Budget 2013 Reveals More Concessions To Employers And Tax Payers In Singapore

Online, March 20, 2013 (Newswire.com) - One can convincingly say that Singapore Budget 2013 has opened a box of incentives to encourage the Employers and the Tax payers in Singapore. The announcement by the Finance Minister that all Singapore Companies will receive a 30% Corporate Income Tax Rebate is evidence of the above statement. The rebate though is subject to a cap of S$30,000 per year of assessment (YA) and will be available for the YA 2013, 2014 and 2015 is a substantial relief. In addition to this the Tax exemptions to the Start up companies is another encouraging factor for the Employers wanting to incorporate a Singapore company. The SMEs will in their heart of their heart greatly appreciate, acknowledge and thank the Singapore Government for their bold Tax policies.

This step was necessary as the local population had also raised their voices over the rising living costs which they consider is due to the influx of foreign companies and their nationals. Thus the budget recommendations have been successful in hitting two birds with one stone;

1. It has tried to reduce the dependency of the Singapore Companies on foreign workers and

2. It has silenced the local people's much created noise on the rising living costs. The budget also has provisions to look after the benefits of the elderly workers of Singapore. The notable fact about the Corporate Income Tax Rebate is that it will be maid available to all companies in Singapore including the registered business trusts so also those which are not tax resident here and also to those which receive income tax at a concessionary rate. The exempted companies are however those ones which are non-resident, for they will be subjected to final tax withholding.

This exercise of economic restructuring and enlarging the ambit of the Taxes on the part of Singapore government will attract the foreign entrepreneurs as well as coax the local high net worth individuals to incorporate a Singapore company. This will set a sort of race for the company incorporation between the foreign and the local entrepreneurs. A high game of competition will be triggered and obviously the net gainer will be the Singapore Government. This is indeed an intelligent thinking on the part of the Singapore Finance Minister Mr. Tharman Shanmugaratnam establishing his patriotic interest and business sense. Very few individuals can do this kind of rope walking and reach the other end successfully. Singaporeans want a home with a strong Singaporean identity and sense of belonging, strong and robust economy, strong families where seniors can age with dignity, society that takes care of the disadvantaged, all these are the ideologies echoed in the conversations that tales place between the Singaporeans everywhere and at all forums.

Taxation in fact is a very sensitive matter both for those who pay individual income tax and also for the corporate who pay corporate taxes. The Tax structure in any country decides its popularity level with the citizens and corporations of its own country and also the citizens and corporations of the other countries. In both these counts 2013 budget of Singapore Government has come out with flying colors in fulfilling the needs and expectations of one and all as it reveals more concessions to the employers and the Tax payers in Singapore.