Singapore Budget 2014

1404_SingaporeThe 2014 Budget was delivered by the Deputy Prime Minister Finance Minister on 21 February 2014. The theme of the budget was to continue the long-term strategy of transforming and restructuring Singapore’s economy and to build a fair and equitable society.
In line with this theme, the focus of the tax changes introduced in this year’s Budget will provide strong support for companies investing in innovation and raising productivity. It will also help enterprises grow and internationalise. Special recognition was given to the Pioneer Generation through a package that assures them of affordable healthcare. By taking advantage of current resources to provide fully for this special package for our pioneers, the budget also focuses on the needs and challenges of the future, such as in education, transport and the healthcare needs of all Singaporeans.

Increasing productivity and encouraging innovation has been the foundation of tax changes announced for businesses operating in Singapore. Some of the highlights include:

  • Extension of the Productivity & Innovation Credit (“PIC”) Scheme till the Year of Assessment (“YA”) 2018 and enhancements of existing PIC Scheme conditions to give businesses more time, certainty and flexibility to put in place productivity improvements. Under the existing scheme, businesses can enjoy 400% tax deduction or allowances on up to S$400,000 of qualifying expenditure.
  • Introduction of the PIC+ Scheme to provide support to Small and Medium Enterprises (“SMEs”) who are making substantial investments to transform their business. Under this scheme, the expenditure cap for qualifying SMEs will be increased from $400k to $600k per qualifying activity per YA.
  • Extension of the Research and Development (“R&D”) tax incentives which were due to expire in the year 2015:
    • extension of the enhanced tax deduction for R&D expenditure for another 10 years till YA 2025
    • extension of further tax deduction on expenditure incurred in relation to R&D projects approved by Economic Development Board (“EDB”) till 31 March 2020
  • Extension of the 100% tax deduction scheme for registration costs for intellectual property for another 5 years till YA 2020. Businesses also can continue to claim a further 300% deduction on up to $400K of such qualifying costs under the PIC scheme, which has been extended till YA2018.

To encourage further economic growth, additional tax measures were also introduced to ease tax compliance for businesses and to boost the financial services sector:

  • waiver of withholding tax on payments to Singapore branches of non-resident companies, in respect of interest, technical fees, managements fees and royalties made on or after 21 February 2014
  • stamp duty rates for land premiums, property purchase, and share transfers will be computed by using a percentage of the purchase price or market value, which simplifies the computation.
  • to position Singapore as a hub for fund management and administration, concession for recovery of Goods and Services Tax (“GST”) for Qualifying Funds will be extended till 31 March 2019
  • extension and refinement of the various tax incentive schemes for Qualifying Funds

The corporate income tax remains unchanged at 17%. However, with the corporate income tax rebate, the effective tax rate for the first $300,000 will be around 5.6% or 8.4% depending on the structure of the company. The corporate tax rate has been competitive compared to a number of key countries As such, it was expected the tax rate is not reduced in this Budget..Nevertheless, the tax benefits under the PIC scheme are generous and could potentially drive the effective tax rate well below 17%.

There was also no personal income tax rate changes announced this year. For tax residents, the income rates range from 0% for the first $20,000 of chargeable income to the maximum of 20% for chargeable income in excess of $320,000. Additional employer contribution rates and personal reliefs have been introduced to enhance the needs of all Singaporeans.

For more information on any specific tax incentive, please contact Su Lee, General Manager of Zetland Singapore at suleec@zetland.biz or +65 65572071.



  • 生産性改善と技術革新(イノベーション)のための投資に対する課税控除である生産性・革新クレジット(PCI)スキームを2018年まで延長する。現行の税制ではS$400,000(約3,300万円)までの経費支出にたいする400%の課税控除が認められています。
  • 中小企業にはPICプラススキームとして控除経費の上限を年間S$400,000(約3,300万円)から年間S$600,000(約4,900万円)へ引き上げる。
  • 研究開発(R&D)奨励のための支出に対する控除が2015年で切れるため、10年間の追加延長をする。同時に経済開発庁(EDB)管轄の課税控除も2020年3月31日まで延長。
  • 知的財産の登録に対する100%の課税控除を5年延長し2020年まで有効とする。生産性・革新クレジット(PCI)スキームにより、300%の控除経費を最大S$400,000(約3,300万円)まで申請できるが、この控除期間を2018年まで延長。


  • シンガポールにある非現地法人に対し、2014年2月21日以降に支払われたロイヤリティー、マネージメント費、技術費、利息にたいして源泉徴収税を非課税とする。
  • ランドプレミアム、不動産購入、または株の移譲に対する印税率は購入価格か市場価格によって決める。
  • 適格ファンドに対する消費税(GST)の適用を2019年3月まで延長する、また適格ファンドに対する課税控除の延長と修正を行なっていく。



ゼットランドではシンガポールに支店をおき顧客様のサポートを行なっております。詳しくは担当のSu Lee (suleec@zetland.biz)へ直接英語でご連絡いただくか、日本語はintray@zetland.bizまでご連絡ください。