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26 February 2019 Singapore releases Budget 2019 On 18 February 2019, Singapore released its Budget for financial year 1 April 2019 to 31 March 2020 (the Budget 2019). The Budget 2019 aims to turn Singapore into a Global-Asia hub of technology, innovation and enterprise. Various programs and plans were announced to support the three key thrusts of building deep enterprise capabilities, worker capabilities and forging deeper partnerships. Detailed discussionExtension of Writing Down Allowance (WDA) for acquisition of qualifying Intellectual Property Rights (IPRs)In recognition that IPRs are important creators of value in a knowledge-based economy, the WDA for acquisition of qualifying IPRs will be extended by five years to cover capital expenditure incurred in respect of qualifying IPRs acquired on or before the last day of the basis period for the Year of Assessment1 (YA) 2025. To maintain support to companies in their automation, productivity and scale-up efforts, the 100% IA measure under the Automation Support Package will be extended by two years, for projects approved by Enterprise Singapore from 1 April 2019 to 31 March 2021. The approved capital expenditure will remain capped at S$10m (US$7.4m) per project. Various other tax incentives have also been extended and/or refined, particularly in the funds and asset management space. The Singapore Budget 2019 Synopsis which can be found here provides an in-depth analysis of the Budget 2019 measures. 1. The term “year of assessment” (YA) refers to the year in which income tax is assessed on the company. The basis period for a particular YA for a company is the financial year ending in the year preceding that YA. Ernst & Young Solutions LLP, International Tax Services, Singapore
Ernst & Young LLP, Singapore Tax Desk, New York
Ernst & Young LLP, Asia Pacific Business Group, New York
Document ID: 2019-5277 |
