Technological advances have made the use of info-communications technology or ICT, and consequently software, increasingly widespread. We foresee a future in which almost all products and services will require the use of software either in their production or operation.

We want to lower the cost of doing business in Singapore, as well as encourage our businesses to make the best use of technology. The government is also committed to creating an environment that is conducive to the growth of e-commerce.

With these in mind, and as part of our continuing efforts to enhance Singapore's competitiveness, I have decided that payments for the following categories of software made to non-residents will be exempted from withholding tax. These are: site licences, software downloaded from the Internet by end-users, and software bundled with hardware. This change will take effect for payments due on or after today.