the overall responsibility to oversee or carry on the activities of the fund, such as the day-to-day operation and core business function and is the sole contracting fund manager with the fund.

  • March
  • March 2015 - Issue 5 (PDF, 230KB)
    Reporting requirements under the Foreign Account Tax Compliance Act (FATCA)
    The Inland Revenue Authority of Singapore (IRAS) issued the finalised e-Tax Guide on FATCA on 17 March 2015, relating to the implementation of the Singapore-US FATCA Intergovernmental Agreement (IGA) which entered into force on 18 March 2015. With this, all Reporting SGFIs are required to capture and prepare the relevant FATCA data according to the FATCA XML Schema. Reporting SGFIs are also required to enroll with the IDES by acquiring a digital certificate from a US IRS-approved Certificate Authority.

    Reporting SGFIs are responsible for putting in place the necessary procedures for account review, identification and reporting, and providing the correct information in the correct format on a timely basis to the IRAS.

  • February
  • February 2015 - Issue 4 (PDF, 429KB)
    Building deep skills complements productivity drive
    In many ways, this is a far-sighted Budget, aiming beyond basic solutions. It pledges support for companies venturing for bolder breakthroughs in the way they do business. While the productivity drive will remain broad-based, more help will be given to businesses that build innovative capacities and a global orientation.

    Encouragingly, in a move to make innovation pervasive in the economy, more forms of innovation will be recognised – including new ways of reaching customers, design and brand development, and overhauling of business processes. No longer is innovation narrowly confined to revolutionary breakthroughs, but now includes developmental applications of technology, where grants are concerned. All these are steps in the right direction, as we mature from a value-adding to a value-creating economy.

  • February 2015 - Issue 3 (PDF, 304KB)
    R&D tax regime should include broader range of projects
    In economic circles, it is taken as received wisdom that innovation - defined here as the application of knowledge in a novel way, primarily for economic benefit - is good. Faster innovation is even better. We can never have too much of it.

    Businesses regard it as a sure-win way of beating their corporate competitors. Governments believe innovative environments are crucial for their economies to prosper.

    So each year, we see rankings of the "research and development (R&D) intensity" of countries and companies - how much bang we get for each research buck that is spent. It is assumed that more spending leads to better economic or financial outcomes.

  • February 2015 - Issue 2 (PDF, 298KB)
    Productivity is a marriage of hardware and software
    The next time you check into a hotel in Europe or the US, chances are that you would be able to bypass the traditional stop at the front desk, do a self-check-in at an e-kiosk, and go straight to your room.

    The same efficiency that we now associate with automated machines (ATMs) at banks and online check-ins for flights is now reaching the hotel world.

    Such automated check-in systems may soon be on offer in Singapore too.

  • January
  • January 2015 - Issue 1 (PDF, 237KB)
    Tax time crunch Tips to boost your tax savings
    As a business owner who is a sole proprietor, you are in charge of your own business. Where the tax laws are concerned, you and your business are a single entity.

    While this entails certain freedom, it also creates added responsibilities. You will face additional taxes and reporting requirements, but you may also be eligible for certain business tax deductions.

    Under Singapore law, the income that a person derives through his business as a sole proprietor is assessable under his name. However, the person would be able to claim tax deductions for qualifying expenses against his business income.