MOF Accepts for Implementation Majority of Suggestions Received on Draft Income Tax (Amendment) Bill 200921 Aug 2009
1. The Ministry of Finance (MOF) has accepted for implementation 85 out of the 113 suggestions received on the draft Income Tax (Amendment) Bill 2009 during the public consultation exercise held from 22 June to 14 July 2009.
2. The draft Income Tax (Amendment) Bill 2009 contains proposed legislation to put into effect the income tax changes announced in Budget 2009, as well as other changes arising from the periodic review of the income tax system. Of the 113 suggestions received, 64 suggestions relate to the proposed legislative amendment to provide certainty of non-taxation of income from disposal of properties derived by individuals who sell their properties infrequently. Government's response to the public feedback on this proposal is addressed in a separate press statement ("No change to Income Tax treatment for individuals who sell their properties") released on 21 August 2009. The remaining 49 suggestions relate mostly to the following:
Budget 2009 income tax changes
a) Tax framework for facilitating corporate amalgamation;
b) Enhancement of tax incentives to promote fund management in Singapore;
c) Temporary liberalisation of tax exemption for foreign-sourced income;
Other income tax changes
d) Review of tax treatment of certain management fees;
e) Application of arm's length principle; and
f) Tax Framework for Public Private Partnerships.
3. For the 49 suggestions that concerned other income tax changes, 25 suggestions have been accepted for implementation, and have been incorporated accordingly in the Income Tax (Amendment) Bill 2009. The remaining suggestions have not been accepted for implementation as they are inconsistent with drafting convention for legislation or policy objectives of the tax changes.
4. We thank all respondents in this consultation exercise. Responses to the comments received are also summarised on the MOF website.
MINISTRY OF FINANCE