Tax has long been a tool to influence behaviour towards desirable economic goals. The fundamental principle of Singapore’s tax policy is to keep tax rates competitive so as to retain our position as an attractive and substantive investment hub while maintaining a trusted and reputable tax regime. Despite already having one of the lowest corporate income tax rates in the world, currently at 17%, Singapore still offers a wide range of incentives to attract foreign investments. Generally, the tax incentives available are in the forms of either a tax exemption, reduced tax rate or tax allowance, subject to stringent qualifying conditions. In effect, these incentives help companies from a broad spectrum of industries lower their effective tax rates. Singapore’s compliance with the key Action Plans of the Base Erosion and Profit Shifting initiative has strengthened Singapore’s tax incentive regime in the eyes of the global community. Additionally, the Singapore Government has enhanced several existing tax incentive schemes in Budget 2020 to improve Singapore’s competitiveness in attracting and retaining investments even in the current uncertain economic environment.
On completion of this programme, participants should be able to obtain an understanding of:
- The tax incentive environment in Singapore, including overview of the available incentive schemes and the broad requirements to qualify;
- Global tax developments and implications on Singapore’s incentive policy; and
- Enhancements to existing tax incentives announced in Budget 2020
1. Overview of Singapore’s tax incentive environment
- Objectives of Singapore’s tax policy
- Role of tax incentives
- Underlying principles of tax incentives
2. Base Erosion and Profit Shifting (BEPS)
- Overview of BEPS
- Where does Singapore stand?
- Implications of Singapore’s BEPS-compliant tax incentives
3. Key tax incentives in Singapore
- Summary of available incentive schemes, including enhancements under Budget 2020, the objective(s) and the broad requirements to qualify
- How can my business benefit from tax incentives, especially in an uncertain economic environment
4. Tax incentive related issues
- Common administrative and accounting related problems during incentive period
- Cost-benefit analysis for incentive application
- Incentive compliance framework
5. Tax incentive application process
- Tax incentive application process
- Importance of tax incentive negotiation
- Common pitfalls to avoid during tax incentive negotiation
6. Moving forward
- BEPS 2.0 and Industry Transformation
- Implications for the future of Singapore’s tax incentive regime