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Singapore: Tax measures in budget 2020

Singapore: Tax measures in budget 2020

Singapore’s budget for 2020 reveals that a planned increase in the rate of the goods and services tax (GST) to 9% would not take place in 2021.


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The GST rate increase was announced in the budget 2018, to offset an assurance package, with the rate increase (a 2% increase) scheduled by 2025.

Other measures in the budget 2020 concern:

  • Structured commodity financing activities and expansion of the tax concessions under the global trader programme, including a 5% concessionary tax rate on transactions involving liquefied natural gas (LNG)
  • No tax deduction or allowances for recipients of capital grants from the government or statutory boards on the portion of the expenditure funded by grants
  • Streamlining of the number of years of the useful life of plants machinery with regard to capital allowance claims
  • Extension of insurance business development and captive insurance schemes until 31 December 2025
  • Additional tax deduction for research and development (R&D) expenditures

Read a February 2020 report [PDF 3.6 MB] about the budget 2020, prepared by the KPMG member firm in Singapore

Read tax fact sheets [PDF 1.26 MB] that set forth tax rates, deductible amounts, and other tax-related provisions (prepared by KPMG in Singapore)

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