-
All businesses will pay less tax from YA
2002.
New corporate income tax regime:
- Lower corporate tax rate of 24.5% in Year of Assessment
2002 (down from 25.5% in YA2001)
- In addition, to help small businesses get established,
- 75% exemption for up to the first $10,000 of chargeable
income; and
- 50% exemption for up to the next $90,000 of chargeable
income.
- Tax savings for companies estimated at $680m annually.
-
Reduction in Property Tax Rate from 12%
to 10%
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Businesses will get help from the Productivity
and Standards
Board (PSB) in upgrading and modernising their operations.
-
HDB shopkeepers will be given special assistance.
They will be helped to upgrade their businesses, or retrain
and move into more profitable industries.
-
Promising businesses will continue to be
groomed under the Economic Development Assistance Scheme administered
by EDB.
-
Tax exemption for stock option gains will
be extended to all companies irrespective of size, under the
Company Stock Option (CSOP) scheme.
-
Payments for certain categories of software
will be exempt from withholding tax.
-
Companies will be allowed to write down
expenditure on certain categories of intellectual property over
5 years.
