Tax Incentive of Cit in Singapore Essay
Singapore is well positioned to maintain its economic competitiveness in today’s global environment with a low headline corporate tax rate of 17%, generous tax exemptions for small-to-midsize companies, and industry-specific tax incentives. The Government of Singapore provides a comprehensive package of tax concessions and incentives to businesses whose business activities reflect the direction in which the state plans to steer economic development.
1. Development and Expansion Incentive (DEI)
The DEI encourages Singapore-based companies to move into high value-addition business activities, expand their operations in the country, and procure advanced machinery and equipment by offering a reduced tax in the range of 5%-10% …show more content…
The Land Intensification Allowance provides an initial tax allowance of 25% and annual tax allowance of 5% on qualifying capital expenditure incurred for the construction or renovation/extension of a qualifying building or structure.
5. Integrated Investment Allowance (IIA)
The Integrated Investment Allowance provides an allowance based on a percentage of approved fixed capital expenditure to be incurred on productive equipment that is placed outside Singapore for an approved project.This allowance is granted on top of the normal capital allowance.
6. Mergers & Acquisitions (M&A) Scheme
The Mergers and Acquisitions Scheme provides an allowance of 5 percent of the value of acquisition, subject to a maximum of $5 million for each year of assessment. It also provides deductibility of transaction costs and stamp duty relief. EDB's approval is required for the waiver of the condition that the ultimate holding company for the group must be incorporated and tax resident in Singapore.
7. Finance & Treasury Centre (FTC) Tax Incentive
The Finance and Treasury Centre Tax Incentive provides a reduced corporate tax rate on fees, interest, dividends and gains from qualifying services and activities. It also