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SG Budget Reactions: On corporate tax
THE Singapore government will spend an extra S$310 million over Years of Assessment (YA) 2017 and 2018 to enhance and extend the Corporate Income Tax rebate.
In his Budget speech on Monday, Finance Minister Heng Swee Keat said the cap for the rebate will go up from S$20,000 to S$25,000 for YA2017, and this rebate will remain at 50 per cent of tax payable.
The rebate will also be extended for another year to YA2018 at a reduced rate of 20 per cent of tax payable, which will be capped at S$10,000.
Here are some expert comments:
Alan Lau, tax partner at KPMG in Singapore
"The government's decision to increase corporate tax rebate to S$25,000 will certainly be welcomed by corporates in Singapore. However, this may not sufficiently help businesses, as many are still grappling with rising business costs on all fronts."
Harvey Koenig, tax partner at KPMG in Singapore
"The extension of the corporate income tax rebate is welcome, but it does not provide any relief to loss-making businesses."
Mak Oi Leng, tax partner at KPMG in Singapore
"This year's budget focus is very much on helping our home grown enterprises to grow and expand overseas. However, MNCs may be disappointed that there wasn't much targeted at retaining and attracting them."