Press Releases

The Ministry of Finance (MOF) received 132 comments from 28 respondents in its consultation exercise on the draft Income Tax (Amendment) Bill 2003.

2. 95 of the comments were suggestions on how to improve the legislation. 30 of them have been accepted for incorporation in the Income Tax (Amendment) Bill.

3. The majority of comments relate to the tax exemption scheme for foreign source income in the form of dividends, branch profits and services income. This tax exemption scheme was a highlight of this year's Budget Statement.

4. The consultation exercise ran from 1 June to 30 June 2003. The objective was to obtain feedback on how the drafting could be improved for greater clarity and easier compliance. This was the first time that draft income tax legislation has been published for consultation.

5. The comments which have not been accepted include those which suggested changes that are inconsistent with drafting convention or terms used in other tax legislation. Others went beyond the purpose of this exercise. They covered changes in tax policy and administration.

6. MOF thanks all respondents in this consultation exercise, and will continue to seek public comments and feedback in the future.

7. MOF's summary of responses to the comments are published on MOF's website at www.mof.gov.sg.

MINISTRY OF FINANCE