Professional Documents
Culture Documents
AR13 - About Us
AR13 - About Us
Contents
About Us 3
Chairman’s Statement 4
Members of the Board 5
Corporate Governance 7
Commissioner’s Message 8
Senior Management Team 9
Organisation Structure 12
IRAS at a Glance in FY2013/14 17
Our Revenue Collection 19
Partnering Taxpayers 21
Competitive Tax Environment, Thriving Economy 23
Low Cost of Compliance, High Level of Voluntary Compliance 26
Dedicated Individuals, Professional Service 30
Competent Team of People, Vibrant IRAS Community 36
Looking Beyond the Horizon 41
Highlights of Budget Changes 43
Competitive Tax Low Cost of Compliance, Competent Team of
Dedicated Individuals, Looking Beyond the Looking Beyond the
About Us Partnering Taxpayer Environment, Thriving High Level of Voluntary People, Vibrant IRAS
Professional Service Horizon Horizon
Economy Compliance Community 3
About Us
Chairman’s Statement
ASSISTING BUSINESSES AND WORKERS The dedication and capability of its people are essential to the success of
an organisation. On behalf of the Board, I express my appreciation to the
IRAS supports the Government in helping businesses restructure
management and staff of IRAS for their commitment and achievements
and raising their productivity through the implementation of various
in the past year.
schemes. IRAS has been administering the Productivity and Innovation
Credit (PIC) scheme since 2010. Several enhancements have been made
to the scheme, which include raising the maximum cash payout amount
to $60,000 and allowing businesses to claim timely PIC cash payouts on
a quarterly basis. IRAS also enhanced the PIC cash payout application MR PETER ONG
form with validation checks to minimise completion errors and reduce Chairman
Competitive Tax Low Cost of Compliance, Competent Team of
Dedicated Individuals, Looking Beyond the Looking Beyond the
About Us Partnering Taxpayer Environment, Thriving High Level of Voluntary People, Vibrant IRAS
Professional Service Horizon Horizon
Economy Compliance Community 5
Corporate Governance
Commissioner’s Message
Mrs Chia-Tern Huey Min Mr Ong Khiaw Hong Dr Tan Kim Siew Mrs Eng-Tay Geok Lee Mr James Khor Ngiap Long
Deputy Commissioner Deputy Commissioner Commissioner of Inland Revenue Deputy Commissioner Deputy Commissioner
(International, Investigation & (Corporate and Services Group) (Business Group) (Individual Group)
Indirect Taxes Group)
Chief Compliance Officer
Competitive Tax Low Cost of Compliance, Competent Team of
Dedicated Individuals, Looking Beyond the Looking Beyond the
About Us Partnering Taxpayer Environment, Thriving High Level of Voluntary People, Vibrant IRAS
Professional Service Horizon Horizon
Economy Compliance Community 10
Mr Andy Seah Yong Luck Mr Dennis Lui Siew Wah Mrs Claire Chua Ms Chow Wai Yee
Assistant Commissioner Assistant Commissioner Assistant Commissioner Assistant Commissioner
(Individual Income Tax Division) (Taxpayer Services Division) (Compliance Strategy and Risk Division) (Tax Policy and International Tax Division)
Mr Wilson Ong Joon Lim Mrs Sabina Cheong Hwee Bin Miss Loh Lee Kim
Assistant Commissioner Assistant Commissioner Assistant Commissioner
(Corporate Tax Division) (Goods and Services Tax Division) (Investigation and Forensics Division)
Competitive Tax Low Cost of Compliance, Competent Team of
Dedicated Individuals, Looking Beyond the Looking Beyond the
About Us Partnering Taxpayer Environment, Thriving High Level of Voluntary People, Vibrant IRAS
Professional Service Horizon Horizon
Economy Compliance Community 11
Mr Wang Teck Leng Mrs Patricia Mak Ms Ang Sock Tiang Ms Jackalin Er Hwee Pheng
Assistant Commissioner Assistant Commissioner Assistant Commissioner Assistant Commissioner
(Property Tax Division) (Enforcement Division) (Accounting and Processing Division) (Corporate Development Division)
STAFF
INFOCOMM
DIVISION
Assistant Commissioner
Ms Tang Wai Yee
LAW DIVISION
Chief Legal Officer
- Mr Liu Hern Kuan
- Mr Alvin Koh Meng
Sing (Designate)
CORPORATE
SERVICES DIVISION
Assistant Commissioner
Ms Chin Li Fen
COMPLIANCE CORPORATE
STRATEGY AND PROPERTY DEVELOPMENT
RISK DIVISION TAX DIVISION DIVISION
INTERNATIONAL, INVESTIGATION
INDIVIDUAL BUSINESS & INDIRECT TAXES CORPORATE AND SERVICES
Deputy Commissioner
Mrs Chia-Tern Huey Min
Deputy Commissioner Deputy Commissioner/ Deputy Commissioner
Mr James Khor Ngiap Long Chief Compliance Officer INTERNATIONAL TAX AFFAIRS & RELATIONS Mr Ong Khiaw Hong
Mrs Eng-Tay Geok Lee Director
Ms Wai Yean Tze
Mrs Chia-Tern Huey Min (Overseeing)
INTERNAL AUDIT
COMMISSIONER Director
Dr Tan Kim Siew Mrs Teo Po Chu
Mr Ong Khiaw Hong (Overseeing)
IRAS BOARD
Competitive Tax Low Cost of Compliance, Competent Team of
Dedicated Individuals, Looking Beyond the Looking Beyond the
About Us Partnering Taxpayer Environment, Thriving High Level of Voluntary People, Vibrant IRAS
Professional Service Horizon Horizon
Economy Compliance Community 13
Responsible for the Handles frontline tax enquiries Responsible for the Provides technical advice in
end-to-end administration of and manages overall taxpayer end-to-end administration of the formulation of tax policies
Individual Income Tax. This relationship, taxpayer services the Income Tax for companies, and fair application of tax
includes serving taxpayers, infrastructure and e-services. charities, bodies of persons; laws, reviews tax policies,
assessing and collecting tax, Betting Duty, Private Lotteries initiates tax rules changes
and ensuring compliance for Duty, Casino Tax and and safeguards Singapore’s
all employees, self-employed, Trust. This includes serving economic interest through
unincorporated businesses taxpayers, assessing and tax treaty negotiations and
and non-resident individuals. collecting tax, and ensuring resolution of international tax
This division also handles compliance. This division issues.
withholding tax administration also handles withholding tax
for payors who are individuals. administration for payors who
are companies.
• Miss Magdelene Silva • Ms Khoo Hung Ling • Ms Quek Su Lynn • Mrs Lim-Leow Lay Hwa
Director (Employee) Director (Contact Centre) Tax Director (Small Corporations) Tax Director (Tax Policy & Ruling)
• Miss Marjorie Tan Yong Hin • Ms Shirley Ng Li Mei • Miss Quek Puay Kiang • Miss Evelyn Lio Ee Min
Director (Foreigner & Clearance) Manager (Taxpayer Services Tax Director (Medium Corporations) Tax Director (International Tax)
Management Unit)
• Miss Loh Cheng Cheng • Mrs Choy-Koh Kum Lin
Director (Self-Employed) Tax Director (Large Corporations)
Develops IRAS-wide Deters tax evasion through Responsible for the Responsible for the
compliance strategies, investigation and forensics, end-to-end administration of end-to-end administration of
policies and programmes focusing on serious Goods and Services Tax. This Property Tax and Stamp Duty.
(including compliance risk non-compliant tax cases. includes serving taxpayers, This includes valuation of
assessment), and conducts assessing and collecting tax, properties, serving taxpayers,
strategic compliance research. and ensuring compliance. assessing and collecting tax,
This division also drives the and ensuring compliance.
use of business analytics in
IRAS.
• Mrs Claire Chua • Mr Low Han Hsien • Ms Lim Siew Gim • Ms Jennifer Lin Ee Leng
Director (Covering) Director (Investigation Branch 1) Director (General) Director (Residential)
• Mr Ang Seng Leong • Ms Tan Jek Swan • Ms Sally Mok Chong Chin
Director (Investigation Branch 2) Director (Wholesale Trade) Tax Director (Commercial)
Manages the collection, Promotes voluntary Builds and enhances the Manages and optimises
refund and accounting of compliance in the filing and organisation’s growth, IRAS’ financial, physical and
taxes, and the bulk processing payment of taxes and takes capabilities and branding human resources and drives
of taxpayer information and prompt and effective actions through the development of long-term organisational
tax documents. The division on defaulters. strategies, systems, culture effectiveness.
also implements payout and relationships.
schemes as directed by the
Government.
• Mrs Tan-Yeo Wei Kuen • Mr Colin Chew Koo Chung • Mr Ernest Lee Kian Meng • Miss Ang Sor Tjing
Director (Processing Centre) Director (Compliance Service) Director (Organisation Excellence) Director (Finance & Administration)
• Mrs Ang Siew Tee • Ms Deanna Choo Lay Yen • Ms Jackalin Er Hwee Pheng • Ms Foo Wei Lin
Director (Electronic Interface) Director (Individuals & Properties) Director (Corporate Planning) Director (Human Resource)
(Covering)
• Ms Harriet Marion Van Buerle • Mrs Chia-Tan Hai Geok
Director (Revenue Accounting) Director (Businesses) • Mr Walter Lim Hun Leng
Director (Corporate Communications)
Competitive Tax Low Cost of Compliance, Competent Team of
Dedicated Individuals, Looking Beyond the Looking Beyond the
About Us Partnering Taxpayer Environment, Thriving High Level of Voluntary People, Vibrant IRAS
Professional Service Horizon Horizon
Economy Compliance Community 16
Provides legal opinions on the Responsible for Infocomm Maintains strategic oversight Evaluates the adequacy
application of tax laws, drafts Technology (ICT) system of IRAS’ international and effectiveness of internal
legislations and other legal planning, acquisitions, engagement framework controls in IRAS and
documents, and represents deployment, maintenance and programmes. Drives ascertains whether policies
IRAS in legal proceedings. and operations. The division IRAS’ engagement efforts and guidelines are complied
also provides ICT services to advance Singapore’s with. Provides objective
and support and ensures interest on the international audit assurance to assist
the security and quality of IT tax front and advises the IRAS management in the
systems and resources. Government on international effective discharge of their
tax engagement. It manages responsibilities and in the
the Exchange of Information attainment of corporate
Management Team: Management Team: function and is the liaison objectives.
office for all international
• Mr Liu Hern Kuan • Ms Tang Wai Yee engagements.
Chief Legal Officer Assistant Commissioner
Collected S$41.6
billion in tax revenue Recovered Reduced current year
S$387 million in taxes tax arrears to 0.77%
and penalties from 15,233 a record low!
audited and investigated cases
Income
Tax
9 out of 10
Individuals (or GST-registered businesses)
filed their
& tax returns Returns Assessed 100%
on time of YA2013 individual Assessed 97.4% corporate
of
income tax returns received income tax returns received in 2012
8 out of 10 Companies by March 2014 by December 2013
79 comprehensive Avoidance of
Double Taxation Agreements
Competitive Tax Low Cost of Compliance, Competent Team of
Dedicated Individuals, Looking Beyond the Looking Beyond the
About Us Partnering Taxpayer Environment, Thriving High Level of Voluntary People, Vibrant IRAS
Professional Service Horizon Horizon
Economy Compliance Community 18
@
97.6% of the respondents
to our biennial Taxpayer Taxpayer Survey 2013
Survey were satisfied
Replied to 92% Attended to 92% of Answered 86% with IRAS’ service
Received 22,503 compliments,
Needs and Expectations
five working days 20 minutes within one minute up from 17,133 last year
IRAS is the main revenue body of the government, responsible for the collection of IRAS’ Collection Versus Total Government Operating Revenue
income tax (corporate income tax, individual income tax and withholding tax), GST,
property tax, stamp duty and betting taxes. In FY2013/14, IRAS collected a total S$ ‘billion
of S$41.6 billion. These taxes accounted for 72.9% of the Government Operating
Revenue and 11.0% of Singapore’s Gross Domestic Product. 60 100%
57.0
55.8
50 51.1
75.5% 75.4% 75.3% 74.1% 72.9% 80%
40 46.1 41.4 41.6
39.5
38.4 60%
34.7
In FY2013/14, IRAS collected a total of S$41.6 billion 30 29.9
40%
20
20%
10
0 0%
FY2009/10 FY2010/11 FY2011/12 FY2012/13 FY2013/14
IRAS’ Collection
FY2013/14 IRAS’ Collection by Tax Type Income tax (corporate income tax, individual income tax and withholding tax)
collection made up 52% of IRAS’ collection in FY2013/14. The collection of
Betting Taxes (S$2.4 billion) S$21.6 billion was 1.6% lower than that for FY2012/13. The decrease was
due to corporate income tax rebates given for Years of Assessment (YA) 2013
Stamp Duty (S$3.9 billion) and 2014, one-off individual income tax rebate given in YA2013, and lower
6% collections from withholding tax.
Corporate Income Tax FY2013/14 GST collection of S$9.5 billion was 5.3% higher over the previous
9% (S$12.7 billion) year, due to moderate private consumption expenditure growth in 2013.
Property Tax
(S$4.2 billion) 31% Property tax collection was S$4.2 billion, 10.6% higher than S$3.8 billion
10%
10% in FY2012/13 due to higher Annual Values and an increase in the number of
properties.
Compared to the collection in FY2012/13, stamp duty collection decreased by
S$0.4 billion or 8.8% to S$3.9 billion in FY2013/14. The reduction was due
to lower volume of property transactions, following the last round of property
23% market cooling measures introduced in January 2013.
Goods and Services Tax
(S$9.5 billion)
18% Individual Income Tax
(S$7.7 billion) Betting taxes rose to S$2.4 billion in FY2013/14, up by 3.2% from the previous
year.
3%
Note: Betting Taxes include Betting Duty, Casino Tax and Private Lotteries Duty.
Competitive Tax Low Cost of Compliance, Competent Team of
Dedicated Individuals, Looking Beyond the Looking Beyond the
About Us Partnering Taxpayer Environment, Thriving High Level of Voluntary People, Vibrant IRAS
Professional Service Horizon Horizon
Economy Compliance Community 21
PARTNERING
TAXPAYERS
Competitive Tax Low Cost of Compliance, Competent Team of
Dedicated Individuals, Looking Beyond the Looking Beyond the
About Us Partnering Taxpayer Environment, Thriving High Level of Voluntary People, Vibrant IRAS
Professional Service Horizon Horizon
Economy Compliance Community 22
Partnering Taxpayers
COMPETITIVE TAX
ENVIRONMENT,
THRIVING ECONOMY
Competitive Tax Low Cost of Compliance, Competent Team of
Dedicated Individuals, Looking Beyond the Looking Beyond the
About Us Partnering Taxpayer Environment, Thriving High Level of Voluntary People, Vibrant IRAS
Professional Service Horizon Horizon
Economy Compliance Community 24
”
and supports economic growth.
Singapore has 79
comprehensive DTAs, of
which 74 have been ratified.
Competitive Tax Low Cost of Compliance, Competent Team of
Dedicated Individuals, Looking Beyond the Looking Beyond the
About Us Partnering Taxpayer Environment, Thriving High Level of Voluntary People, Vibrant IRAS
Professional Service Horizon Horizon
Economy Compliance Community 25
the 43rd Study Group on Asian Tax Administration and Research (SGATAR) and IRAS hosted more than 150 foreign visitors from countries such as Australia,
the inaugural Global Tax Policy Conference. We exchanged views and gained Azerbaijan, Cambodia, Finland, Indonesia, Japan, Mexico, Myanmar, New Zealand,
insights on developments in the areas of compliance, debt management and Rwanda, Sri Lanka, Thailand and the United States in FY2013/14. Through these
demand management. We also conducted study visits to the Swiss Federal Tax foreign visits, we shared our experiences in tax administration, risk management,
Administration, the Irish Tax and Customs and the UK HMRC. During these visits, technological advances and work processes.
we discussed international tax developments and shared experiences in the areas
We also set up a new International Tax Affairs and Relations Branch to provide
of tax administration and compliance strategy.
strategic oversight of IRAS’ international engagement framework and programmes.
, Finland, Indon
odia esi
mb a,
, Ca Ja
p
n
ija
an
ba
,M
zer
exi
erica, Australia, A
co, M
yanmar, New
IRAS hosted more than
150 foreign visitors
f Am
Zea
so
lan
in FY2013/14.
ate
d,
St
Rw
d an
ite da,
, Un
IRAS hosted officials from New Zealand in November 2013
Sri L
anka, Thailand
Competitive Tax Low Cost of Compliance, Competent Team of
Dedicated Individuals, Looking Beyond the Looking Beyond the
About Us Partnering Taxpayer Environment, Thriving High Level of Voluntary People, Vibrant IRAS
Professional Service Horizon Horizon
Economy Compliance Community 26
”
ensure a cost-effective and efficient tax administration.
In FY2013/14, we published information on the GST and income tax treatment of For Individual Income Tax, 95.6% of the 2,010,695 returns issued in YA2013 were
the purchase and sale of virtual currencies as well as the transactions using virtual filed by the due date.
currencies. We conducted workshops and seminars for tax agents and businesses
on Form C-S, corporate income tax filing, the Productivity and Innovation
Credit (PIC) scheme and tax changes announced in Budget 2013. We also sent Filing Compliance Results for Individual Income Tax
educational letters to tax agents on correct expense claims and record-keeping
practices and used comic illustrations in educational mailers to raise awareness on
GST registration matters. 99.8%
97.4% 97.6% 97.9% 98.6%
91.1% 91.6% 94.0% 95.6%
90.1%
DETERRING NON-COMPLIANCE
We continued to maintain a strong presence among taxpayers to enhance
community confidence in our tax system. In FY2013/14, our tax audit and
investigation teams uncovered a total of 15,233 non-compliant cases and
recovered about S$387 million in taxes and penalties through coordinated audit
YA2009 YA2010 YA2011 YA2012 YA2013
and investigation programmes. We took errant taxpayers to task and publicised
prosecution cases as well as our compliance programmes to deter taxpayers
from committing tax offences. We stepped up vigilance against the abuse of the
PIC scheme and continued to invest in business analytics to gain insights into
taxpayers’ behaviour and enhance our compliance capabilities.
FY2009/10 FY2010/11 FY2011/12 FY2012/13 FY2013/14
TAX COMPLIANCE RESULTS
Our ongoing efforts to raise compliance levels have resulted in steady improvements
in filing and payment compliance rates. YA Returns Received in each FY YA Returns Received on time in each FY
CASES
600 179
133
52 47
400 118
FY2009/10 FY2010/11 FY2011/12 FY2012/13 FY2013/14
48 65 76
YA Returns Received in each FY YA Returns Received on time in each FY 45 44
438 424
317
200
For Goods and Services Tax, 93.9% of the 347,328 returns issued were filed on time. 264 269
DEDICATED INDIVIDUALS,
PROFESSIONAL SERVICE
Competitive Tax Low Cost of Compliance, Competent Team of
Dedicated Individuals, Looking Beyond the Looking Beyond the
About Us Partnering Taxpayer Environment, Thriving High Level of Voluntary People, Vibrant IRAS
Professional Service Horizon Horizon
Economy Compliance Community 31
”
taxpaying a pleasant experience for taxpayers.
Number of Taxpayers on No-Filing Service LISTENING AND LEARNING THROUGH TAXPAYERS’ FEEDBACK
We continued to actively engage taxpayers and gather their feedback to help us
1,400,000
improve the quality of our services and processes.
1,230,000
1,200,000
We held consultation sessions with our Taxpayer Feedback Panels (TFPs), which
1,131,000 comprised business leaders, representatives from key trade associations and
1,000,000 963,000 experienced tax professionals in Singapore. The TFP sessions helped us better
800,000 787,000 understand the changing needs of taxpayers and tailor our initiatives to meet their
653,000 needs. They also provided us with a platform to clarify taxpayers’ concerns about
600,000 our tax policies and rules. Issues discussed at the TFP sessions in FY2013/14
400,000 included the Tax Treatment of Group Insurance Premiums, e-Filing of Corporate
Tax Returns, and the Parent Relief Consultation Exercise.
200,000
0
2010 2011 2012 2013 2014
Year of Assessment
For the YA2014 Tax Season, some 75% of taxpayers filed their tax returns by
1 April 2014. This is 4 percentage points higher than that on 1 April 2013. We also
achieved an overall filing rate of 95%.
We launched the mobile-friendly version of myTax Portal (myTax.iras.gov.sg),
which enables users of mobile devices to use selected services within myTax Portal
without having to download any applications. We introduced the online Wage
Credit Scheme calculator, which helps employers to estimate the Wage Credit they
will receive based on the wages given to their employees.
We also launched the new Tax Statistics webpage on the IRAS website to provide
members of the public with one-stop access to official tax statistics such as the
taxes collected by IRAS, taxpayer compliance rates and IRAS’ service standards to
facilitate easy retrieval and analyses of the data. Engaging our TFP members on tax-related issues
Competitive Tax Low Cost of Compliance, Competent Team of
Dedicated Individuals, Looking Beyond the Looking Beyond the
About Us Partnering Taxpayer Environment, Thriving High Level of Voluntary People, Vibrant IRAS
Professional Service Horizon Horizon
Economy Compliance Community 33
22,503
20,000
90 83
17,133
16,000 72
65
12,000 12,182 60 57
38
8,000 7,757
6,471 30
4,000
0
FY2009 FY2010 FY2011 FY2012 FY2013 FY2009 FY2010 FY2011 FY2012 FY2013
Taxpayer Survey 20
13 We conducted the We achieved an overall satisfaction rate
biennial Taxpayer of 97.6%, higher than the 94.7%
tions Survey in 2013 to achieved in 2011.
Needs and Expecta
gain insights on
Satisfaction taxpayers’ needs
and expectations,
and their satisfaction
97.6%
with our services.
Competitive Tax Low Cost of Compliance, Competent Team of
Dedicated Individuals, Looking Beyond the Looking Beyond the
About Us Partnering Taxpayer Environment, Thriving High Level of Voluntary People, Vibrant IRAS
Professional Service Horizon Horizon
Economy Compliance Community 34
MR HUANG CHANGTAI
Changtai has been a great help. He has helped to resolve my
issues. He is clear in his explanation and polite. I am very
grateful to him.
“ We endeavour to develop a team of competent and dedicated people who will go the
”
extra mile to help achieve our Vision.
Asia Pacific Tax Conference in Malaysia, which discussed the latest trends in anti-
avoidance and tax planning as well as developments in tax litigation and transfer
pricing.
We organised in-house sharing sessions to keep our staff updated on industry
trends and tax developments. Topics covered in FY2013/14 included the Overview
of the Permanent Establishment Concept, IRAS Approved Tax Agent/Book-keeper
Scheme and the Wage Credit Scheme. The Annual Tax Conference, organised by our
Accredited Tax Specialist (ATS) community in September 2013, provided our ATSs
with the opportunity to discuss issues such as Tax Treaty Application of Permanent
Establishment Article and GST Rules for Voluntary Welfare Organisations. We
also continued to expose staff to different areas of work through job rotations and
secondments to the Ministry of Finance to develop their skills in tax policy work.
Celebrating National Day In recognition of our human capital best practices, we were conferred the Leading
HR Practices in Learning and Human Capital Development Award at the Singapore
STAFF STRENGTH HR Award 2013.
We have a staff strength of 1,933 as at 31 March 2014. Our staff turnover rate was
about 5% in FY2013/14. RECOGNISING STAFF
Nine IRAS staff were honoured with medals at the Singapore National Day Awards
DEVELOPING OUR PEOPLE in 2013. In recognition of their outstanding efficiency, competence and industry,
We continued to invest in our people to raise their technical competency and Ms Ang Sock Tiang (Assistant Commissioner, Accounting and Processing Division)
professional standards. In FY2013/14, more than S$4.3 million or about 2.1% of was bestowed the Public Administration Medal (Silver) and Miss Magdelene Silva
the total payroll was spent on staff training and each employee achieved an average (Director, Individual Income Tax Division) and Miss Lio Ee Min Evelyn (Tax Director,
of 13.8 mandays in learning and development. Tax Policy and International Tax Division) were bestowed the Public Administration
In FY2013/14, our people attended several international conferences. These Medal (Bronze).
included the Fourth IMF High Level Tax Conference in Japan, which discussed tax Miss Chua Li Tiam Sally (Manager, Accounting and Processing Division), Mr Tan
issues facing the Asian region; the OECD Task Force on Tax Crimes in France, which Lee Kwang Anthony (Manager, Corporate Tax Division) and Ms Yap Mei Mei (Group
discussed cooperation between tax and law enforcement agencies in combating Tax Specialist, Goods & Services Tax Division) were conferred the Commendation
tax crimes such as money laundering and bribery; and the IFA-IBFD 75th Jubilee Medal for their commendable performance and conduct.
Competitive Tax Low Cost of Compliance, Competent Team of
Dedicated Individuals, Looking Beyond the Looking Beyond the
About Us Partnering Taxpayer Environment, Thriving High Level of Voluntary People, Vibrant IRAS
Professional Service Horizon Horizon
Economy Compliance Community 38
IRAS won the MOF Best Project Award Staff and family members at IRAS Family Day 2014
In FY2013/14...
IRBM and IRAS staff at the Revenue Games 2014 e-Filing Service volunteers
Competitive Tax Low Cost of Compliance, Competent Team of
Dedicated Individuals, Looking Beyond the Looking Beyond the
About Us Partnering Taxpayer Environment, Thriving High Level of Voluntary People, Vibrant IRAS
Professional Service Horizon Horizon
Economy Compliance Community 40
LOOKING
BEYOND THE
HORIZON
Competitive Tax Low Cost of Compliance, Competent Team of
Dedicated Individuals, Looking Beyond the Looking Beyond the
About Us Partnering Taxpayer Environment, Thriving High Level of Voluntary People, Vibrant IRAS
Professional Service Horizon Horizon
Economy Compliance Community 42
ENHANCING PRODUCTIVITY
We will review our business processes to optimise the use of our resources
and maximise value for IRAS and the community. We will make effective use of
business analytics, technology and innovation to achieve greater efficiency. We will
also enhance our capabilities in managing compliance through appropriate use of
business analytics. We will imbue in our people the mindset to proactively look out
for innovative ways to enhance their effectiveness. Beyond IRAS, we will enhance
inter-agency collaboration to drive Whole-of-Government outcomes.
For enhanced tax deductions, the expenditure cap of S$400,000 of qualifying This requirement will take effect for PIC cash payout applications from YA2016.
expenditure per activity will be combined across YA2016 to YA2018 (i.e. S$1.2 million
per qualifying activity). The expenditure cap of S$100,000 for PIC cash payout cannot ALLOWING THE TAX DEFERRAL OPTION UNDER THE PIC SCHEME TO LAPSE
be combined across the three YAs. As the PIC cash payout serves a similar purpose to help businesses relieve cash-flow
concerns, the tax deferral option will lapse with effect from YA2015.
INTRODUCING PIC+ FOR SMES
A new PIC+ scheme will be introduced to provide support to SMEs making more EXTENDING THE RESEARCH AND DEVELOPMENT (“R&D”) TAX MEASURES
substantial investments to transform their businesses. Under the PIC+ scheme, the To continue encouraging private R&D and to give certainty to businesses, the additional
expenditure cap for qualifying SMEs will be increased from S$400,000 to S$600,000 50% tax deduction accorded under section 14DA(1) will be extended for ten years till
per qualifying activity per YA. This means that SMEs that invest beyond the current YA2025.
combined expenditure cap of S$1.2 million for each qualifying activity can claim 400% To attract businesses to conduct large R&D projects in Singapore, the further tax
enhanced tax deduction on an additional S$200,000 of qualifying expenditure. deduction accorded under section 14E will be extended for five years till 31 March
PIC+ will take effect for expenditure incurred in YA2015 to YA2018. The combined 2020.
expenditure cap will be as follows: up to S$1.4 million for YA2013 to YA2015, with In line with the above extensions, businesses can continue to claim tax deductions/
the additional expenditure cap of S$200,000 only applicable to expenditure incurred allowance on R&D expenditure incurred for R&D in areas unrelated to their existing
during the basis period relating to YA2015; and up to S$1.8 million for YA2016 to trade or business as long as the R&D is conducted in Singapore.
YA2018.
Businesses can also continue to claim a further deduction of up to 300%, on qualifying
The expenditure cap for PIC cash payout will remain at S$100,000 of qualifying R&D expenditure up to S$400,000 under the PIC scheme, which has been extended
expenditure per YA. till YA2018.
EXTENDING PIC BENEFITS TO TRAINING OF INDIVIDUALS UNDER CENTRALISED EXTENDING AND REFINING THE SECTION 19B WRITING DOWN ALLOWANCE
HIRING ARRANGEMENTS (“WDA”) SCHEME
In response to industry feedback and recognising that training of such individuals can To build Singapore as an IP hub, the section 19B WDA will be extended for five years
improve the productivity of the businesses where they are deployed, the PIC scheme till YA2020. The accelerated WDA for approved MDE companies will be extended for
will be enhanced to allow businesses to claim PIC benefits on training expenses three years till YA2018.
incurred in respect of individuals hired under centralised hiring arrangements.
All other existing conditions of the section 19B WDA remain unchanged.
This change will take effect from YA2014.
Businesses can also continue to claim a further 300% allowance on up to S$400,000
of such qualifying costs under the PIC scheme, which has been extended till YA2018.
Competitive Tax Low Cost of Compliance, Competent Team of
Dedicated Individuals, Looking Beyond the Looking Beyond the
About Us Partnering Taxpayer Environment, Thriving High Level of Voluntary People, Vibrant IRAS
Professional Service Horizon Horizon
Economy Compliance Community 44
EXTENDING AND ENHANCING THE LAND INTENSIFICATION ALLOWANCE (“LIA”) ALLOWING THE INVESTMENT ALLOWANCE (“IA”) SCHEME FOR AIRCRAFT
SCHEME ROTABLES TO LAPSE
To continue encouraging businesses to optimise land use, the LIA scheme will be As the scheme is assessed to be no longer relevant, the IA scheme for aircraft rotables
extended for five years till 30 June 2020. will be allowed to lapse after 31 March 2015.
The LIA will be extended to the logistics sector in recognition of the close nexus TREATING BASEL III ADDITIONAL TIER 1 INSTRUMENTS AS DEBT FOR TAX
between this sector and qualifying activities supported by LIA. PURPOSES
The LIA scheme will also be extended to businesses carrying out qualifying activities To provide tax certainty and maintain a level-playing field for Singapore-incorporated
on airport and port land. banks which issue Basel III Additional Tier 1 instruments, such instruments other
than shares, will be treated as debt for tax purposes. Hence, distributions on such
A new condition requiring existing buildings that have already met or exceeded the GPR instruments will be deductible for issuers and taxable in the hands of investors, subject
benchmark to meet a minimum incremental GPR criterion of 10% after renovation or to existing rules.
extension works will be introduced. This is to encourage businesses, especially those
already in the top quartile of the relevant GPR benchmark, to continue intensifying their The tax treatment will apply to distributions accrued in the basis period for YA2015
land use. and thereafter, in respect of such instruments issued by Singapore-incorporated banks
(excluding their foreign branches) that are subject to MAS Notice 637.
All other existing conditions of the LIA scheme remain unchanged.
The enhancements are effective for LIA approvals granted, and capital expenditure EXTENDING AND REFINING TAX INCENTIVE SCHEMES FOR QUALIFYING FUNDS
incurred on or after 22 February 2014. However, transitional rules will be made in To anchor and continue to grow Singapore’s asset management industry, the section
respect of the new condition on meeting the minimum incremental GPR criterion. 13CA, 13R and 13X schemes will be extended for five years till 31 March 2019. The
section 13C scheme will be allowed to lapse after 31 March 2014.
WAIVING THE WITHHOLDING TAX REQUIREMENT FOR PAYMENTS MADE TO The section 13CA, 13R and 13X schemes will be refined as follows:
BRANCHES IN SINGAPORE
To reduce compliance costs for businesses, payers will no longer need to withhold tax a) The section 13CA scheme will be expanded to include trust funds with resident
trustees, which are presently covered under the section 13C scheme, with effect from
on sections 12(6) and 12(7) payments made to non-resident Singapore branches of
1 April 2014;
foreign companies.
b) The investor ownership levels for the section 13CA and 13R schemes will be computed
These non-resident Singapore branches will continue to be assessed for income tax
based on the prevailing market value of the issued securities instead of historical value.
on such payments that they receive and will be required to declare such payments in
This change will be applied on any qualifying fund whose last day of the basis period for
their annual tax returns.
an assessment year falls on or after 1 April 2014. ; and
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Type of Relief Relief Quantum With Effect From YA2015 a) To further streamline the stamp duty regime, the stamp duty rates for other
instruments (land premiums and purchase of property, share transfers and
Handicapped spouse relief S$5,500 mortgages) executed on or after 22 February 2014 will be as follows:
Handicapped sibling relief S$5,500
i) Land Premiums and Purchase of Property
Handicapped child relief S$7,500
Purchase Price or Market Value (whichever is higher) Buyer’s Stamp Duty Rates
REMOVING TRANSFERS OF QUALIFYING DEDUCTIONS, AND DEFICITS BETWEEN
First S$180,000 1%
SPOUSES
To simplify the individual income tax system, married couples can no longer transfer Next S$180,000 2%
qualifying deductions and deficits between each other (including under the loss carry- Remainder 3%
back scheme) with effect from YA2016.
ii) Share Transfers and Mortgages
As a transitional concession, qualifying deductions and deficits incurred by a married
couple in and before YA2015 will still be allowed for inter-spousal transfers up till Types of Instruments Stamp Duty Rates
YA2017, subject to existing rules. 0.2% of the purchase price or market value of the stock or shares
Transfer of stock or shares
Any unabsorbed trade losses or capital allowances may still be carried forward to transferred, whichever is higher
future years to be set-off against the future income of the taxpayer, until the amount Mortgage instruments
0.2% or 0.4% of the relevant amount (depending on the type of
is fully utilised, subject to existing rules. Similarly, any unutilised donations may be mortgage instrument) subject to maximum duty of $500
carried forward to future years to be set-off against the future income of the taxpayer,
up to a maximum of five years. RAISING THE DUTY RATE ON TOTALISATOR OR PARI-MUTUEL BETTING (EXCLUDING
HORSE RACING) AND ANY OTHER SYSTEM OR METHOD OF CASH OR CREDIT
REMOVING THE SECTION 40 RELIEF BETTING
To simplify the individual income tax system, the section 40 relief will be removed with The duty on Totalisators, Pari-mutuel Betting (excluding Horse Racing) and any other
effect from YA2016. system or method of Cash or Credit Betting will be raised from 25% of gross bets (net
of GST) to 30% of gross bets (net of GST).
3. OTHER TAX CHANGES Revised Duty Rate: 30% x (Amount of bets received – GST)
STREAMLINING THE STAMP DUTY RATE STRUCTURE The change will take effect from 1 July 2014.
To ensure consistency in stamp duty treatment across leases of varying tenures, the Betting duties on Horse Racing, Sports Betting and Sweepstakes will remain unchanged.
basis for charging stamp duty on leases executed on or after 22 February 2014 will be
as follows:
Lease Period Stamp Duty Rates
Up to four years 0.4% of the total rent for the entire period of the lease
0.4% of four times of the average annual rent for the
Exceeding four years or for any indefinite term
entire period of the lease