Singapore company formation specialist Rikvin has today published the 2013 Singapore Budget Snapshot. The guide serves as a summary of all pertinent policies and tax changes that affect how entrepreneurs and key executives run a Singapore company between year of assessment (YA) 2013 and YA 2015.
The guide is divided into four areas, namely, 1) Singapore corporate tax rebates, 2) the Wage Credit Scheme (WCS), 3) the PIC Scheme Bonus and Enhancements as well as the 4) Tax Changes. In gist, the changes are as follows:
CORPORATE TAX REBATE
Every Singapore company will be eligible for a 30% corporate tax rebate from YA 2013 to YA 2015, capped at S$30,000 per year of assessment (YA). In addition, newly-formed companies will still be eligible for the full or partial Start-up Tax Exemption (SUTE) Scheme.
We’ve decided to illustrate the changes graphically to help our clients and followers have a better understanding of the most important changes pertaining to doing business announced during the Budget statement. Understanding these changes can then help them pivot their strategies and adjust their employment and growth plans for the coming years.”
WAGE CREDIT SCHEME
Government will co-fund 40% of the wage increases that firms give to Singapore citizen employees earning up to S$4,000 per month between YA 2013 and YA 2015.
For example, if an employer were to increase the salary of his worker by $200 per month in YA 2013, he will enjoy a total wage credit of S$80 per month for that YA. In YA 2014, if he continues to increase his employee’s monthly wage by another S$200, he will enjoy S$160 wage credit per month for that YA. The co-funding will continue until 2015 as long as the employer sustains a minimum of S$50 wage increment per month until YA 2015.
PIC SCHEME BONUS & ENHANCEMENTS
The PIC Scheme Guide (Productivity and Innovation Credit) offers a dollar-for-dollar matching bonus capped at S$15,000 for 3 YAs. This is over and above existing PIC benefits. In addition, the scope of the PIC Scheme has been enhanced to include IP In-Licensing as and a wider variety of automation equipment as qualifying activities.
OVERVIEW OF TAX CHANGES
This section lists the summary of all tax changes for individuals as well as businesses.
Each of the first three sections are presented via information design. The simple graphic illustrations demonstrate how each of the policies can be applied, thereby facilitating a clearer understanding of new policy changes.
Commenting further, Ms. Christine Lim, General Manager of Rikvin said, “We’ve decided to illustrate the changes graphically to help our clients and followers have a better understanding of the most important changes pertaining to doing business announced during the Budget statement. Understanding these changes can then help them pivot their strategies and adjust their employment and growth plans for the coming years.”